Stop Calculating Retirement Expenses Wrong (Do This Instead)

Поділитися
Вставка
  • Опубліковано 24 гру 2024

КОМЕНТАРІ • 203

  • @onedegreeadvisors
    @onedegreeadvisors  2 місяці тому +8

    **WARNING** There has been an increase in bots and spammers commenting on our videos. Sometimes the interactions may look real, but are easily identified by commenters promising high returns or promoting other 'advisors'. Please report these comments if you see them so we can keep our community safe from these scams. I will never try to contact you; you can only get in touch with me via the link in the description of the videos.

  • @Dave-sw2dm
    @Dave-sw2dm 4 місяці тому +63

    Going into retirement knowing you might have to reduce your spending one day is still better than continuing work.

    • @meibing4912
      @meibing4912 2 місяці тому +2

      People are very adaptable and needs are reduced as you age. Far most get along well with what they have. However, I do find that many people think/imagine they can continue their current lifestyle into retirement in spite of their small(-ish) savings. People need to be much more realistic about finances.

  • @user-od9iz9cv1w
    @user-od9iz9cv1w 2 місяці тому +9

    We started keeping track of where the money goes long before we retired. It wasn't a budget, it was a record. Putting all variable expenses on visa makes it easy. Groceries, liquor eating out and fun stuff was far more than we could ever have guessed. After checking this now and then we got some pretty good estimates. Everything got adjusted when we retired. The work oriented stuff went down.... gas, lunch, drycleaning etc. And we added big categories for retirement travel. In reality we hid in the house avoiding COVID, but that's another adjustment. I recommend that people do this early. When you see how much you spend you kind of do a cost benefit analysis. What do I get out of that cable TV bill?

    • @nanticokeroads8966
      @nanticokeroads8966 2 місяці тому +2

      Five years before retirement I did a spreadsheet for each year with monthly expenses for housing, groceries, electric, internet/cable, autos (maintenance/ins), dinning out,
      ect, then totaled each month. At the end of the year this gave me good idea of what I spent, and which months were the most costly like when ins, taxes were paid. After five years it also showed how much things increased year over year. What ever you do don't wait until retirement to start figuring it. If you think you know how much you need try living on it for a few months before you tetire.

    • @paulclough8541
      @paulclough8541 Місяць тому +2

      I started this 4 years before retirement and have continued in retirement for 16 years. I find that this is the most accurate way to do it. It also alerts you to expenses that you can cut out or reduce.

    • @user-od9iz9cv1w
      @user-od9iz9cv1w Місяць тому

      @@paulclough8541Good stuff. People avoid budgets. This just full transparency.

  • @Paul-GrnHil
    @Paul-GrnHil 2 місяці тому +10

    Estimating expenses is easy. I don’t know about most folks but I charge everything on my credit card and pay it off each month. I might hit an ATM every month. Add up your credit card, ATM and any other bills you might have and you have a budget. It’s unlikely these expenses will go down in retirement and you might want to add in some extra travel and leisure expenses, especially for the first 5-6 years of your go-go retirement phase. Then add in medical expenses that will no longer be covered from their employer plan.

  • @jackwalfoort8419
    @jackwalfoort8419 2 місяці тому +6

    This was my experience. Way underestimated "unexpected ezpenses". Just paid $1400 for a broken tooth. Something comes up every month. Car repair , appliance dies. I would budget $1000 a mo th for random expenses.

  • @daisyreinacher5022
    @daisyreinacher5022 4 місяці тому +18

    Our expenses didn’t go down at all. Medical, dental and travel made up for anything that could have been reduced.

    • @onedegreeadvisors
      @onedegreeadvisors  4 місяці тому +4

      This catches many retirees by surprise. Thanks for watching, Daisy!

  • @Riggsnic_co
    @Riggsnic_co 2 місяці тому +114

    Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.

    • @Crystal__sage-b7k
      @Crystal__sage-b7k 2 місяці тому

      True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.

    • @Nicole_Andys
      @Nicole_Andys 2 місяці тому +1

      Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.

    • @GavinRay_q9x
      @GavinRay_q9x 2 місяці тому

      please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?

    • @Nicole_Andys
      @Nicole_Andys 2 місяці тому

      Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

    • @GavinRay_q9x
      @GavinRay_q9x 2 місяці тому

      I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip

  • @xlavahott4547
    @xlavahott4547 3 місяці тому +5

    The answer to all financial and retirement questions is always "It depends".

  • @elinsd
    @elinsd 4 місяці тому +11

    I became debt free and own my house free and clear before retirement. I’ve been spending based on a sustainable percentage of my good amount of savings and not what I want to spend which could run into over spending. I’ve been sleeping well at night and feeling safe and comfortable.

  • @freedivemd9366
    @freedivemd9366 2 місяці тому +9

    I don't know why people think living in retirement will be cheaper. Think about it - as you are working and living and going about your daily life you spend money on whatever it is that you spend on. Then one day you retire - but you are still going to go about living your daily life spending the same living expenses. Why would it suddenly be any less? If fact, while working, you may have had a really good deal on health insurance (and not even realized how good a deal it was). Private insurance or medicare is going to cost you even more!

    • @surpriserakins9067
      @surpriserakins9067 2 місяці тому +3

      Reduced travel costs due to not commuting, no need to buy work clothes etc

    • @briand4000
      @briand4000 2 місяці тому +1

      Valid points. Remember the three phases: go-go, slow-go and no-go. Yes, spending will likely be equivalent or higher the first third of the retirement. Then, the traveling bug wanes, the energy levels diminish and it costs very little to watch TV and mow the lawn. The no-go years can bleed money due to medical so it's a curve, not a straight line.

    • @johnbrown1851
      @johnbrown1851 2 місяці тому

      Plus, you have more free time to spend money....

    • @mikepeterson6052
      @mikepeterson6052 21 день тому

      My medical went up for 3 years in TX, but not as much as my expenses went down. I was on COBRA and then catastrophic insurance, but now I get cheap medicaid in AR, while living off of after tax, long term capital gains. I moved from a large city to a small town and stopped eating out every meal to only eating out twice a week. I also lost 40+ lbs. My expenses dropped from $36K a year to $18K a year. After 11 years, I am no longer ultra conservative and eat out 4-6 times a week. My spending is now $24K a year, although my 2008 truck is pretty ragged. I am looking forward to Medicare in 2026 and larger withdrawals from my 401K. Maybe get a newer car.

  • @FlorentGulliver
    @FlorentGulliver 3 місяці тому +91

    I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for...

    • @FlorentGulliver
      @FlorentGulliver 3 місяці тому

      @CarolineBrooklyn 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..

    • @FernandoBowen-78
      @FernandoBowen-78 3 місяці тому

      @CarolineBrooklyn The crazy part is that those advisors are probably outperforming the market and raising good returns but some are charging fees over fees that drain your portfolio. Is this the case with yours too?

    • @FlorentGulliver
      @FlorentGulliver 3 місяці тому

      @CarolineBrooklyn I will give this a look, thanks a bunch for sharing.

    • @luckymeat3050
      @luckymeat3050 3 місяці тому +5

      Scammer

    • @1stamendmentmedia464
      @1stamendmentmedia464 3 місяці тому +6

      Do not fall for any scammers offering financial advice or recommending financial advisors in the comment section of UA-cam.

  • @DanteInfernski22
    @DanteInfernski22 3 місяці тому +4

    The best way is to start with current after tax income. Whether the mortgage is paid, the kids move out or whatever else happens, it is what they are used to having.

    • @737smartin
      @737smartin 12 днів тому +1

      This is what I came to. I called it "Subtractive Method." I took my anual income and SUBTRACTED everything not spent (invested, saved, etc). Then further SUBTRACTED what may be needed by estimating probable income tax reductions.

  • @KJFC388
    @KJFC388 2 місяці тому +3

    The reason the 80% of your current salary rule exists is because you no longer pay FICA or contribute to a 401K when you retire

  • @DavidDLee
    @DavidDLee 2 місяці тому +3

    This looks very similar to budgeting. The only difference I see is the categorizing of certain current expenses.
    It still fails to account for big ticket items (cars, home improvements, maybe travel).
    Not impressive.

    • @onedegreeadvisors
      @onedegreeadvisors  2 місяці тому

      Thanks for your feedback and thanks for watching! Backing into your living expenses based on actual spending is the objective. Generally, budgeting adds up small expenses (that most people tend to underestimate which is the problem). Additionally, certain expenses like payroll taxes and retirement savings would drop off once one retires. Big ticket items can absolutely be included in this calculation or as separate goals, e.g.,., saving for a home remodel. Happy retirement!

  • @Susanhartman.
    @Susanhartman. 25 днів тому +5

    People who are able to retire early are lucky . I have 15 months till 65 and need to look at calling it quits, my only fear is running out of funds much later, thus keen on investing. What could be the safest possible ways to invest for cashflow, in order to afford lifestyle after retirement?

    • @ThomasChai05
      @ThomasChai05 25 днів тому +5

      consider investment planning, learning from a well experienced advisor is invaluable

    • @mariaguerrero08
      @mariaguerrero08 25 днів тому +4

      That's right. I am a wife, mother of four and new grandmother, 28 years in Corporate America, retired recently at 57 after discovering the freedom investing could provide, been contributing to my portfolio since the pandemic in early 2020, and have grown a $250,000 savings account to almost 1 million, credits to my financial coach.

    • @mikegarvey17
      @mikegarvey17 25 днів тому +4

      @@mariaguerrero08That's quite impressive! Can you share more information about your financial advisor?

    • @mariaguerrero08
      @mariaguerrero08 25 днів тому +3

      My CFA ’Izella Annette Anderson’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

    • @91ScottieP
      @91ScottieP 25 днів тому +2

      Thanks for the info, i found her website and sent a message hopefully she replies soon.

  • @conniechapin9278
    @conniechapin9278 4 місяці тому +8

    I don't see that you have taken into account the go-go, slow-go, and no-go years in retirement. Or SS money starting. Both will change how much is needed from investments.

    • @onedegreeadvisors
      @onedegreeadvisors  4 місяці тому

      Hi Connie, this is to target initial retirement expenses (then it can be refined as spending changes). SS income and other sources of income would apply toward that expense target with the difference most likely coming from portfolio withdrawals for most people. Thanks for watching!

  • @SidinPhilly
    @SidinPhilly 2 місяці тому +1

    We do not really need a budget but a tracking of past year expenses. Retirement means no contribution to degrees accounts and reduction of tax payments (esp by careful planning to reduce taxable income).

  • @sixstringsdaddy2477
    @sixstringsdaddy2477 3 місяці тому +21

    I don't get it, you're doing exactly what you said doesn't work, look at what you spend today and decide what will stay/disappear/add in retirement. I got absolutely no value out of this video.

    • @alanyoung159
      @alanyoung159 26 днів тому

      Yeah, was a bit going around in circle type math. The one thing that didn't seem right was putting in 5500 for expenses, when technically, they need more for income taxes, property taxes, healthcare expenses, etc. These all wouldn't drop off, so it needs to be added to the 5500

  • @robertnelson4460
    @robertnelson4460 Місяць тому +2

    Retired doesn't mean stop working, it means, "change your lifestyle to grow old with grace and dignity"
    You may still choose to work, but you choose to work because you want to.

  • @LesterHess-t1x
    @LesterHess-t1x 23 дні тому +365

    I'm hoping to retire next year at 55. My goal next year is to be more serious and consistent with my investments I've been investing since I was 22. 2025 is going to be more serous for me investing consistently for the long term. starting to save for a house down payment. I want to invest more than $105k, but I'm not sure on how to mitigate risk.

    • @wmwoods-l4f
      @wmwoods-l4f 23 дні тому +4

      Its unclear which stocks and sectors will lead the market in the next uptrend. It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory.

    • @karitanaw
      @karitanaw 23 дні тому +3

      Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert

    • @speak2Gary
      @speak2Gary 23 дні тому +3

      Being heavily liquid, I'd rather not reinvent the wheel. Since this strategy works for you, how can I contact your advisor?

    • @karitanaw
      @karitanaw 23 дні тому +3

      I definitely share your sentiment about these firms. Finding financial advisors like ‘Annette Marie Holt’ 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.

    • @speak2Gary
      @speak2Gary 23 дні тому +2

      Thank you for this Pointer. It was to find her handler, She seems very proficient and flexible. I booked a call session with her.

  • @johnwietfeldt6238
    @johnwietfeldt6238 4 місяці тому +5

    This new method seems defective compared to just tracking your spending over time. It doesn’t seem to account for one time biggies like a new roof or sewer repair. Or you need a new car, or your health care costs if you or your spouse become I’ll or disabled. These one time costs occur and you will encounter them over time if you track your spending.

    • @onedegreeadvisors
      @onedegreeadvisors  4 місяці тому +2

      Great thought, John - It actually does because it's based on what you earn during working years (and use to pay for a new roof, repairs, etc.) The exception would be if you were gifted money and used that to pay for the new roof or repairs. In that case, you would need to add the gifted money into income/inflows. Remember, we are not saying not to track your expenses. For those who do it, it's great. Both methods combined and compared can add clarity. It's just that most people miss the exact things you are mentioning when tracking because they are thinking of what they pay on a regular basis and not those biggies! Thanks for watching!

  • @steves3234
    @steves3234 4 місяці тому +1

    I'm budgeting to spend 30k less per year than my financial planner wants me to. And based on his advice I was told I would not run out of money.

  • @roosenlodewijkwiggers4594
    @roosenlodewijkwiggers4594 3 місяці тому +13

    I am sorry, but your approach IS budgetting… I understand you want to pitch a new approach, but it is just more realistic budgetting.

  • @douglastarvestad186
    @douglastarvestad186 2 місяці тому +4

    I have a better idea. Download from your bank an entire year of your expenses. Take out expenses that you know will be gone such as savings expenses or maybe your mortgage. Add that up. 15 minutes done. What you spent in the last year is a good indicator of what you will spend next year. I am starting this 9 years before retiring. I put this figure next to my net income in a spreadsheet. Then add 2.5% for inflation put next, to your estimated income. Do annually to adjust and test. I have this out to 100 with adjustments for the first few years of heavy travel and later for slowing down, but then up again for higher healthcare and a retirement home. Kinda fun to do and as you check and adjust you will feel more confident on your nest egg and your cash flow. Remember, spreadsheets are your friend.

    • @kathrynherzog6784
      @kathrynherzog6784 Місяць тому

      This is what I’ve been doing for years now. It helped me be realistic about how much I should be budgeting for every day expenses. Now so meuf easier to think about what I might spend in the future.

    • @RockerProf
      @RockerProf Місяць тому

      I did this for multiple years. My advice is to then take out the things you know you're not going to be spending money on, such as lunches at work or work clothes or gas to work, and then add in more money for medical expenses, because that's where the expenses increase. Travel is an entirely separate issue and should be treated as a separate line item. Because if worse comes to worse, nobody has to travel. And at a certain age, any travel allowances are going to be replaced by more medical expenses and home care

  • @garyrobinson6247
    @garyrobinson6247 28 днів тому

    adding up expenses is not an estimate, it is what we are currently spending, use your bank account and credit card statements to ensure you dont miss anything. You cant predict inflation so that is really the only unknown. Plan for the worst and adjust accordingly based on reality.

  • @jefft9729
    @jefft9729 Місяць тому +1

    So you list the “fixed expenses.” But then how did you arrive at the couple’s variable expenses? What did you do differently from the two (inefficient/inaccurate) methods you described in the beginning?

    • @onedegreeadvisors
      @onedegreeadvisors  Місяць тому +1

      Hi Jeff, At around 10:10 you can see how we back into the living expenses (instead of having to add them all up). Thanks for watching!

    • @jefft9729
      @jefft9729 Місяць тому

      @@onedegreeadvisors Thank you. I suppose the value of itemizing the variable expenses is, if a cutback in spending is needed, you would have a better handle on what to do. A lump sum variable amount is of relatively little value if you need to fine tune your spending.
      Best regards

  • @meibing4912
    @meibing4912 2 місяці тому +1

    I look at how much money I had JAN 1 and DEC 31 and earned in a year. Subtract my savings (not needed in retirement). Neutralize housing. Do for the last 3 years to get my yearly baseline expense. Housing in retirement is then added (some tax advantages apply). Think this is rock solid and very easy to do. If your ends do not meet you will have to look at a more detailed budget to identify excess spending and adjust future life style and expenses as needed.

  • @rs4328
    @rs4328 2 місяці тому +2

    Retirement is awesome and you don't spend nearly as much as when working. You make what you have work. All this fear of running out of money is nonsense. You'll want to keep your brain going so work a bit if you need more.

  • @roosenlodewijkwiggers4594
    @roosenlodewijkwiggers4594 3 місяці тому +2

    Calling groceries ‘variable’ cost… I would not class it like that. You need it every day, the amount needed don’t change much over time, the price change, but that you factor in prediction the increase of price over time. 2% inflation is ofc not realistic, because it is never exactly that. My approach to cost analysis is to have bucket: necessary fixed costs (ie morgage/medicare), necessary variable cost, incidental variable cost and lastely chosen spending. This last bucket is what people underestimate, but it is also the bucket you do have influence on and you should get used to adjusting according to your cashflow in retirement.

  • @bruceanderson8179
    @bruceanderson8179 4 місяці тому +9

    It's the lack of having a budget prior to retirement that makes "estimating" a retirement budget inaccurate. We maintained a budget for decades, bascially using net earned income and living expenses. When we were 5 years out from our desired retirement age we used our actual expenses as a basis for retirement living expenses and we adjusted with each year's review of our progress toward our retirement goal. We did allow for inflationary pressures with a 3% inflation rate for general expenses and a 5% inflation rate for health insurance expenses. We also used our combined effective tax to determine what that liability would be seeing how that would now be coming 'out-of-pocket' as opposed to a reduction to pre-retirement gross income. We're 7 years retired now, and the result? Pretty much dead on with our projections. I suppose if you've haven't had a budget history prior to retirement the estimation of a retirement budget is subject to gross inaccuracies.

    • @onedegreeadvisors
      @onedegreeadvisors  4 місяці тому +1

      Yes, we see that making a difference in accuracy. Thanks for watching!

    • @j10001
      @j10001 4 місяці тому

      Nicely done. Congratulations!

    • @mjohnson1563
      @mjohnson1563 3 місяці тому +1

      Great comment. Many people don’t live on a budget, so the concept of suddenly having to live on one in retirement is a new learning experience. I think that’s how the 80% rule was probably derived. Oversimplified because most people aren’t doing what they should be pre-retirement as far as budgeting. Then they are faced with the “I’m living on a fixed income” stress. However, if you’ve budgeted along the way and know what you need and have, it’s planned, predictable, and manageable.

    • @robinbatts8498
      @robinbatts8498 3 місяці тому +1

      Thank you for this affirmation! We too have been maintaining a budget for nearly 30 years, and heading into retirement 1 Jan 2025.. we’ve also had a retirement budget mapped out for at least 15 years, finessing it over time as we’ve learned and planned more…. But there’s still that tiny bit of uncertainty heading into this next phase of life.. I feel encouraged!

  • @SimonEllwood
    @SimonEllwood Місяць тому

    I have a bank account so do not need to estimate anything I can just look at spending. My banking app can show my spending categorised.

  • @derfel6969
    @derfel6969 2 місяці тому +1

    Expense delta is amplify by taxes too. A $1,000 delta is really more like a $1,250 in real withdrawal terms.

    • @onedegreeadvisors
      @onedegreeadvisors  Місяць тому

      True. Many miss that. Here's a video that addresses that issue.
      "62 with Pre-Tax Savings? Here's How to Slash Your Taxes" ua-cam.com/video/5w5_e5wzzCE/v-deo.html

  • @Cynicalgeek743
    @Cynicalgeek743 20 днів тому

    Calculating what you actually spend isn’t that hard if you only have one bank account. Download 3 years statements into Excel, and use the sum function to add all the debit items up. Scan the debit items for sizeable, non-repeat expenditure (including mortgage if you’ve paid this off) and deduct these from the total. Then divide by 3. Doesn’t matter if you took out cash and spent it, doesn’t matter if you spent money on your credit card if it’s all being paid for from the same account. Add 5% to compensate for inflation in years 1 and 2 if you want to get fancy. Ta-da! It doesn’t matter what pots your expenditure can be categorised into, only the total.

  • @rickstephan6707
    @rickstephan6707 4 місяці тому +2

    Lifelong personal finance software user here...allowed me to see all my expenses my whole adult life and - more importantly - prior to retirement at age 59.25.

    • @onedegreeadvisors
      @onedegreeadvisors  4 місяці тому

      Software programs certainly have made it easier for those who consistently use them. Thanks for watching!

    • @j10001
      @j10001 4 місяці тому +2

      Same! I have 29 years of data on my income and expenses in my financial software. I think it’s rare to find someone who has done this kind of record keeping, but it does help keep us honest!
      That said, I think the method in this video is great for most people, maybe even someone like me. Because all that really matters is how much you spend in total, which is to say the difference between how much you started with and how much you ended with. The specific categories don’t much matter unless you have reason to believe those categories will change in retirement, like the ones he breaks out in the pie chart.

    • @freedomlife3623
      @freedomlife3623 3 місяці тому

      @@j10001you beat me, I only tracked my income & expenses for 12 years.

  • @pizza4me298
    @pizza4me298 Місяць тому

    I work out, to the penny, my monthly expenses every 3-4 months at the latest. I was forced out 2 to 3 years earlier than planned, at 60, so can't even collect yet. So I am being extremely frugal until 62 and then will take another hard look at how much I have left and decide if I need to start collecting social security. I am hoping that I can keep delaying until 67 to 70. It sucks, I thought I would have another few years to save, there just isn't much demand for older workers. I focus on exercise and diet rather than spending and travel. I can only hope for the best.

  • @EightBallAnswers1
    @EightBallAnswers1 29 днів тому

    Don’t forget how much tax you’ll pay when withdrawing from a 401k. I am estimating 25% of my 401(k) is going to go to taxes! So that 401(k) balance is really not what you may think it is. Uncle Sam takes a good sized bite!
    Max out Roth’s 1st. For me, Except for cash, everything gets paid through one account.
    At the end of the year, take a look at how much money moved through my checking account. Unless there were
    ”out of the ordinary” expenses for the year, you get a good idea of how much you’re REALLY spending. I’ve done it for about three years now.
    Use one or two cards only for spending and do it for a few years before retiring.

  • @michaelbeall9677
    @michaelbeall9677 Місяць тому

    Am I wrong to think I want in retirement the same take home amount I receive now while I’m working?

  • @Rickmac22
    @Rickmac22 4 місяці тому +19

    Why is it that every financial advisor only sell fear? I've saved over 20% in 401k and investments, have 2 pensions, as well as my wife's pension, and proceeds from a business venture. This adds up to create an retirement income that is greater than our current income by 20-40% (this is without SS, acknowledging it's probably not going to survive), yet I have heard from every financial advisor that I should be fearful that we won't survive!?! Is this fear valid? OR do these advisors just want control of my (and your) retirement savings???

    • @onedegreeadvisors
      @onedegreeadvisors  4 місяці тому

      Hi Rick, I'm sorry that has been your experience. It sounds like you are doing great. There are many good quality advisors out there. Our purpose with our clients and viewers is to help maximize their return on life. No room for fear! - Anthony

    • @taylorism7787
      @taylorism7787 3 місяці тому +3

      Given the popularity of social security, there is no reason to think it won’t survive. Unlike during the 1980s, Congress has refused to modify it to to keep it in the black (despite the challenges of longer life expectancy and an aging population with more retirees), but social security “bankruptcy” would mean it would pay out 70% or so of expected inflation adjusted benefits. The idea that it would pay nothing is a widely held misconception and a scare tactic.

    • @Dennis-fs6zo
      @Dennis-fs6zo 2 місяці тому

      The more you save the more they make from your money.

    • @gwarlow
      @gwarlow Місяць тому

      @@Dennis-fs6zo So, save nothing, don’t invest and reap the rewards when you retire? Great plan. 😂 Good luck with that! 😊

  • @BobBanish
    @BobBanish 2 місяці тому +1

    I'm an English major that had trouble with math but a million dollar home at 3.5% interest for 30 yrs. the payment comes out to waaaaay more than $1350 per month. A quick google search shows a payment in excess of $4000 (P&I) per month. What am I missing here?

    • @AnonVideos
      @AnonVideos 2 місяці тому

      Taxes, insurance, special assessments, HOA fees etc. My P&I is about 40% of the total mortgage payment without an HOA!
      Realize taxes and insurance are going to be on the sales price, not the grandfathered price the previous owner paid. Here it will usually increase 3% per year with homestead exemption.

    • @onedegreeadvisors
      @onedegreeadvisors  Місяць тому

      The value of the home is $1m. Mortgage is considerably lower. Thanks for watching.

    • @theresaberna5488
      @theresaberna5488 Місяць тому

      They probably put down a considerable down payment.

  • @howarddelfava
    @howarddelfava Місяць тому

    I use a rewards credit card to pay for almost everything. I pay it off every month. That gives me an easy way to download actual expenses.

  • @Dave-sw2dm
    @Dave-sw2dm 4 місяці тому +11

    I buy everything I can on the credit card so it is pretty easy to se what and where I spend. Considering that I have been putting away 30% of my salary away because I have been debt free for the last 15 years.

    • @onedegreeadvisors
      @onedegreeadvisors  4 місяці тому

      Appreciate you watching!

    • @alcantwell
      @alcantwell 3 місяці тому

      Same here. It's a good way to record your expenses, plus you get rewards points, plus no interest charges if you always pay off your balance. I am retired now, but in my last few working years, I often was able to put away 40% of my earnings (self-employed so income varied month to month).

  • @claireNymans
    @claireNymans 3 місяці тому +101

    Man, this video just hit different! Been sitting on my $332k emergency fund, and still can’t figure out how to kickstart my investments. Retirement expenses feel like I’m just doing mental gymnastics! I guess I’ll keep tweaking the spreadsheet until I strike gold, or maybe I just need to stop overthinking and get in the game. 🤷‍♂ Anyone else procrastinating on this?

    • @CharlotteJacobsons
      @CharlotteJacobsons 3 місяці тому +3

      Haha, I hear you! But sitting on $332k?! Bruh, inflation's loving that. I was in the same boat until I found an investment advisor who kicked me into gear. Honestly, stop DIY-ing everything-trust me, that advisor saved me from spreadsheet insanity.

    • @blissds-gi3mb
      @blissds-gi3mb 3 місяці тому

      Same boat, guys! I’ve got some cash to invest but seriously no idea where to even start with finding an advisor. Feels like it’s a total guessing game out there. Any pointers?

    • @CharlotteJacobsons
      @CharlotteJacobsons 3 місяці тому +5

      There are a handful of CFAs. I've experimented with a few over the past years, but I've stuck with Linda Aretha Reeves for some years now, and her performance has been consistently impressive. She’s known in her field, maybe check her out if you want someone reliable.

    • @claireNymans
      @claireNymans 3 місяці тому

      Just looked up Linda Aretha Reeves-she seems like EXACTLY what I’ve been searching for! Ready to make some moves now, thanks!

    • @MollyShorters
      @MollyShorters 3 місяці тому

      Watched Linda Aretha at a Bloomberg finance summit 4 years ago-her presentation was top-notch! Honestly, it’s no surprise she’s crushing it now.

  • @m3chris1
    @m3chris1 21 день тому

    I just am replacing 100 percent of current spending

  • @iang4338
    @iang4338 2 місяці тому +1

    Assume you put 15% in your 401K and pay 6% social security taxes. Doesn't this mean that you are already living off 79% of your income? I assume you do not pay social security tax when you retire and you will no longer save into your 401k..

  • @RealMuperSan
    @RealMuperSan Місяць тому

    Where is their investment income on the spreadsheet? Things like dividends?

    • @onedegreeadvisors
      @onedegreeadvisors  Місяць тому

      If reinvesting divs and not spending, you wouldn't include under income for this objective. The opposite could be true: If they were withdrawing $1000 from a brokerage account each month, not all would likely be taxable, but they are living on that $1000, so it would be included. Hope that helps and thanks for watching!

  • @BraxtonScott452
    @BraxtonScott452 4 місяці тому +1

    Retirement planning means preparing today for your future life so that you continue to meet all your goals and dreams independently.

  • @alisonlevy2273
    @alisonlevy2273 2 місяці тому

    Great video once again. Your content is soooo relaxing. When is your big move?

  • @ohiopat
    @ohiopat 3 місяці тому +3

    They're good, chances of living past 85 are very slim.

    • @byronbuck1762
      @byronbuck1762 2 місяці тому

      Nope. Better than 50% one of them lives longer

  • @shaqisumari304
    @shaqisumari304 Місяць тому

    What is the inflation figures? 4-5% yoy

  • @alk672
    @alk672 3 місяці тому

    This high sensitivity to monthly expenses of the portfolio value projections is what makes me extremely skeptical of the very notion of retirement planning. Yes, it’s science and it’s art, with all the tax planning and ACA tax credits, but at the end of the day the entire tower is built on quicksand. Returns or inflation differ by 1% over the long term? Everything changes. Retired into a flat decade? You’re screwed.

  • @MichaelToub
    @MichaelToub 2 місяці тому

    Great Video!

  • @vallejoborncalihasbecomeal9022
    @vallejoborncalihasbecomeal9022 2 місяці тому

    If you are living on a certain amount every year, why would it change just because you retire?

    • @onedegreeadvisors
      @onedegreeadvisors  2 місяці тому

      Thanks for watching! Certain expenses like payroll taxes and retirement savings will drop off. Other items may drop off at some point like paying off a mortgage. Consider adding in expenses that may increase, if any.

    • @vallejoborncalihasbecomeal9022
      @vallejoborncalihasbecomeal9022 2 місяці тому

      @onedegreeadvisors Granted but, if I'm spending 60k a year on living, why would I spend less than that when I retire? After retirement, my hobbies, travel, eating out, grandchildren, inflation, etc. tend to fill in the gap. After my retirement, I didn't realize a drop in my spending!

  • @billlittle1257
    @billlittle1257 3 місяці тому

    Where is the spreadsheet you used found?

  • @clevelog
    @clevelog Місяць тому

    Thank you.

  • @LindaL.Fielder
    @LindaL.Fielder 3 місяці тому

    I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

    • @pauline-o2q
      @pauline-o2q 3 місяці тому

      Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!

    • @heatherj-o5j
      @heatherj-o5j 3 місяці тому

      Mind if I ask you to recommend this particular coach you using their service?

    • @SandraMoore78
      @SandraMoore78 3 місяці тому

      Jessica Lee Horst is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

    • @heatherj-o5j
      @heatherj-o5j 3 місяці тому

      She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.

  • @Robw1960
    @Robw1960 2 місяці тому

    No accounting for SS income?

  • @bw5437
    @bw5437 4 місяці тому

    Do the Monte Carlo simulations take into consideration the probability of living as long as they projected. If you have a probability of living to 95 is 5% does that have any bearing or is 30 year retirement locked regardless of real life expectancy?

    • @j10001
      @j10001 4 місяці тому

      Excellent question! I’d like the software to at least have that option built in. But I’m guessing it doesn’t - that is, it probably just uses the 30 years. The Monte Carlo simulation is about market returns being up or down.

  • @BEAUTIFULDIANAFRANCIS
    @BEAUTIFULDIANAFRANCIS 4 місяці тому

    As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.

  • @Aarrenrhonda3
    @Aarrenrhonda3 Місяць тому +315

    As a soon retiree, keeping my 401k on course after a rocky 2022 is top priority. I have been reading of lnvestors making up to 250k ROI in this current crashing market, any recommendations to scale up my ROI before retirement will be highly appreciated.

    • @Pconradsmith
      @Pconradsmith Місяць тому +5

      The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner.

    • @michaelwiebeck3
      @michaelwiebeck3 Місяць тому +4

      Having an lnvestment adviser is the best way to go about the market right now, especially for near retirees, I've been in touch with a coach for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I netted over $220K so far, that made it clear there's more to the market that we avg joes don't know

    • @CindyValenti
      @CindyValenti Місяць тому +3

      @@michaelwiebeck3 I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?

    • @michaelwiebeck3
      @michaelwiebeck3 Місяць тому +2

      I've shuffled through a few advisors in the past, but settled with Annette Christine Conte her service is exemplary. I'd suggest you research her further on your browser, sure you'll find her basic info.

    • @michaelwiebeck3
      @michaelwiebeck3 Місяць тому +3

      Annette Christine Conte is the licensed advisor I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.

  • @Particamuwowo
    @Particamuwowo 2 місяці тому +1

    Lately, I've been contemplating retirement, uncertain whether my 401(k) and IRA will ensure a secure future. I've also invested $800K in the stock market, experiencing fluctuations without substantial gains.

    • @KarenJ.Mancia
      @KarenJ.Mancia 2 місяці тому

      Using a 401(k) or IRA is a valuable strategy for retirement planning, providing potential savings growth and tax advantages. While the stock market is promising, expert guidance is essential for effective portfOlio management

    • @Andreavince-v
      @Andreavince-v 2 місяці тому

      Opting for an invest-ment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfOlio has surged by 45% since Q2.

    • @CharlesT.Foster
      @CharlesT.Foster 2 місяці тому

      Market behavior can be complex and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?

    • @Andreavince-v
      @Andreavince-v 2 місяці тому

      I’m with Stacy Lynn Staples, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

    • @heatherj-o5j
      @heatherj-o5j 2 місяці тому

      Just ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.

  • @onlywenilaugh6589
    @onlywenilaugh6589 3 місяці тому

    95 is too high so probability would go way up if use a more realistic of 90

  • @mcangls
    @mcangls 4 дні тому

    That couple has too much capital trapped in their residence. My advice would be to downgrade the house and retire today.

  • @bradh9800
    @bradh9800 2 місяці тому

    The most accurate and most reassuring method is to use one of these other means to determine what you think you might want to spend and then try living on that amount for six months before retirement.

  • @meatman6660
    @meatman6660 3 місяці тому +1

    This is not easier.

  • @Baldwin321
    @Baldwin321 11 днів тому +276

    I'd love to invest in stocks after listening to a guy on a podcast talk about the importance of investing and how he made over $300k in few months of investing into stocks from $175k initial capital, somehow this video has helped shed light on some things but I'm confused about the current market volatility I'm new to this and I'm open to ideas

    • @Christian67337
      @Christian67337 11 днів тому

      It's difficult to beat the market as an ordinary investor, you don't have access to information that professionals have. So it's just better if you invest with a professional who knows how things work better.

    • @Theodore3241
      @Theodore3241 11 днів тому

      Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. Perhaps you should consider a similar approach.

    • @Alden457
      @Alden457 11 днів тому

      How can I reach this advisers of yours? because I'm seeking for a more effective investment approach on my savings?

    • @Theodore3241
      @Theodore3241 11 днів тому

      'Aileen Gertrude Tippy' is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.

    • @Alden457
      @Alden457 11 днів тому

      Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

  • @bss6565
    @bss6565 2 місяці тому

    Leaving more confused.

  • @IsabellaAriau2m
    @IsabellaAriau2m 2 місяці тому

    I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024

    • @MasonJacobo2w
      @MasonJacobo2w 2 місяці тому

      Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.

    • @AidenLiamf7q
      @AidenLiamf7q 2 місяці тому

      Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.

    • @SophiaChloé6f
      @SophiaChloé6f 2 місяці тому

      I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?

    • @AidenLiamf7q
      @AidenLiamf7q 2 місяці тому

      NICOLE ANASTASIA PLUMLEE' is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

    • @SophiaChloé6f
      @SophiaChloé6f 2 місяці тому

      I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you

  • @brucekeller8903
    @brucekeller8903 2 місяці тому

    The flaw in his assertion is that he assumes that I haven’t been religiously tracking my actual expenses for years already. I know exactly what the spending that maintains my living standard is to the penny. There simply isn’t a better way to know what your retirement budget should be if you are already a disciplined budgeter. These types of videos are kind of condescending, IMO.

    • @onedegreeadvisors
      @onedegreeadvisors  Місяць тому

      That's great, Bruce. Most people don't do that (nor want to). Glad you found what works best for you. Thanks for watching!

  • @jimc336
    @jimc336 Місяць тому

    Get to the point! Wait… there is no point.

  • @eb9978
    @eb9978 2 місяці тому

    If you aren't working you are probably spending money lol! I'd budget for spending the same or more

  • @kevinkenney-m5b
    @kevinkenney-m5b 2 місяці тому

    These videos are just ludicrous..and I’m not just picking on this one. Steve and Diane case? So they have $1.25 mil set aside …not to mention they could sell their house…+ social security..
    So….$5000 expenses/month or $60k. Add on another oh idk maybe $9000 year taxes if it’s pre tax retirement.
    $5700 month needed roughly.
    Say they get just 5% return during retirement on that $1.25m
    Just the interest alone will almost cover their monthly expenses. Now add in SS..😂😂
    82% probability? Huh? Is Monte Carlo assuming a decade long Great Depression?
    Just on the interest of the retirement portfolio AND SS this couple will prob be bringing in a minimum of $8000 month..minimum.
    Without touching the principle.

    • @onedegreeadvisors
      @onedegreeadvisors  2 місяці тому

      Per the video, the $5500/mo.is estimate for basic living expenses plus they have larger/additional expenses (mortgage, charitable giving, taxes) not included in that $5500. Thanks for watching.

  • @Spp235.
    @Spp235. 3 місяці тому

    Uggh m. It took 15 mins say the obvious.

  • @MarkDiSciullo
    @MarkDiSciullo Місяць тому

    Inflation = Democrat administration.

  • @aquaticflo1
    @aquaticflo1 4 місяці тому +3

    Harris add puts a bad taste in my mouth before you speak which is unfair to you

    • @onedegreeadvisors
      @onedegreeadvisors  4 місяці тому

      Appreciate you watching!

    • @heidikamrath1951
      @heidikamrath1951 3 місяці тому +2

      You know you can skip the ads, right? There is a little countdown at the bottom right. Of course, if you let it play, then her campaign has to pay for the ad time. It’s a trade-off. Sometimes I get so angry seeing trumps face or hearing his lies that I just have to skip it. Other times I let it play and I go in the other room. That way his campaign has to pay for the ad, depleting the money that grifter has earmarked for his attorney’s bills.

  • @jimbrown4640
    @jimbrown4640 4 місяці тому

    It is impossible to estimate expenses.

    • @James_48
      @James_48 4 місяці тому +4

      Why? An estimate is just a series of assumptions, based on data. Of course it’s possible to make an estimate.

    • @onedegreeadvisors
      @onedegreeadvisors  4 місяці тому

      It can be good to estimate expenses and compare the outcome to other methods. Thanks for watching!

  • @lcee6592
    @lcee6592 4 місяці тому

    Saved a million dollars or more.....
    😂😂😂😂😂😂
    Please say you were kidding!!!
    Maybe 1.2% at best have a million plus? (blue collar schmucks)

    • @UNDERDOG18UNDERDOG18
      @UNDERDOG18UNDERDOG18 4 місяці тому +2

      We have over a million and I am only 52. Left home as teens. No help.

    • @lcee6592
      @lcee6592 4 місяці тому

      @@UNDERDOG18UNDERDOG18 you are clearly in the minority with that!

    • @j10001
      @j10001 4 місяці тому +1

      You’re right that it’s not the norm.
      About 10% of retirees have $1M or more saved at retirement. The median savings is closer to $200,000.
      If you include a house, the numbers are a lot higher-but you can’t eat your house!

  • @TheBryanmauro
    @TheBryanmauro 4 місяці тому

    Are you clowning?