Great video James. We are in NZ so the healthcare and social security doesn't apply to us. My husband is 12 years older than me. We are planning for him to retire a little before turning 61 and I will get a full-time job until he gets his national superannuation at age 65, then I can go back to part-time work again, or go temping/casual. At present hubby is the fulltime worker and I'm working parttime. It's only fair that because he's older that he gets some time away from work before he's too old to enjoy it. We have our home and probably 75% of the portfolio value that we think we need - in an investment property. The key is to reduce expenses so that you don't need a massive portfolio. A paid off home is a must. Time is the one thing we can't earn more of. We think of everything we purchase as costing X hours of our lives to earn the money to buy. Do we want it that much, or would we rather an early retirement?
Far too many don't consider negotiating a part-time role a few years before retirement. I retired right at 59.5, but I went to part-time at 57. Not only does it bridge things financially & give more *time* while one is still young enough & have energy to enjoy life, but it makes for a nice smooth transition into retirement, rather than being full-on for 35-40 years, then suddenly off. Don't underestimate your value to your employer, especially if you have Institutional knowledge and experience that is difficult to replace. It's good for them also to have you around to help train your replacement.
Man I wish you worked on an hourly basis. We would love to have an opportunity to put our situation in front of you. We are 14 years apart and I am already "retired" at 69. I haven't taken SS yet and do a side gig that brings in enough that we haven't yet drawn anything from our investments. We would love to get your opinion on our situation and this video is a super start.
Excellent coverage, James! I love seeing these various retirement scenarios demonstrated. I've never seen a financial youtuber discuss an age gap retirement in such detail. My partner is 20 years younger and I plan to retire at 65 when he will be just 45. He wants to work at least until he's 55, but I'd prefer him to retire at the same time as me so we can travel and such, but that's understandably a bit scary to him. I've run the numbers and I believe we will be just fine financially, especially if I delay my SS until age 70, but it's his choice, ultimately.
Thanks for such an insightful and valuable video, James. My spouse is 30 years younger than me so your advice was helpful. We believe our finances and expenses are worked out but the most concerning is health care costs. I have long term care and excellent insurance at work, which covers us but that will change when I retire, possibly next year ( I am 62). He doesn't work at this point, thus no company provided insurance once I am retired. We have medical costs baked into our yearly expenses until I hit Medicare...thereafter his medical insurance and out of pocket expenses are included, which will inflate our yearly costs. So, it's one of those unknown variables that worry us most.
Phenomenal breakdown! I sent this to my parents who are in a similar situation. They hope to reach out to Root Financial to begin developing their retirement plan.
This is pretty close to our situation. Excellent points. If we both have traditional IRAs, whose should be be focusing on for Roth conversions? He will have RMDs due sooner but mine will have much longer to grow tax free. We'll start RMDs in 4 years.
Good point. It can be done. I am over 65 on Medicare. My wife retired before Medicare eligibility and is covered by my former employer retiree health insurance.
Thank you for your excellent videos. I’m 59.5 and my wife is 10 years younger than me. Will probably retire at 62 to be able to collect social security for myself and my daughter who is currently 12. I just learned that my daughter will get half of my full social security until she’s 18. This is something people with young children need to know when planning their retirements.
Most people aren’t having children at that age and if they are they are more concerned about helping their kid pay for college than they are about retiring early.
This is a interesting topic. Because my wife is 14 years older than me. She has a government job and retires in 6 years with her 30 year full pension and paid insurance. I work in the private industrial sector and make twice as much money yearly as she does. She is the beneficiary of my 401k, Roth ira and brokerage account. And i will acquire 75 percent of her pension and insurance on her passing. With me making so much more money yearly than her. Should she wait for social security later or get it at 62? And the same question applies to me as well.
It sounds like you’re much better off financially. I would suggest you wait till 70 to max out your benefits and she collects at 62. If she outlives you she can switch to the survivors benefit at age 67. If you survive her you can just file for or continue your benefit. But keep in mind you’ll probably lose her medical coverage if she dies first.
We are near 80 and 69.. Retired at 57 & 55. So I was a bum at home for 9 years. 55 was the minimum age for DWs pension. Pensions allowed a little extra pre 62 or pre 65. My SS at 62. We both have a reasonable company health care plan. . Did not do any withdrawals till my RMD. No survivor benefit on pensions. Nest egg and DWs age 70 SS will be important to survivors income. Should be enough
One thing to remember is variability in planning and reality... My wife and I planned on her working a bit longer past when she "could" retire to make that closer to when I will retire... But her work got crazy and she ended up retiring much earlier than planned... We never factored in the possibility of her retiring early... So that has required a fair amount of trying to figure out if I will have to work longer as a result... (still working on trying to figure that out...) Oh, just got to the point where you are talking a bit about that...
I saw that, and wondered how Lisa & Fred got in the door. Unless one's home equity is counted, they didn't make it to $2m. Frankly, I wouldn't consider one's home value as part of the equation (and he didn't) unless one is planning to sell the home (and that doesn't appear to be in their plans especially while she's still working).
I am terrified about retirement. I do not believe in the stock market and have 0$ in it. I do have 3 rental properties that bring in $85,000 per year after expenses and up keep. I have $350,000 in bank cds and I am 59 and my spouse is 68 and she is currently taking social security and also runs a part time business that earns $ 30,000 per year. I currently feel that I can never retire until I become sick and then get ready to die. Please help I am depressed and anxious… make a video about someone in my situation. Thank you.
Great video James. We are in NZ so the healthcare and social security doesn't apply to us. My husband is 12 years older than me. We are planning for him to retire a little before turning 61 and I will get a full-time job until he gets his national superannuation at age 65, then I can go back to part-time work again, or go temping/casual. At present hubby is the fulltime worker and I'm working parttime. It's only fair that because he's older that he gets some time away from work before he's too old to enjoy it. We have our home and probably 75% of the portfolio value that we think we need - in an investment property. The key is to reduce expenses so that you don't need a massive portfolio. A paid off home is a must. Time is the one thing we can't earn more of. We think of everything we purchase as costing X hours of our lives to earn the money to buy. Do we want it that much, or would we rather an early retirement?
I've been waiting for a video like this! I'm 50, and she's 40.
James. Thank you for posting this video ! You are the first financial planner who has addressed this older / younger spouse issue on RUclips.
excellent content, thank you very much I truly appreciate all your efforts helping people
Far too many don't consider negotiating a part-time role a few years before retirement. I retired right at 59.5, but I went to part-time at 57. Not only does it bridge things financially & give more *time* while one is still young enough & have energy to enjoy life, but it makes for a nice smooth transition into retirement, rather than being full-on for 35-40 years, then suddenly off.
Don't underestimate your value to your employer, especially if you have Institutional knowledge and experience that is difficult to replace. It's good for them also to have you around to help train your replacement.
Man I wish you worked on an hourly basis. We would love to have an opportunity to put our situation in front of you. We are 14 years apart and I am already "retired" at 69. I haven't taken SS yet and do a side gig that brings in enough that we haven't yet drawn anything from our investments. We would love to get your opinion on our situation and this video is a super start.
Excellent coverage, James! I love seeing these various retirement scenarios demonstrated. I've never seen a financial youtuber discuss an age gap retirement in such detail. My partner is 20 years younger and I plan to retire at 65 when he will be just 45. He wants to work at least until he's 55, but I'd prefer him to retire at the same time as me so we can travel and such, but that's understandably a bit scary to him. I've run the numbers and I believe we will be just fine financially, especially if I delay my SS until age 70, but it's his choice, ultimately.
Agree and great point where my wife is older then me. I would like to see scenarios where the wife is older. Great videos.
Perfect. Exactly the situation we are in
These videos are so good! I love seeing the comprehensive approach!
I would love the spreadsheet you used to plug in our numbers.
You are really a very good teacher.
Very good video, you brought up alot of good points!
Thanks for such an insightful and valuable video, James. My spouse is 30 years younger than me so your advice was helpful. We believe our finances and expenses are worked out but the most concerning is health care costs. I have long term care and excellent insurance at work, which covers us but that will change when I retire, possibly next year ( I am 62). He doesn't work at this point, thus no company provided insurance once I am retired. We have medical costs baked into our yearly expenses until I hit Medicare...thereafter his medical insurance and out of pocket expenses are included, which will inflate our yearly costs. So, it's one of those unknown variables that worry us most.
Phenomenal breakdown! I sent this to my parents who are in a similar situation. They hope to reach out to Root Financial to begin developing their retirement plan.
This is first class advice.....excellent content. My Wife is 9 years younger than me - thank you!
Right on point JC
This is pretty close to our situation. Excellent points.
If we both have traditional IRAs, whose should be be focusing on for Roth conversions? He will have RMDs due sooner but mine will have much longer to grow tax free. We'll start RMDs in 4 years.
After Fred retires, can his medical needs be covered by Lisa's medical coverage? If so, would it be cheaper than Medicare?
Good point. It can be done. I am over 65 on Medicare. My wife retired before Medicare eligibility and is covered by my former employer retiree health insurance.
Great Video!
Thank you for your excellent videos. I’m 59.5 and my wife is 10 years younger than me. Will probably retire at 62 to be able to collect social security for myself and my daughter who is currently 12. I just learned that my daughter will get half of my full social security until she’s 18. This is something people with young children need to know when planning their retirements.
Most people aren’t having children at that age and if they are they are more concerned about helping their kid pay for college than they are about retiring early.
Been looking for something like this. I'm 61, my wife is 54,
What software is being used? Thanks!
Great topic
This is a interesting topic. Because my wife is 14 years older than me. She has a government job and retires in 6 years with her 30 year full pension and paid insurance. I work in the private industrial sector and make twice as much money yearly as she does. She is the beneficiary of my 401k, Roth ira and brokerage account. And i will acquire 75 percent of her pension and insurance on her passing. With me making so much more money yearly than her. Should she wait for social security later or get it at 62? And the same question applies to me as well.
It sounds like you’re much better off financially. I would suggest you wait till 70 to max out your benefits and she collects at 62. If she outlives you she can switch to the survivors benefit at age 67. If you survive her you can just file for or continue your benefit. But keep in mind you’ll probably lose her medical coverage if she dies first.
We are near 80 and 69.. Retired at 57 & 55. So I was a bum at home for 9 years. 55 was the minimum age for DWs pension. Pensions allowed a little extra pre 62 or pre 65. My SS at 62. We both have a reasonable company health care plan. . Did not do any withdrawals till my RMD. No survivor benefit on pensions. Nest egg and DWs age 70 SS will be important to survivors income. Should be enough
One thing to remember is variability in planning and reality...
My wife and I planned on her working a bit longer past when she "could" retire to make that closer to when I will retire...
But her work got crazy and she ended up retiring much earlier than planned...
We never factored in the possibility of her retiring early...
So that has required a fair amount of trying to figure out if I will have to work longer as a result...
(still working on trying to figure that out...)
Oh, just got to the point where you are talking a bit about that...
Is your company available to consult or are you a full time RUclipsr?
According to Root Financial's site, you need at least $2M in your portfolio
I saw that, and wondered how Lisa & Fred got in the door. Unless one's home equity is counted, they didn't make it to $2m. Frankly, I wouldn't consider one's home value as part of the equation (and he didn't) unless one is planning to sell the home (and that doesn't appear to be in their plans especially while she's still working).
This is how our employers treat us nurses!!!
Wouldn't Lisa be taking a smaller percentage of Fred's SS as a survivor benefit if she collects prior to FRA?
She would be taking her own ss benefits. Then switch to survivor based on Fred's benefits
How about a 20 year difference? Thinking about trading in for a newer model.😅
Good luck, Fred. I hope it works out for you two. 👍
I am terrified about retirement. I do not believe in the stock market and have 0$ in it. I do have 3 rental properties that bring in $85,000 per year after expenses and up keep. I have $350,000 in bank cds and I am 59 and my spouse is 68 and she is currently taking social security and also runs a part time business that earns $ 30,000 per year.
I currently feel that I can never retire until I become sick and then get ready to die.
Please help I am depressed and anxious… make a video about someone in my situation. Thank you.