The Five Things That Will Make You Financially Secure In Retirement
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- Опубликовано: 5 июн 2024
- This video, The Five Things That Will Make You Financially Secure In Retirement, talks about the fundamentals of retirement, many of which people get wrong, or worse yet they miss completely! The content of this video should be part of every retirement planning discussion, most importantly the last point! This is particularly true when talking about retirement security and the best strategies around safety in retirement.
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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.
We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2024, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.
Keeping some gold is usually a wise decision. You would be better off keeping away from equities for a bit or, even better, seeking advice from an expert given the current market conditions and everything that is at risk with the current economy.
You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst.
Could you possibly recommend a CFA you've consulted with?
Angela Lynn Schilling is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thank you for saving me hours of back and forth investigation into the markets. I simply copied and pasted her full name into my browser, and her website came up first in search results. She looks flawless.
Seems to me the key to financially successful retirement is to let go of any need to impress anyone.
I do like to impress people with the fact that that I have hot and cold running water. There is no bottom.
Just don't need healthcare as you age. You'll be fine😂
So true, i like that saying, "what others think of me, is none of my business". You'll impress yourself when you retire with cash flow to travel.
@@jr.6199 No one needs to travel. It isn’t a necessity.
@@audreyandrea460 travel includes on foot, bike or bus too. Everyone needs a change in perspective. Now go impress yourself, get away from this device for a day.
In 1990 the builders motto was “your house should reflect your success in life. -the bigger the better. I got taken in. Do not get over housed and highly mortgaged
Happiness is a comfortable size house and mortgage free. Also buy a two year old car and drive it for ten years
Finally no costly toys
You never know what lies ahead
As now a long retired homebuilder, I had no motto about what people needed to buy. I just provided what they wanted. Simple fact.
we operate differently in Australia - start out with and possibly stay with a basic 3 bedroom house - one toilet, one bathroom. 4 children share 2 bedrooms. Plenty of backyard or nearby parklands.
As a soon-to-be retiree, keeping my 401k on track after a bumpy 2022 is a high goal. I've read about investors generating up to $250k ROI in this present sinking market; any suggestions for increasing my ROI before retirement would be greatly appreciated.
there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
@@suzannehenderson5 Please can you leave the info of your investment advisor here? I’m in dire need for one.
Christine Jane Mclean. You can easily look her up, she has years of financial market experience.
She appears to be a true authority in her profession. I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. She owes me a fiduciary duty to act in my best interests. I set up an appointment to use her services.
Seven years after retiring, I became virtually debt-free. Claimed my RN pension at age 55, as I already had 30 years of service at my employer .At 62 I claimed my Social Security benefits. In the subsequent 9 months,with Social Security benefits as my second income stream,I cleared all my debts. Am replenishing my savings and it feels wonderful.
I’m smiling with you..Best to you 🤗🇺🇸 enjoy your retirement!
I retired at 68, after 52 years in the workforce, in 2019. I had put myself in the position of having no debt and am in good health. All my household bills (utilities, insurance and taxes) total less than 15% of my monthly SS income alone. I still save, have a cash emergency fund and I'm enjoying my retirement to the max!
Sorry, no way is that possible unless you are homeless
actually, this is possible, in a paid off house, and depending on where you live. A your mileage may vary. I doubt you could do this in New York or New Jersey!
my baselines:
Mortgage: 0
Electricity: 8.18 - solar. and I leave the lights on. system is paid for.
Gas: 35
Water: 30 Though, I need to not over water the garden in the summer.
Trash: 15/month (highway robbery!)
Insurance: 75/month
Property Tax: 180/month.
of course, it goes up if I count a specific budget for home improvements or repairs. But baseline taxes, insurance, utilities... the house... it's not brand new, about 30 years old. Updated over the years, 2 year old roof, 10 year old mechanicals, half acre and it's not a single wide.
Me too. You are not alone. My expenses is 30K and pension plus SS are 45K. Your 15% is pretty low.
Not possible. 4194 is currently the max. 50328 a year. 7549.20 total annual expenses. Not happening.
Social Security only for us as well -- mid-sixties with $5,374 in monthly SS. Zero debt. General fixed expenses: $16,488 Groceries/Entertainment/Dining: $24,000 Travel/Gifts: $24,000
Marginal utility is a great concept. I got into serious road biking at the start of the pandemic. I bought a 12 year old road bike that originally sold for $4500 for $500. Last month I began to think about getting a new road bike. The bikes that are better than the one I own are about $5k. I finally decided to ditch the idea of a new bike because it wouldn’t provide me $4500 of additional enjoyment above what I have now. I can live with the old bike; it provides what I need.
Sounds like fun though!
Diversification of Investments is really a great idea for multiple streams of income.
@Adnan Khan That's right! Even in retirement, I have lots of investments that I make profits from. I invest in bitcoins and property.
@Niklas Gerhard You shouldn't invest in bitcoins without professional guidance. You need a professional to guide you through the process.
@Niklas Gerhard *Alicia Seda* is one of the best Professionals on bitcoins I know. She has a way of making huge revenue in just one week. She is my investments manager. Her services assures you interest, daily and weekly.
Thank you. Just what I needed to watch.
My wife and I are directors of our farm business and own property, plus small pensions. I am nearly 55, my wife is 52.
We have started to save to retire from the farm, and possibly live on rental income, I'd really appreciate you go LIVE and talk about how to earn passive income online and retire comfortably, let’s say $1M.
you should consider financial planning.
It isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing.
@@jessicasquire I totally agree, I'm 60 and newly retired with about 1.2 million outside retirement funds, no debt, and very small dollars in retirement funds compared to my portfolio balance over the past 3 years till date. tbh, the role of the investment advisor can only be overlooked, not denied. just have to do your research in finding a reputable one.
@@patrickbrussels4454 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.
@@Erikkurilla01 My specialist is *STEPHANIE KOPP MEEKS* I found her on a CNBC interview where she was highlighted and contacted her a while later. She has since give passage and leave focuses on the protections I center around. You can turn her upward on the web assuming you care oversight. I fundamentally follow her exchange design and haven't lamented doing as such.
My husband and I have never carried credit card debt-we always pay off the cards monthly! And one of the best decisions we made was to refinance from a 30 year fixed mortgage to a 15 year fixed. The house has been paid off for several years now and that allowed us to pay for the kids' colleges without hardship!
40% of retirees have debt. That really surprises me. The only way I'm going to be able to get by in retirement is by having no debt. My house will be paid off in 5 months; retirement in 11 months!
@Kate Burkes: We retired with the house paid off. When housing prices around us went up it caused property taxes to go up. We've been quite surprised at how much
property tax we pay now that we've been retired 15 years. Plan for that.
If I retire it will be in 5 to 10 years. Considering my personal issues, I have not decided on buying or renting. I could buy a new home cash but adding the variable of taxation, it might cost me less to take on a mortgage. Too many financial decisions come down to taxes.
I would have expected the % with no debt to be much more.
If your debt is in a mortgage on a rental property that brings you more than the mortgage is, that’s not bad debt. That’s a good investment. There are probably lots of retirees who bring in rental income like this.
Me too. I am on pace to pay off my primary resident $328K mortgage in 25 months, this December will be my last payment and I will hit 50YO in Oct. with 3 other rentals, 401K and healthy saving, I hope to retire by 60. These houses are all in the SF Bay Area.
This is my fifth year after retirement. I’ve been following the 4% rule thing, but this isn’t really how hard I expected things to be. I still have about $460k outside funds in my IRA to invest in stocks. Pls how do I take advantage of the market turnaround?
now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
A lot of folks downplay the role of advisors until being burnt by their own emotions. I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.
This is really nice. I worry that I have a couple more years before retirement, and I want to switch to using a financial advisor, I could really use the expertise of this advisor.
I started out with an FA named Nicole Desiree Simon Her honest approach gives me complete ownership and control over my position, and her rates are incredibly affordable given my ROI.
I just googled her name and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a call.
I paid off all my debt in my 30's. The cash flow is amazing and the reduction of stress shouldn't be understated.
Totally.
@@HolySchmidt 😀👍
So did I. Then I was laid off as an airline employee after 9/11. Boy, did that change things.
Here are my 5 tips:
1. No debt of any kind, even if it’s zero interest.
2. Don’t stop saving - resolve to put away 10-30% of your monthly income.
3. Don’t spend more than 30% on any one thing in your monthly budget.
4. Keep a 6-month emergency fund in cash.
5. Reduce stress and stay healthy - rest, eat, sleep, move around, keep learning and avoid injury.
Great advice 👍
Good advice but that prevents many from living for now either by avoiding nice purchases, vacations, etc or by working forever to pay things off. They save all this money, only to die 6 months after retirement, never having truly enjoyed life at any time!
@@RichardinNC1 It's a fine line. I've known that too happen. A man worked in the refinery in Texas for over 30yrs. He retired and died a few years later from pancreatic cancer. I remember him being so mad! But his wife and kids were set. A better way it to always ask... Do I need this or do I want this?
If you're under 65, health insurance could possibly eat up 30% or more of a modest monthly income. $4000 income (fairly common retired person's monthly income) would be over $1300/month for health insurance which is not uncommon. The affordable care act ("Obama-care") may be able to save you from this fate though depending on the state you live in and what you qualify for.
@@henram36 Especially true since qualification for subsidies is based on income, not assets or cash on hand.
There is a peace that defies understanding being debt free.
Absolutely. It has been very liberating for me. My last thing was the house. It even made going to work easier.
Agreed.
Yes!
The price of anything is the amount of life you exchange for it.
Henry David Thoreau
Invest in taking care of your health. As we age, it gets less reliable and not a "given". ...and without it, all this talk of financial issues wont mean squat if your health is shot.
I agree with you, just don't depend on anyone else doing it for you.
Health is wealth
Can’t agree more. I will be debt free by this December and 50 years old. With no debt, 3 paid off rentals, 401K and cash and $200k 9to5. hopefully I can retire by 60 and start collecting ss by 62. 10 more years to go and This is all in the SF Bay Area.
Garden helps
I am amazed that most people need to ask their financial planner if they have enough money to retire or if they have enough money to purchase something. I have been my own financial planner for over 30 years and I am kicking azz-:) And I managed a warehouse. I am not some college educated person. I went to the school of hard knocks and won-:)
62 and 8 months. Will begin receiving Surviving Spouse SS payments in August. My husband passed away 1 month ago. Retired CFO. He took good care of my stepchildren’s and my financial future. He was very physically active but cancer took his life. RIP
Sorry for your loss.
I’m sorry you lost your husband. Please carry on in his honor and out of respect for him - you know that’s what he would want you to do. Sounds like a good guy……..and I’ll bet he loved you and your children very much. Damn cancer. 🇺🇸
Please accept my condolences for the loss of your husband. Very difficult time. I am sorry.
Sorry to hear about your husband. My biggest fear. I am physically active nearing 60 and thank God for every day I awake
I AM STILL WORKING AT 77 AND WE BEGAN SS AT 70 AND HAVE NO DEBT SO WE ARE WELL OFF, DESPITE MANY YEARS OF LOW INCOME AND A STAY-AT-HOME MOM.
Diminishing Return: I really wanted a cool “toy” car. I looked at lots of options. I ended up with a Mustang GT convertible. Other cars were 2-3X in price but not 2-3X in the fun factor (my goal). I bought used and paid cash. I discovered Mustang clubs, I loan it out to friends, and love driving it. Right now, my friend Myron and his wife are having a blast with it up north. That is part of the “fun factor” for me (something that wouldn’t work if it was a “supercar”).
You are letting everyone know than not even viagra works now.
Sounds like a fine choice. Enjoy.
I have watched several of you straight forward videos. Thank You!
Very honest, sober, informative , and educational financial presentation regarding this specific topic . Thank you sir.
I really like your straightforward approach in your videos. Thank you!
I would add that get major appliances, water heaters, roofing, plumbing, ac/heating all replaced if needed before retiring.
A good thought. I am currently getting medical issues addressed before potential retirement, while insured.
I totally replaced my ac/heating a couple yrs back by a 1st rate company and living in the south it has been a great investment.
I agreed to that. I recently replaced washer, dryer and freezer. A/C and stove will be next before I retired at 66 and a half
Appliances are expensive these days and being in debit with these is like asking bankrupcty. Car needs to be paid as well
Don't forget a retirement plan for your oral health. I recommend to my patients that they get their teeth fully fixed prior to retirement. That way all they have to is maintenance visits during retirement.
Good advice!
Sound is great. Thank you!
Love love love your videos…..you are a great teacher!
I am a new viewer and I appreciate your explanations. I’m no dummy, but finance always made my eyes glaze. You make this topic so much more understandable. I was particularly impressed when you mentioned tracking spending. I’ve been a member of several support groups for years, one of which deals with money. “Keeping my numbers”, by writing down what comes in and what goes out was life-changing. Thank you so much for your work.
Such a nice picture of you looking happy with the sunflowers, and nice green shirt Geoff. 🌱🌻
You provide more info fro retirees than anyone I’ve listened to. Thank you.
We retired in 2020 and had paid off the mortgage a year earlier. I manage the money and let my wife know what is going on with bills and investments and retirement income and we regularly talk about them. I know the credit card balances and pay dates as well as the checking account balance. I know when the various insurances and property taxes are due. I know the monthly utility bills and vehicle registrations as well. I have set up the bank to auto pay most of our bills. The key is to know all this information so that there are no surprises. Another thing that will help a lot is to lose weight and eat better. Managing all of this takes time, but in retirement, you have a lot of time and therefore, life should be fairly easy.
TED...some thing to consider...while you are able to do all these things today, what plan do you have for the onset of dementia or cognitive decline?
I am 72. I have more financial education that 99% of Americans, as I am a college professor who has taught financial planning and retirement planning for the past 14 years. Prior to becoming an academic, I was a financial services professional for 12 years. Prior to those two careers, I spent 28 years in banking and finance. It is great that you have your financial dates and amounts and a plan in place...today. But if you passed tonight, would your spouse be able to replicate your capabilities?
Continued success in your retirement.
Some people,maybe lots of people,don’t seem to ever understand simple math. I don’t think there’s any advice that will help most of these people. Almost all people who are solid in retirement were that way thru the years. Pay your self first..live with in your means..always know your limits…. Usually a life time of foolish decisions it’s not turned around in one year…. Best channel on RUclips thanks
I could have retired years ago. The problem is I do know what the future might be like. I lived through the 1970's and see it happening again. I am fully employer and collect two different pensions. I could quit today but tomorrow is always in question. As long at inflation is a question, and as long as taxation is a question, I am staying employed, it is my best alternative. If people want to understand their position, the need to understand the time value of money. A simple google search would tell them that. The other thing that would help would be a search on NPV. That would help in making good decisions about what they should be investing in for the future.
Straight up solid comment. It did not start the day of retirement, they always lived that way.
I like your tongue-in -cheek list at the beginning, and can tell you enjoy making these. All the ones I watched are excellent. Newly subscribed, close to retirement (5years or so) would be great to hear you speak on passive incomes in retirement- rental property ect. Once again Thank You for your service!
Always sound advice, thanks.
Great video as always. Thanks.
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy.
The stock market is very strong. The labor market is very strong. I suggest you rest easy.
😊
When I eliminated debt some years back, it was like getting a raise. Never carry debt that isn't earning more than you cost of capital.
Geoff!
Your videos are truly inspiring to do the right thing and to keep doing the right thing for the rest of one’s life… Thank you for all your hard work. I look forward to watching every video you have done.
Respectfully,
JimmyUSAF 🇺🇸✈️✝️💜🙏🎄👍😇🇮🇹🌎
We track every penny that come's in an go's out for everything, always have an always will, all done on our pc weekly, an monthly an yearly. But we're frugal an watch our pennies, lessons learned from my grandparents who lived thru the depression. I always ask myself, do I need it, or do I just want it, before I make any purchase, an I always do my homework before I buy anything, an I always take at least 24 hrs before I make a purchase for anything, kinda puts a stop to impulse purchases. Thx for the vid Geoff
My spouse and I are adding a variety of stocks/ETF to my present holdings for the long term, We've set aside $250k to start following inflation-indexed bonds and stocks of companies with solid cash flows, I believe it is a good time to capitalize on the market for long-term gains, but it wouldn't hurt to know means of actualizing short term profit.
that's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you.
I just looked up Diana Claire Lougen online and researched her accreditation. She seem very proficient, I wrote her detailing my Fin-markett goals
Great video! I'm 55 as of yesterday and financially retired. I work in my own business for the enjoyment and my dividend portfolio pays more than my monthly expenses.....and 0 debt period.
I mention this because I love learning from your videos on what people have done wrong at the doorstep of retirement... when it's already too late. Your advice to them allows me to make possible corrections before I get there. Thanks for all the valuable information!
One thing I would mention to people is to create an income statement and a balance sheet. I adjust it monthly and when I add to my stock positions to calculate the increase in monthly income from the dividends.
I always build in a margin of error for any plan I create. Great video, thank you very kindly.
Having our home paid off and our car also, is a blessing. Also, we no longer drive two cars---we need one only.
I see it has been said, but I will mention also. I have always lived below my means and I gain a sense of security from that as I see money saved and invested consistently growing as I approach retirement.
13:28. To track spending, I recently started using my bank's website. It makes it easy to designate transactions for various categories, and gives me a cumulatuve pie chart. I can compare with previous months. When I started this, my expenses went down significantly. It also allowed me to more accurately predict weekly expenses like food, gas, and a little mad money. This allows me to withdraw cash for those items to control spending while robbing Peter to pay Paul for extras without falling into debt. It's a fun game that works for me. This often reminds me of what you said in one of your other videos: "Every dollar has a job." Thank you so much for sharing your wisdom -- helps me every day. -- a single retired RN and grandmother.
The info is great as always, but with the clock in the background I can see how much effort goes into just capturing the points you are communicating. I’m sure there is much more time in the editing and the preparation of content. Thanks for all your hard work preparing us for retirement!
Now I have to go back and look at the. Click, lol
Love your knowledge base and advice on finances. After learning from one of your videos, that you were a black belt in karate, I’d also love to see some old videos of you doing some old martial arts moves. Your motto could be “Im always fighting to save you money “ haha.
I agree with most of your opinions regarding retirement. We have no debt. Two new vehicles last year. Now doing some minor home improvements over the next couple years. Plenty of SS and Ira Income. But I listen to your vids when they come out. Thank you!
Thanks David
I worked for both Jaguar and Aston Martin. Also love Alfas too. Love the concept of Marginal Utility. Happily retired with a FS pension from both.
Truly enjoy your channel. As a New Zealander our retirement/pension automatically commences at age 65 and continues for the rest of your life. So I was somewhat surprised that in the USA, superannuation employs an expiration date. That aside thank you for your clarity in regards to making retirement issues simpler.
Here in the U.K. a colleague got a 24% uplift in his state pension by not taking it until he was 67. Unfortunately they changed the rules a couple of years later and I won't get any state pension until I'm 67. The current big debate is the "Triple Lock". Due to the Bank of England's inability to control inflation the state pension is going up 11% this year. Meanwhile they are wondering why nurses are complaining about a 4% pay increase offer.
No, the federal retirement system in the US (Social Security) lasts for the entire lifespan of the retiree. There is no "expiration date" except death.
Great Logic and thought. Continuous Cash Flow in retirement is the key. Wish you would of said more about how to minimize the IRS taking that cash flow while trying to hold on to Principle. Thanks
Excellent advice.
One friend was from an italian family that pitched in and bought her and husband a house when they married. What a great idea to reduce debt and support the new family! Then you pitch on for the next couple. I love this!
My company made us a good offer when covid hit. I decided to retire. Since it came unexpected I had not much money in my 401 K. My husband passed away shortly after and from the little life insurance I paid my condo off. Thank goodness I have no debt. I don’t have a lot, but I can make it. My association fee is 400$ a month and then utilities, which is about $50. Thanks for your video!
Condolences on your loss, and wishing you peace on the road ahead.
@@ontheotherhand7627 thank you for your kind words.
Concise, straight to the point, no frills and spot on as always. One thing I'd add that my Dad used to say is that if you are 55 years old you should have your house (updated and remodeled as needed) and vehicles paid for. I understand that the recently low but now increasing Fed Funds Rate might have lead to rebuttal on the house point. But this was not only a thing based on financial reasons but also on peace of mind going into your retirement. I worked hard and was blessed/lucky enough to have achieved both house and new 4Runner paid off (bought 4Runner with cash). As you age past 60 debt is not only a drain on your $$$ it's also a burden on your mental well being. It's a rough go these days and will only get rougher IMO. Best of luck to all.
Your dad was a wise man. I will hit 50 by this October, with no debt. 3 rentals and 1 primary home all paid offin the SF Bay Area. Family of 4, my rentals will more than cash flow my 2 kids’ college. Start saving when you are young, don’t overspend like most of us Americans.
We took SS at 62 each and I have not regretted it. His job went away at 61. Due to health reasons he took SS early and went with a part time job. We were raising our grandson at that time. I was teaching. But after cancer I retired at 52 and have a pension. For the last 20 years I have worked in education part time and am retiring fron it.
We still had a 16 year old. Due to a small inheritance we sent him and my daughter to college. My parents died in their 60s and didn't collect much SS.
My spouse still has a small part time job 5 hours weekly he enjoys. I hope to have the same.
No debt but a small Home Equity loan. That helps.
We don't live a high life but do go on vacation and do things we enjoy and volunteering. Living on a budget, saving into sinking funds and tracking spending keeps us out of debt.
I always enjoy hearing what you have to say!
I think you should put more emphasis on health and health maintenance
Thank you as always. God bless.
As always, very enlightening.
Thanks DM
Great video! Thanks for sharing your insights!
I am new to your videos, and am enjoying them. A subject worth discussing, if you have not, is managing the drawdown of one's IRA(s) and other nest eggs in retirement year by year, especially during major market downturns. Liquidating depressed holdings to take a chunk of my money out of a market that will rise again without the future participation of that money makes me cringe a bit. Surely there must be some strategies to optimize the drawdown. Have you covered this? And if not, could you?
Hello. At 7:44 into the video, you said that you would have a video on money management at some point in the future. I was reviewing your more recent videos in the past 8 months. Did you ever make a video about this topic? Your videos are very informative. Thank you for sharing your knowledge and experience with this community.
Not paying off mortgage may make financial sense, but having $0 mortgage payment eliminates *any* financial risk, regardless of interest rate.
Retired 6 monthes ago. Excellent points.
Best way to enjoy retirement is to have no debt. Solves a lot of problems.😉
Being debt free with financial margin makes me secure and free!
Retired at 59. Purchased retirement home in 2019...sold primary home 2022 and paid off mortgage for retirement home. No brainer....no debt...I take one hour per month to go over budget and cash flow.
Every month we sit down and review our budget. Not hard to do. This gives us peace of mind & I suggest it be a routine. Knowing your monthly cash flow relieves a tremendous amount of anxiety. That’s a “biggy!” And do not spend above your means! Yes! Enjoy retirement but remember that keeping up with the Jones is senseless and frankly, no one gives a “Schmidt!” lol
When your taking social security you go over the caps set up on earnings you go into the local office fill out the paperwork. They can take out a small amount. Over a year or so it can be paid back. You don't loose the whole payment
Once it's paid back you return to get 100,%.
Other options do your taxes then flie the extension. Have some time to get up what you have gone over pay them back if you can.
ONE WAY TO PAY OFF the mortgage faster is to DOUBLE UP on the PRINCIPLE of the payment. If you look at the statement, a pretty low percentage of that payment went to principal. If you double that amount in your next payment, AND specify that "overage goes to principal" (otherwise they may just funnel it into the "escrow") that will cut down an ENTIRE payment. You won't see it until the end of the payments, but when I was able to pay off the balance of my mortgage, I had cut the final payment almost in half. ($10Ks)
It is great advice. I did just that for 5 years and saw the balance of the mortgage falling down very quickly. Highly recommend doing it.
Don't be an idiot. Tying up money in equity that could be invested is how the house rich stay poor. Learn to use the bank's money.
@@DrSchor Only provided that you can make that money make more than what you are paying in the interest.
Turn 63.5 in October, need to retire from a mentally exhausting job I've done for 28 years....I plan on working part time, I have a mortgage 3.2% no credit card debt, my wife provides full time care of her 92 yr old disabled mother who lives with us. I'd love to sell our home in our great market and could make about $200k, but can't.
One of the commenters said you’d better have good health, cause without it, well, you’re in deep doodoo. On that line of thought, I’d like to add that getting the best Medicare supplement policy there is, Plan G, is the absolute best bang for your buck, and in our older years you’ll be needing it. I feel secure, both emotionally and financially with my Medicare Plan G that pays for just about everything that Medicare doesn’t.
I will too sign up for Plan G in 1-1/2 year from now, I will turn 65, thanks for the reminder.
I’m retiring next week and applying for Medicare. Thanks for the tip plan G. I’ll check it out. Brokers are swarming to get me to work with them
I have used Christopher Westfall's RUclips channel to avoid a lot of Medicare traps. You should check it out.
We’re looking at Medicare right now. It was really important for us to check out some videos about the pitfalls of going with the Medicare Advantage plans (often free) compared to the Medigap or Supplemental Plans (like Plan G). The big concern is being able to qualify medically in the future as we age and develop health issues.
I always enjoy these presentations. Even if to put something’s in your life into perspective. Cash flow projections into an unknown retirement are difficult. Be sure to put a very large budget for miscellaneous. I have been retired for two years. My “lifestyle” expenditures are much greater as I intend to live life. But, still within a plan. One last comment I would make. For me, I have no problem with a budgeted reduction in investment corpus. Trying to retire and never drawing on your saved funds may be doable, but may also reduce your enjoyment factor. Don’t really concern myself with what I do or do not leave to my children in my estate. Here again-in balance.
Well said my friend.
20 years ago I stopped carrying a balance on my credit card. Pay it off monthly. Always ask myself, " do I really need this purchase?" Drive a 10 year old paid off vehicle. Only debt is my house payment which I make extra principle payments months. Its all about living frugal.
Hi Jeff. I always learn something from you. I am curious however, have you ever addressed HECM’s? I am 70 years old and recently retired here in Southern California with a reverse mortgage. Ideally, my home would be paid off. Anyway, your thoughts?
I've watched many of your videos and respect your knowledge and advice. I'm looking for guidance on some financial decisions. I'm not asking you for free advice but rather can you recommend the type of advisor I should speak with about whether to sell/refinance/or downsize? Without going into details, I'm a person of very limited resources so I don't have many assets to work with and have limited knowledge so I know I need help. Who should I consult with? Thank you so much!
Thanks great info, we held large credit card balances for years, we paid them off with a HELOC multiple times, it was a vicious cycle that we finally broke 10 years ago, we started gaining financial traction exponentially and never looked back, needless to say we pay everything possible with our credit cards now although we pay the balances off every month religiously no exceptions
Smart move, gotta be careful with those cc swipes, they creep up on you real fast.
I know exactly how much me and my wife spend on essentials. I also break up CC expenses into 15 categories that I track each month. You have to know where your money is going. Yes I’m a number geek.
Something that works for me is that I create once a quarter a balance sheet and income statement. I create these using GAAP and use them for planning. You can do anything if you have a plan. Even if do not understand accounting principles, knowing where you stand will help you plan ahead. The income statement is very illuminating. It tells me what I am spending my money on and helps me understand what I need to adjust in the future. It simply put list your revenues and expenses categorized. You would be very surprised as to how you are using your money.
I do a monthly spreadsheet for the whole year. You will be surprise if you overspend or underspend.
Can you pls address single, never married, no children retirement! Rarely is this subj approached/discussed! I'm sure that I am not the only person who fits into this category! 😂 Thank you. LOVE YOUR INFORMATION!
Retired at 59, spouse younger and has a good job $50k, I took SS at 63, got $15,000 annual income from passive side gigs that let us write off a lot, rental property brings in $7,000 annually. Debt is $40,000 @ 2.3% (I consider that good debt). Our cash flow is great. Best advice, live below your means, max out retirement and HSA savings, and create a budget.
To achieve financial independence and become successful in life, Start investing. Really spent my 30’s and 40’s working for a company which was a waste of my youthful days. Recently started investing in stocks and life feels much more easier... Invest and stay rich always!!
I wish I could like this comment a million times. I have my interests set on investing to better my life, it’s quite difficult to start up without proper guides. My question is, how best can I achieve a productive investment? Any good tips or recommendations will help a lot.
@@Erdogan432 Generally, attaining a productive investment requires experience and a higher knowledge. That’s why it’s important to have a financial consultant that would be a solid support structure while investing. I operate with (Eula Roswell digital) a professional consultant who partner with a wealth management firm. Working with her has been a promising experience so far with so much returns acquired
You can do a quick internet research with her full names mentioned above and get in touch with her.
@@Arinya671 Just checked out her page on the internet. Her work experience and qualifications are pretty impressive, I dropped a message and waiting on her reply. Thanks so much
Eula is the best in this space and I’m happy to come across these recommendations. I’ve worked with her and I can attest to her great skills and experience in financial planning and wealth creation. My biggest flex is having an expert like her guide me through making great investments, I will highly recommend her to anyone who wants to be a successful investor
A trip to Antarctica is not that expensive. I just booked one, they had a 2 for 1 special.
Getting completely out of debt before you retire makes it sooooo much easier to wait until 70 to file for your Social Security. Of course the most important part is taking very, very good care of your health so that you actually get to 70! Investing in your health, strength, and flexibility throughout your lifetime translates to $$$ in your pocket that would otherwise go to health care costs in later life. And floss! And, maybe, get off my lawn!
Me and my wife plan to retire at 60 and start collecting SS at 62. And yes, there is nothing more important than health, those millions mean absolutely nothing if you can’t spend it.
Your health is numero uno!
Hello sir, i recently ran across you channel by accident and i absolutely love the content of it. You seem so knowledgeable and i generally can't wait to see what you will talk about next. Thank you so much for sharing your endless knowledge with us.
I do have a question to ask if you don't mind? I don't believe I've heard you bring up this topic yet (in the videos I've watched) so far. Here goes....
If I'm at my full retirement age and drawing my full benefits but my wife is still working full time and not close to retirement herself, will that have any effect my on me receiving monthly benefits?
I really hope you or one of your smart viewers have the chance to read this and have the time to reply back with an answer. Thank you for your time :-)
Once you reach YOUR FRA, your benefits are NOT subject to reduction because of YOUR earnings OR your spouses. I am sure you know that by waiting to age 70, your benefits will be 24% more.
It's my third month being retired now. And life hasn't been so difficult as I thought basically because I put my head down and made ways for other source of Income. I'm a huge fan of earning more money, and I think everyone should have a side hustle. Side hustling can allow you to earn that little bit of extra money that can help you achieve your financial goals faster - whether it's paying off student loans or saving for retirement.
I've been considering buying ETFs/SCHD stocks for retirement, I have set asides $200k but somewhere along the line, I get cold feet maybe because I'm a rookie and have no idea what I'm doing, please I could really use some guideline
@@michaelkalon1025 You can buy dividend ETFs if you don't want to get into individual stocks. My favorite is SCHD. you can use a coach as well.
@@daniellecooper1302 But it's difficult to get a reliable advisors these days.
@@brendanwalsh4748 Nearly impossible however names like KAREN MARIE EMMA is exceptional. Look the name up if you need help.
@@daniellecooper1302 Interesting, thanks for sharing.
This was good easy advice to follow. One way to invest is to buy the S&P 500, open a Roth IRA, save money. Work till you have maximized your social security. If you buy stocks, you could buy ETF's like energy, health care, technology. Just a
couple of ideas.
I took SS at age 70. I am still working full time. I was laid off at abot 2000. When I got a new job, I put eliminating DEBT as my number 1 priority. I carry no CC balances. My mortgage is paid off. I put the maximum into 401k. My children have sond financial footing and are not extravagant. I'm looking at eliminating things I don't need and don't really want.
I am amazed at the number of people that do not know what their costs are every month/year. How do you ever expect to be in control if you don't know that? We love looking at our numbers and saying. We have 2 or 3 thousand more we can blow this month, what do we want to do.
When the standard fed tax deduction became higher than itemizing, I paid off my mortgage.
65, single low mortgage at 2 percent , two retirements and social security no other debt. Life is good.
50, Married, no mortgage, 3 rentals, no debt whatsoever. Love the SF Bay Area here, not the politics though. Life ain’t bad.
@@jml9550 Who are you kidding! You have 3 rentals.... you absolutely have debt.
@@Davek111 3 rentals all paid off as well, last one was in Dec. 2020. Bought these over the last 20 years span. Absolutely positively no debt.
Great video as usual but I heard a "tsk" when you mentioned REVERSE MORTGAGE. May be a good idea for a video as to why you don't like these. Also, maybe do a video on ways for retirees can generate income after retirrement.
Rule number 1 should be ZERO DEBT! That means no car payment, house payment, credit card drbt....
When it comes to things like artwork, or in my case historical documents, I know the value of what I have collected but am not considering the future worth. Having a Picasso hanging on my wall, or a letter carried by the Hindenburg, is of more value to me than what I could sell it for. It is important to know the value if you ever needed to sell but don't forget the value you get from the enjoyment of owning. My recommendation in these cases is buy what you enjoy not what will make you money.
I too have items that I enjoy that are basically collecting dust. They have monetary value if I ever need to sell them but I don't count them in my net worth.
Guns.
I had a friend who recently passed and I am executor of his estate. He collected a lot of different things with the thought that they would help fund his retirement. He died at 70, pretty much broke, and owed the IRS more than he was worth.
Owning a collection should be, as you said,for our personal enjoyment, not as a way to fund retirement.
Your heirs need to know what to do with collectibles.
I'm 66 I waited till full retirement age, I'm renting have no debt and have an Roth, IRA and stocks, high interest savings accounts, I bond. I'm still working part time, and a managed investment plan. I notice you are talking a lot with the spouse or married couple. I'm single. Best advise, thanks you, cheers...
I am far from pension but still I find these videos interesting. Would you consider though the ownership of a rare and expensive car as a long term investment? Certain brands and models are sold way more expensive than their original cost. I feel that electric vehicles will only boost that phenomenom.
Geoff, I'm thinking you were able to read my mind! 🤣 We are discussing whether to make an expensive purchase or a similar much lower cost purchase ... we are leaning toward the lower one.
Dividends from investments can provide a nice income stream. Jack Bogle had said do a 50/50 or 60/40 stock and bond split in investments and a person will be fine.
Cash is also important to have, I saw in in 2007/2008 and I see it now. Using cash reserves vs selling investments is why you want it. Yes in high inflation you lose purchasing power but 5.9% or 9.1% is much less than 15% or 21% that someone would lose by selling an investment now. Once the investments go up replenish that cash reserve.
Good point Vinny
wonderful...as always
I purchased a used electric car. Maintenance is very low and charging at home is $30 per month (2,000 miles per month). This year I changed work locations and shortened my commute by 75%. I would like to buy a Tesla but own a Nissan Leaf. The Leaf cost $13,000 to purchase.
Thanks