I don't live to work, I work to live. I'm retiring the minute I can and am enjoying life until that time comes. If I make it to 80 I'll be shocked and if I do I am probably not going to be needing much to live on. No way in the world I would ever consider needing to plan to live into my 90's. Realistic assessment of your health and expected longevity is important, as is what matters to you in the short time you have on this earth alive.
agreed...i retired last year at 49 ...if i was this guy id retire today , sell that 375k house and get something in a cheaper area for 150k and pocket 225k to go along with the125k he has now to total 375k to live on until age 59.5 to access the 401k money (hopefully alot in Roth ira by then)...do roth conversions each year to show income to get insurance on ACA ...and take SS at 62 .....work part time NOW if he chooses....he has 2 kids , and you cant leave them your SS you delayed until 70 , especially if you never see 70 yo ...but you can leave them your portfolio you didnt bleed dry by using it until age 70 to make SS higher .....i lost one parent to health issues at 66 and the other to an accident at 67 , im glad i convinced them to take SS at 62...at least they got back SOME of what they worked their whole lives for and enjoyed a small amount of retirement from age 62 on
@@darlenepaul2918 First problem with what you are saying is that life expectancy you give is based upon making it to age 65. You have to make it to 65 for that to be a valid starting point. Starting from a younger age leads you to have a lower life expectancy. According to the SSA actuarial tables, someone at my age is expected to live to age 78 and someone at age 65 is expected to live to 81. The biggest problem is you missed where I said you need to be realistic about your individual health and genetics. Exactly one male relative has ever lived to 80 and most never made it out of their 60's. Based upon my genetics and current health it is simply stupid to plan for living to 90 or 100, and this is true for the vast majority. This is why I say it is important to have a realistic assessment of your health and longevity in mind for this type of planning. If you are in good health and longevity runs in your family, then absolutely plan for a longer horizon. You want to go a step further, it is 100% verified fact that spending DECLINES over the course of retirement (generally .8% annually), even after adjusting for inflation and across all income distributions. Using inflation adjusted straight-line expense planning is unrealistic and creates a distorted expectation of having a worse plan than you actually do. What this means is if you make it 30 years into retirement, you can expect to be spending 75% less then than you did when you started your retirement, NOT over 100% more.
My TD Ameritrade acct is now Schwab. Anyway, we retired before 50. Maybe a gap video for retirees younger than typical retirements accts and social insecurity can be accessed? Lots of us facing 10+ years. Thanks!
I feel like this is a good argument against focusing on paying off the house early. I know that's not always a finance first decision, but I guarantee he could have made more in the market than his interest rate.
I will be 55 in May 2024; I was laid off in the summer of 2023. I merged my 401K to a traditional IRA in October 2023 and decided to retire ASAP. We are moving abroad to live life to the fullest (I had a STROKE a few years ago, life is too short and I'm fearing another stroke). I am confused though, if moving “monthly” dividends earned from a traditional IRA to a Roth IRA will help at all? I can’t figure out if there is a mathematical benefit? I'm assuming to just pay the 10% penalty from my traditional IRA on what I take out before 59 ½? Monthly dividends are about $5500 and plan on needing $1000 from the $5500. My wife and I will have another income of about 3K per month from remote work. We will be in the 12% tax bracket at the end of 2024 until I dip into social security at the age of 62. I’ve watched dozens of videos and I’m not 100% sure if moving $ from a traditional IRA into a Roth IRA makes any sense at all? Your videos are EXCELLENT and thank you for any advice 😊😊
Anything moved from IRA to Roth IRA is not considered a penalty, it's a conversion. Sometimes its just about doing a little here and a little there. Thank you so much for watching!
From SSA.gov: The increase is based on your date of birth and the number of months you delay the start of your retirement benefits. If you start receiving retirement benefits at age 70, you'll get 124 percent of the monthly benefit because you delayed getting benefits for 36 months. www.ssa.gov/benefits/retirement/planner/1960-delay.html#:~:text=The%20increase%20is%20based%20on,getting%20benefits%20for%2036%20months.
I’m confused. Single man having $1M at age 60 with a nice SS check coming in at 62 and owns a $400K home paid off. This money should last. Stop working at 60.
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I don't live to work, I work to live. I'm retiring the minute I can and am enjoying life until that time comes. If I make it to 80 I'll be shocked and if I do I am probably not going to be needing much to live on. No way in the world I would ever consider needing to plan to live into my 90's. Realistic assessment of your health and expected longevity is important, as is what matters to you in the short time you have on this earth alive.
Right now the average man who makes it to 65 will live to aprox. 84.Its 87 for women.You better plan for at least that long.
Thanks for sharing!
agreed...i retired last year at 49 ...if i was this guy id retire today , sell that 375k house and get something in a cheaper area for 150k and pocket 225k to go along with the125k he has now to total 375k to live on until age 59.5 to access the 401k money (hopefully alot in Roth ira by then)...do roth conversions each year to show income to get insurance on ACA ...and take SS at 62 .....work part time NOW if he chooses....he has 2 kids , and you cant leave them your SS you delayed until 70 , especially if you never see 70 yo ...but you can leave them your portfolio you didnt bleed dry by using it until age 70 to make SS higher .....i lost one parent to health issues at 66 and the other to an accident at 67 , im glad i convinced them to take SS at 62...at least they got back SOME of what they worked their whole lives for and enjoyed a small amount of retirement from age 62 on
@@darlenepaul2918 First problem with what you are saying is that life expectancy you give is based upon making it to age 65. You have to make it to 65 for that to be a valid starting point. Starting from a younger age leads you to have a lower life expectancy. According to the SSA actuarial tables, someone at my age is expected to live to age 78 and someone at age 65 is expected to live to 81.
The biggest problem is you missed where I said you need to be realistic about your individual health and genetics. Exactly one male relative has ever lived to 80 and most never made it out of their 60's. Based upon my genetics and current health it is simply stupid to plan for living to 90 or 100, and this is true for the vast majority. This is why I say it is important to have a realistic assessment of your health and longevity in mind for this type of planning. If you are in good health and longevity runs in your family, then absolutely plan for a longer horizon.
You want to go a step further, it is 100% verified fact that spending DECLINES over the course of retirement (generally .8% annually), even after adjusting for inflation and across all income distributions. Using inflation adjusted straight-line expense planning is unrealistic and creates a distorted expectation of having a worse plan than you actually do. What this means is if you make it 30 years into retirement, you can expect to be spending 75% less then than you did when you started your retirement, NOT over 100% more.
Thanks for the example. This is closet example to my situation. Puts some things in perspective. Appreciate the content.
Glad it was helpful!
Thank you
You're welcome!
My TD Ameritrade acct is now Schwab. Anyway, we retired before 50. Maybe a gap video for retirees younger than typical retirements accts and social insecurity can be accessed? Lots of us facing 10+ years. Thanks!
Great idea 😊
Love your use of the EKG software in this video, Drew. Long time follower here… I hope you keep growing your channel and followers! 👍
Awesome, thank you!
Awesome explanation of this example and it fits my criteria perfectly.
Thank you.
Glad it was helpful!
I feel like this is a good argument against focusing on paying off the house early. I know that's not always a finance first decision, but I guarantee he could have made more in the market than his interest rate.
It's not a bad argument green lantern. I agree in some cases.
Great start.
Thanks!
Hello from St.Louis
Hello from Tampa 🏝️
He can live overseas as well
Yes🎉
Plumbing can be devastating on the body if you plumb homes and install septic tanks
Yes it can. Tough job.
I will be 55 in May 2024; I was laid off in the summer of 2023. I merged my 401K to a traditional IRA in October 2023 and decided to retire ASAP. We are moving abroad to live life to the fullest (I had a STROKE a few years ago, life is too short and I'm fearing another stroke). I am confused though, if moving “monthly” dividends earned from a traditional IRA to a Roth IRA will help at all? I can’t figure out if there is a mathematical benefit? I'm assuming to just pay the 10% penalty from my traditional IRA on what I take out before 59 ½? Monthly dividends are about $5500 and plan on needing $1000 from the $5500. My wife and I will have another income of about 3K per month from remote work. We will be in the 12% tax bracket at the end of 2024 until I dip into social security at the age of 62. I’ve watched dozens of videos and I’m not 100% sure if moving $ from a traditional IRA into a Roth IRA makes any sense at all? Your videos are EXCELLENT and thank you for any advice 😊😊
Anything moved from IRA to Roth IRA is not considered a penalty, it's a conversion. Sometimes its just about doing a little here and a little there. Thank you so much for watching!
He can always dabble with side work when ever he *wants* or needs.
I like that idea!
Drew, it is 24% increase not 124%. Please correct.
From SSA.gov: The increase is based on your date of birth and the number of months you delay the start of your retirement benefits. If you start receiving retirement benefits at age 70, you'll get 124 percent of the monthly benefit because you delayed getting benefits for 36 months.
www.ssa.gov/benefits/retirement/planner/1960-delay.html#:~:text=The%20increase%20is%20based%20on,getting%20benefits%20for%2036%20months.
@@yourfinancialekg 1.24%. Not 124%. 8% per year.
I wan t a soft retirement when am 50. What can I do? Am 42 now
Work a couple more jobs or make over 6 figures putting 50% into the market
Keep contributing and bring your expenses down.
Moral of the story. Be a plummer in Montana.
Dude, you aren't too far from the truth
He should switch the SEP to a Solo 401k
Great advice!
The title is me
Awesome!
I’m confused. Single man having $1M at age 60 with a nice SS check coming in at 62 and owns a $400K home paid off. This money should last. Stop working at 60.
Taxes & inflation are something to think about
Just don’t live in California and you should be fine.
Truth