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@user-0j27M_JSs dude no... they are clearly bots the ones referred to. And it's either 2 to 4 of them or sometimes a crazy amount upwards of 30. Always promoting a fake FA that will steal your money.
Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?
Agreed, the role of advisors can only be overlooked, but not denied. I remember in early 2020, during covid-outbreak, my portfolio worth around 300k took a slight fall, apparently due to the pandemic crash, at once I consulted an advisor in order to avoid panic-selling. As of today, my account has yielded big fat yields, and leverages on 7-figure, only cos I delegate my excesses right.
@@Jeffcraparo this is huge! mind if I look up the adviser that guides you please? only invest in my 401k through my employer for now, but enthused about diversifying my investments for a prosperous financial future
One of the most well-known people in her field is my CFA, Annette Marie Holt. I advise doing more study on her qualifications. She is a great resource for anybody trying to understand the financial industry because of her many years of expertise.
very much appreciated, your response suggests a person of benevolence.. just inputted her full name on my browser, and came across her site, top-notch qualifications! she seems well-qualified
I’m worried about retirement planning and I want to ensure a comfortable future. I’ve worked hard my entire life and I want to enjoy the fruits of my labor without financial stress. I’m really concerned about whether I’ve saved enough and invested wisely.
I'm at that level, $6.6M plus home (total about $7.4M). Single, 56, never married, no kids. I embarked on an education and career path designed to support having a wife and kids in a VHCOL area, but they never materialized. (But if they had, I'm pretty confident I'd be divorced.) So, here I am, still making bank, but I'm bailing out in a few months. I decided that in the absence of having the 1950s idealized wife, kids, picket fence, etc. I might as well go have some adventures and fun before I no longer can. Selling/donating everything, and I'm off to travel the world, solo. I'm going to fully convert my pre-tax over the subsequent 6 years (57-63). I'm going to shelter blocks of funds simultaneously, deferring taxable dividends/interest, and take Social Security a bit early, allowing me to dodge IRMAA.
@@milesb4231They will materialize but see if it diminishes when ha asks her to sign a prenup,if she doesn’t sign he needs to pull the plug, which I hope he does.
Yours is an interesting situation. I live in the SF Bay area as a software engineer, however I work in the government so my salary is respectable but much less than if I worked in the private sector (however I will receive a generous pension). When I retire in 3 years I look forward to becoming proficient in outdoor rock climbing, hiking the PCT, and more backpacking trips to Yosemite and Peru/South America by myself and with my 3 young adult kids. I'm curious what is your career and which area of the country do you live in and why so confident you would have ended up in a divorce. Are you also a software engineer? I've seen many brilliant engineers that appeared to be on the autism spectrum here in the SF Bay Area.
I have 1.5 million and only invest in tbills. Wife and I just added SS to our monthly income. We go on 3 cruises a year and pay all our bills without ever touching our 1.5. I also said what the hell is this guy doing.
Almost anyone who has retired in the past 50 years has been able to live on 6%+ of their total investable assets annually, but the standard 4% recommendation is based on the last 100 years of returns. People who retired in the 60s who spent 3.5% - 4% annually would have had $0 in investable assets after 30 years. Stock prices today are so high compared to earnings that it wouldn't be that surprising to see the market barely keep up with inflation over the next 30 years. As someone in my 40s I sure hope that doesn't happen though.
@@kyleolson9636 for someone not aware of the 25x or 4% rule of thumb… technically, trinity study was: 100% chance of funds lasting 30 years. But likely to last much much longer, only a small % would run out year 31. Invested in: 50% bonds, 50% SP500, rebalanced every year. Withdrawal: 4% first year. But the dollar amount is adjusted by inflation every year. It’s not 4% every year.
The video starts with 6 mil and somehow they are going to be in a low tax bracket for a few years. Do they put all of that in zero yielding investments with no cash flow? You have to be kidding.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks.
@@ClarieZwiehoff Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY*..
Nobody is asking the right questions. I'm worried about retirement and want to maximize my savings. I've tried various investments that didn't work out as I hoped, and now I'm unsure whether to invest in the stock market or index. Any recommendations would be appreciated.
The rich stays rich by spending like the poor and investing without stopping then the poor stays poor by spending like the rich yet not investiing like the rich
Same age, net worth at $6M , gross income $425K/yr. Never had a financial advisor…listened to several and most have book knowledge and very little money-making life experience.
Yes, and the government is going to love taxing (even with a marginal tax system) that 300k. Still, the money leftover would be more than enough for most people in retirement. 😊
@@gwarlowany income is taxed. Money made is money made. Don’t worry about taxes because they aren’t going anywhere. I’d rather get taxed on $300k vs $100k
@@Miguel_161agreed. A wealthy couple told me people fixate on how much the govt made. The govt has rigged the game. The money literally has their name on it so they’re going to win by design. But if you paid a boat-load in taxes, you’ll be depositing a yacht-load in the bank… A high tax bill is a sign that you earned a killing. Sure defer taxes and work the system but don’t fixate on avoiding taxes. Trying to avoid paying taxes (either upfront or on the back end) is futile.
@@niktak1114 what are you doing to spend all $300k a year? At that point, the house is paid for. If you live on the $100k, save $100k for the taxes on earnings, you still grow $100k per year, adding an extra mil per decade. If you aren’t fine by then I don’t know what to tell you.
I would add its where you retire. State income tax free makes huge difference. Even in a 5 percent state 300k cost 15k or over 1200 a month and no need to be there for work. CA , NY you’re paying like 30k. That money saved and reinvested is huge difference over 15 or 20 years.
@ sorry off by 70 basis points 9.30 State Individual Income Tax Rates and Brackets, as of January 1, 2024 State Single Filer Rates Married Filing Jointly Brackets California 6.00% $77,918 California 8.00% $108,162 California 9.30% $136,700 California 10.30% $698,274
Nice video and well explained. Thank you for bringing up this video. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. Thanks to Expert Morrison Shawn the lady you recommended.....
Wow, that's amazing! I'm also a huge fan of her work! Her exceptional technical analysis skills have been a guiding light, providing clarity and reassurance during even the most turbulent market periods. Her expertise has been a valuable resource, helping me to navigate complex market dynamics with confidence.
Among numerous coaches, Morrison Shawn shines as a standout expert. Her reputation grows exponentially daily, and her tailored strategies have yielded remarkable results. With extensive experience navigating the financial market and I consider her an indispensable asset in my financial journey.
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $270k across markets but don't know where to start.
It really depends on how you got your money. If you just had a regular job and saved your money for 40 years, you have a lot of investment experience. But if you just sold a business, and got a huge lump sum, then you may not be familiar with managing large sums of money. As a steady saver, I learned gradually how to invest. I was very nervous in 1990 when I bought stock for the first time, spending $3800 on 100 shares a well-known insurance company. But with many years of investing, including many mistakes, I learned how to manage large sums of capital. Now I'm spending 1/2% a year of my money, along with my Social Security.
Excellent presentation. Very comprehensive. The wild card is how much in stocks and how much in fixed income. It just depends, doesn't it. Their is no right answer for everyone. 70% fixed income and 30% equities is a problem because of taxes on fixed income. Tax exempt bonds would solve some of that, sort of. But not for IRMAA.
Good video. I am not saying a Roth conversion is a bad idea but given their small % in tax deferred accounts and high basis in brokerage, they can likely get a similar result with one of the following strategies, taking into account their heirs. Remember that the standard deduction and tax brackets adjust annually for inflation thus the $1.3m balance at RmD age will not cause a tax problem. Year 1 RMD of 4% at age 75 will be in low tax brackets. Instead of Roth converting consider: 1. Withdraw and live off IRA money, managing taxes and reducing future RMDs while allowing the brokerage account to grow and go to heirs with a step up in basis. They could harvest some losses along the way as well. 2. Take a small amount each year from the IRA and some from the brokerage account staying in the 12% bracket so the cap gains will be in the zero % bracket. This will also lower RMDs and protect a large portion of assets for heirs while minimizing taxes.
Yes, Keith, sometimes a 'go either way' call... but in this case the Roth conv at a low tax level won out. The next video we are posting actually refers to those options sometimes being interchangeable: Roth conv. vs strategic IRA w/d's. Thanks again for watching!
If you’re gonna take it out of a traditional account, you might as well put it in a Roth as a conversion even if you’re gonna take it out shortly. The tax affect is the same except that when you park it in your Roth, any earnings on that amount is tax freeyou can always take it out for your tax at any time assuming you’re over 59 1/2.
I think you missed my point. To convert to Roth requires paying tax on IRA withdrawals above what you need to live on. I am saying that is not needed at the level of the account and it could also put you into a tax bracket where your capital gains are taxable. In the example in the video the persons IRA balance is not at the point where RMDs are going to be an issue. Thus I am suggesting as an option taking a small amount from IRA and some from the brokerage to live on but not extra. By managing income your cap gains can be tax free in that strategy while also keeping the IRA balance low enough to not be a future issue during RMDs. If you are 60 today your first RMD is 15 years away. Even a $1m IRA will only throw off $40k of income in year 1 of RMDs, which where the standard deduction could be after annual inflation adjustments.
@@Bondbeer I think you are missing some of the bigger picture. You aren''t taking the ordinary income being generated in their taxable account such as dividends, social security, and the biggy for married couples: surviving spouse. They have 15years for their deferred to accumulate more and that RMD starts pumping the gas after year 3 of RMD. Surviving spouse can easily jump two tax brackets in the taxable ordinary income, social security, and RMD situation even on $1m deferred.
Come on! If you have $6M in cash at age 63, this is not a problem in any way. Let's say you draw only 5% per year from your investments, that is $300K per year. Let's be real here.
Yeah, this is a garbage fear mongering video. $300k a year puts you in the top 5% of US households. Plus, you may spend more in your early retirement years, but once you hit 75-80 that drastically reduces.
No pro here but if you have 3 million plus (not including their home(s) the principal should barely be touched in retirement unless a big purchase is made, like buying another property. With that kind of nest egg a 10% return would be 300K and a 20% return is 600K! In ONE year! Wealth takes off once a million or more is accumulated! With 6 million life is GREAT! Let’s not forget as you age spending on “stuff” goes down. Medical care is the big issue but can be dealt with via trusts.
People are facing a tough retirement. and it's even harder for workers to save due to low-paying jobs, inflation, and high rents. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire in.
Totally disagree about the strategy for bear markets. Rather than squiring the money away, and living off of it. You SHOULD have 10-15% cash on hand to buy into a bear market and capitalize on the recovery.
Have slightly more than three times this. Still take coke cans in cash, wife still watches spending. Drive 2014 Lexus LS-460L with 65k miles and on this next Monday will go to a guy’s house and work on a thermostat problem. I work as property manager at my older age for a limited number of well off second home owners in my hood. Money isn’t everything. Best to not display and work on humility, which is a lot more difficult than financial management.
Who are you leaving your money? Why die with millions when driving old cars and not enjoying your money ?/ at least give kids thousands for vacations, housing, schooling, etc..
@@2Greenlidyou don't understand they want to live like that. That's what they want to do and they have that right, they earned it. My grandparents spent money on only what they needed and that's what they wanted to do. They grew up in the depression with a dirt floor and no shoes. To them we all were rich beyond our dreams. They left millions to their grandchildren.
He was simply pointing out that business owners often underestimate their expenses because they’ve been able to put many personal expenses on the business balance sheet. This can be significant.
Good video including RMD QCD which you never hear people talk about. But (there's always a but), where's the "what life actually looks like" part, or did I miss it? Why is there a $92k+ income surplus, when asset withdrawal should be sufficient to cover your expenses? I also didn't see the AUM fee and more importantly their additional income from social security.
I’m retired with a very nice defined benefits pension, the money we’ve saved for retirement will probably just sit there until the kids inherit it. We are also in San Diego, just waiting to leave. I’m afraid what California capital gains will do to us.
Subscribed. This is definitely one of the best retirement videos I’ve seen. Can you make a video on 457b strategies (for example given options for a lump, 5, 10, or 15 year payout) And also can you address what happens to the invested 457 funds over the duration of the years of distributions? (Ie if you have 1mil and do a 10 year payout, do you get equal 100k stable each year or does the money remain invested and grow or shrink based on the market?) thanks!
Thanks for subscribing! Some of the case study videos and the pension vs. lump sum video should combine to provide some transferrable principles for your situation. ruclips.net/video/BH-KVus1dqQ/видео.htmlsi=4gnMixgCnPZcSQQG
There expenses seem rather low . $12,000 gross a month is only $8000 per month net. What sort of home that’s $1.4 million do they have? Electric/gas are $1,000 a month combined generally, Medicare and land taxes . This is not enough. It seems they should plan for $10-11 K NET per month . Also how does Lisa have $300k in a Roth with such a high income?
We only have $2M but we have pensions and social security over $300k/year with a paid off home so we will just let the $2M continue to grow throughout retirement.
It's not embarrassing! Only if you squander it, don't help others and spoil your children to the point of them becoming unproductive, then....Shameful!
I never understand why people leave money to their children. It robs them of a sense of achievement. Money given as a gift is never appreciated. If you raised your children right, they will do just fine.
If you retire with a good amount in your 401k, IRA or other retirement assets, you don’t have what you think you do. The impact of taxes on withdrawals is as more impact than you think. Also,taxes on property taxes is far more than I considered during my working years. My property tax on a 2500 sq ft condo is $43k. Far more than my social security income. Healthcare is far more than I considered as well.
So your condo is worth 2-3m dollars at least I’m guessing based on your property tax bill. If you can afford a condo that expensive you can afford the taxes. If not sell the condo.
@@mikeh5629 That’s high. My understanding is that Florida is a state where property taxes punish new buyers because they are tied to the sales price, while neighbors that have owned their houses for many years are taxed at a possibly much lower rate. That’s good for retirees on a fixed income, but tough on new buyers.
@@mysterio5837 Hey- good job of completely missing my point. I'll make it simpler for ya': Age matters when calculating the reserves needed to retire with a given lifestyle.
Net worth of $6M is no longer considered wealthy in the San Francisco Bay Area. Rather it is in the range of upper middle class. Life will still be a struggle with this type of retirement portfolio if you plan to retire in the SF bay area.
I still consider $6M to be wealthy, especially if you own your home. Housing is the biggest expense in the Bay Area, but if you're a homeowner, you’re insulated from those astronomical rental or mortgage costs. Outside of housing, your general expenses may only be 10-20% more than in less expensive areas. For example, property taxes, utilities, and general living costs in the Bay Area are higher, but not by a huge margin compared to other places. With $6M, you’ll be required to take Required Minimum Distributions (RMDs) once you reach 73, which could add taxable income. Depending on how you structure your portfolio, that could push you into a higher tax bracket. In a less expensive area, your portfolio could go further-$6M could easily support a comfortable lifestyle in places like the Midwest or South, where housing and living costs are much lower. In some regions, your annual living costs might only run $60-70K, whereas in the Bay Area, it could be closer to $100-120K or more, depending on lifestyle.
@ I don’t include my primary residence into my net worth because as long as i am alive, it’s not something I will tap into for retirement. Only my descendants will have that choice. Comfortable lifestyle smacks of being upper middle class. Wealth enables one to indulge in a luxurious lifestyle without undertaking debt or living beyond one’s means.
So immediately, the sale of the business could be done through a holding company and greatly reduce the capital gain tax. This holding company, an LLP, can also hold your house and service your mortgage. You can set yourself as an employee to the LLP, and pay for your insurance through the LLP which can be deducted from your LLP's "revenue" through its stock portfolio. Setup some small side business, doesn't even have to generate revenue, such as selling photography on stock website so you can declare all your travels as business expense, which is a further tax write-off through the LLP. You can write off your car this way as well. In your will, transfer the ownership of the LLP to whomever (and percentage transfer of ownership would be very easy this way) and instructions on how these assets are setup, so whoever inherits these assets pay ZERO tax.
Couldn’t 90% of the high healthcare years be paid from the pretax accounts and use the medical itemization to avoid the taxes? Basically if you medically need long term care and it cost $150,000 in a year, 90% of that expense should be tax free, so pull from the pre tax IRA.
Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
We have been in a depression since 2008, the yield curve has already uninverted, global recession indicators are flashing alarm for well over a year, and absolutely nobody could pull us out of the hell coming regardless of party.
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!
ASHLEY GARNER ABBOTT a renowned figure in her line of work, i recommend researching her credentials further.... she has many years of experience and ia a valuable resource for anyone looking to navigate the financial market
Excellent share! Curiously inputted Ashley Garner Abbott on the web, spotted her consulting page ranked top, and was able to schedule a call session. I've seen commentaries about advisors, but not one looks this phenomenal.
Why is it Financial Advisors never allow you to begin to deplete your principal? After you have a high net worth, why do you ever need to invest in stocks and risk a big down turn? So what if inflation begins to eat at your buying power. You're going to spend less as time goes on and you'll take medical expenses out of your principal. I don't get it. The only thing I can figure is they want to grow their assets under management. It's more about them than you.
If you have enough principal why not just invest in risk free treasury notes? That seems like a reasonable strategy to me unless you want to leave more money to family or charities.
FA’s are conservative so you don’t run out of money and blame them. But you’re right, there is a conflict of interest for FA’s to want you to spend less if they earn % of AUM.
I’d love to see a breakdown of their $12,500 per month “just to live on” not including mortgage or travel and with grown kids. 🤦♂️ Out of touch with reality.
@@pdpgkeeper A. It’ll be paid off in 5 years at the current payment schedule per the video so the debt can’t be all that big. B. Why are they too old to have debt that size? It’s pretty much the lowest risk debt you can have and they’re not that old.
Because there’s added value to increased cash flow. While you count the 2-3% difference in interest rates, there’s an opportunity cost. Besides I’m not saying they need to get rid of it asap, but consider making extra payments against principal
@@pdpgkeeperyou still haven’t explained why to pay it off. The only opportunity cost is from paying it off early. Their interest rate is only 2.8%. Why pay it off any sooner than need be when they can get 4-5% no risk returns on high yield savings/CD’s/treasuries or ~8-10% in the market?
My primary concern is navigating the ongoing economic and global challenges while staying financially stable, particularly amidst the political power struggles unfolding in the U.S.
Inflation can have a significant impact on individuals and their cost of living. As a result, it can cause negative market sentiment. It is important for individuals and businesses to find ways to navigate and potentially mitigate the effects of inflation on their finances. The current economic climate, including underperformance of financial markets due to fear of inflation, has led to a decrease in the value of my portfolio. I would appreciate any recommendations on how to potentially increase returns during this market downturn.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over $250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
In next 5 years, my net worth will be around 5M to 10M in 401K As soon as I reach 10M, I am going to retire. I am single and it is more than enough. My goal is to reach ~100M in 15 years!
@@zengjanezhu Worst thing you could do would be to leave money to your children. Why do they need it? Let them earn money on their own. No one becomes a better person because they got free money.
@@williamquigley7709 true. But people do have incentives to leave money for their offsprings. But if you have no kids, what is the point so much focused on max your wealth? That is the mindset puzzled me
With retirement income needs of 100K per year of which well over 50% is probably covered by social Security, I don't know how they're going to get by on only 6 million?😂
Way too complicated…..easy method take all assets with no debt = net worth. Take net worth and discount by 25% = available assets divided by number of estimated years you will live = your annual burn rate. Enjoy living your remaining life.
that seems complicated and doesn't play out in reality. $1m investable assets is far different than a $1m net worth with say $900k of it in home equity and $100k in savings.
When they started working a couple could comfortably retire on a few hundred thousand dollars. Now it’s 6 million if you’re careful. 🤔 A “little” inflation goes a long way over 50 years.
Oh these poor people. They have twice as much money as they know what to do with. Let's "optimize" it so that they have 3 times as much as they want to spend.
They should have paid off their house 20 years ago. Yes that had a low mortgage rate of 2.875%. Why hold on to debt? That makes no sense to me. The Ramsey method makes more logical sense to me.
Hi, excellent video showing an example quite similar to mine. Are you able to share what planning software you are using that includes the guardrail calculations?
@@whodey2112He’s either full of shit, or is social and likes talking to strangers. Honestly, if I had 75 million, there is not way I’d drive Uber. Not worth the risk of getting murdered, injured, or sued.
I retired a year ago at age 57 from my electrical engineering career with $2.6 million in savings, excluding my home, which is fully paid off. I’ve since developed advanced skills in trading stock options. Using $600,000 as collateral, I can generate $12,000 to $16,000 in monthly income. I plan to continue trading as long as my mind remains sharp enough to handle the complexities of options trading.
You should retitle this video to “How to make ends meet on $300k a year.” Im sure videos like this are really important for those millionaires that are struggling with such a low income.
Why the hate? People invest and save to see their wealth grow, so the notion that somehow the example couple is abnormal seems rather absurd just because they started their own business, worked hard at that business for 40years, and sold their profitable business to retire. Anyone saving $10k per year over 30 years will reach $1m. When you reach retirement, it's about how you decumulate your life's work saving and investing, and outcomes of your decisions will have impacts on what that looks like.
@ I’m on track to hit $1.2m by 57 and want to retire early. I have to delicately plan my budget to ensure money doesn’t run out too soon. However, if I had $6m I wouldn’t be going on RUclips to manage my retirement. I’d have $300k a year and have more in my portfolio by the time I die than when I started. More power to whomever that is that this video is for, but the rest of us are trying to plan with more reasonable numbers.
@@edavis5451 the basic principles hold true. The major difference is the higher tax liability which means you need more to generate more to offset the taxes.
Yeah, this is a really tough one. I’m sure you’ve got at least five maybe six viewers that could relate to this. I really hope these guys make it. I’m praying for them.
Yeah so? Don't watch it! Perhaps someone has 3 or 4 Million with a Pension and SS! Go away and be poor, your negativity here is no doubt why you're jealous of others! Merry Christmas!
9,000 views and and slice towards demographic that would watch this content (find interesting over other content whether they had any size portfolio). There is millions of ‘boomers’ selling their small businesses these past 10 years and currently & a raging stock market for the largest wave of retirees ever… YAH!… there is way way way more than ‘5 maybe 6 viewers’ that relate to this. I am not one of them but out of 9k views and the dynamics of past 10 years and audience of this content - there is easily several hundred - likely more.
Very interesting. I am at 1.8M at age 47. If I was at $6M in my 50's or 60's there is no way I am spending my time, watching and commenting on RUclips investment videos.
Wonderful real life example of folks in CA who are sort of middle class or slightly better and their struggles to retire. We live in Orange County and we are in a similar situation. Constantly struggle with the fear whether we have enough
If someone let them borrow money at 3% for their mortgage, they should keep that mortage outstanding for as long as possible. They can make 10% annually on their investments. Borrowing at 3% and earning 10% is a smart financial decision.
I have a mortgage at 2.6% and more than enough cash to pay it off but my money market fund is paying 5.5% so why would I pay the mortgage off. If the money market fund goes to zero I have bigger problems than the mortgage. If the money market interest rate goes to 2.6% I will just pay the mortgage off
When they started working a couple could comfortably retire on a few hundred thousand dollars. Now it’s 6 million if you’re careful. 🤔 A “little” inflation goes a long way over 50 years.
WARNING There has been an increase in bots and spammers commenting on our videos. Sometimes the interactions may look real, but are easily identified by commenters promising high returns or promoting other 'advisors'. Please report these comments if you see them so we can keep our community safe from these scams. I will never try to contact you; you can only get in touch with me via the link in the description of the videos.
Thank you!!
Please delete them!
They are very distracting and detracting
@@onedegreeadvisors Click Report then misinformation. Let’s fight back.
Check out Thiojoe. He built a program to delete them automatically
perhaps, they are real people, but they don't support your point of views?
@user-0j27M_JSs dude no... they are clearly bots the ones referred to. And it's either 2 to 4 of them or sometimes a crazy amount upwards of 30. Always promoting a fake FA that will steal your money.
Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?
as most investing-related questions, the answer is, it depends my best suggestion is to consider advisory management.
Agreed, the role of advisors can only be overlooked, but not denied. I remember in early 2020, during covid-outbreak, my portfolio worth around 300k took a slight fall, apparently due to the pandemic crash, at once I consulted an advisor in order to avoid panic-selling. As of today, my account has yielded big fat yields, and leverages on 7-figure, only cos I delegate my excesses right.
@@Jeffcraparo this is huge! mind if I look up the adviser that guides you please? only invest in my 401k through my employer for now, but enthused about diversifying my investments for a prosperous financial future
One of the most well-known people in her field is my CFA, Annette Marie Holt. I advise doing more study on her qualifications. She is a great resource for anybody trying to understand the financial industry because of her many years of expertise.
very much appreciated, your response suggests a person of benevolence.. just inputted her full name on my browser, and came across her site, top-notch qualifications! she seems well-qualified
I’m worried about retirement planning and I want to ensure a comfortable future. I’ve worked hard my entire life and I want to enjoy the fruits of my labor without financial stress. I’m really concerned about whether I’ve saved enough and invested wisely.
I completely understand. Ensuring financial security in retirement is crucial. Have you considered consulting a financial advisor?
Yes I have. But I don’t know who exactly to trust to provide the right advices and guidance for me.
True. I have been in contact with a CFA that specializes in retirement planning. His expertise can help optimize your savings and investments.
Who’s this CFA? And how can I reach out to him?
JOSEPH NICK CAHILL
The hardest part of retiring with wealth is spending it. Old frugal habits are hard to break... 😂
So true! Thanks for watching.
Retired and worth $11 million. Still driving a 34 year old car with $800 k miles, bought a Tesla. yes hard to spend freely!
@mlee1308 My truck is 25. I want a new Truck, it costs $70K. I'm sorry, but I just can't spend that much on a new truck! 🐥🐣 Too cheap!🤣
So true , you nailed it……remember without those habits you would have never got here. 😊
Glad to hear we have company in this area.
With most of assets in equity markets, I feel like I constantly worry about it.
I'm at that level, $6.6M plus home (total about $7.4M). Single, 56, never married, no kids. I embarked on an education and career path designed to support having a wife and kids in a VHCOL area, but they never materialized. (But if they had, I'm pretty confident I'd be divorced.) So, here I am, still making bank, but I'm bailing out in a few months. I decided that in the absence of having the 1950s idealized wife, kids, picket fence, etc. I might as well go have some adventures and fun before I no longer can. Selling/donating everything, and I'm off to travel the world, solo. I'm going to fully convert my pre-tax over the subsequent 6 years (57-63). I'm going to shelter blocks of funds simultaneously, deferring taxable dividends/interest, and take Social Security a bit early, allowing me to dodge IRMAA.
@@milesb4231They will materialize but see if it diminishes when ha asks her to sign a prenup,if she doesn’t sign he needs to pull the plug, which I hope he does.
@milesb4231
Then promptly "dematerilize" with his Money!
I am in the similar financial situation in next 5 years!
But I am confident right now if I want, I don’t have to be single but I enjoy it.
thanks for watching!
Yours is an interesting situation. I live in the SF Bay area as a software engineer, however I work in the government so my salary is respectable but much less than if I worked in the private sector (however I will receive a generous pension). When I retire in 3 years I look forward to becoming proficient in outdoor rock climbing, hiking the PCT, and more backpacking trips to Yosemite and Peru/South America by myself and with my 3 young adult kids. I'm curious what is your career and which area of the country do you live in and why so confident you would have ended up in a divorce. Are you also a software engineer? I've seen many brilliant engineers that appeared to be on the autism spectrum here in the SF Bay Area.
If you have 6 million in a retirement account and you're not making 5% on it annually ($300,000) you need to fire your financial advisor !
I have 1.5 million and only invest in tbills. Wife and I just added SS to our monthly income. We go on 3 cruises a year and pay all our bills without ever touching our 1.5. I also said what the hell is this guy doing.
Almost anyone who has retired in the past 50 years has been able to live on 6%+ of their total investable assets annually, but the standard 4% recommendation is based on the last 100 years of returns. People who retired in the 60s who spent 3.5% - 4% annually would have had $0 in investable assets after 30 years. Stock prices today are so high compared to earnings that it wouldn't be that surprising to see the market barely keep up with inflation over the next 30 years. As someone in my 40s I sure hope that doesn't happen though.
@@kyleolson9636 for someone not aware of the 25x or 4% rule of thumb…
technically, trinity study was:
100% chance of funds lasting 30 years. But likely to last much much longer, only a small % would run out year 31.
Invested in:
50% bonds, 50% SP500, rebalanced every year.
Withdrawal:
4% first year. But the dollar amount is adjusted by inflation every year. It’s not 4% every year.
The video starts with 6 mil and somehow they are going to be in a low tax bracket for a few years. Do they put all of that in zero yielding investments with no cash flow? You have to be kidding.
@@LuxeonIII He stated they had a large amount in post-tax accounts with high cost basis, so the cap gains on their withdrawals will be low
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks.
@@ClarieZwiehoff Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY*..
@@IfranReinfeld Oh please I’d love that. Thanks!
*MARGARET MOLLI ALVEY*
Lookup with her name on the webpage.
Nobody is asking the right questions. I'm worried about retirement and want to maximize my savings. I've tried various investments that didn't work out as I hoped, and now I'm unsure whether to invest in the stock market or index. Any recommendations would be appreciated.
The rich stays rich by spending like the poor and investing without stopping then the poor stays poor by spending like the rich yet not investiing like the rich
Assets that can make one successful in life
I. Forex
2.Stocks
3.Shares
forex is profitable and lucrative investment online
@@SanJose-n6lYou are right.
But I don't know why people remain poor due to ignorance
This is one of if not the best video walking through a scenario like this I have seen in the past 10 years on YT. Very well done.
Same age, net worth at $6M , gross income $425K/yr. Never had a financial advisor…listened to several and most have book knowledge and very little money-making life experience.
I agree. I rarely take important financial advice from someone making less than I do.
@@5tr5 Unless you make money in investments, seeking someone with financial expertise isn't a dumb idea.
Geez 6 million can produce $300k with very little risk and never touch the principal.
Yes, and the government is going to love taxing (even with a marginal tax system) that 300k. Still, the money leftover would be more than enough for most people in retirement. 😊
If you spend all your earnings per year then your principal will be eaten away by inflation
@@gwarlowany income is taxed. Money made is money made. Don’t worry about taxes because they aren’t going anywhere. I’d rather get taxed on $300k vs $100k
@@Miguel_161agreed. A wealthy couple told me people fixate on how much the govt made. The govt has rigged the game. The money literally has their name on it so they’re going to win by design. But if you paid a boat-load in taxes, you’ll be depositing a yacht-load in the bank… A high tax bill is a sign that you earned a killing. Sure defer taxes and work the system but don’t fixate on avoiding taxes. Trying to avoid paying taxes (either upfront or on the back end) is futile.
@@niktak1114 what are you doing to spend all $300k a year? At that point, the house is paid for. If you live on the $100k, save $100k for the taxes on earnings, you still grow $100k per year, adding an extra mil per decade. If you aren’t fine by then I don’t know what to tell you.
I would add its where you retire. State income tax free makes huge difference. Even in a 5 percent state 300k cost 15k or over 1200 a month and no need to be there for work. CA , NY you’re paying like 30k. That money saved and reinvested is huge difference over 15 or 20 years.
Yeah, anyone who stays in those 2 states will regret it. The D’s will keep going after the successful peoples’ wealth. Plus crime.
@ sorry off by 70 basis points 9.30
State Individual Income Tax Rates and Brackets, as of January 1, 2024
State Single Filer Rates Married Filing Jointly Brackets
California 6.00% $77,918
California 8.00% $108,162
California 9.30% $136,700
California 10.30% $698,274
Nice video and well explained. Thank you for bringing up this video. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. Thanks to Expert Morrison Shawn the lady you recommended.....
Wow, that's amazing! I'm also a huge fan of her work! Her exceptional technical analysis skills have been a guiding light, providing clarity and reassurance during even the most turbulent market periods. Her expertise has been a valuable resource, helping me to navigate complex market dynamics with confidence.
Among numerous coaches, Morrison Shawn shines as a standout expert. Her reputation grows exponentially daily, and her tailored strategies have yielded remarkable results. With extensive experience navigating the financial market and I consider her an indispensable asset in my financial journey.
Recession coming soon? Jim Rogers says next market crash will be the worst, holds cash. Plan B should be on investing
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $270k across markets but don't know where to start.
Future looks bright when the needful are being done, I never regretted using part of my salary to start up my investment
It really depends on how you got your money. If you just had a regular job and saved your money for 40 years, you have a lot of investment experience. But if you just sold a business, and got a huge lump sum, then you may not be familiar with managing large sums of money.
As a steady saver, I learned gradually how to invest. I was very nervous in 1990 when I bought stock for the first time, spending $3800 on 100 shares a well-known insurance company. But with many years of investing, including many mistakes, I learned how to manage large sums of capital. Now I'm spending 1/2% a year of my money, along with my Social Security.
Excellent presentation. Very comprehensive. The wild card is how much in stocks and how much in fixed income. It just depends, doesn't it. Their is no right answer for everyone. 70% fixed income and 30% equities is a problem because of taxes on fixed income. Tax exempt bonds would solve some of that, sort of. But not for IRMAA.
Good video. I am not saying a Roth conversion is a bad idea but given their small % in tax deferred accounts and high basis in brokerage, they can likely get a similar result with one of the following strategies, taking into account their heirs. Remember that the standard deduction and tax brackets adjust annually for inflation thus the $1.3m balance at RmD age will not cause a tax problem. Year 1 RMD of 4% at age 75 will be in low tax brackets. Instead of Roth converting consider:
1. Withdraw and live off IRA money, managing taxes and reducing future RMDs while allowing the brokerage account to grow and go to heirs with a step up in basis. They could harvest some losses along the way as well.
2. Take a small amount each year from the IRA and some from the brokerage account staying in the 12% bracket so the cap gains will be in the zero % bracket. This will also lower RMDs and protect a large portion of assets for heirs while minimizing taxes.
Yes, Keith, sometimes a 'go either way' call... but in this case the Roth conv at a low tax level won out. The next video we are posting actually refers to those options sometimes being interchangeable: Roth conv. vs strategic IRA w/d's. Thanks again for watching!
If you’re gonna take it out of a traditional account, you might as well put it in a Roth as a conversion even if you’re gonna take it out shortly. The tax affect is the same except that when you park it in your Roth, any earnings on that amount is tax freeyou can always take it out for your tax at any time assuming you’re over 59 1/2.
I think you missed my point. To convert to Roth requires paying tax on IRA withdrawals above what you need to live on. I am saying that is not needed at the level of the account and it could also put you into a tax bracket where your capital gains are taxable. In the example in the video the persons IRA balance is not at the point where RMDs are going to be an issue. Thus I am suggesting as an option taking a small amount from IRA and some from the brokerage to live on but not extra. By managing income your cap gains can be tax free in that strategy while also keeping the IRA balance low enough to not be a future issue during RMDs. If you are 60 today your first RMD is 15 years away. Even a $1m IRA will only throw off $40k of income in year 1 of RMDs, which where the standard deduction could be after annual inflation adjustments.
My thoughts exactly. I thought they could transfer the brokerage account assets tax free to their heirs who would get the stepped up basis.
@@Bondbeer I think you are missing some of the bigger picture. You aren''t taking the ordinary income being generated in their taxable account such as dividends, social security, and the biggy for married couples: surviving spouse. They have 15years for their deferred to accumulate more and that RMD starts pumping the gas after year 3 of RMD. Surviving spouse can easily jump two tax brackets in the taxable ordinary income, social security, and RMD situation even on $1m deferred.
I have an MBA and I can tell you this guy knows what he is doing.
Lol
Come on! If you have $6M in cash at age 63, this is not a problem in any way. Let's say you draw only 5% per year from your investments, that is $300K per year. Let's be real here.
ikr be happy with 6M , there are many simple and safe places to park your assets , t-bills, cds, annuities.....why stay in the Casino ? I dont get it.
Yeah, this is a garbage fear mongering video. $300k a year puts you in the top 5% of US households. Plus, you may spend more in your early retirement years, but once you hit 75-80 that drastically reduces.
@@chadmichael7198 You are right
A couple of my comments were deleted. Why?
@@leftwingersareweak because YT sucks
Do an episode on $10m in retirement funds next. I think it would be cool to dream.
Though I'm far from reaching retirement age, I found some of your content to be quite useful. Thank you!!
No pro here but if you have 3 million plus (not including their home(s) the principal should barely be touched in retirement unless a big purchase is made, like buying another property. With that kind of nest egg a 10% return would be 300K and a 20% return is 600K! In ONE year! Wealth takes off once a million or more is accumulated! With 6 million life is GREAT! Let’s not forget as you age spending on “stuff” goes down. Medical care is the big issue but can be dealt with via trusts.
you should read the book "die with zero"
@@777FreeYoungThugDying with zero (starting with 6 million) is impossible unless you act like and spend like you have a billion dollars.
People are facing a tough retirement. and it's even harder for workers to save due to low-paying jobs, inflation, and high rents. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire in.
What software are you using to organize their financial information?
I’d like to know this too
Following.
Totally disagree about the strategy for bear markets. Rather than squiring the money away, and living off of it. You SHOULD have 10-15% cash on hand to buy into a bear market and capitalize on the recovery.
Have slightly more than three times this. Still take coke cans in cash, wife still watches spending. Drive 2014 Lexus LS-460L with 65k miles and on this next Monday will go to a guy’s house and work on a thermostat problem. I work as property manager at my older age for a limited number of well off second home owners in my hood.
Money isn’t everything. Best to not display and work on humility, which is a lot more difficult than financial management.
Who are you leaving your money? Why die with millions when driving old cars and not enjoying your money ?/ at least give kids thousands for vacations, housing, schooling, etc..
@@2Greenlid it's because people don't know how to decumulate and think it's a badge of honor to horde their cash.
@@2Greenlidyou don't understand they want to live like that. That's what they want to do and they have that right, they earned it. My grandparents spent money on only what they needed and that's what they wanted to do. They grew up in the depression with a dirt floor and no shoes. To them we all were rich beyond our dreams. They left millions to their grandchildren.
And then, he dies. We all die.
Good thing you are displaying it on the internet to get your praise here. Wow you impress me.
6M net worth and we are talking about monthly cellphones bills? Uh what?
He was simply pointing out that business owners often underestimate their expenses because they’ve been able to put many personal expenses on the business balance sheet. This can be significant.
@ id bet the advisor fee is greater than his cellphone bill thats .02% of his net worth per year.
@@snakeonia7542 well, yeah, that’s how most advisors get paid (and even when they do it for a flat fee, others in the chain still get fees).
Good video including RMD QCD which you never hear people talk about. But (there's always a but), where's the "what life actually looks like" part, or did I miss it? Why is there a $92k+ income surplus, when asset withdrawal should be sufficient to cover your expenses? I also didn't see the AUM fee and more importantly their additional income from social security.
I’m retired with a very nice defined benefits pension, the money we’ve saved for retirement will probably just sit there until the kids inherit it. We are also in San Diego, just waiting to leave. I’m afraid what California capital gains will do to us.
Subscribed. This is definitely one of the best retirement videos I’ve seen.
Can you make a video on 457b strategies (for example given options for a lump, 5, 10, or 15 year payout)
And also can you address what happens to the invested 457 funds over the duration of the years of distributions? (Ie if you have 1mil and do a 10 year payout, do you get equal 100k stable each year or does the money remain invested and grow or shrink based on the market?) thanks!
Thanks for subscribing! Some of the case study videos and the pension vs. lump sum video should combine to provide some transferrable principles for your situation. ruclips.net/video/BH-KVus1dqQ/видео.htmlsi=4gnMixgCnPZcSQQG
$10k for travel a year during the Go-Go years is very low.
This 6 million isn’t moved into the SP500 ETF? I’m so confused…
10 mil is the new 1 mil
@Brakelate879
Not sure we’re quite there yet! 🤣
Compared to roughly 60 years ago.... yes.
Mote like 5mil
it's really not. 10 mil usd is way above avg assuming only ~15% is tied up in primary residence
Kind of a ridiculous statement since you have to go back to the 1960’s to reduce spending power by 10x
There expenses seem rather low . $12,000 gross a month is only $8000 per month net. What sort of home that’s $1.4 million do they have? Electric/gas are $1,000 a month combined generally, Medicare and land taxes . This is not enough. It seems they should plan for $10-11 K NET per month .
Also how does Lisa have $300k in a Roth with such a high income?
If i heard correctly, they would save $235k in taxes...over 30 years...on a final Estate worth...$15m+?
Seems like a rounding error problem.
What software is that you are clicking around in the video?
Income Lab. Thanks for watching.
We only have $2M but we have pensions and social security over $300k/year with a paid off home so we will just let the $2M continue to grow throughout retirement.
Nice. Thanks for watching.
"only" 2 million
@@kumarsukhdeo9886 It’s low compared to a lot of my peers. I guess I have envy of others at my office.
What do you think of VUSXX instead of HYSA for your emergency fund that also has the advantage of being state tax free?
Agree. We grew up poor beyond means. Embarrassing we have this much. But!, worked for ever dime to leave to children .
It's not embarrassing!
Only if you squander it, don't help others and spoil your children to the point of them becoming unproductive, then....Shameful!
Great job. Thanks for watching.
great point
Most wealth is gone within 3 generations. Read 'Die with Zero'
I never understand why people leave money to their children. It robs them of a sense of achievement. Money given as a gift is never appreciated. If you raised your children right, they will do just fine.
If you retire with a good amount in your 401k, IRA or other retirement assets, you don’t have what you think you do. The impact of taxes on withdrawals is as more impact than you think. Also,taxes on property taxes is far more than I considered during my working years. My property tax on a 2500 sq ft condo is $43k. Far more than my social security income. Healthcare is far more than I considered as well.
$43k in property taxes? Ouch. What state is that in?
@ Florida. We love where we live but property tax is nuts in our location.
So your condo is worth 2-3m dollars at least I’m guessing based on your property tax bill. If you can afford a condo that expensive you can afford the taxes. If not sell the condo.
I never said I couldn’t afford it. I just said it was nuts that property tax can be that much.
@@mikeh5629 That’s high. My understanding is that Florida is a state where property taxes punish new buyers because they are tied to the sales price, while neighbors that have owned their houses for many years are taxed at a possibly much lower rate.
That’s good for retirees on a fixed income, but tough on new buyers.
Thanks for the video! Was this presentation created with Loom?
Retiring with $6M at 35 is going to look different from retiring with that same amount at age 70, no matter where you live.
Who actually has 6 mil at 35 lol. Most are drowing in student debt
@@mysterio5837 Hey- good job of completely missing my point. I'll make it simpler for ya': Age matters when calculating the reserves needed to retire with a given lifestyle.
Net worth of $6M is no longer considered wealthy in the San Francisco Bay Area. Rather it is in the range of upper middle class. Life will still be a struggle with this type of retirement portfolio if you plan to retire in the SF bay area.
I still consider $6M to be wealthy, especially if you own your home. Housing is the biggest expense in the Bay Area, but if you're a homeowner, you’re insulated from those astronomical rental or mortgage costs. Outside of housing, your general expenses may only be 10-20% more than in less expensive areas. For example, property taxes, utilities, and general living costs in the Bay Area are higher, but not by a huge margin compared to other places.
With $6M, you’ll be required to take Required Minimum Distributions (RMDs) once you reach 73, which could add taxable income. Depending on how you structure your portfolio, that could push you into a higher tax bracket. In a less expensive area, your portfolio could go further-$6M could easily support a comfortable lifestyle in places like the Midwest or South, where housing and living costs are much lower. In some regions, your annual living costs might only run $60-70K, whereas in the Bay Area, it could be closer to $100-120K or more, depending on lifestyle.
@ I don’t include my primary residence into my net worth because as long as i am alive, it’s not something I will tap into for retirement. Only my descendants will have that choice.
Comfortable lifestyle smacks of being upper middle class. Wealth enables one to indulge in a luxurious lifestyle without undertaking debt or living beyond one’s means.
Even 20 years ago, 10M to 20M is not considered very wealthy in Bay Area.
@@PO-nb8qc yes
@@PO-nb8qc you sir are dead wrong
If someone can't retire with 6 million dollars
Something is wrong
10% average sp500 return on a 6 million portfolio is 600k a year. Yeah anyone would be ballin.
51, 1 kid, >$9m in assets. All in TSLA and own my home outright.
Psshhh I have 20m in Doge
@ cool. Good luck with your memes.
@@barbarjinx3802 I’m JK it’s actually all in Logan Paul NFT’s
On a serious note having 100% of your liquid assets in Tesla is almost as crazy.
A 60/40 portfolio in 10yrs returned (aver)6.5%. In 5yrs returned 9.8%. Hope you can have a withdrawal rate of 3 to 4% so portfolio can grow.
This video is what the regular person needs to hear, fer shoor! 😂
Yeah, I want to share it with friends. Financial literacy is important.
This is exactly what I thought it would look like
So immediately, the sale of the business could be done through a holding company and greatly reduce the capital gain tax.
This holding company, an LLP, can also hold your house and service your mortgage.
You can set yourself as an employee to the LLP, and pay for your insurance through the LLP which can be deducted from your LLP's "revenue" through its stock portfolio. Setup some small side business, doesn't even have to generate revenue, such as selling photography on stock website so you can declare all your travels as business expense, which is a further tax write-off through the LLP. You can write off your car this way as well.
In your will, transfer the ownership of the LLP to whomever (and percentage transfer of ownership would be very easy this way) and instructions on how these assets are setup, so whoever inherits these assets pay ZERO tax.
Health care cost is overstated if they know what’s health tourism
Couldn’t 90% of the high healthcare years be paid from the pretax accounts and use the medical itemization to avoid the taxes? Basically if you medically need long term care and it cost $150,000 in a year, 90% of that expense should be tax free, so pull from the pre tax IRA.
The tough choices? Like which heirs get the money?
$6M? That’s 0.01% of the world’s population, not a relevant video to billions of people.
Good case study but those guardrails are like I5 in Orange County - you'd have to be drunk to ever hit them.
Lots of construction up in OC, up the road from us in San Diego! Thanks for watching!
This video is so hard to get through because he talks so slow. I recommend 1.75 speed to take it in at a normal pace.
You could spend >180K/year after taxes. A VP type in a small to medium size company.
this is so bs
bro you cant retire at 6M then you got other problems
Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
We have been in a depression since 2008, the yield curve has already uninverted, global recession indicators are flashing alarm for well over a year, and absolutely nobody could pull us out of the hell coming regardless of party.
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!
ASHLEY GARNER ABBOTT a renowned figure in her line of work, i recommend researching her credentials further.... she has many years of experience and ia a valuable resource for anyone looking to navigate the financial market
Excellent share! Curiously inputted Ashley Garner Abbott on the web, spotted her consulting page ranked top, and was able to schedule a call session. I've seen commentaries about advisors, but not one looks this phenomenal.
Why is it Financial Advisors never allow you to begin to deplete your principal? After you have a high net worth, why do you ever need to invest in stocks and risk a big down turn? So what if inflation begins to eat at your buying power. You're going to spend less as time goes on and you'll take medical expenses out of your principal. I don't get it. The only thing I can figure is they want to grow their assets under management. It's more about them than you.
Really?
That's what you "get?!"
Wow!
If you have enough principal why not just invest in risk free treasury notes? That seems like a reasonable strategy to me unless you want to leave more money to family or charities.
The greater range of allocations for a higher portfolio value is brought up in the video. Thanks.
FA’s are conservative so you don’t run out of money and blame them. But you’re right, there is a conflict of interest for FA’s to want you to spend less if they earn % of AUM.
Because assets are safer than fiat currency over the long term. Hyperinflation isn’t impossible.
I’d love to see a breakdown of their $12,500 per month “just to live on” not including mortgage or travel and with grown kids. 🤦♂️ Out of touch with reality.
$6M liquid asset is my financial freedom goalpost. For this example, they should consider rounding up their mortgage to pay it off earlier.
They should absolutely NOT pay a 2.8% mortgage off early especially when simply cash can earn 4-5% interest right now.
There’s only one problem with that… they’re too old to hold debt that size.
@@pdpgkeeper
A. It’ll be paid off in 5 years at the current payment schedule per the video so the debt can’t be all that big.
B. Why are they too old to have debt that size? It’s pretty much the lowest risk debt you can have and they’re not that old.
Because there’s added value to increased cash flow. While you count the 2-3% difference in interest rates, there’s an opportunity cost. Besides I’m not saying they need to get rid of it asap, but consider making extra payments against principal
@@pdpgkeeperyou still haven’t explained why to pay it off. The only opportunity cost is from paying it off early. Their interest rate is only 2.8%. Why pay it off any sooner than need be when they can get 4-5% no risk returns on high yield savings/CD’s/treasuries or ~8-10% in the market?
My primary concern is navigating the ongoing economic and global challenges while staying financially stable, particularly amidst the political power struggles unfolding in the U.S.
Inflation can have a significant impact on individuals and their cost of living. As a result, it can cause negative market sentiment. It is important for individuals and businesses to find ways to navigate and potentially mitigate the effects of inflation on their finances. The current economic climate, including underperformance of financial markets due to fear of inflation, has led to a decrease in the value of my portfolio. I would appreciate any recommendations on how to potentially increase returns during this market downturn.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over $250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look.
I’m in dire need of guidance so i can salvage my portfolio due to the massive dips and come up with better strategies. How can I reach this advisor?
Google Rebecca Lynne Buie and do your own research. She has portfolio management down to a science
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
I am a multimillionaire but don't feel like one.
I am at the ¢6,000,000 level. Isn't that, more or less, the same?
In next 5 years, my net worth will be around 5M to 10M in 401K
As soon as I reach 10M, I am going to retire. I am single and it is more than enough.
My goal is to reach ~100M in 15 years!
What are you going to do with $100millions if you have no kids?
@@zengjanezhu Worst thing you could do would be to leave money to your children. Why do they need it? Let them earn money on their own. No one becomes a better person because they got free money.
@@williamquigley7709 true. But people do have incentives to leave money for their offsprings. But if you have no kids, what is the point so much focused on max your wealth? That is the mindset puzzled me
With retirement income needs of 100K per year of which well over 50% is probably covered by social Security, I don't know how they're going to get by on only 6 million?😂
Tldr. All in on Bitcoin. 😅
Six million dollars? Who is this video made for?
People actually retiring??
Of course! For those who’ve planned for years it’s not the doomsday you make it out to be.
why am I watching this....
Way too complicated…..easy method take all assets with no debt = net worth. Take net worth and discount by 25% = available assets divided by number of estimated years you will live = your annual burn rate. Enjoy living your remaining life.
that seems complicated and doesn't play out in reality. $1m investable assets is far different than a $1m net worth with say $900k of it in home equity and $100k in savings.
When they started working a couple could comfortably retire on a few hundred thousand dollars. Now it’s 6 million if you’re careful. 🤔 A “little” inflation goes a long way over 50 years.
Oh these poor people. They have twice as much money as they know what to do with. Let's "optimize" it so that they have 3 times as much as they want to spend.
Good luck to me! 😂
$6 million, very down to earth. Wanna really spread that money out? Just have them move out of CA.
Move your text jurisdiction in a friendly country.
Study the BTC four year cycle and invest in Bitcoin
They should have paid off their house 20 years ago. Yes that had a low mortgage rate of 2.875%. Why hold on to debt? That makes no sense to me. The Ramsey method makes more logical sense to me.
No invest the money in the market such as S&P500 to get 10% return.
If I can borrow at less than 3%, it is what I am going to do.
Only $6M? LOL
Hi, excellent video showing an example quite similar to mine. Are you able to share what planning software you are using that includes the guardrail calculations?
Thanks for watching. Income Lab.
Im around $75m and 65 but still do uber for side income. Never can be too safe when it comes to nest egg imo.
$75 million and still driving Uber is actually sad.
@@whodey2112He’s either full of shit, or is social and likes talking to strangers. Honestly, if I had 75 million, there is not way I’d drive Uber. Not worth the risk of getting murdered, injured, or sued.
It's a bot!
My goal is around 100M in 20 years
Pretty sure over 10M in 10 years!
No way someone drives uber with 75M. He must be stupid to make up a story.
Tighten the belt at 3.4m 😂
I'm glad you found this humorous, now go watch Saturday morning cartoons with the rest of the children,
The Adults are talking!
I retired a year ago at age 57 from my electrical engineering career with $2.6 million in savings, excluding my home, which is fully paid off. I’ve since developed advanced skills in trading stock options. Using $600,000 as collateral, I can generate $12,000 to $16,000 in monthly income. I plan to continue trading as long as my mind remains sharp enough to handle the complexities of options trading.
You should retitle this video to “How to make ends meet on $300k a year.” Im sure videos like this are really important for those millionaires that are struggling with such a low income.
Why the hate? People invest and save to see their wealth grow, so the notion that somehow the example couple is abnormal seems rather absurd just because they started their own business, worked hard at that business for 40years, and sold their profitable business to retire. Anyone saving $10k per year over 30 years will reach $1m. When you reach retirement, it's about how you decumulate your life's work saving and investing, and outcomes of your decisions will have impacts on what that looks like.
@ I’m on track to hit $1.2m by 57 and want to retire early. I have to delicately plan my budget to ensure money doesn’t run out too soon. However, if I had $6m I wouldn’t be going on RUclips to manage my retirement. I’d have $300k a year and have more in my portfolio by the time I die than when I started. More power to whomever that is that this video is for, but the rest of us are trying to plan with more reasonable numbers.
@@edavis5451 the basic principles hold true. The major difference is the higher tax liability which means you need more to generate more to offset the taxes.
Yeah, this is a really tough one. I’m sure you’ve got at least five maybe six viewers that could relate to this. I really hope these guys make it. I’m praying for them.
Yeah so?
Don't watch it!
Perhaps someone has 3 or 4 Million with a Pension and SS!
Go away and be poor, your negativity here is no doubt why you're jealous of others!
Merry Christmas!
Appreciate the support! There are transferrable principles to learn from, we believe.
9,000 views and and slice towards demographic that would watch this content (find interesting over other content whether they had any size portfolio). There is millions of ‘boomers’ selling their small businesses these past 10 years and currently & a raging stock market for the largest wave of retirees ever… YAH!… there is way way way more than ‘5 maybe 6 viewers’ that relate to this.
I am not one of them but out of 9k views and the dynamics of past 10 years and audience of this content - there is easily several hundred - likely more.
Judging from the comments, many more than five or six. My husband and I are in this demographic. I found this video very informative.
Very interesting. I am at 1.8M at age 47. If I was at $6M in my 50's or 60's there is no way I am spending my time, watching and commenting on RUclips investment videos.
Wonderful real life example of folks in CA who are sort of middle class or slightly better and their struggles to retire.
We live in Orange County and we are in a similar situation. Constantly struggle with the fear whether we have enough
Uhh...$6M is NOT middle class. You live in a fantasy land of only wealthy people if you believe it is.
It is not "sort of" middle class, either.
@ And how do you know it’s not “sort of middle class?”
@@bigmoose143 $6M is NOT "sort of" middle class. I look at the data.
@@leftwingersareweak Middle class in CA is 80-180k, do a 4% rule on it and see if you still feel it’s not “sort of middle class” 😂
How do u have a mortgage with 5+ million in equities? Brian and Lisa need to learn basic money management.😂
If someone let them borrow money at 3% for their mortgage, they should keep that mortage outstanding for as long as possible. They can make 10% annually on their investments. Borrowing at 3% and earning 10% is a smart financial decision.
I have a mortgage at 2.6% and more than enough cash to pay it off but my money market fund is paying 5.5% so why would I pay the mortgage off. If the money market fund goes to zero I have bigger problems than the mortgage. If the money market interest rate goes to 2.6% I will just pay the mortgage off
When they started working a couple could comfortably retire on a few hundred thousand dollars. Now it’s 6 million if you’re careful. 🤔 A “little” inflation goes a long way over 50 years.