Hey Jay I’m feeling this video. Well explained how much money I will need. I will definitely be using the calculator to determine my need. Job well done. Thanks
I enjoyed the video. However, you gave an example of decreasing withdrawal rate from 4% to 3% and how that would lead to a higher portfolio amount needed. I think what you meant to say is if returns on the portfolio decrease from 4%to 3%, the amount needed in the portfolio would be higher. If the withdrawal rate decreases the amount of money needed in the portfolio should be smaller, not higher.
The example was that you knew your annual expenses, but wanted to use a 3% withdrawl rate from your portfolio. So your portfolio needs to be bigger for those expenses to only be 3%. Obviously cutting the amount of money you're going to live off of is another way to get from 4% to 3 ,but in the example the amount of money you needed each year was staying the same
Hi Jay! I watch almost all of your videos. I’m am 3 months from retirement at 61 ½ years. I have TraditionalIRA over 1m and Roth under 25k. Heavy invested in T-bills at the moment both acct. Would it make sense to move all of my Roth over to Treasury Direct to invest in I-bonds this year and next? Using Vanguard now. Cannot purchase I or TIPS through Vang. Thanks
I can’t give individualized advice…but I’d plan out how much income you need to get from your investments when you retire and then consider if you need to make any adjustments to your current holdings to meet that goal
The original 4% rule doesnt factor in social security. Personally I don’t either as I have so long until I can collect it, I’ll just treat whatever I get out of it as a nice bonus
@@JayFairbrother Thanks. Another option is to: take ones retirement gross needs and subtract SS, then multiply this figure by 25. Since the SS is "indexed" it can be treated like the rare indexed annuity for financial planning. Regarding changes to SS given its financial stability ... politicians will adjust the program to make it solvent-just like it has been done several times before. Some reduce the amount (say 25%) of SS for their plan based on their lack of confidence in the program. Not including it in a FP can be a significant mistake for higher income earners.
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Financial independence is less about having a massive pot of money, and more about creating stable streams of income that grow over time
Hey Jay I’m feeling this video. Well explained how much money I will need. I will definitely be using the calculator to determine my need. Job well done. Thanks
Glad you enjoyed it! I still have the trouble of using those calculators to come up with a number, and then not trusting it lol
Hey Jay, another home-run video. Great video.
Thanks! I really appreciate the support!
I enjoyed the video. However, you gave an example of decreasing withdrawal rate from 4% to 3% and how that would lead to a higher portfolio amount needed. I think what you meant to say is if returns on the portfolio decrease from 4%to 3%, the amount needed in the portfolio would be higher. If the withdrawal rate decreases the amount of money needed in the portfolio should be smaller, not higher.
The example was that you knew your annual expenses, but wanted to use a 3% withdrawl rate from your portfolio. So your portfolio needs to be bigger for those expenses to only be 3%. Obviously cutting the amount of money you're going to live off of is another way to get from 4% to 3 ,but in the example the amount of money you needed each year was staying the same
@@JayFairbrother
Thanks for the clarification. Keep up the good work with your videos.
Hi Jay! I watch almost all of your videos. I’m am 3 months from retirement at 61 ½ years. I have TraditionalIRA over 1m and Roth under 25k. Heavy invested in T-bills at the moment both acct. Would it make sense to move all of my Roth over to Treasury Direct to invest in I-bonds this year and next? Using Vanguard now. Cannot purchase I or TIPS through Vang. Thanks
I can’t give individualized advice…but I’d plan out how much income you need to get from your investments when you retire and then consider if you need to make any adjustments to your current holdings to meet that goal
How do you recommend factoring in Social Security to the 4% portfolio rule?
The original 4% rule doesnt factor in social security. Personally I don’t either as I have so long until I can collect it, I’ll just treat whatever I get out of it as a nice bonus
@@JayFairbrother Thanks. Another option is to: take ones retirement gross needs and subtract SS, then multiply this figure by 25. Since the SS is "indexed" it can be treated like the rare indexed annuity for financial planning. Regarding changes to SS given its financial stability ... politicians will adjust the program to make it solvent-just like it has been done several times before. Some reduce the amount (say 25%) of SS for their plan based on their lack of confidence in the program. Not including it in a FP can be a significant mistake for higher income earners.
I loved this video. I can't wait to try the calculator!📟
It’s pretty fun to play around with, I wasted a lot of time with it 😂