How Much Does the Average American Need to Save for Retirement?
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- Опубликовано: 16 июн 2024
- While the financial media is focused on high-net-worth investors, how much does the average American need to save for retirement?
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Timestamps
0:00 - How Much Does the Average American Need to Save for Retirement?
0:58 - Retirement age, inflation & returns
1:53 - Retirement spending
2:24 - Social Security income
3:17 - If our retirees are 65
4:12 - If our retirees are 60
6:07 - If our retirees are 55
7:08 - How much do you need to save?
7:38 - Good news in the data
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-- About Patrick King CFP® --
Patrick King is a fee-only financial advisor in Atlanta and the Founder of Prana Wealth. Over his career, Patrick has helped CEOs, all-star athletes, Grammy-winning artists, and many others build their wealth, retire sooner, and create a legacy. Patrick enjoys yoga, mountain biking, golf, travel photography, and Clemson football.
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Currently working overseas but will return to my home country in the near future. I'm a landlord. I invested in property at the age of 22. Value has soared and renting out. Will live on the rental income I receive and live with my aging parents for the time being. At 60 I can withdrawal from my superannuation (401(k)). Have savings and eligible for the Australian pension at 63. In the future I may downsize, sell the property and buy cheaper property and add the left over money from the sale to savings. Lots of options for me. The way I see it if you have $1m at some point, that’d be enough to create a portfolio that would pay you between 50k-70k in dividend income...
@@McElvinn I completely agree; I'm 60 years old, recently retired, and have roughly $1,250,000 in outside retirement funds. I have no debt and very little money in retirement funds compared to the total value of my portfolio over the last three years. To be honest, the Fin-advisor's can only be neglected, not rejected. Simply conduct study to identify a reliable one
@@AUstinnesc credits to NICOLE DESIREE SIMON, one of the best portfolio manager;s out there. she;s well known, you should look her up
My average income the last 35 years was $35000 a year. Yet I managed to live a comfortable life, paid off my mortgage 10 years ago, have no debt. It’s not how much money you have, it’s how you spend it. Still managed to go on vacations and have a decent 401k. Things I bought I used and didn’t have to have the latest version of things. You don’t need a million dollars to retire. Know lots of people who retire on less. Hard to find a retirement video for the blue collar worker
Well that would be impossible to do considering I'm in my late 50s and I'm more interested in investments that could set me up for retirement in my 60s, my goal is at least $2million.
Very true, If you're looking for help
building a retirement nest egg, you most likely want a certified financial planner with expertise in retirement planning. With the aid of a coach, I grew my reserve from $160k to almost $600k during this Red season.
@@helenoliver4838 How can one find a verifiable financial Planner, I buy the idea of employing the services of a Financial Advisor because finding that balance between saving and living requires counsel.
@@helenoliver4838 I just looked up this person out of curiosity, and surprisingly she seems proficient. I thought this was just some overrated BS, I appreciate this.
Thank you so much! Found her webpage and left a message. Hopefully, she responds.
More bots... 🤖
Although I've been actively working toward early retirement and financial freedom by saving money and investing, the economy's decline since the epidemic has largely depleted my $3 million portfolio. In these uncertain circumstances, should I continue adding to my portfolio or should I look into alternate sectors?
Just try to diversify your portfolio to other market sectors, that way your investment is balanced and you don’t get to make so much losses.
I'm 61, wife 56 both retired. 20 years paying ourselves first in 401k & 457 with maximum contributions. 401k had company match. S&P index fund over 20 years. Living below our means. Results...Priceless 🤑
Awesome, Richard! That's the way to do it! Congrats on a stress-free (early) retirement! 🙏
I’m interested to hear how you handle market volatility. Do you shift funds based on market conditions? For example, how did you handle the 2008 crash?
@Smoove J -- Aside from Friday, we haven't seen a lot of volatility recently. I'm sure that will change at some point. (It always does.) As far as handling any future volatility, I think now's the time to consider how a 20% - 30% pullback would affect your portfolio. Any given investor's risk tolerance can change drastically between bull markets and bear markets. So, I guess it would be situation dependent.
I do think it makes sense to shift things tactically, but using a numbers-based process. Markets can certainly hang out in the "overvalued" area for longer than anyone thinks. If you make a tactical shift, you have to be patient with it. Does that make sense?
In 2008, we stuck with our client strategies! It wasn't always fun, but it worked.
Thank you...solid perspective. The addition of pension wealth is very important,,,and often ovwerlooked in today's environment.
Thanks for watching, Marc! And thank you for the kind words! 🙏
I sure do hope your facts and figures are correct. I have always contributed to my 401 and before that my 457, and if your numbers are right, I am working for nothing……Thank you you’ve just made my day! I just found you on RUclips and am now a faithful subscriber
I wasn't high net worth, but pretty well off as a software engineer. 20 years ago when I was still earning a salary I was spending about $4500/mo (included a mortgage). In the past 15 years my spending has been $600/mo (no mortgage, health insurance paid by Medicaid, free smartphone). I always thought the concept that a high earner "needed" to spend a lot to be happy. That's insanely silly to me. The entire idea that a person needs some percentage of current income is crazy. It misses the entire point of retiring. My most fun thing retirement has given me as been to take 2-4 hour walks everyday. You know how excited a dog gets to go on a walk, that joy? Me too. I had time to tinker in my shop and I've invented 2 products that I built and sold for awhile until they became a job. Retirement is a chance to reinvent yourself.
My SS would be $2400/mo if I took it. No need yet.
That is great. I am frugal but not that frugal. I have. my pension which clears what I cleared when working when I worked I saved about 10,000 a year from my net. Nowadays it is only 6,000 a year I save. Hoping social security security will take care of inflation when I pull it.
Ha! So true, @Water Bug ! You don't need to spend at any certain level relative to your income. However, most people do! It's kind of like a personal finance version of Parkinson's Law -- spending will expand to fill the income available for it. Kudos for realizing that contentment doesn't cost a thing! 🙌 Great comment!
Great info. Are you not seeing your living expenses increasing annually due to inflation? I assume inflation in my retirement projections, and over a 15-year period expenses get really high.
Things may get interesting here over the next several years as far as inflation goes.
If you are a renter you do need to spend to spend alot to be happy, apartment rents are skyrocketing. You can live on alot less if you're house is paid off. This is a huge problem for the younger generation house prices have risen so much that only long time home owners with alot of equity can afford to buy, many young people are locked out of the market.
I’m a big “RUclipsr”- your videos are clearly my favorite. You hit all the marks we look/long for in a YT presentation. Professional production, interesting, to the point and easy to follow content. But what separates your efforts from other professional ones, is that you respond to EVERY comment, offering each unique question with generous and helpful information. Truly a masterclass production.🏆 Keep up the great work!
Thank you so much, Ted! You made my day! I really do hope that I can help people make retirement easier. Plus, there are a lot of smart people who leave comments, so I find it fun to engage with everybody. Thanks for the kind words! 🙏
I couldn't have typed this better myself. 👍
Thank you, @Bob House ! It's been a wonderful surprise to see how much my channel has grown since I made this video. Unfortunately, it's now getting to the point where there are so many comments that I can't answer them all, which bums me out a little bit. I'm going to do my best to keep up with as many comments as I can going forward. Thanks for all the positive support! 🙏
Great video. Your approach should give hope to those that are behind in savings but still in a reasonable position to get there. Too many focus on a crazy high number that is out of reach for most people asking the questions.
Thanks, @Andrew ! 🙏 There's always a way to make it work, even if you're behind. It's all about making that decision to make it work!
Great video, as most of your's are! Great subject, and superb presentation. Keep 'em coming. Thanks!
Thank you so much, Bruce! And thanks for watching! 🙏
Very well said, your presentation is quite outstanding and easy to comprehend, there is a lot going on in the world now which will eventually affect the future either positively or negatively thereby causing an increase or decrease in the financial market, in order not to fall victim now is the time to start investing to secure your future
I’m currently building my finance and increasing my portfolio in the mean time
Good stuff. Many thanks!
My pleasure, @meesacreef! I'm thrilled you enjoyed it! 🙏
Thank you for the video! We seem to be in decent shape here...
Awesome, Cliff! I'm glad it was helpful. Thanks for watching! 🙏
Your videos are on target....I watch a lot of financial gurus and you are my favorite. You're very professional, you mention your resources, and your video contents are relevant to today's economic and retirement issues. Thanks so much! 🤜🤛
Thank you so much, Pamela! You really made my day! 🙏 Happy Friday!
It's my third month being retired now. And life hasn't been so difficult as I thought basically because I put my head down and made ways for other source of Income. I'm a huge fan of earning more money, and I think everyone should have a side hustle. Side hustling can allow you to earn that little bit of extra money that can help you achieve your financial goals faster - whether it's paying off student loans or saving for retirement.
I wish I could like this comment million times. I always tell people that it's better late than never. Therefore, If you want the chance to maximize your income, you will need to explore investing your money
@@richardyepesdiego5702 I've been considering buying ETFs/SCHD stocks for retirement, I have set asides $100k but somewhere along the line, I get cold feet maybe because I'm a rookie and have no idea what I'm doing, please I could really use some guideline
@@richarddiego3424 You can buy dividend ETFs if you don't want to get into individual stocks. My favorite is SCHD. you can use a coach as well.
@@berwickperu7683 A coach sounds like a good idea, but how can I get a reliable one considering the nature of the market today?
@@richarddiego3424 ket today?
There are good names out there, people that have shown consistency. Like Karen Marie Emma, she's currently my coach. Lookup the name , you can reach her through her home page.
Enjoyed your video Thanks
Glad you enjoyed it, Terry! 🙏
Great content Patrick. I look forward to watching more of your posts.
Thank you so much! I'm so glad you enjoyed it! 🙏
Great job of creating an estimate!
Low overhead is key. My SS pays all my living expenses. And I'm saving $$$. You got to make a plan.
Daniel -- that really is the trick to all of this. Keeping the overhead lower than the income!
Thanks a lot!
You're welcome, HL! Thanks for watching! 🙏
I would love a future video of SEPP (Substantially Equal Periodic Payments) to get retirement money without penalty before 59.5.
Francis, that's a great idea! I'll add that to the queue. It will fit nicely with a rule of 55 video that I'm planning. Give me a few weeks!
Great video
Thanks so much, Mike! 🙏 Thanks for watching!
Well done me and my wife our both 55 and it’s getting really close to retirement and Need all info we need th
Lawrence, that's a great time to start planning before your "final approach" and land this thing! 🛬💰
Thank you for doing these videos. They are very informative and helpful. Making feel much better about retirement based on your examples
Glad you like them, Larry! Thanks for watching and commenting! 🙏
Getting 2 pensions currently and military insurance. Still haven’t retired but am working part time. Wont collect partial SS for a few years.
KMW, thank you for your service! 🇺🇸
It’s really amazing how little we need in retirement. I tried to convince some friends of this fact last weekend. Oh well.
@cato -- it's all about making choices! However, I do think that some folks in this study were living on less because they had to.
I never could explain it so I didn't. I retired 20 years ago at 45 and told no one. They thought I was working from home. Just easier.
@@MrWaterbugdesign that is awesome. Congrats. What’s great idea. Just do it and don’t tell anyone!!
I retired on 1/3/2020, and I have more in my account than I did when I was working. Thats because of my working expenses, that I don't have to put out. I travelled when I was working, & I'm glad I did, when it was safe to do so. Although, I'm looking forward to doing so again, in the future.
People are mislead by how much they need to retire. I would probably need more if I moved into a different home and had a different lifestyle, but since I have the same lifestyle and am staying where I am, my expenses are very low. Retirement is more achievable than people think. I can understand the fear of taking the first step, but careful planning will make it doable.
Ms. L. Churchill
Congrats on your retirement! 🙌 You're absolutely right -- anyone can retire and spend less if they choose. It all depends on your goals. Thanks for the great comment, Ms. Churchill! 🙏
Thanks 🙏
Retirement made easy
Anytime, @Hussein Abd ! Thanks for the kind words! 🙏
Great channel new subscriber just found you
Thanks for subscribing, Lawrence! I've been swamped with my practice over the last couple of months, so I'm hoping to get back to posting weekly and replying to comments daily soon. Thanks for watching! 🙏
I'm already in retirement. I suggest get a head start in educating oneself about retirement planning..
My wife and I started to get serious about our retirement planning in our late 40's. We had always saved so that was the easy part.
We needed to have a better understanding of all things about retirement so we followed seminars, podcasts, etc over the years. Once you have that understanding it is easy to grasp as to how much you will need in retirement.
For us it is one pension, IRAs, and not yet claimed social security for each of us. Nice video.
Awesome, @Generator John ! I'm glad to hear that you've got it under control. Thanks for the kind words and great comments! 🙌
My parents 67 and 64 both retired. Dad did 20 yrs enlisted in the Army and 23 yrs as police officer (captain). Mom a college professor for 30 yrs. Me and my brothers both earn academic and sport scholarships. My parents took the money that would have went to college for us towards investing in real estate. They bought +20 rental properties right after the housing crisis. Their net worth is +4 million.
My wife a Associate Professor and Im a Army reservist/Civilian federal Case Manager we invest 20% of our salary toward our fed and state retirement. We own 4 rentals as well. We plan to retire when the kids leave the nest.
Sounds like you've made some great moves over the years! Thanks to you and your family for all your service! 🇺🇸🙏
Hi I just turned 25 and so I’m starting to think of saving for retirement… I think that will be the first in my list of things to save for once I buy my first home.
Just turned 49. 530k in the 401k. 300k house just paid off, so completely debt free aside from food, utility, insurance, and taxes. Will probably need 1 or 2 more vehicles before we retire. Saving for those right now since we just paid off the house. I'm with the guy worried about having enough money to retire on. I don't want to work to 65, men in my family rarely make it into their mid 70's. But wife's family is long lived. I need to make sure she has enough when I pass.
@AnAZPatriot -- sounds like you have a good plan in place! Congrats on paying off the house, too! 🙏
A list of expenses used in your monthly minimum would have been helpful.
Gerard, I'd really encourage you to take a look at the study itself. The detail it goes into is fascinating. Here's a link to the study:
www.bls.gov/cex/tables/calendar-year/mean-item-share-average-standard-error/reference-person-age-ranges-2020.pdf
Wants and needs are completely different. Saving beyond what you need will cost you time. Time can't be replaced or purchased back once spent. So think very carefully about what your wants and needs are.
Absolutely! Great way to think about it!
I've been retired 20 years. IMO there's no way to predict your retirement lifestyle. If 20 years ago someone had told me how I would live today and how happy I'd be I would have thought them insane. You can have an idea, but I think that rarely comes to pass.
If one retires early and you can control your TAXably income. Look at ACA for health insurance.
That plan works for a lot of people, Ken. Thanks for the comment! 🙏
Good simple help, but biggest error in this is assuming a 7% retirement investment return. When retirees have only 50% in stocks (approximate average if not less), they will not get a 7% average return. 4.5% is way more realistic. Additionally, many experts think the next 10 years of returns will be way below average. Only about one in 10 have a pension.
Jerry, you may be right. Given current market valuations, I would certainly expect that forward 10 year return expectations would be lower than long-term averages. However, it's hard to say what an average return would be for a 30 year retirement, too. Or who knows, things might actually be different this time? 😉
Gotta like that last name....
Where are you getting your data that t the average retiree has 50% in stocks?
Another great video. I think it is critical for people to understand this basic math of retirement planning. One thing one also needs to factor in is any tax. For example if investing in a 401K, the amount you withdraw is subject to income tax.
While inflation is problematic today, retirement covers a very long time horizon. So 3% is a fair starting point.
Historically US stocks have returned about 6% over inflation, bonds about 2% over inflation, so a basic 50/50 portfolio has returned about 4% over inflation; your 7% value.
So this seems to me to be a very good baseline back of the envelop exercise. Again, so important for people to master at least this basic exercise.
Only thing I would like to add is that it would be good for one, once they have mastered this, to go back and see what happens if we are unfortunate and inflation is higher, say 4% (on average over the next 30 years), or if returns are worse (our starting valuations as of today are worrisome for both stocks and bonds) say 5%. This helps to understand some of the uncertainty in the process, and some of the risks going forward. If you want to feel good try a return of 9%! (But do not plan on it. 😀)
I look forward to more of your videos!
Thanks, @Rodc ! The thing with these assumptions is that we'll only know if we're right in hindsight. I'm actually working on an online course that will allow everyone to run through these calculations for themselves. I hope to have it done around Thanksgiving.
Thanks for watching and thanks for the great comment! 🙏
I'm not sure how your portfolio is setup, but I've averaged 11% for more than a decade. 9% is not only doable but should be expected.
@@Dud-in9iu Last decade has been great. No doubt. And for that I an grateful. Allowed me to retire a little early. But the math of retirement has to account for average or poor returns in the future. Typical volatility. Inflation. Taxes. Healthcare. All sorts of things. The next ten years may be very different. Make sure you will be ok if that happens. Best of luck to us both!
@@Dud-in9iu the past decade should definitely not be expected for the decades of retirement. It was fueled by recovering from the Great Recession & accommodative monetary policy. You should expect regression to the mean as we enter a different phase of the economic cycle.
Could you please give the equation you are using to factor inflation?
I'm 59 and I want to retire at 62. I have an ocean front condo that I plan to rent out. that would probably get me $2,500 a month clear after the mortgage and HOA dues are paid. Add Social Security to that at about $1,600 a month if I take it at age 62 and my spending would be about the same as it is right now. That does not even touch my investments. I want them to ride until I'm 71. I expect $200,000 to increase dramatically by then, plus equity in the condo. I will make it to 90 something.
If cutting it close, consider the value of delaying social security. Up until age 70 the increase in annual payment is the cheapest way to get more guaranteed income you can find.
Sylvan, with those cost of living adjustments, waiting can be beneficial if you don't need the cash flow early in retirement. I agree with you -- if you're on the fence about waiting, maybe do it. Good comment! 🙌
I agree too and am doing the same, cutting it close too. But as long as I have no use for the extra money I see no reason to take SS now. I'm 65. Taking it at 62 would have been $1800, now $2400 and $3300 at 70. Cost of living adjustment @ 5% would be $90 for $1800 and $165 for $3300. Over 15 years that's $16,200 more if I wait until 70. I know of no other investment that pays a cost of living adjustment.
Why not take SS early & put it into a stock trading acct. & buy dividend paying stocks?
If you didn't touch it, the total would still be your family's, even if you died early!
@@rongendron8705 That's a perfectly reasonable choice. The reason to delay is because dividend paying stocks are not guaranteed, and social security is. Having guaranteed income is a valuable safety net, especially if you do not die early.
It's obviously a personal decision, and the individual needs to weigh the pros and cons and make the best decision for themselves.
I was just lucky that I have a pension,am a retired RN.Family emergencies keep cropping up making it’s difficult to save Since I had the credited years of service to retire with a full pension, I lucked out in that manner .After legally retiring at age 53,I worked for two years in a deferred retirement plan .The state pension system offered this option to those in the pension plan who retired and were under age 55. The deferred retirement called DROP( deferred retirement option plan) me a nice little chunk of change as money from a 457 B account.The fortune of having a monthly pension and the Social Security benefits I claimed at 62 are game changers. Am not rich but fairly financially comfortable.
Good points: I’m 60 & I’ll have 4 pensions: military, airline (2ea) and SS- so at 65 I’ll be at $4500 a month
Awesome, David! Those pensions really help. Thank you for your service! Have a great Veterans Day! 🇺🇸
And how do you know that you are going to live many years?
@@pablovazquezpiquet1769 What a pointless comment no one can be sure how long they are going to live.
@@SimonEllwood As someone whose spouse has a pension I can tell you that Pablo’s comment was just meant to be a jab because people who don’t have pensions HATE those that do and out of sheer jealousy they will say just about anything to make themselves feel better.
@@SimonEllwood Resolve to live to 100 or die in the attempt!
In today's world, when you talk of a pension, you could also add any passive income to that. Few people have pensions, and more should be working on creating passive income to supplement their income without working. As noted by Jerry Pascale below, a 50%/50% mix of stocks and bonds doesn't really work in today's retirement since the return are so low. A 7% return with passive/pension income is reasonable, but not if you need a 50/50 mix to ensure constant income.
@HarshColby -- always a plus to start setting up multiple income streams! 🙏
Excellent presentation, thanks.
Being 57 years old and wife 56, we start thinking about that time....retirement.
Talking about inflation, if you started paying 4,500 in home taxes and 18 years later is 10,100 dollars, how much inflation is that?
Thank you, Isidro! Just some rough calculations puts that inflation rate at around 4.9%. 😳 Let's hope your property taxes don't keep going up at that rate! 🤞
And if you move to a state with lower property tax how much deflation is that. Once you retire property tax is an option, not a requirement. I moved to Phoenix and pay $1600/yr for a $500k house. In a few months I'm moving to the Philippines where property tax is very low. Rents are also very low.
I retired to Ecuador at 50 this year, $2k/mo. gets you a very comfortable standard of living. Plus it is a lot more interesting, to me, living in a different country.
Overkill is underrated. I'm 67 years old and plan to retire in two years. Total net worth at retirement should be >$11MM. Not taking chances on my (our) lifestyle. Excellent video for young savers.
Dang, Rick! You're not playing with those kinds of savings! 💰
Good solid information. Would love to see you do an average income before retirement with a home mortgage and taxes versus a retirement income with a paid for home and lower tax situation. Thanks.
Jim, that's a great idea for a future video! 🙏
Thanks for the great comment!
This channel has made me evaluate all of the retirees I know and how broke they are.
Retiring today at FRA with 35yr work history the average is more in the range of 2000 a month Social Security benefit.
Thanks for the comment, Abe! 🙏
I worry about the average American's savings when I see these videos. Financial education is almost zero and getting people to understand that living 'below their means' is actually 'living within their means' if they ever want to retire.
Me too, @Charlie Fox . I saw where the savings rate that went up during the pandemic has dropped back down to where it was beforehand. It's a concern.
I'm 35 with about 220k in my pension, 6500 in a 457, and 6400 in a roth.
That's awesome, Jeff! Keep it up. Also, that 457 can come in handy -- there's no 10% penalty for withdrawals before age 59-1/2 if you retire before then. Good stuff!
Depends on your health.
@djs2356 -- great point! 🙏
Using the average SS is likely understating that benefit b/c it includes recipients that have been drawing (lower benefits) for many years based upon their lower incomes. Thanks for sharing this info!
Anthony, you're probably right that the average used in this example is a little high, but I'm guessing it's not too far off. I did some research on when people claim. Not surprisingly most people claim at 62 - around 30% of all retirees. It turns out that more people than I expected wait until their FRA or later. I may dig into these numbers and see how far off this is. Great comment! 🙏
Though I'm going to be ok at retirement age of 65 once your in your late 50's early 60's you quickly realize how some of your "stupid years" really cost a person!! Save early,save often,& save steady!!!
For sure! I'm certainly as guilty as anyone of this. I look back and wonder why I spent money on some of the things I did. There's no "perfect" in the game of personal finance.
You know, it might have been a good idea to start a while back. Since you're not really familiar with the market, I suggest reaching out to a financial expert for some advice or assistance in creating a realistic and attainable plan.
Thanks for this interesting and helpful video! I’m wondering how to figure out WHEN we will be able to retire? Here’s a quick summary:
Ages 54, 48
Combined 401k balance: 600k (in S&P index IRAs,
Contributing 23% annually)
My pension balance: 350k
Combined annual salary: 225k
Emergency savings: 65k
11 year’s remaining on 15yr mortgage. (170k equity)
Expecting over 2k monthly SS benefit each at age 67 yrs
Zero debt except low interest mortgage
Would like to see this run with 3.5% inflation, and 5-6% return for the coming decade, and a 3.25% withdrawal rate (numbers based on predictions from Morningstar, Fidelity, and others). The 4% rule was based on a 5.2% return from bonds. We are in a different world now.
Austin -- these are some great points. The spread between interest rates and inflation is the largest it's ever been. I'm not sure how much longer that spread can keep going. I may have to do a completely different video just playing with inflation rates in these calculations.
4%" rule"was not based on 5.2% bond returns. It was based on the years 1926 through 1995 and it ran every scenario using them dates.
Look at interest rates from 1934 to 1956 which was part of the study. Your statement is absolutely false
Look Trinity study if you don't believe me
When you talk about "average SPENDING" are you including income taxes and health care premiums in the spending?
Victor -- fantastic question. Yes, taxes and healthcare expenses are included in the data from the study. The detail they present is pretty fascinating -- I encourage you to check it out. It's hard to tell from the data, but my guess is that many retirees in the study are living an austere retirement.
www.bls.gov/cex/tables/calendar-year/mean-item-share-average-standard-error/reference-person-age-ranges-2020.pdf
Interesting. I am 59, single, no kids and NO debt in good health. My current retirement portfolio is 840K and I plan on working 6 more years and retire at 65. I figure my monthly
expenses to be about 3,750 per month. Looks like I am in good shape.
Crimson Pearl, no debt always sounds like a good plan! Congrats! Just based on this, you do seem like you're in great shape, but a financial plan may be a good investment. Something to think about...
@@PranaWealth and I bet Prana Wealth would be more than happy to be your "advisor". These are nothing more than infomercials. There is no "average" American.
@Dennis D, I agree. There is no average American and I said as much at the end of the video. I'm an independent, fee-only financial advisor and proud of it. And if things a great fit, of course I would love to work with someone who finds me here. After all, I am running a business. Is that so bad?
Have you ever covered the best tax plan for max monthly income. For instance. If you have VA disability, pensions, social security and a 401k, what max income should you stay under for max tax benefit?
Roy -- that's a fantastic idea. I need to think about the best way to present that. There are so many variables in those scenarios that all the permutations could get hairy. Let me mull this over. I try to walk a line between too much detail and staying accessible. Thanks for the great idea! 🙏
my wife and I are retired at 60 and 64, with our income from SS/retirements/rentals, is 18K /month. but we spend 10K/month for mortgages all utilities /food/ins ect. we still have leftover 8K. we don't touch our mutual funds /ira etc. worth 800k, also two house paid for clear title worth 1.1m and 1st house and 2nd house being paid by the 10K. just sharing and see if you think we need to get advice from profesionall finance adviser.
@REP -- it sounds like you're doing a great job on your own. A "real" financial advisor (a fee-only fiduciary one) could help you maximize returns, minimize taxes, and think of potential unforeseen risks. However, the way you're cash flowing, you sound like you're in good shape. Great job! 🙌
I’m 69 years old, single, no kids, no debt, own my home, good health….have SS and small pension… been retired for five years although had a small PT job for two years… my retirement funds are at 1.8 million and have hardly touched it…I need to get out of the fear of outliving my retirement…travel is my passion but with COVID that has been on pause although I did go to Italy and Argentina in 2021…I think I should be OK
@Hump -- you can't take it with you! There's a middle-ground between being diligent with your finances and enjoying them during this one life that we all have. I'm glad you were able to travel last year! 🙌
Hopefully, you’ll be back on the road soon. Enjoy!
Hopefully the decrease in spending with age will be sufficient to pay increased housing costs. My property taxes have doubled over 20 years. My retired father now pays more in property taxes and insurance than the annual total used to be back when it included paying the mortgage. This will even more directly impact renters as they get priced out of the housing market entirely. A landlord doesn't get a break on property taxes, and is directly influenced by increasing property values so they do pass it on.
Sylvan, you bring up a good point. It seems that, based on the data in this study, housing remains the biggest line-item in retirees' budgets. Also, I don't expect taxes to go down anytime soon, unfortunately.
I agree. I retired 20 years ago. I moved to Phoenix from CA. I paid about $1600/yr property tax which is maybe almost double in 15 years I've been here. But that's not exactly a deal breaker. In the past 15 years my house has appreciated about $1750/mo and I'll be cashing in my house and moving to the Philippines in a few months. When I look at property taxes in some states it looks like a lot to me. Fine if you work there and earn good money but as a retiree I see no reason to stay in a state with high property tax if that's a problem for a person.
Home insurance has gone up a lot so I self-insure. Look at the risks, costs and your assets. Americans have been brainwashed a little bit into thinking insurance for everything is needed. It's a little crazy. It's no different than investing in the stock market. You can lose a lot there too. If your house burns to the ground you don't lose everything, the land holds value. In my area some people buy homes to tear down so they can build a bigger house. I risk very little self-insuring.
Renting in the US is a really bad idea imo no matter what point in life. For a retired person it's going to be a serious problem as time passes. I am moving to the Philippines where rent is very low so I will likely be a renter. But $400 USD /mo for a house on a beach it's a good value.
There are options.
if you have three rental properties I think they would be better off than all that taxable 401k savings
I plan on moving out of the US to somewhere nice with a cheaper cost of living. $2,000 monthly budget
I retired 7 years ago at age 62. My wife followed 2 years later when she was 62. To date, we have not touched any of our retirement savings. We had no problem living off just our Social Security with no change in our lifestyle. The key for us was to be debt free by the time we retired. So we went in with no house payment, no truck payment, no SUV payments, no RV payments. It is amazing how far your Social Security will go when you are debt free. If I can talk the wife into purchasing a New Motorhome that could change. The good news is if we go that way we will most likely pay cash for the Motorhome. Not bad for someone who is just a Thousandaire.
Patrick, I enjoyed the video. And I understand your point, that is, the younger one starts to save for retirement, the less than need to set aside each period, or month for ex, in order to build a given nest egg over time. However, in you examples, if the CPI rate is 3%, doesn't the amount saved for each case need to be the same going forward in order for each group to maintain the same standard of living. To compare apples to apples, the calculations need to be based on time, not on their age. In other words, in order to maintain the same standard of living, for the 65 year old to keep up with the 55 year old, the balance in all three retirement accounts in 2032 would need to be the same; $560,177 dollars. Thoughts? Comments?
The most important thing that should be on everyone mind currently should be to invest in different sources of income that doesn't depend on the government. Especially with the current economic crisis around the word. This is still a good time to invest in various stocks, Gold, silver and digital currencies
My last 8 years of working was with the post office as a technician repairing mail sorting machines, this happened after my job was sent to China. China didn't take the job it was sent over there by because those in charge decided they could make more money by using foreign labor.
While working there I contributed to the TSP and they matched 5% of my pay, the fund choices were index funds that have VERY low expense ratios so all that money went to work for me. I was also able to buy me three years of army time back so that gave me 11 years of service when I put my payments in. That pension (11% of my pay) is indexed to inflation just like social security is so it almost keeps up with inflation, it's not much but that let me retire at 62 without having to eat ramen for the rest of my life. Ive been out for 12 years now and things are going along fine my retirement savings are growing a little every year so I've managed to stay ahead of inflation so far..
It's important you know exactly what your expenses will be in retirement so you can plan things out. It's also a lot easier if you can retire debt free
@dell177 -- glad to hear you're making it work out. Yeah -- globalization has not done any favors for normal Americans over the last few decades. My grandfather was in the Army and also worked at the Post Office. Thank you for your service. 🇺🇸🙏
That should not be allowed
No wonder our neighbor get our maul and them ours, must be inverted mail sorter. Lol jk
Straightforward and easy to understand numbers. Married couples need to add in planned life expectancy and the impact of one spouse dying on the social security income and also on taxes when you lose that second standard deduction. I retired two years ago and my biggest regret financially is I still have a mortgage. I could pay it off but prefer not to pull that much out of my investments in a down market. I love being retired! My financial plan in this down market sits at around 75% chance of success to not run out of investment savings by age 95 for surviving spouse. Realisticly, we both know neither of us will live to age 95 so a 75% success rate on that end goal is perfectly fine. Even without investment left, there will still be income from Social security and my small retirement plan income. In addition to panning your savings, invest time in maintaining your health ahead of retirement. Exercise and try to eat healthy. Good health impacts the quality of your retirement as much as good savings. Thank you for a great video.
My wife and I are in our mid-30s, trying to save for retirement while balancing the demands of current financial needs. Do you think social security will be around in 30 years? Should we even factor that into our calculations? Also, these averages are nice but how would you calculate savings needs based on above or below average icome/ spending/lifestyle and goals?
Dan -- you're bringing up a valid concern here. We really do have some issues with our entitlement programs. At some point, things will need to be restructured. I'm less worried about Social Security than I am about Medicare. Maybe assume you'll get 80% of what you're supposed to get? Hopefully, we'll all be surprised (to the upside). I'm 48 and I'm not planning on 100% of it being there when I retire. It'll be there in some form or fashion, but who knows how much it'll be.
There are too many people that have nothing except social security. It can’t go away. The idiots in Washington will just print more money.
Easy. If you have below average income and above average spending/lifestyle the available SS won't be enough.
Are you considering the deduction of Medicare premiums from Social Security benefits?
Dennis -- I believe that is indeed factored into these numbers. The study is pretty detailed, if you want to check it out. The data is fascinating.
www.bls.gov/cex/tables/calendar-year/mean-item-share-average-standard-error/reference-person-age-ranges-2020.pdf
The average annual expenses you gave was for a couple but we know it’s not half of that for singles. However, income is halved. More and more Americans are single, in fact over 50% so please share the numbers for singles. Thanks
Jen -- my video for single retirees comes out this Thursday! So be sure to watch out for it!
The numbers were actually somewhere in between the two. The study said that there were 1.7 people per household, on average. So it seems that, while most households were couples, there were some singles thrown in there as well.
@@PranaWealth thanks I’ll watch for it! Do we know that the .7 person is an income making person? Households often have an adult dependent. Google says 50.2% of adults are single and that number increases for women as their spouses pass over time. It seems a single persons annual expenses would be similar to a married couple but you won’t have that 70% extra income from the .7 of another person. It’s either one or the other so it really skews. And doubtful that .7 person if living in the household has the same income rate as the 1st. 🤷♀️
Jen, these are great questions! Unfortunately, there's no way to parse out whether or not there are non-income earners in each household. The data is just one long PDF of averages, so it's impossible to break things down in this way. I'm sure the BLS has the data, though.
Look for the video tomorrow at 3:00 p.m. EST! Thanks for watching and thanks for the great comments! 🙏
I retired 20 years ago at 45 and divorced 5 years ago. Everything about life depends on each individual of course. In my case being single has been much less than half. This is because I like a simple life and that became a problem for my ex. She wanted to eat out a lot but it was making us fat and unhealthy as well as costing a lot. So I stopped wanting to eat out which pissed her off. Sitting on a couch watching cable TV wasn't healthy either. I wanted to cut cable, she didn't. The day she moved out I threw out the couch and TV. On and on. Depends on what kind of life a person wants.
Now I'm moving to the Philippines. Nice climate, much lower cost of living, better medical and assisted living options for later. She never would have agreed to move there. Plus as a single American dating young Filipinas is very easy. Finding a great young slim wife should be very easy.
Single can be way less than 1/2 the cost. Or it can be more. Your choice.
@@MrWaterbugdesign why would you be excited to go find a young slim woman in a poverty stricken country? Should I want to leave my kids and friends to go find a young man to spend my senior years with on the beach? I think living in the US as singles is more logical for the majority and should be used when calculating costs for most of us. Lifestyle can be a huge factor but generally speaking housing costs for 1 vs 2 are similar. Insurance and cell phone and streaming etc is not usually double for 2. Currently with half the population single, and the other half sharing accommodations, that means 67% of households are single.
What if a couple retires at 60 and delays taking SS until 67. Living on their portfolio alone for seven years.
Uh I just turned 65 in May of this year but I don't reach FRA until next September (66 +4 mths), which is one of the reasons I will continue to work until at least next summer. Shouldn't any assumptions be made based on people 's FRA?
Dennis, you bring up a great point here. I think a little over half of retirees apply before their FRA, with about 1/3 applying at 62. So the data won't completely line up with FRA, but it should be somewhat representative. I wish they would provide more detail, but it's broken up into 10 year age groups. Also, it's just a PDF they publish, so we can't examine the data ourselves.
Does savings mean strictly $Cash or include your equity in your house?
Great question, Yanni! I would say that home equity is certainly part of "saving" in general. But we all know from what happened in 2008/2009, there are liquidity and market issues with relying on that completely.
I see you are dividing the year need by 4% but what role do taxes on that money play.
Other then our 401k’s and IRA’s, I decided to open up a brokerage account with Schwab. I’m not huge finding the correct funds to invest in, so I decided to keep on throwing money in the SWPPX fund which is Schwab’s S&P. Hopefully in 20 years I will get a decent rate of return.
My wife and I are 35, we're both worried social security won't be around when we retire. I hope we're wrong. I also worry that housing is so expensive that our peers are unable to buy and will be stuck as renters their whole lives. Have any of you had similar worries?
There are loans where ups only need 3-5% down to get a mortgage. But words of caution, have 3-6 months loss of income fund set aside for emergencies due to the lack of equity in the home. That way off for some reason you have to sell the house at a loss it won’t be a foreclosure.
@Chad Z -- I agree with Michael on this. Definitely keep that 3-6 month emergency fund. Also, the 80/15/5 mortgage setup is an option, but just be sure that your housing costs are less than 28% of your total income (a.k.a. don't buy too much house). At some point, valuations will come back down. You could always save up some dry powder and wait for that.
As far as Social Security goes, things aren't looking great. At your age, there's a good chance that things will be sorted out by the time you get to retirement. Unfortunately, something might have to break between now and then before it gets fixed. Unfortunately, reconfiguring these entitlement programs is the third-rail of politics. Nobody's going to do it proactively. For now, maybe plan on 80% of your benefits.
@@PranaWealth thanks for the thoughtful reply. Keep up the great work.
Thank you, sir! 🙏
Do you include health insurance costs as part of “Income needed per month”? What is the average monthly health insurance cost per retiree now?
Greg -- great question. Health insurance premiums are included in these numbers. It's saying that for the average retiree 65 and older, they're spending $4,854 per year on health insurance.
I went over some of the healthcare costs in last week's video. Check it out if you haven't already: ruclips.net/video/KTsw9h4Cq50/видео.html
Thanks for the great question!
Your quick reply earned a new subscriber. I will check out the other video.
Wonderful! Thank you, Greg! 🙏
What are the numbers with 8% inflation
Being debt free with a free and clear house helps. Also downsizing to one car helps.
Hey Patrick, love your straightforward, fact-based approach. Do you have a video on "retiring on rental income"? (100% of our income is rental income.)
Thank you, Dan! This is a great topic... I'll have to add it to my queue. And that's awesome that you're 100% funded by rental income! I'm curious how many properties you own. I've worked with folks who had 3 to 5, but have also met people with 12+.
I'll be retiring with 25, combination of single, multi family and a few Airbnbs. I'm also curious about this. I will have a small pension but will be mostly relying on rental income.
Do you think the market will return an Average of 7% over the next 10 years considering the market conditions at the moment? I do believe that returns could be historically low for the next decade or perhaps even longer than that.
Remember The Japanese stock market hasn't been able to return to its 1990s high for almost 3 decades now and during the years after the great depression the Dow Jones industrial average stayed flat for 25 years. It's quite possible for the stock market in the US to peak and then stay flat for a two decade period which would literally be 2 thirds of someone's entire working age. Scary but perhaps we have to think of other retirement strategies other than the market.
Dane -- I'm using 7% here because it's a round number and somewhat close to historical averages for a diversified retirement portfolio. What happens over the next 10 years is anyone's guess. Valuations are incredibly high, so you'd expect returns over the coming 10 year period to be lower than historical averages. But you never know. If you look through history, markets can hang out in overvalued territory for a long time before they come back to earth. That being said, the current spread between actual inflation and interest rates doesn't bode well.
Japan is certainly a cautionary tale. They've had the same demographic issues that we're about to experience. Don't forget that there are plenty of long stretches of history where Treasurys out-performed the S&P 500.
The truth is that nobody really knows what's going to happen. Unfortunately, with yields so low, being cautious can be uncomfortable given current inflation.
Current market conditions have very little to do with future returns over the next 10 years.
The biggest consideration is what will happen in the next 10 years. Future stock returns are based on future events that haven't happened yet. We have no idea
I think you may have a fairly significant math error in these videos. You are including the negative effects of inflation on expenses but removing the positive effects of inflation on both investment returns and wage growth.
The market has historically returned about 10.5% annually. That figure should be the one used if you’re inflating expenses at 3%. Wage growth should generally match inflation for the middle class workforce as well (some will get much higher raises, some very little).
A good metric to use would be the historical % pay increases of a GS-9 government employee. Wage inflation info may be organized for the “middle class” demographic and provided somewhere by the BLS as well.
Thomas, you bring up some good points. As far as returns go, you could argue either way, especially if you're talking about your typical 60/40 portfolio. As far as inflation goes, I think everyone is concerned right now, hence the higher number.
Thanks for the great comment! 🙏
Please project for single persons alone.
Chris -- great question! I'll put it into the queue for its own video. Give me a few weeks -- these things take some time and planning to create.
@@PranaWealth Yes! Please do it for a single person! I look forward to it!
Sounds like I need to move it up in the queue! 😉
Yes this is actually a more important figure based on data trends as marriage and long-term relationships are coming to an end. People will need to assess expenses for a single person and logistically other factors of aging we will have to prepare to handle on our own. I feel this will be an ever growing issue over the next twenty years.
Done! Here you go:
ruclips.net/video/lRzuLA4pZmw/видео.html
Sad these infos were not available 20 yrs ago. I sell medicare plans and often encountered seniors crying for help as they are living off ssi, some less than 1k per month, others a little better around 1.5k per month. This matter should be thought in high school.
@Aaa Bbb -- I really do think that financial literacy is something that we need to teach everyone in high school. It's one of the most fundamental skills you can learn, but it's rarely taught, even in college.
Just don’t go into retirement with a mortgage. Remove that variable long before. Americans say no debt other than….house…..car… wake up. I’ve got a pittance left on mine at 49 years old, but an extraordinary low rate and have stopped over paying for now and pushed those payments into 2 funds. I’ve got 400k in Retirement and 115000 in liquid assets, 75% cash. All up equity 750k. Keeping head down and making hay while I can. Only now realise i live below my means and getting confident retirement should be good, whenever that comes. I just feel the need to make things happen now and prepare for the worst. Can’t stand people borrowing money for things they can’t afford.
@downburst1 -- Good comment. There are a few instances where having one of these low interest rate mortgages isn't going to hurt you too much. I made a video about this: ruclips.net/video/YQlDg1MxJyo/видео.html
However, you definitely want to have a plan to pay off non-mortgage debt before you retire. Personally, I prefer being debt-free.
Thanks for the informative video. A pandemic layoff forced my retirement at 65. I'm debt free, own my home outright, have a high social security balance and small pension that I don't want to claim until 70. My retirement investment is about $1.7M and I have about 1 years worth of cash on hand.
The problem is I can't shake the concern about having enough money to survive. After 50 years of saving for retirement I'm having difficulty with the idea of spending my hard earned savings. I know it's crazy but I fear being elderly and poor.
How do I learn to become comfortable with living on diminishing assets? To many people I'm well off but I'm having difficulty spending $6 at McDonalds because I'm paranoid that at 90 years old I won't be able to pay my bills.
Thanks again, I really value your videos.
@Lockman 04 -- You're bringing up a very important issue here. There's a middle-ground somewhere out there that makes sense as far as retirement spending goes. We must plan to live a long time, but then again, none of us are promised tomorrow. Based upon what you've written here, you sound like you're in a very good financial place.
Have you thought about hiring a financial planner to discuss this stuff with every year? Not a brokerage firm, but a true, fee-only financial planner that is a member of NAPFA or the XY Planning Network. Having someone run the numbers can be reassuring.
You also bring up some of the psychological difficulties of retiring. Worrying about the worst that could happen can be pretty dang stressful. It's something I've considered for a future video or two, but also a difficult subject to get my arms around.
I don't know the specifics of your situation, but I've worked with plenty of clients who are similar to you. My guess is that you will be okay. I think, maybe, the best thing you could do would be to take action on running the numbers. My guess is that your odds of running out of money are pretty low.
Whether it's me or someone else who is a better fit, I'd recommend talking to a fee-only planner to go over your numbers and get some reassurance. I hope this helps! 🙏
If you’re among the small percentage of the population that actually makes it to 90 years of age, your needs will likely consist of a one bedroom apartment with a small kitchenette and an easy chair strategically positioned in front of the tv! Quit your bitching and “super size” your freaking McDonalds order…….🙄
@@ddellwo According to several sources on the internet, there is about a 35% chance an American male 65 years old will live to be 90 years old. And I'm good with living a minimalist life style. The real wild card is medical costs and the cost of assisted living if it's necessary (hopefully not).
Also my reluctance to spend money is a psychological condition from saving for 50 years and now being good with diminishing retirement assets. And, yes I will take your advise and super size my happy meal.
Me too..I'm retired and still careful.
@@lockman004 I can certainly understand your mindset as I have a similar one. I think prana wealths of running the numbers is solid. While I think the advise to super size the happy meal is more a metaphor for enjoying life, taken literally it’s a guarantee to incur increased health costs. How about run the numbers and find some enjoyable activities to keep moving and stay healthy. Better chance of keeping health costs in line that way not to mention a quality of life. And ok, once in a while indulge in the super size. Best of luck to you…I agree, it sounds like you are in good shape.
I think the pension idea is moot for younger generations. I will def not be receiving one. I basically created my own with rental properties and now I am diving hard into monthly dividend ETF's as the world of nursing (I am one) is so crazy right now, that I am focused on income in my 40's rather than saving the large chunk. Nurses are getting so abused that I'd rather phase myself out and work less vs amassing a lump sum and hope I win in the end.
I am more fortunate than many nurses I know as I built my rentals through the years. Many will either suffer or leave.
Thoughts on income replacement while building a smaller portfolio? I know it might be easier to plan if you don't have multiple pieces of a pie to draw income from, but I think it's more ideal for younger people to have more than 1 job and are building passive income
Dan -- I have a couple of friends who are nurses. Based on what I've heard, I'm not surprised that you're exhausted at this point. Building up a portfolio of rentals is something that I've seen several people do well over the years. I think it may take some time to do that, but I've seen it work before.
I really do think that having a side-hustle is a great idea for younger people these days. Everything is so expensive and it's hard to make ends meet for what younger people are getting paid these days. I think the answer is to work hard, spend less than you make, and invest the rest. Not sexy, but it works!
10,000.00 per month living expenses? Where? I know people who live well on less than 2,300.00
Those retiring before full retirement age need to budget In cost of private health insurance until their Medicare kicks in.
Francis -- you're not kidding. Private health insurance is really pricy. It can be a huge cash-flow drain early on if you retire before 65. Great comment! 🙏
If you can control your TAXably income ACA is not means tested.
A lot of people do not have pensions like me. Was not in a job long enough or the company did not offer pensions but a 401k instead. So your assumptions are off a bit.
Unfortunately, pensions are becoming a relic of the past...
Please be sure to state that SS payments for 85% is taxable! This is a big deal.
Great video!! Living in NJ that amount of living expenses number seems low! :-) Do you know if that includes Medicare and taxes? If not, then it's about ballpark. Even the SS amount seems low as well ... but they both come from statistics so must be somewhat accurate.
Pensions are thing of the past for most people. I will have a small pension when I retire but the company stopped it in 2015 and I'm grandfathered in.
Is the 7% growth that you used including dividends?
Vinny G -- these expense numbers do include taxes and Medicare premiums. I think there are a lot of folks who just live on less or maybe can't afford to spend more.
You're right about the pensions. I'm seeing fewer and fewer of them with clients. I would expect that more companies will continue to buy out all the old pensions at some point.
The 7% number is a total return estimate -- dividends are included.
@@PranaWealth Thanks for the answers. My idea of what's needed for living expenses is skewed by living in NYC and NJ all my life. I would venture to guess that most of the US is in areas that are more affordable to live.
The 7% is about what I'm thinking with dividends, just wanted to see if they were included in your calculations or if that was just the growth aspect. Quite a few "Wall Street" type people have quoted 10% for a few years now but IMO being conservative and then being surprised on the upside is a better approach.
Thanks again!
Vinny G -- you are right! Definitely better to be surprised on the upside than on the downside! I'm guessing that NY/NJ is a bit more expensive than ATL. That being said, I always feel like everything is half-price when I go home to see my family in S.C. Life in the big city, right?
@@PranaWealth HAHAHA! About 34 years ago I went to Charlette, NC and was excited that we just bought our first house and was saying to the people there how I really liked the area and I had just bought it. I said innocently how we got a good price and paid $138,000 for it and they were 'wow, it must be a mansion' (it was a 1200 SF townhouse LOL!). That night I picked up a home booklet and the houses were like 3 times the size of what I bought for roughly 1/3 to 1/2 of what I paid. I'm sure the taxes were also inexpensive.
Yeah, life in the big city! And I think NJ has been #1 in property taxes for a while.
That's so funny! My family lives outside of Charlotte, just into S.C. It really is so much less expensive there. I think about moving back a lot!
I'm 62 retiring in January. Most of my friends don't have pensions they are withdrawing from 401k to fill in any income gaps. Most companies can't afford the cost of pensions. Government workers/teachers etc probably still have pensions..
I'm seeing fewer and fewer pensions for people who aren't in the public sector, so I'm not surprised you're hearing the same thing. However, congrats on retirement! January will be here before you know it! 🙌
Pensions aren't always a safe bet. Lots of pensions are underfunded which means they don't have enough money to cover their future commitments. So, if the new folks aren't contributing more, they may have to cut payout or figure something out.
@Kay M -- you're right. There's a chance that an underfunded pension gets punted to the PBGC and the monthly benefit is reduced.
Less spending after retirement? I have increased spending due to increased medical costs like drugs and having to pay others to do what I used to do myself; both are significant costs. The only decrease I have had is no debt whatsoever, like mortgage, car loan and other loans. No one should retire with lots of debt.
Virginia -- you're not alone in spending more after retirement. I've seen it happen before. Everyone assumes your spending drops -- and in some cases it does -- but not always.
750k wife and I have. 56yrs and 53yrs old.
Awesome, Bruce D! It sounds like you've done a fantastic job of saving with plenty of time left to accumulate. 🙌