I admire the financial independence of people, But you can live better if you work a little more. After watching this I think there are people out there, on the extreme, who plan to die early just to be able to retire early. To each their own but to me retirement isn't just about not having to work, it's about having the freedom to do whatever you might reasonably want, such as travel, buying things, enjoying life, etc. I don't think I could retire with less than $3m in income generating investments, maybe $2m at the very minimum. I plan to work until I'm at least 45.
Nobody knows anything, you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving
@@devereauxjnr 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 license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.
@@user-3456rtu I really need professional aid because I'm close to retirement and my portfolio is down over 15% just in the past month alone. It's been that way for the majority of 2022. Could you please suggest this coach to me?
@@Scylla-456t Do your due diligence and opt for one that has tactics to help your portfolio continue consistent and steady growth. "NICOLE DESIREE SIMON"" is accountable for the success of my portfolio, and I believe she has the qualifications and expertise to accomplish your objectives.
I realized that the secret to making a million is making better investment. I always tell myself you don't need that new car or that vacation just yet and that mindset helps me make more money investing.>>>
No she's not!... RUclips is a public place; i can't drop her information here but You can just put her name on google and you will be directed to her website and drop her your message.>>>>>>>
I worked until I was 67 and half , 38 years - time went by very fast because I saw my work as a entertaining challenge, and when I really got good at it , I kept on learning every day from the younger workers. All through my working year I kept a saying of my father in mind : one works to live , one does not live to work. I still get up every day and do my exercises, and then do something which I consider work for about 2 to 3 hours - I maintain two big pieces of land with all the good machinery I can personally handle. Workings with the land is good for my health, after two or three hours I take a cold shower and pressure test one of two or three hammocks I have strategically located with relation to wind and shade. I eat well. I don’t know if I’ll have time to spend the money I have , but I sure know that I’m not wasting my time. I drive a good old car that I don’t care if it gets scratched or dent in a parking lot - it has a great A/C . I try not to read too much news and stay away from internet histeria. That last one is a sure fire health benefit. Every day something needs maintenance or repair, I see that as a challenge. I try my most to use things and not have things use me. Five basic things drive me : gratitude, peace, tranquility, calm and clarity. Above all hope.
I wanted to leave all my saved money to my daughter and step-daughter. Times have changed, unfortunately. The world, egads. But the time I spent with them, educating, nurturing, supporting, coaching, paying for the best possible upbringing I could give them through my energy, and running the road for them have paid off. They are strong women now.
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
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.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Very good advice; especially number 1 ! I know too many couples living a poor life, while their kids live a good life because their mom and dad are paying their way through life.
Kudos to you for going the extra mile to help your mentor. Sad he was depriving himself to save money for children that apparently were content to let him live that way.
Great advice, as always. You handled the supporting of capable adult children very well. My Aunt took care of her disabled son until his passing. I had nothing but respect and admiration for her.
@@Honestandtruth007 401K ROTH is not taxed on withdrawal. 401K Non-ROTH is taxed as Ordinary income (so will vary based on your income for the year and what tax bracket that places you in, which varies by year).
My husband and I both have an elderly parent, but we aren’t figuring any inheritance into our retirement plan. That is because the money belongs to our parents, not to us. If they leave money to us that’s great but we really just want to make sure that they are able to live out their lives comfortably and able to afford any care they need in the future.
I put my kids through college, and they earn six-figure salaries now. I started with nothing, joined the military to get my college education, and worked two jobs for decades to pay off my mortgage early. I'm not saving money for them, but once I'm gone they can split the proceeds from my estate which is definitely going to be a windfall for them. I am not counting on any Social Security when I retire. Nobody should.
9. My parents have adequate savings and low expenses, but when I spotted rotten wood trim at the base of their chimney, the carpenter recommended a minor roof/flashing repair by a roofing company when he found a soft spot under the shingles. My parents wanted to skip the roof repair to "save" money. Very illogical example of false economy as full on water damage would have cost thousands instead of the $700 repair. They were not convinced until they got the third opinion of a neighbor who said not repairing it would be a foolish idea. After it was completed much to my relief, I gave my parents cash to cover the repair, so as to not let money stop them from performing necessary repairs.
My dad recently told me that he couldn't afford to come and visit for the holidays because his old car was in need of repairs. I told him that he should trade it in and get something newer and more reliable, but when he tried to get financing his credit score was not good, and the bank wanted a whopping 12%. He has been so frugal that he hasn't had a bank loan or credit card debt in nearly 10 years (which caused his credit score to tank). I ended up loaning him the money to get a new car - but I'm not planning to ask him to pay it back. If he mentions anything about loan payments I'm going to say, "Please don't worry about it."
My children for high school graduation received luggage and I told them to get a clue. Now they are doing better than me. Codling is disabling not enabling.
Thanks for this informative video. I appreciate your clear and calm delivery. My mom was trapped in point number 1 by one of my siblings. Gratefully, one of my other siblings got her out of it. We need to be protective of our older family members.
Important points, especially #1. Several friends/family members have enabled adult children to the point that their own retirement is jeopardized. It leads to resentment of the very children you thought you were helping.
Hi Mr Schmidt. I just wanted to let you know how much I enjoyed your posts and to thank you for taking the time to put them together. You have an excellent way of presenting information.
This was a great presentation. Clear, concise, not controversial, and something anyone could listen to and understand. My parents balanced these things so well.
I am nowhere near retirement but I find your videos very informative. Especially yours. I watch a ton of them. Thank you for investing the time in making them. I am a student of 'money' and am always looking to learn as much as possible!
Getting ready to retire in February at 65 so been following your videos very closely. Don't think I will need to draw until 66 1/2. Still scary since i have worked all my life and really don't have the nest egg I would like to have...Thank You for all the great advise.
Mr Schmidt thank you very much you have helped in a way that will make my life better! Hope you and your family are blessed for all your hardworking and helpful guidance!
Good video. However you are missing the most important mistake. In The first few years of retirement, you must budget and track all your expenses. If you know what your expenses are for the year your way ahead of the game and not make any foolish money mistakes.
You are so right. In my first year of retirement I laid out a yearly budget, however, over the course of the year some expenses I had forgotten about came up. I expect this will happen again.
Thank you Geoffrey, I always enjoy your videos. I've been retired a few years (I retired early) and like to think I know exactly what I'm doing, but I saw myself on this list tonight. Um, it's the Scroogey thing. 😒
If you simply add up the age 62 social security payments vs the age 67 social security payments, the "break even" age may well be age 78.6. However, if you accumulate the payments forward with 4% interest, you "break even" for taking at 62 vs 67 at age 84. Choose a higher rate of return than 4% interest and the break even age will move out to a later age.
I never would have guessed about the kids...your number one...I am fortunate there...My kids would be able to care for me...But I have 4 friends that are in that rabbit hole...bad deal...Thanks for sharing...
I feel as though I've invested a little too conservatively but then again considering our personal circumstances it was probably the perfect allocation for us. All along the way we've been financially secure while facing one adversity after another. We still got there but yikes, it's been rough.
I hear that from time to time., but markets are not always going up like this. Sometimes they hit back hard and people lose money. If you got there that is the important thing because so many don't.
@@HolySchmidt In our case, one that no one seems to ever write or talk about, I found it prudent to pick an asset allocation somewhere between a working couple and a retired one. As part of that, I also chose a very robust emergency fund of 2 years worth of our modest spending, including COBRA coverage. This served us extremely well over the years, providing security throughout many adversities. Even during the great recession our household had a 50 week unemployment stretch along with an emergency surgery and an 11 day hospital stay we never touched our savings, but they always stood at the ready and still do. Looking back I could have investing more aggressively but nothing was ever a certainty and working in the cyclical mortgage industry, even less so as there were frequent layoffs. These days it's all just letting time do all of the heavy lifting in putting the icing on the cake. Looking ahead, I had been worried about inflation, but I worried for nothing. Even the basic groceries we purchase are back to pre-pandemic levels and actually lower in some cases. Despite current shortages, the next new vehicle we're likely to purchase in about 5 years is still the same low list price and the 40 gallons of gasoline for our next upcoming vacation may be a little more but hardly of consequence as it's the only expense of the entire trip. Just as I had hoped, I can dodge inflation like I'm in The Matrix. Cheers!
@@tomj528 Sleeping at night is more important than making tons of money. My wife and I are different when it comes to investing but neither way is wrong. I'm riskier than she is and there were times I was nervous ... that was many years ago though. Just my opinion but at the end of the day as long as you have whatever you need to make you happy and comfortable is all that matters.
@@vinnyg2619 While I've worried over the years, I needn't have and I could have invested a bit more aggressively but this way we always had a firm financial footing to fall back on, which we've never needed thank goodness. We've got our retirement covered with almost 20 more years to FRA and we're continuing to save for retirement simply for the incredible tax savings alone. It's easy to look back and rethink but when I think back and look forward it's pretty hard to want to do anything differently.
@@tomj528 We started to "seriously" save at around 40 YO and in 20 years we have done well. Yes, the market has done extremely well during this time which has help us tremendously. Time is on your side! Just knowing that the market will go down is also on your side; back in 2007/2008 during the correction people were selling their investments and taking an actual loss vs a paper loss. Sounds like you got it covered which is great!
#1 is avoidable if you teach your kids about money, saving as a child for the future and stressing the importance of 401Ks. I told both kids, stay as long as you want to be self sufficient. They both moved out with good jobs and purchasing their homes at 24 and 27. #3 have a realistic plan, space out expensive travel and take a few road trips in between. #10 SS at 62 around 1st expensive travel Hawaii (money already saved 5 yrs early)
Many financial advisors talk strictly about living on the 4% from 401k investments but never factor in s.s. I'm counting on that s.s. as much as my 401 is that smart?
Absolutely enjoy all of your commentary, very educational for sure. Not that I’m counting…. 22 months, 28 days until My 62nd B-Day, I have been a believer in filing for S.S. @ 62 since turning 50. According to all the data I have read, the person I’m related to by marriage and I are way ahead in savings plus a pension, which is a so rare these days. My motto to her is “Spend It All”. I thought that was a selfish comment for the longest time, Not any more. Enjoy the day…
Just watched one of your other videos , can’t find it to put a comment but wow that is a real eye opener about ev’s and how easy it is for them to be totaled and the insurance cost of them, I kinda figured they’re still very expensive to purchase right off the bat. Good points, thank you as always.
It's absolutely crucial to be caucious about giving money to your kids who are old enough to work hard for themselves!! I hate to say it, but let the kids fall on the ground.....they will get up by themselves. If they don't fall you,, you will be paying for them forever. I completely agree with Mr Schmitd, he is a genius !!!!!!!
Key word is "FIXED INCOME" Those two words alone will echo fear in the would-be spender. I am 7 years for collecting SS at 62. This is an indicator me to get my mortgage paid off, take a snapshot of my health and get some things "fixed" all the while maximizing my 401 plan.. The one you have to take into consideration are medical and taxes once you retire.
Thank you again for this very good advice. I retired in March 2019. I planned for it, and now things are going as planned. My wife and I did most things right.
Took my SS at age 62. By doing so I was able to keep my retirement funds in my IRA fully invested and in position to take full advantage of the great 2009-2021 growth in the market which I would not have been able to do as effectively if I had to draw down my IRA over the last 12 years. So, for me taking SS early was actually a good investment because the market paid handsomely during those years for my IRA and I came out well ahead. I realize that my strategy would not work for everyone, I am just pointing out a different perspective on when to take SS.
Thank you. Good SANE advice. Beware of internet scammers. I.E. computer service groups that promise to clean your computer and speedup functioning! These groups are generally foreign but not always. Lost 10K. watch out for 'TEAM VIEWER" program to be installed on your pc. Took me months to remedy this and restructure my financial life for what it's worth!
My mom worked all her life and she did a lot of charity work helping new immigrants in the church. So we gave them housing, food, clothing, etc. till they got on their feet. When she went to retire someone else was working with her social security number and she was denied her benefits. She died without receiving her Social Security. I recommend take your money while you can - tomorrow is not promised to anyone.
Advice #1 is so true. Breoke my heart to see neighbor son living in basement until 52. Mom and Dad died and he now has no skills, or money, to have a good life. Needed tough love.
My mom definitely got the spendees. It was so scary! Now, she's close to 80, is disabled, and is having to work again, doing work she can't physically do well. I've tried to help, but she won't take the help I can give, but wants control over my life and finances or "I'm not a good daughter." So I stay away and send her disposable masks through Amazon. When I'm there visiting, I do a lot of cooking in advance and freezing individual meals. But I'm not there often, living several States away.
I love how this works sometimes. I'm talking about perfect timing for information that I will need or need currently. I'll be 60 in March. I've been studying social security for a few years. While I'm collecting social security disability now, at 62 I should have enough credits to possibly almost double my income since ssdi is so low. My other option which I think I'll use is my x husband I was married to for 17 years. Overall he had the most consistent higher I. One (but I had the better jobs )with professionals in the medical fieldpaid holidays and paid vacations, sick/flex days. I'll look forward to gathering All the information I can this year. The book club is perfect, too. You'd think covid would have been a dreamy book fest for me too. But I can't concentrate. So this will give me some badly needed
Good info! I'm gonna roll the dice & hope for the best by keeping most of my $ in stocks up until retirement. Either gonna work out great or I'll have to tighten my belt until it comes back!🤷♂️
Hello, Geoff. Love your videos! Please keeps them coming. Can you do a video or refer me to an article highlighting the pros & cons of consolidating my 401K accounts? Thanks!
My town is small. We had an elderly man Drive up and down the Main Street all day long. Then We had the February 14th freeze here in Texas. He died from the cold. He had $150,000 in his house in cash
No trading... Great advice!!! I watched my father...every visit.. Literally looking over his shoulder... Red red red... He lost 40 large in one quarter.. I seriously wanted to sell all his equities... Could have done it with a click... I had no right!!! He left his three sons a house... 30 percent went to the lawyers.... Took a year for probate... I tried for years to convince him to deed the house to my brother... Folks deed your property to a trusted person if you have one... If you don't have one.. You probably screwed up your life anyway!!!!!
Hi that just means that the first year in retirement your expenses and income will be different, so take the year to understand (calibrate) your spending and proceed with caution and don’t spend too much even if you want to.
Decision about social security and collecting shouldn't be about time or money. At least not 100%, just because I don't collected 62 doesn't mean I can't retire at 62 or even earlier.
The trick is to always tell people and family you’re struggling to get by no matter how well you’re doing. This will keep them from thinking you have money and asking for it or borrowing. And of course never talk about finances or details.
Great info as always I delayed taking Social Security because my pension has a Social Security off set. I am waiting to my government stated retirement age of 66 and 4 months, which at that point my employer will reduce pension by the off set. I hope I am doing the right thing.
Thanks Jose, your best bet is to speak to a qualified financial planner. They can help you get ready and set you up for a spending plan. Speak to friends and family to see who they use.
Do you have a video that revolves around the taxes? I will probably be withdrawing from my 401K in a couple of years and I have no idea what I am supposed to do about the taxes, and what is the ideal situation there.
When you take a distribution, there’s an automatic withholding, default 10 or 15% but you can withhold more depending on your estimated income and tax bracket.
Good video, enjoy the inserts of the teenagers and the couple exercising. I am at fault of making more than one mistake. But will not make them again. Thank my three retirements. Military, Federal Government, and SS.
MM, The only way to never make a mistake is to never do anything or just die. Everyone makes mistakes, if you learn from the mistake you still accomplished something, some people never learn and they keep repeating the same mistake.
point number 1 is so true! My father, even in retirement, would help my siblings out (six!) who were actually doing fine, and even buying them expensive vehicles during retirement! I was the only one who never asked for anything, was a single parent and dirt poor enough to feed my kids and not myself. But I ended up helping my parents due to their "generosity"! It all turned out fine, so you know (I never, ever give up), and I told my kids the bible story of the lepers outside a besieged Jerusalem. They were relegated outside the city gates, starving, and one of them said, "why sit we here to die? Let's go to the enemy camp and beg for food." which they did, to find the enemy had fled, leaving everything behind, including a sumptuous feast! So I told my kids, never sit when life gives you a blow. get up! Do not sit to die. EVER! I am happy to say they follow that advice.
We purchased a second home in FL, as a family home. Our beautiful daughters lost it. The oldest one just disowned us and our youngest got a bit miserable with us. Prior to this our girls have always been wonderful. Never in a million years did we expect this reaction. I'm guessing the oldest got a case of self pity and the youngest just doesn't know how to handle the personality switch. No clue... 🤷♂️🤷♀️
seriously? so they were counting on the $$$ you were going to leave them. I am so sorry! I had a sister steal about 50k from me, but well, she is still my sister. (money I can replace eventually...family, I cannot.) Maybe point out that real estate tends to go up in value, and if they use those proceeds for a new real estate deal (at this point), tax free. Till their kids sell and break the cycle, lol. And so you know, especially as we grew older, my sister and I ended up the best of friends. I attended her funeral about a month ago. So I am glad I took that attitude. Best wishes!
@@e-spy Totally agree... I will always love my family no matter what... we are all human. You got me on this one... it's like their personalities changed... I wonder if it was just all the stress and isolation of COVID... you got me... 😳 My girls are in the middle of the messy 30's. I definitely am glad I didn't start to hand them substantial sums of $$$... definitely waiting on that one.
Question: My husband and I are retired. We've saved money to suppliment our SS income. What dollar amount would you keep in savings? D Trying to decide if taking monies out of our savings and put in an IRA. Suggestions Holy Schmidt?
Savings, as in a bank account? Verses investing in the market? What is your risk tolerance and do you have a good financial advisor? Unless you have $1 million plus, I would play it fairly safe.
Another great video, thanks. Consider doing one on investing - the super trader point was very interesting, and would like to hear more about your thoughts on index funds, stock mutual funds/ETFs, indiv stocks and investing in general.
that one was hard for me. I daytraded for 3 years, we did enough to live on and also help a few people. It was an old coworker who called begging for help that got me back into the workforce, lol. However, you MUST pay attention at all times, the work is hard, and one screw up and you lose thousands of dollars! This system is designed for market makers making the money, and you holding the bag. So it isn't recommended!
I admire the financial independence of people, But you can live better if you work a little more. After watching this I think there are people out there, on the extreme, who plan to die early just to be able to retire early. To each their own but to me retirement isn't just about not having to work, it's about having the freedom to do whatever you might reasonably want, such as travel, buying things, enjoying life, etc. I don't think I could retire with less than $3m in income generating investments, maybe $2m at the very minimum. I plan to work until I'm at least 45.
Nobody knows anything, you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving
@@devereauxjnr 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 license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.
@@user-3456rtu I really need professional aid because I'm close to retirement and my portfolio is down over 15% just in the past month alone. It's been that way for the majority of 2022. Could you please suggest this coach to me?
@@Scylla-456t Do your due diligence and opt for one that has tactics to help your portfolio continue consistent and steady growth. "NICOLE DESIREE SIMON"" is accountable for the success of my portfolio, and I believe she has the qualifications and expertise to accomplish your objectives.
@@user-3456rtu I just checked her out and I have sent her an email. I hope she gets back to me soon.
I realized that the secret to making a million is making better investment. I always tell myself you don't need that new car or that vacation just yet and that mindset helps me make more money investing.>>>
What I think everyone need is a Financial Adviser, who can help you get in and out of any investment at any time and you'd sure be in Profit>>>>>>>
*ROCHELLE DUNGCA-SCHREIBER,* That's whom i work with>>>>>>>>>>>>>
No she's not!... RUclips is a public place; i can't drop her information here but You can just put her name on google and you will be directed to her website and drop her your message.>>>>>>>
Very good advice. I started SS at 66 & kept working & saving til 68. Now 77 & I don’t care if I leave any money to anyone. Enjoy life!
I worked until I was 67 and half , 38 years - time went by very fast because I saw my work as a entertaining challenge, and when I really got good at it , I kept on learning every day from the younger workers. All through my working year I kept a saying of my father in mind : one works to live , one does not live to work. I still get up every day and do my exercises, and then do something which I consider work for about 2 to 3 hours - I maintain two big pieces of land with all the good machinery I can personally handle. Workings with the land is good for my health, after two or three hours I take a cold shower and pressure test one of two or three hammocks I have strategically located with relation to wind and shade. I eat well. I don’t know if I’ll have time to spend the money I have , but I sure know that I’m not wasting my time. I drive a good old car that I don’t care if it gets scratched or dent in a parking lot - it has a great A/C . I try not to read too much news and stay away from internet histeria. That last one is a sure fire health benefit. Every day something needs maintenance or repair, I see that as a challenge. I try my most to use things and not have things use me. Five basic things drive me : gratitude, peace, tranquility, calm and clarity. Above all hope.
Outstanding comment. Thank you!
I wanted to leave all my saved money to my daughter and step-daughter. Times have changed, unfortunately. The world, egads. But the time I spent with them, educating, nurturing, supporting, coaching, paying for the best possible upbringing I could give them through my energy, and running the road for them have paid off. They are strong women now.
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
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.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000
Mind if I ask you to recommend this particular coach you using their service?
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Very good advice; especially number 1 !
I know too many couples living a poor life, while their kids live a good life because their mom and dad are paying their way through life.
Kudos to you for going the extra mile to help your mentor. Sad he was depriving himself to save money for children that apparently were content to let him live that way.
Great advice, as always. You handled the supporting of capable adult children very well. My Aunt took care of her disabled son until his passing. I had nothing but respect and admiration for her.
Thanks for saying that. Your Aunt sounds amazing.
@@HolySchmidt Mr.. Holy Schmidt.... How much is Tax is taking from 401K When We are at Age 62....?????????
@@Honestandtruth007 would depend on your tax bracket.
@@Honestandtruth007 401K ROTH is not taxed on withdrawal. 401K Non-ROTH is taxed as Ordinary income (so will vary based on your income for the year and what tax bracket that places you in, which varies by year).
Very thankful and grateful my 5 children are positive members of society and involved in profitable careers that they love.
Nice work
My husband and I both have an elderly parent, but we aren’t figuring any inheritance into our retirement plan. That is because the money belongs to our parents, not to us. If they leave money to us that’s great but we really just want to make sure that they are able to live out their lives comfortably and able to afford any care they need in the future.
This is the right way to think about inheritance! Good for you.
I put my kids through college, and they earn six-figure salaries now. I started with nothing, joined the military to get my college education, and worked two jobs for decades to pay off my mortgage early. I'm not saving money for them, but once I'm gone they can split the proceeds from my estate which is definitely going to be a windfall for them. I am not counting on any Social Security when I retire. Nobody should.
9. My parents have adequate savings and low expenses, but when I spotted rotten wood trim at the base of their chimney, the carpenter recommended a minor roof/flashing repair by a roofing company when he found a soft spot under the shingles. My parents wanted to skip the roof repair to "save" money. Very illogical example of false economy as full on water damage would have cost thousands instead of the $700 repair. They were not convinced until they got the third opinion of a neighbor who said not repairing it would be a foolish idea. After it was completed much to my relief, I gave my parents cash to cover the repair, so as to not let money stop them from performing necessary repairs.
My dad recently told me that he couldn't afford to come and visit for the holidays because his old car was in need of repairs. I told him that he should trade it in and get something newer and more reliable, but when he tried to get financing his credit score was not good, and the bank wanted a whopping 12%. He has been so frugal that he hasn't had a bank loan or credit card debt in nearly 10 years (which caused his credit score to tank). I ended up loaning him the money to get a new car - but I'm not planning to ask him to pay it back. If he mentions anything about loan payments I'm going to say, "Please don't worry about it."
My children for high school graduation received luggage and I told them to get a clue. Now they are doing better than me. Codling is disabling not enabling.
Top mistake - kicking the bucket while there’s still money and a bucket list attached.
Thanks for this informative video. I appreciate your clear and calm delivery. My mom was trapped in point number 1 by one of my siblings. Gratefully, one of my other siblings got her out of it. We need to be protective of our older family members.
Alway appreciate your advice and presentation. Top notch!
Thank you Dan.
Important points, especially #1. Several friends/family members have enabled adult children to the point that their own retirement is jeopardized. It leads to resentment of the very children you thought you were helping.
Congrats on reaching 100,000 subscribers !!!!
Thank you!
That was a very nice thing you did for a friend/mentor..
A#1 is 100% correct. I see SO many people go into bankruptcy over 'helping' their children.
Yup. I invested $100 on AMC stock due to my college son begging me. Went up a little. Now my balance is around $42. Lesson learned.
I think he has as talking about GME.
Hi Mr Schmidt. I just wanted to let you know how much I enjoyed your posts and to thank you for taking the time to put them together. You have an excellent way of presenting information.
Congrats on 100K subscribers!
Thank you Jeff!!
Good solid advice from #10-#1.
Problem #1 is a real thorny one.
And probably not that rare.
This was a great presentation. Clear, concise, not controversial, and something anyone could listen to and understand. My parents balanced these things so well.
I am nowhere near retirement but I find your videos very informative. Especially yours. I watch a ton of them. Thank you for investing the time in making them. I am a student of 'money' and am always looking to learn as much as possible!
Getting ready to retire in February at 65 so been following your videos very closely. Don't think I will need to draw until 66 1/2. Still scary since i have worked all my life and really don't have the nest egg I would like to have...Thank You for all the great advise.
That is awesome Hal!
Mr Schmidt thank you very much you have helped in a way that will make my life better! Hope you and your family are blessed for all your hardworking and helpful guidance!
Good video. However you are missing the most important mistake.
In The first few years of retirement, you must budget and track all your expenses. If you know what your expenses are for the year your way ahead of the game and not make any foolish money mistakes.
You are so right. In my first year of retirement I laid out a yearly budget, however, over the course of the year some expenses I had forgotten about came up. I expect this will happen again.
Thank you Geoffrey, I always enjoy your videos. I've been retired a few years (I retired early) and like to think I know exactly what I'm doing, but I saw myself on this list tonight. Um, it's the Scroogey thing. 😒
We all have a little scrooge in us! Thanks for the comment Douglas.
Excellent advice as always! Thank you.
I always look forward to your videos, very informative. Keep them coming.
If you simply add up the age 62 social security payments vs the age 67 social security payments, the "break even" age may well be age 78.6.
However, if you accumulate the payments forward with 4% interest, you "break even" for taking at 62 vs 67 at age 84.
Choose a higher rate of return than 4% interest and the break even age will move out to a later age.
Nice video. Thank you very much for posting it - always appreciate the information when it is done as professionally as this.
Thanks TR!
I never would have guessed about the kids...your number one...I am fortunate there...My kids would be able to care for me...But I have 4 friends that are in that rabbit hole...bad deal...Thanks for sharing...
I feel as though I've invested a little too conservatively but then again considering our personal circumstances it was probably the perfect allocation for us. All along the way we've been financially secure while facing one adversity after another. We still got there but yikes, it's been rough.
I hear that from time to time., but markets are not always going up like this. Sometimes they hit back hard and people lose money. If you got there that is the important thing because so many don't.
@@HolySchmidt In our case, one that no one seems to ever write or talk about, I found it prudent to pick an asset allocation somewhere between a working couple and a retired one. As part of that, I also chose a very robust emergency fund of 2 years worth of our modest spending, including COBRA coverage. This served us extremely well over the years, providing security throughout many adversities. Even during the great recession our household had a 50 week unemployment stretch along with an emergency surgery and an 11 day hospital stay we never touched our savings, but they always stood at the ready and still do. Looking back I could have investing more aggressively but nothing was ever a certainty and working in the cyclical mortgage industry, even less so as there were frequent layoffs. These days it's all just letting time do all of the heavy lifting in putting the icing on the cake. Looking ahead, I had been worried about inflation, but I worried for nothing. Even the basic groceries we purchase are back to pre-pandemic levels and actually lower in some cases. Despite current shortages, the next new vehicle we're likely to purchase in about 5 years is still the same low list price and the 40 gallons of gasoline for our next upcoming vacation may be a little more but hardly of consequence as it's the only expense of the entire trip. Just as I had hoped, I can dodge inflation like I'm in The Matrix. Cheers!
@@tomj528 Sleeping at night is more important than making tons of money. My wife and I are different when it comes to investing but neither way is wrong. I'm riskier than she is and there were times I was nervous ... that was many years ago though. Just my opinion but at the end of the day as long as you have whatever you need to make you happy and comfortable is all that matters.
@@vinnyg2619 While I've worried over the years, I needn't have and I could have invested a bit more aggressively but this way we always had a firm financial footing to fall back on, which we've never needed thank goodness. We've got our retirement covered with almost 20 more years to FRA and we're continuing to save for retirement simply for the incredible tax savings alone. It's easy to look back and rethink but when I think back and look forward it's pretty hard to want to do anything differently.
@@tomj528 We started to "seriously" save at around 40 YO and in 20 years we have done well. Yes, the market has done extremely well during this time which has help us tremendously. Time is on your side! Just knowing that the market will go down is also on your side; back in 2007/2008 during the correction people were selling their investments and taking an actual loss vs a paper loss.
Sounds like you got it covered which is great!
In retirement ,very simple : keep yourself healthy . The rest would be relatively easy to deal within your circumstances
We’ll said
#1 is avoidable if you teach your kids about money, saving as a child for the future and stressing the importance of 401Ks. I told both kids, stay as long as you want to be self sufficient. They both moved out with good jobs and purchasing their homes at 24 and 27. #3 have a realistic plan, space out expensive travel and take a few road trips in between. #10 SS at 62 around 1st expensive travel Hawaii (money already saved 5 yrs early)
Many financial advisors talk strictly about living on the 4% from 401k investments but never factor in s.s. I'm counting on that s.s. as much as my 401 is that smart?
Absolutely enjoy all of your commentary, very educational for sure. Not that I’m counting…. 22 months, 28 days until My 62nd B-Day, I have been a believer in filing for S.S. @ 62 since turning 50. According to all the data I have read, the person I’m related to by marriage and I are way ahead in savings plus a pension, which is a so rare these days. My motto to her is “Spend It All”. I thought that was a selfish comment for the longest time, Not any more. Enjoy the day…
Just watched one of your other videos , can’t find it to put a comment but wow that is a real eye opener about ev’s and how easy it is for them to be totaled and the insurance cost of them, I kinda figured they’re still very expensive to purchase right off the bat. Good points, thank you as always.
Great video with excellent points. It's great that you highlighted common financial mistakes - very informative.
Excellent video, as usual. I LOVE your offerings and it helps me immensely. Thank you.
This time you gave good advice. Best regards Jack Hreha
It's absolutely crucial to be caucious about giving money to your kids who are old enough to work hard for themselves!! I hate to say it, but let the kids fall on the ground.....they will get up by themselves. If they don't fall you,, you will be paying for them forever. I completely agree with Mr Schmitd, he is a genius !!!!!!!
Key word is "FIXED INCOME" Those two words alone will echo fear in the would-be spender. I am 7 years for collecting SS at 62. This is an indicator me to get my mortgage paid off, take a snapshot of my health and get some things "fixed" all the while maximizing my 401 plan.. The one you have to take into consideration are medical and taxes once you retire.
Thank you again for this very good advice. I retired in March 2019. I planned for it, and now things are going as planned. My wife and I did most things right.
We’ll done Darell!
Took my SS at age 62. By doing so I was able to keep my retirement funds in my IRA fully invested and in position to take full advantage of the great 2009-2021 growth in the market which I would not have been able to do as effectively if I had to draw down my IRA over the last 12 years. So, for me taking SS early was actually a good investment because the market paid handsomely during those years for my IRA and I came out well ahead. I realize that my strategy would not work for everyone, I am just pointing out a different perspective on when to take SS.
Thank you. Good SANE advice. Beware of internet scammers. I.E. computer service groups that promise to clean your computer and speedup functioning! These groups are generally foreign but not always. Lost 10K. watch out for 'TEAM VIEWER" program to be installed on your pc.
Took me months to remedy this and restructure my financial life for what it's worth!
Oh no! I hope you got your money back!
$ flushed down the drain labeled "stupidity."
My mom worked all her life and she did a lot of charity work helping new immigrants in the church. So we gave them housing, food, clothing, etc. till they got on their feet. When she went to retire someone else was working with her social security number and she was denied her benefits. She died without receiving her Social Security. I recommend take your money while you can - tomorrow is not promised to anyone.
How is it possible? Stolen identity?
Your advice is right on. 👍
Thanks Greg!
We should all be self employed, you would be surprised how much it teaches you about taxes
Most of this info is common sense. Hopefully people understand these things long before retirement. Helpful info for those that need support.
Thanks Joe
Advice #1 is so true. Breoke my heart to see neighbor son living in basement until 52. Mom and Dad died and he now has no skills, or money, to have a good life. Needed tough love.
My mom definitely got the spendees. It was so scary! Now, she's close to 80, is disabled, and is having to work again, doing work she can't physically do well. I've tried to help, but she won't take the help I can give, but wants control over my life and finances or "I'm not a good daughter." So I stay away and send her disposable masks through Amazon. When I'm there visiting, I do a lot of cooking in advance and freezing individual meals. But I'm not there often, living several States away.
Good content. Well delivered. "Just the facts ma'am . . . ". Good man. Keep sharing. Thank you.
Nice videos. Do you have a video on a reverse mortgage? Like the one that Tom Selleck is pushing on TV?
Great video Jeff…Thank you sir!
I love how this works sometimes. I'm talking about perfect timing for information that I will need or need currently. I'll be 60 in March. I've been studying social security for a few years.
While I'm collecting social security disability now, at 62 I should have enough credits to possibly almost double my income since ssdi is so low. My other option which I think I'll use is my x husband I was married to for 17 years. Overall he had the most consistent higher I. One (but I had the better jobs )with professionals in the medical fieldpaid holidays and paid vacations, sick/flex days.
I'll look forward to gathering All the information I can this year. The book club is perfect, too. You'd think covid would have been a dreamy book fest for me too. But I can't concentrate. So this will give me some badly needed
Structure.
super grateful for this kind of advice
Love your videos!
Thanks for a very informative video without the distracting background music.
Good info! I'm gonna roll the dice & hope for the best by keeping most of my $ in stocks up until retirement. Either gonna work out great or I'll have to tighten my belt until it comes back!🤷♂️
Thanks for another informative video!
You bet!
Great advice.
Thanks for your support Barbara.
im far away from retirement, but can't wait to get the spendies in my midlife crisis time
I always enjoy your advice and recommendations. You would be a good man to have a few pints and burger with , I'm sure I would walk away a wiser man.
I would buy Mr Schmidt a top notch meal here in Chicago.
Your example of break even is for gross disbursements. What is the actual break even when applying time value of money?
Very helpful!
Fortunately I've NOT made any of these mistakes.
Nice work! Keep going!
@@HolySchmidt Count on it my friend!
Good word as always, thx for the vid
Thanks for the nice comment William.
Hello, Geoff. Love your videos! Please keeps them coming. Can you do a video or refer me to an article highlighting the pros & cons of consolidating my 401K accounts? Thanks!
Thanks so much. You're awesome 👌
Thank you Debbie!
My town is small. We had an elderly man
Drive up and down the Main Street all day long.
Then We had the February 14th freeze here in
Texas. He died from the cold. He had
$150,000 in his house in cash
Good points, great list.
Thanks Mark.
No trading... Great advice!!! I watched my father...every visit.. Literally looking over his shoulder... Red red red... He lost 40 large in one quarter.. I seriously wanted to sell all his equities... Could have done it with a click... I had no right!!! He left his three sons a house... 30 percent went to the lawyers.... Took a year for probate... I tried for years to convince him to deed the house to my brother... Folks deed your property to a trusted person if you have one... If you don't have one.. You probably screwed up your life anyway!!!!!
I didn't get the point about "calibration year". It maybe had something to do with spending in the first year of retirement and taxes?
Hi that just means that the first year in retirement your expenses and income will be different, so take the year to understand (calibrate) your spending and proceed with caution and don’t spend too much even if you want to.
That makes sense. Thank you!
Decision about social security and collecting shouldn't be about time or money. At least not 100%, just because I don't collected 62 doesn't mean I can't retire at 62 or even earlier.
Sweet home Chicago!
The trick is to always tell people and family you’re struggling to get by no matter how well you’re doing. This will keep them from thinking you have money and asking for it or borrowing. And of course never talk about finances or details.
Great info as always
I delayed taking Social Security because my pension has a Social Security off set. I am waiting to my government stated retirement age of 66 and 4 months, which at that point my employer will reduce pension by the off set. I hope I am doing the right thing.
it sounds like it!
Very good
Thanks very much.
Nailed it.
Thank you v much!
If you take it, do not need it, and make more investing it, you are right to take it. This is normal for people who were not stupid.
Interesting… you may want to watch my video on this…
Should You Take Social Security at Age 62 and Invest it? ruclips.net/video/8Do6edWYRH0/видео.html
#7 -- When I pull money out of my IRA they always ask me if I want them to withhold the taxes -- is this uncommon?
Great information always, would love an evaluation of how I am doing as I near retirement.
Thanks Jose, your best bet is to speak to a qualified financial planner. They can help you get ready and set you up for a spending plan. Speak to friends and family to see who they use.
Yes , I have one at Vanguard just wanted to get your thoughts if applicable. Thanks…
Thank you
You bet.
Do you have a video that revolves around the taxes? I will probably be withdrawing from my 401K in a couple of years and I have no idea what I am supposed to do about the taxes, and what is the ideal situation there.
Would also like to know more.
Ditto!
When you take a distribution, there’s an automatic withholding, default 10 or 15% but you can withhold more depending on your estimated income and tax bracket.
Good video, enjoy the inserts of the teenagers and the couple exercising. I am at fault of making more than one mistake. But will not make them again. Thank my three retirements. Military, Federal Government, and SS.
That's a good combination of retirement streams.
MM, The only way to never make a mistake is to never do anything or just die. Everyone makes mistakes, if you learn from the mistake you still accomplished something, some people never learn and they keep repeating the same mistake.
@@Norm475 thanks. Watching you video is a positive reinforcement not to error again.
point number 1 is so true! My father, even in retirement, would help my siblings out (six!) who were actually doing fine, and even buying them expensive vehicles during retirement! I was the only one who never asked for anything, was a single parent and dirt poor enough to feed my kids and not myself. But I ended up helping my parents due to their "generosity"! It all turned out fine, so you know (I never, ever give up), and I told my kids the bible story of the lepers outside a besieged Jerusalem. They were relegated outside the city gates, starving, and one of them said, "why sit we here to die? Let's go to the enemy camp and beg for food." which they did, to find the enemy had fled, leaving everything behind, including a sumptuous feast! So I told my kids, never sit when life gives you a blow. get up! Do not sit to die. EVER! I am happy to say they follow that advice.
Have a plan for how you will use your time. Perpetual Saturday is not a sustainable or fulfilling life style.
Absolutely! Great point William.
And doesn't seem to be good for you, mentally or physically .
We purchased a second home in FL, as a family home. Our beautiful daughters lost it. The oldest one just disowned us and our youngest got a bit miserable with us. Prior to this our girls have always been wonderful. Never in a million years did we expect this reaction. I'm guessing the oldest got a case of self pity and the youngest just doesn't know how to handle the personality switch. No clue... 🤷♂️🤷♀️
seriously? so they were counting on the $$$ you were going to leave them. I am so sorry! I had a sister steal about 50k from me, but well, she is still my sister. (money I can replace eventually...family, I cannot.) Maybe point out that real estate tends to go up in value, and if they use those proceeds for a new real estate deal (at this point), tax free. Till their kids sell and break the cycle, lol. And so you know, especially as we grew older, my sister and I ended up the best of friends. I attended her funeral about a month ago. So I am glad I took that attitude. Best wishes!
If you were my parents, I would be happy for you! Not to mention I would have a place to vacation in the winter time. Good luck!
@@e-spy Totally agree... I will always love my family no matter what... we are all human. You got me on this one... it's like their personalities changed... I wonder if it was just all the stress and isolation of COVID... you got me... 😳 My girls are in the middle of the messy 30's. I definitely am glad I didn't start to hand them substantial sums of $$$... definitely waiting on that one.
GameStop
Question: My husband and I are retired. We've saved money to suppliment our SS income. What dollar amount would you keep in savings? D
Trying to decide if taking monies out of our savings and put in an IRA. Suggestions Holy Schmidt?
Savings, as in a bank account? Verses investing in the market? What is your risk tolerance and do you have a good financial advisor?
Unless you have $1 million plus, I would play it fairly safe.
Stay out of debt!
I've always believed less is more... Thanks Michael.
Giving your money to people who would be better off without it is a huge mistake. Everybody loses.
I get ex spouse SS... Do I have to file income taxes to Uncle Sam ?
Mr. Holy Schmidt.....
Can you tell me HOW MUCH Tax is on 401k When at Age 62....?????
That depends on how much you withdraw.
@@HolySchmidt I am asking for the PERCENTAGE..?? Maybe 40%
Another great video, thanks. Consider doing one on investing - the super trader point was very interesting, and would like to hear more about your thoughts on index funds, stock mutual funds/ETFs, indiv stocks and investing in general.
Noted, thanks Tom
that one was hard for me. I daytraded for 3 years, we did enough to live on and also help a few people. It was an old coworker who called begging for help that got me back into the workforce, lol. However, you MUST pay attention at all times, the work is hard, and one screw up and you lose thousands of dollars! This system is designed for market makers making the money, and you holding the bag. So it isn't recommended!
thanks
You bet