I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@NaufalKnoechel The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
Retiring at 62 may be challenging for someone without a 401(k),, pension, or significant savings, even if they're earning a high income in their later working years. By retiring early, they risk leaving substantial earnings behind for a relatively small Social Security benefit.
Yes, building wealth comes from making smart investments. Having a mentor is really important. It can be tough to find someone experienced, but it’s a wise decision if you're not familiar with the market.
It's crucial to have a well-thought-out strategy and not make impulsive moves based on short-term market fluctuations. Patience and a long-term perspective are key. You should consider a market expert to guide you.
I agree completely. I’m 60 years old, recently retired, with about $1.95 million in non-retirement investments. I have no debt, but not much in my retirement accounts compared to the rest of my portfolio from the past few years. Honestly, you can’t ignore financial advisors, just take the time to find a good one you can trust.
My husband and i just had a relative conversation this morning. This is exactly how we wish to get our finances coordinated ahead of retirement. Can I get access to your advisor?
Diana Casteel Lynch is the coach that guides me, you probably might have come across her before I found her through a Newsweek report. She's quite known in her field, look her up.
In my 50s, I'm focused on investments for retirement. I've heard of people generating substantial passive income, like someone who earned $650K in under a year on a podcast. What's the strategy for such returns?
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
Opting for an inves-tment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 85% since 2023
Lauren Christine Campbell has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend her if you want excellent collaboration.
I think one of the biggest myths is that retiring with $1 million at 60 is a guaranteed comfortable retirement. It’s not that simple-it really depends on your lifestyle, spending habits, and how long you expect to live. I made the mistake of assuming $1 million would be more than enough without really crunching the numbers
Yeah, and another thing people don’t realize is that withdrawing from your savings too quickly can deplete your nest egg. I was all set to retire, only to find out that my spending habits might leave me short if I live into my 90s. I had to rethink my withdrawal strategy, which was way more complicated than I expected.
I thought $1 million would be the ultimate retirement safety net, but then I learned that inflation and healthcare costs can eat into that faster than expected. It’s all about planning for the unexpected and being realistic about your expenses.
I think one of the biggest misconceptions is that $1 million is a one-size-fits-all number for retirement. Sure, it sounds like a lot, but if you’re used to a high-cost lifestyle or have significant medical expenses, it might not stretch as far as you think. I know someone who retired with $1 million and had to drastically cut back their spending after a few years.
That’s why I started working with my CFA, Peter Dewitt Martin. He’s a pro at breaking down these kinds of complexities. He helped me figure out a sustainable withdrawal rate and walked me through strategies to make my savings last longer.
My financial advisor, Peter Dewitt Martin, has helped me navigate this efficiently. He’s a renowned figure in his field, and I recommend researching his name online-you’ll find all his credentials and everything you need. He’s been instrumental in helping me figure out if $1 million is enough for my specific situation.
I've always been fascinated by how top investors achieve millionaire status through their investments. Currently, I'm sitting on $345K from a home sale and I'm torn between investing in stocks or holding out for a better opportunity?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
Many individuals overlook the importance of advisors until their emotions cause them problems. I recall a few summers ago, after my lengthy divorce, I needed support to keep my business going. I searched for licensed advisors and found someone extremely qualified. She helped grow my reserve from $175K to $650K, despite inflation.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Libertad Morente Rosenkranz 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.
I curiously copied and pasted her name on the web, her consulting page came up at once, she seems highly professional and well matched for the job.. thanks for putting this out !
I’m in IT. I don’t mind working. My big fear is that I’ll lose my job and not be able to get another one due to health or ageism. I’m not looking forward to retirement nearly as much as I’m looking forward to not having to live in constant fear.
It happened to my husband at 50, and he never got back in. He tried for several years and eventually changed careers. Our saving grace was investing heavily and living modestly for all the years he was in IT. It would be interesting to see the demographics of IT departments nationwide. I imagine there is a steep drop-off by the early to mid-40s. It might be helpful to begin looking at additional revenue streams you can create via a side hustle. By looking now while you still have income, you create valuable options for the future.
Amazing Q, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
@@SamsonsRhodesas I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...
Quitting may not be the best approach if you ask me. This is where an AI and a licensed adviser comes into the picture. I barely have time to trade myself as my job swallows up most of my time. I could leave you a lead if you need help..
I’m retiring at 55 or 60 no matter what. I hate working everyday!! I just want to walk and hike with my dog and hang out. Don’t need much to make me happy. LOL
@@JvKintheUSA I’ll pay out of pocket for it with the HSA I have going for retirement. With low income I should qualify for decent rates. Not great, but decent.
1million dollars in 401k! I would retire today and live abroad. My parent where able to live decently making 50k a year with 6 kids. Nothing has changed the way of life for the betterment of people, the only constant change is expenses increase without any reason. My utilities didn’t get better, my electricity didn’t improve yet my bills have increased 20% in the last 5 years.
The biggest part of this video (and it is a terrific video) comes at the end when you mention part-time income. You could semi-retire in your late 50s and work part-time until 65, and that allows most of the money to compound since you are using the part-time money on your expenses
Possibly. It depends on your skill set and demand for it in your geographical area. Part-time employment may not be available or employers may shy away from hiring older workers. It's not as simple as it looks on paper.
Healthcare is one of the most unpredictable events and can bankrupt even a well-off person quickly. When my father got Alzheimer's, he needed to have around-the-clock care, eventually needing to go to specialized facilities where the cost was $15K-$22K/mo. The state only kicks in after you exhaust your money and then you get downgraded on service. While it was nice knowing that he was in a nice facility and had expert care, it was also sad that he worked his ass off for decades just to use the money to wither away without getting the chance to enjoy it.
That is a real example of the “smile” he referenced, when we spend big when we first retire and are young. Then we spend big again when we are at the end of life phase.
Why not mention a 72T aka SEPP also? I’m retiring at 54 and will use the Rule of 55. My wife will collect a $70k pension and I receive $15k tax free for VA disability. We’re 47 and calling it quits in 2032. I first learned about a 72T in 1999 from my FIL when they retired in their early 40’s. I wish this stuff was taught because most people just put investing on cruise control and think retirement is in their 60’s. My 401k is currently sitting at $1.43 million and we have about $100k in brokerage and HYSA. We should be good financially as we’re just waiting on the wife’s pension to come one year before I use the Rule of 55.
Your comment made me think about pre-designating a right to end-of-life so my kids can utilize my retirement funds rather than go to a long-term care facility if my mental condition declines like this. I know this is controversial, but it is the decision I should be able to choose for myself ahead of time. The fact that it doesn't exist may be mostly driven by the industry that's profiting.
This is a good watch. I'm in a similar place as the couple you modeled. Currently 54, planning to retire at 60. I am a bit obsessed with the notion. Vanguard's what if tool is not quite as slick as yours but I've been able to do similar things with it. I appreciate that in 15 minutes you were able to walk us through the full range of options.
I appreciate the recent shift you and James made to include references and tips for those of us that are not quite retirement age yet. They are great ideas for us to put to use while we have the time still.
Ari, one other aspect to consider is living abroad in Mexico, Thailand, the Philippines, other Southeast Asian countries, and Poland for the first year or two of retirement. The cost of living in these countries is significantly less than the US, plus travel from these countries is less. That allows a retiree to maybe retire earlier as they are not putting as much pressure on their retirement accounts to support them and their 401k or Roth keep compounding.
“One more year” trap: I liked my job and was at the top of my income, thus, worked until 72. Now I have to switch from saving/investing to spending. This is not as easy as you may think.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@caseycantrell-gh6fg 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.
I retired early at age 50 in 2007. Over the next year and a half, the market dropped over 60%, and I was 100% in the market back then. Ouch! I was too lazy to do anything, which saved me when the market recovered nicely. But at the time, the stress went up a lot.
YOU ARE SOOO MEAN! I had my plan to retire soon, however because of this fact-based video I shall add 24 more months starting today ( Christmas '24 ). I ran the scenario through my spreadsheet and it appears I / We would be in a much more comfortable position with the added benefit of eliminating $ run-out risk. Thank you Ari, Best
Viewers, make sure you are including your health and energy level in your calculations. You may end up working years you wish you had been traveling, then are too old to do all the traveling you wanted to do. There is a meme of an old couple asleep in a gondola. They are too old to fully enjoy their Italian vacation. The "smile" curve he showed is very helpful here.
retired at 62 here and started to buy real estate as soon as I turned 59.5 years old.... used most of my 401K to do that. Five years later I tripled the money and :ve been getting passive monthly income for the rentals.... Best thing I've ever done... BTW I hate the self manage IRA's so I decided to just take the money out and pay taxes which every time I took money out, I paid zero because I deducted the closing costs and it balanced out.
At the end you mentioned bringing in extra income. I definitely think that is something that needs to be a bigger part of a retirement conversation. There are several great opportunities for side hustles. But even in my career, there are opportunities for contracting. Knowing the impact of that Could actually change how much sooner I retire.
Super helpful video, Ari! I've just recently discovered your content and everything you do is helpful. But this video in particular speaks to us directly. Thank you and keep up the great work! Now, I have to share this with my wife!
Very cool! This is the first tool that I've see that really does the more nuanced simulation of the end game. I don't mind working. When I stop with my "day job", I will probably move into teaching or consulting. I really enjoy what I do... I would just look for flexibility on where/how I did it.
Really interesting, it is useful. I am not to where this couple is, sadly, I am 60 and my wife is 56. I am thinking I need to work until 67, maybe 70. My wife is planning to work until 70, but she can freelance and have a flexible work style if she wants. Still pulling it all together. My 401K is w/ Fidelity, and they had a financial advisor call me out of the blue and he felt I could pretty easily retire at 67.
excellent! subscribing and will watch your other videos. i'm just sad that this process has to be so complicated, most of us didn't specialize in this kind of math and i'm feeling resentful that there might be a "wrong" way to ease into my golden years. Thank you.
I’m working still at 65 with just north of 1 mil, i spend about 2k a month all in for all my expenses. When i claim SS that’ll add 3300 a month to my tally. If i remove 10k a year which is what i make in dividends currently. I’ll never run out of money.
This question is about personal priorities. If you are miserable and hate your job, you might be willing to make some compromises to make retirement work with what you have. If you do like your job, then you can simply continue working until the numbers indicate that you are able meet your retirement objectives. This is the most important question, to my mind. Personally, I hate my job and I am literally counting the days (and the dollars) until I can walk away. Given that reality, I am willing to have a more basic retirement, simply to be free of a mentally draining career. You have to understand your own priorities in life in order to make an informed decision about when to retire and into what kind of lifestyle.
very helpful. i'm 63 and looking to retire in Q4 2026. I do have my number and have been planning out when to start collecting SS. i'm still working and making more than enough and i'm pretty sure if i'm forced into retirement, I'm in very good shape.
Constantly interrupting yourself really makes it difficult to follow what you're doing. Just go straight through with whatever the example is -- and then go back and play what ifs.
Love to see a similar video for how youd be advising them if they DID hate their jobs and want to runaway. We spend a lot of time talking to couples like ourselves who hated our jobs and felt trapped/unhappy in the rat race, and for us the very idea of waiting for/hoping for 60 is NOT early retirement! As you point out, theres aleways more work that can be done and money that can be made... but you can never make more time/years. Life is short, go live it while youre young enough to enjoy it FULLY!!
Healthcare is the big wildcard when it comes to early retirement. I'm hoping to retire at 60, but I'm planning to save as much as I can into an HSA (401k input is already maxed out) to hopefully cover the gap between the employer coverage and Medicare.
My situation is somewhat similar to this one except I’ll retire at 55. I might go to 57 if I have to, but I’d be fine selling my million dollar home if push comes to shove. Too many of my friends worked till the day they died. Such a waste. I can live on 5k per month so one of those examples really mirrored my situation. Thanks.
I agree ... just retired at 61 (wife 65) with just a modest portfolio ... looked at mortality statistics for even people of AVERAGE health and there is only a 50% chance both me and wife are alive in 17 years ... my mom who had longevity in her family died at 66 ... take nothing for granted ...
I understand but what if you live?? It’s horrible to run out of money in your mid 80s and you have no prospect of going back to work. $1M is probably not enough if you live a long time
I recently adjusted my Roth IRA to 50% in SCHD, 25% in SCHX, and 25% in SCHG. For my Roth 401k, I went with 70% in Vanguard's S&P 500 Index, 20% in the Vanguard Growth Index, and 10% in the Vanguard International Index. My goal is to grow my $350k to over $1 million within the next three years.
I agree-having an advisor manage my investments has been invaluable since my work schedule doesn't allow time for in-depth analysis.Thankfully, my portfolio has grown fivefold in just four years, reaching nearly $1 million today.
Thanks Ari! Very helpful and gets us excited as we are in a similar situation to your hypothetical but 5 years earlier. Building my brokerage account now, and plan to have very low income at age 60 so that I can do Roth conversions and capture favorable ACA rates for medical.
I retired at 49 with 150k in my 401k. Loving life, house paid for, 2 cars less than 5 years old, ridgeline and crv. My pension is 76k after taxes and on work insurance for 126 a month with a 100k hra to pay for it and dr visits. 3 percent cost of living bonus eacn year. Looking forward to ss for that extra 12k a year to go blow
Good stuff and good presentation. I'm 62 and of course 'looking at things', but like my job. Need to allow for maybe 10k a month for tools and auto restoration work, lol. I'm a finance professional, so I get all the calcs, know how to build financial models, etc, but you've got a slick UI on your scenario set-up. Two thoughts, or ideas. First is the fundamental "inflation risk" issue, which is perhaps more of an issue than nominal portfolio returns. Next idea would be to consider presenting "fan charts", which are shaded outcomes based up some estimated probability distributions on key assumptions. You may have ip% of the work done already to make that happen. Nice work. Hope your business thrives.
Dear Lord, my hubby and I are retired. We live on SS alone, about $4,500 a month. We live extremely well. We travel, enjoy eating out once in awhile (not fond of restaurant food, unless traveling). Our mortgage is paid off as are our 2 vehicles and our Harley. No credit card debt either. If someone is stressing about retirement with $1M in their 401k, they need to consider moving to a more inexpensive area to live, that makes all the difference. We live in SC.
Retiring at any age is predicated on spending. One million managed at 5% plus SS at age 62 is about 75k annually. If debt is paid off and you can downsize adding more to the original amount for a better annual return. This without touching the principal. When you reach a certain age mile stone you can start take more if you like or invest in your kids or grand kids futures.Either way, you're in good shape. Most everyone ends up in medicare so supplemental insurance will be a small manageable cost. If your 22 now, bank on 5 million minimum for retirement. If you're a normal working stiff, you should put away 20% of earnings for retirement. Inflation and taxes eats away at all money in the end. You own nothing. The banks do. That includes the money you saved. Understand that reality and plan accordingly.
I have multiple pensions. First is set for $2k\m, Second is $2.7k/m, Third is $5.7k/m. 401k is NOT included in these numbers and passive income from rental properties is also NOT included. The pensions are NOT taxable by any state per federal law. The pensions last until death. My question is, will this be enough to retire comfortable in for example Italy as an Expatriate?
Say INVEST for retirement ... you can't SAVE for retirement. For most people, saving is just placing a few k in the credit union and that will never make any difference in your total net worth. Now INVESTING is totally another story! Investing in equity mutual funds a few k a year from 30 to 60 will make a GIANT difference.
$1 million in a 401k sounds like a lot until you start doing the math on income taxes. You are paid 6th when you start taking distributions and if you die your heirs will be stuck with a $500k tax bill if you live in a high tax state like CA
I’m 60 and very concerned with what massive government layoffs, tariffs, and labor deportations will do to our stock market. Large tariffs have historically crashed markets and increased inflation. Those promised changes don’t bode well.
My plan is to retire at 60 then have my younger wife continue to work to pay for everything. That should give me time to travel with my girlfriend before I get too old
I am 73, have $1.3M in savings, $4100 in ss income every month and $16,000 per month of income working about 10 hours per week. The only thing that prevents me from retiring is that work is easy, it gives me some purpose and I can spend just about whatever the heck I want to. I admit I was a late bloomer which is another reason I am working. Things did not start really moving upward for me until about age 65. There was a period of time where I thought I was barely going to make it, but better late than never!
I retire at 55, I have a pension (very well funded and protected from the cities greedy fingers) a Roth IRA I can’t contribute to anymore due to reaching this limit and a deferred comp I contribute to. I thought I was VERY well secured for my retirement in 12 years but now after watching this I’m nervous.
The biggest omission here… the very real cost of care when you get old and need to pay for assisted living which can cost $10,000 or more PER MONTH. And it is going up. 10 or 20 years from now, look out! The costs will likely be astronomical. The system in the US needs someone like Musk to figure out a way to get this under control.
Fortunate to have a pension set for myself in my career, but absolutely need to be able to ensure and plan for my wife's financial security if she outlives me (which is highly likely, considering the average life expectancies of our respective families). The current goal is 58.
I'm 57. I have 1.2MM in 401K and 25 years with the company I work for now. I have a pension with this company, I know that is rare now, that will play heavily into my retirement plans. I've worked all of my life in the private sector so I should receive a decent SS payout per month even though I don't plan on working to full retirement age, in my case that is 67. I'm planning to retire no earlier than 62 but most likely will work a couple of years more or possibly to 65. My hard stop is 65. My home is paid for 100%. We do have one car note of $600 that will be paid off by retirement time.
Nice video - my partner and I can't quite agree how we want to retire, so it's less about working v. not working, but do we want to live here until we die? We don't agree. No place is perfect, but I can't see retiring here because there's very little here to help support us as we age. What if I can no longer drive? You get the gist. There's more to retirement than numbers.
Ari - really appreciate this one and the rule of 55 video. What does an early retirement look like for a couple where one has a chronic health condition and a lower life expectancy? Say 60 or 65? I'd love if you could run through things you may tweak for situations like that. For example - if this couples life expectancy was 70 and 80 instead of both living to 90, how does that change your recommendations? Thanks again. -Ryan
Consider delaying the taking of social security ... for the spouse that remains, the social security COLA could make a huge difference ... best wishes for you ...
An important non money related bit of advice I can give from experience is to not retire from something but retire to something. Semi kinda sorta somewhat retired now, technically don't have to work but I want to. Blessed to be working as an independent property adjuster on my terms and at my pace after 30 years on the corporate cram it down your throat insurance company hamster wheel. The hours were long and the pay sucked, but the benefits were very good, including a 48K a year pension starting at 55 and employee health insurance from 55 to 65. Of course that kind of retirement went the way of the dinosaurs, but I hung onto that job for 30 years and it felt at times like they wanted to kill me at the end, and they literally begged me not to retire as I was easily doing the work of 2 people. The funny thing is last year I made more gross independent adjuster consulting income than I did at my former salary job and it was still a much lighter workload that feels like a vacation. The unfunny thing is damn self employment taxes! It is good to have the income from working as life is stupid expensive, but also it is good to have purpose. Not sure how long I will keep doing the part time consulting thing, I figure I'll just ride the pony until it dies and when it does, go on Social Security. 62 now, planning on waiting to 70 as I don't have long term care insurance and the larger SS payment will help with that if I lose my marbles to dementia, which runs in the family. As for 1M being enough, not really, depends on lifestyle and where ya live. I'm on a 48K a year pension since age 55 so it has paid around 360K to date which has greased my financial wheels but no way I'm living off that. Also I have good health insurance for my family provided for around $400 a month. Sure glad I didn't suck that money out of my 401K and don't have to pay a lot more for similar quality health insurance. I joke that I work at consulting to generate income to pay the taxes on incrementally rolling my 401K into my Roth IRA. With America's out of control 36T and growing debt it is a safe bet that taxes aren't going down in the future. I know how blessed I am to have a pension - it is such a shame they went away in the private sector. On the other hand, I didn't leave for higher paying opportunities and suffered years of abuse, so I feel like I earned it. As I said I don't think 1M is enough to retire early and live any kind of life. The upside is if one does reach that level (I managed to and then some, thanks to buying Mastercard at IPO in 2006) if you can leave it alone it grows fast. It's simple compounding math. The more you have the faster it grows, and at some point it gets ridiculous - just ask Elon Musk 😆
I retired at 60 with 50k in the bank. The key is having everything paid for. No bills. I do get a decent pension with health so I’ve got that plus I’ll be getting social security next month
What you spend is ALWAYS the determinant factor. We can jiggle every single possibility around and always come back to spending in order to have a successful outcome. If your income needs are $2k per month, and your SS is $2k per month, you don't need much saved for retirement to make the math work out. Software is awesome and something that didn't exist when I started saving for retirement. I used, and still use, software to analyze my retirement funding, but I also realize that it's up to me to make adjustments as needed. Spending is never static, so we can adjust as needed. Having more assets gives you more flexibility. If 100% of your income needs are for necessities, then you have no wiggle room. Only 30-40% of our income "needs" are actually necessary expenses like food, taxes, utilities, etc. The rest is discretionary. In 2022, markets were down, so we reduced our spending. In 2023 and 2024, we have had good markets, so we bought a new truck and plan to buy a new boat in December, as well as do a small remodel. I expect our income to follow the smile. I'm probably not hiking New Mexico when I'm 80 like I did this past week at 63. Guardrails, smile, go-go, 4% rule, all are strategies that need to be considered in retirement planning, and none of them are perfect. Good job being the mean guy.
I stumbled upon this and very good information. Appropriate since I'm in a similar situation as your example. In the end, nothing is known or guaranteed except death and taxes so it's hard to plan but there has to be a plan and adapt as needed. I appreciate the information. Where can we get software to use like that to provide different scenarios?
This is one of the most helpful, well-presented informational videos I've ever watched on RUclips. Absolutely remarkable in every way. GREATLY appreciated. I have subscribed and will tune in for more. Thank you!
Yes... Even a small pension helps offset what you take out of your 401k. Cash helps get you through a market downturn. If you can have a few years of income in cash, you're going to be fine.
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I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@NaufalKnoechel That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@@EliaszPass My advisor is *MARGARET MOLLI ALVEY*
You can look her up online
@@NaufalKnoechel The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?
Retiring at 62 may be challenging for someone without a 401(k),, pension, or significant savings, even if they're earning a high income in their later working years. By retiring early, they risk leaving substantial earnings behind for a relatively small Social Security benefit.
Yes, building wealth comes from making smart investments. Having a mentor is really important. It can be tough to find someone experienced, but it’s a wise decision if you're not familiar with the market.
It's crucial to have a well-thought-out strategy and not make impulsive moves based on short-term market fluctuations. Patience and a long-term perspective are key. You should consider a market expert to guide you.
I agree completely. I’m 60 years old, recently retired, with about $1.95 million in non-retirement investments. I have no debt, but not much in my retirement accounts compared to the rest of my portfolio from the past few years. Honestly, you can’t ignore financial advisors, just take the time to find a good one you can trust.
My husband and i just had a relative conversation this morning. This is exactly how we wish to get our finances coordinated ahead of retirement. Can I get access to your advisor?
Diana Casteel Lynch is the coach that guides me, you probably might have come across her before I found her through a Newsweek report. She's quite known in her field, look her up.
In my 50s, I'm focused on investments for retirement. I've heard of people generating substantial passive income, like someone who earned $650K in under a year on a podcast. What's the strategy for such returns?
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
Opting for an inves-tment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 85% since 2023
I've been looking to get one, but have been kind of relaxed about it. Could you recommend your advis0r? I'll be happy to use some help.
Lauren Christine Campbell has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend her if you want excellent collaboration.
Wow, her track record looks really good from what I found online. I'll take a chance and see how it goes. Thanks for the info
I think one of the biggest myths is that retiring with $1 million at 60 is a guaranteed comfortable retirement. It’s not that simple-it really depends on your lifestyle, spending habits, and how long you expect to live. I made the mistake of assuming $1 million would be more than enough without really crunching the numbers
Yeah, and another thing people don’t realize is that withdrawing from your savings too quickly can deplete your nest egg. I was all set to retire, only to find out that my spending habits might leave me short if I live into my 90s. I had to rethink my withdrawal strategy, which was way more complicated than I expected.
I thought $1 million would be the ultimate retirement safety net, but then I learned that inflation and healthcare costs can eat into that faster than expected. It’s all about planning for the unexpected and being realistic about your expenses.
I think one of the biggest misconceptions is that $1 million is a one-size-fits-all number for retirement. Sure, it sounds like a lot, but if you’re used to a high-cost lifestyle or have significant medical expenses, it might not stretch as far as you think. I know someone who retired with $1 million and had to drastically cut back their spending after a few years.
That’s why I started working with my CFA, Peter Dewitt Martin. He’s a pro at breaking down these kinds of complexities. He helped me figure out a sustainable withdrawal rate and walked me through strategies to make my savings last longer.
My financial advisor, Peter Dewitt Martin, has helped me navigate this efficiently. He’s a renowned figure in his field, and I recommend researching his name online-you’ll find all his credentials and everything you need. He’s been instrumental in helping me figure out if $1 million is enough for my specific situation.
I've always been fascinated by how top investors achieve millionaire status through their investments. Currently, I'm sitting on $345K from a home sale and I'm torn between investing in stocks or holding out for a better opportunity?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
Many individuals overlook the importance of advisors until their emotions cause them problems. I recall a few summers ago, after my lengthy divorce, I needed support to keep my business going. I searched for licensed advisors and found someone extremely qualified. She helped grow my reserve from $175K to $650K, despite inflation.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Libertad Morente Rosenkranz 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.
I curiously copied and pasted her name on the web, her consulting page came up at once, she seems highly professional and well matched for the job.. thanks for putting this out !
I’m in IT. I don’t mind working. My big fear is that I’ll lose my job and not be able to get another one due to health or ageism. I’m not looking forward to retirement nearly as much as I’m looking forward to not having to live in constant fear.
mid 40s here. What you describe happened to me and I was pushed into a new career field
Save hard. Be frugal. You'll be fine.
There are lots of us in that same situation. Invest/save, get rid of debt, and prepare. Not much else any of us can do.
I’m in exactly this situation ay 53. IT. Constant fear of getting let go in one of the endless layoffs. I doubt I’d get rehired at my age in IT.
It happened to my husband at 50, and he never got back in. He tried for several years and eventually changed careers. Our saving grace was investing heavily and living modestly for all the years he was in IT. It would be interesting to see the demographics of IT departments nationwide. I imagine there is a steep drop-off by the early to mid-40s. It might be helpful to begin looking at additional revenue streams you can create via a side hustle. By looking now while you still have income, you create valuable options for the future.
How much income will 100k generate? anybody with investment experience.
Amazing Q, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
@@SamsonsRhodesas I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...
Quitting may not be the best approach if you ask me. This is where an AI and a licensed adviser comes into the picture. I barely have time to trade myself as my job swallows up most of my time. I could leave you a lead if you need help..
@@SamsonsRhodesas Oh please I’d love that. Thanks!
Anywhere between $1500 to $25000 a year…the higher the earnings the more at risk your initial investment of $100k has to erode. Not financial advise…
I’m retiring at 55 or 60 no matter what. I hate working everyday!! I just want to walk and hike with my dog and hang out. Don’t need much to make me happy. LOL
How long you think your dog is gonna live?
What about health insurance?
@@JvKintheUSA I’ll pay out of pocket for it with the HSA I have going for retirement. With low income I should qualify for decent rates. Not great, but decent.
@@WeBeatMedicare6969 how long does a dog live? I don’t understand the question.
Big difference between 55 and 60…
1million dollars in 401k! I would retire today and live abroad. My parent where able to live decently making 50k a year with 6 kids.
Nothing has changed the way of life for the betterment of people, the only constant change is expenses increase without any reason. My utilities didn’t get better, my electricity didn’t improve yet my bills have increased 20% in the last 5 years.
The biggest part of this video (and it is a terrific video) comes at the end when you mention part-time income. You could semi-retire in your late 50s and work part-time until 65, and that allows most of the money to compound since you are using the part-time money on your expenses
Possibly. It depends on your skill set and demand for it in your geographical area. Part-time employment may not be available or employers may shy away from hiring older workers. It's not as simple as it looks on paper.
I like these videos with a more realistic balance. Most people don't have 3 + million dollars and if they do, they probably don't need your help.
Healthcare is one of the most unpredictable events and can bankrupt even a well-off person quickly. When my father got Alzheimer's, he needed to have around-the-clock care, eventually needing to go to specialized facilities where the cost was $15K-$22K/mo. The state only kicks in after you exhaust your money and then you get downgraded on service. While it was nice knowing that he was in a nice facility and had expert care, it was also sad that he worked his ass off for decades just to use the money to wither away without getting the chance to enjoy it.
But it took care of him, as sad as that sounds. ❤
That is a real example of the “smile” he referenced, when we spend big when we first retire and are young. Then we spend big again when we are at the end of life phase.
@@raxxy1128 And he worked his ass off for my mom and us as well and we will appreciate that forever.
Why not mention a 72T aka SEPP also?
I’m retiring at 54 and will use the Rule of 55. My wife will collect a $70k pension and I receive $15k tax free for VA disability. We’re 47 and calling it quits in 2032. I first learned about a 72T in 1999 from my FIL when they retired in their early 40’s. I wish this stuff was taught because most people just put investing on cruise control and think retirement is in their 60’s.
My 401k is currently sitting at $1.43 million and we have about $100k in brokerage and HYSA. We should be good financially as we’re just waiting on the wife’s pension to come one year before I use the Rule of 55.
Your comment made me think about pre-designating a right to end-of-life so my kids can utilize my retirement funds rather than go to a long-term care facility if my mental condition declines like this. I know this is controversial, but it is the decision I should be able to choose for myself ahead of time. The fact that it doesn't exist may be mostly driven by the industry that's profiting.
This is a good watch.
I'm in a similar place as the couple you modeled. Currently 54, planning to retire at 60. I am a bit obsessed with the notion. Vanguard's what if tool is not quite as slick as yours but I've been able to do similar things with it.
I appreciate that in 15 minutes you were able to walk us through the full range of options.
You’re so welcome!
I appreciate the recent shift you and James made to include references and tips for those of us that are not quite retirement age yet. They are great ideas for us to put to use while we have the time still.
Our pleasure!
Ari, one other aspect to consider is living abroad in Mexico, Thailand, the Philippines, other Southeast Asian countries, and Poland for the first year or two of retirement. The cost of living in these countries is significantly less than the US, plus travel from these countries is less. That allows a retiree to maybe retire earlier as they are not putting as much pressure on their retirement accounts to support them and their 401k or Roth keep compounding.
Lol
“One more year” trap:
I liked my job and was at the top of my income, thus, worked until 72. Now I have to switch from saving/investing to spending. This is not as easy as you may think.
I’ll put you in touch with my ex-wife. She’ll get that switch to spending figured out for you real fast.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@caseycantrell-gh6fgOh I would love that. thank you.
Lookup with her name on the webpage.
@@caseycantrell-gh6fg 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.
@GeorgestraitStriat You are welcome.
A youngster that has very good practical retirement advice. Good job. Thanks.
Cheers.
These case studies are very helpful, Ari!!
Glad you found these case studies helpful. Make sure to watch other case studies on my channel. A subscription would be appreciated!
Won't be making it to 90 or even 80 for that matter, so looks like spending won't be an issue. Thanks for showing this.
@@fwiler my pleasure
I retired early at age 50 in 2007. Over the next year and a half, the market dropped over 60%, and I was 100% in the market back then. Ouch! I was too lazy to do anything, which saved me when the market recovered nicely. But at the time, the stress went up a lot.
YOU ARE SOOO MEAN! I had my plan to retire soon, however because of this fact-based video I shall add 24 more months starting today ( Christmas '24 ). I ran the scenario through my spreadsheet and it appears I / We would be in a much more comfortable position with the added benefit of eliminating $ run-out risk. Thank you Ari, Best
This case study is very similar to my situation so it is very helpful. Also purchased the academy which is awesome. Thank you
Awesome!
Viewers, make sure you are including your health and energy level in your calculations. You may end up working years you wish you had been traveling, then are too old to do all the traveling you wanted to do. There is a meme of an old couple asleep in a gondola. They are too old to fully enjoy their Italian vacation. The "smile" curve he showed is very helpful here.
Well said. Thank you for emphasizing.
retired at 62 here and started to buy real estate as soon as I turned 59.5 years old.... used most of my 401K to do that. Five years later I tripled the money and :ve been getting passive monthly income for the rentals.... Best thing I've ever done... BTW I hate the self manage IRA's so I decided to just take the money out and pay taxes which every time I took money out, I paid zero because I deducted the closing costs and it balanced out.
At the end you mentioned bringing in extra income. I definitely think that is something that needs to be a bigger part of a retirement conversation. There are several great opportunities for side hustles. But even in my career, there are opportunities for contracting. Knowing the impact of that Could actually change how much sooner I retire.
Super helpful video, Ari! I've just recently discovered your content and everything you do is helpful. But this video in particular speaks to us directly. Thank you and keep up the great work! Now, I have to share this with my wife!
Awesome and you’re so welcome!! Happy to hear it
If I had my house paid off and cars, trips and healthcare are in a separate category, I have no clue what I would spend $6K on.
Very cool! This is the first tool that I've see that really does the more nuanced simulation of the end game. I don't mind working. When I stop with my "day job", I will probably move into teaching or consulting. I really enjoy what I do... I would just look for flexibility on where/how I did it.
They are sitting pretty good. Great video. I think health care and inflation is the hardest variable to calculate.
Really interesting, it is useful. I am not to where this couple is, sadly, I am 60 and my wife is 56. I am thinking I need to work until 67, maybe 70. My wife is planning to work until 70, but she can freelance and have a flexible work style if she wants. Still pulling it all together. My 401K is w/ Fidelity, and they had a financial advisor call me out of the blue and he felt I could pretty easily retire at 67.
excellent! subscribing and will watch your other videos. i'm just sad that this process has to be so complicated, most of us didn't specialize in this kind of math and i'm feeling resentful that there might be a "wrong" way to ease into my golden years. Thank you.
You’re welcome. Education is key!
Life is short. We were saving up for trips when I retired and my wife passed away 2 yrs before retirement. So much for that.
@@timsmith4519 so sorry.
Not if you plan to fully retire. But if you work part time and you have SSA income, you can make that work for you.
I retired at 65 with a lot less than a million. Doing just fine.
@@jturie how much do you spend and any other income sources? Pension?
What is your definition of "fine?"
@@RobDTomexactly
I’m working still at 65 with just north of 1 mil, i spend about 2k a month all in for all my expenses. When i claim SS that’ll add 3300 a month to my tally. If i remove 10k a year which is what i make in dividends currently. I’ll never run out of money.
@@RobDTom Live the life he wants and not worry about running out of money.
Thanks. I appreciate extra information on out-of-pocket costs for medical insurance before and after Medicare.
I like these examples. Can you do more of these scenarios? It’s nice to see what other people are thinking about. Thank you
Yes
This question is about personal priorities. If you are miserable and hate your job, you might be willing to make some compromises to make retirement work with what you have. If you do like your job, then you can simply continue working until the numbers indicate that you are able meet your retirement objectives. This is the most important question, to my mind. Personally, I hate my job and I am literally counting the days (and the dollars) until I can walk away. Given that reality, I am willing to have a more basic retirement, simply to be free of a mentally draining career. You have to understand your own priorities in life in order to make an informed decision about when to retire and into what kind of lifestyle.
Fantastic layman's term explanation for the masses. Thank you.
Glad it was helpful!
very helpful. i'm 63 and looking to retire in Q4 2026. I do have my number and have been planning out when to start collecting SS. i'm still working and making more than enough and i'm pretty sure if i'm forced into retirement, I'm in very good shape.
Great 👍🏻
Constantly interrupting yourself really makes it difficult to follow what you're doing. Just go straight through with whatever the example is -- and then go back and play what ifs.
I never considered the part time job during retirement - that sounds interesting. Thanks.
@@comityway you’re welcome!
Depends on what your expenses and projected expenses are.
YES
Love to see a similar video for how youd be advising them if they DID hate their jobs and want to runaway.
We spend a lot of time talking to couples like ourselves who hated our jobs and felt trapped/unhappy in the rat race, and for us the very idea of waiting for/hoping for 60 is NOT early retirement! As you point out, theres aleways more work that can be done and money that can be made... but you can never make more time/years.
Life is short, go live it while youre young enough to enjoy it FULLY!!
Healthcare is the big wildcard when it comes to early retirement. I'm hoping to retire at 60, but I'm planning to save as much as I can into an HSA (401k input is already maxed out) to hopefully cover the gap between the employer coverage and Medicare.
Watch my healthcare video!
This is the exact video I needed
@@buddhstyle happy to help
Wow great video and I think I might be ready for retirement earlier than I thought.
Thank you
Really glad I found this channel. Your videos are hugely informative and the real world examples are incredibly enlightening.
Glad you like them! Appreciate the comment
My situation is somewhat similar to this one except I’ll retire at 55. I might go to 57 if I have to, but I’d be fine selling my million dollar home if push comes to shove. Too many of my friends worked till the day they died. Such a waste. I can live on 5k per month so one of those examples really mirrored my situation. Thanks.
Life is short and unpredictable, let go of things, retire early and enjoy your life.
I agree ... just retired at 61 (wife 65) with just a modest portfolio ... looked at mortality statistics for even people of AVERAGE health and there is only a 50% chance both me and wife are alive in 17 years ... my mom who had longevity in her family died at 66 ... take nothing for granted ...
I understand but what if you live?? It’s horrible to run out of money in your mid 80s and you have no prospect of going back to work. $1M is probably not enough if you live a long time
Definiteily short!
@@jip230oh be quiet. It’s plenty
@@earlyretirementariis this including social security ?
I recently adjusted my Roth IRA to 50% in SCHD, 25% in SCHX, and 25% in SCHG. For my Roth 401k, I went with 70% in Vanguard's S&P 500 Index, 20% in the Vanguard Growth Index, and 10% in the Vanguard International Index. My goal is to grow my $350k to over $1 million within the next three years.
It might be worth considering a financial advisor to avoid constant adjustments. Your selections are strong, especially for a $350k portfolio.
I agree-having an advisor manage my investments has been invaluable since my work schedule doesn't allow time for in-depth analysis.Thankfully, my portfolio has grown fivefold in just four years, reaching nearly $1 million today.
Thanks Ari! Very helpful and gets us excited as we are in a similar situation to your hypothetical but 5 years earlier. Building my brokerage account now, and plan to have very low income at age 60 so that I can do Roth conversions and capture favorable ACA rates for medical.
Pleased to hear it.
I retired at 49 with 150k in my 401k. Loving life, house paid for, 2 cars less than 5 years old, ridgeline and crv. My pension is 76k after taxes and on work insurance for 126 a month with a 100k hra to pay for it and dr visits. 3 percent cost of living bonus eacn year. Looking forward to ss for that extra 12k a year to go blow
@@HansZarkovPhD great!!
Excellent synopsis and extremely valuable content
When your health goes, you’re screwed. ALL your money will get drained by medical and assisted care expenses which are absurdly expensive.
Nice approach and done well. New subscriber.
@@davidl6671 thank you
Good stuff and good presentation. I'm 62 and of course 'looking at things', but like my job. Need to allow for maybe 10k a month for tools and auto restoration work, lol. I'm a finance professional, so I get all the calcs, know how to build financial models, etc, but you've got a slick UI on your scenario set-up. Two thoughts, or ideas. First is the fundamental "inflation risk" issue, which is perhaps more of an issue than nominal portfolio returns. Next idea would be to consider presenting "fan charts", which are shaded outcomes based up some estimated probability distributions on key assumptions. You may have ip% of the work done already to make that happen. Nice work. Hope your business thrives.
55 and I have over 1 million in 401k and I don't feel like I have enough to retire 😢
Everyone’s different
Dear Lord, my hubby and I are retired. We live on SS alone, about $4,500 a month. We live extremely well. We travel, enjoy eating out once in awhile (not fond of restaurant food, unless traveling). Our mortgage is paid off as are our 2 vehicles and our Harley. No credit card debt either. If someone is stressing about retirement with $1M in their 401k, they need to consider moving to a more inexpensive area to live, that makes all the difference. We live in SC.
Retiring at any age is predicated on spending. One million managed at 5% plus SS at age 62 is about 75k annually. If debt is paid off and you can downsize adding more to the original amount for a better annual return. This without touching the principal. When you reach a certain age mile stone you can start take more if you like or invest in your kids or grand kids futures.Either way, you're in good shape. Most everyone ends up in medicare so supplemental insurance will be a small manageable cost.
If your 22 now, bank on 5 million minimum for retirement. If you're a normal working stiff, you should put away 20% of earnings for retirement. Inflation and taxes eats away at all money in the end. You own nothing. The banks do. That includes the money you saved. Understand that reality and plan accordingly.
I have multiple pensions. First is set for $2k\m, Second is $2.7k/m, Third is $5.7k/m. 401k is NOT included in these numbers and passive income from rental properties is also NOT included. The pensions are NOT taxable by any state per federal law. The pensions last until death.
My question is, will this be enough to retire comfortable in for example Italy as an Expatriate?
Thank you, Ari! Very helpful- especially sliding that “future dollars” button!
Glad it was helpful!
Say INVEST for retirement ... you can't SAVE for retirement.
For most people, saving is just placing a few k in the credit union and that will never make any difference in your total net worth.
Now INVESTING is totally another story! Investing in equity mutual funds a few k a year from 30 to 60 will make a GIANT difference.
Completely agree on the naming convention. 25+ years in corporate finance, and I still have colleagues with basic savings accounts from 1982.
Yes, nobody is saving their way to financial freedom.
Love the knowledge share. It gives me more confidence. Thank you
You are so welcome
$1 million in a 401k sounds like a lot until you start doing the math on income taxes. You are paid 6th when you start taking distributions and if you die your heirs will be stuck with a $500k tax bill if you live in a high tax state like CA
Good points
Very Helpful , Glad we found you!
Glad it was helpful!
Excellent video and insights! Thank you. I'd like to retire early and am trying to discern if I can. This provided good food for thought.
Thank you!
I am 55, wife is 53. We have $2M in 401k, $250k cash. We are healthy. $400k equity in house, no consumer debt. Can we retire now?
Thanks for the video it make me feel much better about my situation.
I’m 60 and very concerned with what massive government layoffs, tariffs, and labor deportations will do to our stock market. Large tariffs have historically crashed markets and increased inflation. Those promised changes don’t bode well.
New subby. This video as well as your RMD video gives me a lot to think about.
Thank you!!
My plan is to retire at 60 then have my younger wife continue to work to pay for everything. That should give me time to travel with my girlfriend before I get too old
Sounds fun!
My man! 😂
Fishing trips with the guys😂
I am 73, have $1.3M in savings, $4100 in ss income every month and $16,000 per month of income working about 10 hours per week. The only thing that prevents me from retiring is that work is easy, it gives me some purpose and I can spend just about whatever the heck I want to. I admit I was a late bloomer which is another reason I am working. Things did not start really moving upward for me until about age 65. There was a period of time where I thought I was barely going to make it, but better late than never!
$16000 income a month while only working 10 hours a week. That a top 10 percent salary for someone working 40 hours per week!
Your situation is similar to mine, except I’m 66 with about $1.1M saved. FRA will be north of 4K. Stupid high salary is hard to walk away from. 😢😮
I retire at 55, I have a pension (very well funded and protected from the cities greedy fingers) a Roth IRA I can’t contribute to anymore due to reaching this limit and a deferred comp I contribute to. I thought I was VERY well secured for my retirement in 12 years but now after watching this I’m nervous.
Thanks Ari, the case study was very helpful!
Glad it was helpful!
The biggest omission here… the very real cost of care when you get old and need to pay for assisted living which can cost $10,000 or more PER MONTH. And it is going up. 10 or 20 years from now, look out! The costs will likely be astronomical. The system in the US needs someone like Musk to figure out a way to get this under control.
New long term care video releasing tomorrow!
Fortunate to have a pension set for myself in my career, but absolutely need to be able to ensure and plan for my wife's financial security if she outlives me (which is highly likely, considering the average life expectancies of our respective families). The current goal is 58.
very helpful. the cases are extremely useful in order to grasp the details pre-retirement. Thank you
You're very welcome, make sure to checkout other videos on my channel and a subscribe would be appreciated.
Turning 58 in 2025 and am in the same boat. Great info thanks!!
@@patrickpearce3936 my pleasure!!
I’m 62…have a pension that pays 5k a month, my S.S. Is 2.2k and 1M in annuity. I’m done…my key is, I’m gonna die broke. My kids are on their own.
Of course you can easily, it's all about expenses.
Healthcare!
Healthcare planning for early retirement: ruclips.net/video/BykvoxJEWGo/видео.html
I'm 57. I have 1.2MM in 401K and 25 years with the company I work for now. I have a pension with this company, I know that is rare now, that will play heavily into my retirement plans. I've worked all of my life in the private sector so I should receive a decent SS payout per month even though I don't plan on working to full retirement age, in my case that is 67. I'm planning to retire no earlier than 62 but most likely will work a couple of years more or possibly to 65. My hard stop is 65. My home is paid for 100%. We do have one car note of $600 that will be paid off by retirement time.
I love that your covering content that I have been wondering about. ❤🙏
Glad you enjoy it!
Retiring in 2 years. Love the case studies.
Glad you enjoyed it!
Subscribed. Lots of good info here.
Awesome, thank you!
Nice video - my partner and I can't quite agree how we want to retire, so it's less about working v. not working, but do we want to live here until we die? We don't agree. No place is perfect, but I can't see retiring here because there's very little here to help support us as we age. What if I can no longer drive? You get the gist. There's more to retirement than numbers.
You could but depends on health and debt. Lastly, it could depend on if you have a disabled child or not.
@@christschool great points
I’m 56 with $1.3 million in my 403b. I can retire at 59 1/2 and be fully vested but I probably won’t.
Ari - really appreciate this one and the rule of 55 video. What does an early retirement look like for a couple where one has a chronic health condition and a lower life expectancy? Say 60 or 65? I'd love if you could run through things you may tweak for situations like that. For example - if this couples life expectancy was 70 and 80 instead of both living to 90, how does that change your recommendations? Thanks again. -Ryan
Consider delaying the taking of social security ... for the spouse that remains, the social security COLA could make a huge difference ... best wishes for you ...
The person who has health conditions should retire immediately due to lifespan.
An important non money related bit of advice I can give from experience is to not retire from something but retire to something. Semi kinda sorta somewhat retired now, technically don't have to work but I want to. Blessed to be working as an independent property adjuster on my terms and at my pace after 30 years on the corporate cram it down your throat insurance company hamster wheel. The hours were long and the pay sucked, but the benefits were very good, including a 48K a year pension starting at 55 and employee health insurance from 55 to 65. Of course that kind of retirement went the way of the dinosaurs, but I hung onto that job for 30 years and it felt at times like they wanted to kill me at the end, and they literally begged me not to retire as I was easily doing the work of 2 people.
The funny thing is last year I made more gross independent adjuster consulting income than I did at my former salary job and it was still a much lighter workload that feels like a vacation. The unfunny thing is damn self employment taxes! It is good to have the income from working as life is stupid expensive, but also it is good to have purpose. Not sure how long I will keep doing the part time consulting thing, I figure I'll just ride the pony until it dies and when it does, go on Social Security. 62 now, planning on waiting to 70 as I don't have long term care insurance and the larger SS payment will help with that if I lose my marbles to dementia, which runs in the family.
As for 1M being enough, not really, depends on lifestyle and where ya live. I'm on a 48K a year pension since age 55 so it has paid around 360K to date which has greased my financial wheels but no way I'm living off that. Also I have good health insurance for my family provided for around $400 a month. Sure glad I didn't suck that money out of my 401K and don't have to pay a lot more for similar quality health insurance. I joke that I work at consulting to generate income to pay the taxes on incrementally rolling my 401K into my Roth IRA. With America's out of control 36T and growing debt it is a safe bet that taxes aren't going down in the future.
I know how blessed I am to have a pension - it is such a shame they went away in the private sector. On the other hand, I didn't leave for higher paying opportunities and suffered years of abuse, so I feel like I earned it. As I said I don't think 1M is enough to retire early and live any kind of life. The upside is if one does reach that level (I managed to and then some, thanks to buying Mastercard at IPO in 2006) if you can leave it alone it grows fast. It's simple compounding math. The more you have the faster it grows, and at some point it gets ridiculous - just ask Elon Musk 😆
@@Duken4evr29 great insight thank you!
I retired at 60 with 50k in the bank. The key is having everything paid for. No bills. I do get a decent pension with health so I’ve got that plus I’ll be getting social security next month
Good points
What you spend is ALWAYS the determinant factor. We can jiggle every single possibility around and always come back to spending in order to have a successful outcome.
If your income needs are $2k per month, and your SS is $2k per month, you don't need much saved for retirement to make the math work out.
Software is awesome and something that didn't exist when I started saving for retirement. I used, and still use, software to analyze my retirement funding, but I also realize that it's up to me to make adjustments as needed. Spending is never static, so we can adjust as needed. Having more assets gives you more flexibility. If 100% of your income needs are for necessities, then you have no wiggle room. Only 30-40% of our income "needs" are actually necessary expenses like food, taxes, utilities, etc. The rest is discretionary.
In 2022, markets were down, so we reduced our spending. In 2023 and 2024, we have had good markets, so we bought a new truck and plan to buy a new boat in December, as well as do a small remodel.
I expect our income to follow the smile. I'm probably not hiking New Mexico when I'm 80 like I did this past week at 63.
Guardrails, smile, go-go, 4% rule, all are strategies that need to be considered in retirement planning, and none of them are perfect.
Good job being the mean guy.
I stumbled upon this and very good information. Appropriate since I'm in a similar situation as your example. In the end, nothing is known or guaranteed except death and taxes so it's hard to plan but there has to be a plan and adapt as needed. I appreciate the information. Where can we get software to use like that to provide different scenarios?
@@chrisekstrom7964 thank you. here: ari-taublieb.mykajabi.com/early-retirement-academy
The question of when or with how much depends on your expectations.
Great video. Thank You !
My pleasure
This is one of the most helpful, well-presented informational videos I've ever watched on RUclips. Absolutely remarkable in every way. GREATLY appreciated. I have subscribed and will tune in for more. Thank you!
@@terrywilhite thank YOU!
I like your explanation and appreciate your expertise in this subject matter. I look forward to getting back to your vlog!
@@jfishmd thank you!!
Pensions and cash can make a Huge difference.
Huge
Yes... Even a small pension helps offset what you take out of your 401k. Cash helps get you through a market downturn. If you can have a few years of income in cash, you're going to be fine.
This is helpful. Thanks.
Great explanations👍
@@johnsini4579 thank you