Another vote for this from me! I also notice that if you follow the 4% rule in this scenario, you can withdraw $40k annually. Since SS income isn't flexible,, I would prefer to base my dynamic spending range strictly based on the withdrawal from my retirement accounts.
I think Kevin you must have gotten Phil and Claire mixed up exactly with my wife and I. Same data! This is absolutely fascinating. I really like that dynamic analysis much better than the typical Monte Carlo analysis. This makes perfect sense. To me I really think spending in retirement needs to be a year by year analysis based on markets and your need for funds. I really appreciate your insight and videos. Keep up the good work!
Seems like both are useful. Monte Carlo to show probability of success & dynamic to show what is necessary to make it successful if everything isn't peaches & cream.
I would like to use both tools-Monte Carlo for initial assessment of when I could retire and dynamic spending analysis for periodic review to make spending adjustments during retirement.
This is very helpful. Knowing what one can afford based on an amount invested to date is definitely a good way to look at it. The model explained is definitely more realistic and thus useful. Thanks!
This is a great update that all retirement planning tools should implement. For years, the portfolio growth has been developed as a variable, but the spending estimates have always been fixed. Just as edits to the 4% rule are beginning to be discussed, the industry is beginning to recognize this flaw and matching it to real world behavior. When the markets turn down, people tighten their belts.
To achieve a secure retirement, aiming to save at least 15% of your income in a 401(k) is advisable. Online tools can assist in calculating the best savings strategy for you, considering factors like age and income. Consistently saving this percentage can help build your retirement fund effectively, thanks to the benefits of compound interest.
For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.
Keep it simple, buy things you understand, take some risk but don't try to shoot the lights out. I currently have 75% SCHD and 25% ROTH IRA. Brokerage account is 40% VOO, 35% SCHD, 25% XLK. Combine balance ~$3.3m Less than 3 years until retirement.... I have about 400k in cash. My portfolio has yielded far more than I expected for my retirement. Kudos to my advisor.
@@RiggiosMiners Well it seems like a lot of your interest is riding on your source, I could really get well accustomed to your viewpoint, get me involved.
I’m 51 looking to retire, while I am comfortable with a Monte Carlo simulation, the feeling is the visualization is much easier to grasp and my wife would find a lot of comfortable with visual range limits. Especially when adjusting variables and watching a result change rather than just a percentage on the dial. 10 years to go…Thanks for this.
Just turned 55 … and just started thinking about this. Am near these numbers but have no real idea of the “exit strategy”. Have never found a financial person I trust. Just tried to do what seemed best.
I would like a mix of both. Also, it would be helpful if the client could receive monthly estimates for the following month. Perhaps that feature already exists.
I'd like to see both. I have a scheduled convo with my cfp about this very topic. Seeing both ways is quite useful for those of us needing to see alot of data sliced and diced different ways to feel comfortable.
Kevin, one major problem I see with most retirement calculators is the growth of the portfolio. It looks like it’s compounded at 7 or 8% annually which we know doesn’t happen. I also love how it assumed entire portfolio is growing at 7-8% a year. Is there a program that can input the growth better or more realistically especially a Gen X that went through 2000, 9/11, 2008-2010 recession, pandemic, etc. 2000 tech implosion took ~7-8 years for my portfolio to recover since I was told to be aggressive in my 20s so heavily invested in tech sector and I wasn’t contributing to that account since no job prior to 9/11. My “growth” have been less than stellar since my portfolio plunged so many times. Most of the money in my accounts were from savings. Since I am nearing retirement, I have been conservative and I won’t have the enough time to let my portfolio recover before I need to pull from it.
I love the idea of a dynamic income strategy. The Monte Carlo numbers don’t really give me a real sense of what will happen. Only a % of success. I’d rather see the whole plan in action in the way that you demonstrated incomeLab work. I do have a financial advisor and use new retirement and feel great amount my current retirement plans. That said IncomeLab’s approach is very interesting and I do love to learn more!
Yes a dynamic income strategy would help me in retirement ad my biggest fear is running out of money due to real inflation and the ability for my investments to keep up with real inflation.
New here, and thank you for the videos. I have been retired for 2 years and honestly my fear at the beginning arose from my planner expressing shock that I was quitting “early” (age 67). I think for a lot of us boomers, we have a fear of the next crash and what might happen to SS. This model addresses the crash. I’m still happy that I’m very comfortable not spending down my fund. The big question I face is will I be happy drawing it down for big trips because I do love to travel. The huge takeaway for all the young ‘uns is SAVE and live below your means.
Hey Kevin, great comparison between the tools. Looks like boys at Income Labs have a bit more a dynamic approach to expenses than right capital. That's fantastic stuff.
I’ve watched a lot of Kevin’s content and at 50, I’m currently sitting at a bit over 1.2m between my traditional 401k and personal/taxable account. That’s excluding my condo (in NYC, so condo living is quite normal) and pension that my company still has (hallelujah! lol). I don’t have a car, am single with no kids so I’m able to save quite a bit. I’m so glad material things don’t mean much to me - other than gadgets. I always buy a new iPhone every year and have amazed more computer parts than I care to admit. I think I’ll be ok. Thank you, Kevin for all the advice you provide the people. You’re a good egg.
Like many complex topics, the details that can impact forecasts and outcomes are often obscured, unless they are exposed. The Income Lab approach of presenting optional scenarios dynamically seems more helpful and at the least, provides insight on topics that may not have been considered by the Monte Carlo approach.
Dynamic Income Strategy makes much more sense because it allows you to budget along with the changes in your portfolio just as you probably have been doing during your work life as jobs and family costs changed over time.😊
Dynamic strategy will give you a far better "real world" result. However, regardless of what method you ise, having 2 - 3 years of actual expense tracking before you retire is key to a successful plan! Know what you are really spending, then adjust for things you will no longer have, and additions like golf membership, more travel, etc!
Haha! Thinking alike. I’m a spreadsheet geek and my wife thinks I’m nuts for running inflation adjusted numbers for every line item of our life from now till 40 years out 😅. Cool to see it graphed and the curve change when financial events kick in (house paid off, rental paid off, private insurance kicks in, etc)
There’s no one right answer. What’s your budget? how responsible are you with money? What’s your goals in retirement? Your risk tolerance is the most important variable. If you’re stuck to just bonds or even a heavy bond mix, you’ll need more money. You also need to have a flexible budget so you can pull back in down years. Most people spend less the further into retirement they get.
In the last example, the income lab example, after n years of retirement did the $ go up or down. Worded another way, after 30 years did I start using principle? I want to spend down my money, use a good share in the early years, the front of the smile? I don't want to leave too much on the table and regret not really getting the most from my early, more energetic, years.
Love the dynamic income strategy, especially if you could adjust it to report quarterly or semiannually amounts and just run withdrawals 3-6 months behind.
Income Lab doesn't integrate with Vanguard as far as I can see. (Plus it's hugely expensive!) Are there other alternatives with dynamic income strategy? Or a way to sort of simulate it using New Retirement?
Wow, this is the way to do it! It makes so much more sense. I don't have heirs and want to "die with zero". I've just started doing a plan with a Fidelity Advisor - who talked me into getting an immediate annuity (25% of my portfolio) to cover my fixed cost. This will allow me to invest more aggressively in my portfolio. I think I'm OK with the decision (haven't signed contract yet, and am selling holdings to get the lump sum cash.) It will be nice to start to get a monthly paycheck deposited into my account. But I still have no clue how much I can spend monthly / yearly within my portfolio. That would be so interesting to know!
I’m 57, $900k in 401k, Roth IRA and HSA investments combined. I contribute the max to all and even add to my wife’s Roth IRA at max. I want to retire at age 60 but my expenses will be higher to purchase healthcare on my own and at age 63, I plan to move to Florida, which although has less tax, we will have a mortgage as the homes are far more expensive. I know these tools provide you the amount you can spend, but keep in mind your expenses now may not be what they are in retirement and that needs close examination if you wish to do more in retirement than you are doing while working. That said, I plan to work a bit longer to age 61 if I can hold out to increase my contribution, lessen the withdrawal and lessen the increased expense of healthcare I would otherwise need to pay out of pocket.
Security isn’t guaranteed ever, but we can control what we can. In my opinion, all of this is just word salad which isn’t helpful but just a sales pitch. Our focus should be on building connections with family / friends and living better than playing games with a calculator, guessing your life span, and gambling on what the market may do.
The software and your rexommendation works for people who life is all about their grandkids. The problem is when you add purchasing a sexond home, sports car, boat or need to replace all the windows in their house. How do you incorporate that over time when you dont know yet?
Hi, new to your channel and perhaps you can help. I plan to retire in 4 years with just north of 500k in the 401k. My plan was to convert to an Ira and then take chunks of it yearly to move to a Roth staying within the 12% tax bracket while doing so. My debt will be zero and my retirement should cover all expenses with money left over. Would I need to hire a financial advisor to manage this 401k balance after conversions or could I do it myself? What would you invest that 500k into? I will be 58 at retirement and will have stocks, savings and some Roth money in case of emergency to fall back on. My main concern is making that 500k balance grow. Thank you
I don’t see in the comments and didn’t hear in the video if you talk about the anticipated duration of retirement. Obviously the longer you’re in retirement the more the numbers are gonna be affected. What is the assumption of years in retirement for your modeling?
We are fortunate to have a number of pensions coming in (two federal, one military, one small social security and one social security still pending, we still save every month though been retires for years. The only money coming from savings was for a new roof that will be good for decades. We hate spending money, don’t spend much, and don’t even travel much because we live by the beach in SoCal. I feel my saved money is for my kids to inherit for their retirement since it is hard for them to save for that with their expenses.
Thank you Kevin! I told my boss my "I quit" as my FA told me I could. 😊 Seriously, I have been fortunate to develop a strategy to earn $5-6K/month, day-trading, to prevent spending down retirement savings and defer Social Sec payments.
I think Income Lab could be a different way to look at it and how to adapt as the market/investment performance changes. Interested on your thoughts on New Retirement software. I like Right Capital.
I haven’t spent enough time with New Retirement to make a definitive answer, but I found it a bit confusing. Maybe I’ll build a plan out sometime for a video.
@@foundryfinancial the tax stuff in right capital is without peer. But I remember when Right capital first rolled out, it was pretty weak in most other areas. But the tax tools were just incredible...still are However it was, and still is, deficient in estate planning. Emoney mopped the floor with right capital when it came to estate planning. But Right capital has come along way in teh 7 years I've been using it.
I’ve watched many of these scenario videos, and one thing is always missing. It’s the annual fee the cfp charges. Where does the 0.25-1.0% come from? How is that factored into the retirement equation?
Income labs feels like it would work for clients who are in the 100k..300k range, whereas monte carlo simulations seem a bit irrelevant for portfolios under 500k, and not of much value at all for sub-300k.
@@foundryfinancialExcept those look like full S.S. benefits that they won’t draw from until age sixty seven. So about eight grand a month less for the first seven years.😊
Kbb will give you a purchase offer as well. Honda had topped out at $9500 on my trade, kbb bought it in under 30 minutes for $13,500. The next just showing the offer to the dealership resulted in them matching the kbb offer and then I got the sales tax advantage as well. It is good leverage, no cost or obligation.
I love this content, but it would be nice if Claire made more money or had more money in her accounts. I feel like these examples always reinforce stereotypes.
Generally agree. But it also depends on a number of variables (for example, a $7k budget goes a long way in FL l, especially if no mortgage; while in NYC that won’t fly).
this strategy seems a lot more logical to me ... I find the Montecarlo to be a joke: with it you will likely retire with more than you had to start with ... the likelihood of a great depression is not that likely ... and then we have a much bigger problem ...
Really sorry to hear that friend. I believe that one shouldn't view net worth as a barometer to retirement readiness. Take the following example. If your household has $500k in a brokerage account and $500k in 401k/IRA. A house that is fully paid for worth $1M. Your core net worth would be $2M and your brokerage/401k ($1M) could yield $70k at 7% yield or rate of return. Versus $1M in brokerage, $500k in 401k/IRA and a fully paid for home worth $500k. Your brokerage/401k ($1.5M) can yield $105k at 7%. In short, net worth is not a great measure of retirement readiness. Hope this helps.
@@EdNichols-qj4xk Thanks. My example wasn't showing how much they needed but an example of why net worth is not a great measure of retirement readiness.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family...
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...
@@NaufalKnoechel Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY*.
"Retirement isn’t an end goal, but a journey best secured by careful and consistent investments."
Well said! Retirement is the reward of disciplined investing over the long term, not just a destination.
Well said! My adviser guided me through retirement planning, ensuring my investments were strategically positioned for long-term rewards.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.
Can you please more of these on SINGLE RETIREES? (majority of older women in US, I believe)
I came to say the same thing. I’m 55 and don’t plan to remarry and the couple scenarios aren’t close enough to my situation.
Another vote for this from me! I also notice that if you follow the 4% rule in this scenario, you can withdraw $40k annually. Since SS income isn't flexible,, I would prefer to base my dynamic spending range strictly based on the withdrawal from my retirement accounts.
I think Kevin you must have gotten Phil and Claire mixed up exactly with my wife and I. Same data! This is absolutely fascinating. I really like that dynamic analysis much better than the typical Monte Carlo analysis. This makes perfect sense. To me I really think spending in retirement needs to be a year by year analysis based on markets and your need for funds. I really appreciate your insight and videos. Keep up the good work!
Thanks, Rick!
I really like that dynamic spending analysis. I had never heard of that and feel that would be a comforting tool to have.
The dynamic income retirement plan sounds much more useful.
Yes, it's very useful and I'm about to do it
Seems like both are useful. Monte Carlo to show probability of success & dynamic to show what is necessary to make it successful if everything isn't peaches & cream.
I would like to use both tools-Monte Carlo for initial assessment of when I could retire and dynamic spending analysis for periodic review to make spending adjustments during retirement.
This is very helpful. Knowing what one can afford based on an amount invested to date is definitely a good way to look at it. The model explained is definitely more realistic and thus useful. Thanks!
This is a great update that all retirement planning tools should implement. For years, the portfolio growth has been developed as a variable, but the spending estimates have always been fixed. Just as edits to the 4% rule are beginning to be discussed, the industry is beginning to recognize this flaw and matching it to real world behavior. When the markets turn down, people tighten their belts.
To achieve a secure retirement, aiming to save at least 15% of your income in a 401(k) is advisable. Online tools can assist in calculating the best savings strategy for you, considering factors like age and income. Consistently saving this percentage can help build your retirement fund effectively, thanks to the benefits of compound interest.
For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.
Keep it simple, buy things you understand, take some risk but don't try to shoot the lights out. I currently have 75% SCHD and 25% ROTH IRA. Brokerage account is 40% VOO, 35% SCHD, 25% XLK. Combine balance ~$3.3m Less than 3 years until retirement.... I have about 400k in cash. My portfolio has yielded far more than I expected for my retirement. Kudos to my advisor.
@@RiggiosMiners
Well it seems like a lot of your interest is riding on your source, I could really get well accustomed to your viewpoint, get me involved.
PAMELA ANN PUNKAR
LOOK HER UP ONLINE
At 4:27 it went to. 80% but Clair’s retirement age jumped to 60 from 55. It wasn’t just the spending model change.
Good catch. I was wondering how it jumped so much just from spending smile change.
I’m 51 looking to retire, while I am comfortable with a Monte Carlo simulation, the feeling is the visualization is much easier to grasp and my wife would find a lot of comfortable with visual range limits. Especially when adjusting variables and watching a result change rather than just a percentage on the dial. 10 years to go…Thanks for this.
I vote for the dynamic income retirement plan
Just turned 55 … and just started thinking about this. Am near these numbers but have no real idea of the “exit strategy”. Have never found a financial person I trust. Just tried to do what seemed best.
That Income Lab software looks really good...seems like a much more realistic model. Please do more demos with that. Thanks!
I would like a mix of both. Also, it would be helpful if the client could receive monthly estimates for the following month. Perhaps that feature already exists.
I'd like to see both. I have a scheduled convo with my cfp about this very topic. Seeing both ways is quite useful for those of us needing to see alot of data sliced and diced different ways to feel comfortable.
the upper and lower bounds are really helpful - much more practical view of retirement viability
I thought the title indicated a single person not couple, but thanks for your insight video. It is helpful.
Kevin, one major problem I see with most retirement calculators is the growth of the portfolio. It looks like it’s compounded at 7 or 8% annually which we know doesn’t happen. I also love how it assumed entire portfolio is growing at 7-8% a year. Is there a program that can input the growth better or more realistically especially a Gen X that went through 2000, 9/11, 2008-2010 recession, pandemic, etc. 2000 tech implosion took ~7-8 years for my portfolio to recover since I was told to be aggressive in my 20s so heavily invested in tech sector and I wasn’t contributing to that account since no job prior to 9/11. My “growth” have been less than stellar since my portfolio plunged so many times. Most of the money in my accounts were from savings. Since I am nearing retirement, I have been conservative and I won’t have the enough time to let my portfolio recover before I need to pull from it.
I like the dynamic income strategy. Our numbers are very close to this example
I love the idea of a dynamic income strategy. The Monte Carlo numbers don’t really give me a real sense of what will happen. Only a % of success. I’d rather see the whole plan in action in the way that you demonstrated incomeLab work. I do have a financial advisor and use new retirement and feel great amount my current retirement plans. That said IncomeLab’s approach is very interesting and I do love to learn more!
This makes so much more sense to my brain!!! I’ll be talking to my financial planner about it.
I believe it would help me decide. I will soon be 64 and have a problem deciding to retire early.
Yes a dynamic income strategy would help me in retirement ad my biggest fear is running out of money due to real inflation and the ability for my investments to keep up with real inflation.
New here, and thank you for the videos. I have been retired for 2 years and honestly my fear at the beginning arose from my planner expressing shock that I was quitting “early” (age 67). I think for a lot of us boomers, we have a fear of the next crash and what might happen to SS. This model addresses the crash. I’m still happy that I’m very comfortable not spending down my fund. The big question I face is will I be happy drawing it down for big trips because I do love to travel. The huge takeaway for all the young ‘uns is SAVE and live below your means.
I like the dynamic starting out with assets and telling me how much income would likely be as a starting point. Both models seem very helpful, though.
This is very insightful. Dynamic income strategy definitely provides better clarity in planning for retirement.
Derek Tharp's research is very under rated. Bengen < Guyton < Tharp. Good to see him start to get his due reward!
Hey Kevin, great comparison between the tools. Looks like boys at Income Labs have a bit more a dynamic approach to expenses than right capital. That's fantastic stuff.
Thanks, I appreciate it!
I wish I could get access to the Income Lab product directly :( Rather than through a CFP.
I’ve watched a lot of Kevin’s content and at 50, I’m currently sitting at a bit over 1.2m between my traditional 401k and personal/taxable account. That’s excluding my condo (in NYC, so condo living is quite normal) and pension that my company still has (hallelujah! lol).
I don’t have a car, am single with no kids so I’m able to save quite a bit. I’m so glad material things don’t mean much to me - other than gadgets. I always buy a new iPhone every year and have amazed more computer parts than I care to admit.
I think I’ll be ok. Thank you, Kevin for all the advice you provide the people. You’re a good egg.
Like many complex topics, the details that can impact forecasts and outcomes are often obscured, unless they are exposed. The Income Lab approach of presenting optional scenarios dynamically seems more helpful and at the least, provides insight on topics that may not have been considered by the Monte Carlo approach.
Dynamic Income Strategy makes much more sense because it allows you to budget along with the changes in your portfolio just as you probably have been doing during your work life as jobs and family costs changed over time.😊
Dynamic strategy will give you a far better "real world" result. However, regardless of what method you ise, having 2 - 3 years of actual expense tracking before you retire is key to a successful plan! Know what you are really spending, then adjust for things you will no longer have, and additions like golf membership, more travel, etc!
Haha! Thinking alike. I’m a spreadsheet geek and my wife thinks I’m nuts for running inflation adjusted numbers for every line item of our life from now till 40 years out 😅. Cool to see it graphed and the curve change when financial events kick in (house paid off, rental paid off, private insurance kicks in, etc)
There’s no one right answer. What’s your budget? how responsible are you with money? What’s your goals in retirement?
Your risk tolerance is the most important variable. If you’re stuck to just bonds or even a heavy bond mix, you’ll need more money.
You also need to have a flexible budget so you can pull back in down years.
Most people spend less the further into retirement they get.
This is the Monte Carlo simulator easy to find online.
In the last example, the income lab example, after n years of retirement did the $ go up or down. Worded another way, after 30 years did I start using principle? I want to spend down my money, use a good share in the early years, the front of the smile? I don't want to leave too much on the table and regret not really getting the most from my early, more energetic, years.
Love the dynamic income strategy, especially if you could adjust it to report quarterly or semiannually amounts and just run withdrawals 3-6 months behind.
Dynamic. I like the concept of peace of mind.
Income Lab doesn't integrate with Vanguard as far as I can see. (Plus it's hugely expensive!) Are there other alternatives with dynamic income strategy? Or a way to sort of simulate it using New Retirement?
It’s designed for financial professionals (hence the high price, there’s not a retail equivalent. No way to simulate it.
I like that how much can I spend a month approach
Wow, this is the way to do it! It makes so much more sense. I don't have heirs and want to "die with zero". I've just started doing a plan with a Fidelity Advisor - who talked me into getting an immediate annuity (25% of my portfolio) to cover my fixed cost. This will allow me to invest more aggressively in my portfolio. I think I'm OK with the decision (haven't signed contract yet, and am selling holdings to get the lump sum cash.) It will be nice to start to get a monthly paycheck deposited into my account. But I still have no clue how much I can spend monthly / yearly within my portfolio. That would be so interesting to know!
How frequently would I adjust my withdrawals under the dynamic retirement plan - quarterly, every 6 months, or annually?
Very good and useful video. I will subscribe to learn more
I’m 64 - similar situation
I’m 57, $900k in 401k, Roth IRA and HSA investments combined. I contribute the max to all and even add to my wife’s Roth IRA at max. I want to retire at age 60 but my expenses will be higher to purchase healthcare on my own and at age 63, I plan to move to Florida, which although has less tax, we will have a mortgage as the homes are far more expensive. I know these tools provide you the amount you can spend, but keep in mind your expenses now may not be what they are in retirement and that needs close examination if you wish to do more in retirement than you are doing while working. That said, I plan to work a bit longer to age 61 if I can hold out to increase my contribution, lessen the withdrawal and lessen the increased expense of healthcare I would otherwise need to pay out of pocket.
Florida housing cost are starting to go down which may help you.
I like the dynamic income retirement plan.
I'm 62. Selling my rental property and don't know what to invest in. I should net around $1.3 M, but don't know if that's enough for me and my wife.
Security isn’t guaranteed ever, but we can control what we can. In my opinion, all of this is just word salad which isn’t helpful but just a sales pitch. Our focus should be on building connections with family / friends and living better than playing games with a calculator, guessing your life span, and gambling on what the market may do.
The software and your rexommendation works for people who life is all about their grandkids. The problem is when you add purchasing a sexond home, sports car, boat or need to replace all the windows in their house. How do you incorporate that over time when you dont know yet?
Hi, new to your channel and perhaps you can help. I plan to retire in 4 years with just north of 500k in the 401k. My plan was to convert to an Ira and then take chunks of it yearly to move to a Roth staying within the 12% tax bracket while doing so. My debt will be zero and my retirement should cover all expenses with money left over. Would I need to hire a financial advisor to manage this 401k balance after conversions or could I do it myself? What would you invest that 500k into? I will be 58 at retirement and will have stocks, savings and some Roth money in case of emergency to fall back on. My main concern is making that 500k balance grow. Thank you
I don’t see in the comments and didn’t hear in the video if you talk about the anticipated duration of retirement. Obviously the longer you’re in retirement the more the numbers are gonna be affected. What is the assumption of years in retirement for your modeling?
Are these monthly amounts after tax?
We are fortunate to have a number of pensions coming in (two federal, one military, one small social security and one social security still pending, we still save every month though been retires for years. The only money coming from savings was for a new roof that will be good for decades. We hate spending money, don’t spend much, and don’t even travel much because we live by the beach in SoCal. I feel my saved money is for my kids to inherit for their retirement since it is hard for them to save for that with their expenses.
Could you do this for 50 yo as well? Same numbers.... Thanks! Good stuff!
Why do you say…”a little bit of social security”? It looks to me to be about 60% of their desired income.
what are the number of years did you use
The dynamic income strategy sounds much more realistic.
Buy and hold doesn’t make much sense to me in retirement. You need a dynamic investment strategy.
Will this be available to the pubic like NR or just planners?????
Looks like it’s available to anyone who will pay the fee.
Thank you Kevin! I told my boss my "I quit" as my FA told me I could. 😊 Seriously, I have been fortunate to develop a strategy to earn $5-6K/month, day-trading, to prevent spending down retirement savings and defer Social Sec payments.
I think Income Lab could be a different way to look at it and how to adapt as the market/investment performance changes. Interested on your thoughts on New Retirement software. I like Right Capital.
I haven’t spent enough time with New Retirement to make a definitive answer, but I found it a bit confusing. Maybe I’ll build a plan out sometime for a video.
@@foundryfinancial the tax stuff in right capital is without peer. But I remember when Right capital first rolled out, it was pretty weak in most other areas. But the tax tools were just incredible...still are
However it was, and still is, deficient in estate planning. Emoney mopped the floor with right capital when it came to estate planning. But Right capital has come along way in teh 7 years I've been using it.
I’ve watched many of these scenario videos, and one thing is always missing. It’s the annual fee the cfp charges. Where does the 0.25-1.0% come from? How is that factored into the retirement equation?
Right Capital figure it in at 1% unless you turn it off. The other software requires you manually set it
Income labs feels like it would work for clients who are in the 100k..300k range, whereas monte carlo simulations seem a bit irrelevant for portfolios under 500k, and not of much value at all for sub-300k.
why?
I am so confused, you have them pulling 8-9 percent out per year? That makes zero sense to me.
Phil and Claire Dunphy sound like a "Modern Family"... LOL
You could spend a lot more two years ago than you can today!
How can it recommend spending $8k/month ($96k/year), which is almost 10% of the total portfolio?
It calculates in Social Security for both of them.
@@foundryfinancialExcept those look like full S.S. benefits that they won’t draw from until age sixty seven. So about eight grand a month less for the first seven years.😊
What if u live til 100 years old will you run out of money?
Kbb will give you a purchase offer as well. Honda had topped out at $9500 on my trade, kbb bought it in under 30 minutes for $13,500. The next just showing the offer to the dealership resulted in them matching the kbb offer and then I got the sales tax advantage as well. It is good leverage, no cost or obligation.
I love this content, but it would be nice if Claire made more money or had more money in her accounts. I feel like these examples always reinforce stereotypes.
$1M @60 I think is too small. The younger you retire the more money you will need in the retirement account.
Generally agree. But it also depends on a number of variables (for example, a $7k budget goes a long way in FL l, especially if no mortgage; while in NYC that won’t fly).
Well it depends. It’s very possible to retire on that in some circumstances.
if you are 60 years old and have a million dollars and social security (at age 62) YES YOU CAN RETIRE !!!!!!!!!
You are forgetting the high cost of healthcare. Medicare doesn't kick in till age 65.
You are forgetting that the just-elected administration is attached to gutting Social Security.
If they’re 60, that can’t draw social security yet, right? Won’t Phil & Claire have to wait until age 62?
No, it calculates them pulling more from a portfolio upfront.
this strategy seems a lot more logical to me ... I find the Montecarlo to be a joke: with it you will likely retire with more than you had to start with ... the likelihood of a great depression is not that likely ... and then we have a much bigger problem ...
I'm turning 61 soon and my net worth is about 1.2 million. I don't feel remotely safe to retire anytime soon. I plan to work until 67.
Really sorry to hear that friend. I believe that one shouldn't view net worth as a barometer to retirement readiness.
Take the following example. If your household has $500k in a brokerage account and $500k in 401k/IRA. A house that is fully paid for worth $1M. Your core net worth would be $2M and your brokerage/401k ($1M) could yield $70k at 7% yield or rate of return. Versus $1M in brokerage, $500k in 401k/IRA and a fully paid for home worth $500k. Your brokerage/401k ($1.5M) can yield $105k at 7%.
In short, net worth is not a great measure of retirement readiness. Hope this helps.
Big yearly nut?
I had about that at 50 when I retired, almost a decade later have much more. Have always lived frugal but good.
Depends on your expenses. If you need to spend a $100k a year then you’re probably right.
@@EdNichols-qj4xk Thanks. My example wasn't showing how much they needed but an example of why net worth is not a great measure of retirement readiness.
@@logicae4096You are right. Net worth doesn’t mean anything. You can’t spend your house if you are living in it.
Cool. That is what the Germans thought too, in the early-1920's. "If I have a million Reichsmarks, I can live like a king forever..."
Me: 😮
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family...
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...
@@NaufalKnoechel Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY*.
@@MeirPamela Oh please I’d love that. Thanks!
*MARGARET MOLLI ALVEY*
Lookup with her name on the webpage.
Owen Wilson gives advice 😂
you’ll be fine
How safe is Right Capital? Is it tied to China and if so, how do you know that information used in the program won't end up in the wrong hands??
look its real simple you can spend your dividends accounting for taxes
Those dividends can (and do) go down…
I thought Phil and Claire lived in California?
They couldn’t handle the taxes. :)
@@foundryfinancialor the crime or the inflation or Newsom!
Well, one million.
My net worth is 1.8 MM and I am planning to work until I am 75.
If you accumulate 1M in net worth i would think you don't need anybody's advice. Unless it was inherited wealth.
You can spend 1 million 🙂
8k a month...that's strippers and coke.
Like always if you make $1M and you spend $1M and $1, you are broke.