Retirees Still Have 80%+ Of Savings AFTER 20 Years
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- Опубликовано: 29 сен 2024
- Retire NOW! Retirees Still have 80%+ Of Their Money AFTER 20 Years
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Spoiler Alert: There are no "get rich" programs. Rather, just basic blocking & tackling and putting in time and care. Do your homework, choose wisely and (IMHO) work with experienced professionals who are fiduciary to you 100% of the time.
I retired at 52, six years ago. Now I have more than 2X the amount I retired with. Yeah, I know I have been frugal and I do need to spend a lot more. The problem I have is switching from saving to spending. However, I haven't really seen a reason to inflate my lifestyle either because I am quite happy with my life.
Like you I retired at 52, ten years ago now and have around 2.5X what I retired with.. Whats more in 4 years my Wife and I will have almost 2 times what we currently spend in pensions and SS that we haven't touched yet! We probably won't touch them because we will have some SERIOUS RMD's to do. Of course then the pensions/SS will grow even higher. Also like you, we are not trying to be frugal either.
The CFA is a very difficult program to complete. Kudos to you and all others who have studied and passes all three levels.
Not seeing a link to the report? Am I missing it?
Geezuz, who says you can only be retired to travel for a weekend or 2-weeks +???The tunnel-vision of people never ceases to amaze me. I hear this narrative said over and over and over again. Have people NEVER heard of PTO or VACATION that comes from a job? Yes, the majority of people get such a benefit at their jobs. Often times it starts off at 1 or 2 weeks and then increases, the longer you've been there. There's also holiday-times to travel (which I don't like doing that, too crowded) but it's there to use for those getaway times. I've gone on some fabulous vacations on different continents too, while being a regular W-2 employee. Why wait to travel? (so long as one is financially-responsible, OF COURSE). Working doesn't inhibit one to have fun in their lives 🙄
I think you are walking in Oregon (Portland?)
Some of us want to be able to leave a decent amount to our kids. That’s a legitimate reason not to spend down the principal. Just saying.
I agree 100 percent.
Retirement is over hyped. One of the best parts about life is working
@chasemoray425
Plenty of ways to maintain purpose, have projects, without lining the pockets of others controlling your time
I have monitored my mother's accounts since my father passed 17 years ago. She had 1,000,000 in 2007, went through the '08/'09 downturn, spends whatever she wants, including travel several times a year, and has over 30% more money today. It makes me very comfortable in my retirement planning.
Wow
From the bottom of the 08/09 financial crisis through 2024, the S&P has averaged something like at 16% annual rate of return over the last 15 years, so this isn’t too surprising if she had a sizable allocation to an S&P or total market index.
What did she invest in??? I need to make an adjustment
I do understand we have had some great years, but I take confidence in knowing that the biggest and significant downturn was very early in this scenario. She stayed in a moderate allocation 60/40 after my father's passing, despite her advanced age. The key was she didn't sell during the downturn.
She is invested in a moderate portfolio. 60% stocks and 40% bonds and cash. To some this is aggressive for an elderly retired person, but I view these investments as long term since it is unlikely she will spend them down in her lifetime, so she can afford some minimal volatility
I’ve been retired twenty years, age 78. We am still doing the same things as when we retired and spending more money as we have developed more expensive tastes in food and travel. We feel as fit as when we retired, still skiing, cycling, hiking just about every day and we have already spent three weeks skiing this year and next week we are going for another two weeks.
We are very pleased we have not run down our money. I would hate to be looking at our finances and thinking we would have to give up everything that makes life worth living. Sooner or later we will slow down no doubt but we should still be up for a few years of travel and good living which will cost even more.
Blessings
That's nice. Maybe you'll live long enough to learn to use your excess money to help the needy. But as long as YOU'RE happy, right?
@@jeffw1267how about the “needy” help themselves. I worked HARD for my retirement
You are more blessed with health. That's more valuable than the money!
We seem to have a similar lifestyle! Do you live near the mountains or do you travel? Not trying to pry, but I am planning our next act and I am considering buying a mountain house. That or buy an expedition trailer/adventure van. Just curious.
Not surprised….my elderly parents are that way. There choice but they have been this way their entire life.
Dealing with retirement, if you love your work,stay as long as you can. If you disliked the job like me, at 55 I ran out the door.
One other thing…after just coming back from Europe. People there are in very good condition physically compared to North Americans. In short get exercising….become healthy.
People are afraid of long term care and catastrophic illness costs. I want to have enough money for a good end of life. Why don’t you address that issue? Medical expenses can wipe out an estate in a short time and leave a person destitute.
Exactly. It’s why I don’t like spending savings.
I think he did address it briefly when he discussed the barbell spending idea. I agree, at least for me, insurance is the big issue when thinking of early retirement.
This is true. And it’s the worst aspect of the US healthcare system; actually, it’s the only developed country where this is true, and the only one that calls healthcare an “industry”
Azul has talked about this topic in other videos. buy long-term care insurance in your early 50s or include it in your investing projections. know that many will pass away before that point. had a beloved colleague pass away unexpectedly last week at age 51. tomorrow is never guaranteed.
Yes. I am going through this. My husband had a stroke last year, he is 60 and requires max assistances for daily routines, of course he lost his job, two months after he was in a rehab/nursing home, the insurance denied his care, we have to pay private $253 per day for 5 months, in the meantime I got laid off while I was on FMLA, we now on cobra which costs $2000 a month. I’m a full time caregiver for my husband now, if I hire aids, it’s between $20-35/hour. My husband does get long term disability benefit and some long term care reimbursement (he bought it about 10 years ago), that helps a lot, so far I managed not to drain our savings yet by keeping our living cost to minimum, most go to food, insurances and his medical bills, we paid off the house a year before so we have no debts. Though I never planned to retire this early(56), but life happens. we are okay financially so far, but I do worry about the care and medical expenses and unforeseen health issues for myself even though I’m healthy and fit in genera, life is full of uncertainty.
Frankly the cost of long term care terrifies me. That’s why I continue to be frugal.
My personal experience, it cost 7-10k per month if you have to live in a nursing home and some of the places are terrible.
The thought of needing it at all scares me. I know what ICU and nursing homes look like. No thanks.
Just spend it all and Medicaid will take care of you if needed.
Working longer/being so frugal to spend your life in a long term care unit might not be what you might want to do. Maybe spend a little time volunteering at one of those places to see if you really want to 'live' in one of these facilities. It's an eye-opening experience.
It's a balancing act. Being the richest man in the cemetary isn't worth much. The other side...spending too much can make your remaining years miserable. `
In Asian cultures, we save more than we need to ensure our children and grandchildren have paid off educations and help with down payments….
You guys are doing it right!
What's with this constant "Retire now" drumbeat? Retirement isn't some sort of nirvana. Do what you enjoy. Enjoy every day. If you enjoy working, do it regardless of whether you can afford to retire. It's not necessary to spend all your assets before you die. Consider leaving a legacy to your family, community, educational institutions, charities, etc. One can't buy happiness by spending more and more money. For example, one well known family has an educational trust fund under which any person who was born with the family surname and could prove a relationship could get as much education as desired. Two sisters I knew went all the way to doctorate degrees with all tuition and living expenses paid by this family educational trust fund. This educational trust fund is continually replenished by the highly educated and successful family members whose education was paid for by the trust fund. Think beyond yourselves.
I fully agree with the "leaving a legacy to family, community, and church" (smile...smile).
I'm retired and my portfolio keeps growing. And we travel and spend.
Why not? I can always leave a legacy or use money for late life care.
I'd rather have too much money than not enough.
Amen
Money comes and money goes, time only goes.
This guys acts like you should TRY to spend all of your money in retirement. In fact, he's espoused a "die with zero" philosophy. While the democrats may make that happen, there is nothing that I want that I don't have, and don't enjoy spending just to spend. He needs to recognize that many, if not most, of us don't equate spending money with "fun".
@@jpmiller99 MAGA 🤡😅
@@pensacola321Let’s be honest, if any party is more apt to try draconian thefts of retirement accounts it’s unquestionably the Democrats.
I saved a good amount of money over the years. Retired at 66 (FRA). My savings is my "farm". It grows dividends and interest.I live off of that income and leave the principle alone. If I don't use all the income, it gets reinvested into the farm so I can grow more "crops" next year. I have no long term care insurance. If I or the spouse need it later, maybe we have to sell some or all the farm to take care of our infirm time. If it doesn't get spent, well I have 3 kids and 3 grandkids. I bet they can find a way to enjoy the dough
Azul, your advice is spot on. I retired at 58 even though I could have done so earlier. 6 months later I was diagnosed with a severely leaking heart valve. I go for surgery in a few days and I’ll be fine. But you just never know, it could have been much worse.
You contradict yourself by saying don't worry.....and then WORRY.....about the health care expense statistics.
based on all the forums and retiree's that I speak with, I would guess that 90% of them all spend less than they thought they would and also have more in savings than when they originally retired.
Yes...but this forum doesn't count as much. It's like going to the gym to survey the percentage of overweight people. Well, the gym is where people exercise. My "gut" (no pun intended) tells me that there will be far more overweight people at the local beer tavern, than at the gym.
but the people on this forum are the gym people in your example. the planners, actively engaged in preparing and planning a retirement. That's my crowd that I will survey. @@JohnBowl14690
I'm 74, retired for 16 years, and have more savings now than when I retired. About 50%. I spend less than 1/2 of my investment income these days so I have to keep on investing. I guess the kids will get the swag later. The kind of people who plan for retirement are the kind that continue doing that in retirement. I feel guilty spending more money even now.
I continuously wonder why the US-American people don't insist of our leaders that we have a European style health care system. It is nuts that we all have to worry about falling ill in retirement. Everyone falls ill in old age. Europeans don't worry about those things from a financial point of view. Get sick - go to the hospital. In USA - get sick and go to bankruptcy court. Europeans don't need to have as Azul says an "Oh no" account.
We are not socialist. Don’t rely on the govt to take care of you. Your healthcare will go to the lowest bidder and give you the lowest level most money efficient care that they want to spend on you. If you are old, they will encourage you to die. You are a drain on the system as you are no longer producing for society. No thanks to that kind of system.
@@jdeang3531We are socialist in many areas, Cletus.
We have this in Canada. However we pay more taxes up front. Income tax raises quickly and around 100k CAD you are close to 50% marginal rate for every extra dollar you earn. 50k annual income is not taxed much similar to the US. So high earners are much higher taxes here vs US. Also 13% combined federal and provincial sales tax. It’s give and take…
I'd rather make my own decisions with MY money. That includes Social Security.
Move to Alberta..........only 5% gst tax. No provincial tax here.@@woodrmp1
Die With Zero. That book was a good advise. Thanks for mentioning it.
If America ever went to single-payer for the vast majority of our healthcare, I'd retire TODAY. Long-term disability care is hyper-expensive and the quality is terrifyingly bad. Better to have it and not need it than to die in poverty and humiliation. He said at about 12:00 than 80% of us will need long-term care. *80%* It's all well and good to talk about retiring while we're young enough to enjoy it, but part of enjoying retirement has GOT TO BE *NOT LIVING IN FEAR.*
If America ever had the sense to go Single Payer the change would be instant and would boost the economy greatly. Think of how many people free from worry about insurance coverage would quit their jobs and start new businesses! Big business would recognize significant savings also.
I told my wealth advisor if there is money left over when I die, my family would be welcome to it. My goal is to spend it all. Maybe 50,000 left over for funeral expenses. That is my goal.
If we only knew when we will die ?
I plan to leave at least 1/3 of my wealth to my kids, my goal is to leave 2x or more of my wealth based on the amount on the day I retire.
When I look at my retirement model to cover my living expenses to age 95 from income generation not principal, adjusted for inflation and moderate returns in retirement, my retirement will grow, even with forced RMDs.
Good luck!
My goal is check to the undertaker bounces.
I'm an early retiree and yes, I am scared as hell about running out of money despite "the numbers" say we're OK.
I'm a early Retiree my concern is not my spending but government spending
Healthcare and end of life costs needs to be addressed by Congress but never will. A lifetime of savings can be wiped out by an illness. It shouldn’t be this way.
I just saw a video where a man breaks down how his mother's $708,000 cancer treatment was paid for. She had Medicare, Medicare plan B, then supplement plan G. She only paid about $7,000 out of pocket.
Simple solution. Buy insurance. No need for 'government' to do anything.
@@ArthurDentZaphodBeeb and government "solutions" tend to make things worse. One of the reasons healthcare is such as mess in this country is due to all the government meddling.
@@dkstudioart Most governments around the world handle healthcare and do ok. The US has the worst of both worlds. For-profit healthcare with a hefty dose of regulation to ensure medicine is priced as high as possible.
That would probably be more taxation of people who have money, to give better care to people who don’t have money. It won’t help people with money get better care.
@Azul Could you please clarify something for me? I searched for the data source to read detailed methodology, but only found a summary on BlackRock's site. I wasn't able to determine whether the 80% of savings most retirees still had after 20 years in retirement was a nominal measurement or an inflation adjusted measurement. If it's nominal then it would suggest that spending isn't too conservative.
After watching many of Azul's videos, he nearly has me talked into pulling the plug!!!😊😊😊
Me too!
Agree, but I usually error on the side of caution. These inflationary times tell me to work a little more than I need to just in case. But yeah...Azul gives a lot of good food for thought. However, I personally believe the stock market is headed for a 20% correction this year or early next year. For me, I will save a little extra just in case.
Just do it...work it out
I got out at 53 (am 57 now) and have no regrets but I do live a simple life, I couldn't spend money at the rate that Azul seems to and feel confident.
@@dkstudioart Congrats!!!
Keep in mind that a lot of these retirees were fortunate to be a part of the unprecedented bull run following the crash in 2008.
But they lost half the value of what they had in the market before 2008 and chances are most weren't able to invest much if any extra to take advantage of that post 2008 "bull run". It all averages out in the end, the winners take a long view of investing, at least 15-20 years, not one year to the next. My 401k lost half it's value in 2008, I retired 11 years later and it was worth 10 times as much (I did not accelerate my contributions until about 2015), but only 5 times as much as it was worth in 2007, just a matter of which window you look at.
At the end of the day TIMING is everything.
Funny you only talk about the bull run and NOT the crash that happened prior. Many (not I) bailed out at the bottom and didn't get back in to reap the benefits.
Wow, what can I say, Azul? Beautiful, sound, and encouraging advice to all your viewers. Thank you so much for this kind of information. P.S. I love the walks again!
I bought a first class ticket last week since I am supremely frugal and have a “fine amount”. Why not make a stressful situation less stressful if money isn’t an issue? At 74 I enjoy travel but realize it comes with suboptimal moments. Twenty-plus years ago I bought a lifetime membership to the Admiral’s Club. Fabulous “investment” to make travel less gruesome.
I live in Canada, so I’m fortunate that I don’t have to worry as much about health care costs in retirement. In fact, I’m retiring soon and am considering not even continuing my health care insurance plan and just paying for the out of pocket costs as we go. Many people do that in Canada, especially after age 65, when there is also a government sponsored drug plan. I also have quite a few friends who have been retired for more than five years and have had a fun retirement so far, and they have more money in their portfolio now than when they retired and the value of their home has also increased. I think you have to keep this in mind in the early years of retirement and not be too frugal. As some of my retired friends now say “if we don’t fly business class - our kids will!” 😂
May not need to worry about cost but good luck with getting care when needed.
My Canadian friend has buried her parents in the last few years due to lack of access to imaging technology and cancer treatment.
Canada's solution to the cost of old age, "Oh, you're sad and broke? Let us help you end your life, no cost".
You're right, as a Canadian you don't have to worry about health care because...you don't really have any to speak of. You have nothing to worry about. You have accepted the incredible level of mediocrity and poor outcomes represented by the system, and the risks it implies for you. All the best.
@@feldhdlehjust like you have accepted the extortionate health care costs in the USA?
Too many retirees waist their lives in fear of running out of money or wanting to leave money for their heirs. I want to enjoy everyday of retirement. The best thing folks can do is focus on income generating assets. Leave those for your heirs, but enjoy the income.
luv ya like a brother, Azul, but your walk & talk videos don't need background music or drumbeats. let your environment be your music. the visual aids are great, though. thanks for all you're doing.
You are in the Slabtown district of Portland, Oregon 👍🏻
story idea: what to do if your spouse doesn't want to retire when you do. I'm 65 and he is trying to get a brand new job, while I dream of going places or moving.
Get a "pool boy".
Sorry about that, no easy solution if you are certain there is enough money to retire and he just wants to keep working. He may be working because he isn't sure you have enough saved. My wife worked another year after I did as she was concerned we didn't have enough so it gave her peace of mind. Then she realized we did have enough and decided to join me in the great fun I was having. I knew one couple that bought a winter home and the wife moved there for 3-4 months and the husband visited a couple times over the last few years he worked.
However, if money isn't an issue ..... if he doesn't have interests outside of work and knows he will be bored and just sit home .... working is better for his health. Do you have any chance to travel with friends ? When working, I used to take hiking trips with buddies every few years. My wife went to Europe with a girlfriend and her daughter. There are often good last minute deals on Gate1 website - we have taken a couple Italy trips for $6-800 each with flight and hotel. If you can retire and start traveling a few times with friends, perhaps he will see you having fun and decide to join. But some people just love to work forever and if he is one, separate trips might help. Also, maybe he can take more vacation time to travel or move to part time. It is a difficult transition for many and everyone approaches it differently. Good luck sorting through it.
I recommend Chad@@aquamansrdc
Hi Azul, I wrote this report in 2019 when I headed up content for their retirement institute. I’m pleasantly surprised they republished this paper 4 years later. At Capital Group now. Love your channel. Great stuff!
Kiyosaki’s reason for his stock market crashes prediction is that the elderly will spend down there retirement funds … Looks like that reasoning was very faulty VERY faulty 😂
It's the mindless lemmings that think the 4% rule is needed to retire. People can prob spend 5%-7% a year easy if you can have the flexibility to cut back a little bit in downturns. This also means spending more during upswings.
Retire in Thailand-max-2K USD modern condo-with pretty Thai nurse -24 hours-healthy food-pools/saunas/jacuzzi
Certainly people are 1) afraid of death and 2) afraid of being broke while out of work. Spending your retirement nest egg implies you acknowledge that you will die one day, while if you don't spend it, you infer you will live a lot longer. And to the second point, we always assume the worst that we will suffer a market downturn or massive financial need out of no where. No wonder people hoard their assets and just live off the income.
Just goes to show how stupid it is to live for 40 years like you're poor. What a waste of time! You'll never get it back. Spend your money when you can still walk.
I have a monthly budget plan for retirment, which is more than I spend now. However, I also have no intention on spending down my assets. Simply because I don't equate an expensive lifestyle, trips (experiences), with a high quality of life. There is nothing that I want that I don't have. There is nowhere that I want to go that I don't go. Azul seems seems to think that staying at 5 star hotels and eating expensive meals makes you happier. Personally, it makes me feel like I was ripped off. Many of us don't equal "spending more" with a higher quality of life.
I completely agree with you. I like to travel, but it absolutely can be modest and very enjoyable. I wouldn’t fit in at a five star hotel and I hate feeling like a got ripped off. My sister and I are taking a road trip this summer and someone recommended an all inclusive place for part of the trip. $750 per night! Other nice places nearby were less than $200/night. Besides being cheaper, I think my interests and activities will align better with the people at the cheaper place.
I kind of disagree. I just bought a new car with all the bells and whistles and it made me very happy. Whenever I cheap myself out and buy something sub-par it makes me sad.
I think you're missing the point that Azul is trying to make. He's only giving the 5 star hotels or flying first class as an example. It's about whatever experience makes you happy.
For many planners, this is success. My goal is to set up a means of production investment that will provide income in perpetuity when combined with social security. Having 80% left after 20 years is intentional and a win. To set up your investments to try and die with zero is a dangerous plan indeed. Sure, you could die young. You could also live to 100. In my opinion, people focus too much on the former when planning their investments.
Part of my retirement is not only to take care of me and my husband but also give a bit to my kids later
I think that 80% number just shows that people are planning well for retirement. I know that a lot of people subscribe to the die with nothing line of thought, I plan to have assets to support me and my spouse indefinitely and hopefully leave enough to give family members a big leg up.
Is there a link to the Blackrock report?
The thought of giving a fortune to healthcare companies in your last few years (when quality of life is poor) is reprehensible. Second, I certainly don't want my loved ones to see me at my physical/mental worst - despite the financial expense. Canada has done a great job at addressing both. Their taxes pay for much of their healthcare and their laws allow physicians to help people control their own exit (assuming conditions are met). I understand that the latter is controversial (likely heresy), but leaving on your terms with time to say proper goodbyes is a compelling scenario.
those Fidelity data presented is a bit biased since it comes from Fidelity Health which likes to sell expensive annuities just. Always check the profit motivations of any report. Second, the report's footnotes clearly state the data assumes no employer provided retiree insurance or private health insurance. Again, if you use big scary numbers and your profit motive is to sell financial products, that should give you pause when they purposely omit things like other coverage that offset health care costs.
More than a handful of states have right to die states. I'll go or be taken there.
I just watched a video where a man breaks down how his mother's $708,000 cancer treatment was paid for. She had Medicare, Medicare part B, and supplement plan G. She paid only $7,000 out of pocket.
Who should pay for it? The government, aka, other taxpayers. There is Medicaid once you deplete your assets.
@@edennis8578 I've wondered about that with my Mom. She retired at 62 with very little money (and a mortgage) and is 78 now. She hasn't had any major medical issues but has had a couple minor surgeries, and other regular medical expenses but she gets by. She has to live very frugal and depends on a small amount of income from renting out her basement but like I said she had very little savings to begin with so she's living mostly on SS and a very small pension. If she was paying a lot of of pocket for even the relatively minor medical issues she's had she'd be in serious trouble. (hip replacement isn't cancer, but it ain't cheap!).
It is difficult to feel secure on the American system.
A lack of guarantees d pensions, and medical and long-term care expenses are frightening.
Social Security is a partial pension that most Americans have. Some people manage to live ok on Social Security alone. Some are trying to delete it rather than fix it though.
There are pensions out there. You make a choice to have a career with a pension or without. I made a choice with a pension, retired at 58. No regrets.
You also make a choice to invest early and often to create your own pension. That’s what most of us 40 and younger have to do.
I think pensions are more scary. You have no control over how the money is managed, many pensions have failed, become insolvent or even taken over by the government. A pension is not your money, at best they are a loan owed to you and you just hope the debtor pays up when you need it. Much better to save and invest from an early age, the markets in general almost always outperform any pension.
There is potential for considerable wealth increase with the correct strategy. I want to know; How can one take advantage of compound interest and potentially grow your retirement savings/net-worth to about $3M over time?
An effective strategy serves as a cornerstone in an investor's portfolio. As the level of risk increases, so does the potential for reward, making it essential to seek advice from experienced professionals for making sound decisions.
Precise asset allocation is crucial, with some employing hedging strategies or allocating to defensive assets for market downturns. Expert guidance is vital for success. This approach has kept me financially secure for over five years, yielding almost $1 million in investment returns.
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
Karen Leigh Owens is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
A lot of it is due to the healthcare fear and running out of money. Having lost both of my parents recently close together and my mother having bad Alzheimer's for years, its frightening the cost of getting help (let alone GOOD help) if there is a long illness or need care. She broke her hip and it was downhill from there. But its kind of twisted because somewhere in the back our mind we figure if we just keep working, maybe we won't have a long illness or something. It's just not true. If anything I have learned, retire when it's time and not keep working due to fear or waiting until the money pile rivals Bill Gates (joke).
You supplemental health insurance is everything. I just watched a video where a man breaks down how his mother's $708,000 cancer treatment was paid for. She had Medicare, Medicare part B, and supplement plan G. Without plan G, she would have had to pay over $300,000 of that bill. With plan G, she only paid $7,000 out of pocket.
@@edennis8578 Good to know, thanks! Where can I find the video?
Hey Azul, thanks for your content! Definitely looks like Portland Oregon in the Pearl District! 🙂
I just don’t understand why you won’t mention/discuss bitcoin!
I plan on having more than 100% of my money after 20 years.
Working as a paramedic for over 22 years, I’ve seen many elderly that have nothing, are broke, and it’s terrifying! Conclusion, plan to spend only up to the point where your portfolio will replenish and pace inflation. You might live past 90, you never know
This a retire early theme channel. I get what you thinking. I seen more often elderly having nothing but the home. They usually die with more assets because of the home equity not savings.
Yep, you never know when your time is up. All I can do is make a prediction based on the longevity of previous/older family members and it seems like odds are I'll make it another 25-30 years, but I had a great grandfather that made it past 90 and the last few years of his life were downright awful, he was just shy of being a vegetable, just sat in a chair staring into space all day, needed help with anything else, lucky for him he had family to take care of him, but imagine having no family or money and be in that condition, now that thought is scary as hell.
It's our generation. We were taught to live BELOW your means and save. Today's kids gotta have the latest iPhone, travel and post on social media, get daily Starbucks, and have a dozen streaming services. 🤦
Oh stereotypes.
I want to have more when I die than when I retire. It’s basically a requisite for my legacy planning.
YES!
My heirs may or may not be spendthrifts, or they may be able to get a leg up. My grandfather took a small inheritance and bought a small business which they successfully ran for 25 years until they decided to move on to other things. They were shanty-dwellers in the Depression & the inheritance saved them.
That’s my plan
That tells me retirees can spend more or retire sooner. Withdrawal more than 4%? Some people don't mind working. I think Buffet could have retired a couple years ago. 😂
This idea that spending money goes down throughout retirement isn't true for many. Many people do NOT have a high percentage of discretionary expenses. That travel and entertainment budget might be 10% overall expenses. While food, taxes, food, home maintenance go up throughout retirement.
Then healthcare expenses kicks in.
I got a fee only advisor, as Azul suggested, he said I can retire now, but maybe I want to wait until Medicare kicks in. I've marked July 1st, 0700, as my retirement date. Look for the smoking, melted linoleum as I blaze out of the building to my car.
Four months living expenses is nothing. If you're so excited to leave, you shouldn't wait!
The Teamsters Union provides a supplement in retirement for $250 a month to maintain our cadillac healthcare in retirement. Thank you James Riddle Hoffa. ❤
I plan to retire early in the next 2-3 years; transitioning a small percent of my assets to income generation that will cover my estimated living expenses in retirement, not including social security; leaving most or all of my principal to continue to grow or generate income.
I've been tracking my actuals, and my retirement model in a spreadsheet for many years, adjusting along the way. Now I'm putting my retirement model into place before I retire.
This Black Rock study says nothing about retirees asset profiles. If they are already 20+ years in many likely have defined benefit pensions. Thus they have unique advantage but also likely lower liquid assets. The basic rule for interpretting any study are the underlying details. Without this you may reach wrong conclusion.
I found report by Board of Governors 9f Federal Reserve published May 2021. The percent of individuals over 65 years old at that time with pensions was 68%! But the caveat for pensions is they are not typically indexed for inflation. Considering the lunacy of what has happened since 2020 with inflation at 19.75% versus the prior histoical rate which would net out at ~ 8% over the same 4 year period it is 2.5X the rate. It is no wonder people are concerned. Yet they will keep voting for irresponsible Blue and Purple spendthrifts in our federal, state, and large metro governments.
Exactly! It's super important to know the total picture. In my opinion...the person that had $500K in savings 3 years ago, today only has $350K due to inflation unless they had every penny in the stock market. Most retirees don't and have allocated money into fixed income.
It really depends on your starting point. If you spend more than 4% of your savings per year, then there is a risk of running out before you're done. I'd rather hold to 4% or a little less, and hope that ten years on my NW will have increased so what I can take out can increase as well. I will only feel secure if my portfolio is increasing. (at least until my late '70s or early '80s)
I respectfully disagree. Many of my "early retirement friends" had to go back to work after 5 years of retirement due to recent inflation and miss planing their spending.Their worth in the market place was far less for the exchange of their time. The stress these friends have is significant. My parents and my wife's parents both ran out of money and thank goodness we were able to get them over the finish line. Don't fall for this and be stupid.
Oh man, you’re selling out to Woke Blackrock. So disappointing.
The statement highlighted in the article says 'A65 year old retiring today "could" spend $157k'.
Is there a better statistic for this? A 65 year old retiring today "could" win the lottery, but the odds are extremely low. Are there better statistics on this? Mean average expected costs?
Missing a lot of context if you don't break it down by value. Someone with $1m+ is a lot more likely to have 80% left than someone with $250k.
Hi, I cannot find the white paper that you referenced in this video.
The Fidelity $150k stat is very dubious. Healthcare is worth a separate video.
Saving for 40 years.. almost impossible to become a happy spender.. just not in my dna
I can see how this can happen using the 4% withdrawal rule. If you are averaging a 10% annual return from the S & P 500 and only withdrawing 4%, You savings will continue to grow. I have seen some withdrawal programs that are age adjusted. I am going to look into that as I am starting my withdraws after I'm 70 years old.
I'm one of the people who's finding it hard to switch from saving to spending. I see the reports and income projections, I see what to me are incredible figures supporting spending, but it's all in my head. My current circumstances are limiting but I've realized that I'm exaggerating those limitations. I'm easing into spending more and saving less.
It takes a while to get your retirement sea legs...
Same here…
An Asset makes you money. A True Asset should still be 100% in place after retirement, provided you invested enough into assets to retire with income from that asset that exceeds your needs. If not then it is really just a savings account by another name and not a true asset. If my IRA gains 3.5% but the cost if living is increasing at 7% per year, then that IRA chouce was not the best choice. Definately NOT what I call an asset.
Basically you’re talking about people who have net worth in the millions. Boomers who benefited from every bubble and entitlement going. Probably doesn’t apply to most people in their 50s and below
A lot of millennials were instructed by their parents to invest in the company, 401(k), and or a IRA. A lot of us were diligent about investing in our 401(k)s, and now we are not allowed to retire early with our money. We also might fall under the old pension plan which would allow usto easily retire. Thanks to uncle Sam, we are not allowed to enjoy life when we should.
I should hope that a retiree has kept pace with inflation. $1M in 2007 must be 1.46M in 2024 to break even. So when you state 1/3 of retirees have more money than they did 20 years prior, keep inflation in mind. Secondly, one of the goals many retirees have is to be able to provide for the education, business supplements, ability to buy housing, etc., for their children and grandchildren. Those are admirable goals. Also some retirees wish to have money left over to give to charities of their choice. So this is not a matter of greed, but rather goals of improving the lives of the descendents. You make it sound that this is a mistake. Try to see the bigger picture.
That's good to have 80% of your retirement savings after 20 years. The idea is NOT to run out of money.
Question : what was the average and or median amount of money of people in this report at retirement. My guess, if it's Blackrock, the average would be at least several millions. So the point of this vid is... if you have lots of money you will be fine in retirement. Got it.
I’ve been listening to you Azul for months. Sometimes your ideas have spoken of the situation I see myself in but often your ideas do not. Does a net worth of just north of two million make a person wealthy? There is one reason I will retire with some solace. It’s not my net worth . I’m fairly confident I will have a pension. The date I can draw on the pension without penalty is set for me by the owners of big business, the oligarchs. They established the date my pension can be accessed without penalty through the politicians who represent them. They decided 65 for me. They push to raise retirement for those younger than me to 70 and have done a 40 year bang up job of dissolving pensions creating a societal disaster in the form of steadily increasing wealth disparity that will cause every ill of a 3rd world country no matter how many memes remark about our “1st world problems”. A pension is something most don’t have. I suppose it’s too sobering to talk about the ex-pats who are in Latin America because there’s no way they could have more than a diminished existence in their country of origin upon retirement. Retire at 50? What percentage are you speaking to? The delusional? The rare bird? Working class wages are a finely regulated overhead of the controlling shareholders of the United States. Unless one is wealthy enough to have a summer palace to flee to like the good old world days, I expect a steady rise in violent organized crime over the next few years in the nation we were born and raised in.
I have a plan and will likely leave a lot of money. We spend anything we want.
There is a comfort having a buffer for emergencies.
LOL. Why I retired at 52. I plan on dying broke in my 80's.
The safest way to retire is when you have enough capital to live off the returns and not need to touch the capital.
I've got a friend who's mother has a fair amount of investment income. So she's got plenty in the bank and it's still coming in by the bucket-fulls. And to listen to her you'd think she's about to spend her last dime. But I get it. She was born during the great depression and she and her husband had plenty of lean years getting started. But even for people that didn't go through the great depression it's hard to spend that dollar. When you spend it, it's gone, and later you may be sorry you don't have it. And so retirees sit on piles of money, afraid to spend any. I know I'll have trouble spending my money.
Me too
Why have a gender breakdown for financial security?
If you want to retire early you probably picked the wrong profession/job. The majority of your life and virtually all of your youth will be spent before retirement. Do something you love to do, or at the very leastlearn to love what you do. Life is way too short to waste it doing something you hate.
My mother passed away without hardly spending any of her retirement savings. Despite encouragement from me to do the traveling she wanted to do and enjoy her retirement years more. She just had a hard time spending that money she worked her whole adult life to accumulate.
Azul - can you add the link to the report?
This guy might be a nice guy. But I just don't trust him. It's all about the money to him. The money he makes on these videos or money he can charge you.
I don’t consider going to 5 star hotels and eating at fancy restaurants as an improvement to my lifestyle.
I hear you. I think these financial industries have a vested interest in having people over save. It is good for this business but not great for the saver and other businesses. My husband and I are super savers and I imagine we will leave a lot to our kids.
I don’t see a link T the Blackrock report.
I would love to see it too…
Welcome to Portland, Azul! You were walking around in my NW neighborhood! Go eat at Eem if you can (it's in NE though). Hope you enjoy the city, and thanks for all your advice.
I LOVED Portland. I initially planned on being there a weekend but ended up staying an entire week. I vibed with your town and the people. “Keep Portland Wierd” 😎
@@AzulWellsAwesome! I can see how it would match your personality. ☺Does that mean you'll be back? Would love to meet up if you do or just give you recommendations of the best places to eat and drink!
I hope my assets continue to grow through retirement. I’d like to give my children as large a cushion as possible. I find enjoyment in trying to grow my accounts
I've been retired for 3 years and I have 8% more than I did in 2021.
@@WesternReaper84 Logic is flawed. Yes, inflation is about 3% but 8% of 7 figures is much greater. Inflation hits folks unevenly. Credit card debt for those with a balance is a huge impact. I don't have any unpaid balance. House recently purchased? Mine is paid off. Car payments? Don't have that either. Food is a big cost for families. Just my wife and I and I go on senior discount day! Not trying to be a jerk but I'm a details kind of guy. Semper Fi Cormac Jarhead4Life
I plan to retire with portfolio rising and not dipping. In other words, return from investment will exceed my estimated expense by 50%. This way I will ensure that my net worth will likely increase on my retirement. I need that keep myself sane as I play very aggressively on the stock market. I need a buffer to keep me safe.
Excellent advice and appreciate that it’s based upon your 20 years of experience and observation of many clients and their outcomes. Thank you Azul.
We will see what Black rock and you say after we get a dose of Hyper inflation.
The wife and I have been retired for the last couple of years. Our best move was to start working with a Financial Advisor a few years back. We have grown our portfolio way beyond our expectations. I would encourage anyone that doesn’t do that now to start. While I still have concerns about our financial outlook going forward it’s only because that’s the way mind works. Looking at the projections (which are very conservative) we will be fine. I’m glad we made the move. I appreciate your videos and ideas.
Azul are you accepting new clients?
Great job again - love your content!