Great video Ari, just retired last Saturday on my 56th birthday. Got enough craft beer and wine from my retirement party to last me for the rest of the year. My portfolio is about the same as the couple in your example, but my "Need expenses" are less than $1,000 a month. Budgeted for $5,000 a month as my guardrail of $60,000 a year keeps me under the 12/22% tax brackets and my ACA HDHP+HSA plan being fully subsidized. Time to put the plan into action.
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
I definitely share your sentiment about these firms. Finding financial advisors like Marisa Breton Dollard who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Marisa has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.
@@Merritt_Life Bless your heart. You’re looking at “today’s dollars” as the amount of dollars owned today. Today’s dollars means that’s the actual ending balance mathematically and that doesn’t account for the inflation eating into your money. This value is after all spending and growth.
Many of your videos relate to people at the start of their retirement planning journey. What videos do you have that give examples of people who have already retired? For example how do things change in the first few years, or five, ten, or twenty years in? Also how does a plan change with a bad market or a good market? What kind of client examples have you shown to give examples of how their plans have changed for the good or bad? I think videos like that would be helpful to show people what kind of adjustments people made and how it affects their quality of life during retirement.
358 of the Fortune 1000 companies provide a company-sponsored pension. most self-employed people set up their own pensions via SEP IRA. many public sector employees also get a pension. it's more common than you think.
I will have some pension money but both of the huge companies I worked for discontinued them going forward. I doubt many companies offer them anymore. These 2 companies had net profits of around 20 billion a year.
I am a blessed one and have a pension. It will give me $52K a year. My wife will have a small one at $4K a year. With SS and a $1K monthly draw from IRA/401K should be enough for us to retire end of next year.
My husband’s company has a great pension. He’s 48 and is one of the last to get a pension (they stopped offering it to new employees a few years after he started working). I do worry they might freeze it though but if they did I think they’d lose a lot of employees quick!!
Hi Ari. Great video as always! I was wondering if you could make a video addressing the order of withdrawals from different accounts compared to the conventional taxable, deferred, and then Roth, for a case of early retirement below 60, where taking advantage of ACA subsidies comes into play at the same time of wanting to lower your pre-tax balances through either withdrawals or Roth conversions. I’ve seen you have addressed some of the latter in other videos but order/sequence of account withdrawals seems it was left out. Thanks in advance!
I retired last year and definitely don’t need to work, but went to a much less stressful part-time job. There’s a lot of merit in that, although I’m thinking they want me to go full-time, which I won’t do.
10% growth/return on the 401K accounts is risky in and of itself. While the past several years have been good, assuming it will be good over a 25 year span is somewhat unrealistic.
It's tough. You are only in your 20s, 30s, and 40s once so vacations/ATVs/fast cars etc are more fun now but on the flip side you do not want to work until you are 80. On the flip side you do not want to live in a cardboard box and eat cat food to die with a kazillion dollars. This is why it is important to get a financial advisor. It is easier to adjust you 401k contribution by 1% at 30 than cry at 65 when you have to work for 7 more years. Great info.
I agree with your overall content. Here in California & with a love for travel; I’m having to amplify the core multiples. If I’m open to moving & having a “simple” car instead of a collection, plus less travel, then spot-on.
I’m curious about what percentage of people with say $500,000 in retirement savings and are average income earners are able to afford the taxes for a Roth conversion using their cash reserves.
What is the typical spending on travel for your clients in the first couple years of retirement? You are using $15k a year here. To me, that is really low - barely covering one round trip ticket.
$15k is barely enough for one round trip ticket? What airline are you flying?! Lol. Maybe you travel first class and stay in 5 star hotels. If that’s the case, good for you, figure out how much you need and go from there. But the vast majority of couples are not spending $30k for two round trip tickets.
If you keep going to expensive cities or countries. I spend 6mos out of the country visiting other countries, live well and spend $15k in 6 mos. Including international healthcare. That’s $2500 a month. For me being single, easy and living well
Agree … $9K is a single trip to Hawaii for 2-people for 1 week w/ adventures factored. Cheaper places are available, but not desirable. Budget is probably closer to $27K for those enjoying World travel 2-3 times per year.
Great video Ari, just retired last Saturday on my 56th birthday. Got enough craft beer and wine from my retirement party to last me for the rest of the year. My portfolio is about the same as the couple in your example, but my "Need expenses" are less than $1,000 a month. Budgeted for $5,000 a month as my guardrail of $60,000 a year keeps me under the 12/22% tax brackets and my ACA HDHP+HSA plan being fully subsidized. Time to put the plan into action.
You’re in a good spot, sir. Enjoy the rest of the year. Sounds like you won’t have an issue :)
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
I definitely share your sentiment about these firms. Finding financial advisors like Marisa Breton Dollard who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Marisa has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.
Can you do different scenarios of younger people? Show how small changes now can impact the future. Maybe ages 25, 30, 35, and 40.
Dying with 600k in today’s dollar isn’t cutting it close at all
I suspect it certainly is for the client base Root chooses to work with.
Isn’t 600k in today’s dollars about 200k in future dollars after 30+ years? I would call that crooked close for comfort...
@@J-2024-v8i yes
@@J-2024-v8i no it’s the other way around. Over a million in future dollar amount
@@Merritt_Life Bless your heart. You’re looking at “today’s dollars” as the amount of dollars owned today. Today’s dollars means that’s the actual ending balance mathematically and that doesn’t account for the inflation eating into your money. This value is after all spending and growth.
Many of your videos relate to people at the start of their retirement planning journey. What videos do you have that give examples of people who have already retired? For example how do things change in the first few years, or five, ten, or twenty years in? Also how does a plan change with a bad market or a good market? What kind of client examples have you shown to give examples of how their plans have changed for the good or bad? I think videos like that would be helpful to show people what kind of adjustments people made and how it affects their quality of life during retirement.
Added to my list!
Thanks Ari for another very informative video. It's always nice to see the process you go through when determining if somebody is good to retire.
You are so welcome!
❤❤❤ excellent way to analyze. Would you mind sharing the optimistic and pessimistic percentages you are using?
In the academy module 2!
pension.... you've got to be joking. Nearly 90% of companies today don't have pension plans.
358 of the Fortune 1000 companies provide a company-sponsored pension. most self-employed people set up their own pensions via SEP IRA. many public sector employees also get a pension. it's more common than you think.
I will have some pension money but both of the huge companies I worked for discontinued them going forward. I doubt many companies offer them anymore. These 2 companies had net profits of around 20 billion a year.
I am a blessed one and have a pension. It will give me $52K a year. My wife will have a small one at $4K a year. With SS and a $1K monthly draw from IRA/401K should be enough for us to retire end of next year.
Many of my clients have pensions! You’re right, they are much less common today
My husband’s company has a great pension. He’s 48 and is one of the last to get a pension (they stopped offering it to new employees a few years after he started working). I do worry they might freeze it though but if they did I think they’d lose a lot of employees quick!!
Hi Ari. Great video as always! I was wondering if you could make a video addressing the order of withdrawals from different accounts compared to the conventional taxable, deferred, and then Roth, for a case of early retirement below 60, where taking advantage of ACA subsidies comes into play at the same time of wanting to lower your pre-tax balances through either withdrawals or Roth conversions. I’ve seen you have addressed some of the latter in other videos but order/sequence of account withdrawals seems it was left out. Thanks in advance!
Great idea and yes!
I retired last year and definitely don’t need to work, but went to a much less stressful part-time job. There’s a lot of merit in that, although I’m thinking they want me to go full-time, which I won’t do.
Love this!
Great Video!
Thanks!
Weird question, is your firm hiring?
Yes
10% growth/return on the 401K accounts is risky in and of itself. While the past several years have been good, assuming it will be good over a 25 year span is somewhat unrealistic.
What if we are 65 and benefit from the old age security? 🧐
It changes a lot!
It's tough. You are only in your 20s, 30s, and 40s once so vacations/ATVs/fast cars etc are more fun now but on the flip side you do not want to work until you are 80. On the flip side you do not want to live in a cardboard box and eat cat food to die with a kazillion dollars. This is why it is important to get a financial advisor. It is easier to adjust you 401k contribution by 1% at 30 than cry at 65 when you have to work for 7 more years. Great info.
Good stuff Ari. Just found your channel
Thank you!!🙏🏻
What’s your idea of a market downturn? Maybe 20%?
Great video, thanks for the info
Course!
I agree with your overall content. Here in California & with a love for travel; I’m having to amplify the core multiples.
If I’m open to moving & having a “simple” car instead of a collection, plus less travel, then spot-on.
Glad it resonates :)
to retire comfortably, I'm estimating no less than $6500 a month after taxes and no mortgage..
Thanks for sharing! I appreciate it.
You are speaking to the 3 %. Very few people have anything near a million dollars to retire with.
I have videos with those with much less! Trying to help everyone :)
I’m curious about what percentage of people with say $500,000 in retirement savings and are average income earners are able to afford the taxes for a Roth conversion using their cash reserves.
What is the typical spending on travel for your clients in the first couple years of retirement? You are using $15k a year here. To me, that is really low - barely covering one round trip ticket.
$15k is barely enough for one round trip ticket? What airline are you flying?! Lol. Maybe you travel first class and stay in 5 star hotels. If that’s the case, good for you, figure out how much you need and go from there. But the vast majority of couples are not spending $30k for two round trip tickets.
If you keep going to expensive cities or countries. I spend 6mos out of the country visiting other countries, live well and spend $15k in 6 mos. Including international healthcare. That’s $2500 a month. For me being single, easy and living well
Average is $15K - $30K.
@@earlyretirementari thanks. For references, could you disclose the average of your clients’ net worth?
Agree … $9K is a single trip to Hawaii for 2-people for 1 week w/ adventures factored. Cheaper places are available, but not desirable. Budget is probably closer to $27K for those enjoying World travel 2-3 times per year.