Hello, I am due for retirement in two years, I'm a senior citizen but I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $50K per year but nothing to show for it yet.
In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory.
I think you're better off with majority investment in S&P500 and uprising equities cos they always outperform. Also speaking with an advisor can help with pointers. I've been in contact with one I reached through commentaries here, she has been really helpful.
At this moment, things appear to be odd. Inflation is reducing the value of the US dollar, but it is strengthening in comparison to other currencies and commodities like real estate and gold. People are switching to the dollar because they believe it is safer. I worry that the rising cost of living may cause the value of my retirement savings to decline.
the only reason you seem to be Panicking , is because you have had money sitting idle for a long time, where you could have netted 2x of whatever you have saved investing in financial markets . I think you need a financial advisor to help you .
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfoIlo allocation
Viviana Marisa Coelho is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.
1) we don’t need $1M to retire. Downgrade and minimize, as I got older the less stuff want to take care of. 2) focus on your health instead. Having a healthy retirement is more important than having $1M.
Your information is better than I ever received before I retired 11 years ago. I hope people are listening to you and taking advantage of your advice. Thank you ❤
Thank you for showing compassion for folks that may have not been so good at saving. We struggle with enough guilt. Love your channel. Thanks Geoff ❤️🌵
@@coastalhillbilly3419 I thank my 20 year old self frequently for self teaching about saving & investing. This was before computers and the internet as we know today. I made trips to the local library to read articles from the likes of Money and Fortune magazines, and WSJ and Barrons paper. You may also find me in the university student union lounge watching CNBC between classes. I guess my point is, if you grind when you are young, you may not need to later in life when bones and backs start to ache, energy decreases, etc., such as the 40s in my case.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for....
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
I stayed home many years with 4 kids, so I was a late bloomer (almost 50) on retirement savings. Managed expenses, 10% match from employer, worked 2nd job, and retired debt free at 65. Blessed to have enough - not rich, not poor - but grateful for what I have, and 4 great kids ❤
I stayed home with my children as well, with a similar type plan. What I didn't plan on was getting several serious chronic illnesses that have interrupted the plan, putting me in the under 10k group. However my adult children are so wonderful that I have no regrets. They both have college degrees and I believe they will help me if I need help beyond tightening the belt as you say. 😊
Thank you for sharing factual information. 49% have less than 10k saved. I know a-lot of people that it was never a priority and no one pushed it. I focus on my health, exercise, then money. You will need those millions if you have poor health. Eat right, exercise, be frugal. We came into this world with nothing and will leave with nothing.❤🙏
My brother in law has No Cash savings… only Social Security of $1,700 a month at age 68. He scrapes by. My sister in law has zero saved, age 62 and works under the table.. so her social security is $450 a month!!
The video is a bit confusing. He states that the median from the one survey is 200k. That means that 50% have greater than 200k saved and 50% have less than 200k saved. This does not seem to match up with 49% have less than 10k saved from the other survey. The numbers for the bottom 50% and bottom 49% should be nearly the same.
@@CartersLearning I'm rewatching this but I'm trying to determine if the 50% under 200k are also under 10k. It's scary shocking how many people it just was never a thing. I've worked in Corporate 27 years and contribution/matching 401k/403b/IRA was the least talked about thing. Maybe 3 out of 10 employees ever discussed it openly. I would like to think that this 49% has more than 10k but I would not be shocked if not. Financial advisors says it is common to have someone 50+ come in needing a plan to start and catch up. If most only knew back in their 20's what they know now. 🤔
My kids are in college and started Roth IRAs in high school. Both had $10,000 in their accounts by age 18. Hopefully, they can keep contributing monthly for the rest of their lives and be millionaires by age 40.
@@brucesmith9144 me too, but the fact that they still pop up on RUclips, can’t even detect them even though all of us can see them instantly makes me think RUclips doesn’t even care
@@patty109109 Give them a break - it's like frickin' whack-a-mole - and I'd be the last person to defend a corporation - but seriously, that is an impossible task.
As someone approaching 60, I can relate to the stress of thinking about retirement savings. A friend of mine recently retired and found out she was way behind but is now making the most of it by budgeting smartly. It's never too late to adjust!
Planning ahead can really minimize taxes! I’ve made a smart reinvestments, especially with some great guidance from a pro for a half year now, and it’s been a game changer. I was able to reinvest my RMD strategically, and I’m now pulling in about $25k a week, despite doing very little trading myself. It’s a nice cushion against financial stress. Best of luck with your RMD decisions!
I’ve been saving for a long time instead of investing, and right now I only have about $516k. I'm not sure how to make it grow into something substantial that I might use for retirement. I’m just here for ideas
I just use RUclips for research purposes, I run all my major investment through an investment adviser, the market is just too unstable to handle things on your own. I have consistently restructure and diversify my portfolio/expenses and I’ve made over $3million in gains in close to a decade of having one
Thank you for sharing, I must say, Marissa appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive. I reached out and scheduled a call.
I’m 53, at 60 I’m projected to have $250k in a 401k and $100k in a Roth, also I currently have $300k in equity in 2 properties, which should be $400k at 60. I feel like I’m behind, but I know I’m doing better than most.
12:00 Delaying retirement is huge. I'm 59 and originally planned to retire at age 58. But, for each additional year I work, my projected net worth a retirement improves by about $200k, because we continue to add about $100k to our investments and mortgage debt reduction instead of using $100k of retirement funds. I'm still in pretty good shape physically and in good health, and now plan to work to Medicare age and might even work to age 67.
We're fortunate that we're ahead of the average. I wasn't really a high wage earner, I was paid well but nothing extreme by any means. But if you live below your means, avoid debt, and keep investing you can build up a nice chunk of change over time.
I only really started saving at age 50 since I was doing contract work for 10 years. I had $0.04 in my only active 401k. I consumed my old $100,000 when changing careers when age 40. So, at age 61, I just now passed $510,000. Aggressive savings and general mutual funds and Roths. Nothing “get rich quick” So, I am “average” for a high income… but drive beat up car, no fancy trips, nothing expensive. So, by my own calculations and Fidelity and Other calculator, at age 67, putting away $40,000 a year, stock market 9% return, will just hit $1.1 million then an ok retirement. Nothing great… just doing ok.
My goal when I started saving for retirement was to be able to continue living at the same level as when I worked. I was fortunate and I actually make more money in retirement than I did while I worked. Most of my interest do not cost a lot of money so I am fine. Everyone has a different vision of their retirement. Mine is skiing at my home ski mountain, hiking, backpacking, bike riding and going to the beach. I don’t eat out a lot and live pretty simple. I don’t have any plans to travel the world but I do take a big trip from time to time. Everyone needs a different amount to feel comfortable.
I am absolutely floored that 49% of 65+ who are retiring have less than $10,000. I don't know why but I just assumed that would be maybe 20-30 percent of the population at most.
I was totally shocked by that number! $10K isn’t really a retirement fund. This is why people have to work into their seventies and/or rely on social security.
It’s only recently that employers are being compelled by some laws or voluntarily making 401ks opt out. There was. A very long time in which people didn’t understand 401ks and opting in. A horrible oversight by companies, to remove pensions and replace with an opt in system. But they were happy to drop the pensions off their books. Another failure of leadership by business comes back to hurt all of America.
I live in So-Cal and I'm 56. I have way more than I need to retire for the rest of my life in some modest town in Pennsylvania, or to put it another way, enough to last about 18 months in Los Angeles. It's very much all about where you retire and what kind of lifestyle and home you want to sustain. Downsizing is a good idea, too many people think a two person house needs 3000 square feet or more, it's just idiocy, 1500 square feet is very roomy for two, 1250 should be quite doable, 1000 not even that bad if you are smart about it.
I’m 60 and my wife 54 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle in the stock market made it possible for us this early even till now we earn weekly.
There are many independent advisors to choose from. But I work with Laura Grace Abels and we've been working together for almost four years and she's fantastic. You could check her if she meets your requirements.
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!
That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!
When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
I turned sixty in March, my current assets are about 1.2 million. I've worked as a truck driver for the past 34 years. I enrolled in our company 401k right away and was lucky enough to find a good advisor a few years later. I've been with my financial group for quite some time now. My goal was to be able to retire at 60. I've chosen to hold off a year because of the state of our country and rising cost of living over the past three years. I find amazing that at the age of 60 most people haven't saved more than $200,000 for their retirement. I don't consider myself smarter than the average Joe. I do know that because of a family genetic illness(Alzheimer's) I want to retire early assuming that my quality of life will be shorter.
I'm three years behind you with the same assets [wife included], and also a March birthday! You couldn't have said it any better, and alzheimers also runs in my family. I hope to retire at 64. Good luck to you!!!
I am 60, still working full time because I refuse to pay out of pocket for health insurance. We own our house free and clear and other than cruises, we live modestly. I car I house zero debt about 750k in savings. House worth about 300k.
I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my goals?
Agreed, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year, summing up approx. $650k ROI. I and my FA are working on a 7 figure ballpark goal, though this could take another year.
Karen Lynne Chess is the licensed advisor I use. Just research the name. You’d find necessary details to work with and set up an appointment if you like.
The market has been gangbusters the last few years, and my portfolio is doing great with a nearly 9% return on average. If your portfolio is underperforming, it's certainly not because of the US economy which is actually doing well relative to the rest of the world. Sounds more like your 401k investment elections were less than ideal. If you don't know what you're doing (which is okay, most don't), I recommend just going with the targeted retirement age funds offered by your plan. They will automatically adjust your allocations to match your current age to put you on the right track to aggressively maximize your gains before going conservative as you near retirement.
Retirement starts when you are young. I planned early,boughtba house,paid it off early,saved alot of my income from 30 to 45,then began working only part time and enjoyed life without alot of stress,retired at 60,traveled for 5 years,then was asked to return to work at 65,and now work part time,and take off all summer. I have a simple life,but always had a plan.
Thank you so much for this video. I’m not retiring for a long time but aggressively save for it thinking I needed like $1.5M. Your video has shed light on this topic for me.
I need a way to draw up a plan to set up for retirement while still earning passive income to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket. i want to invest around $250K savings.
Don't put all your eggs in one basket; instead, diversify into different asset classes to mitigate risk. If you lack extensive knowledge, consult a financial advisor.
Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 300K cash earning 5.25 interest, 685k in 401k, 250k cash account, 120k in car assets ( paid off cars) Gold and silver bars. age is 64. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
Here is the deal: I don't have a car. I don't have cable or any streaming services or subscriptions. I never eat out -- breakfast, lunch, or dinner. I don't drink anything but water --- ever. I don't gamble, smoke, or do any drugs. I don't go on vacations. No coffee or booze, as noted earlier. I don't use the internet to buy anything -- ever. Practice this and you can easily live off of about 20k a year. Practice this, and truly retire early or retire stress free. What I do: Library, outdoor exploring/hiking, Reading, Exercise, Cook, Love.
Only about 3% of savers have 1M or more in retirement accounts. I think it’s a good ambition to have that but clearly it’s not a requirement to retire.
As a certified counselor/teacher for the Late Larry Burkette and Dave Ramsey, I fictitiously inquired with my colleges on my retirement. They said work 10 more years and don't rely on social(insecurity). I am way above the "Pew" and somewhat above the "Median". If I had stayed in the Truck until 72,like they suggested,I wouldn't be healthy enough to enjoy the rest of retirement.Careful for the advise you seek.Thank you Geoff for your videos. Often, we know the answer,we just need confirmation.
Here’s the problem though, especially with crazy inflated home prices and related crazy homeowners taxes and insurance. If My house was paid off today, it still would be costing me between six and $700 per month.
Good to hear because I was freaking out. Thinking i was going to die with only my pension. I've still got 7 years till 62. Im hoping I can save. But these past 4 years have been the worst in 35 years of working
@@disme2072 the key is having no debt or little debt. I have a decent pension and cheap health insurance through retirement. I’ll be getting social security at 62 which will be about 2k a month. I did take a part time job for something to do and that brings in an extra 1k a month. I live within my means and my hobbies are fairly cheap
Every single case is different! How much savings do you have? How much did you pay into Social Security? Do you have a pension? Are you healthy? Are you single or married? Is your home paid for? Are all your bills paid up including credit card debt? So many other factors. Don’t let others define your choices because of standards that they set!
Good video. I'm turning 60 this year, feeling more confident in our situation. I've been saving since my 20s, my husband only recently but we still seem to doing better than most.
Unfortunately, with some 40 percent of our population grossly overweight, many people who fail to plan for their retirement will not live to see much if any of it anyway. You can lead a horse to water but you can't make them drink.
Thank you for explaining mean/average vs median. Too many folks use "average" in their analysis or complaints about economics, which is misleading and unhelpful.
I am 53 and retired at 50. 1 thing I did do to retire early was to get out of the 401K and IRA programs. Bought rental real-estate and I am now a Limited Partner in about 3500+ units. I do not work
I only contribute 5% to get full company match, that’s it. The 401K plan is designed for you to work until you are about dead. Also, the government does not have their hands on it yet either.
My wife and I live off of our 401K. We don't work. I recommend highly to everyone to build your 401K or Roth IRA's as an alternate revenue stream in retirement to your Social Security. An observation on 401K's is when it gets over 300K it starts to accelerate. When you get over 500K it can really accelerate as the stock market grows.
The decision on when to pick an Adviser is a very personal one. I take guidance from ‘Jennifer Mackimm Wesley‘ to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net. I am close to retirement with 1.4 M to my name outside of retirement accounts
You've given me a lot of good advice. Let me try to reciprocate: never apologize for your hobbies or your music. I think coin collecting is actually pretty cool, Schmidt.
If the median is $200K, then that is the exact number for the household right at the 50% mark, but then 49% of people are less than $10K, so that means every household with between $10K and $200K in retirement savings falls into the one percent of households between 49% and 50%. It's possible mathematically, but statistically, it's highly improbable.
When working out averages & percentages, a good way to to the calculation is to use the 80th percentile. This means missing out the data from the top 10% & the bottom 10%, then your average figure isn’t skewed too much by abnormally high or low figures.
Comparison is the thief of joy. With that said, it doesn’t matter where you are compared to some data set. Many people can exist happily on social security and a part time job in retirement.
Hi Holy Shmidt! I have been a subscriber and have watched your videos all the way back to when you were a new channel. I appreciate the information and wisdom in your content. By wisdom, I mean your message that money is only one part. Thank you! I have a video recommendation: like many viewers, I do some saving/investing in “retirement accounts” and quite a bit in taxable brokerage accounts (which do not have annual limits). Both are set to be available in retirement. How about a video that shows median balances in both retirement and non retirement accounts by age? Net worth is interesting, but often includes quite a bit in a house.
@@HolySchmidt -- I've also never been able to find anything that shows how pensions are supposed to be calculated into net worth. Annual pension amount x 30 years?
I expected to be horrified at the median, thinking I was way behind, as I'm 54 and only have about 300k(and about 280k in home equity) in my portfolio. I guess I'm doing ok for my age, considering that I started doing this at age 40 and have to continue to REALLY buckle down to catch up. At this point in time I'm focused on living below my means(teacher's salary) and socking away 45% of what I make into my Roth 401k(51% with match). It's not easy, but it's also not too bad if you work a low-hours extra job to bring in a little extra to supplement. I know a number of people my age that have absolutely nothing saved and it's disturbing to me how they can simply not address the issue at all in their daily lives. When we discuss the topic in passing, it's surreal, because they think they're going to somehow have a magic solution at the last minute, have no intention of retiring, or think they'll get lucky and strike it rich somehow. Totally delusional thinking.
My wife and I make $230k I don’t need anywhere near that income in retirement. Ridiculous to base your retirement on current income. Most of my working years I made 50k or less only recently did my income skyrocketed and I’m using it to catch up but I won’t have 20 times my income at retirement. My expenses will be very little in retirement
Yes. A lot of these "rules" assume you spend most of the money you make just to get by. If you live a little more frugally you can save/invest a lot of more money than needed.
So true! Same here. I am not buying vacations to Disneyland… boats… cottages… new car every three years or go out 4 times a week for dinner. For one, I’ve done it already… and I just don’t have the energy or motivation. I will easily live on less than 40% of what my last salary was. And if I really want that guitar or we want to go on that cruise… there is always enough money to dip into for that.
@@JBoy340a you have to ask yourself how much are you saving? and everything else is an expense. We spend way more than we realize. One of the biggest eaters of money is medical, unexpected expenses like roof ,car etc
I am 27 and i just started my ROTH IRA and deposited the max for 2024! I feel stupid for how long it took to get my life straight. The problem here is, what is the best way to invest the money to grow for retirement?
I believe every Investor should start with ETFs for a solid foundation, then diversify across asset classes and maintain disciplined, regular investing to minimize risks and maximize growth.
You’ll do fine. I didn’t start retirement savings til I hit 30. At 58, recently retired, 1.4m retirement, 8 rental units, performing handyman service when it fits my schedule. Raised a family as well. My advice, keep contributing aggressively (pay yourself first), live within your means, if you get married find the right spouse, much financial ruin has been lost by divorce. Take your health seriously. As mentioned, ETF, mutual funds, stable stock that pay dividends. Don’t get suckered into bonds, they just don’t grow your money, they safeguard. Good luck
According to Vanguard, the average 401(k) balance by age is as follows: Under 25: $7,351 25-34: $37,557 35-44: $91,281 45-54: $168,646 55-64: $244,750 65 and older: $272,588 This will help more than his entire podcast.
I've kept much of my savings in cash for safety, but I'm unsure if it's right for retirement. Contemplating investing $400K in stocks, as I've heard investors can profit in tough times. Unsure about my next move.
It's impressive how much you saved during your working years, a feat not many achieve in a lifetime. Now that you're retired and rely on your investments, it's wise to redistribute your capital to mitigate risks during market fluctuations. Consulting a financial advisor can help simplify this process.
Yeah, I’m also closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t really start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who have been investing for many years.
Jessica Dawn Walters 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.
Thanks for this. could easily spot her website just after inputting her full name on my browser. She seems really proficient and flexible. she replied my inquiry and we scheduled for a call sometime tomorrow.
One thing that really makes all the difference when looking at how pitifully low some of those retirement savings is, would be if they have a pension! Especially if it's enough to live on with SS even if they have a low retirement savings amount.
When I retire, my current calculations indicate we will be close to needing only about 50% of what we earn while working. Look at your expenses during retirement, not your income while working.
This reinforces our attitude toward debt from day one of our marriage. So glad we didn’t pursue the champagne lifestyle on the root-beer pocketbook. (OK we have done a little better than that to be fair, but there were times). My wife is now retired and loving it. I am starting make my plans but it’s going to be a few more years.
I’m glad a did 24 years and retired from USAF. That pension alone over 40 years is over $1.3M and that’s not including COLA. Now factor in social security and maybe another pension. It’s definitely not a bad option and I tell young people all the time about it. Additionally, if you choose the Survivor Death Benefit your spouse will get half of your pension the rest of their life should you pass.
My jaw hit the floor when I saw that half of my peers have less than 10K saved. That's peanuts! I'm below the median, but I'm blessed in that I have a pension and my house is paid off. Looking back, I chalk it up to luck rather than smarts.
The median is the value where half has less than that value. According to this video, the FRB SCF states 50% of "your peers" have less than $200,000 and 50% have more. On the other hand, Pew's value for the median is roughly $10,000. The video is incorrectly calling this the mode when it is actually representing the median (or very close, as it states 49% have less, and 51% have more). These two estimates for the median are not even close. Something is off here.
One thing I rarely hear on these videos and I recently took action on is maxing out your HSA. This is a triple tax advantage account. If you can pay all of your medical out of pocket and keep adding to your HSA for later in life you should do so. It decreases your annual taxable income, it grows tax free and it is spent tax free.
For you folks planning on retiring, please listen to the advice and warnings from financial advisors. I have been retired since age 54. Believe me, unless you plan on moving to Mexico or Thailand, fine. However, if you plan on maintaining some sort of form of your current life style. Please, save, save, save, and don’t retire until you are ready. Our experiences may be different, I live in the northeast. I will tell you, if you are not careful or downsize. Going through $500k is not difficult to do.
Im 54 yrs old but retired at age 53 with a really good state pension with a cola. The pension will go to my my wife when I die without reduction. The pension was the only reason I worked for the government. I plan on drawing social security when I turn 62.
Very much enjoying your videos. Wondering if you can create a video on how to assess whether or not to delay taking Soc Security. The context would be retiring before FRA, and expenses are higher than the Soc Security payment. How do I determine if it's better to withdraw those funds from retirement accounts and delay Soc Security to lock in a higher payment, or take the Soc Security at 62 and withdraw less from retirement accounts.
I would like to retire at 50, but all my retirement savings it tied up in my 401k/IRA accounts... :( It's like the system is designed to make it so you can't retire early.
You can save and invest in things that are not 401ks and IRAs, like mutual funds. You can take money out of those investments any time. You'll pay taxes every year, but will be able to use the money as you need to. You can still utilize 401ks.
I loved this Video and shared it with my 32 year old son and he had a good question. Where are most people at 32 and how do you know if you are on target (ratios)…
I am currently in my 50s and This is no time to taper retirement savings. I want to max out my retirement contributions and I also have another $200k in a savings account that i want to invest in a non-retirement account. Where should I invest it now?
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
I've experimented with a few over the past years, but I've stuck with the popularly ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks
These (averages) are scary numbers unless you live a very frugal lifestyle. We have saved a significant amount for retirement and still don’t feel ready with the way inflation is running. We’ll definitely cut back on certain things in retirement but it still looks like we need to be careful. $5M is the new $1M depending on where you live.
The mean and even median savings is interesting and makes most of your followers feel good. I suspect the vast majority of those that are worried about preparing for retirement are well above average. The question we all should have is how much is enough?
Lead a modest life and retirement will be less financially impactful. Believe it or not, but I have maintained the same monthly outgoings for the last 15 years, even though my salary has tripled in that time. I have everything I need and want and I don't feel I have missed out.
Watching this while eating potato chips from a bag that was nearly $7 from my local grocer; if a loaf of bread is $50 next year, none of this is going to matter......and besides---even with good health coverage, everyone is still ONE major illness or accident from financial ruin.
I hate when they separate 401k and retirement savings - they are the same GD things except for maybe tax and to only show one is pretty useless. And is this per person or household.
Confused: The median is the point where 50% have more and 50% have less. But you posted that 49% have less than $10k saved. Therefore, shouldn't the median be very close to $10k - or less???
I just retired at 61 in January. My income is $78,300/year from a pension and SS. I also have a 401K. I could get a part time job, but I don’t have to.
Yes, retirement savings is not a normal distribution - it isn’t distributed symmetrically around the mean. Instead, it has a long tail to the right. That is, there are a smaller number of people with very large retirement balances which drags the mean upwards. As a result, the mean retirement balance isn’t very representative of the “typical” retirement balance. For this type of distribution, the median is more representative. The same is true for things like real estate values - a small number of very expensive home sales can skew the mean higher.
I semi-retired two years ago when I turned 65. I still work part-time for the same employer to keep the same health insurance. I have just under two years to go before my wife turns 65. She is a retired school teacher who will be zapped with the punitive GPO when she collects spousal benefits from Social Security. So, because of that, I decided to take my SS benefits this past February after I had reached my FRA instead of waiting until 70. We are debt free and don't really need the SS benefit, so every month I put a small amount in a Roth and save the rest. If I pass away before my wife, she will be penalized so the savings is for her. Otherwise, we are debt free and live kinda frugally and I haven't had to touch my 401k at all. Even when I do when my part-time work is done, the 401k will be the least of our income sources. I think we'll be fine for the long term. I'm a disable vet, so long term care will be covered mostly ... as long as my wife stuffs me into a Veteran Retirement Home. LOL.
Hello, I am due for retirement in two years, I'm a senior citizen but I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $50K per year but nothing to show for it yet.
In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory.
I think you're better off with majority investment in S&P500 and uprising equities cos they always outperform. Also speaking with an advisor can help with pointers. I've been in contact with one I reached through commentaries here, she has been really helpful.
Hello, thanks for replying. I'm thinking of trying out an advisor, how can one reach a decent advisor like the one you use?
Her name is. REBECCA NASSAR DUNNE. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just curiously searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
At this moment, things appear to be odd. Inflation is reducing the value of the US dollar, but it is strengthening in comparison to other currencies and commodities like real estate and gold. People are switching to the dollar because they believe it is safer. I worry that the rising cost of living may cause the value of my retirement savings to decline.
the only reason you seem to be Panicking , is because you have had money sitting idle for a long time, where you could have netted 2x of whatever you have saved investing in financial markets . I think you need a financial advisor to help you .
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfoIlo allocation
Viviana Marisa Coelho is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
I’m impressed by your ability to quickly write backward. Very informative video. Thank you!
1) we don’t need $1M to retire. Downgrade and minimize, as I got older the less stuff want to take care of.
2) focus on your health instead. Having a healthy retirement is more important than having $1M.
$1 million do not go very far these day and age
@@bluethundar depends on so many factors
We're doing fine on half that.
Do both $100 a month in spy for 30 years you have 1 mill
@remmond3769 healthy food is expensive. That’s one way to avoid future medication.
Your information is better than I ever received before I retired 11 years ago. I hope people are listening to you and taking advantage of your advice. Thank you ❤
Thank you for showing compassion for folks that may have not been so good at saving. We struggle with enough guilt. Love your channel. Thanks Geoff ❤️🌵
compassion and being guilt free do not replace the hard cash you need.
Never give up, keep grinding
It’s hard to fight the government and their money printing machine
@@coastalhillbilly3419 I thank my 20 year old self frequently for self teaching about saving & investing. This was before computers and the internet as we know today. I made trips to the local library to read articles from the likes of Money and Fortune magazines, and WSJ and Barrons paper. You may also find me in the university student union lounge watching CNBC between classes.
I guess my point is, if you grind when you are young, you may not need to later in life when bones and backs start to ache, energy decreases, etc., such as the 40s in my case.
@@DrSchorAs the person said….they know that.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for....
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@LiamOlivia-4 That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@@johnawara9719 My advisor is MARGARET MOLLI ALVEY; .
You can look her up online
Nah I Can't say I can relate, MARGARET MOLLI ALVEY charge is one-off and pretty reasonable when compared to what I benefit in returns.
I stayed home many years with 4 kids, so I was a late bloomer (almost 50) on retirement savings. Managed expenses, 10% match from employer, worked 2nd job, and retired debt free at 65. Blessed to have enough - not rich, not poor - but grateful for what I have, and 4 great kids ❤
Wonderful life story. I thank you for not being one of these people that are only posting to boast on how much money they have.
10% match, wow! I’ve had my match decrease from 6% to 3%. I don’t think 10% is anywhere near normal.
Bravo!!
I stayed home with my children as well, with a similar type plan. What I didn't plan on was getting several serious chronic illnesses that have interrupted the plan, putting me in the under 10k group. However my adult children are so wonderful that I have no regrets. They both have college degrees and I believe they will help me if I need help beyond tightening the belt as you say. 😊
The definition of wealth is not equal….
Thank you for sharing factual information. 49% have less than 10k saved. I know a-lot of people that it was never a priority and no one pushed it. I focus on my health, exercise, then money. You will need those millions if you have poor health. Eat right, exercise, be frugal. We came into this world with nothing and will leave with nothing.❤🙏
My brother in law has No Cash savings… only Social Security of $1,700 a month at age 68. He scrapes by. My sister in law has zero saved, age 62 and works under the table.. so her social security is $450 a month!!
The video is a bit confusing. He states that the median from the one survey is 200k. That means that 50% have greater than 200k saved and 50% have less than 200k saved. This does not seem to match up with 49% have less than 10k saved from the other survey. The numbers for the bottom 50% and bottom 49% should be nearly the same.
@@CartersLearning I'm rewatching this but I'm trying to determine if the 50% under 200k are also under 10k. It's scary shocking how many people it just was never a thing. I've worked in Corporate 27 years and contribution/matching 401k/403b/IRA was the least talked about thing. Maybe 3 out of 10 employees ever discussed it openly. I would like to think that this 49% has more than 10k but I would not be shocked if not. Financial advisors says it is common to have someone 50+ come in needing a plan to start and catch up. If most only knew back in their 20's what they know now. 🤔
My kids are in college and started Roth IRAs in high school. Both had $10,000 in their accounts by age 18. Hopefully, they can keep contributing monthly for the rest of their lives and be millionaires by age 40.
The scammers are in the comments. Never choose an advisor from setup conversations in the comments.
I loathe them and report as spam.
Yep. As soon as you see them click the 3 dots on the far right. Select "Report" and scroll down to "Spam/Misleading". Comment gone!
@@brucesmith9144 me too, but the fact that they still pop up on RUclips, can’t even detect them even though all of us can see them instantly makes me think RUclips doesn’t even care
@@brucesmith9144 Which seems not to do any good. Reporting a comment only makes it disappear for you, and maybe only temporarily.
@@patty109109 Give them a break - it's like frickin' whack-a-mole - and I'd be the last person to defend a corporation - but seriously, that is an impossible task.
As someone approaching 60, I can relate to the stress of thinking about retirement savings. A friend of mine recently retired and found out she was way behind but is now making the most of it by budgeting smartly. It's never too late to adjust!
She wasn’t putting in enough time in effort to understand her situation. How do you retire and just now this just figure it out
As always. Sensible, realistic, no-nonsense. Love your videos for it.
Planning ahead can really minimize taxes! I’ve made a smart reinvestments, especially with some great guidance from a pro for a half year now, and it’s been a game changer. I was able to reinvest my RMD strategically, and I’m now pulling in about $25k a week, despite doing very little trading myself. It’s a nice cushion against financial stress. Best of luck with your RMD decisions!
25k a week? Amazing! how did you get started?
I signed up for a 1-on-1 trading session. It's like copy trading, but with personalized guidance.
the session was secure and a supportive way to improve your trading skills while earning, the best part is there's no upfront payment required at all
I suggest consulting with Dave for guidance, This way you can get strategies designed to address your unique long/short-term goals
who is Dave, if you dont mind me asking?
Backwards writing skills are on point!
I'd guess he flipped the video left/right.
Holy Smoke, you are right. How on earth could he write backwards so well?
And based on the reversed video... he's writing left-handed...
Operations Specialist (OS) from the Navy maybe!
No.
Thanks. Just turned 60 so the timing was perfect. In appreciation.
Happy birthday Todd!
I like the new style! Very few people can write backwards. Even fewer as neatly as you can! Absolutely love your content!!
Picture is reversed…. lol
I’ve been saving for a long time instead of investing, and right now I only have about $516k. I'm not sure how to make it grow into something substantial that I might use for retirement. I’m just here for ideas
There are a lot of ways to achieve your goals but such strategies can only be carried out by market experts not a random RUclipsr.
I just use RUclips for research purposes, I run all my major investment through an investment adviser, the market is just too unstable to handle things on your own. I have consistently restructure and diversify my portfolio/expenses and I’ve made over $3million in gains in close to a decade of having one
Do you mind sharing info on the adviser who assisted you?
Thank you for sharing, I must say, Marissa appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive. I reached out and scheduled a call.
S&P 500 ETF. Lowest cost for sure. Put your money in and leave it. You won't do better, over the long term, anywhere else.
Finally, someone explains means and median in less than 2 min.
Thank you for your guidance. Old age is an undiscovered country for all of us. (even as we plow into it)
I’m 53, at 60 I’m projected to have $250k in a 401k and $100k in a Roth, also I currently have $300k in equity in 2 properties, which should be $400k at 60. I feel like I’m behind, but I know I’m doing better than most.
12:00 Delaying retirement is huge. I'm 59 and originally planned to retire at age 58. But, for each additional year I work, my projected net worth a retirement improves by about $200k, because we continue to add about $100k to our investments and mortgage debt reduction instead of using $100k of retirement funds. I'm still in pretty good shape physically and in good health, and now plan to work to Medicare age and might even work to age 67.
Or you can be like my father in law, retired at 65, gone just a few months after his 66 th birthday.
We're fortunate that we're ahead of the average. I wasn't really a high wage earner, I was paid well but nothing extreme by any means. But if you live below your means, avoid debt, and keep investing you can build up a nice chunk of change over time.
I only really started saving at age 50 since I was doing contract work for 10 years. I had $0.04 in my only active 401k. I consumed my old $100,000 when changing careers when age 40.
So, at age 61, I just now passed $510,000. Aggressive savings and general mutual funds and Roths. Nothing “get rich quick”
So, I am “average” for a high income… but drive beat up car, no fancy trips, nothing expensive.
So, by my own calculations and Fidelity and Other calculator, at age 67, putting away $40,000 a year, stock market 9% return, will just hit $1.1 million then an ok retirement. Nothing great… just doing ok.
My goal when I started saving for retirement was to be able to continue living at the same level as when I worked. I was fortunate and I actually make more money in retirement than I did while I worked. Most of my interest do not cost a lot of money so I am fine. Everyone has a different vision of their retirement. Mine is skiing at my home ski mountain, hiking, backpacking, bike riding and going to the beach. I don’t eat out a lot and live pretty simple. I don’t have any plans to travel the world but I do take a big trip from time to time. Everyone needs a different amount to feel comfortable.
I am absolutely floored that 49% of 65+ who are retiring have less than $10,000. I don't know why but I just assumed that would be maybe 20-30 percent of the population at most.
I'm guessing there are a lot of people with no savings because the government has been carrying them most of their lives.
I know it's a scary thought.
social security
I was totally shocked by that number! $10K isn’t really a retirement fund. This is why people have to work into their seventies and/or rely on social security.
It’s only recently that employers are being compelled by some laws or voluntarily making 401ks opt out. There was. A very long time in which people didn’t understand 401ks and opting in. A horrible oversight by companies, to remove pensions and replace with an opt in system. But they were happy to drop the pensions off their books. Another failure of leadership by business comes back to hurt all of America.
I live in So-Cal and I'm 56. I have way more than I need to retire for the rest of my life in some modest town in Pennsylvania, or to put it another way, enough to last about 18 months in Los Angeles.
It's very much all about where you retire and what kind of lifestyle and home you want to sustain. Downsizing is a good idea, too many people think a two person house needs 3000 square feet or more, it's just idiocy, 1500 square feet is very roomy for two, 1250 should be quite doable, 1000 not even that bad if you are smart about it.
I’m 60 and my wife 54 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle in the stock market made it possible for us this early even till now we earn weekly.
Great job ! I bet you’re living your best life right now.
I’m a young dad, I’m really glad to hear your story it inspires me. Please how did you achieve this milestone.
There are many independent advisors to choose from. But I work with Laura Grace Abels and we've been working together for almost four years and she's fantastic. You could check her if she meets your requirements.
How can I get more info about her offers ?
Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!
That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!
Mind if I ask you to recommend this particular coach you using their service?
When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
I turned sixty in March, my current assets are about 1.2 million. I've worked as a truck driver for the past 34 years. I enrolled in our company 401k right away and was lucky enough to find a good advisor a few years later. I've been with my financial group for quite some time now. My goal was to be able to retire at 60. I've chosen to hold off a year because of the state of our country and rising cost of living over the past three years. I find amazing that at the age of 60 most people haven't saved more than $200,000 for their retirement. I don't consider myself smarter than the average Joe. I do know that because of a family genetic illness(Alzheimer's) I want to retire early assuming that my quality of life will be shorter.
Well done
I'm three years behind you with the same assets [wife included], and also a March birthday! You couldn't have said it any better, and alzheimers also runs in my family. I hope to retire at 64. Good luck to you!!!
I am 60, still working full time because I refuse to pay out of pocket for health insurance. We own our house free and clear and other than cruises, we live modestly. I car I house zero debt about 750k in savings.
House worth about 300k.
I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my goals?
keep contributing, remember you are in for the long haul. however, I'd suggest you consider financial advisory at this point in time
Agreed, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year, summing up approx. $650k ROI. I and my FA are working on a 7 figure ballpark goal, though this could take another year.
@@arlenehill4ril ambitious! could you be kind enough with details of your advisor please? in dire need of proper asset allocation
Karen Lynne Chess is the licensed advisor I use. Just research the name. You’d find necessary details to work with and set up an appointment if you like.
The market has been gangbusters the last few years, and my portfolio is doing great with a nearly 9% return on average. If your portfolio is underperforming, it's certainly not because of the US economy which is actually doing well relative to the rest of the world. Sounds more like your 401k investment elections were less than ideal. If you don't know what you're doing (which is okay, most don't), I recommend just going with the targeted retirement age funds offered by your plan. They will automatically adjust your allocations to match your current age to put you on the right track to aggressively maximize your gains before going conservative as you near retirement.
We retired at age 56, I am now 70. We continue to save for retirement and are happily retired.
Elder care for parent, or you, is a big one. The cost keeps growing and growing.
So true!
So sad that parents aren’t planning and using children as a retirement plan
Retirement starts when you are young. I planned early,boughtba house,paid it off early,saved alot of my income from 30 to 45,then began working only part time and enjoyed life without alot of stress,retired at 60,traveled for 5 years,then was asked to return to work at 65,and now work part time,and take off all summer. I have a simple life,but always had a plan.
Thank you so much for this video. I’m not retiring for a long time but aggressively save for it thinking I needed like $1.5M. Your video has shed light on this topic for me.
I need a way to draw up a plan to set up for retirement while still earning passive income to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket. i want to invest around $250K savings.
Don't put all your eggs in one basket; instead, diversify into different asset classes to mitigate risk. If you lack extensive knowledge, consult a financial advisor.
Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 300K cash earning 5.25 interest, 685k in 401k, 250k cash account, 120k in car assets ( paid off cars) Gold and silver bars. age is 64. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.
pls how can I reach this expert, I need someone to give me a guide on how to manage my portfolio
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
⛔Stop scamming!
After seeing this, I feel a lot better.
Here is the deal: I don't have a car. I don't have cable or any streaming services or subscriptions. I never eat out -- breakfast, lunch, or dinner. I don't drink anything but water --- ever. I don't gamble, smoke, or do any drugs. I don't go on vacations. No coffee or booze, as noted earlier. I don't use the internet to buy anything -- ever. Practice this and you can easily live off of about 20k a year. Practice this, and truly retire early or retire stress free. What I do: Library, outdoor exploring/hiking, Reading, Exercise, Cook, Love.
That’s great but after working all your life do you really want to live like that as time is always against you
No coffee ??!!
@@mikethompson3534 - Live like what? Mike, comments like this is why you are still Broke.
@@everpresent1 - Nope -- no drugs, as noted.
I don't use internet you say on an internet site.?
Only about 3% of savers have 1M or more in retirement accounts. I think it’s a good ambition to have that but clearly it’s not a requirement to retire.
Wow nice I have 2, thought it was like 10 percent 😊
@@richarddixon6352 I’m right there with you feels good to be in the top 3%
Fun to see a fellow coin nerd on one of my favorite retirement planning channels!
I appreciate your calm clear explanation.
As a certified counselor/teacher for the Late Larry Burkette and Dave Ramsey, I fictitiously inquired with my colleges on my retirement. They said work 10 more years and don't rely on social(insecurity). I am way above the "Pew" and somewhat above the "Median". If I had stayed in the Truck until 72,like they suggested,I wouldn't be healthy enough to enjoy the rest of retirement.Careful for the advise you seek.Thank you Geoff for your videos. Often, we know the answer,we just need confirmation.
Here’s the problem though, especially with crazy inflated home prices and related crazy homeowners taxes and insurance. If My house was paid off today, it still would be costing me between six and $700 per month.
That’s a big number
Insurance is going to keep going up as well.
it's probably way more than that. property taxes, homeowners insurance, utilities, water, trash, and maintenance...
I live in Florida. Paid off my house that is worth 700k. Taxes are $4k and home insurance is $5k. That is close to 700 month.
@@HolySchmidt My paid off home is similarly around $700 and will go up annually.
I retired at 60 with less than 50k in the bank and I’m doing everything I want to do. The key is your debt. Stay out of it
Good to hear because I was freaking out. Thinking i was going to die with only my pension.
I've still got 7 years till 62. Im hoping I can save. But these past 4 years have been the worst in 35 years of working
@@disme2072 the key is having no debt or little debt. I have a decent pension and cheap health insurance through retirement. I’ll be getting social security at 62 which will be about 2k a month. I did take a part time job for something to do and that brings in an extra 1k a month. I live within my means and my hobbies are fairly cheap
Thanks for clarifying that the numbers are sums of household accounts. Most reports of this kind do not disclose whether they do it this way.
Every single case is different! How much savings do you have? How much did you pay into Social Security? Do you have a pension? Are you healthy? Are you single or married? Is your home paid for? Are all your bills paid up including credit card debt? So many other factors. Don’t let others define your choices because of standards that they set!
Not really, it is 2 choices, either you are prepared or you or not!
Good video. I'm turning 60 this year, feeling more confident in our situation. I've been saving since my 20s, my husband only recently but we still seem to doing better than most.
Unfortunately, with some 40 percent of our population grossly overweight, many people who fail to plan for their retirement will not live to see much if any of it anyway. You can lead a horse to water but you can't make them drink.
Don't forget all the heavy smokers and drinkers to
@@Scooch-cu6vo Good point.
Right now, way behind. But I know it and I’m doing something about it. Makes all the difference.
Thank you for explaining mean/average vs median. Too many folks use "average" in their analysis or complaints about economics, which is misleading and unhelpful.
I am 53 and retired at 50. 1 thing I did do to retire early was to get out of the 401K and IRA programs. Bought rental real-estate and I am now a Limited Partner in about 3500+ units. I do not work
I only contribute 5% to get full company match, that’s it. The 401K plan is designed for you to work until you are about dead. Also, the government does not have their hands on it yet either.
My wife and I live off of our 401K. We don't work. I recommend highly to everyone to build your 401K or Roth IRA's as an alternate revenue stream in retirement to your Social Security. An observation on 401K's is when it gets over 300K it starts to accelerate. When you get over 500K it can really accelerate as the stock market grows.
If I may ask, as in withdrew all of the money from the 401K and IRA programs? If so, what was your strategy behind that decision? Thank you.
The decision on when to pick an Adviser is a very personal one. I take guidance from ‘Jennifer Mackimm Wesley‘ to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net. I am close to retirement with 1.4 M to my name outside of retirement accounts
I agree the mrkt is manipulated that’s why I never contribute above 5% I try to enjoy the ride while I invest.
Huge difference make s when one or both retirees have pension not just SS!!!
Also, having no debt!!!
Great info, both reassuring and validating for me for where I am in life. Thank you!
Always enjoy these videos. Thanks for posting.
You've given me a lot of good advice. Let me try to reciprocate: never apologize for your hobbies or your music.
I think coin collecting is actually pretty cool, Schmidt.
If the median is $200K, then that is the exact number for the household right at the 50% mark, but then 49% of people are less than $10K, so that means every household with between $10K and $200K in retirement savings falls into the one percent of households between 49% and 50%. It's possible mathematically, but statistically, it's highly improbable.
The comment I was looking for. My intuitive alarms bells were ringing
Yes, there's obviously something wrong with either the median number or the 49% number. They can't both be right.
Begging is another option as well....one's energy is a lot less at 63 compared to 43.
Losing my wife wasn’t part of our retirement plan. May never be able to afford the big pay cut now
My condolences.
When working out averages & percentages, a good way to to the calculation is to use the 80th percentile. This means missing out the data from the top 10% & the bottom 10%, then your average figure isn’t skewed too much by abnormally high or low figures.
We are in the second group, +1.2M in retirement savings, no debt and retiring in 2 years. Great video. Thanks.
About to turn 59 and just passed $1 million two weeks ago. Earlier than I expected/hoped but I'm not complaining.
You just gave me horrible flash backs of my college statistics class. I squeaked by with a B, but it wasn't easy!
Great information as usual sir. I'll be 60 in 9 days, sounds like I'm doing better than okay. I'm above the average and have a pension with no debt.
Comparison is the thief of joy. With that said, it doesn’t matter where you are compared to some data set. Many people can exist happily on social security and a part time job in retirement.
I love that and I agree with you.
Hi Holy Shmidt! I have been a subscriber and have watched your videos all the way back to when you were a new channel. I appreciate the information and wisdom in your content. By wisdom, I mean your message that money is only one part. Thank you! I have a video recommendation: like many viewers, I do some saving/investing in “retirement accounts” and quite a bit in taxable brokerage accounts (which do not have annual limits). Both are set to be available in retirement. How about a video that shows median balances in both retirement and non retirement accounts by age? Net worth is interesting, but often includes quite a bit in a house.
Thanks for the suggestion!
@@HolySchmidt -- I've also never been able to find anything that shows how pensions are supposed to be calculated into net worth. Annual pension amount x 30 years?
Good info. Sad thing is if the stock market takes a crash and your near retirement now your screwed again. Late start in retirement and hope the best.
I expected to be horrified at the median, thinking I was way behind, as I'm 54 and only have about 300k(and about 280k in home equity) in my portfolio. I guess I'm doing ok for my age, considering that I started doing this at age 40 and have to continue to REALLY buckle down to catch up. At this point in time I'm focused on living below my means(teacher's salary) and socking away 45% of what I make into my Roth 401k(51% with match). It's not easy, but it's also not too bad if you work a low-hours extra job to bring in a little extra to supplement. I know a number of people my age that have absolutely nothing saved and it's disturbing to me how they can simply not address the issue at all in their daily lives. When we discuss the topic in passing, it's surreal, because they think they're going to somehow have a magic solution at the last minute, have no intention of retiring, or think they'll get lucky and strike it rich somehow. Totally delusional thinking.
My wife and I make $230k I don’t need anywhere near that income in retirement. Ridiculous to base your retirement on current income. Most of my working years I made 50k or less only recently did my income skyrocketed and I’m using it to catch up but I won’t have 20 times my income at retirement. My expenses will be very little in retirement
Yes. A lot of these "rules" assume you spend most of the money you make just to get by. If you live a little more frugally you can save/invest a lot of more money than needed.
So true! Same here. I am not buying vacations to Disneyland… boats… cottages… new car every three years or go out 4 times a week for dinner. For one, I’ve done it already… and I just don’t have the energy or motivation. I will easily live on less than 40% of what my last salary was. And if I really want that guitar or we want to go on that cruise… there is always enough money to dip into for that.
@@JBoy340a you have to ask yourself how much are you saving? and everything else is an expense. We spend way more than we realize. One of the biggest eaters of money is medical, unexpected expenses like roof ,car etc
I am 27 and i just started my ROTH IRA and deposited the max for 2024! I feel stupid for how long it took to get my life straight. The problem here is, what is the best way to invest the money to grow for retirement?
I believe every Investor should start with ETFs for a solid foundation, then diversify across asset classes and maintain disciplined, regular investing to minimize risks and maximize growth.
You’ll do fine. I didn’t start retirement savings til I hit 30. At 58, recently retired, 1.4m retirement, 8 rental units, performing handyman service when it fits my schedule. Raised a family as well.
My advice, keep contributing aggressively (pay yourself first), live within your means, if you get married find the right spouse, much financial ruin has been lost by divorce. Take your health seriously.
As mentioned, ETF, mutual funds, stable stock that pay dividends. Don’t get suckered into bonds, they just don’t grow your money, they safeguard. Good luck
Fxaix
According to Vanguard, the average 401(k) balance by age is as follows:
Under 25: $7,351
25-34: $37,557
35-44: $91,281
45-54: $168,646
55-64: $244,750
65 and older: $272,588
This will help more than his entire podcast.
Great video, thank you!
I've kept much of my savings in cash for safety, but I'm unsure if it's right for retirement. Contemplating investing $400K in stocks, as I've heard investors can profit in tough times. Unsure about my next move.
It's impressive how much you saved during your working years, a feat not many achieve in a lifetime. Now that you're retired and rely on your investments, it's wise to redistribute your capital to mitigate risks during market fluctuations. Consulting a financial advisor can help simplify this process.
Yeah, I’m also closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t really start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who have been investing for many years.
My partner’s been considering going the same route, could you share more info please on the advisor that guides you
Jessica Dawn Walters 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.
Thanks for this. could easily spot her website just after inputting her full name on my browser. She seems really proficient and flexible. she replied my inquiry and we scheduled for a call sometime tomorrow.
Another great video. Thanks!
Writing backwards like that takes a lot of talent. Impressive.
Writing backwards on a clear sheet... Did you work in the military/RADAR way back when?
Ha!
Write normally and flip in post processing. Notice the hand with the wedding ring is reversed.
@HolySchmidt I bet that you are flipping the video. Your wedding ring gives it away.
@@JBoy340aI noticed that too. You posted first.
@@JBoy340a Good observation!
One thing that really makes all the difference when looking at how pitifully low some of those retirement savings is, would be if they have a pension! Especially if it's enough to live on with SS even if they have a low retirement savings amount.
When I retire, my current calculations indicate we will be close to needing only about 50% of what we earn while working. Look at your expenses during retirement, not your income while working.
Be sure to factor in bad health and possible long term care - expensive.
This reinforces our attitude toward debt from day one of our marriage. So glad we didn’t pursue the champagne lifestyle on the root-beer pocketbook. (OK we have done a little better than that to be fair, but there were times). My wife is now retired and loving it. I am starting make my plans but it’s going to be a few more years.
I’m glad a did 24 years and retired from USAF. That pension alone over 40 years is over $1.3M and that’s not including COLA. Now factor in social security and maybe another pension. It’s definitely not a bad option and I tell young people all the time about it. Additionally, if you choose the Survivor Death Benefit your spouse will get half of your pension the rest of their life should you pass.
Public sector careers are a great option.
My jaw hit the floor when I saw that half of my peers have less than 10K saved. That's peanuts! I'm below the median, but I'm blessed in that I have a pension and my house is paid off. Looking back, I chalk it up to luck rather than smarts.
I am in same boat as you
The median is the value where half has less than that value. According to this video, the FRB SCF states 50% of "your peers" have less than $200,000 and 50% have more. On the other hand, Pew's value for the median is roughly $10,000. The video is incorrectly calling this the mode when it is actually representing the median (or very close, as it states 49% have less, and 51% have more). These two estimates for the median are not even close. Something is off here.
Yes, final someone talking about this point.
Health is a big factor in being able o afford your life at old age . HEALTH costs is the one factor that will likely increase as you age.
One thing I rarely hear on these videos and I recently took action on is maxing out your HSA. This is a triple tax advantage account. If you can pay all of your medical out of pocket and keep adding to your HSA for later in life you should do so. It decreases your annual taxable income, it grows tax free and it is spent tax free.
For you folks planning on retiring, please listen to the advice and warnings from financial advisors. I have been retired since age 54. Believe me, unless you plan on moving to Mexico or Thailand, fine. However, if you plan on maintaining some sort of form of your current life style. Please, save, save, save, and don’t retire until you are ready. Our experiences may be different, I live in the northeast. I will tell you, if you are not careful or downsize. Going through $500k is not difficult to do.
Im 54 yrs old but retired at age 53 with a really good state pension with a cola. The pension will go to my my wife when I die without reduction. The pension was the only reason I worked for the government. I plan on drawing social security when I turn 62.
Very much enjoying your videos. Wondering if you can create a video on how to assess whether or not to delay taking Soc Security. The context would be retiring before FRA, and expenses are higher than the Soc Security payment. How do I determine if it's better to withdraw those funds from retirement accounts and delay Soc Security to lock in a higher payment, or take the Soc Security at 62 and withdraw less from retirement accounts.
Hi I have one from several years ago. Let me look at up dating it
I would like to retire at 50, but all my retirement savings it tied up in my 401k/IRA accounts... :( It's like the system is designed to make it so you can't retire early.
YOU chose how to distribute assets, not the government or “they”.
You can save and invest in things that are not 401ks and IRAs, like mutual funds. You can take money out of those investments any time. You'll pay taxes every year, but will be able to use the money as you need to. You can still utilize 401ks.
I loved this Video and shared it with my 32 year old son and he had a good question. Where are most people at 32 and how do you know if you are on target (ratios)…
I am currently in my 50s and This is no time to taper retirement savings. I want to max out my retirement contributions and I also have another $200k in a savings account that i want to invest in a non-retirement account. Where should I invest it now?
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
I could really use the expertise of this advisors
I've experimented with a few over the past years, but I've stuck with the popularly ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks
These (averages) are scary numbers unless you live a very frugal lifestyle. We have saved a significant amount for retirement and still don’t feel ready with the way inflation is running. We’ll definitely cut back on certain things in retirement but it still looks like we need to be careful. $5M is the new $1M depending on where you live.
medians make more sense. it means for most people. averages are not working well in countries where 1% has 90% of wealth.
The mean and even median savings is interesting and makes most of your followers feel good. I suspect the vast majority of those that are worried about preparing for retirement are well above average.
The question we all should have is how much is enough?
Lead a modest life and retirement will be less financially impactful. Believe it or not, but I have maintained the same monthly outgoings for the last 15 years, even though my salary has tripled in that time. I have everything I need and want and I don't feel I have missed out.
The key to retirement is having no debt plus a healthy investments portfolio. This combination is the best strategy
healthy debt plus healthy investments much better.
Watching this while eating potato chips from a bag that was nearly $7 from my local grocer; if a loaf of bread is $50 next year, none of this is going to matter......and besides---even with good health coverage, everyone is still ONE major illness or accident from financial ruin.
I hate when they separate 401k and retirement savings - they are the same GD things except for maybe tax and to only show one is pretty useless.
And is this per person or household.
Confused:
The median is the point where 50% have more and 50% have less. But you posted that 49% have less than $10k saved. Therefore, shouldn't the median be very close to $10k - or less???
I just retired at 61 in January. My income is $78,300/year from a pension and SS. I also have a 401K. I could get a part time job, but I don’t have to.
Yes, retirement savings is not a normal distribution - it isn’t distributed symmetrically around the mean. Instead, it has a long tail to the right. That is, there are a smaller number of people with very large retirement balances which drags the mean upwards. As a result, the mean retirement balance isn’t very representative of the “typical” retirement balance. For this type of distribution, the median is more representative. The same is true for things like real estate values - a small number of very expensive home sales can skew the mean higher.
I semi-retired two years ago when I turned 65. I still work part-time for the same employer to keep the same health insurance. I have just under two years to go before my wife turns 65. She is a retired school teacher who will be zapped with the punitive GPO when she collects spousal benefits from Social Security. So, because of that, I decided to take my SS benefits this past February after I had reached my FRA instead of waiting until 70. We are debt free and don't really need the SS benefit, so every month I put a small amount in a Roth and save the rest. If I pass away before my wife, she will be penalized so the savings is for her. Otherwise, we are debt free and live kinda frugally and I haven't had to touch my 401k at all. Even when I do when my part-time work is done, the 401k will be the least of our income sources. I think we'll be fine for the long term. I'm a disable vet, so long term care will be covered mostly ... as long as my wife stuffs me into a Veteran Retirement Home. LOL.