@leanit5756 Lol! REALLY?! Ever here of a Sports figure or a Lottery winner going broke with 10 times that amount?! 4% Rule puts 2.6 Million at only 104K/year. Try buying a house or 2 and a fancy car or two and Jet set... Can be blown in no time!
Hey Ari, I love your videos. I'm pulling the trigger on retiring in two weeks (at 60). Numbers wise, everything looks good. At average returns, I'll be pulling around 4% until SS kicks in and then I'll be around 2.5%. It's still scary thinking about turning off the paycheck spigot, especially with the market volatility and the crazy world. Your videos always calm my nerves, though :).
Great video, hit close to home for me. I am in that 2 to 5 year window to retire early. I have been trying my best to model into the software as many of the expected and unexpected expenses I can think of to best avoid any huge surprises in retirement. I have a family with college bound kids during my early retirement so I have that in there as well. My 3 biggest concerns are market performance next few years, health care expenses continually outpacing inflation, and SS cuts in the future. I am ready to stop working but want to make sure I do not have risk of running out of money but also want to have plenty of money so the stress of managing my retirement is not stressful. Would love to have the funds to afford someone like Root but when I model in that AUM fee, it's a huge hit to the overall plan
Actually I think your college bound kids should be your greatest concern. Will they graduate? Will it take 4 years or longer? Don’t expect them to have a good paying career job immediately upon graduation. Do you plan on selling your home? It may be years before they’re able to support themselves. And there’s a lot of assorted college expenses other than tuition, room and board. Sorry if I just blew up your software projections.
If you setup the software properly what he’s adjusting would be your after tax spending and also exclude housing. Housing is separate as are goals and vacations from the monthly spend field. Took me a while to figure that all out. Looking at the waterfall detail view really helps show it all
He will be fine at that income to show taxable income if he is trying to qualify for aca subsidy. Sounds like he actually will make too much for subsidy. The challenge is showing taxable income for subsidy if you want to live on 50k before age 59.5. Brokerage acct won't suffice and roth conversion msy not make sense if youre in a lower tax bracket when retired
How realistic is part time income in retirement? I’m in IT. Getting a job in my field is nearly impossible at 55, much less 65. I don’t think it’s wise to assume I’ll have that option. That’s not even taking health into consideration. Even if jobs are available, is it wise to bet on being healthy enough to work?
Let’s do the math on one of my bucket list trips: 8 day Rhine River cruise ($14,000); 2 rt business class tickets from Chicago to Amsterdam ($10,000); additional 2 weeks having fun traveling through Germany/Belgium ($200/day X 14 days =$2800). Total for 3 week trip is $26,800. That leaves $18,200 to divide between spring/summer travel in North America plus winter travel in South America. I agree it’s a red flag - Ari should suggest travel budget of $50,000. ❤❤. The point is that everyone is different - and their plans, desires, and budgets differ too.
The guy is single with no children. Retirement success with those account balances should be a slam dunk.
For sure. How could a person possibly screw up a retirement with 2.6M, even with dependents?
@leanit5756
Lol!
REALLY?!
Ever here of a Sports figure or a Lottery winner going broke with 10 times that amount?!
4% Rule puts 2.6 Million at only 104K/year.
Try buying a house or 2 and a fancy car or two and Jet set... Can be blown in no time!
Thank you, Ari! This was really interesting to see how small changes, and especially spreading out large expenditures, can make a huge difference.
Hey Ari, I love your videos. I'm pulling the trigger on retiring in two weeks (at 60). Numbers wise, everything looks good. At average returns, I'll be pulling around 4% until SS kicks in and then I'll be around 2.5%. It's still scary thinking about turning off the paycheck spigot, especially with the market volatility and the crazy world. Your videos always calm my nerves, though :).
@@KxK-ty5bq thank you…and CONGRATULATIONS!! Sounds like you’re in a very strong spot.
@@earlyretirementari Hey! Thank you! I'm excited and nervous.
Great video, hit close to home for me. I am in that 2 to 5 year window to retire early. I have been trying my best to model into the software as many of the expected and unexpected expenses I can think of to best avoid any huge surprises in retirement. I have a family with college bound kids during my early retirement so I have that in there as well. My 3 biggest concerns are market performance next few years, health care expenses continually outpacing inflation, and SS cuts in the future. I am ready to stop working but want to make sure I do not have risk of running out of money but also want to have plenty of money so the stress of managing my retirement is not stressful. Would love to have the funds to afford someone like Root but when I model in that AUM fee, it's a huge hit to the overall plan
I’d recommend reading this: advisors.vanguard.com/content/dam/fas/pdfs/IARCQAA.pdf
Actually I think your college bound kids should be your greatest concern. Will they graduate? Will it take 4 years or longer? Don’t expect them to have a good paying career job immediately upon graduation. Do you plan on selling your home? It may be years before they’re able to support themselves. And there’s a lot of assorted college expenses other than tuition, room and board. Sorry if I just blew up your software projections.
Is the spending amount per month after taxes or before in your worksheet?
If you setup the software properly what he’s adjusting would be your after tax spending and also exclude housing. Housing is separate as are goals and vacations from the monthly spend field. Took me a while to figure that all out. Looking at the waterfall detail view really helps show it all
After
He will be fine at that income to show taxable income if he is trying to qualify for aca subsidy. Sounds like he actually will make too much for subsidy. The challenge is showing taxable income for subsidy if you want to live on 50k before age 59.5. Brokerage acct won't suffice and roth conversion msy not make sense if youre in a lower tax bracket when retired
Hi Ari! Great video! Where are the expenses for medical insurance before 65? It’s so expensive … in California. Thanks so much!
Thank you. It’s defaulted on at ~6k/year and not as much as you think: ua-cam.com/video/BykvoxJEWGo/v-deo.htmlsi=qY5dhO7aZu7w8N-3
How realistic is part time income in retirement? I’m in IT. Getting a job in my field is nearly impossible at 55, much less 65. I don’t think it’s wise to assume I’ll have that option. That’s not even taking health into consideration. Even if jobs are available, is it wise to bet on being healthy enough to work?
Completely depends on your field and flexibility
What about Long Term Care at the end of life. That could be a large number.
Use the analysis tool in the academy to plan for it!
What do you think of VMFXX instead of BND for the 40% of your “bond” part of your portfolio since it has never broken the buck?
VTI 42% BND 30% VXUS 28%
@ but BND was not protective in 2022. VMFXX was.
Is the 120k net or gross ?
@@andrewrichmond2989 always net
Your tool is showing us “current allocation”? What is his current allocation? That matters.
65% equities, 30% fixed income, 5% cash.
$45, 000 for traveling? This is surely a red flag 😂
Some people!
@@earlyretirementariis that 45K per month? Monthly spending was 10k just above.
@ 45k year
Let’s do the math on one of my bucket list trips: 8 day Rhine River cruise ($14,000); 2 rt business class tickets from Chicago to Amsterdam ($10,000); additional 2 weeks having fun traveling through Germany/Belgium ($200/day X 14 days =$2800). Total for 3 week trip is $26,800. That leaves $18,200 to divide between spring/summer travel in North America plus winter travel in South America. I agree it’s a red flag - Ari should suggest travel budget of $50,000. ❤❤.
The point is that everyone is different - and their plans, desires, and budgets differ too.
@@clutchputt4640 as long as you keep annual expense under 6% of the assets.