How $1,000,000 Can Be Enough For Retirement
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- Опубликовано: 7 июн 2023
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I think the people who should be worried are those of us who are retiring with less than a million. I have only 650k in my Roth and I don't know how to grow it.
I was in this same position a couple years ago. I was always anxious. I decided to start working with a financial advisor, and I started making a lot of monthly dividends that my anxiety disappeared.
Exactly my solution too, even though I'm not retired. As a contractor with limited time to analyze investments, I've relied on a fiduciary for the past seven years to manage my portfolio. This strategy has helped me navigate market fluctuations effectively and also increased my porfolio by up to 300%. You might consider a similar approach.
That's really great. I've tried doing some research myself to hire a financial advisor, but it's really overwhelming. Could you recommend who you work with, please?
*Sharon Lynne Hart* is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
Thank you for the recommendation. I'll send her an email and I hope I'm able to connect with her.
Retirement planning means preparing today for your future life so that you continue to meet all your goals and dreams independently.
After all, we may have very specific ideas on how you want to spend your retired life.
By planning in advance, you can define the path to achieve these life goals without any financial dependence.
After retirement, you can plan for a regular income to cover your daily expenses
Timothy Eric Meek an expert retirement planner helps if you want your current lifestyle to continue even after retirement.
Honestly, since i and an expert retirement planner like Timothy Eric Meek started working together, I don’t depend on anyone in case of any financial emergencies or medical expenses.
In my 50s, I'm focused on investments for retirement. I've heard of people generating substantial passive income, like someone who earned $200K under a year. What's the strategy for such returns?
As a regular investor, it is difficult to outperform the market. Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
My financial advisor has been a game-changer, providing clarity and boosting my confidence in navigating finance. With their help, I've achieved my goals faster than I imagined. Highly recommend!
Your advisor appears skilled. How can I contact them? I've recently sold property and aim to invest in stocks, seeking guidance.
*Jennifer Leigh Hickman* is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, a lot won’t have a house to retire with either.
I believe Opting for an investment advisor is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 45% since Q2.
Market behavior can be complex and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?
Melissa Jean Talingdan, is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you for this. I'll send her an email, and I hope I'm able to make something out of it.
My wife and I, who are 52 and 55 years old, are directors of our farm business and are beginning the process of preparing for retirement with the goal of depending on rental income. A live session to talk about online passive income strategies and reaching the $3 million goals of a comfortable retirement would be very appreciated.
The key factor is still maintaining a balance between income and expenses, regardless of whether you are generating income from investments or employment. It could be helpful to think about financial experts for a plan that fits your schedule.
I concur entirely. projected debt-free state and projected 60-year retirement with approximately 1.2 million in non-retirement money stand in stark contrast to the relatively modest growth in my retirement accounts during the previous three years. The need of an investment advisor is emphasised, and finding a reliable expert requires careful investigation.
Amazing! Are you able to provide information about your financial advisor? Investigating my choices would be helpful as I'm trying to improve my financial situation.
Vivian Carol Gioia is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just googled her 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 caII.
It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time. I retired with about $950k in my 401k.
People don't really know this, You need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.
@@IAMBETTERTHANYYOU I completely agree; I am 66 years old, recently retired, and have approximately $1,250,000 in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, i didn't achieve all this on my own, i did it with the help of a Financial advisor. Just do your due diligence to identify a fiduciary one and the rest is history.
@@sommersalt88 this is exactly how i wish to get my finances coordinated ahead or retirement. Can you recommend the financial advisor you used to get ahead?
Do your due diligence, and be on the lookout for one with strategies to help your portfolio maintain an unwavering and progressive growth. "Jill Marie Carroll" is responsible for my portfolio success, and I believe she has the qualifications & expertise to meet your goals.
@@sommersalt88 This is useful information; I copied her full name and pasted it into my browser; her website popped up immediately and her qualifications are excellent; thanks for sharing.
4:35 10% withdrawal rate anually??? Thats wayyyyyy too high! You receive a return of 10%, not to live off 10% of your assets. Otherwise you become a struggling retiree. You dont want that.
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 parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $31k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
@@GGGsanchez6334 I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same.
@@GGGsanchez6334 I might have heard this name somewhere, but can't really recall. I'll be following her up. Thank you. Do you know if she manages family funds too?
10% withdrawal rate is wayyy too much
Then do 8 or less. Did you not listen to him?!
4% makes more sense IRL
@@stevengtv it's going to need to be 5%. Every financial manager who runs the mutual funds that Ramsey says to buy says 5%
@@stevengtv yes, even 8% is too much. 4%-5% max
@@RobGoldy 100% agreed
Acquiring a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $160K for some time now, but my major challenge is not knowing the best entry and exit strategies. I would greatly appreciate any suggestions.
Buy a low cost, world, cap weighted index fund (NOT mutual) contribute monthly and never think about it again
Mind if I ask you to recommend this particular coach you using their service?
Just invest in a Mutual fund that primarily invests in the DOW or NASDAQ.
I would recommend PFLT, if you want a stable stock with a 10% dividend. The price is pretty much unchanged since 2011.
Recently retired and unsure if my 401(k) and IRA will provide a stable future. i need an approach that will align with my risk tolerance and financial goals, i set aside $1m to achieve this. Do you suggest i get into stocks or buy a rental property?
Research the list of dividend aristocrats and select six to ten companies from it. These are firms with a proven track record of paying dividends for 25 years or more. Additionally, it's recommended to consult a financial advisor to assist in establishing a robust and well-balanced portfolio.
Exactly, a good number of people discredit the effectiveness of financial advisor, but over the past 10years, I’ve had a financial advisor consistently restructure and diversify my portfolio/expenses and I’ve made over $3million in gains… might not be a lot but i'm financially secure and that's fine by me.
Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch if you don't mind
Sonya lee Mitchell is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
Inspiring video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get 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
@keanureeves316 However, if you do not have access to a professional like JUDITH ANN PEACE, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments..
@keanureeves316 Judith Ann peace is her name
Lookup with her name on the webpage
@keanureeves316 You are welcome .
The market crash and high inflation are stressing me about retirement. Despite the challenges, I know investing is a long-term game, so I'm staying focused on the future.
I'm nearing retirement in three years, and despite having solid companies in my portfolio, my profits have stagnated in this uncertain market. Are there any calculated profit opportunities in this recession?
Generating substantial profits, particularly in a bear market, involves employing intricate strategies that are best executed by seasoned market experts.
I agree. Despite early setbacks and losses in the market, I re-entered in February 2021 with guidance from a recommended investment advisor. Fast forward two years, and I've gained over $720k in profits.
Wow, that's impressive! Could you provide more details?
@@antonnohr Certainly! Everything unfolded under 2 years following Stacey Lee Decker’s guidance. I began with just under $150,000 and now I'm only about $45,000 away from reaching a-million dollars.
People grappling with the difficulty of meeting essential expenses often encounter this situation due to inadequate savings during their working years. The decisions taken in readiness for retirement carry extensive consequences, as demonstrated within my own family dynamics. Despite my wife and i having equal tenure in civil service, differing investment approaches yielded disparate results. Guided by a financial advisor, We are both retired and still earn monthly from our investments.
Indeed, that's accurate. I'm currently in my mid-50s. My husband and I were on a similar path until a couple of years ago when I decided to shift my investments to his wealth manager. While I haven't quite caught up to his accumulated profits over the years, I'm at least earning more now. I'm generating income even before retirement, and my retirement fund has experienced remarkable growth compared to what it would have with just the 401(k). It's quite amusing.
It's regrettable that many individuals lack access to such insights. I understand why people might become anxious. Insufficient information can indeed pose significant challenges. Personally, I've been able to generate over $25k passively simply by investing through an advisor, and the best part is, I don't need to exert much effort. Regardless of economic fluctuations, skilled wealth managers consistently deliver returns.
Could you guide me on how to get in touch with your advisor? My funds are being eroded by inflation, and I'm seeking a more lucrative investment strategy to effectively utilize them.
"Gertrude Margaret Quinto" is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment
Insightful... I was curious about her, so I looked her up online. I discovered her website, and I must say that she seems knowledgeable. I sent her an email outlining my goals. I appreciate you sharing.
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.
@@Curbalnk 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.
@@Shultz4334 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.
@@Shultz4334 Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
If you've been retired for 5 years, then why are still investing your funds trying to make more money? Don't you have enough money to last you all throughout your retirement already? You don't want to get too greedy! Once a person is retired, they should want to keep as much gain as they possibly can, without remaining in high-risk portfolios, and taking a risk of losing large sums of money. You want to keep the money that you've saved all those many years, not lose it because in your retirement is when you are going to need it the most. If you have well over enough money for retirement, you shouldn't have to invest anymore. A person doesn't need to be filthy rich, with multi-millions and billions of dollars to retire, especially if you don't have any outstanding debts. If your house is paid for, you're living on easy street! Spend your money that you've worked hard for, enjoy the rest of your life with what you have and be happy because, you're not going to live forever, and you can't take it with you.
I think a big part of it is if you retire without a mortgage and car payments, that definitely helps.
That plus collect social security benefits at full retirement age or later.
Jade made an error here. You dont live off the 10% of your assets you get a return of 10%. You live off less than thst which most advisors say should be about 4% so you never actually take from the principal.
She didn't make a mistake. This is what they actually advise. It's terrible advice.
She still new, a rookie. I'm glad she's here to help. She'll get better under Dave's leadership 👍🏽
1:20 They actually say they’re talking about living off the interest. You must have missed it by mistake.
@@jesusbowls weird that you’re on this feed for people you think have terrible advice.. with that said you’re incorrect. The OP mistakenly missed the part where they specify living off the interest accrual at 1:20
@@iamthomasgreenman Right, this is also bad advice. In a stock portfolio, what is the "interest"? If dividends, then you're looking at 2-3%. If total return, then there will be years where the market is down and you can take out nothing.
This is insane. If you spend 10% of your retirement each year you will run out of money
It's supposed to be 3-4%. 10% will drain everything.
not in the hypothetical that the 10% you spend is the interest you make every year.
Its not spending the actual retirement, but the interest it creates.
@@crashtestdummy1972 Some years it’s negative interest, that’s why 4% is the generally accepted withdrawal rate. 3% if you retire early.
depends on how long you are going to live.
We're going to use the 4% rule, so hoping to aquire $2 million to live on $80k a year..10-12% is a bit optimistic
Would be careful with that strategy it’s only based on a 30 year timeline
Difficult to project health care needs in future. Someone gets cancer, you can wipe out most of your projections.
I really wish they would dive into a deeper discussion on this topic but include the reality of medical as we get older. Medical is just unbelievably, outrageously expensive.
@@unclebenny That is why you need health insurance
@@unclebenny I wholeheartedly agree with you. it’s not if, it’s when we get clobbered with medical because we all get sick.
My parents retired about 7 years ago with about $500,000. They left the crazy high cost state of CA and moved to SC. My Dad always told me the key to a secure retirement is to retire with ZERO debt, including NO MORTGAGE. When you have no debt and no mortgage your retirement will truly be the "golden years" per my Dad. Looking at my folks current situation I now know how right my Dad was! Their mo. income is about $5,000 which includes SS, dividends and a small pension. Think about this. If you had no debt how far would $5k/mo. go for you? With my folks income their $500K is essentially an emergency fund that keeps growing every year (yes, that will be my inheritance some day and will likely be well south of 7 figures). They have never had to withdraw a penny! Do they enjoy retirement? They take several week-long trips every year, they eat out when ever they want, they drive a nice can and live in a beautiful new home, etc., so yes, they have an amazing retirement. BTW, one important decision they made was to leave CA! My Dad is a smart dude! My Dad laughs when I tell him everyone on RUclips says you need a $1M or more to retire. The bottom line is to have NO DEBT and enough income to never have to rely on your savings and investments!
Please don’t withdraw 10% annually Why? 4:35 it won’t last forever this way
@Bart Jenkins But Dave said 10% and he will NEVER admit when he is wrong. So 10% it is.
For many years, bonds or other fixed-income assets could produce the yield needed to provide solid income for retirement needs, Recently my $2m holdings have been fluctuating 8% up and 20% down. I want to know; Hold on or sell off my positions and hold cash ahead of retirement?
Consider hiring financial advisors, estate planners or tax experts. They can provide specialized knowledge and help you navigate complex financial decisions in such as retirement planning
Agreed. It's always wise to be proactive and consider diversifying our investments to manage risks in uncertain economic times. I delegate my day-to-day investing to an advisor ever since suffering a major steep-down late 2019, amid rona-outbreak, and as of today, I'm semi-retired with barely 25% short of my $1m retirement goal after subsequent investments.
my partner’s been considering going the same route, could you share more info please on the advisor that guided you to such impressive gains
I started out with a financial advisor called " Monica Selena Park ". Her honest approach gives me complete ownership and control of my positions, and her rates are incredibly affordable given my ROI. I'd suggest you look her up and let me know what you think.
Thanks for this tip, found her just after inputting her full name on my browser, no-sweat.. she seems impeccable!
Studies show that you are better off taking 4%-6% annually. Anything more than that increases risk. So, 4%-6% combined with social security should be more than enough.
There won't be SS by the time we retire 😂😂
@@r3lativ3lyd3lib3r8 I was talking about right now, but yeah we are probably gonna be SOL 😂
@@r3lativ3lyd3lib3r8
If you think that prepare for it.
I decided in high school to plan for retirement without social security and pension. Was my dad idea since I wanted to retire before 50 anyway.
Now SS and two pensions is gravy and part of retirement income. Even though my pension was frozen and cut in half years ago I’m looking forward to additional $7k a month.
I’m 28…. Social Security will be there it will just be half what it is now 😅 politicians can’t afford to get rid of it or people won’t vote for them. Although if they said “everyone under 35, sorry you get no benefit and no money back, but we will never take money for SS again”- I would be happy about that.
@@Zombiebeast1995I'd plan for a 25% cut. That's basically the worst of the more plausible scenarios. I think it'll be less bad, but still cut in some manner. It's too popular amongst the electorate to get actually axed.
My real struggle is that in some markets (like the one I live in), the property taxes and insurance that remain even after your house is paid off continue to climb and it still feels like you have a never-ending house payment. In our area, this is roughly $500/mo and continues to climb, year over year. Having a paid off home is great but not necessarily all it is made out to be.
750 here. And that's up at least 50% in the last 6 years. It's completely nuts.
600 per month here for me in South Florida. It's scary how fast it keeps rising.
That's why paying off low interest mortgages is dumb. Let inflation eat away at the principal
$6K a year is nothing, why are you worried about that? Even $30K a year is nothing when you're retired as long as you have saved your entire life. Obtaining $1 million in 40 years of just ROTH IRA contributions is not hard.
This is why retirees move away from these high cost areas. Think of it as a subscription, like to cable TV. Those high tax areas offer all kinds of services, especially good schools, parks, forest preserves and libraries. If you are not using those, why are you subscribed? No kids in school yet you're supporting a lavish school system? Got endless parks but you never go to them? It's like the 200 channel cable package yet you only watch four channels. You are paying for a bunch of stuff you don't use. Cancel your subscription and move somewhere cheap. But leave your leftist socialist blue politics behind. We left the Chicago western suburbs where we were paying $7K in taxes on a $250K house. Moved to NC, for the exact same $250K we bought a bigger house on exactly 4x the land and our taxes dropped to $2100. That prior house is now worth about $380K and the taxes are $8K. Current house is worth $425K+ and the taxes are $2100. Taxes alone gave us a hefty pay increase, plus our house is appreciating faster.
Is 1 million enough? YES! Is 8-10% withdrawal rate recommended under any circumstances? No! Please don't do that.
Dave always cites his studies when it helps his claim that literally every millionaire is a teacher, accountant, or engineer yet won't look at the studies done over Safe Withdrawal Rates.
He's never said literally ever millionaire is one of those.
@@calebmelton5989 Not literally, but he does play that up.
what can I do? I have been disabled since 2009 and I am 58 years old at the verge of retirement. My portfoliio of $750k is down to $492k, How can I profit from the present market" , I mean I've heard of people making upto $250k in couple weeks during this crash and I'd like to know how.
The market is volatile at this time, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
Very true , I diversified my $400K portfolio across multiple market with the aid of an investment advisor, I have been able to generate over $900k in net profit across high dividend yield stocks, ETF and bonds in few months.
wow ,that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.
I really don't like making such recommendations, because everybody's situation is unique. But there are many freelance wealth managers you could check out. I have been working with "KATHRYN ALETHE HALL" for about four years now, and she's really, really good. If she meets your discretion, then you could go ahead with her. I endorse her.
I just looked up "Kathryn Alethe Hall" online and researched her accreditation. She seem very proficient, I wrote her detailing my Fin-market goals and scheduled a call.
Folks also need to keep in mind their expected Social Security checks which currently average $1800 for workers. That's $21,600 for a single, $43,200 for a couple and most it is tax free. That helps jump start the budget revenues needs.
You can retire on a lot less than $1 million. The key thing to know is how much are your expenses as best as possible. That allows you to determine when to retire, when to take social security, and answer other retirement questions.
You'd probably downsize your living situation if you retire on less than 1 million, or you'd need your house paid off by then (which Ramseyists should all do, but most of the population won't).
People on the cusp of retirement better act quickly given Social Security is considering raising the minimum age to 67 in order to receive it.
@@thebastardgift If raising minimum to 67 is good then 80 would be even better right? OMG!
@@Sky1, it is what it is so declares ugly math. Going forward the minimum age will continue to be raised and the amount received lowered but given most people cannot afford to buy a home thus forced to rent therefore never able to control their largest living expense, housing, they will also never be able to retire.
Please don’t think poverty level 1 million isn’t a lot now days. No offense but are u the type to think 100k is a lot of money?
Biggest way to make a million go farther? Move out of high areas and retire to low cost areas. We live on the gulf coast of Mississippi. I promise you we are living pretty well on retirement returns that would have us at the food bank in a lot of places in California.
What part of the Gulf Coast?
@@hello9945 Bay St. Louis, MS. The worst thing is, we keep coming in first or second in every retirement magazine talking about the best small coastal towns to retire in.
Look at this example. Say you are a Los Angeles County Deputy Sheriff making $250,000 a year, and your retirement is 50 per cent of that. Now, you are going to be pinching pennies to make it on $125,000 in Los Angeles. But, you would live quite well anywhere on the Mississippi Gulf Coast on that. And, probably a lot of other places as well.
Dave would rather you choose Roth to give your retirement income to California and New York
bingo ... every time i hear someone say they need a million dollars or more to retire , i think to myself they need to sell their expensive house and move some where cheaper ...our combined SS will be about 3K per month and we are debt free and already live on less than that and were still working ...plus we have our investments
At this point, if you don’t always have an income, you are in for trouble. Things change too much, too often now
I agree
our country hasn't been a fiat currency all that long. The reality of a fiat currency is that it's a house built on shifting sand. They just print more when they run low.
@@MrPeach1 scary stuff
Started creating my own sources of retirement income in my teens.
Having an “income” (I think you mean a job) actually has a lot of risk too, you are expecting that company to make it and keep you, if you invest you are betting that a bunch of companies, 4000+ just in the US, will make it. I’m not say quite your job, but investing is much safer in the long run than just working. One day you won’t be able to work, but your money doesn’t get tired. And if all fails, then nothing matters anyway. Hopefully you have water and food
Average in 20 to 30 years....yes! but not before....the average between 1 to 10 years in stock gains are 5 to 7 % - minus capital gain tax - minus inflation!
I’m 51 with no debt with about 300k in investments. I’m no where near a million lol I’m not sure I will get there but I’m trying
I'm 51 also. Keep maxing your investments if you can. The compounding is excellent the more your balance rises. To compare I have about $578k in 401k. About $35k in my TD Ameritrade account. And about $80k in crypto. Just keep investing. That balance will rise. Good luck.
With an average return on investment, your investments should double about every 7 years so I think you're right on track to retire at 65 if you want with 1.2 mil.
@@Jumpman67 true but that's for stock investing. Most people close to retirement have only 30% or so of their portfolio in stocks (which in the current government spending environment I would say is a huge mistake)
@@Westcoastguythat's good, and did you saved a lot each month or it was based on market returns?
@@Jumpman67 I hope so
Assuming a 11.8% annual return is unrealistic. Past performance is no indication of future results. Your portfolio should grow in value similar to the growth rate of the US economy. Not even optimistic pension funds project a 12% return.
I agree, as a trader, if I could get a guaranteed 12% return I would put all my money there and all it a day.
It seems the 10 year S&P500 return is 9.6%, but who knows if that will continue. You won't really beat that return with anything over the long term and stay diversified.
I’m worth about 2 million…no debt…own my home…healthy…..62 years old. Portfolio well balanced in mostly stable funds, non-aggressive…..my biggest worry is to make sure I have enough to pay for any medical/home care/nursing care, etc. as I didn’t have children.
Anyone who expects to get 10% returns each year is deluding themselves. That 10% is an average over decades. The moment you retire and depend on that money, I will 100% guarantee you, the market will drop and you will see negative to 2% returns for years. Your little timeline is what matters. You CANNOT have money in the market when you retire. It must be in a stable, income producing fund which will probably net you 2-3% per year with zero risk. Sure, you can put a little money in the market for growth and playtime. But don't put your whole $1M+ in there. You'll be greeting at Walmart to make ends meet.
I am thinking a South American Llama farm!
Actually, you typically need to have at least 50% in stocks if you want the money to last. Fixed income gets ravaged by inflation over time. Bond returns have trailed inflation most of the last 15 years.
Sequence of returns matter. If you retire at the start of a multi-year bear market and your portfolio declines say 50%, 8% annual withdrawal will kill your nest egg.
When I retired in 2012 I thought $1.5 million would be enough, I could pay my bills and continue to grow my savings, $1.5 million wasn't enough, need to increase my investment base to $2.5 million. I retired in 2012. In 2012 my monthly expenses (rent, food, utilities, insurance) was $1600 a month and now that exact same lifestyle, no debt, same apartment, same paid off truck, same monthly bills (rent, food, utilities, insurance) cost $3000 a month. $1600 a month rising 6% a year for 11 years = $3027, so average real inflation for last 11 years was 6%. Everybody planning for retirement needs to plan on 6% annual expense increases just to stay even.
Yes, this is so true. The bad thing is I think things are getting worse as USA becomes more of a country which wants to give all its money away and where everyone doesn't work and is getting government money. Where everyone with a job seems to work for the government and gets insane pensions and pay.
That all gets paid by inflation and we could be looking at 10% going forward.
dave said tic tac lol. you go dave!
1 million is way more than most are ever gonna get too!
*to
These guys are scary. If you bank on 12% it’s pure risk in retirement.
I'm a financial advisor and thought the same thing. There are definitely safe ways to get 12% return
Should probably use a 4% rate of return instead of 10%
You'd have to try really hard to only get 4%
4% withdrawal*
@@austinduke8876 You limit it to 4% to negate the sequence of return risk.
@@austinduke8876 You take out 4% so that it continues growing over time instead of taking out all of the money
@@RobGoldy You said rate of return, not withdrawl.
If you pull 4% out annually of a $1m retirement nest egg and then couple this with social security of one or two people. You could probably live a nice retirement on around $80k a year. If you have a paid for house it would be even better. This is a good goal.
I love you guys but an average RoR @ 10%? That's a bit lofty but I'll take it since I usually factor in 5%.
Truth be told, even 400-500k can be enough! Dependent where you live and if you have a paid off home.
$1 millionaire is MORE than enough for retirement, even early retirement in your 40s! Consider most retirees have less than $200k saved in retirement and the average check is around $1800 per month. Don't be fooled.
I keep 250k in a HYSA and the rest in mutual funds. I live off the HYSA which yield a return of 5%, and when the market is up, I refill the savings account. When the market is down, I live off of the savings account which will last me 7 years at 40k a year.
our dollar is losing purchase power so fast no one is ever going to feel like they can retire.
I wouldn't say "no one".
Retired debt free at 49 in 2020. No issues. More into planning and being proactive than feelings.
Not concerned about purchasing power or inflation. It's not like I need to buy a home or new car every year,raise kids,pay alimony/child support,buy junk,shopaholic,etc....and no reason to get in debt.
Past 18 months I was in New Zealand/Cooks for a few weeks,all summer in Switzerland(visited UK,Germany,Austria,Italy,and France),several trips to Florida through the year,month of October and February in Brazil,and Twice to Hawaii.... but I fly free globally on American any class and 90% discount on other domestic and foreign airlines.
Heck I fill the tank of my car every 12-18 months.
Because of well stocked pantry and deep freezer I spent about $600 for groceries last year.
My Roth 401k and Roth/pretax rollover IRAs close to two million.
Had to drop my annual income from $90k to $45k last year because it was more than needed.
Managed to pay zero taxes for 2021 and 2022.
@@blackworldtraveler3711 I get it. fixed income sucks.
@@MrPeach1
Wouldn't know. Only debt I ever had was nine year mortgage.
Just like when I was working at $160k/yr I only needed $2k a month to live on being debt free and home paid off in 2008.
Now at early retirement it's much better to adjust my income range anyway I want as needed between $35k/yr to $130k/yr and stay in 0-12% tax bracket and below IRMAA without my 401k and rollover IRAs. Too young to use them anyway.
Have 15 years before I even qualify for social security. No hurry.
I believe we have reached the point seeing people die on the job because they can't afford to retire will be common.
@@thebastardgift it has more to do with them not planning for retirement than anything else. We started learning and planning for Retirement at age 18, couldn’t really implement much of that knowledge till 24 though and are on track to have $2.2 million + by age 57, with a 30% pension on top of that and SS on top of that later on. When I run my retirement plans I don’t even include the pension or SS, just to be safe.
Retire in the Philippines. Your money goes 3-4 times. You’ll have to give up a few luxuries but the trade offs can be life changing in a good way.
These days it looks more luxurious than the west, with their simpler and more balanced ways of living
How come when it comes to debt the Ramsey show assumes that the general audience are people who can't handle a credit card but when it comes to investments and retirement the general audience all has no debt and 12% annual returns?
Two separate audiences, and they encourage the first group that can't handle a credit card to get those debts paid off before they become the second group that can start investing.
I haven't found any funds that pay out a 12% annual return. Most of mine is around 8%. I used one of his ELP advisors that he recommend for a while until I figured out he (Dave) got a kickback for the on-air recommendation and the advisor is paid on commissions from the mutual fund. The best I got with one of his ELP advisors is about 7% return with American Funds. I am now doing it all on my own with Vanguard and quite happy with no commissions and kickbacks.
@@digitalpacs 8% is much more realistic
What the "average" has been for inflation and/or stock market over the last "75 years" doesn't factor in when you're 65 now, retiring and depend on what the "averages" will be for the NEXT 20+ years GOING FORWARD. A 65 year old retiree cannot rely on past averages if they want to live off their savings/investments dividend producing income NOW and 20+ years into the future. What happens NOW and the next 20+ years going forward is basically an unknown. I can't rely on the "past 75 years" when I'm looking 20+ years into the future and worried if the principal will be used and drawn down and ultimately run out during retirement.
If one million isnt enough to live off with 0 debt, something is a bit off. My wife and i make over 240k a year and we live off of 50k a year.
Will most retire with no debt? What % of US earn $240K? Can most live off 20% of their income?
@Benjamin Hill it holds true no matter what bracket. If you are 18 years old and make 40k a year at McDonald's, you live off 20k with parents or family. If you're 30 and make 100k, don't buy a BMW and live off 40k. These days, people would rather look rich instead of actually being rich. Do you think we made 240k our whole lives? No. We sacrificed a lot when younger, and I have no pity for the people who complain about being broke when they are driving in the Mercedes and wearing Gucci.
Hit the nail on the head.
It isn't the retiring on a million. Its 1 million with no debt
@@unclebenny You must be new to Dave Ramsey if you are questioning his listeners having debt
@@jloop_2008 I agree, but the advice is like a training plan for an elite athlete when most are weekend warriors.
If you are debt free and have a low cost of living to make you happy…you can retire on less.
Live off the eggs and not the chicken that laid them.
Why did the chicken cross the road? To show a 'possum it could be done (armadillo) if you are in Texas.
If someone followed this advice in 2000, they’d run out of all of their money by 2011. Those math people know what they’re talking about.
Not if you die one day after you retire!
Dave’s video talks about living on the interest; he doesn’t advocate touching the principle.
@@andreawales1938 he says take out 8% out then adjust for inflation (4%) each year. That’s 8% on the starting amount. Obviously if you take only interest out, you’re fine. But nobody does that. What about in a -30% year, what interest is there???? He’s saying you start with 8% much like the 4% rule and then adjust for inflation each year. So on $1,000,000, you’d get 80,000 in the first year and year 2 if inflation is 3%, you’d take $82,400 no matter what. Doesn’t matter if your portfolio has dropped by 30% to $700,000, you’re still taking over $80,000 out which is now almost 12% of your portfolio. Math is math and Dave likes to think volatility doesn’t exist.
Should we not use the same time frame to compare inflation and stock returns ??? It seems that one affects the other which would indicate we should ...
Great perspective, thanks. (how about placing a sticker over the apple & yeti logos...unless they are paying you. I know I don't advertise for free.)
If you have to ask yourself if it’s enough it ain’t enough. A million to someone in the Midwest is a rich retirement
Id shoot for a lower withdrawl rate....easier to do if you have more cone retirement time. 4% or 5% is a good withdrawl rate.
More like 3-4%.
@mplslawnguy3389 yea maybe at start eventually I'd shift to 7%+ cause why not you can't take it with you.
@@tristan2332 That's true, but end of life care can last for years and can bankrupt people. I'd rather not be a burden on my family. I don't want to spend it all, I want to leave something behind for my loved ones.
@@mplslawnguy3389 Depends on what your avg investment return is if 10% and you stay under that principle should be fine.
Well, that’s three or four times more than I’m gonna have when I retire so I would be thrilled with that.
Sequence of returns. Firecalc has a calculator that goes back to the beginning of the New York Stock Exchange. If you withdraw 7% for a 25 year retirement your odds of your money surviving you is 49.2%. Failure over half the time is not what I picture for a happy retirement.
Exactly, a lot of folks are now recommending 3%. For years 4% was sort of the standard withdrawal rate, but with rising costs and longer lives, folks may want to consider a more conservative 3%.
Here is the thing: While the average returns for 75 years have been 12%, how does that in any way guarantee that will be the average in the next 75? If the pandemic proved one thing, it's that our society is quite fragile and even volatile, and the amount of rapid change that occurs in no way guarantees this type of growth.
Your spot on.......the way the world was for those 75 yrs is NOT what the world has been hell in the last 4 yrs!
Civil war and subsequent invasion by China in the next 20 years is a possibility
you asume it gets 10% Dave thats best it gets in ETF and mutuals you know that these crazy times i wouldnt bet on over 4 to 5
Where are you going to get 10% interest?
I can't live with an "average" rate of return over 50 years. The years you have a lower ROI you would be pulling the principal and you would make less the next year in return. The super high return years make this hard to plan on avarages. Take all years that had say over 15 20% ROI and then run the avarages over the history.
Where do you get 10 percent off principle ?savings accounts?
What this doesn't take into account is that people closer to retirement and in retirement often have more conservative investments that earn less because they can't weather volitility.
Averaging 10% per year? Most financial advisors use 4%. This is why I started my channel. Also, you need to plan for unexpected health problems and possible need for long term care. LTC can be $5,000 -$8,000 per month. So, they are saying a retired person should be 100% invested in the stock market all the time?
Ever heard of sequence of returns risk?
No debt in the world and $50,000 a year for life would be enough for me. It depends on what that $1.5m is just the cash. Hopefully you have a paid off house in addition to that
What if you gain minus 50% and planed on living off 8%?
Now you suddenly sell 16% of your portfolio per year...
A few questions. What if the market goes down the first two years of retirement? Example, a 20% decline in portfolio plus 8%, then your $1M after one year, is down to around $720K. Dave, I love your show and you are the best at getting people out of debt but not sure about your investment advice. Not trying to be a problem, however, just because you disagree with someone doesn’t make them an idiot or moron. If I start at 4% in early years, I can always draw more; if the other way around, I’m is trouble
Got to treat it like a drawdown over time
On avg he beats the s&p almost every year lol
At age 56 with monthly expenses around $8,000 and 4% inflation, that would mean by age 85, Tony's monthly expenses will be north of $25,000! Yikes! Those investments better keep pace with historical returns!
Dave is so stubborn. Everyone knows a 10% withdrawal rate is way too high for the vast majority of people, especially someone retiring at 56.
Then you have social security which should be icing on the cake but not the whole cake.
Our social security (mine and my wife's isn't even half of our current retirement income flow (it's actually closer to about 2/5's of income). I would hate to be trying to live off just our social security.
Which won’t exist much longer
@@juniperfall yup, it's going bankrupt by 2025
@@juniperfallThey been claiming that for 25 years. Social Security is fine.
@@juniperfall it wil never go away , because the govt. will never stop taking 12.4% from everyones paychecks ... and poor people would riot...theyll just raise the tax .25 or .5% (double that with the employer match) on working people and be good for another 50 years like theyve always done...its a simple fix and the only option , besides raising the age to get it , which theyve also done before...low income people are the main ones who need it and benefit from it ...thats why you get 90% of the first $1,115 of youre average monthly income over your career , but then only 32% of the next $5,606 of your average monthly income above the initial $1,115....if you never made much , SS seems like the lottery
What about sequence of return risk???
Nobody is drawing down (or making) 10% in retirement.
I can't believe this clip exists. It really makes these two look terrible.
I love how people have real financial questions and they’re asking radio hosts. Would you go to a barber for surgery?
Barbers were often the surgeons in the west. We survived just fine then. Any they were much cheaper.
I would ask a multi millionaire who helps his employees make millions yeah 🤷♀️
His investment advice is very dangerous and Jade is clueless.
It’s just not going to be 10%….more like 7-8…last year was down…..buy real estate too and hedge your bets
If you were healthy and no expenses besides bills and leisure then it will last longer,if you were sick and confine in nursing home it will last only 2-3max more or less before you became medicaid. Believe me I’ve seen a lot in my years of work..people losing money in healthcare expenses because they don’t care enough about their health. 10k per month is the highest to less than 6k a month if you were lucky to have private room for while till you combined to another patient in a small room. Health is wealth whether you have money or none it is impeccable to be healthy or else you were doomed and most people do not prepared for it.
No wonder why a lot of people stop chasing life and just enjoy while they can..because end of day we were all same in a box when we get sick.
It definitely can. I set up a retirement trust fund when I was 13 years old. Every 10 years it doubles and when I turn 60, it will be 1,000,000 dollars.
clean rational thought. every time. Love the Ramsey team.
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"assuming the American economy continues to do what it has done over the last 80 years" *
*Past performance is no guarantee of future results. Please read the PDS for more information.
What is the probability of average to low inflation for the next 20 years given the current debt level and way US government spends money?
Please tell me where you are getting 10% interest? $1,400,000 = $140,000 Never Going To Happen 😮
5% is more realistic.
Do not withdraw 10 percent for the love of God. Please please please only live off 3-4%
If you're over 70, 5% is fine.
Those percentages do not take into account the $$ lost in the market today. If your one million lost, then you are not earning 10% on a million for, let's say, 2 years. Makes a difference.
Not many people at all
Make a 10% return in retirement because there normally in a 60/40 portfolio or 50/50. Not many retirees invest aggressively in retirement because all it take is one big dip u can lose 30% or more real quick
But what are you supposed to do the years the market loses money?
4-5% is advisable. Me, I'd add a side hustle or PT job to fight boredom
So I should put all my money in the stock market and possibly lose 80% of moneys in a one day crash? Great advice.
The average dividend yield is 2%. Where are you getting this 10% from?
Wow, that is EXTREMLY dangerous advice!
Withdrawing 4% historically only ensured money for 30 years.
This number goes down exponentially with a 5 and 6% withdraw.
At 10% you would be broke in less than a decade!
Can someone explain something. If the dividend yield isn't 10% annually, in order to live on 10% estimated annual investing returns, I will have to sell (appreciated) stock....at some point I will end up with no stocks? How can you perpetually live on this?
10% is insane. Do not listen to these people. That's wrong. Investing isn't this show's bread and butter. Horrible advice.
Well easy if you can find a 10% ror
Isn’t it risky to be all in stocks at retirement?
No legit CFP will assume 12% rate of return on retirement investments.
Dave…sequence of returns risk…read!
But FEDs RMD at 70 1/2 will change what we work hard and plan.