People are facing a tough retirement. and it's even harder for workers to save due to low-paying jobs, inflation, and high rents. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire in.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
I've always delegated my excesses to an advisor, since suffering major portfolio loss early 2020, amid covid outbreak. I'm now semi-retired and only work 7.5 hours a week, with barely 25% short of my $1m retirement goal after subsequent investments to date
Thanks for sharing your experience! I've been managing my portfolio myself, but it's not working out. Do you have any recommendations for a good investment advisor? I could really use some help
Joseph Nick Cahill is his name. He is regarded as a genius in his area and works for Empower Financial Services. He's quite known in his field, look-him up.
Thank you so much for the suggestion! I really needed it. I looked him up on Google and explored his website; he has an impressive background in investments. I've sent him an email, and I hope to hear back from him soon
I just turned 44 and awfully late to investing with barely any portfolio except my 401k, I have a decent amount of cash saved up and with inflation currently soaring AGAIN, I’m getting worried about retirement, my intention is to retire at 55. How best do I maximize my savings of over $110k
Retirement is now more difficult than it was in the past. it's all about balancing your risk tolerance with your long-term goals. Maybe consider speaking to an advisor to help in diversifying your portfolio to spread out the risk.
Many people often underestimate the effectiveness of a financial adviser in planning for retirement. Over the past 5 years, my FA has consistently restructured and diversified my portfolio and expenses, resulting in over $1 million in gains. While it might not seem like a huge amount, retirement now feels within reach.
My FA Judith B Richards a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I just looked up her website on google and I would say she really has an impressive background in investing. I have sent her an email hope she gets back to me soon. Thanks
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Wendy Hubbard Stewart for helping me achieve this
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 $120k in a savings account that I want to invest in a non-retirement account. Where would you invest this as of now?
Look up, dividend aristocrats. Pick six to ten from that list. Those companies have a track record of 25+ years of paying dividends. Also, you should work with a financial advisor to help set up a well-structured portfolio.
@@HopesKruses I agree. Based on personal experience working with a financial advisor, I currently have $800k in a well-diversified portfolìo that has experienced exponential growth from when I started. It's not only about having money to invest in stocks, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
@@KarenDuncan-o5s Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.
@@BettinaBischof I'm cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like "MARGARET MOLLI ALVEY" I've worked with her for 4 years and highly recommend her. Check if she meets your criteria.
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!
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Your videos were great!! I am one of your viewers and have been watching your videos lately. I would like to invest, but I still can't find the right investment to commit to. I will appreciate any help here.
I usually go with registered representative; Zachery M Demers, He provides a more grounded approach, looking at factors like market demand, regulatory changes, and adoption trends. This approach enable to make informed decisions rather than solely relying on emotional market dynamics
Zachery M Demers has really set the standard for others to follow, we love him here in Canada 🇨🇦 as he has been really helpful and changed lots of life's
I plan to retire or reduce my work hours in five years, and I'm interested in how others allocate their income between savings, spending, and investments. I currently earn about $175K annually but haven't built up much in savings so far.
There are numerous strategies to achieve high yields during a financial crisis, but it is crucial to undertake such trades with the guidance and supervision of a professional financial advisor to ensure informed decision-making and risk management.
That's true. I've been assisted by a financial advisor for almost a year now. I started with less than $200K, and I'm just $19,000 short of half a million in profit.
Nicole Anastasia Plumlee is the coach that guides, you probably might've come across her before I found her through a Newsweek report, she's quite known in her field, look-her up.
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.
Diversify your holdings across several asset types to reduce risk rather than putting all of your eggs in one basket. If you don't know a lot about finances, speak with a financial expert.
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 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.
Sharon Ann Meny is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
My original retirement plan was to retire at 62, work part-time, and save money. However, high prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.
I’m 77 and still working full time. I do enjoy my work, it provides me with purpose and has secured my financial future. Most people are too eager to retire as early as possible. Even if you do retire early, best to get a part time job for the reasons cited above, as well as following many if not all of the suggestions in this video.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
Sonya lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you so much! This is exactly what I needed right now. I wrote her an email and am waiting for her reply. Hopefully, she responds soon. I plan to start the year on a strong financial note.
Honestly, this concerns me and has left me uneasy. Especially this potential depression, no more a recession. I'm unsure about my $130K account strategy, considering the uncertainty of this whole recession mostly.
Agreed! this is why I work with one. My $520k portfolio is well-matched for every market season yielding 85% rise from early last year to date. I and my advsor are working on more figures for this year. IMO, financial advisors are the most sought-after professionals after doctors.
I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation
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
No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Lately, l've been reflecting on my retirement plans and questioning whether my 401(k) and IRA will ensure a secure future. Additionally, I've invested $800K in the stock market but I have experienced fluctuations and modest returns. I'm seeking an approach that matches my risk tolerance and aligns with my financial goals.
Using a 401(k) or IRA is a valuable strategy for retirement planning, providing potential savings growth and tax advantages. While the stock market is promising, expert guidance is essential for effective portfolio management.
I’m 55 from South-Yorkshire but worked overseas all my life. I have savings of €1 million and I'm ready for retirement, only concerned about the soaring inflation. Is this enough to retire happily or do I need some sort of money management?
Generally speaking, a good number of people discredit the effectiveness of a certified fiduciary in planning for retirement, For over the past 10years, I’ve had a CFA consistently restructure and diversify my portfolio/expenses and I’ve made over 3m in gains.Might not be a lot but retirement doesn’t seem so farfetched anymore.
I've stuck with the popularly ‘’Jennifer Leigh Hickman” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
@@Olea-i2d Hi, a shared experience, invested funds into a SIPP and was waking up to 8k growth, 15k growth and one time 27k over night. We are getting 10% approx at the moment but keep to 20% tax rate level for income withdrawals, partner keeps to 0% tax rate. Our FA has set up a cascade system that keeps us 5 years away from investment fluctuations and inflation worries. Hope this helps.
Excellent video - a bit late for me, as I retired 8 years ago, but I would also add another recommendation: if at all possible, phase your retirement. By this I mean cut down your working days in the years up to full retirement. For many, it might not be possible, of course, but if it is, go for it. The shock from full time to no time working can be massive.
Just came to leave a comment to say a huge thank you to you! Because of your content I've gone from having 0 in savings and retirement to working out a budget and lifestyle adjustments to enable me to maximise pension contributions, set aside money for emergency savings and contribute to a S&S LISA regularly (even if it's not huge amounts right now). Even managed to get a few bob put away by putting the budget into action. All within a few months. Without info like yours I'd still be frittering away all my cash without thinking about my future (or rainy days) at all. Thank you so much!
@@ianjames3078 thank you for the tip - this is a really good thing to know and be aware of. I'm still really new to fiscal responsibility and development, so this is one of those things I would never have considered. Thank you for sharing your experience!
I’m worried about retirement planning and I want to ensure a comfortable future. I’ve worked hard my entire life and I want to enjoy the fruits of my labor without financial stress. I’m really concerned about whether I’ve saved enough and invested wisely.
I've been thinking about retiring recently. Additionally, I placed $800K in the S&P 500 to safeguard my financial future. I need to find a strategy for investing in companies that will match my risk tolerance and financial objectives, such as Nvidia and, of course, AI stocks, but it seems like the market is now gloomy.
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 $255k to $750k.
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 reaching her.
Love this one Pete. The only thing I’d add is the thing I bang on to my daughters about all the time; the earlier you start the easier it will be. (That and “a man is not a financial plan” 😜)
@@wizzyno1566 That's equivalent to having a man say, "a good woman is a good financial plan. It's an option men have." Not exactly a very good option for either category.
Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
I love Nicole. She's great. No really, she's the best. Just ask my mate Dave. He's met her and says she can breath through her nose, all sophisticated like!
Is really important to acquire as much money as you can before retirement, that's why I make it a priority to invest. Right now my portfolio has good companies, however it has been stalling this year. I’ve approximately $700k stagnant in my reserve that needs growth, any suggestions to grow my portfolio will be highly appreciated.
Very true , I diversified my $400K portfolio across multiple market with the aid of an investment advisor, I have been able to generate over $900k in net profit across high dividend yield stocks, ETF and bonds in few months.
‘’Jenienne Miniter Fagan’’ 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
I'm turning 49 this month and only got wise late last year. The eternal question of "how much is enough to save?" Has almost driven me mad. I'm putting in 30.5% of my earnings and I'm really surprised that I can still live and stuff. It's hard but I've recalibrated. No way I'm working until 67 (barring significant life events, terms and conditions apply). Thank you for helping me feel I'm neither alone nor off track
@@kw8757I'd be careful where I put my money. If you're into pension funds and stocks you could be hit really hard prior to retirement and not have time to recover. Don't take advice from RUclips or Internet "gurus". We are now in a very fluid political climate so be very careful how you manage or diversify your resources...
I maxed out on annual and lifetime allowances particually in the last few years of work putting 50% of earnings into AVCs. It did mean skimping a bit but that ive never been extravagant. That enabled me to retirire at 56 on a better income than my previous take home. You do need to over budget as pensions dont keep pace with inflation and the cost of living has gone up perhaps 30% in the last 4 years.
I have an Investment portfolio that's worth $1million, I don't think that'll be enough for retirement. I need an average risk investment strategy in stocks that'll give me more yield.
As they say, time IN the market is better than trying to time the market. I think you should seek advice from a licensed financial advisor. They’ll give you guide on high risk and low risk investment strategies for your portfolio.
Now in my 70's, I retired at 65. I worked from the age of 15 to the age of 65, sometimes working up to 70 hours per week. Throughout my working life there was enough to pay all my bills etc though certainly nothing left for savings. I now live on my basic state pension, it's enough to cover all my expenses. Why are people spending their working life worrying about pensions? I was always taught to 'cut the clothe to suit'.
just the fact that you admit there are "assumptions" (educated guesses) that go into planning you are ahead of the rest of the planner pack. Great job.
I am in my early 60s and retired at 53. Lots of people gave me pushback because they had difficulty grasping the concept of not working if you don’t have to. I looked at my life as stages. I earned everything I have now through a lot of hard work, but I owe it to myself to “stop and smell the roses” in my final stage of life. In my case I left the country after I retired and live in Latin America. It allowed me to get away from all the negative things happening in America while appreciating my new environment. I have yet to meet anyone who regrets retirement.
Nice way to retire. For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $750k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
I definitely share your sentiment about these firms. Finding financial advisors like *Marisa Michelle Litwinsky* who can assist you on things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Marisa has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.
I’m retired but use a couple of side hustles to supplement my pension. Not a massive amount but it helps. So it’s not all about how much you can save ( although this is essential) it’s what skills or possessions you have that you can use in later life to provide income. I’ve been a collector all my life. My children are not interested in my things and now I enjoy selling them on various platforms in the knowledge that they are going to people that want them.
Somebody once said, You can never save enough for retirement but that doesn't mean you shouldn't try anyway. Take your health seriously now to reduce the financial burden of failing/ill health and ACTIVELY plan your retirement so you can still make money even then. Goodluck to us all.
That's very true. Besides IRA and 401k, are there other ways we can prepare ahead of time for our retirement? Mine draws nearer by the day and I'm gradually going into panic mode
No need to panic... The simplest way is to save more and invest those savings in profitable ventures (you must either understand what you're going into or get the services of a professional so you don't end up losing your savings)… I have made a couple of thousands yearly for the past 3 years through only stocks and Etfs and if I can keep at it, I won't have much to fear even with less than 6 years to my retirement...
By professional, do you mean an FA? Did you use one? What are the steps for getting one? Like a really good one? I could definitely use external help right now. Thanks
Yeah I did. I think you should start by looking out for those from reputable firms and good track records. You should also make sure the person is licensed. Personally, I use Marie Kelly Matwick. She's good and you could also check her out.
i always find these videos helpful when they tell me i should save monthly more money than i can earn. Thankfully my children aren't in the same position due to their hard work and my banging on about starting a pension as soon as you can.
I’m planning on retiring at 55. I’m the last month eligible to. I have a 35 years in a Final Salary DB scheme and we have now this financial year gone over to a CARE DB scheme. I pay into AVC’s, stocks & shares ISA and Premium Bonds. I make sacrifices to unable me to retire early but i still have a nice life. The reason I want to retire early is because I no longer enjoy my job and you spend a long time dead!
My father worked tirelessly to build a decent pension, lived well too . But my point was it turned out totally fruitless as he died a couple of years after retiring..
I retired last year aged 55…100% recommend it! Life’s too short if you don’t enjoy your job and you can afford it. I worked hard and saved hard and enjoy simple things (fortunately!).
The concept of retiring at 67 (let’s be honest it will be 70 by the time a lot of us in our 20’s and 30’s retire) is absolutely crushing. There is no way this is happening to me, I refuse to let the government tell me when I can stop working. 55 is my target.
Unfortunately the gvt is also controlling this by increasing the age you can access private pensions to 57 from Apr 2026. Retiring at 55 isn’t possible unless you have other forms of income besides your pension to depend on.
@@sushilvekaria164That’s exactly what I’m talking about, having enough assets in places other than a workplace pension or SIPP to bridge the 5 year gap. Although, the government is probably going to have to make withdrawing any money between 50 and 60 punishing in terms of tax to keep high earners in employment longer to pay for the aging populations state pension. I don’t think there’s any getting away from it ultimately.
I am 55 years old and currently putting a considerable amount of my salary into my pension but I am also saving about £400-£600 per month into my ISA. My question is, is it better to put that ISA money into my pension as I then get all the tax relief on it and therefore there is more money in the pension pot to try and gain from the investment fund growth? This question has baffled me for a while. Please help 😕
I am in my early 60s and retired at 53. Lots of people gave me pushback because they had difficulty grasping the concept of not working if you don’t have to. I looked at my life as stages. I earned everything I have now through a lot of hard work, but I owe it to myself to “stop and smell the roses” in my final stage of life. In my case I left the country after I retired and live in Latin America. It allowed me to get away from all the negative things happening in America while appreciating my new environment. I have yet to meet anyone who regrets retirement. I still give kudos to my Financial advisor
I would ask what easily accessible savings you already have and when you are likely to need to use them. Dreading my next MOT I spent £14000 cash on a car last year. Of course even doing that someone might be able to show that it would have been better to put the money into a pension and buy the car on finance.
@@daveaglasgow That is exactly what I traded in with various warning lights on. After looking around I ended up buying the same model car as I had but with 100000 less miles and a long manufacturer's approved used warranty. Anyway the car cost half what will be paid into my pension this year. Meanwhile a colleague spent £18000 on a new plaything motorbike then retired the next year while another colleague spent £56000 on a brand new Plug in Hybrid months before he retired !
Brilliant video as always Pete - I really like your bullish comments about investing aggressively - Many of the default pension funds and ISA’s underperform, so I took control and invested in low cost Vangard funds instead, 2/3 in US equities and 1/3 Worldwide. It was the best thing I ever did.
I like the video. I’m only a couple of years from target retirement. I’m not sure about the 4% rule, and starting it from 67. Also but harder to model is that you’re likely to need more early in retirement than later on. I think the hardest bit is figuring out what income you will need!
Do not rely on having your spouse's pension contributing to the household figure though! I'm two months off retirement age and my husband and I were looking forwards to being relatively comfortable, what with two state pensions and his decent workplace pension. Then he passed away and I'll be down to one state pension and half his workplace pension. Fortunately I have other resources and I was always intending to carry on working for another few years part time, I will be okay. But during the planning of this my husband did not factor in him passing away first. (If I had gone first he would have been fine with state and work pension.) So I made my own back up plans and am very glad I did.
My retirement account has gone down by 13.7% in the past year due to rebalancing I did out of fear uncertainty and doubt. What are best alternatives to take in other to secure a financially free retirement and achieve ultimate peace? I don’t want to fail after 42 years of working hard.
If you want to rebuild your retirement by yourself, without the help of a partner, I will tell you it is near impossible. Even NewRetirement and co can’t do the job of an FA with expertise, a large following/client base and experience. Vet and hire one and begin to develop a rapport.
I wholeheartedly concur; I'm 41 years old, and approaching retirement, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with “Rebecca Noblett Roberts” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
I am 44 and currently have €2 million invested in a Vanguard global ETF alongside some individual stocks. I withdraw over 4% per annum (€100k), adjusted for inflation each year. Hopefully this will last forever, but if the market crashes I have 3 years cash available to buy the dips.
Unusually good video! Thanks mate. I think that I'm pretty financially savvy and have worked out a whole range of scenarios (aiming at retiring at 60), but there's no such thing as 'too much information'! Good vids, appreciate it.
I agree with all - but after this year lost so many people in thier 40s gonna enjoy life a bit more than worry too much about the future - obviously if I get older will worry about it than . Enjoy life now tomorrow never guaranteed
My Dad was never cheap, but frugal. He told me to start early. I started investing small amounts a year, in my early 20s. Over the years, the nest egg has grown. I am now 57 and glad I started early. I will retire in the next year or two. I call it active retirement: do things I really want. Work for fun at a golf course, for example.
How much has the compounding grown to over 30+ years? Getting payed off dividends too? Im early 20s so this is very inspiring to see. I've been investing for the last 3 years with about 30% of my salary.
@@nathangreen6286keep it going. I'm 45 and my dad also got me into investing in the late 90s. I can recall my SIPP pension, which I pay into in addition to a workplace defined benefit scheme, was only worth about £2k in 2006...fast forward to now and it's nearly 6 figures. I started off with just £40pm payment into it and gradually upped the payment at least once a year.
@@nathangreen6286, wow! That is truly impressive. When I started investing in my 401 K, I was 23 years old and the amounts I put in yearly were small compared to you! I put around 1200 $ to 2000 $ a year. As I got older, I invested more depending in the years because as you go through life, there are, of course, expenses (buying a house, having kids, playing sports etc.) That being said, I am now 57 and have several hundred thousands $.
Once read a quote " Security is not having More, but needing LESS". I'm 56 and intend to retire (with wife) at 61. I have already worked out the BASIC cost of living for the two of us by then - albeit a retirement that is boring as hell with only leisure coming from TV, reading and music. Then I look at what a 'comfortable' retirement means for us - which I think of as the Leisure / Pleasure side + unforseen expenditure (e.g Car Bills etc) - and I've come to a figure that I KNOW we will have coming in to the household in 2029 and beyond - and that's because we have Rental Properties - we actually have very little in the way of Pensions Pots. If I ask people how much their Basic cost of living is, most have no idea at all. This is the starting point, IMO, - and it's not too difficult to calculate.
Thank you for this brilliant video. I've got crippling Dyscalculia - numbers make almost no sense to me, and as such pensions are a land of total confusion. This video taught me more than any thing I've tried to read or listen to over the last thirty years.
Im 64 and a businessman. My only advice is to have a small home business using fulfillment (selling stuff online), set up before you retire. This could easily generate £1000/month vs. the extra pension pot you would need to generate an extra £1k/month... It depends on how you perceive retirement. Many people get bored and start a new hobby; why not have a hobby business that pays?
I feel lucky to have come across your offices in Penzance today . We are needing to work out our future finance with investments etc Looking forward to our meeting soon to plan our for the future Thanks
I am numerically literate and have a couple of defined benefits pensions. I retired a year early this past February. When I get my state pension, my income will be ROUGHLY 80% of my final salary and because I have modest savings (low £10,000s) and all of that pension income is subject to cost of living rises and suchlike, I really need not worry. My point is that the people who REALLY need to see this and UNDERSTAND it are not in my position. Since retiring, two reasonably close friends have "picked my brains" and what they "know" is mostly total rubbish. All of this, most especially as pensions are now defined contributions, MUST be drummed into kids from secondary school and older.
@@MeaningfulMoney Even the most basic financial provisioning for later life ought to be a seperate subject at pre O level. Certainly down the qualification/salary chain, appreciation and awareness diminishes, and then disappears. How in this sweet world, can anyone live on UK state pension alone??????? A lot of very average, ordinary people are in this position. Many are completley unaware. I was VERY lucky - I am 65 and amongst the last of those where the state and major employers took all of the responsibility - I did not need to know.
I’m retiring in September at 58. The secret is long term planning and I’ve been planning this for a long time. The younger generation need to be educated so they can do the same before it becomes too late
I am in the fortunate position now of having more income than I did when I was working, I was contributing 32% of may salary plus 8% employer contribution into my pension pot. So now its time to take from the pot, we both have full state pensions and I no longer pay NI so tax deductions from my pot only attract income tax, I deliberatly ensure I do not stray into the higher tax bracket. So I like you have always promoted paying into a pension to anyone that asks, best decision of my life. Lets hope I live long enough to spend most of it. I started paying into pension pots at 18 years of age and as we got more comfortable as we got older (kids left etc.) I put more into my pot, it does make a significant difference if you can do this.
@@boyasaka may be so, no one knows but lets enjoy what we have while we can, during the larger pension contributions for the last 12 years done 31 cruises, 10 USA holiday and many european jollies so still enjoyed ourselves whilst saving, live for the present, hope for a future.
Having just spent a considerable sum on an IFA (retirement financial planning), and rarely (if ever) commenting on videos - this is a great video. Very well structured and delivered. I have subscribed.
I’m not sure about that. Pretty much everyone I know ‘could’ save more into pensions but they choose not to by buying other things for ‘today’ and I don’t mean food and things they need to live on. Most people don’t like to think about retirement and that’s the main problem. They’re never prepared for it. I think most people if they added up their monthly costs of all the bills the need to pay and see what’s left over. That’ll make them realise what they’re choosing to spend the excess money on rather than save for retirement.
@@bremensurfing I genuinely disagree. As I saw first hand my father with everything in position for retirement . Seemed to be paying a fortune into pension towards the end (maybe not as much as he complained about 😬🤣) but unfortunately all for nothing ! As he suddenly passed which was so frustrating to see . Shows you can’t take it with you .
@@Rosco1967 sorry to hear what happened to your dad. I’d say you’d have a different opinion though if he lived well in retirement vs others who haven’t saved enough. But also, that’s the one thing you can’t plan for so I still say it’s better so save as much as you can sensibly for retirement even if you don’t get to spend it all. At least you can pass it to your children and make a huge change in their life. But I still think the majority of people can save more than they do. They could at least pay some kind of attention to it and make sure it’s invested properly rather than in the generic safe fund their work puts them in. That’s a free thing they can do with no excuses for.
You mention investing aggressively which I completely agree with if you have a no. of years to go until retirement. For what it’s worth, I have always regarded my state pension as my ‘fixed interest sector’ (very old fashioned line of thought, I know) but which perhaps allows even more scope for a riskier investment strategy. Thank you for the video.
That's if Liebour don't decide to means test it before you start to recieve it because then it'll be your "of no interest whatsoever sector" when they decide to give it to someone "less fortunate" than you. I sincerely hope not, but I wouldn't put anything past them.
I set a target of retiring by 55 when I was 40. I’ve chased pay rises, bonuses and promotions since then. Life does have a habit of getting in the way and I had a few unexpected costs. However, I’m 53 now and still can retire at 55 if I choose. It’s having the choice that empowers you. Personally I am going to do another year and use all the money earned in that final year for some luxury purchases like a sports car and maybe a camper van.
The whole point of wealth for me is freedom. My magic number in my mind is 5 million needed at 65 to not worry about anything. Am i better off investing a good portion of my income into stocks or real estate to achieve this goal?
Varied sources of income is wise and especially living within your means. My net worth is $2M and I can pay my bills with no stress, but I don't live like I have that. I have no complaints.
I would really like to see a video on how to do financial planning for drawdown. Loads of finance RUclips covers 4%, but working out what you can draw in early active years, versus the quieter years and then finally where care costs increase means it’s a massive challenge for anyone wanting to do some DIY planning. IFA fees I have found are around 1% of the portfolio - if the 4% rule is used as a rule of thumb, the IFA costs are 25% of a retired persons income - that’s a lot… So solid DIY financial planning guidance is desperately needed
Great video. I've recently retired and whilst financially I'm doing ok, the finances are far from the most challenging aspect to early retirement. Yes, they are a key component but far from the only one. The transition is tough once you come down from the 'honeymoon period'. The one piece of advice I have is to retire to something. Start a sustainable and fulfilling activity/hobby/past time before you retire to ease yourself into a totally different way of life. Discussing retirement with your partner is also key, what do you both expect. Too many people (and content) focuses too much on the finances and not enough on non financial challenges. That's my take.
As someone approaching early retirement my wife and I have been discussing this a lot. Fortunately we have shared hobbies that we both love - gym, hiking, skiing and cycling. As long as we are fit and well it’s all good. As the fitness fades we will need to find new activities and hobbies.
100% agree on company pensions, by far the best way to save and get your employer to pay into your pension pot too, try and pay as much as you can if possible, it's all before tax too, so in reality, costs less. Whilst I now have 6 pension pots (2 are final salary so leave them alone!), all tracked in a spreadsheet, I'm more focussed on over paying my mortgage which is my priority, after that I may be able to then put some into savings, but, key for me, I may then decide to retire (or reduce my hours at work if possible). The challenge with pensions, is you're told to pay in as soon as you possibly can, the younger the better, the problem is, most youngsters either can't really afford this or don't see it as a priority because it's so far off (being 57, it goes quickly!).
If you haven’t lived while you were young expecting a grand lifestyle in retirement will only be for a few people. You’ll be surprised how little you can live on and have a contented life as long as you do away with grand expectations!
In my opinion another important thing to factor in is the performance of the markets in the first few years of retirement. If you're withdrawing from something like a stocks and shares ISA a few years in the red early on during retirement can really impact your portfolio and how long it will last, even when using the 4% rule.
Iv did a very similar calculation a few years ago we are both retired (2 years ago) now are 57 and 58 we have 25k in DB pensions (2k per month) we also have 130k in a SIPP plus 30k in savings we will both getting the full state pension at 67 With no mortgage we can live on 2k per month we are drawing 1.2 k out of the SIPP to give us 3k per month (this give us “experiences” money) this is well above the 4%rule but the state pension will more than replace the SIPP income We haven’t taken any inheritance into consideration as we have promised our two children any we might receive We decided to have an early retirement plan with slightly less money than work on !!! But the most important thing is to have a PLAN 👍👍👍👍
@@RD-qp3mu I don’t think it will in the next 10 years but I can certainly see some form of means testing in the future One of the reason to retire early is it might not be wise to have too much money in a savings or pensions
Brilliant as always, Pete. Sensitivity of assumed growth and inflation is so important, I’ve just planned mine at 2.5% inflation and 4.5% growth above inflation (100% equities), but I’m not convinced I’m going to be right! I’m 35 years away from state pension age, but it’s a hefty number if I want £78k after tax in today’s money to cover myself and my spouse from age 55. I’ve only recently added this inflation though as it was a fallacy to track progress against “today’s” figures year after year. Your content continues to keep me on track for a comfortable and hopefully early retirement. Thank you for all that you do 👍
What???? £78k after tax?? That's near enough to £100k gross. You would need £3M in today's money to generate such an income at 55 - that is one heck of a pot!
Would be nice for more AT RETIREMENT videos. Fees play a big part in overall "take home" from funds. Would be great to see some good examples of implementation - e.g. x years easy access cash, longer term investments. How to use drawdown effectively. Too many vids out there explaining the options but none really go into how you would implement and manage going forward in retirement. I think it's great to get all this financial education out there to ensure folks understand what they need to do to build up their wealth pre-retirement. Please let's do more at-retirement vids.
@@kw8757 unfortunately yes - for the pension 22.8%, 10.25 from employee, 12.55% from company. Also the better you earn the more pension will get. And there is a max. Limit what you can get. But to maintain a „normal“ lifestyle it works pretty well.
Brilliant video. Very well articulated. The problem is these days people do not want to make sacrifices to increase their saving. People tend to live a high consumption lifestyle, whether it be designer, clothing, or fast, food or restaurants, et cetera and to do it, they use things such as Klarna credit cards and Amazon finance et cetera. My message to all those people is, it is possible. I started with £5000 around eight years ago. I have now mast over a quarter of £1 million and I am 36 years old. At my current rate of investment, and with average returns of 78%, by the time I am 55/60. My portfolio should be well over £1.5 million.
You can could also do equity release from your property, I know a lot of people think this is a scam. But my wife and I do not have children, so don’t have anyone to leave a legacy too
So tragic but sadly oh so true in many people’s lives . I retired at 60 after having worked since the age of sixteen with hopefully enough to get by. A line from a Jam song called Smithers Jones never left my thinking “ Work and work and work and work till you die because their’s plenty more fish in the sea to fry “.
@Calgacus-i9k it's a sad story, let me add to my position that I don't find work particularly inconvenient for the lifestyle it affords me. I've literally never been happier and I'm just not putting a lot of expectations for greater happiness to come from the day I decide to stop logging in.
Your current lifestyle is irrelevant, I’m 65 my lifestyle is very different to when I was 45 (thank goodness!) 20 years ago my priorities were clothes, dinner parties, horses, and holidays but now my priorities are real travel, playing saxophone, and cafe society … 2 decades changed things.
82k views already ..awesome..........glad to see you are giving this part of retirement a revisit Pete........I also look forward to your new book on the subject....
Terrifying! I am 50, have £320k saved in 100% equities, paying in £1,500/month. Want to draw down £135k to pay off mortgage balance in 7 years. Think I'm going to struggle to retire at 60. A great, informative podcast as always though. Thanks Pete!
Put your figures into a compound interest calculator. If your £320k earned 8% in 10 years your pot will be worth £985k if you continue putting £1,500 in a month .
@@HJM49125 not normally, you should make at least 8% a year investing in equities ( I did 40% on £250k last year) you’d be losing out by overpaying your mortgage.
I don't know if this is a joke or not but if it is true, then that's the American dream come true for him. Same here. I am 53 and retired at 50. One 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.
Hi Pete, just wanted to say thank you for your content. The balance you put in your work with the fun but still the responsible part of it still present. I follow you for the UK content and The Money Guy from the USA for all things personal finance as I think you both are the most balanced out there. Also it’s great to hear you and Roger on the pod. Keep up the great work 💪
Many working people who think they are poor , waste lots of money Cars and coffee and buying lunches at work are big wealth killers PCP car £400 a month easy One coffee per day £2 x 5 x 52 = £500 a year Lunch £5 a day x 5 x 52 = £1300 a year I have a old car that’s paid for I make coffee at work and take my lunch to work I work with people who earn same as me They have a £400 a month pcp car Bring in a coffee every morning they picked up on way into work And they nip over to Sainsburys every lunch time for a meal deal So same wage as me But they spend £500 a year on coffee £1300 a year on lunches and £4800 a year on they brand new lease car to impress people why don’t really know £6600 blown And they ask how I appear to always have plenty money and have many holidays abroad 🤣
Really? What struck me when I moved to the UK was how much extra one had to pay for because benefits were less (and apparently tax was too). It's value for tax that matters... @@nickcastings1568
So far I'm doing good, approaching retirement with about 800k in savings. Transitioning from building wealth to spending can be scary, especially with soaring inflation. My question is, after maxing out my tax-advantaged retirement accounts, what next?
in my opinion, some financial situations can be handled on your own if you research enough, while others are best navigated in consultation with a financial advisor
Agreed, the role of advisors an only be overlooked but not denied. I was shocked that I made more money with investing than hard work, not even my CEO income. Earning ''return on investment'' fetched me millions within a space of 5 yrs.(But I still enjoy working)
Thanks for the info. I searched for her full name and found her website right away. I reviewed her credentials and did my research before reaching out to her.
Thank you for a detailed vid Pete Matthew. Even if my portfolio is 1,191,645.03 in 22 years, at the point in time i will need to have 2,283,315.10 due to inflation erosion.
In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.
Prioritizing effective personal finance management holds greater significance than the sheer amount saved, irrespective of income source. Consulting a certified financial advisor can offer tailored strategies to optimize financial results by reducing expenses and enhancing income, regardless of whether it's earned through employment or investments.
Looking at global funds - vanguard and fidelity - i notice huge USA and technology concentration. Do you recommend these funds as your choice of global diversification or ... Would you like to do an episode on this subject? 😃 Good subject. Great video. Well delivered. Thank you
@@jamesdaw131 Hi James. That’s pretty much my goal. In my case that’s 5k in today’s money so will need to factor in inflation to the time of retirement. Probably looking at 60 also.
Been following for years and have used Pete's info as inspiration and guidance. Still producing top quality content and will up my pension payment a further £100 due to the quick maths on the linked calculator 😅
Myself and my partner retired a couple of years ago at the age of 58. We are very fortunate as we have indexed linked pensions of £36k and £30k and savings of around d 650k mostly invested in shares. We both love the freedom retirement brings but we do always appreciate how fortunate we are.
@@mrjohncharlesbrown Hi John, thanks for the reply. We both worked for a multinational oil company who did have a fantastic pension scheme. As I say, we do appreciate how fortunate we are.
I have a friend who is almost my age. I sometimes phone him to find out if he is still alive. I have another friend who is a bit older - he thinks he is having a nervous break down. I have had enough worry during my lifetime. These days I only worry about the lives my step-grand children might have.
I'll be retiring or working less in five years, and I'm curious about how people split their income-how much goes into savings, spending, or investments? I earn around $175K per year but have almost nothing to show for it yet.
That's true. I've been assisted by a financial advisor for almost a year now. I started with less than $200K, and I'm just $19,000 short of half a million in profit.
Sharon Marissa Wolfe is the coach that guides, you probably might've come across her before I found her through a Newsweek report, she's quite known in her field, look-her up.
Totally agree on an aggressive investment strategy BUT it can be a roller coaster. Fantastic when your fund experiences strong growth (you never get tired of counting gains) but literally your stomach churns in a bear market. When will it recover. Over time gains will outstrip market dips. Investment advice is needed with nothing on the extreme risk scale. That’s gambling not investment.
People are facing a tough retirement. and it's even harder for workers to save due to low-paying jobs, inflation, and high rents. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire in.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
I've always delegated my excesses to an advisor, since suffering major portfolio loss early 2020, amid covid outbreak. I'm now semi-retired and only work 7.5 hours a week, with barely 25% short of my $1m retirement goal after subsequent investments to date
Thanks for sharing your experience! I've been managing my portfolio myself, but it's not working out. Do you have any recommendations for a good investment advisor? I could really use some help
Joseph Nick Cahill is his name. He is regarded as a genius in his area and works for Empower Financial Services. He's quite known in his field, look-him up.
Thank you so much for the suggestion! I really needed it. I looked him up on Google and explored his website; he has an impressive background in investments. I've sent him an email, and I hope to hear back from him soon
Retirement isn’t an end goal, but a journey best secured by careful and consistent investments
Retirement is the reward of disciplined investing over the long term, not just a destination.
My adviser guided me through retirement planning, ensuring my investments were strategically positioned for long-term rewards.
Oh, really? I have never thought of that as an option. Can I ask who it is you've been working with? I bet I could use some help myself.
Nicole Anastasia Plumlee can't divulge much. Most likely, the internet should have her basic info, you can research if you like.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
I just turned 44 and awfully late to investing with barely any portfolio except my 401k, I have a decent amount of cash saved up and with inflation currently soaring AGAIN, I’m getting worried about retirement, my intention is to retire at 55. How best do I maximize my savings of over $110k
Retirement is now more difficult than it was in the past. it's all about balancing your risk tolerance with your long-term goals. Maybe consider speaking to an advisor to help in diversifying your portfolio to spread out the risk.
Many people often underestimate the effectiveness of a financial adviser in planning for retirement. Over the past 5 years, my FA has consistently restructured and diversified my portfolio and expenses, resulting in over $1 million in gains. While it might not seem like a huge amount, retirement now feels within reach.
Hello, I'm interested in trying this out. Who is your FA, I'm gasping for breath. Have been doing things myself but it's clearly not working
My FA Judith B Richards a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I just looked up her website on google and I would say she really has an impressive background in investing. I have sent her an email hope she gets back to me soon. Thanks
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Wendy Hubbard Stewart for helping me achieve this
she's mostly on Instagrams, using the user name
@Fxwendy12 ..that's it .
Please tell her that I reffed you 👍
She’ll guide you💯
Boll9cks
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 $120k in a savings account that I want to invest in a non-retirement account. Where would you invest this as of now?
Look up, dividend aristocrats. Pick six to ten from that list. Those companies have a track record of 25+ years of paying dividends. Also, you should work with a financial advisor to help set up a well-structured portfolio.
@@HopesKruses I agree. Based on personal experience working with a financial advisor, I currently have $800k in a well-diversified portfolìo that has experienced exponential growth from when I started. It's not only about having money to invest in stocks, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
@@KarenDuncan-o5s Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.
@@BettinaBischof I'm cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like "MARGARET MOLLI ALVEY" I've worked with her for 4 years and highly recommend her. Check if she meets your criteria.
@@KarenDuncan-o5s I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip.
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?
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
Your videos were great!! I am one of your viewers and have been watching your videos lately. I would like to invest, but I still can't find the right investment to commit to. I will appreciate any help here.
I usually go with registered representative; Zachery M Demers, He provides a more grounded approach, looking at factors like market demand, regulatory changes, and adoption trends. This approach enable to make informed decisions rather than solely relying on emotional market dynamics
HE'S MOSTLY ON TELEGRAMS, USING THE USERNAME...
@Zachfinance
Zachery M Demers has really set the standard for others to follow, we love him here in Canada 🇨🇦 as he has been really helpful and changed lots of life's
Unbelievable scammers who jump on these videos
I plan to retire or reduce my work hours in five years, and I'm interested in how others allocate their income between savings, spending, and investments. I currently earn about $175K annually but haven't built up much in savings so far.
There are numerous strategies to achieve high yields during a financial crisis, but it is crucial to undertake such trades with the guidance and supervision of a professional financial advisor to ensure informed decision-making and risk management.
That's true. I've been assisted by a financial advisor for almost a year now. I started with less than $200K, and I'm just $19,000 short of half a million in profit.
Nicole Anastasia Plumlee is the coach that guides, you probably might've come across her before I found her through a Newsweek report, she's quite known in her field, look-her up.
Scam thread
How is it even possible to earn 175k & not save ? Unbelievable !!
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.
Diversify your holdings across several asset types to reduce risk rather than putting all of your eggs in one basket. If you don't know a lot about finances, speak with a financial expert.
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 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
Sharon Ann Meny is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
My original retirement plan was to retire at 62, work part-time, and save money. However, high prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.
I’m 77 and still working full time. I do enjoy my work, it provides me with purpose and has secured my financial future. Most people are too eager to retire as early as possible. Even if you do retire early, best to get a part time job for the reasons cited above, as well as following many if not all of the suggestions in this video.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
Mind if I ask you to recommend this particular coach you using their service?
Sonya lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you so much! This is exactly what I needed right now. I wrote her an email and am waiting for her reply. Hopefully, she responds soon. I plan to start the year on a strong financial note.
Honestly, this concerns me and has left me uneasy. Especially this potential depression, no more a recession. I'm unsure about my $130K account strategy, considering the uncertainty of this whole recession mostly.
Agreed! this is why I work with one. My $520k portfolio is well-matched for every market season yielding 85% rise from early last year to date. I and my advsor are working on more figures for this year. IMO, financial advisors are the most sought-after professionals after doctors.
Pls who is this coach that guides you? I’m in dire need of one, my stock portfolio is declining rapidly
Her name is ‘Melissa Jean Talingdan’ Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I'm pleased with the advisor's prompt and knowledgeable assistance. Their professionalism instills confidence. Looking forward to further discussions.
It's likely a scammer
I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation
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
No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.
Please can you leave the info of your lnvestment advisor here? I’m in dire need for one
Celia Kathleen Martel is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Lately, l've been reflecting on my retirement plans and questioning whether my 401(k) and IRA will ensure a secure future. Additionally, I've invested $800K in the stock market but I have experienced fluctuations and modest returns. I'm seeking an approach that matches my risk tolerance and aligns with my financial goals.
Using a 401(k) or IRA is a valuable strategy for retirement planning, providing potential savings growth and tax advantages. While the stock market is promising, expert guidance is essential for effective portfolio management.
I just checked him out on google and I have sent him an email. I hope he gets back to me soon.
He sounds like a great guy . I have around 42 million to invest and like to take big risks. How can I give hi m all my money?
How much are going to need when you are 82, pissing in a bag and barely able to walk to the local shops. The only winners are financial advisors.😂
I’m 55 from South-Yorkshire but worked overseas all my life. I have savings of €1 million and I'm ready for retirement, only concerned about the soaring inflation. Is this enough to retire happily or do I need some sort of money management?
Glad to hear from another buckeye! comfortable retirement depends on your lifestyle...
Generally speaking, a good number of people discredit the effectiveness of a certified fiduciary in planning for retirement, For over the past 10years, I’ve had a CFA consistently restructure and diversify my portfolio/expenses and I’ve made over 3m in gains.Might not be a lot but retirement doesn’t seem so farfetched anymore.
I've stuck with the popularly ‘’Jennifer Leigh Hickman” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
@@Olea-i2d Hi, a shared experience, invested funds into a SIPP and was waking up to 8k growth, 15k growth and one time 27k over night. We are getting 10% approx at the moment but keep to 20% tax rate level for income withdrawals, partner keeps to 0% tax rate.
Our FA has set up a cascade system that keeps us 5 years away from investment fluctuations and inflation worries.
Hope this helps.
Stop ✋️
Excellent video - a bit late for me, as I retired 8 years ago, but I would also add another recommendation: if at all possible, phase your retirement. By this I mean cut down your working days in the years up to full retirement. For many, it might not be possible, of course, but if it is, go for it. The shock from full time to no time working can be massive.
Just came to leave a comment to say a huge thank you to you! Because of your content I've gone from having 0 in savings and retirement to working out a budget and lifestyle adjustments to enable me to maximise pension contributions, set aside money for emergency savings and contribute to a S&S LISA regularly (even if it's not huge amounts right now). Even managed to get a few bob put away by putting the budget into action. All within a few months. Without info like yours I'd still be frittering away all my cash without thinking about my future (or rainy days) at all. Thank you so much!
Amazing! Well done for taking radical action! I’m delighted the content has been useful - more power to you, keep going! 👍🏻👊🏻👏🏻
Caution on LISA for retirement…..see my warning. It’s considered as readily accessible savings if you need unemployment benefit etc.
@@ianjames3078 thank you for the tip - this is a really good thing to know and be aware of. I'm still really new to fiscal responsibility and development, so this is one of those things I would never have considered. Thank you for sharing your experience!
I have 2 work pensions I retired at 54 years old 7 years ago best thing I ever did
I’m worried about retirement planning and I want to ensure a comfortable future. I’ve worked hard my entire life and I want to enjoy the fruits of my labor without financial stress. I’m really concerned about whether I’ve saved enough and invested wisely.
I completely understand. Ensuring financial security in retirement is crucial. Have you considered consulting a financial advisor?
Yes I have. But I don’t know who exactly to trust to provide the right advices and guidance for me.
True. I have been in contact with a CFA that specializes in retirement planning. His expertise can help optimize your savings and investments.
Who’s this CFA? And how can I reach out to him?
ERIC PAUL ELMER
I've been thinking about retiring recently. Additionally, I placed $800K in the S&P 500 to safeguard my financial future. I need to find a strategy for investing in companies that will match my risk tolerance and financial objectives, such as Nvidia and, of course, AI stocks, but it seems like the market is now gloomy.
While the market is promising, expert guidance is essential for effective portfolio management.
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 $255k to $750k.
I've been looking to get one, but have been kind of relaxed about it. Could you recommend your advisor? I'll be happy to use some help.
Her name is ‘Dianne Sarah Olson’ Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
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 reaching her.
Love this one Pete. The only thing I’d add is the thing I bang on to my daughters about all the time; the earlier you start the easier it will be. (That and “a man is not a financial plan” 😜)
But a good man is a good financial plan. It's an option women have.
@@wizzyno1566 I’d rather my daughters be financially independent of anyone (especially me 🤞)
Love it!
@@wizzyno1566A good man may be hard to find. Let’s work on the assumption that they are liabilities in general. 😊
@@wizzyno1566 That's equivalent to having a man say, "a good woman is a good financial plan. It's an option men have." Not exactly a very good option for either category.
Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
End of the middle classes, millions of children living in poverty in UK and USA and Australia. We're all circling the drain.
I love Nicole. She's great. No really, she's the best. Just ask my mate Dave. He's met her and says she can breath through her nose, all sophisticated like!
yet another Scam thread
Is really important to acquire as much money as you can before retirement, that's why I make it a priority to invest. Right now my portfolio has good companies, however it has been stalling this year. I’ve approximately $700k stagnant in my reserve that needs growth, any suggestions to grow my portfolio will be highly appreciated.
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. that's why seeking expert advice is essential.
Very true , I diversified my $400K portfolio across multiple market with the aid of an investment advisor, I have been able to generate over $900k in net profit across high dividend yield stocks, ETF and bonds in few months.
Please can you leave the info of your investment advisor here? I’m in dire need for one.
‘’Jenienne Miniter Fagan’’ 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
Thank you for this amazing tip. I just looked up Jenienne, wrote her explaining my financial market goals and scheduled a call
Great video as usual. 41 and on track for a 55 retirement. I’ve taught my kids what compound interest is and they are 12 & 8! 😂
Compound Interest - 8th wonder of the world!
You will not be able to draw a pension at 55?
I'm turning 49 this month and only got wise late last year. The eternal question of "how much is enough to save?" Has almost driven me mad. I'm putting in 30.5% of my earnings and I'm really surprised that I can still live and stuff. It's hard but I've recalibrated. No way I'm working until 67 (barring significant life events, terms and conditions apply). Thank you for helping me feel I'm neither alone nor off track
If you're putting away 30..5% of your earnings you definitely are not "off track". 👍
@@kw8757I'd be careful where I put my money. If you're into pension funds and stocks you could be hit really hard prior to retirement and not have time to recover. Don't take advice from RUclips or Internet "gurus". We are now in a very fluid political climate so be very careful how you manage or diversify your resources...
@@kw8757 Exactly.
Good move, that will repay you handsomely.
I maxed out on annual and lifetime allowances particually in the last few years of work putting 50% of earnings into AVCs. It did mean skimping a bit but that ive never been extravagant. That enabled me to retirire at 56 on a better income than my previous take home. You do need to over budget as pensions dont keep pace with inflation and the cost of living has gone up perhaps 30% in the last 4 years.
I have an Investment portfolio that's worth $1million, I don't think that'll be enough for retirement. I need an average risk investment strategy in stocks that'll give me more yield.
As they say, time IN the market is better than trying to time the market. I think you should seek advice from a licensed financial advisor. They’ll give you guide on high risk and low risk investment strategies for your portfolio.
Now in my 70's, I retired at 65. I worked from the age of 15 to the age of 65, sometimes working up to 70 hours per week. Throughout my working life there was enough to pay all my bills etc though certainly nothing left for savings. I now live on my basic state pension, it's enough to cover all my expenses. Why are people spending their working life worrying about pensions?
I was always taught to 'cut the clothe to suit'.
just the fact that you admit there are "assumptions" (educated guesses) that go into planning you are ahead of the rest of the planner pack. Great job.
Thank you!
I am in my early 60s and retired at 53. Lots of people gave me pushback because they had difficulty grasping the concept of not working if you don’t have to. I looked at my life as stages. I earned everything I have now through a lot of hard work, but I owe it to myself to “stop and smell the roses” in my final stage of life. In my case I left the country after I retired and live in Latin America. It allowed me to get away from all the negative things happening in America while appreciating my new environment. I have yet to meet anyone who regrets retirement.
Nice way to retire. For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $750k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
I definitely share your sentiment about these firms. Finding financial advisors like *Marisa Michelle Litwinsky* who can assist you on things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Marisa has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.
I’m retired but use a couple of side hustles to supplement my pension. Not a massive amount but it helps. So it’s not all about how much you can save ( although this is essential) it’s what skills or possessions you have that you can use in later life to provide income. I’ve been a collector all my life. My children are not interested in my things and now I enjoy selling them on various platforms in the knowledge that they are going to people that want them.
Somebody once said, You can never save enough for retirement but that doesn't mean you shouldn't try anyway. Take your health seriously now to reduce the financial burden of failing/ill health and ACTIVELY plan your retirement so you can still make money even then. Goodluck to us all.
That's very true. Besides IRA and 401k, are there other ways we can prepare ahead of time for our retirement?
Mine draws nearer by the day and I'm gradually going into panic mode
No need to panic... The simplest way is to save more and invest those savings in profitable ventures (you must either understand what you're going into or get the services of a professional so you don't end up losing your savings)… I have made a couple of thousands yearly for the past 3 years through only stocks and Etfs and if I can keep at it, I won't have much to fear even with less than 6 years to my retirement...
By professional, do you mean an FA? Did you use one? What are the steps for getting one? Like a really good one?
I could definitely use external help right now. Thanks
Yeah I did. I think you should start by looking out for those from reputable firms and good track records. You should also make sure the person is licensed. Personally, I use Marie Kelly Matwick. She's good and you could also check her out.
not true. my dad saved up a lot for retirement man
i always find these videos helpful when they tell me i should save monthly more money than i can earn.
Thankfully my children aren't in the same position due to their hard work and my banging on about starting a pension as soon as you can.
I’m planning on retiring at 55. I’m the last month eligible to. I have a 35 years in a Final Salary DB scheme and we have now this financial year gone over to a CARE DB scheme. I pay into AVC’s, stocks & shares ISA and Premium Bonds. I make sacrifices to unable me to retire early but i still have a nice life. The reason I want to retire early is because I no longer enjoy my job and you spend a long time dead!
My father worked tirelessly to build a decent pension, lived well too . But my point was it turned out totally fruitless as he died a couple of years after retiring..
Lucky you to get a final salary pension! Good choice of job all them years ago enjoy it 👍
I retired last year aged 55…100% recommend it! Life’s too short if you don’t enjoy your job and you can afford it. I worked hard and saved hard and enjoy simple things (fortunately!).
So did I and no regrets.
The concept of retiring at 67 (let’s be honest it will be 70 by the time a lot of us in our 20’s and 30’s retire) is absolutely crushing. There is no way this is happening to me, I refuse to let the government tell me when I can stop working. 55 is my target.
Unfortunately the gvt is also controlling this by increasing the age you can access private pensions to 57 from Apr 2026. Retiring at 55 isn’t possible unless you have other forms of income besides your pension to depend on.
@@sushilvekaria164That’s exactly what I’m talking about, having enough assets in places other than a workplace pension or SIPP to bridge the 5 year gap. Although, the government is probably going to have to make withdrawing any money between 50 and 60 punishing in terms of tax to keep high earners in employment longer to pay for the aging populations state pension. I don’t think there’s any getting away from it ultimately.
@AName-pp8di this is why you need other revenue generating assets that can be drawn upon as savings rather than 'retirement'
From 2028 the minimum age you can withdraw from a Private pension raises from age 55 to 57.
I am 67 and just retired at 108k a year...I am holding out for a fat social security at $3,700. at 70.
I am 55 years old and currently putting a considerable amount of my salary into my pension but I am also saving about £400-£600 per month into my ISA. My question is, is it better to put that ISA money into my pension as I then get all the tax relief on it and therefore there is more money in the pension pot to try and gain from the investment fund growth? This question has baffled me for a while. Please help 😕
Get a financial advisor man! Been with Becky Lou Gordon for over 9 years now. I have been able to retire at 59 and have over $1m in savings
I am in my early 60s and retired at 53. Lots of people gave me pushback because they had difficulty grasping the concept of not working if you don’t have to. I looked at my life as stages. I earned everything I have now through a lot of hard work, but I owe it to myself to “stop and smell the roses” in my final stage of life. In my case I left the country after I retired and live in Latin America. It allowed me to get away from all the negative things happening in America while appreciating my new environment. I have yet to meet anyone who regrets retirement. I still give kudos to my Financial advisor
I would ask what easily accessible savings you already have and when you are likely to need to use them. Dreading my next MOT I spent £14000 cash on a car last year. Of course even doing that someone might be able to show that it would have been better to put the money into a pension and buy the car on finance.
@@MrDunclOr just buy an older much cheaper car. Simples.
@@daveaglasgow That is exactly what I traded in with various warning lights on. After looking around I ended up buying the same model car as I had but with 100000 less miles and a long manufacturer's approved used warranty. Anyway the car cost half what will be paid into my pension this year.
Meanwhile a colleague spent £18000 on a new plaything motorbike then retired the next year while another colleague spent £56000 on a brand new Plug in Hybrid months before he retired !
Your tips are super practical and make it feel less overwhelming. Thanks for breaking it down in such an easy-to-understand way!
In my humble opinion: ENOUGH means a roof over your head and 2 meals a day! ❤
That’s existing rather than living. If I’ve worked all my life I want to enjoy a couple of holidays each year, days/meals out etc.
Absolutely - but I need to be able to afford to buy birthday presents for my 2 kids, and to feed, look after and insure my dogs.
Brilliant video as always Pete - I really like your bullish comments about investing aggressively - Many of the default pension funds and ISA’s underperform, so I took control and invested in low cost Vangard funds instead, 2/3 in US equities and 1/3 Worldwide. It was the best thing I ever did.
Now that is an excellent video. Sound, considered and well presented advice. Thank you.
I like the video. I’m only a couple of years from target retirement. I’m not sure about the 4% rule, and starting it from 67. Also but harder to model is that you’re likely to need more early in retirement than later on. I think the hardest bit is figuring out what income you will need!
Do not rely on having your spouse's pension contributing to the household figure though! I'm two months off retirement age and my husband and I were looking forwards to being relatively comfortable, what with two state pensions and his decent workplace pension. Then he passed away and I'll be down to one state pension and half his workplace pension. Fortunately I have other resources and I was always intending to carry on working for another few years part time, I will be okay. But during the planning of this my husband did not factor in him passing away first. (If I had gone first he would have been fine with state and work pension.) So I made my own back up plans and am very glad I did.
So sorry for your loss. Every best wish for the future ❤
My retirement account has gone down by 13.7% in the past year due to rebalancing I did out of fear uncertainty and doubt. What are best alternatives to take in other to secure a financially free retirement and achieve ultimate peace? I don’t want to fail after 42 years of working hard.
If you want to rebuild your retirement by yourself, without the help of a partner, I will tell you it is near impossible. Even NewRetirement and co can’t do the job of an FA with expertise, a large following/client base and experience. Vet and hire one and begin to develop a rapport.
I wholeheartedly concur; I'm 41 years old, and approaching retirement, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
How can one get to interview advisors? And what questions should you ask?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with “Rebecca Noblett Roberts” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
One person’s comfortable is not another’s. If you’re comfortable with the amount you retire with then you have enough to retire comfortably
Thanks Pete. I think taking a personal interest in tax/finance has made it all a lot less worrying for me. The unknown can be a major fear for many
I am 44 and currently have €2 million invested in a Vanguard global ETF alongside some individual stocks. I withdraw over 4% per annum (€100k), adjusted for inflation each year. Hopefully this will last forever, but if the market crashes I have 3 years cash available to buy the dips.
Put it into gold
Unusually good video! Thanks mate. I think that I'm pretty financially savvy and have worked out a whole range of scenarios (aiming at retiring at 60), but there's no such thing as 'too much information'! Good vids, appreciate it.
Thanks Pete. I’m going to increase my monthly pension contributions tonight and review in October and again in the New Year.
Yes Adam! Nice work!
I agree with all - but after this year lost so many people in thier 40s gonna enjoy life a bit more than worry too much about the future - obviously if I get older will worry about it than . Enjoy life now tomorrow never guaranteed
My Dad was never cheap, but frugal. He told me to start early. I started investing small amounts a year, in my early 20s. Over the years, the nest egg has grown. I am now 57 and glad I started early. I will retire in the next year or two. I call it active retirement: do things I really want. Work for fun at a golf course, for example.
Love this. Starting early is important.
How much has the compounding grown to over 30+ years? Getting payed off dividends too? Im early 20s so this is very inspiring to see. I've been investing for the last 3 years with about 30% of my salary.
@@nathangreen6286keep it going. I'm 45 and my dad also got me into investing in the late 90s. I can recall my SIPP pension, which I pay into in addition to a workplace defined benefit scheme, was only worth about £2k in 2006...fast forward to now and it's nearly 6 figures. I started off with just £40pm payment into it and gradually upped the payment at least once a year.
@@nathangreen6286, wow! That is truly impressive. When I started investing in my 401 K, I was 23 years old and the amounts I put in yearly were small compared to you! I put around 1200 $ to 2000 $ a year. As I got older, I invested more depending in the years because as you go through life, there are, of course, expenses (buying a house, having kids, playing sports etc.)
That being said, I am now 57 and have several hundred thousands $.
Once read a quote " Security is not having More, but needing LESS". I'm 56 and intend to retire (with wife) at 61. I have already worked out the BASIC cost of living for the two of us by then - albeit a retirement that is boring as hell with only leisure coming from TV, reading and music. Then I look at what a 'comfortable' retirement means for us - which I think of as the Leisure / Pleasure side + unforseen expenditure (e.g Car Bills etc) - and I've come to a figure that I KNOW we will have coming in to the household in 2029 and beyond - and that's because we have Rental Properties - we actually have very little in the way of Pensions Pots. If I ask people how much their Basic cost of living is, most have no idea at all. This is the starting point, IMO, - and it's not too difficult to calculate.
There was one word that sums up the approach - "uncomfortable" if you don't push yourself you will never have enough
Thank you for this brilliant video. I've got crippling Dyscalculia - numbers make almost no sense to me, and as such pensions are a land of total confusion. This video taught me more than any thing I've tried to read or listen to over the last thirty years.
Im 64 and a businessman. My only advice is to have a small home business using fulfillment (selling stuff online), set up before you retire. This could easily generate £1000/month vs. the extra pension pot you would need to generate an extra £1k/month... It depends on how you perceive retirement. Many people get bored and start a new hobby; why not have a hobby business that pays?
I feel lucky to have come across your offices in Penzance today . We are needing to work out our future finance with investments etc
Looking forward to our meeting soon to plan our for the future
Thanks
I am numerically literate and have a couple of defined benefits pensions.
I retired a year early this past February. When I get my state pension, my income will be ROUGHLY 80% of my final salary and because I have modest savings (low £10,000s) and all of that pension income is subject to cost of living rises and suchlike, I really need not worry.
My point is that the people who REALLY need to see this and UNDERSTAND it are not in my position.
Since retiring, two reasonably close friends have "picked my brains" and what they "know" is mostly total rubbish.
All of this, most especially as pensions are now defined contributions, MUST be drummed into kids from secondary school and older.
I quite agree
@@MeaningfulMoney Even the most basic financial provisioning for later life ought to be a seperate subject at pre O level. Certainly down the qualification/salary chain, appreciation and awareness diminishes, and then disappears.
How in this sweet world, can anyone live on UK state pension alone???????
A lot of very average, ordinary people are in this position. Many are completley unaware.
I was VERY lucky - I am 65 and amongst the last of those where the state and major employers took all of the responsibility - I did not need to know.
I’m retiring in September at 58. The secret is long term planning and I’ve been planning this for a long time. The younger generation need to be educated so they can do the same before it becomes too late
I am in the fortunate position now of having more income than I did when I was working, I was contributing 32% of may salary plus 8% employer contribution into my pension pot. So now its time to take from the pot, we both have full state pensions and I no longer pay NI so tax deductions from my pot only attract income tax, I deliberatly ensure I do not stray into the higher tax bracket. So I like you have always promoted paying into a pension to anyone that asks, best decision of my life. Lets hope I live long enough to spend most of it. I started paying into pension pots at 18 years of age and as we got more comfortable as we got older (kids left etc.) I put more into my pot, it does make a significant difference if you can do this.
Unfortunately I bet you pass away with far to much money left
@@boyasaka may be so, no one knows but lets enjoy what we have while we can, during the larger pension contributions for the last 12 years done 31 cruises, 10 USA holiday and many european jollies so still enjoyed ourselves whilst saving, live for the present, hope for a future.
Average age is around 80 years old, you'd want to plan for 90 at least. Don't want to spend your last years scrimping
You've done extremely well but most people cannot afford to put such a huge portion of their salary into their retirement fund.
@@weeeeehhhhh In your last years money will be the last of your worries, trust me.
Having just spent a considerable sum on an IFA (retirement financial planning), and rarely (if ever) commenting on videos - this is a great video. Very well structured and delivered. I have subscribed.
You forget , 80 % of the population don’t live comfortably while they are working . Never mind having enough to put aside for retirement.
The videos about retirement not about cost of living
That's a very good point.
I’m not sure about that. Pretty much everyone I know ‘could’ save more into pensions but they choose not to by buying other things for ‘today’ and I don’t mean food and things they need to live on.
Most people don’t like to think about retirement and that’s the main problem. They’re never prepared for it.
I think most people if they added up their monthly costs of all the bills the need to pay and see what’s left over. That’ll make them realise what they’re choosing to spend the excess money on rather than save for retirement.
@@bremensurfing I genuinely disagree. As I saw first hand my father with everything in position for retirement . Seemed to be paying a fortune into pension towards the end (maybe not as much as he complained about 😬🤣) but unfortunately all for nothing ! As he suddenly passed which was so frustrating to see .
Shows you can’t take it with you .
@@Rosco1967 sorry to hear what happened to your dad.
I’d say you’d have a different opinion though if he lived well in retirement vs others who haven’t saved enough.
But also, that’s the one thing you can’t plan for so I still say it’s better so save as much as you can sensibly for retirement even if you don’t get to spend it all.
At least you can pass it to your children and make a huge change in their life.
But I still think the majority of people can save more than they do.
They could at least pay some kind of attention to it and make sure it’s invested properly rather than in the generic safe fund their work puts them in. That’s a free thing they can do with no excuses for.
If I dont have enough to live a certain lifestyle, then you will have to face reality and adjust the dream
You mention investing aggressively which I completely agree with if you have a no. of years to go until retirement. For what it’s worth, I have always regarded my state pension as my ‘fixed interest sector’ (very old fashioned line of thought, I know) but which perhaps allows even more scope for a riskier investment strategy.
Thank you for the video.
I think that’s a great line to take, actually
That's if Liebour don't decide to means test it before you start to recieve it because then it'll be your "of no interest whatsoever sector" when they decide to give it to someone "less fortunate" than you. I sincerely hope not, but I wouldn't put anything past them.
I set a target of retiring by 55 when I was 40. I’ve chased pay rises, bonuses and promotions since then. Life does have a habit of getting in the way and I had a few unexpected costs. However, I’m 53 now and still can retire at 55 if I choose. It’s having the choice that empowers you. Personally I am going to do another year and use all the money earned in that final year for some luxury purchases like a sports car and maybe a camper van.
The whole point of wealth for me is freedom. My magic number in my mind is 5 million needed at 65 to not worry about anything. Am i better off investing a good portion of my income into stocks or real estate to achieve this goal?
Varied sources of income is wise and especially living within your means. My net worth is $2M and I can pay my bills with no stress, but I don't live like I have that. I have no complaints.
Good old 4% rule. Thank you for sharing. Hopefully, some newbies can benefit from your well presented video.
Thanks Pete. Practical and helpful as always.
I would really like to see a video on how to do financial planning for drawdown. Loads of finance RUclips covers 4%, but working out what you can draw in early active years, versus the quieter years and then finally where care costs increase means it’s a massive challenge for anyone wanting to do some DIY planning. IFA fees I have found are around 1% of the portfolio - if the 4% rule is used as a rule of thumb, the IFA costs are 25% of a retired persons income - that’s a lot… So solid DIY financial planning guidance is desperately needed
You should look at Pete's video on building a cash flow ladder. Also Vanguard Dynamic Spending Model. FI calc is also a useful free app
Great video. I've recently retired and whilst financially I'm doing ok, the finances are far from the most challenging aspect to early retirement. Yes, they are a key component but far from the only one. The transition is tough once you come down from the 'honeymoon period'. The one piece of advice I have is to retire to something. Start a sustainable and fulfilling activity/hobby/past time before you retire to ease yourself into a totally different way of life. Discussing retirement with your partner is also key, what do you both expect. Too many people (and content) focuses too much on the finances and not enough on non financial challenges. That's my take.
As someone approaching early retirement my wife and I have been discussing this a lot. Fortunately we have shared hobbies that we both love - gym, hiking, skiing and cycling. As long as we are fit and well it’s all good. As the fitness fades we will need to find new activities and hobbies.
100% agree on company pensions, by far the best way to save and get your employer to pay into your pension pot too, try and pay as much as you can if possible, it's all before tax too, so in reality, costs less.
Whilst I now have 6 pension pots (2 are final salary so leave them alone!), all tracked in a spreadsheet, I'm more focussed on over paying my mortgage which is my priority, after that I may be able to then put some into savings, but, key for me, I may then decide to retire (or reduce my hours at work if possible).
The challenge with pensions, is you're told to pay in as soon as you possibly can, the younger the better, the problem is, most youngsters either can't really afford this or don't see it as a priority because it's so far off (being 57, it goes quickly!).
If you haven’t lived while you were young expecting a grand lifestyle in retirement will only be for a few people.
You’ll be surprised how little you can live on and have a contented life as long as you do away with grand expectations!
In my opinion another important thing to factor in is the performance of the markets in the first few years of retirement. If you're withdrawing from something like a stocks and shares ISA a few years in the red early on during retirement can really impact your portfolio and how long it will last, even when using the 4% rule.
Iv did a very similar calculation a few years ago we are both retired (2 years ago) now are 57 and 58 we have 25k in DB pensions (2k per month) we also have 130k in a SIPP plus 30k in savings we will both getting the full state pension at 67 With no mortgage we can live on 2k per month we are drawing 1.2 k out of the SIPP to give us 3k per month (this give us “experiences” money) this is well above the 4%rule but the state pension will more than replace the SIPP income We haven’t taken any inheritance into consideration as we have promised our two children any we might receive We decided to have an early retirement plan with slightly less money than work on !!! But the most important thing is to have a PLAN 👍👍👍👍
Dont assume a state pension is an entitlement. Its a benefit and the goalposts can and will be moved.
@@RD-qp3mu I don’t think it will in the next 10 years but I can certainly see some form of means testing in the future One of the reason to retire early is it might not be wise to have too much money in a savings or pensions
Brilliant as always, Pete. Sensitivity of assumed growth and inflation is so important, I’ve just planned mine at 2.5% inflation and 4.5% growth above inflation (100% equities), but I’m not convinced I’m going to be right! I’m 35 years away from state pension age, but it’s a hefty number if I want £78k after tax in today’s money to cover myself and my spouse from age 55. I’ve only recently added this inflation though as it was a fallacy to track progress against “today’s” figures year after year. Your content continues to keep me on track for a comfortable and hopefully early retirement. Thank you for all that you do 👍
What???? £78k after tax?? That's near enough to £100k gross. You would need £3M in today's money to generate such an income at 55 - that is one heck of a pot!
I’m a civil servant, on track for about 30k a year plus a nice lump sum. There is no final salary so it’s 30k a year until I die.
Pete - your videos and podcasts are great. I really appreciate your guidance.
Good content kept simple. Thanks Pete 👌🏻
Would be nice for more AT RETIREMENT videos. Fees play a big part in overall "take home" from funds. Would be great to see some good examples of implementation - e.g. x years easy access cash, longer term investments. How to use drawdown effectively. Too many vids out there explaining the options but none really go into how you would implement and manage going forward in retirement. I think it's great to get all this financial education out there to ensure folks understand what they need to do to build up their wealth pre-retirement. Please let's do more at-retirement vids.
Plenty of that on the channel, Brian, including how to invest in retirement
I am happy to life in Austria - will get a good State pension @ 65
Does Austria have a high level of taxation to pay a good state pension?
The UK has never had a good state pension - lucky you.
@@kw8757 unfortunately yes - for the pension 22.8%, 10.25 from employee, 12.55% from company. Also the better you earn the more pension will get. And there is a max. Limit what you can get. But to maintain a „normal“ lifestyle it works pretty well.
Brilliant video.
Very well articulated.
The problem is these days people do not want to make sacrifices to increase their saving.
People tend to live a high consumption lifestyle, whether it be designer, clothing, or fast, food or restaurants, et cetera and to do it, they use things such as Klarna credit cards and Amazon finance et cetera.
My message to all those people is, it is possible.
I started with £5000 around eight years ago.
I have now mast over a quarter of £1 million and I am 36 years old.
At my current rate of investment, and with average returns of 78%, by the time I am 55/60. My portfolio should be well over £1.5 million.
The paragraph may seem like it was written by an idiot, but I am using Siri to dictate my message whilst driving 🤣
🤣
That's some return. Was it crypto?!
You can could also do equity release from your property, I know a lot of people think this is a scam. But my wife and I do not have children, so don’t have anyone to leave a legacy too
In the right circumstances, Equity Release is absolutely the right thing…
@@MeaningfulMoney Pete, maybe you could do a video explaining Equity Release and when it might work for some people.
Better to downsize than use some equity release scheme....
@@HJM49125 I don’t wont to down size I like where I live thanks.
@@HJM49125 I don’t wont to down size I like where I live. Thanks.
I’m semi retired at 47,best move ever.👍🏻
I wont be stopping untill i have enough to maintain my current lifestyle. Id rather work and continue to enjoy life
Well, time waits for no Man (or Women)
So tragic but sadly oh so true in many people’s lives . I retired at 60 after having worked since the age of sixteen with hopefully enough to get by. A line from a Jam song called Smithers Jones never left my thinking “ Work and work and work and work till you die because their’s plenty more fish in the sea to fry “.
@@MichaelLedwith-xs2uj appropriately preceded by :
It's time to relax
Now you've worked your arse off
But the only one smiling
Is the sun-tanned boss
@Calgacus-i9k it's a sad story, let me add to my position that I don't find work particularly inconvenient for the lifestyle it affords me. I've literally never been happier and I'm just not putting a lot of expectations for greater happiness to come from the day I decide to stop logging in.
Your current lifestyle is irrelevant, I’m 65 my lifestyle is very different to when I was 45 (thank goodness!) 20 years ago my priorities were clothes, dinner parties, horses, and holidays but now my priorities are real travel, playing saxophone, and cafe society … 2 decades changed things.
"Invest aggressively" is the correct answer! And do not forget to use leverage. Do not rely on your pension and only save if you want to remain poor!
Always quality content
Thank you!
82k views already ..awesome..........glad to see you are giving this part of retirement a revisit Pete........I also look forward to your new book on the subject....
Cheers Will, you legend!
Terrifying!
I am 50, have £320k saved in 100% equities, paying in £1,500/month.
Want to draw down £135k to pay off mortgage balance in 7 years.
Think I'm going to struggle to retire at 60.
A great, informative podcast as always though. Thanks Pete!
Stick at it....good luck
Depending on your mortgage rate, overpayment might be a better option. But requires some number crunching.
Put your figures into a compound interest calculator. If your £320k earned 8% in 10 years your pot will be worth £985k if you continue putting £1,500 in a month .
@@HJM49125 not normally, you should make at least 8% a year investing in equities ( I did 40% on £250k last year) you’d be losing out by overpaying your mortgage.
Bravo mate!
I don't know if this is a joke or not but if it is true, then that's the American dream come true for him. Same here. I am 53 and retired at 50. One 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.
Hi Pete, just wanted to say thank you for your content. The balance you put in your work with the fun but still the responsible part of it still present. I follow you for the UK content and The Money Guy from the USA for all things personal finance as I think you both are the most balanced out there. Also it’s great to hear you and Roger on the pod. Keep up the great work 💪
Heyyyyy - thank you for this! Really glad the content is helpful for you: your kind words are much appreciated. 👍🏻🙏🏻👊🏻
My son summed it up perfectly when he said " we are no longer the working class - we are the working poor"
Many working people who think they are poor , waste lots of money
Cars and coffee and buying lunches at work are big wealth killers
PCP car £400 a month easy
One coffee per day £2 x 5 x 52
= £500 a year
Lunch £5 a day x 5 x 52 = £1300 a year
I have a old car that’s paid for
I make coffee at work and take my lunch to work
I work with people who earn same as me
They have a £400 a month pcp car
Bring in a coffee every morning they picked up on way into work
And they nip over to Sainsburys every lunch time for a meal deal
So same wage as me
But they spend £500 a year on coffee £1300 a year on lunches and £4800 a year on they brand new lease car to impress people why don’t really know
£6600 blown
And they ask how I appear to always have plenty money and have many holidays abroad 🤣
Poor is a mentality that very few recover from.
And with Labour now in power, we will be the working even poorer!
@@boyasakabut rent and house prices about 10 times wages.
A few coffees isn't going to detract from the sobering reality
Really? What struck me when I moved to the UK was how much extra one had to pay for because benefits were less (and apparently tax was too). It's value for tax that matters... @@nickcastings1568
Love your channel, but this was an especially great video. Look forward to the rest of the series.
So far I'm doing good, approaching retirement with about 800k in savings. Transitioning from building wealth to spending can be scary, especially with soaring inflation. My question is, after maxing out my tax-advantaged retirement accounts, what next?
in my opinion, some financial situations can be handled on your own if you research enough, while others are best navigated in consultation with a financial advisor
Agreed, the role of advisors an only be overlooked but not denied. I was shocked that I made more money with investing than hard work, not even my CEO income. Earning ''return on investment'' fetched me millions within a space of 5 yrs.(But I still enjoy working)
That's incredible. Could you recommend who you work with? I really could use some help at this moment
Monica Shawn Marti is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thanks for the info. I searched for her full name and found her website right away. I reviewed her credentials and did my research before reaching out to her.
Thank you for a detailed vid Pete Matthew.
Even if my portfolio is 1,191,645.03 in 22 years, at the point in time i will need to have 2,283,315.10 due to inflation erosion.
In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.
Prioritizing effective personal finance management holds greater significance than the sheer amount saved, irrespective of income source. Consulting a certified financial advisor can offer tailored strategies to optimize financial results by reducing expenses and enhancing income, regardless of whether it's earned through employment or investments.
Looking at global funds - vanguard and fidelity - i notice huge USA and technology concentration. Do you recommend these funds as your choice of global diversification or ... Would you like to do an episode on this subject? 😃 Good subject. Great video. Well delivered. Thank you
Aiming for £5k a month post tax for both my wife and I from 60. Ideally 55 but not convinced that will happen.
@@jamesdaw131 Hi James. That’s pretty much my goal. In my case that’s 5k in today’s money so will need to factor in inflation to the time of retirement. Probably looking at 60 also.
Been following for years and have used Pete's info as inspiration and guidance. Still producing top quality content and will up my pension payment a further £100 due to the quick maths on the linked calculator 😅
Myself and my partner retired a couple of years ago at the age of 58. We are very fortunate as we have indexed linked pensions of £36k and £30k and savings of around d 650k mostly invested in shares. We both love the freedom retirement brings but we do always appreciate how fortunate we are.
You're lucky I expect they are public sector pensions, the country is going broke
@@mrjohncharlesbrown Hi John, thanks for the reply. We both worked for a multinational oil company who did have a fantastic pension scheme. As I say, we do appreciate how fortunate we are.
I have a friend who is almost my age. I sometimes phone him to find out if he is still alive. I have another friend who is a bit older - he thinks he is having a nervous break down. I have had enough worry during my lifetime. These days I only worry about the lives my step-grand children might have.
I'll be retiring or working less in five years, and I'm curious about how people split their income-how much goes into savings, spending, or investments? I earn around $175K per year but have almost nothing to show for it yet.
There are many ways to achieve high yields during a crisis, but such trades are best done under the supervision of a financial advisor.
That's true. I've been assisted by a financial advisor for almost a year now. I started with less than $200K, and I'm just $19,000 short of half a million in profit.
That's quite impressive! Can you share more information about your financial advisor?
Sharon Marissa Wolfe is the coach that guides, you probably might've come across her before I found her through a Newsweek report, she's quite known in her field, look-her up.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Totally agree on an aggressive investment strategy BUT it can be a roller coaster. Fantastic when your fund experiences strong growth (you never get tired of counting gains) but literally your stomach churns in a bear market. When will it recover. Over time gains will outstrip market dips. Investment advice is needed with nothing on the extreme risk scale. That’s gambling not investment.
The spam bots below this video are really getting out of control 😢