Excellent video and extremely helpful! All your videos are excellent but this one stands out as it strikes at the heart of what keeps us from confidently retiring as early as we truly can. You really nailed it by exposing the true driver behind the fear messaging we’re constantly inundated with. Bravo!!
Hmmmmm I retired 3yrs ago at 58, and have absolutely no regrets. The only people sad about people retiring early are the financial managers who make less money.
I planned on 55 and could have done it and have what I said I would need in my 20s, but I didn’t realize how much I would be making at 55. I’m going to hold in there till 59.5. At that point my income won’t change, well if the market does what it should.
Retired earlier this year at 55, non-degreed mechanical engineer. You just have to make it a priority early and have the discipline to stick with it. Unfortunately people are not taught these financial skills, and most people don't have the foresight or the will power to accomplish it. I had degreed engineers (who made significantly more than me) over the years asking how they could also retire at 55. I would ask them how old they are and then tell them that I couldn't help them because my plan required 30-35 years to accomplish so you have to start at the age of 20-25. I don't think my take home pay was ever over 45% of my gross pay, and I still saved a significant portion of that. Yes I lived in some bad neighborhoods until I bought my 2nd (and last) house, and didn't have a new car for 20 years or take a decent vacation for 20 years but now I travel business class all over the world with no financial cares at all.
I retired a few months ago at 63. Not much before 65 true. But I didn't really enter the work force and start saving for retirement until I was 35. Before that I worked at a family business. Lots of good memories and experiences I wouldn't trade for anything. But _very_ little money, not one penny saved for retirement until I was 35 and started working in a STEM field. It payed well, but nothing at all extreme. It's been 30 years of making up for lost time - and we managed to balance living for today and saving for tomorrow. Even today you can do it, but it's a heck of a lot easier if you both start early and are in a profession that pays well.
My plan was to retire at 65, but 3 years ago I got a new job that I love. I don’t want to retire while I still enjoy working. I’m going to wait until 67 now. I could retire sooner, but with the flexibility, of my work schedule, and friendly coworkers, I’m just not ready yet.
Great video and I'm surprised with the title, as I've talked to more and more that ignore SS and plan to retire prior to 60. I'd be interested in seeing your same timeframes using the Nikkei 225 as a worst case scenario for an economy in long term stagnation.
A very useful discussion. Only suggestion would be to include the inflation adjusted purchasing power of the ending balances in the table discussed at 13:00 - e.g. if you adjust for 30 years at 3% inflation, only scenario 1 actually has a higher ending balance in "today's dollar".
Welp, everyone didn't give up retiring early. We bought a few extra houses nobody else wanted over the years and retired early. Never had a car payment.
Agree, some people may have more financial problems due to having lived beyond their means, and not saving enough. This would also compound in retirement, by causing them to feel they need more funds to keep up a standard of living in retirement. But some may have had unemployment periods due to layoffs, delaying savings goals. Seems like higher employment turmoil in "recent" history, due to technology changes, outsourcing, market changes, etc. Some may have been too conservative in investments - putting too much in CDs for instance, not keeping ahead of inflation, so not enough to retire as early. Of course some people could have had health or family expenses that delay feeling they have sufficient funds. But agree, some people fear the unknown, that they'll have enough saved to cover decades of retirement. I retired early, partly due to some personal and family health issues, but in hindsight, probably could have retired earlier - as noted before and one of your themes, of the overly cautious... having had concerns of having sufficient funds to last decades in retirement. But seems like income vs expenses have been more favorable than anticipated ... so far. 😄
I’m not sure I believe government inflation data. I bought inflation indexed I Bonds almost thirty years ago thinking inflation was going to be very high. They earned very low returns except in 2022 and 2023. Inflation has to be higher than advertised. And property taxes and healthcare insurance I think have gone up hugely the last decade.
In your discussion on Cost of Living vs Market Return, you are not including taxes. So while it may look like the 60/40 Portfolio Return exceeds Cost of Living by a sizable margin, in reality it doesn't.
5:06 sevices = what ?? for example phone & TV service was a SMALL percentage of my budget..... those are easly up 5x if not more since the vast majoity have phone converted from landline to mobile with data and then add intenet service + cable......just wondering what that impact would be on the bottom line....... p.s geat infomation!
The retirement programs have shifted from corporate provided annuity pensions to employee responsible 401K savings. Of course wages have increased, the employee has to stash/invest wages to provide a self funded retirement. I think you missed or did not address this factor.
Hey thanks for the view and the comment. Unfortunately, can't cover every facet in a 15-20 minute video - but I can hopefully cover how taxes would have played into this scenario in a future video.
I think you will find over the next 5 years the cost of housing and transportation both increase due to the higher interest rates no in effect. I seriously doubt you will see and sub 3% mortgages in our future.
There are Dividend ETFs and bonds ETFs where u can live off the dividends where you never have to sell anything and just live off the dividends. Why doesn't any channel make a video using dividends?
I've done a few videos on this subject - you can find them under the "asset allocation" playlist. But I will say - there are still nuance to the discussion around dividend portfolios and how to use them appropriately. I'll file this away and make a more detailed video about this in the future.
Thanks for the perfect update. Thinking about investment diversification is certainly key, How do I properly invest 250k in the market and what strategies do I employ to make significant gains and stable cashflow?
Well agreed, amid covid-19 outbreak, I simply adopted the service of a certified financial planner instead of panicking and thankfully, I've accrued nearly $1m ROI after subsequent investments to date, marking my most significant financial milestone
Productivity is never accidental; it is always the result of careful planning, dedication, and consistency. I am grateful to God for my advisor, MRS Clara Burn
Retired at 59, spouse going at 62. We are definitely middle class. Republicans are trying to make us work until 70. If you ignore planning for retirement, yes it will be stressful. If you plan and save it can be done.
Excellent video and extremely helpful! All your videos are excellent but this one stands out as it strikes at the heart of what keeps us from confidently retiring as early as we truly can. You really nailed it by exposing the true driver behind the fear messaging we’re constantly inundated with. Bravo!!
Hmmmmm I retired 3yrs ago at 58, and have absolutely no regrets. The only people sad about people retiring early are the financial managers who make less money.
I planned on 55 and could have done it and have what I said I would need in my 20s, but I didn’t realize how much I would be making at 55. I’m going to hold in there till 59.5. At that point my income won’t change, well if the market does what it should.
Couldn't have said it better.
Great video, spot on, 100% agree with your summary, its a discipline problem not an economics problem.
Retired earlier this year at 55, non-degreed mechanical engineer. You just have to make it a priority early and have the discipline to stick with it. Unfortunately people are not taught these financial skills, and most people don't have the foresight or the will power to accomplish it. I had degreed engineers (who made significantly more than me) over the years asking how they could also retire at 55. I would ask them how old they are and then tell them that I couldn't help them because my plan required 30-35 years to accomplish so you have to start at the age of 20-25. I don't think my take home pay was ever over 45% of my gross pay, and I still saved a significant portion of that. Yes I lived in some bad neighborhoods until I bought my 2nd (and last) house, and didn't have a new car for 20 years or take a decent vacation for 20 years but now I travel business class all over the world with no financial cares at all.
Well done mate.
I think you did a great job at explaining this. My CFP told me the hardest thing for me to do is to shift from a savings mentality to a spending one.
I think that is likely true - especially since every one out there is incentivized to convince you NOT to spend your money... It's an uphill battle...
I retired a few months ago at 63. Not much before 65 true. But I didn't really enter the work force and start saving for retirement until I was 35. Before that I worked at a family business. Lots of good memories and experiences I wouldn't trade for anything. But _very_ little money, not one penny saved for retirement until I was 35 and started working in a STEM field. It payed well, but nothing at all extreme. It's been 30 years of making up for lost time - and we managed to balance living for today and saving for tomorrow. Even today you can do it, but it's a heck of a lot easier if you both start early and are in a profession that pays well.
My plan was to retire at 65, but 3 years ago I got a new job that I love. I don’t want to retire while I still enjoy working. I’m going to wait until 67 now. I could retire sooner, but with the flexibility, of my work schedule, and friendly coworkers, I’m just not ready yet.
This is great! You need to publish this! Wow!
Nice job! Great information
Great video and I'm surprised with the title, as I've talked to more and more that ignore SS and plan to retire prior to 60. I'd be interested in seeing your same timeframes using the Nikkei 225 as a worst case scenario for an economy in long term stagnation.
A very useful discussion. Only suggestion would be to include the inflation adjusted purchasing power of the ending balances in the table discussed at 13:00 - e.g. if you adjust for 30 years at 3% inflation, only scenario 1 actually has a higher ending balance in "today's dollar".
Welp, everyone didn't give up retiring early. We bought a few extra houses nobody else wanted over the years and retired early. Never had a car payment.
Agree, some people may have more financial problems due to having lived beyond their means, and not saving enough. This would also compound in retirement, by causing them to feel they need more funds to keep up a standard of living in retirement. But some may have had unemployment periods due to layoffs, delaying savings goals. Seems like higher employment turmoil in "recent" history, due to technology changes, outsourcing, market changes, etc. Some may have been too conservative in investments - putting too much in CDs for instance, not keeping ahead of inflation, so not enough to retire as early. Of course some people could have had health or family expenses that delay feeling they have sufficient funds. But agree, some people fear the unknown, that they'll have enough saved to cover decades of retirement. I retired early, partly due to some personal and family health issues, but in hindsight, probably could have retired earlier - as noted before and one of your themes, of the overly cautious... having had concerns of having sufficient funds to last decades in retirement. But seems like income vs expenses have been more favorable than anticipated ... so far. 😄
New sub. Excellent work.
Good video, most of my friends have been pulling 7 percent. Didn't even lower them during covid crash, still have more than when they retired.
I’m not sure I believe government inflation data. I bought inflation indexed I Bonds almost thirty years ago thinking inflation was going to be very high. They earned very low returns except in 2022 and 2023. Inflation has to be higher than advertised. And property taxes and healthcare insurance I think have gone up hugely the last decade.
I can agree with this statement. I think we all wish that the data we get from the government were more transparent... :S
In your discussion on Cost of Living vs Market Return, you are not including taxes. So while it may look like the 60/40 Portfolio Return exceeds Cost of Living by a sizable margin, in reality it doesn't.
It depends how your assets are situated but you are correct there are always confounding factors.
Thank you for this bideo
5:06 sevices = what ?? for example phone & TV service was a SMALL percentage of my budget..... those are easly up 5x if not more since the vast majoity have phone converted from landline to mobile with data and then add intenet service + cable......just wondering what that impact would be on the bottom line....... p.s geat infomation!
what withdraw rate do you use with guardrails?
It will change person to person based on their desired spending, amount of wealth at the time of retirement, as well as their investment allocation.
@@ThePeakFP would you consider a future video with some examples of how to determine the rate for different situations?
The retirement programs have shifted from corporate provided annuity pensions to employee responsible 401K savings. Of course wages have increased, the employee has to stash/invest wages to provide a self funded retirement. I think you missed or did not address this factor.
Anyone notice anything about the graph?
where is tax portion in your calculation ?
Hey thanks for the view and the comment.
Unfortunately, can't cover every facet in a 15-20 minute video - but I can hopefully cover how taxes would have played into this scenario in a future video.
I think you will find over the next 5 years the cost of housing and transportation both increase due to the higher interest rates no in effect. I seriously doubt you will see and sub 3% mortgages in our future.
Now if I only had $1millon
There are Dividend ETFs and bonds ETFs where u can live off the dividends where you never have to sell anything and just live off the dividends. Why doesn't any channel make a video using dividends?
I've done a few videos on this subject - you can find them under the "asset allocation" playlist.
But I will say - there are still nuance to the discussion around dividend portfolios and how to use them appropriately. I'll file this away and make a more detailed video about this in the future.
Thanks for the perfect update. Thinking about investment diversification is certainly key, How do I properly invest 250k in the market and what strategies do I employ to make significant gains and stable cashflow?
Well agreed, amid covid-19 outbreak, I simply adopted the service of a certified financial planner instead of panicking and thankfully, I've accrued nearly $1m ROI after subsequent investments to date, marking my most significant financial milestone
Productivity is never accidental; it is always the result of careful planning, dedication, and consistency. I am grateful to God for my advisor, MRS Clara Burn
Please, how do I get in touch with the market analyst guiding you?
she often interacts on Telegrams, using the user name
ClaraB3🌟🌟🌟
Retired at 59, spouse going at 62. We are definitely middle class. Republicans are trying to make us work until 70. If you ignore planning for retirement, yes it will be stressful. If you plan and save it can be done.
who told you that future performance will be simillar to past performance ? false assumption ! !!
Thanks for the view and the commend Michael.
No clue what the future will hold - we will find out together :)
Your video is very flawed and ask the wrong questions.
Thanks for watching. Hope you were able to pull something from the content.
Keep voting Democrat and it will only get worse
Republican leaders want us to work until 70, while they retire early, millionaires with fat insurance coverage.