Average Net Worth Of Retirees At 65 - How Do You Compare
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- Опубліковано 23 вер 2024
- What is the median net worth of retirees aged 65-74 the first decade of retirement. Have you saved enough for a comfortable retirement, how do you stack up to the average net worth in America and Canada.
We researched the numbers and will tell you in this video where fellow American and Canadian households are at retirement. The Decade after 65 is generally the highest net worth of people. For the majority the net worth is their home outside of that the average savings in America and Canada is quite modest. Canadians tend to have higher net worth due to more expensive property prices.
Join us as we reveal the median net worth in North America giving you the chance to compare where you are in comparison to your fellow citizens.
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I did
Retired at 56 with no debt. That could never have happened with debt. Lost a ton since September but still above medians. Doing fine. Markets will recover eventually
We agree with the market, we’ll done on your debt free status
@@parkerbohnn Watch me not care.
@@parkerbohnn -Watch me not care...
Cn i ask yiur net worth what you were xomfortable with at that time ?
@@243wayne1 Don't watch me (I'm shy) not care twice also.
Very good information. If I may share. My husband passed away & I have large investments with 5 companies. Also including 401 K, IRA’s & pensions, Social security. I have no mortgage, own home, no car payment & no credit card debt. All my investments among these companies were in 96% growth funds making me on paper wealthy & I decided to alter that ratio. I went with the largest company with our IRA’s & selected them as my financial planner. I met with my FP transferred everything to them redistributed my assets into safer market portfolios, as I am 72. I went over a budget & decided that I could live on far less than we did when traveling past 20years. FP projected my income @ age 85 & 95 & I will easily make it through with an endowment left to train nurses @ our Alma Mater. This has brought me so much peace of mind. Thank you, Jeanne (retired RN)
Thank you for your service to humanity. Godspeed.
One of the best ways to accumulate a large net worth is to stay married to the same person. In the US where I live, divorce is the norm rather than the exception. Hence the smaller net worth here. I have been very fortunate to have the same partner helping to accrue our net worth. Also, we have been debt free for many years. My wife helped us in spending wisely.
Wonderful David, you are right!
@@ThisIsOurRetirement absolutely correct......married 35 years. Together near 40. Debt free homeowners. 61 years old......thanks go to Dave Ramsey....
I found this video great! Hadn’t looked at overall net worth in the past but will definitely be doing so very soon as we move closer to retirement. Thank you!
Absolutely! My wife and I have been together for 43 years and we have accumulated a significant nest egg. We are happy and wealthy enough which leads to contentment. People need to learn to get along. Being in love is a treat.
@@colddeadhands5167 many of our friends preferred the newer models and changed thinking it would be better. I believed in keeping my older model as i know her mechanics inside out and she has been reliable, the best mother a man could have find for our kids and for 35 yrs now. Happy wife happy life.
Hi! Thanks for the videos. I am 63, and not retired living in Arizona in USA.I own my home and together with my 401K...my net worth is approximate 950K. I plan to work for a few more years. I advise everyone who will listen to me to pay off their home as soon as they can.
Sounds great! thanks for sharing Cheers 🍷🌺🙂
Here’s an interesting take on that. Several years ago a came into some money. Enough to pay off my mortgage. So I walk into the Scotia Bank branch for my appointment to set up how to pay the mortgage off. The person on the other side of the desk says, “Why do you want to pay off your mortgage? Invest the money, I can get you about 8% on your money and your mortgage is 3.8%, you can make money.” In ok, so I’ll have to pay income tax on my earnings, my mortgage is not tax deductible right? and there’s a risk the rate will drop and a risk I could lose some of the money or all of it, right? On, ah yes that can happen was the answer. I paid the mortgage off. I also owe nobody any money. Even my water heater which I bought out on the rental for $48 then it lasted for 3 more years and then I didn’t rent the new replacement as I bought a new one, no bills except for taxes, utilities and insurance all of which I hate paying!
@@TripReviews Assuming you are in Canada the insightful thing from the bank employee would have been to say "Pay off the mortgage, borrow money to invest. That way the interest on the borrowed money is tax deductible assuming it is in a non registered investment account."
A bank employee can’t guarantee you an 8% return on an investment, it’s more of a selling point.
Great point Al
When I was a young boy, my Dad used to say, never mind these RRSPs - buy property, and you'll be much further ahead. I did that. Dad used to say - stay out of debt too. At age 39, I became mortgage free, after owning homes in the Toronto, and GTA markets, by first buying a triplex, where I lived in one unit and renting out the other two. I lived there for free for 5 years, as the tenants paid for everything (all bills & mortgage) with a surplus of $130 per month. I sold that one with a large profit left over, after its mortgage was paid. My next home was then half paid for when I took possession. After living there for almost 4 years, I sold it and was able to pay cash for my next home. I was also at that time, able to eliminate any and all remaining debt I had, like car loans etc. I have since moved to another province where my homebuying money went a lot further, and this allowed me to retire at age 47. I am 56 now, and have continued to live way under my means, save money, investing the majority, and continue being retired. I saw many older people with homes in Ontario who were retired, and their homes long paid off - only have to sell them because they could no longer afford to pay their property tax bills. I took note of this more than 20 years ago, as I watched our properties aggressively increase in value, knowing very well this could come back to bite me too one day as well. I didn't want that to happen to me, so I left Ontario, and purchased a home in a province where it is common to live where there are zero (no) property taxes, simply because there is no council or township in these areas, and yet, I am a ten minute drive to a nearby town where I can find everything I need. The nearest hospital is only 30 minutes away too. My only bills are my hydro bill averaging $250 per month, garbage collection $12 per month, and fire protection $5 per month. I have my own artesian well that is beautifully clean, and chemical free. Other than my home Insurance and other Insurances, it only really costs me to live $267 per month. I own everything I have with zero debt, including my home, two cars, and ATV. My home is brand new, 2,000+ square feet, on a large plot of land with no neighbours, and a view of mountains and forest. The house is a bungalow with a basement walkout, so everything is one level. This allows me to stay in my home, even when the day comes that climbing stairs is a problem. It's an easy home to maintain with simple lines, making repairs or things like replacing a roof less expensive than one more complex. I am close to the road, so snow clearing is simple and easy. I bought this house with retirement in mind. I want to stay in my home for as long as I live. Since I live on a main road, the plowing is done right away, and by the province, at no cost to me. I listened to my Dad. I did my homework. I have everything I need, and I'm happy here. I can sleep in when there's a snow storm, and no longer have to commute to a job I hate. My time is my own. My life is my own. I can travel the world if I want, or simply stay home and enjoy peace & quiet. I am self-sufficient. I am proof, that if you plan ahead, live under your means, and invest modestly, even with a modest income, you can have a comfortable life. Oh, my Mother always said, don't have any children, they'll keep you broke. I listened to that too....
Thanks for sharing Steve have a wonderful day Cheers ☕️🇨🇦
Your mother said you shouldnt have kids? The first time I hear a Mom doesnt want to be a grandmom, if she was happy with you... I cant believe that.
There are no millionaires that have children? Do tell
@@fatarismo She said it in gist, it was her way of sarcasm. She meant (we) meaning myself and my brother, kept my parnets broke, and to not make her mistake. I took it as fact, when it was really meant as a poke at what I and brother were doing to them. Now do you undersand?
@@robocop581 Out of all I said, THAT is what you chose to comment on? That's very petty of you.
Our net worth is 1.3m and we are both retired for two years at 63 years old - totally debt free which is the key to a successful retirement
We agree Scott enjoy your weekend Cheers 🍷🌺🙂
that's wonderful Scott. We were able to retire early and live debt free and we didn't need sell any properties. Our net worth is a little above 2m USD. Our investments made this possible for us.
@Adnan Khan I have a professional that I invest with. Her name is Alicia. I recommend her for you. Her company assures you lots of ROI daily and weekly
@Adnan Khan you can get in touch with her directly through 👇🇺🇸
@Adnan Khan +1
After paying off our mortgage (while still working with good jobs) we came up with an idea that worked for us. One year before we wanted to retire we decided to live on the government pension exclusively to see what our life would be like on that pension income alone. We stuck with it, saved a pile of money while learning to live on our pension money. It really prepared us for retirement, but of course we learned very quickly this works best being debt-free.
This is a great idea. More people should do this, I think.
@@thankfulandthrifty Not really. Most people should be preparing early in their working life. Investing so they aren't reliant on just the government pension in retirement. In Australia we have Superannuation. Relying on just a government pension will be a pretty frugal life in retirement.
@@richardguthrie3422 I agree with you. But if you haven't done that, it's good to know if you can live on a pension before you actually do it.
What a wonderful idea Holly thanks for sharing Cheers 🌺🍷🙂
I looked up my age 64 soc security monthly payment and set that as my monthly budget to see if I could live in that means. You identify areas of waste. This technique does work.
I had to retire early due to health about 3 weeks ago, at 59. I was worried that I didn't have enough money, but I am well over the US median. I owe nothing, but my car is 17 years old, lol. Still runs fine. Thanks for easing my mind! Your channel has really grown, so congratulations!
Keep running the car for as long as you can, ours is only 13 years old and can see no reason to change.
@@arnoldmonk6381 right? I don't drive much and when this dies? Think I will give up driving. Isn't that what kids are for anyway?
We think being debt free is the key , sorry it was health that made you retire take care of yourself and thanks for supporting our channel Cheers 🍷🌺🙂
I just watched a UA-cam video from Jay Smart who bought a 1985 Chevy Cavalier from Facebook market place for $300 replaced the cooling hoses for the transmission filled it up and did some minor repairs and the car runs fine, That car is over 40 years old.
Great video, Tina and Norm. I'm debt free, recently retired, and have a greater than average net worth and annual retirement income so I've never felt better financially. I've always had the opinion that one should get out of debt as soon as possible. Interestingly, I have a friend who is 65 whose financial advisor advised her to sell her home, buy a larger home (that she doesn't need) and take out a 30 year mortgage so that the mortgage interest can be itemized as a tax deduction. This would have consumed over 50% of her retirement income and saddled her with a large home she didn't need and truly couldn't afford to pay for or maintain. So beware so-called "advice" when it comes to retirement financial strategies.
Wow that doesn’t sound like the best advice she could of got , we also believe in being debt free is the secret to a happy retirement Cheers 🍷🌺🙂
That sounds like insanity.
Kick that person to the curb!!
Fire that advisor!!!
@@tomjohnson5700 Don't know. But she didn't take his advice and she's financially free in her retirement.
My husband has been doing a “net worth statement” for a very long time. Our best advice is: “pay yourself first; live below your means”. We both enjoy our retirement lifestyle!
You are completely right about paying yourself first( I call it first principles). I've been doing that since I was young. I didn't work at a super job but constantly managing my finances and investing as much as possible. I own everything now and can easily live and travel on my income streams.
We very much agree!
“Live below your means” does not need to be awful. I think of it rather as living simply. It’s amazing how much money you can waste on things that don’t really matter, just because you don’t think about it.
@@adamrobinson8620 absolutely live a simple life 👍
That’s great we learned that also from the Wealthy Barber to pay yourself first glad you are having a happy retirement Alice Cheers 🍷🌺🙂
When I was 22 years old, and just graduating from University- my father told me to do an annual net worth statement. I retire next week, it was valuable advice- and it is interesting to see the net worth statements that I did 10, 20 years ago.
Now that was very cool advice Richard and great numbers to compare have a great weekend Cheers 🙂🌺🍺
Did that my whole life. Been happily retired for 5 years.
Sounds great Joyce Cheers 🙂🌺🍷
I don't do yearly assessment. I set a goal and go for as much as possible while working.
Great topic! My wife just turn 61 I’m 58 both still at work, thinking of retiring is a bit scary, our network is around 1.2millions which include our house of approx 550000.00 , based on your figures it make me feel a bit better but still scary! Thanks for your great videos!
That is awesome! sounds pretty good to us Daniel Cheers 🙂🌺🍷
Hi, there T& N!
We are in the US. with no mortgage & retiring next year with an above average net. We’ve been crunching the numbers in our budget as we want no surprises that are in our control. We enjoy your videos because you are very relatable. Enjoy your retirement!
That is awesome! so glad you enjoy our videos Rodney we wish you a great retirement we are definitely enjoying ours Cheers 🙂🌺🍺
My hubby is retired (immigrated from Canada to the US so I could finish out my career in public service) for two years and I plan on retiring in 3.9 years. We’ll be debt free and will find a rental in Canada! The freedom that comes with having no debt is our dream!
Debt free is definitely a big help Darcell Cheers 🍷🌺🙂
Great video ! You just made my day 👍 Being divorced , retired and having no debts - I am doing better than I thought 💪😘
Good for you!
Wonderful! glad it helped Miriam enjoy your weekend Cheers 🌺🍷🙂
Have a great weekend Cheers 🍷🌺🙂
I am 51, planning to retire in 3.5 years. We are well over the median net worth. We only include our investments, savings, pension value and house. Real estate prices in Ontario have gone crazy. We set the value of our house a few years ago and have not increased it when figuring our net worth. I feel that these house prices are not sustainable. We paid off our home 6 years ago and have no debt. Having no debt has really allowed us to sock away the savings.
My dad is in his 80's and has been retired for over 20 years, my mum retired at age 50. Their investments are worth more now than when they retired. My dad has encouraged me to retire sooner rather than later. He wishes he had retired earlier.
We think your Dad is giving you very good advice to retire early and be able to enjoy your retirement Cheers 🍷🌺🙂
There is no way in my mind that houses could be 20-30 per cent more valuable since the start of COVID. the market we will have to correct eventually. I also value my house very conservatively when I calculate my net worth.
@@parkerbohnn Canadian gov't brought in over 400,000 immigrants last year and have plans to bring in more in the years to come due to an aging population and zero population growth. I don't see real estate dropping very dramatically anytime soon; there simply is a lack of supply and still a strong demand. Yes, interest rates will likely eliminate some from the market, but everyone needs somewhere to live.
We are in the US. We retired about 8 years ago at 56/54 with many times all these numbers in either country, and our net worth has doubled since retirement even with lots of international travel and increased spending. My recommendation is to get rid of all debt. All debt compounds against you ; it represents lost money that could have compounded for you. I also agree with and suggest keeping track of net worth. That provides not just comfort when you decide to retire then after to make sure all is well, but it can positively reinforce you to build those accounts along the way and provide a care free and fun filled retirement.
When young we were extreme and took measures to never have a mortgage. We saved enough cash to buy land, then enough cash to build the basic house shell. We moved in (almost like camping at first) then we finished it over a few years as each paycheck came in. Not paying out a huge mortgage meant we could instead save and invest that huge amount monthly beginning in our early 30s, which began compounding for us earlier in life. I see some young people rediscovering this approach today with the tiny house movement as well as those choosing to live in modified cars, vans, buses, etc. as part of their FIRE efforts.
As for net worth, my personal preference is to not include any hard assets like homes, furniture, cars, etc. I only track accounts with readily accessible real time cash values such as bank accounts, retirement savings (like 401k, IRA, ROTH-IRAs), mutual funds, stocks, bonds, etc. I simply listed each item and current market value on a row in a spreadsheet, then had the spreadsheet sum all of the values in that column to provide a current net worth total. Every 6 months, I just create a duplicate tab in my spreadsheet and rename it to the current date. The duplicate tabs also make it easy to look back years for comparison purposes if I desired.
I only spend maybe 15-20 minutes to log into each of the above account's websites then update each account to the current market values. Since it is so easy, I have added sections for my adult children and we also track their new worth together. That has gotten them excited and engaged about saving for their early retirements which they hope to achieve as we did.
The above worked for us and hopefully others might find this approach useful for their planning. Good luck to all on your retirement journeys.
What a great very interesting comment David thanks for sharing all your tips , sounds like you are having a great retirement Cheers 🍷🇺🇸🇨🇦🍺
@@ThisIsOurRetirement -Thanks, you as well. As a kid I remember a drive into a large city with my dad. He asked me what companies were on/owned the largest buildings. It was obvious that most were either banks, or insurance companies.
He said that was because most people used their services and gave them a lot of money.If I wanted to keep more of my money and not pay for those large buildings, I should avoid their services. So, no debt for me and we had minimal life insurance, just that offered by our employers. We needed car and home insurance but shopped around and got minimal coverage. Added up to large amounts over decades.
Your Dad was very astute.
@@davidroush1224 HI Dave, do you manage your own investments or do you use a brokerage firm? You made all great points. thanks
@@TheRetirementTrainStraightTalk Thanks, hope some were helpful for you. I have always managed my own investments and they are all over the map - well diversified. Things like mutual funds, Index funds (Vanguard), individual dividend paying stocks, even a few US savings bonds and cash minimums thrown in for stability.
I am trying to guide my adult children in setting up their retirement investment strategies. I tell them that when done properly, I feel like I lose and make money every day. The goal is that over a year or two, I consistently make more. I tell them that if they get upset when an investment drops, they will always beat themselves up in hindsight and feel bad about it. It is counter productive.
The trick for me is to look at it from a much higher perspective and longer time frame. I try to remember good to great returns are still a success, even if the path there wasn't perfect and a few choices lost money. Big picture takes most of the stress away.
Always love talking numbers. Thanks for the information!
Thanks!
Retirement is a life changing event. It fills with great unknown and uncertainty. Your video provides a good reference point.
Thank you Ian have a great weekend Cheers 🙂🍷🌺
While "living below your means" in a good idea when you are younger and working (it's what I did) but once in retirement if you live that way you won't be spending your retirement savings in your actual retirement. If you are retired this is the future you were saving for and now is the time to draw those down. I will admit though after a lifetime of saving it's a hard transition to then start spending those savings even though we have no debt and a good net worth statement.
It is a very hard transition to start spending when you are so used to saving have a wonderful weekend Cheers 🍷🌺🙂
Interesting topic, because I have never been a fan of comparing myself with others. Nor does financial wealth always equate with happiness. What good is money if one does not have the health and peace of mind to enjoy it? To me, health is the first wealth, and that means, physical, mental and emotional health. Granted, financial wealth can bring a level of security, but there again, none of us is promised tomorrow. And, some who live in third world countries have nothing by modern standards yet they are proud of their modest homes, delight in their families, and maintain relationships in a manner most of us could only dream about. A wise friend liked to tell me, she had never seen a U-Haul truck at a funeral, she was right, and there wasn't one at hers, because we cannot take it with us! Fortunes can be made, lost and made again. There are as many lifestyles as there are people. I have always been frugal, my parents were excellent teachers. They began their married life with nothing more than a woode orange box for a table, and ended up with considerable financial wealth, they lived simply and valued life long education, being cultured and learning new skills, both were resourceful and resilient. My goal is to live as they did, and leave the world in a better state than I found it.
Sometimes, life events can get in the way of becoming wealthy, a different set of planning and events can bring wealth later on in life. We are all individuals, and our circumstances are just as variable Some of us are married, some not, a lifetime of financial planning and striving, can disappear with the stroke of a pen, if one divorces, or is faced with a devastating illnes, injury, or some other kind of family crisis after the death of a parent for example. My mother gave up a scholarchip to Oxford, because her father didn't wake up from anesthesia, and she had to support her mother, and three siblings and become a teacher instead. At a time when there was no government assistance or health care. We all need a Plan A, Plan B, C & D, and still there are no guarantees. Life does not always turn out as expected. Forrest Gump, claimed that life was like a box of chocolates, you never know what you'll get. I tend to think of it more as a game of chess, a game that needs careful thought and constant attention, which can just as easily be won or lost, no matter what we think we know, or the level of our skill. I am grateful for what life brings me, and have survived the unsurvivable, every day is a gift, anything else is just, 'the cherry on the cake.' A very wealthy Canadian once told me, that after a certain amount, in other words, enough for one's basic needs, he was no more happy, wealthy than he was poor! There is some truth to that!
What a wonderful inspiring comment thanks for sharing have a great weekend Cheers 🍷🌺🙂
Please excuse the typos I just noticed!
So are you telling me you’re a complex, complicated person?😅
Interesting philosophy. Mine is simple and shorter than yours.
People who say money can't but happiness, have no idea what happiness is.
I prefer to be filthy rich. Being rich doesn't mean that one automatically has to be unhealthy. Quite often wealthy people live long, happy, healthy lives.
@@robertk5441 Obviously, it is possible to be financially rich and healthy at the same time. I still stand by the idea that being rich, does not necessarily make a person happy, however it can provide material comforts. Wealthy or not, many of us have our basic needs met, and live comfortable lives. It would then seem reasonable to consider those who are less fortunate than ourselveis both human and animals, and other good causes as many, not all rich people do. I did not suggest that being wealthy precluded a person from living a long, happy, healthy life.
Found your UA-cam channel just by chance. I'm in the US. I am retiring in one year (63), have no debt (not even my house - paid it off a few years ago) and have a retirement nest egg of $1.7M. I have no kids, no dependents. I'm working only because I have a health issue that I'm working through with my doctor and wanted to keep the insurance (I have an HSA which has been wonderful). I've discovered that the key is living below your means, saving as much as you can, and getting rid of debt. Cannot wait.
We are so glad you have found us Ella and we wish you a great retirement, you are totally well prepared and we fully understand hanging on to your health insurance it makes a lot of sense. Thanks again for watching and finding us!
Good for you!!! I'm in a similar situation. I retired two years ago at 63 with zero debt, including a mortgage free house. I'm living soley on my pension, but will apply for social security soon. It's a great feeling, but quite different than being in a saving mode. Good luck to you and congrats on your upcoming retirement.
Good info. I've been doing a net worth spreadsheet for several years. I've done a lot of cruising and my net worth has been growing, as well. I think the key to being comfortable financially is to strive for zero debt. I use a credit card for everything for the cash back benefits, but pay the balance every month. I've never paid a penny of interest on a credit card. It also helps to set priorities and pay extra on the mortgage. A friend told me years ago--know the difference between needs and wants.
You certainly have a well thought out financial system, thanks for sharing with us.
re: credit cards, yes i get lots of cash back... don't like other "rewards/points" (exception: fantastic option in Canada is Presidents Choice Mastercard). never pay interest!
Yep. Pay off credit card bills every month. Do not carry credit card debt from month to month. The fact is don't spend more than you can pay for. Learn to enjoy things that don't cost much. Like reading books. Stay sober, work hard and be a good husband/wife/parent. Life will reward you.
i haven't retired yet and live in Canada. The recent increase in housing values helps our net worth and if we followed your example we could always sell the house and rent. I also read those Globe and Mail articles. So many of the examples they give are very wealthy people with well above the Canadian average net worth. I am reasonable optimistic on retirement outlook but the recent spike in inflation gives me pause and I'm hoping our assets can keep it. It may be a challenge for some.
For inflation take an average figure, eg the past 3 -5 yrs.
The huge increase in property prices won’t last forever 🤔, perhaps a good time to sell , invest then rent have a great weekend Cheers 🙂🌺🍷
One of the reasons for the difference between the US and Canada is that housing is much less expensive in the Midwest and South (except maybe Florida) than in Canada. You can still get an OK house for under $150,000 in much of middle America.
… another reason why housing is on average cheaper in the US is that over 20 million Americans live in poverty in trailer parks unfortunately.
Yes house prices in the last 5 years have gone insane in Canada
There are a lot of Americans living in single family homes but political decisions like Canada have not impacted property prices in the U.S.
You can’t get any decent house in Minneapolis for 150000
In USA, we don't have paid for healthcare, so Americans need to save even more than Canadians.
Ironically, here the politicians often dog Canada.
So hilarious.
Remember, that if you have to brag about being the best, you are not.
Most Americans in bad shape overall.
Thank you Tina and Norm💕
Thanks for watching Cheers 🍷🇺🇸🇨🇦🍺
It took a while for my brain to realize I had enough for retirement. Seeing myself above the median is great, but the real test is how much is needed each month and am I able to really live on the budget I set up.
That’s awesome 👏 have a wonderful weekend Cheers 🍷🌺🙂
My income after 65 will be 1400$ in
Canadá ! I will work at 75-80 !!!
Thanks for sharing and good luck.
I'm a little above the median and feel comfortable with that. I'm retired with a pension and think I've set myself up pretty well.
That’s fantastic thanks for sharing
A year old yet I am very glad I came across your video. We retired a few years ago, I am 64, and feel we are well,prepared for our retirement. Thank you.
Wonderful!
We are 53/58 and still have several years to go before we can retire. We own our home and cabin on the lake (both in the state of Maine and both modest homes) mortgage free and have no debt otherwise. We have always lived below our means and our youngest just graduated college today. We managed to get 4 kids through and 3 married now with no debt also! We have 2 grands and 2 on the way. We have always invested a minimum of 10%, and also given a minimum of 10%; both of which we feel are equally important. We are considerably higher than the US national average. Cheers to you...look forward to your videos each week!
Sounds wonderful, thanks for watching our videos we do appreciate your support have a great weekend Cheers 🍷🇺🇸🇨🇦🌺
In my neck of the woods, Home equities are easily 1,5 million dollars. I have 3 home ( 2 are rentals, rents net me 7k a month) a Pension of 115 k a year; plus my Index funds, which now I'm putting that money into 4.5% Certificate of Deposits.
Sounds like you are well set up for a great retirement Cheers ☕️🍁
Interesting topic... Divorce makes a HUGE difference in where you are and why...
We do agree Jim we are sure it does have a lovely weekend Cheers 🍷🌺🙂
Hey guys, another helpful video. Today is my first day of official retirement, wha hoo! Feeling pretty comfortable with the numbers you used in your examples so onward we go. Love the channel, I tell all my friends to watch. Even though everyday is Saturday now I'll see you in 7 days. 😉
Congratulations!
Congratulations.
Congratulations!!!
Congratulations Steve on your retirement 🥳🥂welcome to the new chapter in your life we are glad you enjoy our videos have a great weekend Cheers 🍷🇨🇦🌺🙂
Enjoy it to the fullest my Canadian friend 🇨🇦 here in Canada we’re taxed also to the fullest;)
I am 47 and don’t have debt. In my 30s had the experienced of having debt when I built my family a house in the Philippines, and at that time I decided that I will never be in debt again aside from my own mortgage but even that it stress me out so I sold my unit and decided its time to retire and live all over the world. I am just lucky to be able to do it, I am in Bosnia and Herzegovina atm and loving my life as a nomad.
You are living your dream we wish you well Cheers 🍷🙂
We are 66 & over 70, have no debt but taxes & utilities, thank goodness for that !
Sounds good Numa Cheers 🌺🙂🍷
Awesome video. In my opinion it does not matter what your net worth compared to others, the bottomline is how your net worth will cover your expenses. If you have a low net worth but can cover your expenses your golden.
That is very true thanks for sharing Cheers 🙂🌺🍷
Spot on with the point about furniture & electronics, that kinda stuff is so abundant now and most people offer really good stuff for free just to get rid of it.
Very true they are not worth very much in a fire sale , thanks for watching Rory have an awesome weekend Cheers 🍷🌺🙂
Wow big difference between the US and Canada. Frankly, I attribute it to Americans needing to keep up with the Joneses. Retired in 2011 with no debt; own house & car free and clear. Definitely reassures me that I am financially secure, and also surprised me that I have been able to save money each year. No I am not a tightwad, I travel ever year and since I could not over the past 2 years instead I renovated my house instead and paid in full.
Well said! we too haven’t been travelling for the last two years have a wonderful weekend Cheers 🙂🌺🍺
I'm worth between $5 to $600,000 -- even more dead re life insurance which a nephew or niece will enjoy someday haha -- and I have no debts except ordinary monthly costs and my condo is paid off. Thank god! My credit card is a zero balance and I'm frugal. I'm 63 and single.
This was a most wonderful video today, Norm and Tina.
I as well cannot stress enough how EXCEEDINGLY important it is to be debt-free when retiring. If that means eating beans and sardines for some years before retirement, well, so be it. Trips and luxuries are nice, but paying your monthly bills and eating each month should be the most important retirement goal. Live within your means regardless if you earn $10,000 a year or $100,000. Only you yourself know what's best for you to get debt-free.
Thanks again, Norm and Tina!
We agree David so important to be debt free , so glad you are enjoying our videos Cheers 🌺🙂🍺
keeping a Net Worth statement is a great idea. I've been doing one for over 30 years and it's fascinating to look at how debt disappeared over the years that then resulted in growing savings. We were mortgage free in our mid- to late-40s which makes the savings escalate fast. I do our net work statement on New Years with quarterly spot checks. Not yet retired yet, but anticipate that, like you, my net worth could easily continue to grow during retirement.
A great plan for your net worth congratulations
Retired 14 years ago, now 75. Net worth 3 million, no debt. Wife 74. SS for both no pension. RMD around 70,000. We’ve always lived below our means. My advise is to start saving early, 401 k if you have one at work. Roth if income allows.
Sounds great with good advice thank you , have a wonderful week 🍷🇺🇸🇨🇦🌺
I think a 401k is extremely important. Well done.
I'm a single Canadian woman in my 50's. Debt free with a net worth of 1 million, most of that in investments. I'm thinking of retiring next year, but not sure I have enough. I'm not a big spender, but enjoy travel and hope to live in a warmer climate part of the year.
Thank you Tina and Norm for your videos. They are informative and great entertainment. I appreciate your cozy style.
Thanks so much Tracy we appreciate your support have a great weekend Cheers 🍷🌺🙂
Tracy, I’m thinking Mexico in 2023 and might need a roommate. 😁
Retire! I highly recommend it!
We do too 🌺
Hi Tracy, with a $1,000,000 you are way ahead of most Canadians. Even at 4%, the million would yield $40,000. In Canada, the medical care is free or almost free. This would be a huge expense if you had to pay for it. In Canada, you also have a relatively generous pension plan. Add this to your own pension plan and you could quit soon if you plan to live a modest life.
Hello Guys. US citizen here and it was shocking to see the numbers you came up with from both Canada and US. We are mid 50s and have been tracking our networth just like you for many years and we are WAAAYYYY above the numbers for both Canada and then more times for typical US households. We have no debt. House paid off early and all that. As some others have mentioned, I think in the US we have been bombarded with so much advertising about how we are "supposed" to live or look like. It's an unrealistic vision. Most are so busy playing keep up with my neighbors that they lose sight of what's really important. Health, Family and experiences. Gives us peace of mind that we are ok to retire early and will be easing into that soon.
Glad you enjoyed our video Bob and that you are doing well financially it’s a shame so many just want to keep up with the Jones’s rather than enjoy Health, Family and experiences Cheers 🍷🇺🇸🇨🇦🍺
Comparing to others is fine and perhaps"fun", but really, it doesn't matter to me what may neighbours have, I think we just need to focus on our own situation and what we feel we need. Keeping up with the Jones is just a distraction and is counter productive in my opinion. Figuring your net worth is worthwhile, but only compare it to yourself, not your neighbours..
Great comment Darryl have a wonderful weekend Cheers 🙂🌺
The issue of ever increasing property tax on a paid off home in retirement is also a drain on retirement funds. I’m paying over 6k/yr and expect it to go higher. Property tax is like a mortgage but never gets paid off. This should be considered when one wants to rent vs owning!
Good point
You will pay property taxes even when renting. Granted, you don't pay them directly to the taxing authority. But you DO pay them via higher rent to the landlord.
Absolutely it has to be considered and can add up a lot 😱have a great weekend Cheers 🍷🌺🙂
Also property insurance goes up annually.
Yes it does and when you are away in Winter 🥶 someone needs to visit your home every 24 or 48 hours 🙂
Having been in agriculture my whole life, and starting out with only a few thousand dollars, on a rented farm. I am by the nature of the business fairly well off, due to the ever rising price of farm land. Real estate has made many people rich beyond their wildest dreams. A basic house where we live is over $500,000.00 . And really nice homes, or lake front property go well over one million. All of this sounds great, but how the heck can a young family buy a house. How can a beginning farmer ever dream of buying a farm, when land is selling at 15-20 thousand dollars per acre? And land rent per acre is running at $250-$300/acre. This isn’t a contest to see who has the biggest nest egg, and because my wife and I worked very hard to invest in farm land for the purposes of farming it, not just to speculate on a big pay day when selling it, I am embarrassed to say what my net worth might be. But what goes up, can also go down, same applies to real estate . The imported thing is to be debt free , and try to maintain good health ,find true love, and happiness. No amount of net worth can ever tally up to these items.
What a wonderful comment Bruce thanks for sharing have a wonderful weekend Cheers 🍷🌺🙂
Remember. The big unknown is medical bills. You can pretty much estimate everything else with reasonable accuracy. But you cannot estimate the future of your health. So always include health insurance in you calculations.
Very true if you live in the USA 🇺🇸 in Canada we are more fortunate Cheers 🍷🇺🇸🇨🇦🌺
Paying off my mortgage before 50 yrs old was my goal and I'm very proud of actually doing it. However, I missed out on luxury vacations and salon visits and my son had to enroll in a local college instead of living at a university. I'm 60 yrs old now and completely debt free, but still live a frugal life. I find enjoyment in simple vacations and hiking at county parks.
Love your inspiring videos 🧡
In some countries mortgages have had exceptionally low interest rates. (Read 0% or very close to it)
So it has been useful not to pay it back as almost any other investment class has given better returns.
So, matters a lot what kind of interest rate you need to pay for your mortgage. Now interests rates are going up globally, so now is the time to be more careful with mortgages.
Kind of reminds me of a person who has read the book The Millionaire Next Door. There is much to be said for the contentment and security of a debt free lifestyle. Good for you!
That’s great Ann being debt free sometimes the most simple things are the best have a great weekend Cheers 🍷🙂🌺
We agree interest rate is really important Cheers 🍷🙂🌺
The Millionaire next door is a wonderful book we have read it too Carole Cheers 🍷🌺🙂
Thank you. ❤️
69 but have not retired yet. Soon though. Estimate like you suggested at 300,000. No debts. Use but pay off CC monthly so no interest. God has blessed us.
Life is good Charles 💕
Hello Tina and Norm.
My wife Sandy and I have been listening to your channel for a while, love it and tell all our friends. Your lifestyle, financial and travel suggestions are great and we appreciate them and both of you. We’ve been to Portugal a couple of times and loved it also. I retired at 66 as a fee based financial planner and really appreciate your comments and suggestions on financial matters for retirees. I wish I had considered your idea to sell our house, rent and retired sooner. Because of you we are now considering selling and renting. We did pay cash for our home when we bought it in 1989 so it would have been easier to have rented earlier than we did and started traveling sooner. Either way we still feel very blessed to still be in good health and have all our
children and grandchildren close to us. Something I’d been researching and looking to is my new electric bike. Sandy is going to see how she likes it before she gets one. If you two haven’t tried one I highly recommend it! They’re a blast and get me out more and meeting new friends. If you two ever get down to the Vancouver Washington area please let us know. We’d love to meet you and show you around. Thanks for what you’re doing to bless people!
Bill and Sandy Caudill
That’s great William we are very pleased with our decision to sell our home and rent , not only do you get rid of unexpected maintenance and expenses but your freedom to just go and travel whenever you want . We would highly recommend in suite laundry is a huge plus , Tina really enjoys the swimming 🏊♀️ pool.
We haven’t looked into electric bikes yet but will take a look , good luck with your plans Cheers 🍷🌺🍺🙂
Own my condo worth 250 thousand and still working till I’m 65 for more savings that will put me in a good place when I retire.
Sounds like a great plan Cheers 🍺🙂
Excellent video! I am 56 and retired exactly three years today. I fall above the median as I am mortgage and debt free and have a generous pension which I live off of. I don't deny myself what I need or want, but I am careful about how I spend. I make sure to shop for sales and I am a point collecting huntress. Every month, when I get my pension deposited, I go to my Day Planner and log what my pension is, what the current balance in my chequing account is and compare it to the previous month. On average, I still have about $1000 left over so I end up saving between $10000 and $12000 a year, just on my pension income.
I had a colleague who retired when she was close to 60. She had been mortgage free for years and months before retiring she bought a hugely expensive home and went into retirement with a new mortgage. I still shake my head when I think about it!
As a retiree, everyday is pretty much a great day but Sunday is no longer Glumday. The dread of going back to work on Monday always put a dent into Sunday. I really appreciate the mental freedom that retirement brings !!
We agree Sunday is no longer the dread day of going to work , retirement is a wonderful new chapter in your life sounds like is working great for you too . Have a great weekend Cheers 🍷🌺🙂
Your story parallels mine! Living comfortably off my pension, mortgage/debt free and sitting on substantial savings/investments. Don't understand how some people can sleep at nights? Enjoy your retirement!🤩
@@retromoto9456 Congratulations on your successful retirement! Isn't the freedom wonderful? I never take for granted how fortunate that I am. Many of my colleagues retired in a similar situation and went on to work in either second careers or hobby jobs. To me, that is purely selfish. If they are bored, there are plenty of places to volunteer. Taking jobs away from people who need them is wrong.
@@msbeaverhausen7226 Thank you and likewise on your retirement! Totally agree about people getting another job. Not only selfish but defeats the purpose of "retirement." Not me! I want to savor every moment of financial freedom and enjoy the rest of my life. Isn't that what we worked so hard all these years? People sometimes don't make any sense.🤔
Thanks for the info! Although comparing net worth with a median figure, it would be really useful to compare it to the median of households that consider themselves “happily” retired, since of course that is the real goal!
Great suggestion! maybe that’s another video idea Anthony have a wonderful weekend Cheers 🍷🌺🙂
Anthony, that is a great idea indeed! 🙂
The one thing that's really important in this discussion is pension. I'm well above the median net worth, but I have no pension, so that net worth has to support me completely. Someone with a pension may have a very low net worth, but if the pension income is high enough they'll be fine.
So net worth calculations really should include the value of that pension, though they basically never do.
Great point.
We agree that’s interesting we do include our private pension money we have saved , how do you have no pension at all 🤔when doesn’t every country at some age give you one Cheers 🍷🌺🙂
@@ThisIsOurRetirementas a Canadian, I do have CPP, however not every country does have something like that. I was more pointing out that some people have generous corporate pensions, whereas other people have none.
Most people do not include the value of that pension in their net worth, and as such someone with a generous pension could comfortably retire even while carrying debt, whereas someone without a pension like that could be in trouble even with an above average net worth.
This case applies to me 😀 as I quit my career at age 47 ( last year ) and did not wait for pension age and years of service to be qualified for pension salary .. as I took lump sum amount of my pension in cash amount .. I am from Middle East .. however I am way above this median amount .. so I guess I will be good to Continue like this 😀
@@ThisIsOurRetirement In America, the concept of pensions has been realized to be much to costly for corporations to pay out. Except for State and U.S. Government, they still have pension plans although, they are diminishing from what they were in the past. US Military (like myself) still have pensions and has also been reduced somewhat. Most commercial corporations offer a generous 401K with matching options that have replaced the traditional pension plans. The only real U.S. universal retirement so called "pension" plan is our Social Security System, which is based on a workers total years of work best on points.
1 million with a financial planner, debt free, house valued at $390,000. Retired four years in California. Also pension and Soc Sec of about $4,000 each month. Good episode
Thanks for watching glad you enjoyed it Cheers 🌺
This is great, I have to say I have never given any thought to this comparison but I am really interested. I am pleasantly surprised. Having said that, I am not counting my house as I live in the GTHA area and house prices are absolutely ridiculous. So even If I sold my house for a million dollars, I would to remain in this area spend a fortune for rent.......I am just thankful i am of this generation because I have no idea how the young ones will fare.
Glad it was helpful!
My wife & I worked hard to save & get ahead professionally. With 2 grown kids 25 &27, we are comfortably retired. A new house built in Maryland and a new condo in Florida, we travel back & forth. We are debt free. We’re fortunate to have $158,000 in annual retirement pension income. We do t touch our IRAs until we have to age 73.
Thanks for sharing.
I circle back to your videos when ever I’m stressing about my upcoming retirement in 3-5 years. I am debt free BUT I don’t own a home. California rents are going crazy even the 55 yr + complexes. My fear is not being able to afford a decent apartment & stay close to family. Yesterday the news said the Ave home price in my county is $900,000 which has a $5000/mo mortgage 🤑
Housing is becoming increasingly expensive, Canada has gone crazy. Thanks for watching we do appreciate it. 😀😀
You should consider moving out of California high cost areas if you don’t own a home!!!
I am 65. Retired at 60. I live in the US. I am debt free and live well over the median net worth. How do I do it? I keep a low overhead. I have a paid-for roof over my head. I budget, but I have everything I need or want and then some. I live simply, but I'm happier that way. I guess I would recommend to people interested to save money, save for retirement, stay out of debt, budget so you know where your money is going, live simply and be happy.
Great advice Elizabeth!
Excellent work, both of you! I love the story: Take a simple concept of "pay yourself" and turn it into a life changing result. You are living proof it can work. Not to mention the brilliant work at creating a UA-cam channel and another income stream!!
My reason for writing though is to ask for a video that I suspect many of your followers secretly want to hear, but most folks will consider it impolite to ask. First, my reason for asking. I am 56 and plan on retiring at 60. I own one home in Maine on a lake free and clear and have 60% paid off on my primary residence in NY. Other than my primary mortgage I am debt free. My liquid net worth (not including real estate) puts me in the top 5% of savers in the U.S for my age. My concern is how will I turn my savings into income in retirement. I do not want to be an active investor as I am now, as I am keenly aware that equities can and do fall 50% or more in some years, and the lion's share of my retirement income will come from my own 401k. So my questions are all centered around how you generate and plan for income in retirement.
As such my questions are:
Can you put your budget into broad terms but use real numbers explaining your costs on items such as housing, food, auto, and travel?
Can you put broad numbers on your income buckets? (My suspicion is you have a couple pensions which is awesome, but uncommon in the U.S.)
Assuming at least one income bucket involves self directed investments, how do you protect from a potential decline?
If you are invested in equities is it self directed, and how do you determine how much to take out each year?
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In retirement, one can easily be conservative and live off interest alone, but if one wants to enjoy the fruits of ones labors that is probably too conservative.
Bottom line: How do you know and/or insure your income stream is secure and will last your lifetime?
Thanks for your comment Joe we have many forms of income , but as you know this is the Internet and we are not comfortable sharing actual numbers , we are just suggesting ideas that others might want to do Cheers 🍷🇺🇸🌺🇨🇦🙂
Watching your video was helpful to us. My wife turned 60 this spring and we decided to apply for CPP. Thank you.
That is awesome! We did too Manny we wish you both well Cheers 🍷🌺🙂
Knowing your net worth is a must! Helps you realize areas where you spend too much. 🌻Staying debt free should be the goal at any age.
Absolutely!! we agree Joyce have a wonderful weekend Cheers 🍷🌺🙂
Debt free is not always the proper method heading into retirement - good debt ( interest tax deductible) vs bad debt.
Reasonable leverage using debt works as long as you know the associated risks.
I still do not understand why some people sell their main home when its mortgage free and then rent. I understand it will release the equity but savings rates are dismal and inflation will eat away cash anyway. The stock market is artificially high thanks to quantitive easing so I am expecting stock prices to go lower. Hence why sell the house? My home is worth say 220,000 GBP in the UK but to rent a home like mine is 10,200 GBP per year plus the same utility bills and taxes as if I had my own home. In 10 years I would have enriched a landlord by 102,000 GBP and have NO increase in equity. I would rather stay put, keep my circle of friends and live within my means on what I have. My 'net worth" will eventually go to my grandchildren as in this current economic environment I feel they will need some financial help.
Good point. Net worth is often exactly that: inheritance to kids or grand kids. Or nieces and nephews
The way we see renting Steven is protecting our capital from unplanned maintenance of a home plus all the tiny incidentals light bulbs lawn care etc and property tax (Council rates). We are fortunate to have rent control which limits the increases to inflation and our utilities are included. Inflation has been at record lows for 10 years and the stock market has been a bull market for 15 years with great stock appreciation, dips in stocks will happen in a high inflation period but not back to levels 10 years ago. We invest in dividend stocks, Canadian banks and telecoms, we avoid tech and start up companies like Uber which are in free fall at the moment. Thanks for sharing your thoughts we appreciate it.
I did not receive anything from my parents and I don’t plan to die with my house paid off to leave my net worth to grandchildren. If kids keep on inharitating parents’ and grandparents’ net worth, nobody will work in the future generations. My 2 cents….
@@evadeanu1 I (Tina ) didn’t receive anything either from my parents due to a brother who hijacked my parents will 🤔
@@ThisIsOurRetirement wow!
If you want to protect your net worth over the10 years, ditch your fiat savings and buy physical gold and silver. Wealth preservation requires holding gold and silver.
Thanks for the suggestion Cheers 🍷🌺🙂
I retired at 56, mid-upper level manager. I'm now 65. I lived and worked in Canada , and when I retired I moved to a home I bought earlier in the Hollywood Hills, California. I pay cash for everything. House, cars, etc. We live below our means and follow a philosophy that if it has to be finance it, we can't afford it. We shop for the best deals on everything. Our Net Worth and income is far above average thanks to smart investing and saving. People don't understand the difference between wants and needs, and deferred gratification.
Sounds like some great advice Murray thanks for sharing have a wonderful weekend Cheers 🍷🇺🇸🇨🇦😎
We retired 7 years ago, debt free, owning our own home and we have always lived a very simple life. We are 100% self funded (in Australia) from our retirement pension pot which started at $1 million and 7 years later is a little over $ 1million even after the Covid crash and 5% yearly drawdown. For us retirement is about relaxing, gardening, walking with our dog and making sure that our daughter gets a good inheritance.
Congratulations
The biggest risk for older folks is to retire with debt! We retired with no debt (credit card, mortgage, car note, etc.). Also, it’s important to have enough income (pension, social security, coming in so that if everything turns upside down (re, investment income) you still have enough income to meet your monthly income (rent or maintenance payment, food, out of pocket medical bills). So, I would suggest to older folks to review your finances before retiring. Of course, some people may be forced to retire before they intend (job loss) so doing the above exercise is critically important.
Thanks for watching and your comment enjoy your weekend Cheers 🍷🌺🙂
Worked my whole life (since i was 17). I never lived extravagantly. I have very little to show for it now. I used to read those Globe & Mail articles and they sounded like science fiction to me.
This was an excellent video with good information. As I compare my Canadian friends to American friends, I notice that the Americans have "toys" and buy "tchotchkes," often on credit whereas my Canadian friends seem to spend their money on experiences. Please do not beat me up here - just my observations. We are older than the upper age of your comparison and are doing much better than the numbers you gave for Americans. Thankfully, we were well employed, our house is paid for and the investment Gods have been good to us. I enjoy your videos.
Thanks for watching Carole Anne we appreciate it , have a wonderful weekend Cheers 🍷🇺🇸🇨🇦🌺
Thank you, Norm and Tina. Very helpful. I am 63 and plan to work seven more years, God willing.
Many years ago I was talking to a banker and describing my retirement goals and he came up with an unrealistic investment plan to reach those goals. Then I told him about the corporate pension plan that I was paying into and he started talking about the “future value of money” and what that lifelong revenue stream would be worth when I retired. I thought that you would simply take the annual pension and multiply by expected life span and voila, you’d have your value but no…he said the actual value was determined by the amount of money needed to generate returns equal to the pension payments in the market conditions prevalent at the time. So for ease of figuring if you had an annual pension of $50,000 dollars and an almost risk free 5% return was easily attainable then your pension asset would be valued at $1,000,000 dollars. Of course if higher returns were available your asset valuation would be lower…10% return would result in a $500,000 valuation and the opposite would be true for a lower return…2.5% would require a valuation of $2,000,000 dollars. So although my banker originally thought my goals were unobtainable it turns out I was in better financial shape than either of us thought and I retired three years ago at 57. So if you have a reliable revenue stream for your retirement you are probably doing better than a simple material asset assessment indicates.
very interesting, another concept is to only take half the interest rate so you leave half to offset inflation. Thanks for sharing your thoughts.
I believe that you are referring to the "present value of a perpetuity." It is the cash flow/year divided by the yield of a 30 year US Treasury bond. Or $1,547,987.
The number is not part of net worth.
@@DavidEVogel David I agree! However, having a nice guaranteed pension puts a new perspective on things especially sleeping at night in retirement
Over the years, our regular investment advisor has done periodic net worth calculations with us. So we always had a general idea but had not compared it to the national median as you did here -- thank you! My employer's defined contribution plan is with Sun Life, and last year we took them up on an offer to work with one of their advisors to draw up a comprehensive retirement saving & spending plan. The advisor was excellent and she really put our minds at ease. Including our house and what's left of the mortgage (soon to be paid), our net worth is well above the national median a year and a half away from retirement.
I am thankful to my younger self for investing as soon as my career was established, and for making the right choice in a spouse. I am also very pleased to have found your channel today!
It’s great when a plan comes together, well done your younger self. Thanks for sharing this story!
I'm over $2M at 49 thanks to higher real estate values. Anything under $1M seems really scary to me if you are in your 60's.
Don’t forget the pensions and benefits you receive from government, we live on them without accessing any capital for day to day life. So under $1M is very doable especially as overs 60’s start consuming less. Thanks for sharing your thoughts.
@@ThisIsOurRetirement That is true for most people, and good point. Since I've been self employed my whole life I haven't paid much into the system so I don't plan to get much out and never factor that into my numbers. But my parents get a decent amount.
For now and the foreseeable future, inflation is the largest risk to fixed income retirees. There will be a lot of home cooking, DIY and anything to control expenses.
It is definitely something to be aware of today Cheers 🍷🌺
We were able to pay off our mortgage 5 years ago, I was 52 and my husband was 58. Our net worth has gone up considerably over the past 2 years for a few reasons. Obviously, we aren't paying a mortgage so it's easier to save money. Secondly, the price of homes has sky rocketed in Southern Ontario. Third, no debt. Lastly, we just haven't spent as much during the pandemic. Not sure if our home value is that significant because if we sold, we'd have to purchase another home which is costly or pay rent which is high in our area. However, we could sell our home and use the equity to rent if it were necessary. We have choices and that's a good thing. Have a great weekend.
Yes that last two years our net worth has gone up as we weren’t spending on travelling, you mentioned selling your home you could then invest that money 💰.In Ontario we are lucky we have rent control so our increase is only 1.2% this year so that could help you too. Have a wonderful weekend Cheers 🍷🙂🌺
Thank you for bringing it to our attention the fact that just how little the median net worth is. Acknowledging the fact that we are many times ahead I stop for the moment, but than realise that it is against my nature to slow down my wealth creating journey.
Definitely interesting numbers Anna but don’t slow down your wealth 💰journey it gives you options Cheers 🍷🌺🙂
Totally agree with you about updating your networth often. I've followed this practice for past 25 years and found it very motivating and encouraging to continue to invest and see my networth grow. I was able to retire early at 55 years old with no mortgage. Living a very comfortable lifestyle with a generous travel budget and funds to spoil my grandchildren as i like. I am happy that I took saving and paying my mortgage off early seriously. Thanks for your weekly videos! 😀
Thanks for sharing! glad you enjoy our videos Tina , have a great weekend Cheers 🍷🌺🙂
We are Blessed!!! Payed off mortgage in 1990, we're 67 and 70. Live simple lives, raised our boys and can live in the country here in California.
Thou not cheap, being debt free makes big deference!!!
Thanks for watching Frank we think being debt free is the secret to a happy retirement Cheers 🍷🇺🇸🇨🇦🌺
With inflation rising and our portfolio dropping its been hard to make a decision to retire. I’m leaning towards retiring next year though. Hubbies been retired three years now. We’ll have no debt by then and our house finished.
Inflation is a problem but could be short lived as it was created out of the pandemic. Just don’t over think retirement as you may never do it. Thanks for watching we do appreciate it.
We do monthly accounts, 3 monthly trackers of net worth, always live within our means and keep a reserve fund for emergencies. We have no debts and 1 credit card for travel etc. we grow lots of our own food and keep good food stocks for hard times. We also volunteer for local support groups and our local food bank. It gives us confidence in our retirement and peace of mind.
Sounds like a wonderful plan all round and very well organized Gwyneth have a great week Cheers 🍷🌺🙂
I have mixed watching this video and reading the comments, because I am below the median, however, just knowing I have enough to live on, pay taxes and insurance, plus get a burger or go for a drive once in a while makes me feel ok. I am 67 and still working, because, even though my house is paid off, it could use some things like new doors and other items to help improve energy use. I am feeling envious of those with more, however, I also believe in thoughts bring to me what I am thinking and feeling, so, I am using positive thinking/gratitude, and looking into other ways to have more money coming in, without continuing working for someone else. It is all good, and I always get a kick out of watching both of you and your interactions. You could do a channel dedicated to advice for couples, because you both have done well in working together and staying in love!
Thanks for a lovely comment Cheers 🍷🌺🙂
57 years old, still working, no mortage, no car payments. 1.2M net worth without residence, 1.7M with. Projected social security (if it will be still around) income at USD3,300 if retiring at 67.
That should be a great nest egg and income
Looks like I am doing ok! Thanks for the how to check up! less than 20 months for me as far as I can figure!
That’s great thanks for watching
There is an underclass in the USA that pulls net worth downward in relation to Canada.
Good point, thanks.
I’m 69, single, no kids, no debt… own home, have almost $2m….was able to travel and have fun in younger years and continuing to travel…world is a strange place now…enjoy it while you can…
You are right the world 🌍 is a little strange at the moment so enjoy each day as it comes 🍷🌺🙂
Hi there! We live in the U.S. in Florida. I am 59 and my husband is 60. My husband was recently laid off from his job and keeps saying he wants to be retired. Personally, I think we can retire now but my husband is more cautious and thinks we are not ready. We own 2 homes, one we live in and one we rent out, and are mortgage and debt free with a substantial nest egg. Barring health issues and any economic crashes, I hope we can both be fully retired at age 62. I do the financial net worth check ups several times a year and so far we seem to be well our way. I enjoy your videos and shared this one with my husband-hope it makes him feel better about jumping into the retirement pool with both feet!
It sounds you are well prepared for retirement the only problem is healthcare costs, other than that you seem to be able to retire.
I am 66 and plan to retire in Portugal within the year. I think including an annuity is an area of controversy. I have read that you can include your pension (I'm not including Social Security income, although some people do as well) because it is guaranteed and, while you can't access the whole amount, it is a stable and steady amount for the rest of your life (I have a state pension). Given what is going on in the US economy, your net worth fluctuates and there is no safe place for the money. Bonds aren't good, stocks aren't great right now, and the real estate market is overvalued, but great if you are a seller. I am counting the value of the pension in my net worth (calculated with the value of 26 years worth of this passive income) and my investments to be close to $700,000. At the end of the day, it is what you can live on. Also, I will evaluate whether or not buying real estate with a mortgage is in my future. It is another asset class. I understand that your mortgage isn't considered an asset but it is something that is steadily increasing in value in Portugal and has a low interest rate. I am watching my investment (very conservative) go down for months now and it is unsettling as I am closer to retirement. Add to it, the current rate of inflation, and things are getting very tricky. So, to sum it all up. I'll take my pension income over the wild ride of a crazy market as a preferred source of value right now.
A great comment and a good way at looking about your assets and income, we haven’t included pension income in our statement but you do put forward an interesting point. Good luck on your retirement to Portugal it is a nice country with lots to offer a retiree.
I use Mint to track everything and I really like it because it makes me really pay attention to my spending. So I've been watching net worth for about 2 years now and it has made me excited and more ready to retire.
Thanks for sharing!! enjoy your weekend Debbie Cheers 🍷🌺🙂
The net worth is less in US because of large debt which includes credit cards and home equity loans , not the actual home prices . Also more people in Canada own homes 70% ,compared to US 64%
I live in the US but I pay cash for everything. I pay credit cards weekly. Such a good feeling knowing that you don't have to rely on anyone else. But I've seen plenty of studies showing that there are a lot of people who have less than 50,000.00 saved...yikes!
Thanks for watching Scott Cheers 🍷🌺🍺
Another risk out there is tying up your net worth to the stock market. All this paper wealth in your investment account can be reduced significantly in a financial crisis.
Yes you are correct we balance some in stocks and others in Bank accounts Cheers 🌺🍷🙂
I did the Globe Financial Facelift back in 2000 and 2020. Some net worth calculations don’t include pension plans, this is a mistake IMO. Employee contributions to workplace pension plans are otherwise ignored and skew net worth lower. There are excellent apps to track income, expenses and net worth. Debt free here since age 54.
Sounds great have a great weekend Cheers 🍷🌺🙂
Retired 13 years. Mortgage paid when retired and going to put our place up for sale soon. Great advise.
Sounds great Laura we wish you well with your future plans are you buying or renting smaller in the same area or moving to a new place good luck 🍷🌺🙂👍
The only problem I have with net worth as a metric is that it doesn't actually give you an income figure and is very dependent on various markets at the time.
Our net worth over the last couple of years has also gone up by quite a bit, we are only around 61-62 and living off savings, which is just a completely unusual thing to happen and has basically been a result of money printing and debt in the major economies.
I estimate our net worth has gone up about 300k+ but it is just a number on a page in reality.
Our net worth is around triple the Canadian figure you quoted but I'm thinking about going back to work with all that's happening, at least part time.
We don't have the ridiculous housing taxes that most of you guys have, well most places don't, and our council rates have gone up very little in spite of the price of houses going beserk.
For me being debt free, which we have been for a couple of decades, is paramount but as you say it is becoming less common.
We agree about income and it's something we have thought about doing a video on as it is hand in hand with net worth. We are certainly headed for some interesting financial times, lets hope it doesn't get as bad as the late eighties in the UK. We have had 20% mortgage interest in our life time, something that hasn't happened for more than 30 years.
@@ThisIsOurRetirement You will have likely worked out that I'm rather fatalistic about the times we find ourselves in but then I've always been very conservative.
Everything is just so linked now and it has been a long time since we have had a really serious economic shift.
We have had more cash in the bank than most "experts" recommend but I like knowing that we have years of costs when we need it, assuming of course the banks remain strong.
Time will tell as always and I certainly hope I'm wrong.
Cheers.
My husband and I are above the median in th u.s. We do still have a small mortgage. I am 56 and just retired, my husband is 59 and retiring in a few months. We have been planning early retirement since our 20's
Sounds like a great plan Rhonda 🍷🌺🙂
Rhonda, are you retiring with any retirement savings? If so, how much? I’m in my early 50s and saving like mad thinking I may need a decent amount of savings. Cheers.
@josephj6521 yes I have savings, not as much as I'd like but I have a pension, a reduced amount because of my age but it's enough
Great info here. People should do what they are comfortable with. However, its also important to look at the balance between asset classes. I'll retire with a huge mortgage debt (as in millions) but my fungible assets are much higher and are better invested elsewhere. Meanwhile, my wife and I also have a solid fixed income base making it possible to avoid drawing on assets during bad investment years. The balance I suggest people to consider as an option is: 1/3 real estate, 1/3 life long pension and 1/3 liquid assets. Final point; it is extremely important to have liquid assets. The tragedy for a lot of Americans is that they live pay check to pay check necessitating expensive bank and credit card debt for emergencies that cost a lot of money to service.
Thanks for sharing have a wonderful weekend Cheers 🍷😎🍺
I'm retired. I am an old man. My (our) home is paid for. No mortgage. My cars are paid for, but they are newish and run well. I plan to keep them that way. My investment income and retirement income keeps us afloat. My military medical insurance reduces medical expenses. We do not buy much. I check out books. My wife and I are happy as clams at high tide!
My wife and I are both upper 60s.
I am retired several years, my wife is retired less than 2 years.
We sold our house in northwest NJ 2 years ago, and bought a 55+ lot in Deleware, then built a house, 2400+ sq feet, ranch, no stairs.
What I find most remarkable about 55+ living is that everybody here is in the same boat, nobody has the world by the tail.
People are quite blunt about the disappointments in their lives, not a lot of BS here.
Kind of like high school, but instead of comparing all the teachers in the school, everybody here talks about their doctors. :)
I think 55+ is worth it if you can afford the few extra bucks.
Very interesting Tom the biggest problem we have in Canada is finding a family doctor. We don’t have many 55+ communities, our concern would be the HOA fees. We are glad it is working out for you both. Thanks for sharing this.
My husband and I are retired now, but before we did so, we decided to see just how much our life cost us. For the first year we saved every single receipt and then categorized it on an excel spread sheet in different categories. We made no effort to change our lifestyle that year, which was about average for Canadians our age. After one a year, we had a good opportunity to see just where we spent our money, and if we wanted to make any changes before we retired. We decided to keep the experiment going for a second year, but this time tweaking certain areas of our spending. While we didn’t slash and burn (!), we did shear off about $4000+ of expenses without negatively impacting our lifestyle. We feel that we entered retirement in a really good way, because we were prepared for what we spent, and what we needed to live happily. Importantly, we retired without debt of any kind and a strong portfolio.
We believe like you Jancy planning is the key to a successful retirement, being prepared and informed. Ultimately being debt free is the key!