This was very valuable! I definitely appreciate when you offer these retirement strategies. The guidance on where to take the money from and its long term effects is eye-opening. Retirement planning is stressful, especially as you get on the brink of taking the leap. This calm, reasoned, grounded approach was very helpful and I will be reviewing this video often.
i totally agree with you , As the economic crisis keep rising, one needs to have different streams of income, a well detailed diversified investment portfolio in the financial markets is needed to survive, as well as secure a profitable investment future, Thanks so much 😇Dr. Elizabeth Taylor for improving my portfolio
*let me be blunt , venturing into the trading world without the guidance of a professional like Taylor is not usaully profitable ,thats is why i invest big to earn bigger*
He asked this at 59 and in the scenario he was still working and saving beyond that 500,000 until age 65 AND had a wife with additional income. So, the answer is “NO” you can’t retire on 500,000!! The title of the video looped me in, though! For those of us who don’t have double income and don’t want to work anymore, is there a more straightforward video like that for us?
It's simple frankly. It all has very little to do with income, but what your expenses will be. Same old story, at any age in life. Don't overcomplicate things. Be frugal and win -
I'm retired and live off 2,600. a month. My home and everything I have is paid off. I have 150k stashed. I still have the same comfortable standard of living as I had when I was working only better now because I'm not working even though I don't have the income I did. If these people can't have a decent retirement, their expectations are too high! Never forget the difference between needs and wants! It's all about contentment and that doesn't take a lot of money to achieve that!! 2/3rds of this country will never come close to 500k!
Yes, one can. Let's see if you can. Is your house paid off? Do you know what your expenses are? How much will you make in Social Security? Do you have a spouse? How much will she make in Social Security? Do you have a plan as to when you will take and when she will take Social Security? Do you have a pension? Will you work part-time?
700k in a closed end fund will net you 10 to 11.5 % dividend i don't know why these guys never mention closed end funds 60 to 70 k a year before tax and never touch the base
Investing is one of the best ways to achieve financial freedom. For a beginner there are so many challenges you face. It's hard to know how to get started. stock trading has really been a life changer for me.
@@markallen5217 This is a great tip, I just retired and I am considering investing in stocks but I have no idea about stocks to buy or what to assets would the highest yielding potential and so on, Do you have more clues that could help?
@@nadasithewlis6813 I would recommend you reach out to my broker I’m sure she will be of great assistance to you, just search her name online Kyle Holt Karens and check out her website for information concerning her services, then mail her for guidance.
Sometimes we need to get our minds off negativity and just motivate ourselves, If you dwell on your failures you will end up not achieving your dreams, take a chance and try something new.
Guess it depends on the situation- I’ve rented apartments in other parts of the world like Colombia & Thailand, & not only is the real estate a fraction of the States, but the day to day living expenses are as well. You can live a pretty good life over there & if you wanted to, get by comfortably for next to nothing each day.
If you enable SS at 62 I know you get less, but what if you invest the money you get. By the time you are 67, you already have a nice nest egg that is earning interest in a mutual fund. At a moderate growth of 7% starting at 62 out paces the 67 or even 70 year options. But I know what you are going to say, you can't save this money, you are spending it on retirement. However Now I am not pulling as much out of my retirement accounts. So it's the same. Thoughts?
Wow. At 15:45 mark, that was really interesting. What would be the most ideal spread of their situation $500k if they came to you 2 years before they intended to retired. Clear the credit card debt asap before retiring? Focus their investments into work pension because they get a match or max out the Roth
These types of videos are so good because they help people to invest with the end in mind. It drives me nuts when people blindly do things with absolutely no goal in mind. Start at the end goal, then figure out what ya need to do to get there.
Exactly! This video SHOULD have just been- “ focus on your debt and stop the nonsense of owing $” Get debt free ! Then and only then should retirement be considered
I really enjoyed watching this as I am a numbers person. I am 33 and would love to retire in my 50s. I would even be OK working 2 to 3 days a week in my 50s for another decade.
If you have significant credit card debt you are not ready to retire because even if you pay off the debt you haven't corrected the behavior(s) that got you there in the first place. This is a recording.
This always cracks me up. Look at the average retirement account balances for each age group. Most people don't have anywhere near $500k and never will. Of course you can retire on that. I don't care what computer program anyone uses. You control your spending and don't have any debt. My dad retired on $900/mo pension and when he started ss at 62 his pension dropped to $600/mo. My folks got by fine. The average person doesn't make huge money and they're already used to living on little.
True. My dad lives fine solely on his SS check. I give him money every month, but he just saves it and says it's coming back to me after he dies. Sigh. By contrast, I have money and will probably leave my high-tax state in retirement to protect it. But I will still probably spend only as much as he does at his age. It's pitiful I'm afraid to retire with a bunch of money, and he was glad to do it on SS alone.
@@timelston4260 Yeah different generation. All of the"experts" think you need a zillion dollars. It simply isn't true. I live in Illinois which is a high tax state but easy on retirees except for property and sales tax. We're leaving when I retire though because Illinois is actually going to get worse. I'm not wealthy but if I work 4 more years I'll be 62 and should have about $700k. Twenty years ago I would never have dreamed I'd have that much. So I think we'll be fine. No debt.
@@rdr6276 I lived in Chicago for five years. I loved the city, but property taxes and weekly political scandals didn't help keep me there. I'm in Portland, OR, now. It's the highest property tax county, and Oregon doesn't have a sales tax so shifts the burden to high income tax rates, with no breaks for retirees, except it doesn't tax social security income. So, I plan to move to a no income tax state in retirement and reduce my traditional 401k balance through Roth conversions there at low federal rates. Then at age 70 I'll start living off of social security, which in my case will be about $3,300 a month, adjusted for inflation. That's plenty for a 70 year-old. I'll probably have millions after compound interest when I die. No children or spouse, so I guess I"ll be the proverbial rich. uncle who leaves a sizable inheritance to my nieces and nephews. I'll probably put it in a trust so they don't blow it all at once.
Yeah, my parents retired with about $500,000 and a $100,000 house.... and they haven't had to spend any of it because they've been fine with just one Social Security check for income... and they're going to start getting another Social Security check in a few years that will more than double their income. Once your house is paid off and the nest is empty, there isn't that much you need to buy... your house is probably full already anyway, so you don't have room for more stuff even if you wanted to buy it. So expenses are low, especially with everything locked down because everyone is afraid of the flu.
Tried that 20 years back at the time that 500,000 had more than 3 times the purchase power and paid in interest more than twice my expenses....then zero interest rates (to force people to borrow and buy rentier property's from banks)..paid nearly none of My expenses...
5:25 Delay filing for Social Security benefits as long as possible 6:08 Pay off debt 8:01 Withdrawal strategy: Taxable first, then pro-rata from tax-deferred/tax-free 11:21 Account for the phenomenon that retirees spend less as they age 12:35 Move to lower-cost area and/or less expensive dwelling upon retirement 13:00 Move some bond investments to equity investments 14:17 Insist that financial advisors look for more ways to achieve retirement goals 14:35 Save more
If you have 500k in retirement at 65 and you only need 50k a year if you just stick it under the mattress for 5 years that's 250k left at 70. At that point if you delayed SS you would get the max benefit going forward so it would all come down to SS. Given the quoted earnings for both I will guess they would receive 3-4k/month from SS, so they would only need to make up 14k/year on the low end of SS. Plus they would both be at or almost 70 going forward and the go years would be quickly diminishing. I see them coming in for the win with this. The key would be to have a cash/assets strategy in place to weather any market downturns for 2-3 years using cash only.
Yes you can! most people have nothing at 65, 500k is better then nothing. at a 5 or 6% draw thats 30k a yr plus ssi, another 15k or so. thats not bad if you have a paid for house and or paid for car and 3 to 6 mths in savings.
My wife has a card that charges 9.9% per year. Her portfolio made about 20% last month. She is paying off the card gradually, while living off of her portfolio until she goes back to work.
@@RKmndo its still stupid to have credit card debt the difference is 10% which is probably taxable so less then 10% plus its a risk, a GUARANTEE FREE 10 % savings is amazing in a 0% enviroment
500k × 0.03 = 15k 500k × 0.04 = 20k So at 45 with 500k you could live on 15 to 20k a year. Max out Roth IRA, Roth 401k so you have enough contributions to draw on for 5 years. Start a 5 year 401k roll over ladder at 45 and continue until 54. Withdraw from roth roll over contributions from 50 until 59.5. This is a lean fire strategy. Doable but a 45 yo would probably consider it FU money and take higher employment risk to increase cashflow or enjoyment. I think this is a similar amount to what mr money mustache retired on but I don't think it was 401k money.
Crazy to carry and make payments on 25,000 of credit card debt when you have the money to pay it in full. Start collecting social security when you retire. What if you die before you collect. This means you used savings to live on because of no social security. Using less savings means if you die your spouse keeps the savings. No survivorship on social security. This video's advice wouldn't make me feel secure.
lol, this is 3 years old. My 200k house had the same taxes then. Now it's worth 344k, but taxes are 7k a year. Oops. I guess an outlier was more a one sigma. Understood that every situation is different, but taxes on property has exploded everywhere.
I love your videos and content, but I would have anxiety in retirement knowing I was burning through my cash and that I had to die by a certain age to not be broke. I’m not saying it’s wrong or anything, but I would need to live so that I was preserving more principle than these scenarios, OR use your projections where i live to 110 or something so it gives that greater cushion. Thanks for teaching us!
How about something for a single person currently at 59 years old. No house and no debt. A person who will retire with a Texas pension at 62 with $2,200 (gross) a month for life. Have a 403b currently worth $102,000, a Roth IRA worth $79,000, a Charles Schwab Brokerage account (ETFs) currently worth $35,000, and savings worth $17,000. Plan on retiring to South America, or South East Asia where my cost of living with be around $1,800 a month including healthcare. All I owe is my truck payment that I will sell before I board my plane. I plan on putting another $12,000 each into the Schwab and 403b accounts. Claiming Social Security at 65 that I think will add $1,900 to income.
Yes, you need a boat load of money to retire in the US other similar nations... not so in 80% of the rest of the world. I am an 80yo retired mechanical engineer. I moved to a wonderful Mayan village on Lake Atitan... I live very well on $500/mo... thats 1/3 of my social security. Medical care here is superb and costs less than a fourth of what what JUST the medicare copay is. Thinking out of this USA box is the solution... and all that talk by the US State Dept about how dangerous it is anywhere but the USA... its bs to put it politely.
@@LG123ABC That is true Lyle, and it is a valid point that you make. However back in 1974 the IRS sent a couple of morons with heaters out to my place to seize the tools of my trade (that is prohibited by the IRS code by the way)... all this as I had a case pending in their own IRS tax court , trial dated just a few weeks hence. They attacking me illegally and ignoring the trial set in their own court. (my case was that no capitol gains tax was due on real estate that had not risen in actual value... a case that the IRS desperately wanted to stiffle). Now after destroying the US economy with ruinous taxation on the middle class, we have helicopter money ...sent to a population of 32% drug addicts and drunks). That will render the USD deleted of its world reserve currency status... an actual disaster. What do I think of these people? I was not protected by the US laws, or constitution (I was by the US marshals service though covertly and at their own risk, bless their hearts). Back to the standoff that ensued...short story short and edited of course for this venue. the cowards lost on the street in front of my house, then they lost in US federal court... So in the end I was protected but it did take a lot of high-risk high adrenalin doing.... dozens of other law-abiding US citizens were not so lucky, as their doors were kicked in at 4 am and they were ruthlessly taken out with a few dozen rounds to themselves and loved ones.. These cases did get some valid publicity but were stifled quickly. The Scott case (not me) in the Malibu area of coastal California, because the state wanted the land bolstered by a potted MJ plant hanging in their front yard (MJ is not a capitol offense). Mr Scott ended up with his guts and brains spattered all of his wife and child. Similarly at Ruby Ridge, and with Karen Silkwood at Kerr Mcgee (see the movie Silkwood). My cousin was a deputy at Ruby ridge, and I came to know Karen's father. The fed govt lost both cases in federal court and paid millions for the privilege of murdering completely honorable citizens... Jerry Spence Atty defended the citizen at ruby ridge, a book he wrote with reading. I am 80 now, I have a few short years left, I did my part, now I need to rest ipeacefully my last few years. I was both impressed with deeply saddened by US govt protections.... since then we have lost many more. Here the natives know better at least.. as illegal syphilis experiments were done on unsuspecting men in order to monitor how the disease spread to the wifes and children and how they died suffered blindness and brain damage... with lies and no medical care provided, we wanted to see how long child with syphillis and brain damage would live. (the US govt under Clinton applogized to the people of Guatemala for that world class bit of bit of depravity... it is on the record, google it.) Myself, personally, I was not impressed to say the least. Only the scum of the earth does that to other humans. I consulted the Hanford nuclear weapons site in the early 90's... and discovered their plutonium oxide experiments. (search Hanford downwinders) . tons of deadly PuO were released out the stack of the Pu finishing plant in order to see how many people down wind of the site would contract cancer Northern Nevada mostly). (I testified about parallel issues before the US congress in 1994/95.. with massive repercussions on myself, then a year later massive repercussions on the site (they had to post all of their ruthlessly insane behavior in a public display on site for a year, and Westinghouse Hanford lost its 5B a year contract run the site, Mister Dugan, their lead attorney is no longer laughing. In the end truth prevails and the scum self destructs. ... now after more crap (their term for radioactive contamination) the entire 500 square mile site is being torn down and remediated... it will take 90 years, and cost several trillions of dollars... every bit of it avoidable. Dozens of people who tried to prevent the damage had their lives ruined. No protection for them... or the people at wounded knee. Yellow hair was the scum of the earth as well. So telling me about our great privilege is accurate but where the rubber actually meets highway 39.. or 37 headed south to Laredo... or I-80 through Elko ... misses the point. That b*llet hole in Karen Silkwood's head, now white washed will never be forgotten. I will take my chances with more honorable people. Philp Scott, mech engr. at Hanford, and West Valley NY, and Livermore National Radiation labs, Boeing military aircraft (wichita), and some others I have forgotten. It is time now to live with real people.
I would also love to see more of these examples with the software. More info about strategies for what type of account I should pull my money from first. My belief of no debt and a paid-off mortgage is the way to go into retirement. I will admit that I have drunk the Dave Ramsey cool-aid many years ago.
@@Nick-xf8pn Not necessarily true. If someone aged 45 had been working full time since age 18 they would have 27 years of paying into the system. Social Security is based off 35 years of working. Retiring at 45 in this case would reduce their benefits that they would receive at full retirement age but by no means would their payments be "nearly nothing". Using the benefit calculator at the SSA website somebody retired at 45 who started working at 18 and their last recorded salary was $60,000 will have an estimated benefit of $1,444 at age 67 or $1,791 if they wait until age 70.
Yes, you can retire on 500,000. By the time you reach retirement age. Your house should be paid for, and no other debt. Add social security to monthly payments from retirement and you should be fine.
"your house should be paid for" You should have said "IF your house is paid for" Most people, even at retirement, haven't paid for their house because most people keep upgrading their house throughout their lives. They never get ahead. They keep starting that 30 year loan over and over again.
Not likely, when pulling OI of 50 k/yr his tax bracket would unlikely benefit from Roth conversions. Really a wash when compared to their current income.
If they get a 30-year mortgage at age 45 at 2.85% and are getting 8% stock market returns, it makes sense to carry the mortgage into retirement. Plus, every year of inflation makes the adjusted cost of that debt even relatively less.
@@timelston4260 No it doesn't. You have to account for RISK. Paying off the mortgage is a GUARANTEED return. Plus, who the hell wants a mortgage hanging around their neck when they're trying to enjoy retirement?
Seems like sprinkling in your Roth every year to lower your tax base makes the most sense? Have your withdraw number say $70,000, then use whatever in Roth that gets you down to a lower tax bracket like say $15,000. That way you have a $55,000 tax bracket not $70,000 Btw, I do not currently know the tax brackets so please don’t comment how my numbers are incorrect. It’s just a hypothetical example
I have my mortgage paid off (12 years ago) and am less than one year from retirement. I will receive a pension and social security as well as wife's 401K and social security (about 75K/year total). I need to know how aggressive I should be with our 401K stock/bond ratios given the other sources of income. Am planning to split 50/50 Vanguard Wellesley/Wellington. Not aggressive enough? Too aggressive?
I have both Wellesley and Wellington in my portfolio. A 50/50 split would give you a 50/50 stocks to Bonds. Depending on how much you need from your portfolio I may lean one way or the other. More in Wellington would give you more stocks. More in Wellesley would give you more bonds. I’m doing 60/40 Wellington/Wellesley.
Adding $100/month to your credit card payments doesn't magically come out of thin air. If you pretend it does, of course the plan improves. That's not to say that paying down a high rate debt sooner wouldn't improve their situation, but still WTF are they doing with a high-rate debt that close to retirement? And why don't they just pay off most of it with all that cash?
As a retired mathematician and software engineer, I'm disappointed at what is considered to be "good" financial planning software. Yes, a current and proposed strategy is a way to manually apply and visualize a set of changes, but it's up to you as the user or financial planner to suggest those strategies. The software should be trying out all of these cases for you and presenting you with optimal strategies. Yes, there are many combinations of choices, but that's what computers are good at.
How do you go from $100K combined to $55K in retirement comfortably? Easy! Lose the mortgage, have no debt, move to a low property tax, no income tax state, stop eating dinner out, switch to lunch out, cheaper and healthier, save hundreds every month on lower gas, toll and insurance with no commuting. And with less than $200K saved, living large!
@M T I can't predict the future, but I have learned to trust Him who holds it in his hands. I have no control over the crooks in government, my vote doesn't count. My mom lived through the great depression with her sisters, it taught them to be thankful and happy even in times of want. I have been worried about the national debt since Carter was president. As I said, that has not helped. I have no debt and I try to help those who do.
Looks like the wife and I can give up work in 4 to 5 years (maybe earlier although we will not) just on out investment in Tesla, 19X on the original investment.
why collect at 62, just wait until full retirement age 67, this way your wife will collect half of your full amount, when she retires. If i was you, I would draw $70k until you collect at 67, then you reduce your drawing to $60k, this way your balance will help you carry on longer, makes sense?
I bought Nvidia at $17/share years ago and it was over $800/share just a couple of days ago. It lost almost 5% today, but I am sure it will recover before the 4:1 split later this month. It’s price target is $1000/share (before split).
Wow i know people that have $200 in their account by the time they retire and owe lot on credit cards. If people who have $500k have 50% i cant imagine how people with $200 are going through
M E What’s wrong with this world? Why must people take people out of context constantly. If you know SSI is income, not spending, then you understand the question. They want 50k of spendable income per year. If their SSI provides say 1,500/month, that would be 18k/year, leaving the 500k to provide 32k per year which could easily be achieved at a 6% growth of 500k. SPHD or PEY would not only get you to that number, but would actually grow your money as you lived off the dividend. If you wanted to diversify, high yield bonds like ANGL or REITs like O would also get you there, so long as the 500k is in a Roth IRA, no taxes.
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This was very valuable! I definitely appreciate when you offer these retirement strategies. The guidance on where to take the money from and its long term effects is eye-opening. Retirement planning is stressful, especially as you get on the brink of taking the leap. This calm, reasoned, grounded approach was very helpful and I will be reviewing this video often.
i totally agree with you , As the economic crisis keep rising, one needs to have different streams of income, a well detailed diversified investment portfolio in the financial markets is needed to survive, as well as secure a profitable investment future, Thanks so much 😇Dr. Elizabeth Taylor for improving my portfolio
_it strikes me to see others who trade with LIzzy too, i'm currently on my 5th investment and my folio has increased tremendously_.
have heard so much about the intelligence of Dr. Taylor even watched her lecture once but i have no idea on how to get to her???
*let me be blunt , venturing into the trading world without the guidance of a professional like Taylor is not usaully profitable ,thats is why i invest big to earn bigger*
He asked this at 59 and in the scenario he was still working and saving beyond that 500,000 until age 65 AND had a wife with additional income. So, the answer is “NO” you can’t retire on 500,000!!
The title of the video looped me in, though!
For those of us who don’t have double income and don’t want to work anymore, is there a more straightforward video like that for us?
I have enough Money to retire for the rest of my Life!
I just need to make sure I die by next Friday.
Lol !!!!!!
Yes!! Just retired on Thursday!!
What age?
61
@@scottmason5441 when you kick Social security in 5-6 years you will be 👑. Wishing Good health
Thanks!
Sounds fun. Happy life 😃
Love these type of real-life scenarios. I have spent my adult life accumulating wealth and the thought of spending ANY of it is a scary one.
It's simple frankly. It all has very little to do with income, but what your expenses will be. Same old story, at any age in life. Don't overcomplicate things. Be frugal and win -
I'm retired and live off 2,600. a month. My home and everything I have is paid off. I have 150k stashed. I still have the same comfortable standard of living as I had when I was working only better now because I'm not working even though I don't have the income I did. If these people can't have a decent retirement, their expectations are too high! Never forget the difference between needs and wants! It's all about contentment and that doesn't take a lot of money to achieve that!! 2/3rds of this country will never come close to 500k!
I so agree with this.
Same here, except 3300 a month and >150k stashed. I have led a comfortable life, for all of my 88 years and never made more than 50k a year.
Where do you have your 150k stashed? I'm in a S&P 500 Index fund right now, but I'm worried that it might be too aggressive as I near retirement.
That's why they should move outside of the US and retire. 30 to 40% cheaper in Thailand. Alot easier to accomplish.
And why thrives flock to..!
I want to know if I can retire at 55 with 700k. Thats the video I'm waiting for. Good stuff, thanks.
Yes, one can. Let's see if you can. Is your house paid off? Do you know what your expenses are? How much will you make in Social Security? Do you have a spouse? How much will she make in Social Security? Do you have a plan as to when you will take and when she will take Social Security? Do you have a pension? Will you work part-time?
700k in a closed end fund will net you 10 to 11.5 % dividend i don't know why these guys never mention closed end funds 60 to 70 k a year before tax and never touch the base
The question is not at what age i want to retire it is at what income - George foreman.
My Advice for everyone reading this, Do not simply retire from something rather have something to retire to.
Investing is one of the best ways to achieve financial freedom. For a beginner there are so many challenges you face. It's hard to know how to get started. stock trading has really been a life changer for me.
@@markallen5217
This is a great tip, I just retired and I am considering investing in stocks but I have no idea about stocks to buy or what to assets would the highest yielding potential and so on, Do you have more clues that could help?
@@nadasithewlis6813
I would recommend you reach out to my broker I’m sure she will be of great assistance to you, just search her name online Kyle Holt Karens and check out her website for information concerning her services, then mail her for guidance.
Sometimes we need to get our minds off negativity and just motivate ourselves, If you dwell on your failures you will end up not achieving your dreams, take a chance and try something new.
Guess it depends on the situation- I’ve rented apartments in other parts of the world like Colombia & Thailand, & not only is the real estate a fraction of the States, but the day to day living expenses are as well. You can live a pretty good life over there & if you wanted to, get by comfortably for next to nothing each day.
If $500K is the ONLY asset you have, it will be extremely tight. If you own your home outright and will be getting social security, yes. Not an issue.
25k on 19% credit card? and 5.5% mortgage? terrible
true that
Way worse than terrible
That was my thought...what's up with that debt? Pay it off first, and as fast as you can!
If you enable SS at 62 I know you get less, but what if you invest the money you get. By the time you are 67, you already have a nice nest egg that is earning interest in a mutual fund. At a moderate growth of 7% starting at 62 out paces the 67 or even 70 year options.
But I know what you are going to say, you can't save this money, you are spending it on retirement. However Now I am not pulling as much out of my retirement accounts. So it's the same.
Thoughts?
Wow. At 15:45 mark, that was really interesting.
What would be the most ideal spread of their situation $500k if they came to you 2 years before they intended to retired. Clear the credit card debt asap before retiring?
Focus their investments into work pension because they get a match or max out the Roth
These types of videos are so good because they help people to invest with the end in mind. It drives me nuts when people blindly do things with absolutely no goal in mind. Start at the end goal, then figure out what ya need to do to get there.
19 credit card intrest with 25000 on it!?!? Your just throwing your money in the 🔥
“Credit cards are the cigarettes of the financial world.”
Dave Ramsey
Exactly!
This video SHOULD have just been- “ focus on your debt and stop the nonsense of owing $”
Get debt free !
Then and only then should retirement be considered
Real world examples are an excellent review. Keep them coming...
Live within your means and anything is possible...everyone's situation is unique
I really enjoyed watching this as I am a numbers person. I am 33 and would love to retire in my 50s. I would even be OK working 2 to 3 days a week in my 50s for another decade.
This right here! I would not mind working 2-3 days in my 50’s .
If you have significant credit card debt you are not ready to retire because even if you pay off the debt you haven't corrected the behavior(s) that got you there in the first place. This is a recording.
This always cracks me up. Look at the average retirement account balances for each age group. Most people don't have anywhere near $500k and never will. Of course you can retire on that. I don't care what computer program anyone uses. You control your spending and don't have any debt. My dad retired on $900/mo pension and when he started ss at 62 his pension dropped to $600/mo. My folks got by fine. The average person doesn't make huge money and they're already used to living on little.
True. My dad lives fine solely on his SS check. I give him money every month, but he just saves it and says it's coming back to me after he dies. Sigh. By contrast, I have money and will probably leave my high-tax state in retirement to protect it. But I will still probably spend only as much as he does at his age. It's pitiful I'm afraid to retire with a bunch of money, and he was glad to do it on SS alone.
@@timelston4260 Yeah different generation. All of the"experts" think you need a zillion dollars. It simply isn't true. I live in Illinois which is a high tax state but easy on retirees except for property and sales tax. We're leaving when I retire though because Illinois is actually going to get worse. I'm not wealthy but if I work 4 more years I'll be 62 and should have about $700k. Twenty years ago I would never have dreamed I'd have that much. So I think we'll be fine. No debt.
@@rdr6276 I lived in Chicago for five years. I loved the city, but property taxes and weekly political scandals didn't help keep me there. I'm in Portland, OR, now. It's the highest property tax county, and Oregon doesn't have a sales tax so shifts the burden to high income tax rates, with no breaks for retirees, except it doesn't tax social security income. So, I plan to move to a no income tax state in retirement and reduce my traditional 401k balance through Roth conversions there at low federal rates. Then at age 70 I'll start living off of social security, which in my case will be about $3,300 a month, adjusted for inflation. That's plenty for a 70 year-old. I'll probably have millions after compound interest when I die. No children or spouse, so I guess I"ll be the proverbial rich. uncle who leaves a sizable inheritance to my nieces and nephews. I'll probably put it in a trust so they don't blow it all at once.
Yeah, my parents retired with about $500,000 and a $100,000 house.... and they haven't had to spend any of it because they've been fine with just one Social Security check for income... and they're going to start getting another Social Security check in a few years that will more than double their income.
Once your house is paid off and the nest is empty, there isn't that much you need to buy... your house is probably full already anyway, so you don't have room for more stuff even if you wanted to buy it. So expenses are low, especially with everything locked down because everyone is afraid of the flu.
Tried that 20 years back at the time that 500,000 had more than 3 times the purchase power and paid in interest more than twice my expenses....then zero interest rates (to force people to borrow and buy rentier property's from banks)..paid nearly none of My expenses...
What about SS income? Did i miss it or was it not included?
yep like the deeper dives like that. Getting to the nuts and bolts of it.
5:25 Delay filing for Social Security benefits as long as possible
6:08 Pay off debt
8:01 Withdrawal strategy: Taxable first, then pro-rata from tax-deferred/tax-free
11:21 Account for the phenomenon that retirees spend less as they age
12:35 Move to lower-cost area and/or less expensive dwelling upon retirement
13:00 Move some bond investments to equity investments
14:17 Insist that financial advisors look for more ways to achieve retirement goals
14:35 Save more
Thank you for putting that together
If you have 500k in retirement at 65 and you only need 50k a year if you just stick it under the mattress for 5 years that's 250k left at 70. At that point if you delayed SS you would get the max benefit going forward so it would all come down to SS. Given the quoted earnings for both I will guess they would receive 3-4k/month from SS, so they would only need to make up 14k/year on the low end of SS. Plus they would both be at or almost 70 going forward and the go years would be quickly diminishing. I see them coming in for the win with this.
The key would be to have a cash/assets strategy in place to weather any market downturns for 2-3 years using cash only.
Yes you can! most people have nothing at 65, 500k is better then nothing. at a 5 or 6% draw thats 30k a yr plus ssi, another 15k or so. thats not bad if you have a paid for house and or paid for car and 3 to 6 mths in savings.
The title is misleading. They have considerably more assets than $500,000.
Love RightCapital software!! Great video.
Where do you go to access this Nestegg program?
I don't get people that invest when they have credit card debt
Yeah, in this case they pass up a guaranteed 19% return.
My wife has a card that charges 9.9% per year. Her portfolio made about 20% last month. She is paying off the card gradually, while living off of her portfolio until she goes back to work.
@@RKmndo its still stupid to have credit card debt the difference is 10% which is probably taxable so less then 10% plus its a risk, a GUARANTEE FREE 10 % savings is amazing in a 0% enviroment
@@RKmndo You have to account for RISK. Paying off the card is a GUARANTEED 9.9% return.
Is the website/tool you’re using available to the general public?
a lot of people do it with a lot less, but i'm sure you know that already.
Come onnnnn Jazz Weakth waiting list!!! I got stuff to prove!! Lol.
Yes of course, with Social Security and no debt.
Thanks for the comments.
W.H.A.T.S.A.P.P. +1-3-1-8-4-0-6-1-7-1-4
This is great! I'd love to see one for FIRE. Like someone retiring at 45.
500k × 0.03 = 15k
500k × 0.04 = 20k
So at 45 with 500k you could live on 15 to 20k a year.
Max out Roth IRA, Roth 401k so you have enough contributions to draw on for 5 years. Start a 5 year 401k roll over ladder at 45 and continue until 54. Withdraw from roth roll over contributions from 50 until 59.5.
This is a lean fire strategy. Doable but a 45 yo would probably consider it FU money and take higher employment risk to increase cashflow or enjoyment.
I think this is a similar amount to what mr money mustache retired on but I don't think it was 401k money.
need more like this real world problems need solved
Does nest egg also work for Canadians??
Useful info, my friend!
Nice Presentation 👍
Crazy to carry and make payments on 25,000 of credit card debt when you have the money to pay it in full. Start collecting social security when you retire. What if you die before you collect. This means you used savings to live on because of no social security. Using less savings means if you die your spouse keeps the savings. No survivorship on social security. This video's advice wouldn't make me feel secure.
Their is a Survivor Benefit for SS. One of it's most powerful features. Take it at 70, and take care of your spouse!
Don't forget that the one thing you can't buy is more time and you need to consider your health now and what it's going to be during retirement ;)
Appreciate your review,are you new to crypto or do you experience difficulty in Trading,Text manager now.
+1-3-1-8-4-0-6-1-7-1-4
Great job, dustin, keep it up. There is allot of people learning with your videos.
Im impress!!! I think you’re the financial advisor I am looking for.
Lots of other countries to move to where your Social Security check and a few extra bucks gives you a nice life.
They should definitely refinance too. 5.5% is really high right now.
This was Really helpful, keep doing it
More of these please
Nice video. Do you have a link to the Next Egg Calculator?
lol, this is 3 years old. My 200k house had the same taxes then. Now it's worth 344k, but taxes are 7k a year. Oops. I guess an outlier was more a one sigma. Understood that every situation is different, but taxes on property has exploded everywhere.
I love your videos and content, but I would have anxiety in retirement knowing I was burning through my cash and that I had to die by a certain age to not be broke. I’m not saying it’s wrong or anything, but I would need to live so that I was preserving more principle than these scenarios, OR use your projections where i live to 110 or something so it gives that greater cushion. Thanks for teaching us!
This was great, would love to see more of these examples with that software. Great stuff
What software is this?
@@SeanP2 right capital
@@AK-ky3ou Thank you.
Like the depth. In fact I'd like more depth around the distribution strategy and how to tune your tax bracket.
Yes I really like these videos
How about something for a single person currently at 59 years old. No house and no debt. A person who will retire with a Texas pension at 62 with $2,200 (gross) a month for life. Have a 403b currently worth $102,000, a Roth IRA worth $79,000, a Charles Schwab Brokerage account (ETFs) currently worth $35,000, and savings worth $17,000. Plan on retiring to South America, or South East Asia where my cost of living with be around $1,800 a month including healthcare. All I owe is my truck payment that I will sell before I board my plane. I plan on putting another $12,000 each into the Schwab and 403b accounts. Claiming Social Security at 65 that I think will add $1,900 to income.
Yes, you need a boat load of money to retire in the US other similar nations... not so in 80% of the rest of the world. I am an 80yo retired mechanical engineer. I moved to a wonderful Mayan village on Lake Atitan... I live very well on $500/mo... thats 1/3 of my social security. Medical care here is superb and costs less than a fourth of what what JUST the medicare copay is.
Thinking out of this USA box is the solution... and all that talk by the US State Dept about how dangerous it is anywhere but the USA... its bs to put it politely.
I want to move to Ahmedabad India
Yeah, but you're no longer protected by the US Constitution. Good luck!
@@LG123ABC very true.
I love India
But it’s a whole other world
@@LG123ABC That is true Lyle, and it is a valid point that you make. However back in 1974 the IRS sent a couple of morons with heaters out to my place to seize the tools of my trade (that is prohibited by the IRS code by the way)... all this as I had a case pending in their own IRS tax court , trial dated just a few weeks hence.
They attacking me illegally and ignoring the trial set in their own court. (my case was that no capitol gains tax was due on real estate that had not risen in actual value... a case that the IRS desperately wanted to stiffle).
Now after destroying the US economy with ruinous taxation on the middle class, we have helicopter money ...sent to a population of 32% drug addicts and drunks). That will render the USD deleted of its world reserve currency status... an actual disaster.
What do I think of these people?
I was not protected by the US laws, or constitution (I was by the US marshals service though covertly and at their own risk, bless their hearts).
Back to the standoff that ensued...short story short and edited of course for this venue. the cowards lost on the street in front of my house, then they lost in US federal court... So in the end I was protected but it did take a lot of high-risk high adrenalin doing.... dozens of other law-abiding US citizens were not so lucky, as their doors were kicked in at 4 am and they were ruthlessly taken out with a few dozen rounds to themselves and loved ones..
These cases did get some valid publicity but were stifled quickly. The Scott case (not me) in the Malibu area of coastal California, because the state wanted the land bolstered by a potted MJ plant hanging in their front yard (MJ is not a capitol offense). Mr Scott ended up with his guts and brains spattered all of his wife and child.
Similarly at Ruby Ridge, and with Karen Silkwood at Kerr Mcgee (see the movie Silkwood).
My cousin was a deputy at Ruby ridge, and I came to know Karen's father. The fed govt lost both cases in federal court and paid millions for the privilege of murdering completely honorable citizens... Jerry Spence Atty defended the citizen at ruby ridge, a book he wrote with reading.
I am 80 now, I have a few short years left, I did my part, now I need to rest ipeacefully my last few years. I was both impressed with deeply saddened by US govt protections.... since then we have lost many more.
Here the natives know better at least.. as illegal syphilis experiments were done on unsuspecting men in order to monitor how the disease spread to the wifes and children and how they died suffered blindness and brain damage... with lies and no medical care provided, we wanted to see how long child with syphillis and brain damage would live. (the US govt under Clinton applogized to the people of Guatemala for that world class bit of bit of depravity... it is on the record, google it.)
Myself, personally, I was not impressed to say the least. Only the scum of the earth does that to other humans.
I consulted the Hanford nuclear weapons site in the early 90's... and discovered their plutonium oxide experiments. (search Hanford downwinders) .
tons of deadly PuO were released out the stack of the Pu finishing plant in order to see how many people down wind of the site would contract cancer Northern Nevada mostly).
(I testified about parallel issues before the US congress in 1994/95.. with massive repercussions on myself, then a year later massive repercussions on the site (they had to post all of their ruthlessly insane behavior in a public display on site for a year, and Westinghouse Hanford lost its 5B a year contract run the site, Mister Dugan, their lead attorney is no longer laughing.
In the end truth prevails and the scum self destructs.
... now after more crap (their term for radioactive contamination) the entire 500 square mile site is being torn down and remediated... it will take 90 years, and cost several trillions of dollars... every bit of it avoidable. Dozens of people who tried to prevent the damage had their lives ruined. No protection for them... or the people at wounded knee.
Yellow hair was the scum of the earth as well.
So telling me about our great privilege is accurate but where the rubber actually meets highway 39.. or 37 headed south to Laredo... or I-80 through Elko ... misses the point.
That b*llet hole in Karen Silkwood's head, now white washed will never be forgotten.
I will take my chances with more honorable people.
Philp Scott, mech engr. at Hanford, and West Valley NY, and Livermore National Radiation labs, Boeing military aircraft (wichita), and some others I have forgotten. It is time now to live with real people.
Move to Iran...fools here.
Awesome video like always.
Is that calculator you used proprietary? I couldn't find it online.
I would also love to see more of these examples with the software. More info about strategies for what type of account I should pull my money from first. My belief of no debt and a paid-off mortgage is the way to go into retirement. I will admit that I have drunk the Dave Ramsey cool-aid many years ago.
Me too!
I'm 45, if I had 500k i would retire right away, all i need is 20k a year ... and 500k will last me for 25 years
I think he was thinking until Social Security kicks-in to supplement.
@@Nick-xf8pn Not necessarily true. If someone aged 45 had been working full time since age 18 they would have 27 years of paying into the system. Social Security is based off 35 years of working. Retiring at 45 in this case would reduce their benefits that they would receive at full retirement age but by no means would their payments be "nearly nothing". Using the benefit calculator at the SSA website somebody retired at 45 who started working at 18 and their last recorded salary was $60,000 will have an estimated benefit of $1,444 at age 67 or $1,791 if they wait until age 70.
So...what are you going to do at age 70?
@@truepenny2514 They could start taking Social Security at that time.
If it is tax deferral money than the taxes will take a chunk out of this 500K.
What is the name of the software he used?
Thank you for this information
I love these retirement strategies that you do! Keep up the good work.
Yes, you can retire on 500,000. By the time you reach retirement age. Your house should be paid for, and no other debt.
Add social security to monthly payments from retirement and you should be fine.
"your house should be paid for"
You should have said "IF your house is paid for" Most people, even at retirement, haven't paid for their house because most people keep upgrading their house throughout their lives. They never get ahead. They keep starting that 30 year loan over and over again.
Relying on social security (or any government entitlement program) is risky. Look at our long-term fiscal situation and outlook.
Excellent video. Thanks.
Great topic!
Very good information in this video. Maybe do one with roth conversions before or during retirement.
Not likely, when pulling OI of 50 k/yr his tax bracket would unlikely benefit from Roth conversions. Really a wash when compared to their current income.
If it's true that people spend less over time, there should be a program that accounts for that.
what web site are you using here?
I love videos like these Dustin. Great work!
Why do people still have a mortgage in retirement?
If they get a 30-year mortgage at age 45 at 2.85% and are getting 8% stock market returns, it makes sense to carry the mortgage into retirement. Plus, every year of inflation makes the adjusted cost of that debt even relatively less.
I'm divorced at 53. I need to buy a house and start over.
@@timelston4260 No it doesn't. You have to account for RISK. Paying off the mortgage is a GUARANTEED return. Plus, who the hell wants a mortgage hanging around their neck when they're trying to enjoy retirement?
Seems like sprinkling in your Roth every year to lower your tax base makes the most sense?
Have your withdraw number say $70,000, then use whatever in Roth that gets you down to a lower tax bracket like say $15,000.
That way you have a $55,000 tax bracket not $70,000
Btw, I do not currently know the tax brackets so please don’t comment how my numbers are incorrect. It’s just a hypothetical example
Appreciate your review,are you new to crypto or do you experience difficulty in Trading,Text manager now..
Awesome video!
The trouble is the cost of health care.
I have my mortgage paid off (12 years ago) and am less than one year from retirement. I will receive a pension and social security as well as wife's 401K and social security (about 75K/year total). I need to know how aggressive I should be with our 401K stock/bond ratios given the other sources of income. Am planning to split 50/50 Vanguard Wellesley/Wellington. Not aggressive enough? Too aggressive?
I have both Wellesley and Wellington in my portfolio. A 50/50 split would give you a 50/50 stocks to Bonds. Depending on how much you need from your portfolio I may lean one way or the other. More in Wellington would give you more stocks. More in Wellesley would give you more bonds. I’m doing 60/40 Wellington/Wellesley.
What was that app?
That was a great presentation. I would like to see more of this as it really relates to most people that don’t have a lot to save. Thank you
Adding $100/month to your credit card payments doesn't magically come out of thin air. If you pretend it does, of course the plan improves. That's not to say that paying down a high rate debt sooner wouldn't improve their situation, but still WTF are they doing with a high-rate debt that close to retirement? And why don't they just pay off most of it with all that cash?
Good points! That's the beauty of a flexible plan. I don't have to agree with it. Just have to make it work ;)
Why draw down the nest egg Vs Dividend Driven account?
Most people have almost no savings. I am a saver and we are ok. People need to save their whole life.
This was a great one Dustin!
Thanks Jaron!
It depends on where and how you want to retire.
Great content as always! Love the deep dives into retirement planning :)
It depends on the expenses.
This just pushed me into helping more people! :D
As a retired mathematician and software engineer, I'm disappointed at what is considered to be "good" financial planning software. Yes, a current and proposed strategy is a way to manually apply and visualize a set of changes, but it's up to you as the user or financial planner to suggest those strategies. The software should be trying out all of these cases for you and presenting you with optimal strategies. Yes, there are many combinations of choices, but that's what computers are good at.
Nice job.
Of course you can....if you have no debt and invest in some quality preferred stocks. Work a little part time and you should be good.
How do you go from $100K combined to $55K in retirement comfortably? Easy! Lose the mortgage, have no debt, move to a low property tax, no income tax state, stop eating dinner out, switch to lunch out, cheaper and healthier, save hundreds every month on lower gas, toll and insurance with no commuting. And with less than $200K saved, living large!
@M T That is what your emergency fund is for. Live beneath your means and defer gratification.
@M T I can't predict the future, but I have learned to trust Him who holds it in his hands. I have no control over the crooks in government, my vote doesn't count. My mom lived through the great depression with her sisters, it taught them to be thankful and happy even in times of want. I have been worried about the national debt since Carter was president. As I said, that has not helped. I have no debt and I try to help those who do.
Wow!! This was a great video!! Very eye opening!
What will it cost Louis to have JW put this plan into place?
in another country like south east asia ... if you live frugally ...
FinTips are the best
Thanks for watching!
single? yes. just put in vym, 15 k a year spending money. or at&t, 35k a year spending money.
Yes, a fund like VYM would throw off cash *and* grow. Simple but effective; few people can wrap their head around it because it's too simple. @SL
I have 550k including 250 shares of Tesla. Two pensions UPS and Federal Express. I retired at 59. I’m planning on collecting SS at 62
Looks like the wife and I can give up work in 4 to 5 years (maybe earlier although we will not) just on out investment in Tesla, 19X on the original investment.
why collect at 62, just wait until full retirement age 67, this way your wife will collect half of your full amount, when she retires. If i was you, I would draw $70k until you collect at 67, then you reduce your drawing to $60k, this way your balance will help you carry on longer, makes sense?
@@turningpoint4238 when did you invest in Tesla?
@@catchingcrypto8699 two years ago.
I bought Nvidia at $17/share years ago and it was over $800/share just a couple of days ago. It lost almost 5% today, but I am sure it will recover before the 4:1 split later this month. It’s price target is $1000/share (before split).
Just put it all into JEPI or QYLD or combo of both, and roll over and sleep more comfortable at night.
Sounds like a much more thought out plan than this video 😂
I retired with just of half of that 8 years ago.
Will you run out if you reach age 90?
Wow i know people that have $200 in their account by the time they retire and owe lot on credit cards. If people who have $500k have 50% i cant imagine how people with $200 are going through
When you say they are spending 50k a year are you adding the SS to make up part of that 50k?
SS is not spending, it’s income...
M E
What’s wrong with this world?
Why must people take people out of context constantly.
If you know SSI is income, not spending, then you understand the question. They want 50k of spendable income per year.
If their SSI provides say 1,500/month, that would be 18k/year, leaving the 500k to provide 32k per year which could easily be achieved at a 6% growth of 500k. SPHD or PEY would not only get you to that number, but would actually grow your money as you lived off the dividend. If you wanted to diversify, high yield bonds like ANGL or REITs like O would also get you there, so long as the 500k is in a Roth IRA, no taxes.
I can and I will!!