I'm 66 and about 30 years ago I started an IRA...for about 2 months. Withdrew the money and paid the penalty. I opened it because so many people said that was smart. But I didn't really understand it all due to my lack of interest in such things. I also didn't understand what the future would be like. My thinking was to use that money, and time understanding and managing an IRA was better spent creating more current income. That worked out for me and retired at 45 but not with a pile of money. Mostly retirement was funded by a big lifestyle change, reduced expenses to $600/mo the past 10 years or so. I wish there was a better term than "retirement" or even "early retirement" for the period of "early" until "traditional". At sometime in the next 4 years I'll take SS, get a reverse mortgage line of credit and rent part of my house as I spend more time traveling all of which will be traditional retirement.
47:20 Long term care is not something I've ever heard retired family friends ever talk about. I planned for retirement and now at 66 am planning for long term care while still very healthy. The concept of living in a semi-private room or any care home is not appealing to me. The cost is unlikely something I could fund for very long. My plan is to offshore my long term care. First I found out about very nice developments in countries like Costa Rica just for foreigners to retire to and will provide long term care when needed. Stay in your home and cost drops from $100k/yr to maybe $20k/yr. Then I found out about SE Asia. I'm a single US man and was surprised young attractive women in SE Asia were attracted to some foreign men. Yes, of course they're attracted to the security a foreigner can provide, but that's no different from any other place in the world. By instinct women are attracted to providers and men to young women. No logic to it, just the way humans evolved. But many of these women like taking care of a house and husband. Huge age gaps are no issue in SE Asia. Many cases of these women sticking with their foreigner through any medical issue. Impressive. Plus a live-in housekeepers can be $100-200/mo plus food. A live-in fully trained Registered nurse $500-600/mo. A trained live-in caregiver able to lift me is about $1000/mo. Those are all no problem for my budget. So in theory I could have a loving wife plus hired caregivers and stay in my house all for far less cost than staying in the US.
Like Warren Buffet said, dividends are only good if the business you’re investing into can’t make good use of that capital. The way I see it if you have a $1 million at some point, that’d be enough to create a portfolio that would pay you between 50k-70k in dividend income...
Having a counselor is essential for portfolio diversification. My advisor is Jenny Pamogas Canaya* who is easily searchable and has extensive knowledge of the financial markets
55:35 Non-financial aspects...I agree 100%. I see so many of my male friends (assume true for their wives too but I don't know) look super unhappy in their marriage and retirement makes it even worse. They don't seem to even consider ending the marriage. Maybe they think they can't date again. Maybe they know splitting assets will wreck their retirement. It seems very sad to me. I divorced at 59 after 18 years of an unremarkable marriage. I didn't realize how unhappy I really was until after the divorce. The freedom was wonderful and suddenly I was back to being able to do so many more things. Marriage = compromise which many people say like it's a good thing. IMO couples should seriously consider divorce before retirement as part of retirement planning. There are options. For example maybe you want to stay together but want more freedom and Living Apart Together would work. Better to face reality sooner than later imo.
Your assistant is your CPA? Sorry, she’s a licensed professional. A CFA is just an industry designation. You should be working for her.😂 She must be young.
Excellent episode, thank you for the post with Dr. Pfau!
EXCELLENT content. Thank you both.
I'm 66 and about 30 years ago I started an IRA...for about 2 months. Withdrew the money and paid the penalty. I opened it because so many people said that was smart. But I didn't really understand it all due to my lack of interest in such things. I also didn't understand what the future would be like. My thinking was to use that money, and time understanding and managing an IRA was better spent creating more current income. That worked out for me and retired at 45 but not with a pile of money. Mostly retirement was funded by a big lifestyle change, reduced expenses to $600/mo the past 10 years or so.
I wish there was a better term than "retirement" or even "early retirement" for the period of "early" until "traditional". At sometime in the next 4 years I'll take SS, get a reverse mortgage line of credit and rent part of my house as I spend more time traveling all of which will be traditional retirement.
47:20 Long term care is not something I've ever heard retired family friends ever talk about. I planned for retirement and now at 66 am planning for long term care while still very healthy.
The concept of living in a semi-private room or any care home is not appealing to me. The cost is unlikely something I could fund for very long.
My plan is to offshore my long term care. First I found out about very nice developments in countries like Costa Rica just for foreigners to retire to and will provide long term care when needed. Stay in your home and cost drops from $100k/yr to maybe $20k/yr.
Then I found out about SE Asia. I'm a single US man and was surprised young attractive women in SE Asia were attracted to some foreign men. Yes, of course they're attracted to the security a foreigner can provide, but that's no different from any other place in the world. By instinct women are attracted to providers and men to young women. No logic to it, just the way humans evolved. But many of these women like taking care of a house and husband. Huge age gaps are no issue in SE Asia. Many cases of these women sticking with their foreigner through any medical issue. Impressive. Plus a live-in housekeepers can be $100-200/mo plus food. A live-in fully trained Registered nurse $500-600/mo. A trained live-in caregiver able to lift me is about $1000/mo. Those are all no problem for my budget. So in theory I could have a loving wife plus hired caregivers and stay in my house all for far less cost than staying in the US.
Like Warren Buffet said, dividends are only good if the business you’re investing into can’t make good use of that capital. The way I see it if you have a $1 million at some point, that’d be enough to create a portfolio that would pay you between 50k-70k in dividend income...
Having a counselor is essential for portfolio diversification. My advisor is Jenny Pamogas Canaya* who is easily searchable and has extensive knowledge of the financial markets
55:35 Non-financial aspects...I agree 100%. I see so many of my male friends (assume true for their wives too but I don't know) look super unhappy in their marriage and retirement makes it even worse. They don't seem to even consider ending the marriage. Maybe they think they can't date again. Maybe they know splitting assets will wreck their retirement. It seems very sad to me.
I divorced at 59 after 18 years of an unremarkable marriage. I didn't realize how unhappy I really was until after the divorce. The freedom was wonderful and suddenly I was back to being able to do so many more things. Marriage = compromise which many people say like it's a good thing. IMO couples should seriously consider divorce before retirement as part of retirement planning. There are options. For example maybe you want to stay together but want more freedom and Living Apart Together would work. Better to face reality sooner than later imo.
What an Absolutely sad and secular post.....
Your assistant is your CPA? Sorry, she’s a licensed professional. A CFA is just an industry designation. You should be working for her.😂 She must be young.
I am sure after he reads this, he will switch roles.
It’s backwards, but I get your humor.