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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.
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?
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.
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.
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.
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.
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.
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.
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.
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..
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.
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!
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.
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.
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...
@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?
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.
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.
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.
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!
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?
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.
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.
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.
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!
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).
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.
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
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.
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.
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.
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
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.
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.
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!
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.
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.
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
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.
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 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
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.
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.
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.
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.
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.
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!
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
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.
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.
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.
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.
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.
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???
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
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.
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?
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.
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.
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).
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?
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.
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?
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.
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..
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!
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.
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.
@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!
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.
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!
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..
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?
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.
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.
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.
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
@@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?
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.
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.
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.
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
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.
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.
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.
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
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.
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.
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
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.
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.
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.
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.
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.
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.
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.
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!
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Going into retirement knowing you might have to reduce your spending one day is still better than continuing work.
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.
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?
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.
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.
@@paulclough8541Good stuff. People avoid budgets. This just full transparency.
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.
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.
Our expenses didn’t go down at all. Medical, dental and travel made up for anything that could have been reduced.
This catches many retirees by surprise. Thanks for watching, Daisy!
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.
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.
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.
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?
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..
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
The answer to all financial and retirement questions is always "It depends".
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.
Thanks for sharing!
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!
Reduced travel costs due to not commuting, no need to buy work clothes etc
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.
Plus, you have more free time to spend money....
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.
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...
@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..
@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?
@CarolineBrooklyn I will give this a look, thanks a bunch for sharing.
Scammer
Do not fall for any scammers offering financial advice or recommending financial advisors in the comment section of UA-cam.
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.
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.
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
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.
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!
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?
consider investment planning, learning from a well experienced advisor is invaluable
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.
@@mariaguerrero08That's quite impressive! Can you share more information about your financial advisor?
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.
Thanks for the info, i found her website and sent a message hopefully she replies soon.
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.
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!
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).
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.
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
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.
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.
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.
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
Being heavily liquid, I'd rather not reinvent the wheel. Since this strategy works for you, how can I contact your advisor?
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.
Thank you for this Pointer. It was to find her handler, She seems very proficient and flexible. I booked a call session with her.
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.
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!
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.
I am sorry, but your approach IS budgetting… I understand you want to pitch a new approach, but it is just more realistic budgetting.
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.
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.
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
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.
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?
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!
@@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
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.
Yes, this is great! Thanks for watching!
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.
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.
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.
Yes, we see that making a difference in accuracy. Thanks for watching!
Nicely done. Congratulations!
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.
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!
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.
Expense delta is amplify by taxes too. A $1,000 delta is really more like a $1,250 in real withdrawal terms.
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
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.
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.
Software programs certainly have made it easier for those who consistently use them. Thanks for watching!
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.
@@j10001you beat me, I only tracked my income & expenses for 12 years.
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.
Keep up the good work. Appreciate you watching!
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.
Am I wrong to think I want in retirement the same take home amount I receive now while I’m working?
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???
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
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.
The more you save the more they make from your money.
@@Dennis-fs6zo So, save nothing, don’t invest and reap the rewards when you retire? Great plan. 😂 Good luck with that! 😊
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?
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.
The value of the home is $1m. Mortgage is considerably lower. Thanks for watching.
They probably put down a considerable down payment.
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.
Great job, Howard! Thanks for watching.
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.
Appreciate you watching!
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).
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?
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.
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?
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.
Just looked up Linda Aretha Reeves-she seems like EXACTLY what I’ve been searching for! Ready to make some moves now, thanks!
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.
I just am replacing 100 percent of current spending
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..
You got it! Thanks for watching!
Where is their investment income on the spreadsheet? Things like dividends?
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!
Retirement planning means preparing today for your future life so that you continue to meet all your goals and dreams independently.
Great video once again. Your content is soooo relaxing. When is your big move?
They're good, chances of living past 85 are very slim.
Nope. Better than 50% one of them lives longer
What is the inflation figures? 4-5% yoy
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.
Great Video!
Appreciate you watching, Michael.
If you are living on a certain amount every year, why would it change just because you retire?
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.
@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!
Where is the spreadsheet you used found?
Thank you.
You're welcome!
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.
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!
Mind if I ask you to recommend this particular coach you using their service?
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..
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.
No accounting for SS income?
4:30, 9:11. Thanks for watching!
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?
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.
As a beginner what do I need to do? How can I invest, on which platform? If you know any please share.
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.
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.
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
@@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?
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.
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.
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.
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
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.
Market behavior can be complex and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?
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.
Just ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.
95 is too high so probability would go way up if use a more realistic of 90
That couple has too much capital trapped in their residence. My advice would be to downgrade the house and retire today.
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.
This is not easier.
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
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.
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.
How can I reach this advisers of yours? because I'm seeking for a more effective investment approach on my savings?
'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.
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.
Leaving more confused.
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
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.
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.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
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.
I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you
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.
That's great, Bruce. Most people don't do that (nor want to). Glad you found what works best for you. Thanks for watching!
Get to the point! Wait… there is no point.
If you aren't working you are probably spending money lol! I'd budget for spending the same or more
This does happen for some. Thanks for watching!
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.
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.
Uggh m. It took 15 mins say the obvious.
Inflation = Democrat administration.
Harris add puts a bad taste in my mouth before you speak which is unfair to you
Appreciate you watching!
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.
It is impossible to estimate expenses.
Why? An estimate is just a series of assumptions, based on data. Of course it’s possible to make an estimate.
It can be good to estimate expenses and compare the outcome to other methods. Thanks for watching!
Saved a million dollars or more.....
😂😂😂😂😂😂
Please say you were kidding!!!
Maybe 1.2% at best have a million plus? (blue collar schmucks)
We have over a million and I am only 52. Left home as teens. No help.
@@UNDERDOG18UNDERDOG18 you are clearly in the minority with that!
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!
Are you clowning?