Hi Alastair, you didn’t miss it no I left them out of the model. In reality, they would and probably should have been included here, I was stress testing to see if it works just with their assets given the state pension is so far away for them in this scenario…who knows what it will look like! But on reflection I should have included it. If they both had basic state pension entitlements it would solve the shortfall. I’ll pin this comment so it’s at the top so people can see it as I forgot to explain this in the video. Thanks for the comment.
@@ThatFinanceShow one of the issues with retiring early is that they may not have enough years NI contributions built up to get a full state pension. Especially if they have been to University themselves. I think your modelling is great. I used a financial advisor but when I asked him to stress test the model he didn’t offer it and I just had to rely on his opinion - I didn’t use him after that.
I'd be retiring or working less in 8 years, and considering this financial recession, Im deciding to begin taking up skilled trades. I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, learn around $130K per year but nothing to show for it yet.
I have been advised on that. Finding one who understands what I want and can work with me to achieve it is essential, although I'm yet to find one. Any recommendations, please?
I'm surprised that you just mentioned and recommended Eric, I met him at a conference in 2018 and we have been working together ever since. Best financial decision of my life
It's crazy how some say the stock market will crash, while others push investing in it. Is it an oxymoron or a paradox? Thinking of putting over 150k in, but need solid risk strategies. Thoughts?"
In 2024,don't set new year financial goals without consulting a financial adviser.there expertise ensure a solid plan for success.Building wealth involves developing good habits like regular putting money away in intervals for solid investments.
Thanks for the advice! I'm new to financial planning and wasn't sure where to start.Any tips on finding a reliable financial adviser or resource to guide beginners?
How can I participate in this?I sincerely aspire to establish a secure financial future and am eager to participate.who is the driving force behind your success?.
I appreciate it. After searching her name online and viewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
great to see Tom, this is what its all about, many advisers cant stop taking about the product, the sexy investments! But as you have shown its much different than that. What software are you using for the forecast if i may? look forward to future videos.
@@ThatFinanceShow I decided to learn all this via the Trading 212 channel. In my opinion, your videos stood out more than anyone else’s. I have ADHD and struggle to focus but the way you take control of the dialogue and editing of a video is SO engaging and refreshing, it makes learning such a complex topic so much easier for people with shorter attention spans. Thank you for your content, and we can’t wait to see you in 2025! :)
It would be good to see more of this type of video but perhaps with lower/more normal income(s). While this one was great it sort of felt like watching "A Place In The Sun" and that holiday/retirement home you'll never have 🙂
It’s hard to say anything is fool proof, life throws all sorts of curveballs. None of my plans ever play out in practice, I’m very clear on that up front. 3% withdrawal rate is solid footing though
I make it 4.5% average over last 50 years -an unfortunate choice as in the 1970's the rate of inflation recorded some of the highest rates ever recorded. Point made is good though - 2.5% is optimistic is my view also. What really matters though is investment returns assumptions over and above inflation i.e real returns
This is one of my favorite channel, Thanks for breaking it down!! I'm glad I can still smile, I'm really happy for today. I finally got my profit of $70,000 on this crypto investment after feeling so escatic and heavy minded that nothing good can come out of it.
I'm celebrating a $42k stock portfolio today. started this journey with 6k. I have invested on time and also with the right terms now I have time for my family and the life ahead of me
Sadly, I'm 43, never owned a house, no college degree, limited office/tech skills and only ~$50k in retirement funds... Which will likely go south soon with the incoming age of ai robots replacing humans for jobs like mine.
interesting video bud. so many things to consider :) Why not invest their pre retirement funds into money market funds, which should quite confortably beat inflation, and adopt a multi tier strategy(1-3 years in cash/money market funds, 3-10 in moderately safe bonds/equity split, and 10+ years in higher proportion risk equity) for post retirement invesment
To be honest, if a joint income couple on £130k with no mortgage, large savings and pension need financial advice then they have a problem. You haven’t picked a scenario relatable to the vast majority of people. The vast majority of people live pay check to pay check and have modest if any savings.
Was thinking the same thing ,i watch a lot of these videos to help with my financial future ,and they all seem to have examples of people with 500k - 1 million houses ,up to and over 100 k salaries and 100s of thousands of pounds in pension pots ,and huge savings pots ,good advice videos ,i enjoy them but dont really relate to average people ,with average salaries and savings pots ,average house prices are 250k -300k and average wage is 30k - 35k per year
Pretty obvious they couldn’t afford to retire that early and still have a good lifestyle. Numbers / using the tool seems the easy bit, harder to explain to people 50k over 30yrs is a stretch.
If you really want to retire THAT early, then DIY is only way to go. The only people who are going to benefit from this kind of "advice" are very high net worth individuals who stand to lose a lot in taxation by getting it wrong. Paying (around 1%?) for this kind of advice is not money well spent in my view - the future is uncertain. If you pay 1% per year for a 40 year retirement, thats 20% of your pot in today's money burnt, assuming you aim to end retirement with a pot of zero. If you want to pass money on after death, then the % will be more than 20
![These Vancouver Neighbourhoods MADE Money in 2024 [Living in Vancouver]](http://i.ytimg.com/vi/OromHVhr-OQ/mqdefault.jpg)
Great to see you back. Did I miss a mention of state pension as an income at 67/68?
Hi Alastair, you didn’t miss it no I left them out of the model. In reality, they would and probably should have been included here, I was stress testing to see if it works just with their assets given the state pension is so far away for them in this scenario…who knows what it will look like! But on reflection I should have included it. If they both had basic state pension entitlements it would solve the shortfall. I’ll pin this comment so it’s at the top so people can see it as I forgot to explain this in the video. Thanks for the comment.
@@ThatFinanceShow one of the issues with retiring early is that they may not have enough years NI contributions built up to get a full state pension. Especially if they have been to University themselves. I think your modelling is great. I used a financial advisor but when I asked him to stress test the model he didn’t offer it and I just had to rely on his opinion - I didn’t use him after that.
Yep all great points. Really hard to condense this huge topic into a 10/15min video!
I'd be retiring or working less in 8 years, and considering this financial recession, Im deciding to begin taking up skilled trades. I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, learn around $130K per year but nothing to show for it yet.
Consulting a financial advisor can help tailor a strategy that aligns with your financial goals and circumstances.
I have thought about this, but haven't figured out how to get consultation, I don't live in a big city.
I have been advised on that. Finding one who understands what I want and can work with me to achieve it is essential, although I'm yet to find one.
Any recommendations, please?
ERIC PAUL ELMER is the CFP for you. I recommend him because I understand where you stand and your need for a listening ear.
I'm surprised that you just mentioned and recommended Eric, I met him at a conference in 2018 and we have been working together ever since. Best financial decision of my life
Tom, great to see you back again. Great video, really insightful and useful.
Thanks Lee, appreciated
Brilliant video. Music at the start was a bit loud like but the content was fantastic as always. Thanks for returning to us plebs on the tube.
Ah, hope it didn’t distract too much. Thanks for watching!!
Great video. Makes the process very clear and highlights the skills and tools available to start the journey. 🙂
Glad it was helpful!
It's crazy how some say the stock market will crash, while others push investing in it. Is it an oxymoron or a paradox? Thinking of putting over 150k in, but need solid risk strategies. Thoughts?"
Seems like he's got some serious knowledge. I checked out his online page too and went through his resume, qualifications, and all that jazz.
Good video and useful info
Glad the background music stopped quickly!
Thank you, yes seems music was too loud at start, trying to fix!
In 2024,don't set new year financial goals without consulting a financial adviser.there expertise ensure a solid plan for success.Building wealth involves developing good habits like regular putting money away in intervals for solid investments.
Thanks for the advice! I'm new to financial planning and wasn't sure where to start.Any tips on finding a reliable financial adviser or resource to guide beginners?
How can I participate in this?I sincerely aspire to establish a secure financial future and am eager to participate.who is the driving force behind your success?.
I appreciate it. After searching her name online and viewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
@@Bulislavabot
great to see Tom, this is what its all about, many advisers cant stop taking about the product, the sexy investments! But as you have shown its much different than that.
What software are you using for the forecast if i may?
look forward to future videos.
Thank you so much. There’s loads of software out there, I’ve used most of them over time. This was using Voyant.
Miss your videos ☹
I’m coming back in 2025!
@@ThatFinanceShow I decided to learn all this via the Trading 212 channel. In my opinion, your videos stood out more than anyone else’s. I have ADHD and struggle to focus but the way you take control of the dialogue and editing of a video is SO engaging and refreshing, it makes learning such a complex topic so much easier for people with shorter attention spans. Thank you for your content, and we can’t wait to see you in 2025! :)
It would be good to see more of this type of video but perhaps with lower/more normal income(s). While this one was great it sort of felt like watching "A Place In The Sun" and that holiday/retirement home you'll never have 🙂
Hear you loud and clear , not the first comment like this. Leave it with me
Orca Wealth is here www.orcawealth.co.uk
See you on the beach, I'll be the guy cuddled up with Beyonce.
Do you think retiring at 3% SWR while taking all the standard steps make it fool-proof?
It’s hard to say anything is fool proof, life throws all sorts of curveballs. None of my plans ever play out in practice, I’m very clear on that up front. 3% withdrawal rate is solid footing though
My biggest concern is that I'm in an EU LCOL area and my retirement number would be low. If prices do catch up, it can get ugly for me.
UK inflation last 50 years on average has been 5.2%, recalculate?
Yip, no way is it a 2 number.
You’d certainly run some extra stress tests on higher rates of inflation for sure
I make it 4.5% average over last 50 years -an unfortunate choice as in the 1970's the rate of inflation recorded some of the highest rates ever recorded. Point made is good though - 2.5% is optimistic is my view also. What really matters though is investment returns assumptions over and above inflation i.e real returns
This is one of my favorite channel, Thanks for breaking it down!! I'm glad I can still smile, I'm really happy for today. I finally got my profit of $70,000 on this crypto investment after feeling so escatic and heavy minded that nothing good can come out of it.
I strongly believe BTC is gon rise speedily soon even up to $100,000 Following good analysis you'd discover the possibility of this.
Investing in Cry'pto now is very cool especially btc
Yeah Stocks are good but Crypto is much better. You know stocks involves enough capital to startup.
I'm celebrating a $42k stock portfolio today. started this journey with 6k. I have invested on time and also with the right terms now I have time for my family and the life ahead of me
My investment portfolios are Bitcoin, ETH and ΧΑΙ86Κ
It looks like you didn't bother suggesting they should try to reduce their fees from a staggering 1.3%?! Somebody is ripping them off...
Sadly, I'm 43, never owned a house, no college degree, limited office/tech skills and only ~$50k in retirement funds... Which will likely go south soon with the incoming age of ai robots replacing humans for jobs like mine.
First!
🥇
HAIR
interesting video bud. so many things to consider :) Why not invest their pre retirement funds into money market funds, which should quite confortably beat inflation, and adopt a multi tier strategy(1-3 years in cash/money market funds, 3-10 in moderately safe bonds/equity split, and 10+ years in higher proportion risk equity) for post retirement invesment
Money market will be dead when interest rates fall. Gilts would be better.
To be honest, if a joint income couple on £130k with no mortgage, large savings and pension need financial advice then they have a problem. You haven’t picked a scenario relatable to the vast majority of people. The vast majority of people live pay check to pay check and have modest if any savings.
Was thinking the same thing ,i watch a lot of these videos to help with my financial future ,and they all seem to have examples of people with 500k - 1 million houses ,up to and over 100 k salaries and 100s of thousands of pounds in pension pots ,and huge savings pots ,good advice videos ,i enjoy them but dont really relate to average people ,with average salaries and savings pots ,average house prices are 250k -300k and average wage is 30k - 35k per year
Pretty obvious they couldn’t afford to retire that early and still have a good lifestyle. Numbers / using the tool seems the easy bit, harder to explain to people 50k over 30yrs is a stretch.
They aren’t far off. Without state pension this is too…
If you really want to retire THAT early, then DIY is only way to go. The only people who are going to benefit from this kind of "advice" are very high net worth individuals who stand to lose a lot in taxation by getting it wrong. Paying (around 1%?) for this kind of advice is not money well spent in my view - the future is uncertain. If you pay 1% per year for a 40 year retirement, thats 20% of your pot in today's money burnt, assuming you aim to end retirement with a pot of zero. If you want to pass money on after death, then the % will be more than 20