The 5 Biggest Money Problems at Age 60
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- Опубліковано 1 жов 2024
- This video discusses the 5 biggest money problems at age 60, according to a recent survey. The video also outlines some potential solutions if you are facing into any of these issues yourself.
Money problems at 60, at any age really, can usually be turned around with the right plan and focus. Unfortunately most people ignore the issue making it harder to deal with over time.
There are many videos on this site to help with this, but this video will focus on what to do if you are a few years out from retirement to clear the deck, and sail smoothly into retirement.
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Approaching retirement in a couple months and I'm not over the moon about it one bit.
My condolences go to anyone like myself retiring this year with all the commotion from inflation, first its gas and next up is food. 30years of nonstop work just to have a crooked system swallow all your earnings.
Best bet for anyone with a brain is to get in on a passive income stream while you still can, doesn't matter which one it is just get on it and stay committed, things are getting dicey and the sad part it loads of people wont notice how bad it is till its too late. Be your own retirement plan.
@@mitchel8329
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
@@mitchel8329 The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees drain your portfolio. Is this the case with yours too?
@@mitchel8329 I will give this a look, thanks a bunch for sharing.
Cathie Wood called this an economic apocalypse, brace yourself.
I’ve been retired for 5 years and agree the 80% rule is bs. I live on 40% what I made when working. It’s not about what you make, it’s about what you spend. Simplifying life in retirement is key to financial and emotional stability.
I agree, we always lived below our means. That 60% will go to unforeseen medical and dental expenses, believe me, you will be happy you have that money. 😞
~ Yes most of us "older" folks have learned to budget/spend _less_ than we make. Not so sure the next generation knows this ...
Unforseen medical expenses are the scary part .
Well put 👍
Not to mention that is an infinite spiral. When I learned I was in need to make more money for retirement, after years of multiplying my salary, guess what... you will still need to make more, cause your baseline also grew...
Thank you for saying this! Our two biggest expenses now are taxes and our mortgage and hopefully when we retire we will have no mortgage and fewer taxes. This is the first I have heard what I suspected- that depending on lifestyle, 80 (which we will never achieve) is unnecessary.
The biggest money problems are caused by divorce so do whatever it takes to stay married. In addition, learn to find satisfaction in what you have and not what the other person has.
An interesting topic...for me it's all about the cash flow and keeping it flowing in the right direction. I can't even fathom charging $10,000 on a credit card much less not paying it off at the end of the month. We're starting to think about our next vacation in the next 6-8 weeks. It's a pretty lavish affair involving 40 gallons of gas, a couple of fishing licenses, groceries and a $10 bag of peanut brittle as a treat for the wife. Of course there may be unexpected expenses such as finding something cool at a local flea market or garage sale such as a painting, a hand tool or cookware/bakeware but it never amounts to much and we mostly just go to socialize. We don't even eat out on the drive up or home as we pack a really nice picnic lunch. This type of vacation does have a serious drawback...my wife out-fishes me almost every trip and it's really hard to fit in the boat with her giant swollen head as she teases me for most of the time we're on the lake. Even when I catch several good sized fish and point it out she smiles and tells me to "just wait" and sure enough she'll hook and land a much larger one. I've got it figured out for this year though, I'm going to cut the hooks off her lure ;)
Darling!❤
Having a dynamic strategy cannot be overemphasized when trading. The best advice I could give to any trader is don’t trade if you don’t have a working strategy.
I’ve only been trading for months and I’m still yet to make my first $1000, I’m still trying to improve on my trading techniques and strategies and I would really like to make profits from the stock market too
Trading using the strategies of an expert would be the best way to achieve the best from the stock market. Trading through an expert would also reduce your losses help you earn consistently from the market.
I’ve made a loss of over $25000 trading on my own where can I find an expert to help me recover my losses and also help me earn consistently from the stock market.
Great, I will do that now. Thanks for sharing
Thanks so much, You're an absolute blessing. Really excited to start working with her.
The 80% rule has NO BEARING on what you need in your retirement unless you don't save and spend your entire paycheck, in which case you will not achieve your 80% anyway. Your income has little to do with what you need, what you SPEND is the basis for how much you need. And in retirement, what you plan to spend has the most to do with it as you may intend to spend much more or less than what you spent while you were working.
Be debt free when entering retirement and then stay debt free, is the best way to ensure a stress free retirement regardless of how much you get to spend.
i guess there are those where NOTHING ever happens no floods in the house, no cars breakd own no divorce no sickness lucky them NOT real life
I am approaching retirement (within a year or two) and your Checklist was invaluable. I am excited to see what you have to post in its place!
Thank you for debunking the 80% income lie. I hear that all the time, but its not a fixed % of retirement income for everyone, it's about how much you spend.
Like everything, it depends.
I wouldn’t go so far to say it is a lie. If everything is paid off and you are still spending 80 percent, you will need that 80 percent to maintain. Even if everything is paid off, you still will have to replace or maintain your big ticket items. I guess it depends on what you did when you were working and what you plan to do when you retire. Yes, needs and wants can have a large variation for some but not others.
And how much debt you have as well.
I bet very few retirees have 80% of their preretirement income. Your expenses and taxes go down in retirement. I have more money now at 50% then when I was working. 😋
I am 62, debt is paid off. Now trying to pay off my mortgage, and put money into savings. Plan to retire at 67. Between now and then looking to start a writing career for extra money at retirement. I am keeping tract of monthly expenses, so I know how much I need to live on. I can live comfortably on less than half of what I am making now.
This is it.
So sorry you cant retire now, I retired at 61! Happy as can be, still have a mortgage and it is only 15% of my retirement payments, no problems at all
A writer would keep " track " of monthly expences....sorry
@@chrisgreene9745 Yes and outside of medical emergencies and a mortgage, there should be ZERO debt. You reach 62 and just now begin save?
Thank you for your video. I feel like you're talking directly to me. I'm 60 years old and I really want to retire at 62 the only reservation I have is health insurance, ugh. I hate the thought of working to 65 but if I work part-time I can keep employer health insurance and I know my future will be brighter. Again thank you for all your wonderful advice .
Randy check out ACA, or 'Obamacare'. If you AGI is low enough premiums can be very low until you reach Medicare.
Thanks for the comment
@@Robw1960 thank you for your thoughtful comment. I'll check into it.
@@randytimm6175 It takes about 4 minutes to find out what it will cost on the ACA. Most likely it will be free for you.
Same situation, also my wife is years younger.
I always tell the younger people the most important thing about retirement is how the money is managed before you get to retirement age. Money not getting a good return will hurt. Just about every company has a 401k and offers a small match. What the ones I have worked for lack is good investment advice. What if you saved most of your money outside of the 401k but have a much better return. Where does the break even land at? What does a good average return need to be and over what period of time do you base it on? They seem to use automated systems to determine what to do with managed accounts. I refuse to use them and found a hands on manager that is doing well. I also am invested in growth as I can't afford a return getting eaten up by inflation like it has been this past year.
BIggest Problem - INFLATION
Totally
I am 70 years old and I still have to work just to pay SCHOOL TAXES. People my age keep complaining and no one listens.
Outrageous. I'm sorry.
PEOPLE CANT SAVE IF THEIR EX EWIFES TOOK THEM TO COURT, every 6 months for 12 yrs.....hundreds and thousands of dollars out the window....talk about divorced guys thats more realistic
Could you talk about medical planning in retirement. Are there strategies? How do you plan for huge expenses that probably will happen? The projected numbers are way beyond an emergency fund. Thank you
Medical expenses is really our biggest expenses, even with medical and dental insurances. Tip: go to Costco for prescription glasses and hearing aids. They did a great job, economical, and nice.
Worst tip: is to go to a private audiologist. $$$$$ or to go to a small optical shop, worst thing we ever did.
Most retirees do have Medicare and a supplement plan or Advantage plan.
My problem, bought a house late in life, gave my son and daughter money to buy their own homes. I’m single so 1 income. 3 yrs after I bought, I lost my job/COVID hits/CA shutdown for over a year. Applied to hundreds of jobs and have not been offered a job (everyone says oh there’s lots of jobs out there. Well they are very picky. I have a long work history, college grad. I have applied to everything from retail to management and ZERO offers. Told I’m over qualified so I even dummied down my resume). Kicked off unemployment so had to take Social Security. Now the war and the stock market…. I don’t know what to do. What’s left of my savings will be gone soon and social security (especially with the cost of Medicare), doesn’t cover my bills and all I have is the basics: housing, utilities, insurance…
Don’t despair, keep applying and if necessary, look for opportunities to work as a consultant with your current skills. There are a lot of websites out there that hep put those who have a skill with those that need a skill.
You are always clear, professional, and give good information about important topics. Thanks for the free checklist!
Don’t retire before you quality for Medicare. Try not to take Social security till you reach your full retirement age (at least) unless you are in poor health and don’t think you will live a long time. Save in your IRA,401k,and HSA (whenever possible and practical. Stay out of debt. If you do these things you should be fine. It’s not rocket science! This guy makes allot of sense
Keith that's good advice...what if you don't like your job?
@@econdude3811 you either suck it up, or you find another job. If you can’t find another job that you can do that you also like, be grateful you have a job. I hated my job, but I did it because I made a ridiculous amount of money. I stuck it out till I didn’t need to do it any more. There was never a moment where I said to myself “poor me, I don’t like my job. It’s so unfair I have to work” life doesn’t work like that. If you can do something that you love and get paid a ton for it-good for you! I did something I didn’t love or like, and made allot of money doing it. Now at 54, I don’t have to do it any longer, and am planning a nice long post covid trip to see friends in Europe 🤷♂️🍀👍 I kept out of debt. I saved and invested in my IRA and HSA, and saved and invested heavily from what I made. I made my share of stupid mistakes and took my lumps along the way. But I’m now in a position where I have no debt and can live off the income from investments without touching my retirement funds. I plan to take social security at my full retirement age. I will continue contributing to my HSA till I qualify for Medicare. I will have a gap between now and 65 where I will be out of pocket every month for private health insurance (expensive but an absolute must) and will be out of pocket between 59 and 67 for long term care premiums (also expensive and also a must) Once social security kicks in, I can pay my Medicare and supplemental and long term care insurance out of that pot. I can leave my retirement accounts to continue to grow and compound till I’m required to take minimum distributions, or until I feel like or need to tap them. With any luck, that will be enough to get me across the finish line. I don’t consider myself a financial genius, and I don’t have a degree in finance and am not a certified financial planner. I just got my s--t together in my early 30s and decided to save and invest and stay out of debt. 🤷♂️
Retired at 60, took SS at FRA. It’s all good from here.
🌮
@@econdude3811 Bear down or find another one.
So, I easily fall into the 80% rule as I no longer drive 900 miles a week, spending $48 a day on fuel (adjusted for April 2022: $58 per day and yes, this is in California, where regular gas is hovering around $5.86 per gallon). Twenty-two workdays times $53 fuel per day (the average of last October and now) is $1,166 a month. That's $1,166 a month I no longer have to pay!
Covid kind of forced me into retirement. The company offered a pretty good package, but I was not prepared, didn’t even think of retirement. But I took the package. My husband died 3 month later. I had a payout of a small life insurance from my job I kept paying the premiums after I left., and paid my condo off. Thank goodness I have no debt , but I have a small social security check, because I retired at age 63. I can make it though, but maybe you can take on the subject on what to do if a company offers a package to retire, but it comes unexpectedly. Love all your videos!
Was your husband collecting Social Security, or was he eligible to collect it? If so, you may be able to collect more Social Security from his SS survivor benefit, if it is larger than your SS benefit. You can't collect both, but the survivor benefit might be a lot higher than yours. You can choose either the survivor benefit or your own.
@@mikecorpus1267 thanks for info. No, my SS was higher. I may get some kind d of pension from the VA , because he got 100% disability. So far they denied it, but it’s appealed by an accredited va attorney. So if it would be approved in my favor I would get 1200$ monthly tax free. It would be awesome, but I don’t want to have my hopes up too high. I get a small pension from my job and a pension from Germany that I applied for recently. So I’m ok, at least I hope. Sometimes I worry with the war now and economy.
@@beautyRest1 You can always get a part time job.
HEALTH CARE COSTS. The single most difficult aspect of retiring before Medicare eligibility is covering known and unexpected health care expenses. I had cancer at age 48 and the treatment cost over $750,000. And counting. Thankfully I have insurance. Leaving a job that provides insurance without a plan to cover a costs such as this is critical.
Thanks so much, Geoff. I am a new subscriber and I really appreciate your videos.
Would you kindly teach us about the pros and cons of reverse mortgages?
Thanks Kirsten, that is a good idea. I’ll look into it!
@@HolySchmidt Thanks Geoff.
My problem is that I am looking to buy a home of my own but my credit rating is low because I don't use credit cards and don't need a car loan. So being responsible with money and debt free is a problem for these lenders. Our system is stupid.
It is definitely not perfect. I’ve always had an issue with the way the credit bureaus make a decision on a few things, but unfortunately that’s all we have.
Perhaps get a credit card with the express purpose of creating/increasing your credit rating. Plan a large purchase (like a computer) and pay off over time (even it you could pay for it all at once in cash). This will build your credit. Years ago, I considered saving money and buying a home outright. Turns out, house prices rose so fast that I would not have been able to afford to buy a house if I had not jumped in when I did with a mortgage.
By the time I would have saved the cost of my house (let's say $100,000) the value had gone up 3X's ($300,000). Then by the time I would have saved the additional $200,000, the value would be expected to be $500,000. I am astonished at the value of my house at this point in my life. The value of my house rose so high and so quickly that, if I had waited a mere 2 years, then no bank would have ever approved a loan to me based on my salary.
The bank, in addition to a hefty down payment (I had $35,000), will want evidence of at least 2 years of income from your job. They may want a reference from your boss. The irony is that rent is often more costly than a mortgage (plus taxes plus insurance) payment and is not taken into consideration.
I don't know if the following would work these days, but my relatives have stories about buying the cheapest thing they can afford, then fixing it up, selling, and repeat; thus gradually working your way into nicer and nicer housing. My taxes and home insurance (required on a mortgage) run around $400/month. I consider that money out the window, so subtract $400 from your rent payment and ask yourself if rent looks a little bit better now?
I agree that our system is stupid. If you do get a mortgage, get a 30 year (so can pay a lower amount during hard times like when the car breaks) and be sure to ask for a "no penalty prepayment" mortgage. That way you can pay extra (when times are good and you have extra money). If you pay off a 30 year loan in 15 years, you save a ton on not paying so much for interest. Be sure to specify that the payment is to go toward "the principal only" and is not just an extra mortgage payment because the first few years of the house payments are almost 100% interest and don't build equity. Under no circumstances get a balloon mortgage where you pay less now, and more "for when you get promotions or a better job". That's almost a guaranteed way to go into foreclosure and lose your house. Also, never miss a payment. Banks start foreclosure proceedings immediately because it takes about 3 months for all the legal work to go forward and they can get you out of your house.
My son had the same issue. He got a credit card and started running all expenses through it. Paid off every month. His credit skyrocketed within months. He tracks with Credit Karma app. I have no debt, but do have an overdraft on my checking account. I learned my credit will increase by 20 points if I let a balance roll into next month. Messed up system, but you can play it!
Defcon 5 is a good thing. Defcon levels 1 through 4 indicate elevated levels.
What about us slaves that are on disability, i’ve been disabled since 11-08-01 and now at age 59
THE biggest problem is significant inflation that has been here since Covid started and I blame the Fed for not realizing that they just can’t print trillions of dollars without consequences. It was needed at the beginning of Covid, but the Fed just didn’t know when to stop.
All planned. The NWO is following their plan. Agenda 30.
@@IAmWithinEverything exactly.
This inflation is relatively new as for many years it was not even 3% a year. Right now, it's not that bad really. I can tell you about inflation of the late 1970's and early 80's. That was bad. We are not there.
@@myvenusheeler inflation is as bad now as it was in the early 80s. So yeah, it is that bad.
@@spankynater4242 No.
I can't remember what my biggest money problems were at age 60. That was 9 years ago. 🤑
Can you explain Non Performing Loan on a real estate property for sale please? Thank you.
I don't know if you have done a video on vesting and 401k plans, but I have a question on vesting. Most employers have a five year graduated vesting plan for the 401k employer contributions. But if the employee is 65 or over, is there a federal law that says the employee is 100 percent vested even though he hasn't met the five year rule? It would seem unfair to the 65+ employee who is retiring that the employee cannot possible vest 100 percent when retiring.
That’s a good question C.D. Let me look into that one
I have to go to 67. Lucky I have no debt.
I am 65 and single with a net worth of $US 3.1M. However, I have a fear of poverty that will keep me working until at least age 70, even though I have no debt and support no one other than myself.
None of us doubt that you are alone...
First step is to admit you have a problem. Now do something about it.
im 0-5, but I need 7 more years to retire at 62
Awesome insight Geoff, thank you very much. My plan is to exhaust my retirement funds except for Social Security by age 99 when my wife is 93 at 125% of my current income. Is that a bad plan? SSI will continue should we go further, but I don't envision living past 90. Yes we still have a mortgage which is included in the plan along with a new car every 5 years. I have accounted for the SSI to drop 22% in 2034 as well as projected income reductions of 3% every three years starting at age 71 with large 25% drop at age 90. Financial planners seem to want you to maintain the balance of the investments and not reduce them. What is your idea?
Thank you
80% rule except if you have been living off 20% of take home and saving the rest. Accumulation vs. Distribution.
I'm in that 8 pct last category. The unknown. This then affects, have I saved up enough, and what is that number? This is the undersaved category. I plan on a seasonal job during tax season. Should I pay off my mortgage before even considering retirement? My mortgage is low. I bought after the last crash at a 70 pct discount. I refied a couple of years later at 3.75. I pay more into principle every month. These are the unknowns I try to plot.
TY again for your Schmidt wisdom. 😂 I had to use that joke.
Just a heads up for any retiree that might be considering a account with " Ira Financial Group "with Gemini exchange in a self directed IRA . Was hacked $35 million gone . Retirees are left with nothing but questions.
My husband and i will be living on 38% of our income when he retires next April once we start collecting SS and taking his Deferred Comp savings that will just be extra money.
Thanks Mr Schmidty
You bet
1) not enough money!2) Still not enough money!!3) Holy S-t! Still Not Enough MONEY!! Got it?
I retired from the military after 20 years of service at age 38 and get a 50% retirement and health insurance through TriCare. About 12 years ago I started a second career as a teacher and will be eligible to retire from that job with a 50% pension in about 10 years. I also have a 401K and will finish paying off my mortgage within the next three years. I'm not counting on getting anything from Social Security, but it would be nice since I paid in for decades. It's unfortunate that pensions are so uncommon now.
Can you do a video on annuity from insurance company thru Edward Jones or other.
I'm planning on taking a lump sum from my Pension and setting up annuity. But not thru my company I work for.
Is the annuity supposed to take the place of the monthly guaranteed pension payment? While annuities are "safe" they hardly keep up with the cost of living, and early cashout to move the money to a different investment can trigger penalties. You really need to research them before you put the money into a long-term investment with little flexibility.
Personal opinion here, stay away from annuities. Build a simple base of some blue chip dividend paying stocks and vanguard ETFs.
I don't see any links to the issues Schmidt was referencing too,
Nevermind I found it!
I liked where you’re going with the Bezos talk. Most people will need quite a bit less in retirement with paid off house and cars, no 401 deductions and less spending on fuel/clothing/lunches for work.
I see no change in my spending when I retire because I have been debt free since I was 48. So, the longer I keep working the more I am putting away in savings and investments. I am basing my retirement income on my current spending plus inflation so the calculations are getting skewed lately.
Inflation is scary, but since I stop “shopping “, everything goes to bills only.
Another great video. Appreciate them all, thank you!
I'm 52 now and my goal is to retire at 62, but so far I've only reached about 20% of my savings goal. On top of that, we're likely entering a sustained period of lower market returns than we've seen in recent years, which will make it that much harder to reach my goal by age 62. My objective is to delay SS until age 70 to maximize the benefit and live on savings in the interim, but I am also trying to prepare for other major expenses (home remodel, RV purchase) in addition to saving for retirement. I'm already investing all that I can (over 50% of gross income) across multiple tax advantaged accts, so I can only hope for favorable market returns at this point.
Buying in a depressed market is actually a good thing. You get more bang for your buck. And when the markets return, you’ll be that much richer.
@@spankynater4242 It's only a good thing IF higher returns come back, but I suspect they won't any time soon, given how badly the FED has mucked things up with its idiotic monetary policy over the last 14 years or so. My guess is that, without the FED coddling corporations, we're looking at single-digit returns for at least the next decade, probably longer.
@@dlg5485 that is true, but they will come back eventually. And unless you want to retire in the next year or so, this is not the worst thing in the world.
I think we may be twins. You sound just like me.
You will be okay..dont stress..
thanks for these series. I have retired recently and often listen to your presentations here from New Zealand. I also like your smooth voice
I am having a difficult time finding your book for college. I would like to find it for my grandson.
Approaching age 62, recently retired from the USN at nearly 30 years as a senior officer.
My wife unfortunately died on active duty in 2014 and was buried in Arlington National Cemetery with full honors.
I am retired for the last year, work part time as a Family Physician.
I am now running for the new Florida, District 59 in the primary and then the National election in Nov/2022.
Thank you.
R/
Dipak
Thanks to you and your wife for your service, my condolences for your loss and good luck in November and with your future.
Thank you for your service and condolences for your loss.
I hope there is more info as the primary approaches but i despair of your chances in this MAGA culture, with a Republican operative and a lawyer both +$100k-funded and probably neck-and-neck in the culture wars race to the bottom.
Who cares
@@hubertvecht7255 About you?
@@hubertvecht7255 thank you Mr. Vecht. I hope no one who you love so dearly dies soon. Then you will feel unbearable pain.
Thank you, you always have great advice and give us things to consider and think about.
Thank you
Painful truth... 😖
Thank you for the valuable information and insight! They never taught anything remotely close to this in school. Maybe they still don’t with these kids 30 -130 k in college loan debt!
thanks :)
Thanks AJ!
I appreciate your willingness to share this wisdom with anyone that is willing to hear. Thank You.
You bet
Learned so much from.your videos! I have a question. If you were to pay off an existing mortgage pay Federal taxes at 34% and state taxes as well pulling funds from 403B & 401K plan would this effect a widows social security income? Instead of paying mortgage monthly for additional 12yrs?
Won't effect it all. Might affect it, though.
I would add don't be scared to retire. My biggest mistake was that I continued to work well after my net worth hit 2 million, in a job I hated and stressed me out. Finally Covid and the job politics (diversity and inclusion, Woke policies, etc) I said enough at 58, sold my house and moved to Florida. I could have done it at 50 and still have the exact same lifestyle I have today. Believe me I run the numbers backwards.
Almost 2 years later I can't be happier with my decision. Now my net worth is over 6 million (I get about 212K per year in dividends which we use to live of) but I can tell you in no uncertain terms it makes zero difference, since a lot of the dividends (on average 70K per year) we continue to save.
If you have a paid off house like I have, live in a state without income tax, have zero car loans (bought my 2021 Porsche Boxster GTS and our 2019 BMW X3 cash), try as I may we can't spend more than 10K per month. We have scheduled 4 trips this year (2 cruises, Greece for the summer, Jamaica in October). Budgeting is the key. The wife and I don't eat out much because frankly we want to be healthy and very few restaurants focus on this. That is a major expense right there and its not worth it. We average 6 times a month going out to eat, almost all for breakfast/brunch as we don't like eating late anyway. Bike riding, paddle boarding, beach, nice bars for live music, Florida offers you so many great activities that don't cost you much. Run the numbers and retire people, health and time is by far the most important things to have.
Hi Steve, where in Florida are you? Looking to move to Florida from NC but not sure where. Miami too expensive, Orlando too Disney,
@@emilianolausell Hi. Sarasota FL. Absolutely love it. Friendly people, wonderful beaches, a 45-60 minute drive to either Tampa or St Pete. Best of all worlds really. Unfortunately however in the past 18 months it has gotten very expensive to buy a home. I believe Sarasota is the second or third most popular city to move to in all the US therefore housing is an issue.
Geoff Thanks for all the great videos. You mention Roth conversion a lot but do not discuss how it implicates ACA subsidies. In our case the cost will go up dramatically if we do roth conversion now. DW is 63 and I am 68.
You must either be super wealthy or are trying to convert too much.
@@keithwiebe1787 Not so, quite the opposite trying to keep MAGI under $25k to get the maximum ACA subsidy. If we did a decent Roth conversion we would have to pay 5 x what we pay now to Florida Blue for DW's healthcare.
@@shokwaverider9158 How much were you trying to convert?
Great video. just talks too damn soft
You are so knowledgeable ! Thanks
Thanks Ted
Inflation....?
Inflation is generally understood to be part of retirement planning. That’s why it’s important to invest and beat inflation, rather than just put your money in a savings account and haven’t eaten away by inflation.
Thank you so much for these great advices!
I have what I think is a carefully planned retirement. The challenge I thought least likely has happened. An unexpected health crisis. Last Thursday I was admitted to the hospital with heart problems. When you hear 3 different doctors say your condition is “life threatening” your whole prospective changes. Thanks to the incredible care I received they literally saved my life. I’m so grateful!! The ongoing medical expenses for my condition will cost about 15K year (with insurance) till I reach Medicare. Fortunately I can cover it pretty easily. PLEASE include possible medical expenses in your financial plan!
Thanks for the comment Jeff. Best wishes on your health condition.
Is an extra 2087 of time spent at work per each additional year worked hours worth it
Something you have not mentioned that I am planning for is cost of living increases over the retirement years. We have built in a modest 3 percent cost of living increase to our budget/income so we don't run into a wall 10 or more years into retirement. ( worked a little longer to age 65 to do this. ) Thanks for all the expert advice you give.
My pleasure
My biggest issue was that I over funded retirement. When "life happens" came up, my only choice was to kill my retirement funds which is very expensive.
Take your net pay, and see the delta between that and what your retirement net is, the biggest factor is expenses and debt
Just turned 63, I have to be done with my high stress state job, but we're taking full time care of my 92 year old mother in law who is a physical invalid, ...we have tried and been turned down for every social service...I want to retire in October, (63.5) however ...
Postponing retirement pays off especially if you haven't logged enough good years to maximize Social Security Benefits (SSB). This can happen due to "zeros" in some of the working years e.g. if you, like me, spent a lot of time in university. If this is you, consider adding some good employment years to the end to really boost your SSB. If you can, I also recommend to wait until age 70 to maximize that SSB payment, should your portfolio fail or be down. You generally want to avoid drawing on a portfolio when it's near a historical low. Sufficient SSB can let you bridge that time to let your portfolio recover before you spend from it.
Interesting but not that helpful. Doesn't really help me figure out if I'm on track or not. Doesn't help fine tune what I need to do over the next year as I probably approach retirement.
EDIT for the replies below. Guys, I know he can't answer my specific situation and questions. My point is, that as a GENERAL discussion of the topic, this really didn't have much meat on the bone. Not Schmidt's fault, he was just reporting on a poorly conceived survey that for me wasn't very useful. If it knocked your socks off great.
There’s no way he can address your specific needs in a video intended for a broad audience. He has other videos where he shows what state people are at at different ages, maybe you should look for one of those. Also, you’d want a financial planner to help you figure out your own specific needs.
I'm sure he could do that for you if you want to hire him as your financial advisor. This is general good over all advice and not specific to any one particular person. Get a spread sheet and start putting your numbers down so you can figure out where you are. There are a ton of helpful apps and stuff online. Voya has their myorangemoney retirement calculator.
@@skibum6422 thanks for the suggestions. Already doing those kind of things but always interested to hear more data/ideas. Lots of moving parts.