My original retirement plan was to retire at 62, work part-time, and save money. However, high prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.
I’m 57 and still working full time. I do enjoy my work, it provides me with purpose and has secured my financial future. Most people are too eager to retire as early as possible. Even if you do retire early, best to get a part time job for the reasons cited above, as well as following many if not all of the suggestions in this video.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Sophia Maurine Lanting turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
I feel okay retiring a little earlier, every time I work OT I shove it into my 401k so I’ve been able to save what I need in 15 years instead 40 years! Always pay yourself first!
I've used my annual raises as an opportunity to increase my savings percentage. I figured I wouldn't miss it if I did it then. It's worked pretty well for me.
Married, 60, dual income, around $120K annual income, $800k in 401k and brokerages, $500k in real estate equity, we good. Good to know we're on a good trajectory. I'm pulling the plug, tossing the alarm clock and burning my work boots next year! I don't say it enough but THANK YOU, Azul, for keeping the message strong to plan, stay healthy and look forward always.
In 42 years of being an adult, 2 people saving and the growth on that money is only $800,000 while having an income of $120,000. I would work for 3 more years and try to bolster that number.
@@snwbm Negative. That's ONE saving (me), wife is a realtor...some months makes nothing, then a $30k month, then nothing for months. $120k is averaged, some years way under $100k, others over $140k. No need for more. Our SSI will be over $4k month at 62. We both will continue to have some income; the real estate, a 3D camera service and I do HVAC, custom long rifle builds and auto/cycle repair. No debt, lots of other hard assets including an airplane. I'm done.
solid video, Azul. people tend to overestimate their spending in retirement and die with way more than they needed. pensions aren't dead, especially for the public sector. the investment management companies want their clients to have as much under management as possible.
A tricky variable for calculating, although unfortunately less common nowadays, is pensions. What I think I'd need to do in that case is work from expenses out. So let's say you think you need $10K/month (just picking a random number). And then we'll say your pension (is it adjusted for inflation? some are..) is ... let's say $5K per month. Then let's say you get $3K per month in SS. That means your investments would need to get you about $2K per month. If my math is right (which it probably isn't), I think that's like $600K at 4% to make up the difference. Of course, are you waiting until you retire to take SS? Or are you retiring earlier, in which case you'll need to pull more from your retirement funds to bridge that gap. And then there's medical. Again, if you retire before Medicare, you need to bridge that gap, and that can be spendy. If I retire at 58, I am planning for about $1K per month until I reach Medicare age. That's a CHUNK of change to need. Like $84K... Are you want to travel, especially in the earlier years of your retirement? Probably want money for that... (if it's not in your budget already) Is your mortgage paid off when you retire? Cars paid off? So there are LOTS of variables at play...
I started stacking to SAVE wealth. I've always been the type of person to spend my entire paycheck. I hate having money just sit in the bank. I am under pressure to grow my reserve of $240k. before I turn 60, I would appreciate any advice on potential investments.
I think the safest strategy is to diversify investments. But if you need proper advice, consider speaking with a financial expertise. Don't get me wrong, you can do it on your own, but financial advisors have a lot more knowledge and expertise in this area.
Agreed, I've always delegated my excesses to an advisor, since suffering major portfolio loss early 2020, amid covid outbreak. I'm now semi-retired and only work 7.5 hours a week, with barely 25% short of my $1m retirement goal after subsequent investments to date.
Thanks for sharing your experience! I’ve been managing my portfolio myself, but it’s not working out. Do you have any recommendations for a good investment advisor? I could really use some help.
Teresa L. Athas 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.
I just looked up her website on google and I would say she really has an impressive background in investing. I have sent her an email hope she gets back to me soon. Thanks
it should not be a replacement of 80% of your gross salary, but 60-80% of your net salary, because your net is what you live on. The gross salary has deductions of FICA, any 401K deductions, health insurance, taxes ( probably at a higher rate), medicare and any other allotments.
No, that's by design. Neoliberalism is the abandonment of public goods in favor of "you are on your own" and "the rich thrive and the poor suffer and die".
Thank you for focusing on where should you be and not where the average person is. Where the average person is, is irrelevant. Thank you also for mentioning that when we retire is not always when we plan to retire. I was laid off at 59 1/2 and have found that in my field, and at my level, it is extremely difficult for an older man to find new employment. Luckily for me, I have prepared for retirement and can make it but everyone should prepare for the unexpected.
A Friend told me Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. is this a good way to potentially grow my retirement savings to about $3M over time?
There are strategies that could be put in place for solid gains regardless but such executions are usually carried out by investment experts or advisors with experience
Your friend is not a professional, Working with a financial advisor has been a game-changer for me. They provided invaluable insights and tailored strategies that aligned perfectly with my risk tolerance and financial objectives. With their support, I've seen significant growth in my investments and gained confidence in my financial future.
At 63 we had over 13.5x our household income saved, zero debt, and we have a (very) modest income stream from rental farmland, so I decided it was time to call it a career. It's a hard decision to make. The "just one more year" effect is real. But I lost a friend my age a few years back and I've got a couple others that have had some health issues. Our health has always been good (knock on wood) but you just don't know what tomorrow may bring.
I’m 55 from southeastern Ohio but worked overseas all my life. I have savings of $1,000,000 and I'm ready for retirement, only concerned about the soaring inflation. Is this enough to retire comfortably, or do I need some sort of money management?
@arlenehill4ril bravo! I've worked in real estate for over 25 years and have neglected a major stock portfolio, but I need a different plan now... mind if I look up the professional guiding you please?
excellent share, curiously inputted Karen Lynne Chess on the web, spotted her consulting page and was able to schedule a call session, no sweat. Ive seen commentaries about advisors but not one looks this phenomenal
Then vote against Trump. He's the one before he left office that signed an agreement to reduce the amount of oil produced to drive the price up. That's where the inflation came in. We had to wait 4 yrs for the trickle down affect to hit. We are just getting over it now.
It depends on many factors, including your personal lifestyle (how much do you spend per year?), if your home is paid off or not, etc… the inflation per se is not the worst problem currently (it’s at 2.4% annually, which is not much at all). Regarding the work overseas, did it build social security benefits anywhere? I worked in Europe for 20 years and, as a dual citizen, I will have some social security benefits coming from there, that will add to the ones from the US. The total of your US and overseas social security benefits will have to be considered, to decide if $1M is enough for you. I would suggest to consult with a retirement advisor.
To base savings recommendations on your salary doesn’t seem logical. Recommendations should be based on how much one spends. Some people may have a salary of $200K but only live on $100K.
Agreed. Those recommendations make it seem like a significant raise sets you back significantly instead of the opposite. Not everyone has a lifestyle creep problem.
Don’t fall for the wait to take social security preached by financial advisors. There’s no guarantee how long you’ll live to collect. The government wants you to wait because the odds are in their favor that you won’t collect much, if any.
Create a bydget. When you know how much you spend it is easier to know when you hit "your number." Investment advisors tend to underestimate when a client can retire, fear is their tool.
Couple of comments, firstly the income multiples should really be based on your comfortable income. So if you can live on 50k, but earn 100k, we’ll base it on the 50k. We have seen our incomes grow by 250% in the last 5 years, and we can now save a t a decent rate. But we cannot realistically get to 10x by 60 or 65. But if we adjust our current income for our fixed (mortgage), savings and child costs that will fall away we actually can easily live on 40% of what we currently gross with no change in lifestyle. Secondly, saving 10% at 20 is probably worth saving 30% at 40… maybe do that math for the channel, assume a starting salary of 30k at 20, with real growth for 2% per year and saving of 10%. The compound on that will probably way outstrip saving at 15% even starting just 10 years later.
agree. it should be based on what you expect to spend. we have work and child related costs that will no longer apply in retirement. if you also save and invest then unless you intend to keep doing that you will not need that income also.
Making over $100k and with 4 kids it’s extremely tight. And we don’t have car payments. The teenagers eat 1/3 of our paycheck. They constantly need new clothes. We constantly have to borrow from retirement for unseen expenses. I always thought it was a lot of money but it’s not.
Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals. you have to contend with inflation, recession, decisions from the Feds and all. I was able to increase my portfolio by $289k in months. You have to seek for help in the right places.
I think it's not always about fear, Sometimes realistic factors discourage people from reaching their goals in life. For instance, I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
'Carol Vivian Constable, 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.
Savings to earnings is irrelevant. Savings to annual spending is the number that should be measured. If you all of a sudden get a huge raise, you are much worse off and if you get laid off you are in much better shape according to this measure. Savings to spending is much more consistent in these scenarios and a more appropriate measure.
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Brooke Grace Miller.
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
This is why data shows that people who make a larger annual salary are often caught needing to work longer. Most folks refuse to live BELOW their means while they are younger and thusly do not save enough. They also often end up have lower net worth than individuals who had MUCH less earning power when younger. Discipline people, discipline!
Those numbers are chilling. 92.8% with less than $500k, 78.9% with less than $100k, 71.5% with less than $50k, 58.4% with less than $10,000, and 49.5% with… zero. We are in some serious trouble.
This is just how the average person lives. No forethought. The average person if interviewed thinks that they are smart as well. In fact 65% of people think that they are smarter than average which is ridiculous.
I’ve given up so much so that I can have a decent retirement account. I’m 54 and have plenty of time to go and I’m already ahead by mile of the American. Thank God I gave a fancy house I gave up fancy cars. I lived below my it’s really not that hard, but I guess it is really that hard.😮
My wife and I have saved a percentage equal to half our age for years increasing it 1 percent every other year and still fear we will not have enough for retirement, but I plan to retire very soon at 63 do to health issues, my wife has been on disability for about 3.5 years already do to health issues, wish us luck.
What’s crazy is that I have 3 times the age bracket of 55-64 at age 53 but it sure doesn’t feel like it. I own zero new vehicles or toys unless you count a 2009 cruiser bike that cost 2k. House mortgage is 30k from zero. Why do I not feel like I have enough saved? Being responsible is giving me some serious FOMO and I am very confused inside. 😬
I’m 66. I have enough to retire. My wife wants to keep working a couple more years until she’s 65 so I still work. They pay me well, and I have time for the gym several times a week. I work from home a lot. We will wait until 70 for SS. We should be able to retire without reducing our income. I’m still in good physical condition so fingers crossed that I’ll still have at least 10 active years in retirement.
Using a simple compound interest calculator, you can get an idea of how things will go in retirement. For example, take your social security income and your current retirement savings, minus the withdrawals you plan to take from retirement, for the period of years between your age when you retire and start social security to the year before RMDs start, and use 3% to 10% ROI. I like using 5% on the low end... if you have enough saved, you'll notice that you end up with about the same $ amount in savings as you started with, or even more...if the time period is at least 7 years or longer. If not, you will have a lower balance in your savings than when you started, which means you don't have enough saved to retire (IMO) or you need to reduce how much you withdraw from savings in retirement... ...this is also where dividend income can make a difference allowing you to preserve more of your principal. good luck
I hate the 35-55 category savings being calculated at a percentage of salary because if you’re doing a good job leveraging your abilities and skills, you’re rapidly increasing your salary faster than your savings. For example, in the last 5 years I’ve increased my salary by $30,000 and my earnings by $60,000 due to bonus opportunities. So my savings is going up but not as fast as salary so the percentage benchmarks are not realistic for this age group. We need to find a better way to calculate.
I dislike these multiple of salary saving models. The amount to save goes up with age even though there is less life remaining. It makes no sense. I better way to think about retirement is that you need to live on somewhere between 3-5% of your savings in you 50's and 4-6% thereafter.
@@nette4307 Yes, I think the orignial commenter meant "to have saved up" as the chart shows. It's true people do tend to accumulate more and more money but it doesn't make sense as a recommendation. Someone who retires early at 50 should actually have more money saved up than someone who retires at 70 to ensure against spending it all down.
The numbers assume that you retire at the same age (I would guess at 67, which is the full retirement age for most people), so it make sense that you need more money as you approach retirement
I was at the right salary multiplier for my age, so getting ready to retire in 5 years. My boss offered me a promotion with a 50% raise. That salary would have meant 10X my salary would now be too large an amount to reach, so I had to turn down the raise. Good thing for me I've watched videos like this before.
Learned something. Didn't know there was a career with title of Thought Leadership Director. Makes me think of Wizard of Oz. Universities are great seats of learning and when you come out, you think deep thoughts.
Those numbers seem a bit low, given the supposed desire to at least use the 4% rule, if the objective is to replace 80% or even 100% of your ending salary. Using that argument, your savings need to be at least 20x to 25x salary, although, hopefully, you aren't living to the max of your ending salary. Not spending all of your 4% allocation would a really nice problem to have, though, assuming you aren't missing out on spending that you could be doing.
Very interesting to see these numbers. I don’t have pension and I know I cannot rely on SS alone. All I got is 401k and I hope mortgage is paid off when I retire. I hope SS can support property tax, Home insurance, and few utility bills. I have to pay for left over utility bills, Internet, trash collection, cell phone, car insurance, gas, groceries, some break and fix and so on.. My dream is I pay for family vacation. Book a place and tell them to get there with talking to them. They just have to figure a way to get there so they don’t cancel. That’s my dream..
I don't understand how people who are headed to retirement can be so confused. I've been retired for 5 years, my wife 15 years. We have the same rule now that we did when I was working full-time; *spend less than we make* . I've had a spreadsheet budget for 25 years, paper before that. The math isn't complicated.
I'm 63, retired, and I've had my money in S&P 500 funds (100℅ stock) since I started investing. I have made a great deal of money with my FA Kathie and I see no reason to change. The S&P 500 has made an average of 9.8% returns over the past 100 years. International and Bond funds are losers in my opinion because they don't make much money. This is just my amateur opinion which may not work for everyone
Finding FAs like Kathie Daisy Bosco 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.
Thanks for sharing, I just looked her up on the web because this is equality important to me, and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
First part of the video says 50% have no savings, 80% have miserable savings, then you rant on T. Rowe Price recommendations which are 5x to 12x what people won't ever have, what is the point ?
The idea is to show people the averages or median point so they can see how they stack up against it. Not everyone is as far behind as the 50% or 80%. Not everyone is close to retirement.
These benchmarks are just such obvious complete BS from companies that make their money off “managing” portfolios. Roughly 1% or less of US households near retirement would meet these benchmarks, yet a far greater percentage are able to retire. I get that far too few people are preparing to retire as they should, but why continue to push such obvious crap that likely discourages people more than encourages them???
I don't think they are pointless. Good to have some targets even if they high for your starting point. And, of course, you have to take your own lifestyle and responsibilities into account. Maybe you are in a less expensive area. Maybe you plan to relocate. Maybe you have a disabled partner or child to care for. These are only reference points, not hard and fast targets. At least, that's how I see them. Also there are some channels that cater to people expecting to retire with smaller nest eggs if that would be more useful.
So true, often you don't get to choose your retirement. Ageism seems to be getting much worse, starting at 50. In your 40s, be aware of Ageism, plan , increase your savings! Thanks Azul for all the great content!
Ageism is especially bad in certain industries, like the one I am in, Information Technology. I'm in my early 40s and after watching a few waves of layoffs that mostly targeted older employees I'm continuing to keep my skills sharp and save hard. Fingers crossed that I get to retire on my own terms.
@@EvanKnightIsGood You’re correct. Keep your skills sharp. Also, be aware of ageism signs- hiring & promotion bias, marginalization, stereotyping, microaggressions by a boss, etc. Save 20 % or more if you can for retirement. If you find yourself in a toxic corporate environment, find a new job before you get pushed out. Sadly, I see it all the time.
While the data at 4:00 is interesting, the EBRI estimates of Consumer Finances is from 2019 and I'd be curious to know how (or if) it has changed in the post-pandemic run up of the market and the trillions of government dollars that were pumped into the pockets.
I'm 67, and I only have $250,000 in savings - BUT I'm working full time AND collecting my full Social Security, and as I have NO debt, I'm saving $3,700 (after taxes) every month. Now, $160,000 of my savings is in Gold & Silver, so with the recent big increases and more coming, and what I'm saving every month, my savings will grow quite rapidly.
I dont even know where the stock market is headed to right now. my portfolio of around 200k is not increasing more than 5% and people are predicting a crash .
I recently sold some of my long-term position and currently sitting on about 250k, do you think Nvidia is a good buy right now or I have I missed out on a crucial buy period, any good stock recommendation on great performing stocks or Crypto will be appreciated..
Ruth Ann Tsakonas is my trade analyst, she has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.
I managed to grow a nest egg of around 120k to over a Million. I'm especially grateful to Adviser Ruth Ann Tsakonas, for her expertise and exposure to different areas of the market.
I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $100k passively by just investing through an advisor, and I don't have to do much work. Inflation or no inflation, my finances remain secure. So I really don't blame people who panic.
Without a doubt! Ruth Ann Tsakonas is a trader who goes above and beyond. she has an exceptional skill for analyzing market movements and spotting profitable opportunities. Her strategies are meticulously crafted based on thorough research and years of practical experience.
I'm almost at my "magic number" savings to retire, just several months to go. I plan to keep working for another 3-4 years which will give me a better cushion, and build up cash and dividend income generation for retirement.
Love the videos! Thank you for the wonderful information. Question: I've seen these types of charts before and one questions always sticks out to me. Take the chart at 11:00, and $100k Married Dual Income. If the suggested savings at Age 55 is 5.5x (let' say $550k) shouldn't the 65 savings be 11.5x ($1.15M), based purely on compound interest (8% ROI) and zero additional savings? The math does not add up. Curious what I might be missing.
Ya know, I think I answered my own question. 🙂Between 55 and 65 the assumed ROI is probably 5% to take into account near retirement safety of portfolio. A 5% ROI, amounts to about $900k by 65. Which is the 9x number in the chart. Although, that's still assuming zero additional investment.
Thank you for this video. I am happy to know that we will be just fine with the investments that we have. Our challenge will be not spending enough during retirement. We have saved for 30 years and it is hard to let go of that hard earned money!
Can someone explain to me why saving benchmarks are multiples of salary rather than multiples of spend? If a significant chunk of my salary is going towards savings (meaning I won’t be spending these numbers in retirement), then why is the benchmark multiples of salary?
I don't know for sure, but my guess is it's related to most people knowing what their salary is versus spending. Easy to say if you make 60k, then save 3x (180k). However, most Americans spend more than their salary so I agree with your take.
Yeah, I like to calculate what I need based on our spending habits, not our earnings. Right now, we save 34% of gross income, another 17% goes to mortgage, property taxes & insurance, and 17% to paying for kid's college. Once the house is paid off and we don't need to save or pay for college, our bottom-line expenses would be 20% of our current gross income. We have 6x annual income invested now, so we'll be doing pretty well in retirement.
@@matthewowcarz8259 thanks, that makes sense. I also suppose that for instance 10x yearly spend would only get you past 10 years of retirement, so maybe salary multiplies is a very high level general benchmark that makes sense. But it’s super crude.
It's because the financial industry works on fear to get you to buy their products. It's far scarier to tell someone they need multiple millions saved based their current salary than to tell them that they merely need to save for their spending less what they get in SS or pensions. I noticed this issue when I watch the YT videos done by actual retirees who go over their real-life finances vs these theoretical videos based on 'research' done by large finance companies. The most telling stat in this video was the one by Blackrock were the average retiree still had 80% of their assets 18 years after they retired. It just shows that the finance industry's advice is heavily biased towards you having a lot of money invested with them. They don't make money if you realize that you can do just fine with less.
I find this rather disturbing. There's no representation for people who have actually lived there lives with a few bumps in the road ie. Thieving ex wives, a few business failures & the usual plethora of events that happen to most of us during our lives. The deluded talking to the fractional minority.
Azul, I love your videos, but in this case I don’t understand why people who earn more would need more money (percent wise) than those who earn less. I understand this at the lower brackets (as social security helps more in % if you earn less) but looking at people who earn $200k Vs. $300k? Why would a 65yo who currently earns $200k need $2M, while one that earns $300k needs $3.4 millions?
Basing savings on pre retirement income is a very poor metric for retirement planning. I guess it’s there for reference but first issue; these studies are suspect from institutions that manage retirement savings. This makes so many assumptions and not based on good data. Think about this; if most people have their highest earning years after 50 and they were living a “reduced standard of living” before hand in the neighborhood of 30 years worth, why is there an assumption that your standard of living has gone up commensurate with the salary increases. Especially when you consider that the people who tend to save wouldn’t necessarily be spending a whole bunch more just because they make more. This is poor logic and you only need to do the math based on your expenses and best guess projected expenditures not a salary multiplier. It does really have anything to do g to do with it.
Ok I know by now that these are USA centric, which does not really apply to me Nevertheless, I find it interesting Where I live few people have significant investment in a house, mostly it will be in more liquid assets
I am saving 30% of my take-home pay. 10% in my Roth IRA and the rest in a 401K. I go by individuals over our combined income because my wife right now gets a military pension and gets disability and she will get another pension with SS. I am at 2.1 times my income at 43 hitting the big milestone of reaching $100K invested. I am very much worried I am too far behind to catch up.
Does the income take into account taking out 401k funds? If you are maxing it out that takes out $30000 per year. I don’t enjoy your videos like I used to. You have turned in salesman rather than an educator. Doom and gloom earns more UA-cam revenue.
When you're single your taxes are higher and you are less likely to be sharing expenses. Be a single parent with no support and that's all of your money being spent because you have to pay for everything. Plus making more money might require a higher time commitment. There are exceptions, and that that's exactly what they are, exceptions.
@@Kayla11113 maybe now, although plenty of people that worked in the 80s and 90s did. Many employers replaced pension plans with more generous 401k matches and other contributions.
@@Northdallasguy00 so you don’t know any city, state or federal employees? Dont know any service members? Don’t know any policeman, fireman or teachers? All them get pensions along some corporate pensions.
@@Valmontstmy brother in-law moved to the Philippines 4 years ago. Thought it was the greatest but is now in the process of coming back. It wasn’t what it was cracked up to be. And the expenses involved in the moving just took out even more money.🤷🏼♂️ Think it over carefully.
Unless you make 6 figures and have little debt, a reasonable mortgage, then saving will hurt you in the long run. You should invest for you future with the majority of you excess. Bad advice to focus on saving, key word focus, and save only enough to get you through the hard times, 6 months of monthy exspenses. If you try to save your way to retirement you will most likley find yourself short. Do you like satndingh and greeting folks at the local Walmart.
Please stop using average as any financial indicator. The information is so sewed when you use average, it's not even relevant. Most people have no clue how much the top 0.5% changes the average making it useless information. I know you are not saying that the average is the norm, but I think for discussion use, it only confused people when you even discuss it.
I dont even know where the stock market is headed to right now. my portfolio of around 200k is not increasing more than 5% and people are predicting a crash .
My original retirement plan was to retire at 62, work part-time, and save money. However, high prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.
I’m 57 and still working full time. I do enjoy my work, it provides me with purpose and has secured my financial future. Most people are too eager to retire as early as possible. Even if you do retire early, best to get a part time job for the reasons cited above, as well as following many if not all of the suggestions in this video.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
Mind if I ask you to recommend this particular coach you using their service?
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Sophia Maurine Lanting turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
Thanks, I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get.
I feel okay retiring a little earlier, every time I work OT I shove it into my 401k so I’ve been able to save what I need in 15 years instead 40 years! Always pay yourself first!
I've used my annual raises as an opportunity to increase my savings percentage. I figured I wouldn't miss it if I did it then. It's worked pretty well for me.
@@fdm2155This is exactly the strategy I use as well. It's very effective at preventing you from getting into lifestyle creep.
I did the same thing. I still work at 60 because I want to not because I need to.
Married, 60, dual income, around $120K annual income, $800k in 401k and brokerages, $500k in real estate equity, we good. Good to know we're on a good trajectory. I'm pulling the plug, tossing the alarm clock and burning my work boots next year! I don't say it enough but THANK YOU, Azul, for keeping the message strong to plan, stay healthy and look forward always.
are you delaying Social Security to 70?
Good for you! Enjoy yours next chapter.
Is that 800k combined or each?
In 42 years of being an adult, 2 people saving and the growth on that money is only $800,000 while having an income of $120,000.
I would work for 3 more years and try to bolster that number.
@@snwbm Negative. That's ONE saving (me), wife is a realtor...some months makes nothing, then a $30k month, then nothing for months. $120k is averaged, some years way under $100k, others over $140k. No need for more. Our SSI will be over $4k month at 62. We both will continue to have some income; the real estate, a 3D camera service and I do HVAC, custom long rifle builds and auto/cycle repair. No debt, lots of other hard assets including an airplane. I'm done.
solid video, Azul. people tend to overestimate their spending in retirement and die with way more than they needed. pensions aren't dead, especially for the public sector. the investment management companies want their clients to have as much under management as possible.
A tricky variable for calculating, although unfortunately less common nowadays, is pensions.
What I think I'd need to do in that case is work from expenses out. So let's say you think you need $10K/month (just picking a random number).
And then we'll say your pension (is it adjusted for inflation? some are..) is ... let's say $5K per month. Then let's say you get $3K per month in SS.
That means your investments would need to get you about $2K per month. If my math is right (which it probably isn't), I think that's like $600K at 4% to make up the difference.
Of course, are you waiting until you retire to take SS? Or are you retiring earlier, in which case you'll need to pull more from your retirement funds to bridge that gap.
And then there's medical. Again, if you retire before Medicare, you need to bridge that gap, and that can be spendy. If I retire at 58, I am planning for about $1K per month until I reach Medicare age. That's a CHUNK of change to need. Like $84K...
Are you want to travel, especially in the earlier years of your retirement? Probably want money for that... (if it's not in your budget already)
Is your mortgage paid off when you retire? Cars paid off?
So there are LOTS of variables at play...
I started stacking to SAVE wealth. I've always been the type of person to spend my entire paycheck. I hate having money just sit in the bank. I am under pressure to grow my reserve of $240k. before I turn 60, I would appreciate any advice on potential investments.
I think the safest strategy is to diversify investments. But if you need proper advice, consider speaking with a financial expertise. Don't get me wrong, you can do it on your own, but financial advisors have a lot more knowledge and expertise in this area.
Agreed, I've always delegated my excesses to an advisor, since suffering major portfolio loss early 2020, amid covid outbreak. I'm now semi-retired and only work 7.5 hours a week, with barely 25% short of my $1m retirement goal after subsequent investments to date.
Thanks for sharing your experience! I’ve been managing my portfolio myself, but it’s not working out. Do you have any recommendations for a good investment advisor? I could really use some help.
Teresa L. Athas 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.
I just looked up her website on google and I would say she really has an impressive background in investing. I have sent her an email hope she gets back to me soon. Thanks
it should not be a replacement of 80% of your gross salary, but 60-80% of your net salary, because your net is what you live on. The gross salary has deductions of FICA, any 401K deductions, health insurance, taxes ( probably at a higher rate), medicare and any other allotments.
You just made me feel a lot better.
You will still have taxes.
80% have less than 100K saved for retirement? That's a tragedy.
No, that's by design. Neoliberalism is the abandonment of public goods in favor of "you are on your own" and "the rich thrive and the poor suffer and die".
I have around that. But I have a state pension coming in less than 4 years, when I'll be 53. So you do you figure that into the chart?
If you look at housing, there's more than 100k there.
Yes but they eat out, take vacations, drink Starbucks, and have a new SUV!!!
@@randymanchester6993 Yeah, as long as you don't live in Illinois.
Thank you for focusing on where should you be and not where the average person is. Where the average person is, is irrelevant.
Thank you also for mentioning that when we retire is not always when we plan to retire. I was laid off at 59 1/2 and have found that in my field, and at my level, it is extremely difficult for an older man to find new employment. Luckily for me, I have prepared for retirement and can make it but everyone should prepare for the unexpected.
A Friend told me Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. is this a good way to potentially grow my retirement savings to about $3M over time?
There are strategies that could be put in place for solid gains regardless but such executions are usually carried out by investment experts or advisors with experience
Your friend is not a professional, Working with a financial advisor has been a game-changer for me. They provided invaluable insights and tailored strategies that aligned perfectly with my risk tolerance and financial objectives. With their support, I've seen significant growth in my investments and gained confidence in my financial future.
Hmmm this is quite interesting, Please can you leave the info of your investment advisor here? I’m in dire need for one then
Stacy Lynn Staples is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
I looked up her full name online and found her page. I emailed and made an appointment to talk with her; hopefully, she gets back to me.
At 63 we had over 13.5x our household income saved, zero debt, and we have a (very) modest income stream from rental farmland, so I decided it was time to call it a career. It's a hard decision to make. The "just one more year" effect is real. But I lost a friend my age a few years back and I've got a couple others that have had some health issues. Our health has always been good (knock on wood) but you just don't know what tomorrow may bring.
❤
I’m 55 from southeastern Ohio but worked overseas all my life. I have savings of $1,000,000 and I'm ready for retirement, only concerned about the soaring inflation. Is this enough to retire comfortably, or do I need some sort of money management?
@arlenehill4ril bravo! I've worked in real estate for over 25 years and have neglected a major stock portfolio, but I need a different plan now... mind if I look up the professional guiding you please?
excellent share, curiously inputted Karen Lynne Chess on the web, spotted her consulting page and was able to schedule a call session, no sweat. Ive seen commentaries about advisors but not one looks this phenomenal
Then vote against Trump. He's the one before he left office that signed an agreement to reduce the amount of oil produced to drive the price up. That's where the inflation came in. We had to wait 4 yrs for the trickle down affect to hit. We are just getting over it now.
It depends on many factors, including your personal lifestyle (how much do you spend per year?), if your home is paid off or not, etc… the inflation per se is not the worst problem currently (it’s at 2.4% annually, which is not much at all). Regarding the work overseas, did it build social security benefits anywhere? I worked in Europe for 20 years and, as a dual citizen, I will have some social security benefits coming from there, that will add to the ones from the US. The total of your US and overseas social security benefits will have to be considered, to decide if $1M is enough for you.
I would suggest to consult with a retirement advisor.
Inflation isn’t soaring.
To base savings recommendations on your salary doesn’t seem logical. Recommendations should be based on how much one spends. Some people may have a salary of $200K but only live on $100K.
Agreed. Those recommendations make it seem like a significant raise sets you back significantly instead of the opposite. Not everyone has a lifestyle creep problem.
Don’t fall for the wait to take social security preached by financial advisors. There’s no guarantee how long you’ll live to collect. The government wants you to wait because the odds are in their favor that you won’t collect much, if any.
Wow. I’m 55 and have 675,000 saved up and worried about that not being enough! There’s people out there with nothing saved is unbelievable.
👍 you're doing great!
Create a bydget. When you know how much you spend it is easier to know when you hit "your number." Investment advisors tend to underestimate when a client can retire, fear is their tool.
Couple of comments, firstly the income multiples should really be based on your comfortable income. So if you can live on 50k, but earn 100k, we’ll base it on the 50k.
We have seen our incomes grow by 250% in the last 5 years, and we can now save a t a decent rate. But we cannot realistically get to 10x by 60 or 65. But if we adjust our current income for our fixed (mortgage), savings and child costs that will fall away we actually can easily live on 40% of what we currently gross with no change in lifestyle.
Secondly, saving 10% at 20 is probably worth saving 30% at 40… maybe do that math for the channel, assume a starting salary of 30k at 20, with real growth for 2% per year and saving of 10%. The compound on that will probably way outstrip saving at 15% even starting just 10 years later.
agree. it should be based on what you expect to spend. we have work and child related costs that will no longer apply in retirement. if you also save and invest then unless you intend to keep doing that you will not need that income also.
Making over $100k and with 4 kids it’s extremely tight. And we don’t have car payments. The teenagers eat 1/3 of our paycheck. They constantly need new clothes. We constantly have to borrow from retirement for unseen expenses. I always thought it was a lot of money but it’s not.
Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals. you have to contend with inflation, recession, decisions from the Feds and all. I was able to increase my portfolio by $289k in months. You have to seek for help in the right places.
I think it's not always about fear, Sometimes realistic factors discourage people from reaching their goals in life. For instance, I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
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, 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.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Savings to earnings is irrelevant. Savings to annual spending is the number that should be measured. If you all of a sudden get a huge raise, you are much worse off and if you get laid off you are in much better shape according to this measure. Savings to spending is much more consistent in these scenarios and a more appropriate measure.
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Brooke Grace Miller.
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I'm surprised that you just mentioned and recommended Brooke Miller, I met her at a conference in 2018 and we have been working together ever since.
The very first time we tried, we invested $1000 and after a week, we received $5500. That really helped us a lot to pay up our bills.
I'm new at this, please how can I reach her?
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
If you have a healthy pension + healthy SS and no debt, those numbers are mute
They may also be moot
I don't know anyone who has a pension. If you do, good for you, but very few people have that these days.
what percent of people fall in that category? 2%?
Most people don't have that so lucky you.
@@nette4307I have one and know many that do. Join a union
I appreciate your videos so much! Your calm delivery and spot on content is my favorite!
Thanks for sharing the kind words Victoria. You made my day! 🙏 Azul
This is why data shows that people who make a larger annual salary are often caught needing to work longer. Most folks refuse to live BELOW their means while they are younger and thusly do not save enough. They also often end up have lower net worth than individuals who had MUCH less earning power when younger. Discipline people, discipline!
Those numbers are chilling. 92.8% with less than $500k, 78.9% with less than $100k, 71.5% with less than $50k, 58.4% with less than $10,000, and 49.5% with… zero. We are in some serious trouble.
Yes we are, because there are a lot of these people and they will vote to take your stuff through taxation.
This is just how the average person lives. No forethought. The average person if interviewed thinks that they are smart as well.
In fact 65% of people think that they are smarter than average which is ridiculous.
I’ve given up so much so that I can have a decent retirement account. I’m 54 and have plenty of time to go and I’m already ahead by mile of the American. Thank God I gave a fancy house I gave up fancy cars. I lived below my it’s really not that hard, but I guess it is really that hard.😮
My wife and I have saved a percentage equal to half our age for years increasing it 1 percent every other year and still fear we will not have enough for retirement, but I plan to retire very soon at 63 do to health issues, my wife has been on disability for about 3.5 years already do to health issues, wish us luck.
What’s crazy is that I have 3 times the age bracket of 55-64 at age 53 but it sure doesn’t feel like it. I own zero new vehicles or toys unless you count a 2009 cruiser bike that cost 2k. House mortgage is 30k from zero. Why do I not feel like I have enough saved? Being responsible is giving me some serious FOMO and I am very confused inside. 😬
Would have made sense 25:years ago. Today there isn’t a correct dollar range because they are debasing the currency!!
I’m 66. I have enough to retire. My wife wants to keep working a couple more years until she’s 65 so I still work. They pay me well, and I have time for the gym several times a week. I work from home a lot. We will wait until 70 for SS. We should be able to retire without reducing our income. I’m still in good physical condition so fingers crossed that I’ll still have at least 10 active years in retirement.
Using a simple compound interest calculator, you can get an idea of how things will go in retirement.
For example, take your social security income and your current retirement savings, minus the withdrawals you plan to take from retirement, for the period of years between your age when you retire and start social security to the year before RMDs start, and use 3% to 10% ROI. I like using 5% on the low end...
if you have enough saved, you'll notice that you end up with about the same $ amount in savings as you started with, or even more...if the time period is at least 7 years or longer. If not, you will have a lower balance in your savings than when you started, which means you don't have enough saved to retire (IMO) or you need to reduce how much you withdraw from savings in retirement...
...this is also where dividend income can make a difference allowing you to preserve more of your principal.
good luck
Most people don't have any savings
I hate the 35-55 category savings being calculated at a percentage of salary because if you’re doing a good job leveraging your abilities and skills, you’re rapidly increasing your salary faster than your savings. For example, in the last 5 years I’ve increased my salary by $30,000 and my earnings by $60,000 due to bonus opportunities. So my savings is going up but not as fast as salary so the percentage benchmarks are not realistic for this age group. We need to find a better way to calculate.
I dislike these multiple of salary saving models. The amount to save goes up with age even though there is less life remaining. It makes no sense. I better way to think about retirement is that you need to live on somewhere between 3-5% of your savings in you 50's and 4-6% thereafter.
I can't understand the logic either.
The amount to save does not go up as you age: the amount that already should have been saved increases - which is perfectly logical.
@@nette4307 Yes, I think the orignial commenter meant "to have saved up" as the chart shows. It's true people do tend to accumulate more and more money but it doesn't make sense as a recommendation. Someone who retires early at 50 should actually have more money saved up than someone who retires at 70 to ensure against spending it all down.
The numbers assume that you retire at the same age (I would guess at 67, which is the full retirement age for most people), so it make sense that you need more money as you approach retirement
@@corradotox That makes sense, thanks. (It would be helpful if that age were made clear).
I was at the right salary multiplier for my age, so getting ready to retire in 5 years. My boss offered me a promotion with a 50% raise. That salary would have meant 10X my salary would now be too large an amount to reach, so I had to turn down the raise. Good thing for me I've watched videos like this before.
Learned something. Didn't know there was a career with title of Thought Leadership Director. Makes me think of Wizard of Oz. Universities are great seats of learning and when you come out, you think deep thoughts.
Those numbers seem a bit low, given the supposed desire to at least use the 4% rule, if the objective is to replace 80% or even 100% of your ending salary. Using that argument, your savings need to be at least 20x to 25x salary, although, hopefully, you aren't living to the max of your ending salary.
Not spending all of your 4% allocation would a really nice problem to have, though, assuming you aren't missing out on spending that you could be doing.
Can we use median vs averages ..please
Very interesting to see these numbers. I don’t have pension and I know I cannot rely on SS alone. All I got is 401k and I hope mortgage is paid off when I retire. I hope SS can support property tax, Home insurance, and few utility bills. I have to pay for left over utility bills, Internet, trash collection, cell phone, car insurance, gas, groceries, some break and fix and so on.. My dream is I pay for family vacation. Book a place and tell them to get there with talking to them. They just have to figure a way to get there so they don’t cancel. That’s my dream..
I don't understand how people who are headed to retirement can be so confused. I've been retired for 5 years, my wife 15 years. We have the same rule now that we did when I was working full-time; *spend less than we make* . I've had a spreadsheet budget for 25 years, paper before that. The math isn't complicated.
I'm 63, retired, and I've had my money in S&P 500 funds (100℅ stock) since I started investing. I have made a great deal of money with my FA Kathie and I see no reason to change. The S&P 500 has made an average of 9.8% returns over the past 100 years. International and Bond funds are losers in my opinion because they don't make much money. This is just my amateur opinion which may not work for everyone
How did you manage to succeed? I want to invest more wisely because I have a lump sum that inflation is slowly depleting
Finding FAs like Kathie Daisy Bosco 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.
Thanks for sharing, I just looked her up on the web because this is equality important to me, and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
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HERE COMES THE SCAM BELOW!‼️‼️🚨🚨
First part of the video says 50% have no savings, 80% have miserable savings, then you rant on T. Rowe Price recommendations which are 5x to 12x what people won't ever have, what is the point ?
Trying to encourage you to save money if possible.
The idea is to show people the averages or median point so they can see how they stack up against it. Not everyone is as far behind as the 50% or 80%. Not everyone is close to retirement.
@@floydestelle6242 this BS is likely more discouraging than encouraging
Keep working until you die!
Been retired for 6 years, 300K house paid off 5 years ago, and reach my goal. Better than 90% in my age group. Never made above 89K.
It is comforting to realize that many are in the same place.
I'm 61, I have 13.6 times my income for retirement right now and I'm debt free. I Plan on working to 63.
These benchmarks are just such obvious complete BS from companies that make their money off “managing” portfolios. Roughly 1% or less of US households near retirement would meet these benchmarks, yet a far greater percentage are able to retire. I get that far too few people are preparing to retire as they should, but why continue to push such obvious crap that likely discourages people more than encourages them???
Exactly this is pointless.
I don't think they are pointless. Good to have some targets even if they high for your starting point. And, of course, you have to take your own lifestyle and responsibilities into account. Maybe you are in a less expensive area. Maybe you plan to relocate. Maybe you have a disabled partner or child to care for. These are only reference points, not hard and fast targets. At least, that's how I see them. Also there are some channels that cater to people expecting to retire with smaller nest eggs if that would be more useful.
So true, often you don't get to choose your retirement. Ageism seems to be getting much worse, starting at 50. In your 40s, be aware of Ageism, plan , increase your savings! Thanks Azul for all the great content!
Ageism is especially bad in certain industries, like the one I am in, Information Technology. I'm in my early 40s and after watching a few waves of layoffs that mostly targeted older employees I'm continuing to keep my skills sharp and save hard. Fingers crossed that I get to retire on my own terms.
@@EvanKnightIsGood You’re correct. Keep your skills sharp. Also, be aware of ageism signs- hiring & promotion bias, marginalization, stereotyping, microaggressions by a boss, etc. Save 20 % or more if you can for retirement. If you find yourself in a toxic corporate environment, find a new job before you get pushed out. Sadly, I see it all the time.
While the data at 4:00 is interesting, the EBRI estimates of Consumer Finances is from 2019 and I'd be curious to know how (or if) it has changed in the post-pandemic run up of the market and the trillions of government dollars that were pumped into the pockets.
I'm right smack in the middle of the benchmark. Yay.
I guess the message here is don’t be single in retirement.
Ha ha... guess I'm out of luck. Actually I'm doing fine & I'm flying solo.
I'm 67, and I only have $250,000 in savings - BUT I'm working full time AND collecting my full Social Security, and as I have NO debt, I'm saving
$3,700 (after taxes) every month. Now, $160,000 of my savings is in Gold & Silver, so with the recent big increases and more coming, and
what I'm saving every month, my savings will grow quite rapidly.
I dont even know where the stock market is headed to right now. my portfolio of around 200k is not increasing more than 5% and people are predicting a crash .
Hate the average when figuring out how I am doing for retirement
I recently sold some of my long-term position and currently sitting on about 250k, do you think Nvidia is a good buy right now or I have I missed out on a crucial buy period, any good stock recommendation on great performing stocks or Crypto will be appreciated..
Ruth Ann Tsakonas is my trade analyst, she has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.
I managed to grow a nest egg of around 120k to over a Million. I'm especially grateful to Adviser Ruth Ann Tsakonas, for her expertise and exposure to different areas of the market.
I don't really blame people who panic. Lack of
information can be a big hurdle. I've been
making more than $100k passively by just
investing through an advisor, and I don't have
to do much work. Inflation or no inflation, my
finances remain secure. So I really don't blame
people who panic.
Without a doubt! Ruth Ann Tsakonas is a trader who goes above and beyond. she has an exceptional skill for analyzing market movements and spotting profitable opportunities. Her strategies are meticulously crafted based on thorough research and years of practical experience.
look up her name on the web for her website.
I'm almost at my "magic number" savings to retire, just several months to go. I plan to keep working for another 3-4 years which will give me a better cushion, and build up cash and dividend income generation for retirement.
Do you need the amounts saved by chart values if you and your spouse both get pensions.
Love the videos! Thank you for the wonderful information.
Question: I've seen these types of charts before and one questions always sticks out to me. Take the chart at 11:00, and $100k Married Dual Income. If the suggested savings at Age 55 is 5.5x (let' say $550k) shouldn't the 65 savings be 11.5x ($1.15M), based purely on compound interest (8% ROI) and zero additional savings? The math does not add up.
Curious what I might be missing.
Ya know, I think I answered my own question. 🙂Between 55 and 65 the assumed ROI is probably 5% to take into account near retirement safety of portfolio.
A 5% ROI, amounts to about $900k by 65. Which is the 9x number in the chart. Although, that's still assuming zero additional investment.
Thank you for this video. I am happy to know that we will be just fine with the investments that we have. Our challenge will be not spending enough during retirement. We have saved for 30 years and it is hard to let go of that hard earned money!
Can someone explain to me why saving benchmarks are multiples of salary rather than multiples of spend?
If a significant chunk of my salary is going towards savings (meaning I won’t be spending these numbers in retirement), then why is the benchmark multiples of salary?
I was in the midst of typing the same question when I read your question.
I don't know for sure, but my guess is it's related to most people knowing what their salary is versus spending. Easy to say if you make 60k, then save 3x (180k). However, most Americans spend more than their salary so I agree with your take.
Yeah, I like to calculate what I need based on our spending habits, not our earnings. Right now, we save 34% of gross income, another 17% goes to mortgage, property taxes & insurance, and 17% to paying for kid's college. Once the house is paid off and we don't need to save or pay for college, our bottom-line expenses would be 20% of our current gross income. We have 6x annual income invested now, so we'll be doing pretty well in retirement.
@@matthewowcarz8259 thanks, that makes sense. I also suppose that for instance 10x yearly spend would only get you past 10 years of retirement, so maybe salary multiplies is a very high level general benchmark that makes sense. But it’s super crude.
It's because the financial industry works on fear to get you to buy their products. It's far scarier to tell someone they need multiple millions saved based their current salary than to tell them that they merely need to save for their spending less what they get in SS or pensions. I noticed this issue when I watch the YT videos done by actual retirees who go over their real-life finances vs these theoretical videos based on 'research' done by large finance companies.
The most telling stat in this video was the one by Blackrock were the average retiree still had 80% of their assets 18 years after they retired. It just shows that the finance industry's advice is heavily biased towards you having a lot of money invested with them. They don't make money if you realize that you can do just fine with less.
I find this rather disturbing. There's no representation for people who have actually lived there lives with a few bumps in the road ie. Thieving ex wives, a few business failures & the usual plethora of events that happen to most of us during our lives.
The deluded talking to the fractional minority.
Azul, I love your videos, but in this case I don’t understand why people who earn more would need more money (percent wise) than those who earn less. I understand this at the lower brackets (as social security helps more in % if you earn less) but looking at people who earn $200k Vs. $300k? Why would a 65yo who currently earns $200k need $2M, while one that earns $300k needs $3.4 millions?
Interesting. But if someone has been retired for 18 years, are they more likely to have a pension than today's 60 year olds?
I’m 56 and joined a union when I was 27 and have a pension.
What is the saving benchmark if you have a pension?
it depends on ones expenses and SS security amount ( if any)
Basing savings on pre retirement income is a very poor metric for retirement planning. I guess it’s there for reference but first issue; these studies are suspect from institutions that manage retirement savings. This makes so many assumptions and not based on good data. Think about this; if most people have their highest earning years after 50 and they were living a “reduced standard of living” before hand in the neighborhood of 30 years worth, why is there an assumption that your standard of living has gone up commensurate with the salary increases. Especially when you consider that the people who tend to save wouldn’t necessarily be spending a whole bunch more just because they make more. This is poor logic and you only need to do the math based on your expenses and best guess projected expenditures not a salary multiplier. It does really have anything to do g to do with it.
Wow, this is like having Joe Biden tell you a bedtime story.
Ok I know by now that these are USA centric, which does not really apply to me
Nevertheless, I find it interesting
Where I live few people have significant investment in a house, mostly it will be in more liquid assets
Back to the needing $1,000,000 in order to retire. Sad that this is still being put out there.
You do plus a pension
I am saving 30% of my take-home pay. 10% in my Roth IRA and the rest in a 401K. I go by individuals over our combined income because my wife right now gets a military pension and gets disability and she will get another pension with SS.
I am at 2.1 times my income at 43 hitting the big milestone of reaching $100K invested. I am very much worried I am too far behind to catch up.
Keep up that 30% savings rate and you will be just fine.
Ok so with 37 having 300k porfolio I should do ok later. House is 2/3 paid off already. 🎉
“Retirement advice shouldn’t just focus on savings; what about the real costs of living and inflation?”
Savings...lol...means nothing when your money is printed from this air
I'm going to semi-retire at 50. Take all my savings to South Amrica and work part time remotely. Hopefully I find a nice wife
I’m officially screwed.
Annual income may change every year, so which year of income is used to calculate the expected total savings at certain age? 😂
I will be in the soup line in 5 years.
This is just to depressing for almost all.😢
Does the income take into account taking out 401k funds? If you are maxing it out that takes out $30000 per year. I don’t enjoy your videos like I used to. You have turned in salesman rather than an educator. Doom and gloom earns more UA-cam revenue.
When you're single your taxes are higher and you are less likely to be sharing expenses. Be a single parent with no support and that's all of your money being spent because you have to pay for everything. Plus making more money might require a higher time commitment. There are exceptions, and that that's exactly what they are, exceptions.
Love your videos! How do I deal with medical bills with no retirement savings- How do people do it?
What’s a “pension”? LOL
What’s missing from the data is pensions.
Hardly anyone gets a pension
@@Kayla11113i think it’s like 20%
@@Kayla11113 maybe now, although plenty of people that worked in the 80s and 90s did. Many employers replaced pension plans with more generous 401k matches and other contributions.
A friend of mine is 53 and she has a pension, I don’t know anyone else that gets one
@@Northdallasguy00 so you don’t know any city, state or federal employees? Dont know any service members? Don’t know any policeman, fireman or teachers? All them get pensions along some corporate pensions.
"You're average at best." KS
😂
Get to $5 million, and you should be fine!!!🎉🎉🎉
Move to Cambodia, retirement visa is easy; $500K and you'll settle in just fine.
I would recommend $7 million just to be safe
Quit talking. Same thing every day
And yet here you are commenting on his site. Sad.
First to comment
Haha
What are you…a little child??
U have been nothing for 20 years
Philippines bound: now I know why. Good riddance.😂
@@Valmontstmy brother in-law moved to the Philippines 4 years ago. Thought it was the greatest but is now in the process of coming back. It wasn’t what it was cracked up to be. And the expenses involved in the moving just took out even more money.🤷🏼♂️ Think it over carefully.
Unless you make 6 figures and have little debt, a reasonable mortgage, then saving will hurt you in the long run. You should invest for you future with the majority of you excess. Bad advice to focus on saving, key word focus, and save only enough to get you through the hard times, 6 months of monthy exspenses. If you try to save your way to retirement you will most likley find yourself short. Do you like satndingh and greeting folks at the local Walmart.
Please stop using average as any financial indicator. The information is so sewed when you use average, it's not even relevant. Most people have no clue how much the top 0.5% changes the average making it useless information. I know you are not saying that the average is the norm, but I think for discussion use, it only confused people when you even discuss it.
To be fair he posted the median and took it from there, but he did not explain the median vs average concept which may confuse a lot of viewers.
Always a popular video on the gootubes because the gootube generation had to be a lot more computer literate than average & way above average income.
Americans should have 10% of net worth in physical Gold.
I dont even know where the stock market is headed to right now. my portfolio of around 200k is not increasing more than 5% and people are predicting a crash .