Everyone's "magic number" is different depending on what you want your retirement lifestyle to look like and what you're used to in pre-retirement. If you're retiring early you also need to consider the extra years you will need to live off your savings. It might be more than the general 30 year rule most financial advisors will look at.
I’ve worked hard to save about $800,000 for retirement, and now I’m ready to turn my savings into a paycheck. But how much can I afford to withdraw from savings and spend is what I don’t know. If I spend too much, I risk being left with a shortfall later in retirement. But if I spend too little, I may not enjoy the retirement I envisioned. What’s your advice on this please?
stay flexible - if the market performs poorly, you may not be comfortable increasing your spending at all, but if the market does well, you may be more inclined to spend more on some ''nice to haves''
@speak2selwyn such an eye opener! never heard or used the 4% rule before. I spend what I want and when I want, however i'm interested in supplementing my streams of income by investing, mind if i look up your advisor please?
@speak2selwyn thanks for the lead, just searched Karen by her full name, easily spotted her consulting page and was able to schedule a call session, she seems very professional
I think the 4% rule is a good general guideline but if you're not sure then I'd definitely recommend speaking with a financial advisor. There are a lot of variables to consider when retiring (age, life expectancy, how much you need, other income sources etc) and an advisor can show you different alternatives that are tailored to your specific situation. I would avoid looking at financial advisor recommendations from anyone in the youtube comments (including my channel). There are lots of people who use social media platforms to try and prey on good people asking honest questions. It's far too easy to get scammed for money that way. Anyone can make a beautiful looking "financial advisor" website that seems legit! Don't waste your time! Instead ask your family or friends who they'd recommend and feel free to try a few different advisors to find one who is a good fit for you and your situation. I wish you all the best on your financial journey.
I find it very difficult to estimate how much money I think I'm going to spend per year. Does having lots of extra free time mean spending more on entertainment, traveling, meals out, activities or will it stay mostly the same as now...???
I think that depends on your lifestyle. Generally, I don't think most people radically change their lifestyles as they move into retirement. Perhaps more traveling but hopefully you've factored that into your overall retirement plan.
I think it's interesting that the 1.8 million answer was based on a survey conducted by CS. Clearly these weren't average Americans based on the amounts most people have saved for retirement. I'm just glad I will have a pension that will help out with my own retirement (when I get there).
This is timely thanks, just subscribed for you.
Thanks good video
Great video, thank you for sharing this important valuable information for all of us.
What a great channel. Your videos are absolute gold.
@@BrainGlue thanks mate 👍🏻
I'm glad that I still have some years left to accumulate some more retirement savings
I have saved 4.5 million and still very scared to retire in 2024...
Everyone's "magic number" is different depending on what you want your retirement lifestyle to look like and what you're used to in pre-retirement. If you're retiring early you also need to consider the extra years you will need to live off your savings. It might be more than the general 30 year rule most financial advisors will look at.
There are many "depends" that matter in any analysis. But the simplest thing to consider is how much you will spend.
I’ve worked hard to save about $800,000 for retirement, and now I’m ready to turn my savings into a paycheck. But how much can I afford to withdraw from savings and spend is what I don’t know. If I spend too much, I risk being left with a shortfall later in retirement. But if I spend too little, I may not enjoy the retirement I envisioned. What’s your advice on this please?
I'd highly recommend using the 4% rule, maybe you'd know just how much to spend after retirement
stay flexible - if the market performs poorly, you may not be comfortable increasing your spending at all, but if the market does well, you may be more inclined to spend more on some ''nice to haves''
@speak2selwyn such an eye opener! never heard or used the 4% rule before. I spend what I want and when I want, however i'm interested in supplementing my streams of income by investing, mind if i look up your advisor please?
@speak2selwyn thanks for the lead, just searched Karen by her full name, easily spotted her consulting page and was able to schedule a call session, she seems very professional
I think the 4% rule is a good general guideline but if you're not sure then I'd definitely recommend speaking with a financial advisor. There are a lot of variables to consider when retiring (age, life expectancy, how much you need, other income sources etc) and an advisor can show you different alternatives that are tailored to your specific situation. I would avoid looking at financial advisor recommendations from anyone in the youtube comments (including my channel). There are lots of people who use social media platforms to try and prey on good people asking honest questions. It's far too easy to get scammed for money that way. Anyone can make a beautiful looking "financial advisor" website that seems legit! Don't waste your time! Instead ask your family or friends who they'd recommend and feel free to try a few different advisors to find one who is a good fit for you and your situation. I wish you all the best on your financial journey.
Thanks for clarifying, that 1.8 million dollars number is very frightening...
Your welcome.
I find it very difficult to estimate how much money I think I'm going to spend per year. Does having lots of extra free time mean spending more on entertainment, traveling, meals out, activities or will it stay mostly the same as now...???
I think that depends on your lifestyle. Generally, I don't think most people radically change their lifestyles as they move into retirement. Perhaps more traveling but hopefully you've factored that into your overall retirement plan.
I think it's interesting that the 1.8 million answer was based on a survey conducted by CS. Clearly these weren't average Americans based on the amounts most people have saved for retirement. I'm just glad I will have a pension that will help out with my own retirement (when I get there).
That was my first thought too. Having a decent pension from work will definitely make retirement easier 👍🏻
No amount is ever enough. Work till you can't.
Not this. If you are unhappy working, then dont work. If you dislike going to work, and dislike being there, then quit.
@@nobeliefisok9174 Or, make yourself happy. Will yourself to enjoy your work. -Boxer, from Animal Farm.