This Is What A Real $5M Portfolio Looks Like In Retirement [Case Study] ᴴᴰ

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  • Опубликовано: 28 ноя 2024

Комментарии • 139

  • @JoeWilmoth-k2w
    @JoeWilmoth-k2w 14 дней назад +267

    This is my fifth year after retirement. I’ve been following the 4% rule thing I saw on a RUclips channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get worried.

    • @LucaMurgia-j7b
      @LucaMurgia-j7b 14 дней назад

      Amazingly, you were able to save that much during your active years. Not a lot of people can save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital, so you are not left devastated during a market crash or recovery. To simplify the process, you could allocate your resources with the help of a financial advisor.

    • @TerrencesSheldons
      @TerrencesSheldons 14 дней назад

      @@LucaMurgia-j7b Yeah, I’m also closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who have been investing for many years.

    • @JoeWilmoth-k2w
      @JoeWilmoth-k2w 14 дней назад

      @@TerrencesSheldons Hey, this caught my interest. I worry that I have a couple more months before retirement, and I want to switch to using a financial advisor, but I don’t know how to find one.

    • @TerrencesSheldons
      @TerrencesSheldons 14 дней назад

      @@JoeWilmoth-k2w Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with MARGARET MOLLI ALVEY for the last five years or so, and her returns have been pretty amazing.

    • @JoeWilmoth-k2w
      @JoeWilmoth-k2w 14 дней назад

      @@TerrencesSheldons Thank you for this tip. it was easy to find your coach. Did my due diligence on her. She seems very proficient and I'm grateful for your guidance.

  • @TonysBowlesas
    @TonysBowlesas Месяц назад +244

    I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

    • @johnawara9719
      @johnawara9719 Месяц назад +2

      I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.

    • @TonysBowlesas
      @TonysBowlesas Месяц назад +2

      @@johnawara9719 That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well

    • @johnawara9719
      @johnawara9719 Месяц назад +2

      You can look her up online

    • @ConleysEvanses
      @ConleysEvanses Месяц назад +1

      @@johnawara9719 The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?

    • @TonysBowlesas
      @TonysBowlesas Месяц назад +2

      @@johnawara9719 I will give this a look, thanks a bunch for sharing.

  • @buyerclub2
    @buyerclub2 10 месяцев назад +31

    I really like you and your partner. You both are clear and know your stuff. What I don't know, is why your company is an AUM. I won't work with one, for a couple of reasons, but YOU brought up the main reason for me. It would just be too much money, given the portfolio size. Have you thought about some type of service that is more "self service" where people would send you a portfolio analysis done maybe with something like New Retirement, and you advise and critique for a fee? I bet a lot of your viewers would be interested. (Not suggesting just you be the reviewer, maybe a team you manage.)
    Anyways, I am a subscriber, and watch your videos mainly for the reason why I thnk you make them. I find personal finance, and retirement analysis interesting, and you can help people ALOT. (I help people in other ways besides YT, but we mostly communicate the same knowledge, and skills that you do.) . Difference is you reach many, I reach few. But I can give more detailed advice than you can though. Anyway I hope you consider the "self service idea", perhaps you need to tweak it, or put a lot of structure around it.

    • @hypoxicX
      @hypoxicX 8 месяцев назад

      Completely agree with your sentiments @buyerclub2. No AUM agreement for me either. Also wishing they would offer an 'a la cart' scenario analysis service.

    • @7SideWays
      @7SideWays 6 месяцев назад +8

      I agree. The AUM model, even with a decreasing % fee for larger portfolios, benefits the advisor too much. I'd be more interested if a flat annual fee or per review.

  • @brianh6680
    @brianh6680 5 месяцев назад +18

    With large portfolios, I don't understand the need for complex balancing/rebalancing and broad diversification. Set aside 5 or so years of expenses in short-term stable investments (offset by steady income from dividends, interest, and social security) to ride out any bear market, and the rest can remain in growth. The investment decisions actually get easier with large portfolios.

    • @peterlee4131
      @peterlee4131 2 месяца назад

      Well said. Could not say it better myself!

    • @Mnil52
      @Mnil52 Месяц назад

      I've always wondered that too

  • @nunuvyurbiz123
    @nunuvyurbiz123 8 месяцев назад +17

    I’m planning on retiring at the end of this year, at age 56, single man, with an estimated $6.5M after selling my home. About 84% in taxable. Since I will have sold my house, I plan to travel, slowly. I will do Roth conversions in the following years. Asset allocation of 75% US stock, 24% bonds (total bond, munis, I bonds), 1% cash. Social security but no pensions.

    • @sokaiya1
      @sokaiya1 4 месяца назад

      You can withdraw 13,000 per month with no issues

    • @clintonwhite2966
      @clintonwhite2966 4 месяца назад

      What do you average on returns with your municipal’s & I bonds?

    • @nunuvyurbiz123
      @nunuvyurbiz123 4 месяца назад

      @@clintonwhite2966 I flipped my munis to treasuries for a slightly higher after tax yield. I bonds totally depends on the mix of when you bought - my average today is ~4%.

    • @Captain_Tiger
      @Captain_Tiger 3 месяца назад

      @@nunuvyurbiz123 how to invest in bonds for 4%

  • @davidfolts5893
    @davidfolts5893 10 месяцев назад +3

    Thanks, Ari. Learning from a great teacher maximizes the value of time spent.😀

  • @DrBilly90210
    @DrBilly90210 5 месяцев назад +3

    I get my groceries at Aldi & Wal-Mart, so i guess it's no surprise that the vast majority of my investments are index mutual funds. 😅
    I use New Retirement software and have gotten a lot of perspective by "pushing buttons & pulling levers" like is done in this video. Very enlightening to see how my plan can fail.
    With a $5M portfolio & "normal" lifestyle, it's difficult to NOT get a probability of success percentage of 99-100%. If you haven't done a deep dive into your financial situation, it's comforting to know you'll be (more than) okay. However, after it percolates in your mind a while, you wonder what you're going to do with $27M when you're 90. At that point, you realize you can enjoy life more than you imagined. My sweet spot for success percentage now is 85-90%--still plenty of cushion, but many more opportunities to use wealth to enhance your life.

  • @J-2024-v8i
    @J-2024-v8i 10 месяцев назад +4

    Thank you Ari for the great content and awesome delivery!. Just one suggestion: when sharing your screen you should maximize it with you taking only a small portion of the screen like James and many others do. In this video you were taking about a third of the screen and what you were sharing was too small to read. Thank you.

    • @earlyretirementari
      @earlyretirementari  10 месяцев назад +1

      Thank you! I’ll make that change so it’s as big as possible. I appreciate the feedback.

    • @georgestreng
      @georgestreng 4 дня назад

      I liked it just the way you have it.

  • @7SideWays
    @7SideWays 6 месяцев назад +4

    I appreciate the case study. This portfolio has so much overlap, complication and fees. 80%+ should be in broad .04% index funds full stop, done. But most of the public spends more time comparing $1 diffs in basic daily whatevers than they do learning simple investor basics so they come to FPs. Hopefully good ones like you.

  • @erinaustin9968
    @erinaustin9968 3 месяца назад

    We’re retired and traveling the world full time! Love the case studies.

  • @markb8515
    @markb8515 10 месяцев назад +4

    Thanks Ari for the case study. Like always it was packed with a lot of information that you presented in an easy to understand way.

  • @jeanraymond9114
    @jeanraymond9114 Месяц назад +1

    If you have a pension you can consider that your fixed income part of your portfolio and go with medium to low risk dividend stocks for the rest (some portion of savings for emergencies). My wife and I are lucky and have pensions but we manage to live comfortably just on our dividend income alone . Nice thing about dividend stocks is you rarely have to sell them , you just spend dividends. If dividends grow so does your capital . Buying your own stocks means next to zero fees.

  • @matthewharrigan1031
    @matthewharrigan1031 8 месяцев назад +3

    great video! What tool did you use to find the breakdown of each mutual fund/etf to see what each holds in individual stocks?

    • @kinggeek1960
      @kinggeek1960 19 дней назад

      I'm guessing maybe morningstar

  • @hankking4878
    @hankking4878 8 месяцев назад +2

    I love these planning sessions. Thank you. One thing I want to know is that these kind of High worth individuals that you show must have real estate. Either direct ownership or through syndications. How come you never show anything on that side of their investment? I would like to see somebody with a more rounded financial situation other than just stocks and bonds and the regular everyday items that many of you FPs cover. No one has ever gone to in-depth plan with other assets involved and how they impact the financial retirement plan. Thanks for the good work.

    • @earlyretirementari
      @earlyretirementari  8 месяцев назад +2

      Great idea. I’ll add that to my next video! Yes they often have significant real estate :)

    • @hankking4878
      @hankking4878 8 месяцев назад +1

      @@earlyretirementari look forward to hearing it.

    • @johnnysimes5082
      @johnnysimes5082 Месяц назад

      Many personal finance advisors would tell you to keep the equity of your home out of your net worth, because you don't have many options to use that equity for investing. You need some place to live and if you sold that house, you would have money but no home. Obviously, it's a different story if you're going to sell your home in an expensive market and then retire somewhere cheaper. But it's just a conservative assumption to just leave your home equity out of the picture.

  • @Random-ld6wg
    @Random-ld6wg 10 месяцев назад +4

    why send detailed info like that WITHOUT the expenses expected per year or presence or absence of big liabilities like a mortgage? if his question is how much he can pull, obviously he can get 244K/yr with the pension plus 4% withdrawal rate and with enough money in the brokerage for bridge account before touching the retirement plans. what if they spend 400,000 per yr then it wouldn't be enough. they also will likely get 73K per yr in SS(those should be in todays dollars). at least i learned about the 50% applies to spousal benefits AT FRA.

  • @yolandabreitweiser6061
    @yolandabreitweiser6061 3 месяца назад +1

    You made an interesting comment. My fiancé believes we should reduce the risk of our 401k's to a 80/20 ratio. Your comment about trying to stay ahead of inflation was a good point. Thank you.

  • @janethunt4037
    @janethunt4037 4 месяца назад

    Thank you, Ari! I love these case studies. This one was excellent in pointing out the risk factors and true allocation of the overlap of different funds.

  • @Darwinq84
    @Darwinq84 4 месяца назад +4

    I'm only 3 mins into the video and these folks have a $45k/year pension, around $5m in assets and their main question is how soon they can retire? I mean, what is your current lifestyle? If your expenses are less than $250k a year, you can safely withdraw $200k to $250k a year and your money will never run out!!

    • @Ozymandias-r2v
      @Ozymandias-r2v 4 месяца назад

      You need 7M to even think about retiring.

    • @YoungYoung-k5u
      @YoungYoung-k5u 2 месяца назад

      @@Ozymandias-r2vDepends on how old you are. If you have 5 million usd to invest and get 4-5% return annually, and your annual expenses is around $140k per year, you can retire anytime.

  • @OsvaldoSanMartin-t6f
    @OsvaldoSanMartin-t6f 10 месяцев назад +1

    Excellent video, very instructive. Is the software you use available to your customers?, thanks and keep up the good work.

    • @earlyretirementari
      @earlyretirementari  10 месяцев назад

      Thank you! Yes - it is available to all of our clients.

  • @walterp8697
    @walterp8697 6 дней назад

    Hi Ari. Any role for deferred income annuities to provide a floor of income. Growth and dividend stocks and Social Security will match inflation? She said before.

  • @sarahsunsetpark
    @sarahsunsetpark 4 месяца назад

    Another thing to add to your scenario is that the wife, if she worked can take Social Security at 62 off her own work record and then at 67 full retirement age she can move to the spouse Social Security so it is a way to bring in more income from 62 to 66 if she retires before then. And she can still move to the spousal Social Security if it makes sense and it’s more than her Social Security on her work record. Don’t leave money on the table.

  • @bobs4718
    @bobs4718 8 месяцев назад +3

    Who wants to be the richest person in the graveyard, seriously. Die with $0. Enjoy the life you worked hard for, not leaving it for anyone.

    • @katovomkozies
      @katovomkozies 8 месяцев назад +1

      Ultimate Boomer comment 😅
      Hope you leave something for your heirs

    • @bobs4718
      @bobs4718 8 месяцев назад +4

      @@katovomkoziesyes, boomer is indeed the case. We have no kids, only neices and nephews and we already spoil them rotten. Money left behind for others is ok but time spent and money spent on family while you’re still alive is so much better. It’s about the experience, not the money left behind. Spending every cent

    • @sokaiya1
      @sokaiya1 4 месяца назад

      Yes

  • @davedeboy5726
    @davedeboy5726 6 месяцев назад

    withdraw only 15k and 5k with SS.... live on 20k/mo only. Then if you buy a car take the whole thing out on a good month. Buy low sell high. you will probably find you can increase your withdraw to 20k after 5 yrs... then 25k after 10 yrs. The growth will be insane.

  • @chriscrawford1555
    @chriscrawford1555 10 месяцев назад +1

    Appreciate you doing portfolios of all sizes. One Q: At the income levels you're talking about here wouldn't AMT impact some of the tax brackets you show at about the 21:50 mark?

    • @earlyretirementari
      @earlyretirementari  10 месяцев назад +3

      Yes it certainly can, but you can do plan around this with income so it’s not an issue. I may do a separate video on that if it’s helpful!

    • @METVWETV
      @METVWETV 10 месяцев назад +1

      ​@@earlyretirementari
      Yes please!

  • @xporkrind
    @xporkrind 4 месяца назад

    Love your videos. The best quality on the internet for retirement financial planning. I have a new question that I hope you can address. Once you have maxed out your 401k or IRA, would it make any sense to fully fund a child's 529 plan, even if you thought there was a good chance you might not be able to use it for education. In other words, would it ever make any sense to fully fund a 529 plan with the INTENTION of paying the 10% penalty and tax to use it on non educational expenses some day, as compared to a taxable brokerage account, just to get the tax deferred capital gains ????????

  • @suavicgruzynski4588
    @suavicgruzynski4588 7 месяцев назад +2

    Great info, you guys are so knowledgeable. I’m learning a lot, each video is a well of knowledge.

  • @dougbrown1797
    @dougbrown1797 6 месяцев назад +1

    Ari....Great video...Keep up the good work! db

  • @ericgold3840
    @ericgold3840 4 месяца назад

    I'm jealous of the easy software option to optimize Roth conversions at the touch of a slider that sets the maximum tax bracket, but I'm a lot less sure that a conversion plan that ignores IRMAA brackets is giving a good optimization.
    Your opinion, Ari ?

    • @earlyretirementari
      @earlyretirementari  4 месяца назад

      Good question. Watch this: ruclips.net/video/SsZUdBfUYok/видео.htmlsi=TVDP52dki7utQypp

  • @mirozen_
    @mirozen_ 2 месяца назад +1

    I understand that "diversification is good". But friends of mine are still fuming because they had around 75% of their 5 million investment dollars in Microsoft back in 2018, then they decided to get a financial advisor. Their financial advisor then had them sell almost all of their Microsoft stock and diversify - and (as of today) Microsoft is now up over 350% from when they sold. 😝

    • @earlyretirementari
      @earlyretirementari  2 месяца назад

      I’d be mad too. Here’s what I’d do ruclips.net/video/MaZvQAiZM-s/видео.htmlsi=D_VkcOmZTD2uIgKx

  • @williamperez9827
    @williamperez9827 4 месяца назад +2

    Great vid ... but Vanguard isn't the dollar store. It's the honda and toyota of investment institutions.

  • @serialmigrant
    @serialmigrant 10 месяцев назад +1

    Is there a way to access this kind of software ?

  • @zasde35
    @zasde35 4 месяца назад

    O well i,m absolute not a specialist in these matters but 5 million in a high yield account makes you aprox 150 K a year add some additional income, you can spend 200K a year

    • @YoungYoung-k5u
      @YoungYoung-k5u 2 месяца назад

      Yeap. You don’t need a specialist to retire if you have that kind of money. I (my wife and I) have 1.25 mill usd condo paid off, have 2.5 mill usd in investment accounts mostly in personal brokerage and around $600k in separate account to spend till I am 65 and start to receive SS benefits and Medicare. I am retired at 61. I get around $150k dividends before tax. My expenses is around $100k per year. By the time I start to receive SS benefits at 65, I can spend around $130k after tax comfortably. Unless your annual expenses are $300k net, you can retire with a house paid off and around $2.5 mill usd in investment account.

  • @Fiwithoptions
    @Fiwithoptions 10 месяцев назад

    Are you assuming RMD dollars go to their spending or reinvest in brokerage account as their expenses are covered from other sources?

    • @earlyretirementari
      @earlyretirementari  10 месяцев назад

      Assume RMD is spent in this example.

    • @Fiwithoptions
      @Fiwithoptions 10 месяцев назад +1

      @@earlyretirementari Thank you. Great content👍

    • @earlyretirementari
      @earlyretirementari  10 месяцев назад

      @@Fiwithoptions you’re so welcomen

  • @johnmoore3479
    @johnmoore3479 8 месяцев назад

    Awesome

  • @70qq
    @70qq 10 месяцев назад +2

    without knowing what they wanna spend , its impossible to know ....the whole retirement scenario has little to do with portfolio size , but a ton to do with expenses ... if they only wanna spend 3k per month , they could have retired 20 years ago 🤣

    • @earlyretirementari
      @earlyretirementari  10 месяцев назад +2

      You’re so right! Wish they would have mentioned it (since I’m equally curious to all of you). I have asked and will report back once they reply.

  • @davedeboy5726
    @davedeboy5726 6 месяцев назад

    The problem is with roth most make way too much to contribute to roth so you can't do it... this example is kind of unrealistic in that way.

    • @earlyretirementari
      @earlyretirementari  6 месяцев назад

      Do you use a mega backdoor?

    • @davedeboy5726
      @davedeboy5726 6 месяцев назад

      @@earlyretirementari you can't. My friend ended up in prison doing that because his CPA told him he could but he made too much money. He was in the slammer for 3 yrs and lost all the gains over those years.

    • @earlyretirementari
      @earlyretirementari  6 месяцев назад

      @@davedeboy5726 wow! Sorry to hear about you friend. Why isn’t everyone who executes it in prison?

    • @davedeboy5726
      @davedeboy5726 6 месяцев назад

      @@earlyretirementari because they don't make enough money... that's why, so roth conversion can be performed. my friend made over 500k/yr. he was way over the limit.

    • @earlyretirementari
      @earlyretirementari  6 месяцев назад

      @@davedeboy5726 sorry to hear about your friend

  • @metalgirl
    @metalgirl Месяц назад

    RMD’s are stupid! Who passed that bill??? I feel like we were rug pulled on that. I wanted to save it for my kids…☹️

    • @donh8833
      @donh8833 Месяц назад

      Roth conversion. It's the only thing you can do. Depending where you sit on tax brackets, it could actually work towards your benefit in as little as 10 years.

  • @ozawajin
    @ozawajin 6 месяцев назад

    How much is enough?
    It's never enough LOL

  • @FrankDimino1
    @FrankDimino1 8 месяцев назад

    Good info as always however this is like a beautiful woman saying-Am I pretty?

    • @DrBilly90210
      @DrBilly90210 5 месяцев назад +1

      LOL, good analogy! And to carry it further, a beautiful woman can have a lot of anxiety over losing her looks.

  • @happyappy19931
    @happyappy19931 7 месяцев назад

    So this will apply to me never. 😂

  • @dacianbonta2840
    @dacianbonta2840 8 месяцев назад

    Ariiiiiiiiiiiiiii!!!!!!

  • @kludgedude
    @kludgedude 7 месяцев назад

    Obviously you need $1 Billion a year before death

  • @TheRealOMT
    @TheRealOMT 10 месяцев назад +18

    How many of us have 5 million 😂

    • @METVWETV
      @METVWETV 10 месяцев назад +4

      Keep laughing
      Laughing boy

    • @TheRealOMT
      @TheRealOMT 10 месяцев назад

      @@METVWETV it’s good for health, you might consider pulling your stick out and trying it sometime 😂🤣😜

    • @Post4JM
      @Post4JM 8 месяцев назад +26

      People who work hard and invest wisely will have this by retirement

    • @METVWETV
      @METVWETV 8 месяцев назад +10

      More than you think.
      How much do you have?

    • @sammysoda8881
      @sammysoda8881 8 месяцев назад +7

      Didn’t you listen to the video? He said that he has videos based on different amounts. Find your amount and then watch the video. To your question, many of us have $5 million portfolios and that is why we are watching this.

  • @bobackerman54
    @bobackerman54 10 месяцев назад +2

    If you help every 5 million dollar investor you will have helped a VERY SMALL percentage of the population .... best of luck ...

    • @earlyretirementari
      @earlyretirementari  10 месяцев назад +8

      Thank you. I try to make videos for everyone from $0 to $10M so everyone can get guidance! Everything for beginners to those ultra-advanced.

    • @ChristopherEvans-650
      @ChristopherEvans-650 10 месяцев назад +5

      @@earlyretirementari True, but for every video you post, you have helped a very large percentage of us DIY planners. Keep it up. 👍

    • @earlyretirementari
      @earlyretirementari  10 месяцев назад +2

      @@ChristopherEvans-650 thank you very much

    • @METVWETV
      @METVWETV 10 месяцев назад +6

      ​@@earlyretirementari
      On behalf of the 2% we thank you!
      Advice to the rest,
      Numbers are numbers and we can always learn by listening and applying them to ourselves.
      Live below your means and be deliberate and you will achieve success too.

    • @earlyretirementari
      @earlyretirementari  10 месяцев назад +1

      @@METVWETV you got it.

  • @MK-gv8bu
    @MK-gv8bu 5 месяцев назад

    Get real; most people don't have $5 Mill for retirement.

    • @heidikamrath1951
      @heidikamrath1951 3 месяца назад +1

      True, most don’t. Ari’s subscribers probably lean more heavily towards this amount than the average person does. This is free information here on RUclips. If you can’t glean anything from it, don’t complain or waste your time here. Move on.

    • @YoungYoung-k5u
      @YoungYoung-k5u 2 месяца назад

      @@heidikamrath1951True. I think around 2.5% to 1% of Americans do. I personally think your annual next expenses is more important in determining how much NET annual income you need to retire. Some people can live comfortably on $50k per year while some have to have $200k per year. Doesn’t make any sense to do any case study without knowing how much a year you want to spend. I personally want to spend $150k per year, so I am taking suitable course for me.