Want me to look over your numbers? You've got options. Check out my website for more information. Note: I do not discuss offerings, pricing, etc. in these comments. Please proceed to the website, where you can find a substantial amount of detail.
I retired 20 years ago at 45. I had about $100k cash, $400k home equity and a $2200/mo mortgage. Crazy right? I was surprised it worked. Today at 65 I have $550k home equity, $22k cash and haven't taken SS yet and don't plan to until 70. Crazy right? It's all about lifestyle. When I was working I spent a lot of money on entertainment, eating out and buying crap I thought was fun. But in retirement I gained 2 important assets...time and freedom. Those 2 assets can be used to live a happier and simpler life. UA-cam is full of retirement videos based on the concept of living basically the same life as when working...just more time available to buy more crap you don't need. There are other ways.
I retired at 47 remarried now worth 3 million.. I rent the rest is invested.. wiffey works.. I took ss at 62 why to allow my investments to grow.. Why remove growing assets only to get a pittance from ss.. In that time I doubled my investments.. You do not have enough cash.. your mortgage is eatting you alive.. Observation..
The most important thing (in my world) is to adjust your lifestyle. I hated my job but would have stayed, however, I got laid off and it was a blessing in disguise. I was under so much stress at work, I'll adjust my lifestyle to make a million work. I'm 59 and a half and have never been happier living without the stress of that horrible job.
I'm the same age and the exact same thing happened to me. At first, I was going to get a new job until age 62, but I decided to just cut back and sell a few things I didn't need--motorcycle, watch collection, etc.--and make this an early retirement. Couldn't be happier!
Yes, I got laid off from a stressful job in 2008 and had only part-time work for two years. But I lucked out as the clown who laid me off got fired and I was immediately rehired. Making more than ever now.
I’m 58 and retiring next year at 59. I have about $900K in retirement accounts and about $30K in the bank and owe $62K on my mortgage. I’m lucky though, I have a pension which is close to $9K a month plus my medical is paid by my union.
Going out sooner. We have hit our numbers. Getting off the hamster wheel at 57. Going to do ACA until medicare. Then turn on SS which will cover our household expenses alone.
I am curious about that possibility also. I have chronic health problems and don't think I have another 10 years that I can keep working 12 hour days. The website is quite confusing so I am not sure what income levels are required.
@@chrisniner8772 yes get ACA broker. I had never heard of them until my friend used one for Medicare. He was ever so helpful and submitted all the paperwork for me too! And he doesn’t cost me any money 💪
Please stop with the whole "you need a million dollars to retire" stuff. It isn't true and it's never been true. I retired almost 8 years ago and have not touched a dime of the retirement savings. That basically means If I only had 10 bucks in my savings I would still have the 10 bucks. The key to a smooth retirement is being debt free by the time you walk away from your job. Just remember, it matters more how much you owe than it does how much you have.
I needed to see this as I'm 59 and just got laid off. I have a little over a million saved and I might just retire. I paid off my house years ago, but still have a car note and some credit card debt. You are great at explaining this. Thank you!
Should have kept mortgage and paid off CC, car. Mortgage rates are higher now but if lower than CC, car then I’d finance those to zero with some of the house asset.
“A lot” is a relative term - “a lot” for what? $1m is dirt cheap for, say, getting an entire office building in midtown Manhattan. $1m is extremely expensive for, say, a hot dog. Obviously, $1m isn’t a trivial sum of money no matter who you are. The question here is whether it is enough, let alone “a lot”, for needing to cover the full living expenses for an individual living somewhere in the U.S. across a typical 20-30 year retirement.
@0:58 Jane Doe needs 5.2% withdrawal rate until age 67 then a 2.8% rate to make up the difference with social security. Seems reasonable. Now to watch the video and see how you plan it. 😎
Very timely as I am 60 and starting to think about things like retiring from my job. I do know I need to sit down with a financial advisor at some point to plan out a strategy, but like many I am a procrastinator (the first rule about overcoming a challenge is recognizing you have it ;) ).
Excellent video - great coverage of the main issues and the example of Jane was nice a refreshing (usually it’s a married couple!). I retired early 18 months ago and have studied this topic quite deeply. Only 53 so I had to figure out if I could retire and be financially set. After researching I feel quite comfortable now. Thanks for the great video 👍
I recently turned 60 and my net worth will pass one million shortly. If there was national health care and elder care I'd retire now and free up a job for a younger worker. But as the US has such a Darwinian view of both I plan to hold on to my job (and employer health care and life insurance) a very long time.
@@stemikger It definitely would not be better than what I get at work (and does ACA have dental and vision)? A year has passed and I'm 61 and worth $1.2 million. But I am not retiring anytime soon. The system gives me no incentive to make room for a younger worker. It's dog eat dog Darwinism in this country.
Interesting. I will turn 62 this summer, single, no kids, ZERO debt, with $970,000 in retirement savings. I project my monthly expenses in retirement to be just under $4000. Can I retire at the end of the year and not run out of money? I recently moved to a conservative allocation of 45% equities, 55% fixed. The savings is a mix of my 403B and my Roth IRA.
Yes 24hr in-home care is very expensive, I was writing almost 10K check every three weeks as her PoA.. Luckily my Moms assets outlived her and was never in danger having to sell her condo.
there's no utility in comparing what you saved versus median or average on the survey, since it has zero impact on your situation. So saying that having a million dollars saved puts you in a relatively good position is absolutely meaningless, since it is just comparing yourself against someone else. Yes, you are in a better situation than other people, but there's like no utility in that comparison. i enjoyed the rest of the video though.
Thanks for the info. With family, the San Juans and SE UT to continue exploring, and too many other hobbies, retirement should be plenty busy for us. When to switch from accumulate to distribution is our question.
Sounds like you are not too far away from here. And yes, when to flip that switch is one of the biggest questions pre-retirees face. It can certainly be a scary one, as there's no way to predict the future. You can do all of the right things before you quit working, but we can't eliminate the unknowns. And on the flip side, it's important to enjoy life while we can.
Our offices are about two blocks apart. 🙂 I moved here for similar reasons as you. Been learning about retirement planning, watching videos, and the YT algorithm included yours. I kept thinking gosh those look like San Juan and Electric Hills background pictures. Hah.
Well, that explains it! Yes, I had to use some of the nearby scenery to make things pretty. Great to hear that the videos are getting into the mix, and please say hi if we ever cross paths out in the real world.
2 years ago I was planning on a 5 year time horizon, now i have to add 5 more years. This free crap feels expensive when you are one of the few paying.
How did Jane at age 59 (0:27) file income tax the previous year and have a social security distribution of $44k (3:44)? I know it's supposed to be a fictional example, but there seems to be a clear problem, unless I'm not understanding something of which is the reason I'm interested in researching with this video as a reference help.
Good question, and that tax return is for tax year 2033 (obviously just a projection/estimate). By that point, she's old enough for benefits. You might be able to see a little drop-down menu at the top of the screen where we can change the year.
61 and retired. Have about 900000 in deferred accounts. When i run online roth conversion programs (many of them) they tell me its not worth doing a roth conversion while staying in 12 % bracket. WHat am i doing wrong?
That's tough to say without knowing all of the details and doing the calculations myself. Those calculators could be assuming that future tax rates are low for some reason, but I can only guess. The more advanced the calculator, the more moving parts. For example, Right Capital or New Retirement should be able to provide some helpful guidance once you get the numbers/assumptions in the way you want.
Dividend stocks account for about 20% of my retirement portfolio. I started moving part of my retirement savings into dividends about 5 years ago. They are currently paying about 3.5%, based on today's prices, or closer to 5% when looking at purchase price of the stock. Along with the dividend, these stocks, all being very strong, long term dividend payers, have increased in price also, and there is no reson to expect them not to grow in the future. Dividends are a great PART of any retirement plan.
LTC is certainly one of the biggest challenges in retirement. She has her home equity, but we don't really dive into those details, and there are a lot of unknowns. How much is the property worth, and how would she access that money? Will she just need help around the house for a few hours, or will she need round-the-clock supervision and care in a facility? Does anybody else need to live in the home, etc.? That would all be worth examining.
She isn't cutting anything close. She's in her early 60s with $1 million, social security at full retirement age for people able accumulate that type of nest egg will be in the $2000 to $3000 range. Assuming she will get $2500 a month and her expenses are $3800 per month plus $500 for medical coverage on the ACA so $4300/month is what she needs from savings until she reaches age 65 and goes on Medicare. That drops her monthly expenses to about $4000/month. Age 67 she gets $2500/month from social security leaving only $1500/month she needs to pull from her savings. She can solidly retire.
I totally disagree. She could probably retire a year earlier if she wanted to. Also, LTC is not always needed. If you maintain a healthy lifestyle and don't let yourself fall apart, most people can maintain a high level of vitality until the very end. We are so use to seeing people spend their last several years in a terrible state that we've forgotten that it doesn't need to be that way. That kind of deterioration is often self-inflicted by poor lifestyle choices. In any case, all the different variables that can be tweaked, as illustrated in this video, pretty much prove that you can retire with confidence with even less than a million, as long as you are flexible, willing to make changes in real time, based on current market conditions, etc.
@@dlg5485Yea. The best “medication” is exercise. And I will never do LTC. I’m a nurse by profession so I know what that entails. I’ll go until I can’t go and the hospice comfortably into “heaven.”
Want me to look over your numbers? You've got options. Check out my website for more information.
Note: I do not discuss offerings, pricing, etc. in these comments. Please proceed to the website, where you can find a substantial amount of detail.
I retired 20 years ago at 45. I had about $100k cash, $400k home equity and a $2200/mo mortgage. Crazy right? I was surprised it worked. Today at 65 I have $550k home equity, $22k cash and haven't taken SS yet and don't plan to until 70. Crazy right? It's all about lifestyle. When I was working I spent a lot of money on entertainment, eating out and buying crap I thought was fun. But in retirement I gained 2 important assets...time and freedom. Those 2 assets can be used to live a happier and simpler life.
UA-cam is full of retirement videos based on the concept of living basically the same life as when working...just more time available to buy more crap you don't need. There are other ways.
I retired at 47 remarried now worth 3 million.. I rent the rest is invested.. wiffey works.. I took ss at 62 why to allow my investments to grow.. Why remove growing assets only to get a pittance from ss.. In that time I doubled my investments.. You do not have enough cash.. your mortgage is eatting you alive.. Observation..
Water, your numbers don't make sense. How did you only spend 3,900 cash p/year?? Your mort alone was 26,400 a year. Please explain.
How to retire on one million:
1) get one million
2) retire
The most important thing (in my world) is to adjust your lifestyle. I hated my job but would have stayed, however, I got laid off and it was a blessing in disguise. I was under so much stress at work, I'll adjust my lifestyle to make a million work. I'm 59 and a half and have never been happier living without the stress of that horrible job.
I'm the same age and the exact same thing happened to me. At first, I was going to get a new job until age 62, but I decided to just cut back and sell a few things I didn't need--motorcycle, watch collection, etc.--and make this an early retirement. Couldn't be happier!
Yes, I got laid off from a stressful job in 2008 and had only part-time work for two years. But I lucked out as the clown who laid me off got fired and I was immediately rehired. Making more than ever now.
I’m 58 and retiring next year at 59. I have about $900K in retirement accounts and about $30K in the bank and owe $62K on my mortgage. I’m lucky though, I have a pension which is close to $9K a month plus my medical is paid by my union.
Going out sooner. We have hit our numbers. Getting off the hamster wheel at 57. Going to do ACA until medicare. Then turn on SS which will cover our household expenses alone.
I am curious about that possibility also. I have chronic health problems and don't think I have another 10 years that I can keep working 12 hour days. The website is quite confusing so I am not sure what income levels are required.
@@chrisniner8772 Find a ACA broker. They know the system.
@@chrisniner8772 yes get ACA broker. I had never heard of them until my friend used one for Medicare. He was ever so helpful and submitted all the paperwork for me too! And he doesn’t cost me any money 💪
@@chrisniner8772mind me asking how much you’re paying for your medical coverage? It’s my major concern about retiring early.
Please stop with the whole "you need a million dollars to retire" stuff. It isn't true and it's never been true. I retired almost 8 years ago and have not touched a dime of the retirement savings. That basically means If I only had 10 bucks in my savings I would still have the 10 bucks. The key to a smooth retirement is being debt free by the time you walk away from your job. Just remember, it matters more how much you owe than it does how much you have.
I needed to see this as I'm 59 and just got laid off. I have a little over a million saved and I might just retire. I paid off my house years ago, but still have a car note and some credit card debt. You are great at explaining this. Thank you!
You’re golden if you can keep your expenses modest
Should have kept mortgage and paid off CC, car.
Mortgage rates are higher now but if lower than CC, car then I’d finance those to zero with some of the house asset.
Million dollars is not a lot? Many people will not even see 6 figures, much less 7 figures.
Speak it bud
“A lot” is a relative term - “a lot” for what? $1m is dirt cheap for, say, getting an entire office building in midtown Manhattan. $1m is extremely expensive for, say, a hot dog. Obviously, $1m isn’t a trivial sum of money no matter who you are. The question here is whether it is enough, let alone “a lot”, for needing to cover the full living expenses for an individual living somewhere in the U.S. across a typical 20-30 year retirement.
@@joefunk76A lot as in terms of retirement for the average population who would be lucky to retire with $300,000.
@@joefunk76only 9% of retirees will have 7 figures
Most people don’t want to be a millionaire, they want to spend a million dollars.
For me, golf gets old after about the third hole…….😂
If I had 1million at 60
It would be a no brainer and retire
Totally depends on your expenses in retirement. Many people could do it at 60 with a million. But not everybody
@@johngill2853 then that’s pretty sad! Choosing living the vida loca for sanity and freedom
You could be broke in 10 years. Although you’re right if you could do well on delaying for full SS
@0:58 Jane Doe needs 5.2% withdrawal rate until age 67 then a 2.8% rate to make up the difference with social security. Seems reasonable. Now to watch the video and see how you plan it. 😎
You are one of the few financial advisors that I enjoy listening to. Great delivery, excellent content.
I appreciate that!
Retirement planning means preparing today for your future life so that you continue to meet all your goals and dreams independently
Very timely as I am 60 and starting to think about things like retiring from my job. I do know I need to sit down with a financial advisor at some point to plan out a strategy, but like many I am a procrastinator (the first rule about overcoming a challenge is recognizing you have it ;) ).
One step at a time - thanks for watching!
Excellent video - great coverage of the main issues and the example of Jane was nice a refreshing (usually it’s a married couple!). I retired early 18 months ago and have studied this topic quite deeply. Only 53 so I had to figure out if I could retire and be financially set. After researching I feel quite comfortable now.
Thanks for the great video 👍
I recently turned 60 and my net worth will pass one million shortly. If there was national health care and elder care I'd retire now and free up a job for a younger worker. But as the US has such a Darwinian view of both I plan to hold on to my job (and employer health care and life insurance) a very long time.
You can get free or low cost heath care through the ACA (a/k/a Obamacare). I just did that and it's better than the healthcare I had at work.
@@stemikger It definitely would not be better than what I get at work (and does ACA have dental and vision)? A year has passed and I'm 61 and worth $1.2 million. But I am not retiring anytime soon. The system gives me no incentive to make room for a younger worker. It's dog eat dog Darwinism in this country.
Interesting. I will turn 62 this summer, single, no kids, ZERO debt, with $970,000 in retirement savings. I project my monthly expenses in retirement to be just under $4000.
Can I retire at the end of the year and not run out of money? I recently moved to a conservative allocation of 45% equities, 55% fixed. The savings is a mix of my 403B and my Roth IRA.
Many variables such as inflation and dropping equity values, but 4-5% pull on your investments is a reasonable starting point. Good luck
This is close enough to my situation. I find this content very helpful. Thank you Justin.
I'm glad to hear the assumptions were pretty close for at least one or two viewers. Thank you!
Yes 24hr in-home care is very expensive, I was writing almost 10K check every three weeks as her PoA.. Luckily my Moms assets outlived her and was never in danger having to sell her condo.
Thanks for chiming in and sharing that experience. Those costs can be shocking.
Wish social security was that high in Canada I have made more than her and I would make 690 a 60 years old
Yes. I was surprised that the benefits in Canada for CPP and OAS were so much less than SS.
Thank you for creating such a detailed video..
Your visual tools to follow your talking points are superb.
Thank you!
I read this and gave away 2 millions, I can retire on just one.. Brilliant idea/....
there's no utility in comparing what you saved versus median or average on the survey, since it has zero impact on your situation. So saying that having a million dollars saved puts you in a relatively good position is absolutely meaningless, since it is just comparing yourself against someone else. Yes, you are in a better situation than other people, but there's like no utility in that comparison. i enjoyed the rest of the video though.
I think you need at least $15 million to retire comfortably!
Lol
That puts you in the top 1%
According to the investors busines daily the average is $500,000 in 2021
Really? How much do you plan on spending? Will you have your house paid off? You will likely have less taxes. No SSA payroll deductions.
@@toantruong4370no you need that much to retire not we😂 you work all your life and speak for yourself
good stuff my good man! Keep it going
Thanks for the info. With family, the San Juans and SE UT to continue exploring, and too many other hobbies, retirement should be plenty busy for us. When to switch from accumulate to distribution is our question.
Sounds like you are not too far away from here. And yes, when to flip that switch is one of the biggest questions pre-retirees face. It can certainly be a scary one, as there's no way to predict the future. You can do all of the right things before you quit working, but we can't eliminate the unknowns. And on the flip side, it's important to enjoy life while we can.
Our offices are about two blocks apart. 🙂 I moved here for similar reasons as you. Been learning about retirement planning, watching videos, and the YT algorithm included yours. I kept thinking gosh those look like San Juan and Electric Hills background pictures. Hah.
Well, that explains it! Yes, I had to use some of the nearby scenery to make things pretty. Great to hear that the videos are getting into the mix, and please say hi if we ever cross paths out in the real world.
2 years ago I was planning on a 5 year time horizon, now i have to add 5 more years. This free crap feels expensive when you are one of the few paying.
I plan on working till im 70yrs old as long as health permits I love my job.
You are lucky!!
How did Jane at age 59 (0:27) file income tax the previous year and have a social security distribution of $44k (3:44)?
I know it's supposed to be a fictional example, but there seems to be a clear problem, unless I'm not understanding something of which is the reason I'm interested in researching with this video as a reference help.
Good question, and that tax return is for tax year 2033 (obviously just a projection/estimate). By that point, she's old enough for benefits. You might be able to see a little drop-down menu at the top of the screen where we can change the year.
Thank you, Justin. Your videos are always informative, practical, and cover so many considerations.
It's great to hear this, thank you so much!
Where do I find your simulator?
Great video . Thank you
It IS relative - 1 million saved. I have a pension & no debt - so my costs are low, which maximizes the amount I have to pull out each year.
Love your videos.
Thank you, I truly appreciate it
What if you have a mortgage and have to also pay for health insurance?
Wow! Thank you for the video-
I’ve got a lot 0f work to do I guess!
😆
61 and retired. Have about 900000 in deferred accounts. When i run online roth conversion programs (many of them) they tell me its not worth doing a roth conversion while staying in 12 % bracket. WHat am i doing wrong?
That's tough to say without knowing all of the details and doing the calculations myself. Those calculators could be assuming that future tax rates are low for some reason, but I can only guess. The more advanced the calculator, the more moving parts. For example, Right Capital or New Retirement should be able to provide some helpful guidance once you get the numbers/assumptions in the way you want.
I assume your using right capital for the planning aspect of this demo? It would be good to know what assumptions are made based on that platform
You are correct, it is Right Capital. Thanks for that feedback, and I can work on getting more assumptions visible in future videos.
Get real ,really a million?
Informative! Thx for sharing.
Thanks for watching!
Dividend stocks account for about 20% of my retirement portfolio. I started moving part of my retirement savings into dividends about 5 years ago. They are currently paying about 3.5%, based on today's prices, or closer to 5% when looking at purchase price of the stock. Along with the dividend, these stocks, all being very strong, long term dividend payers, have increased in price also, and there is no reson to expect them not to grow in the future. Dividends are a great PART of any retirement plan.
Dividends are just part of total return. No magic in dividends
Truth is Jane is cutting it too close. She should work longer. ..As far as LTC she would probably become a ward of the state...
LTC is certainly one of the biggest challenges in retirement. She has her home equity, but we don't really dive into those details, and there are a lot of unknowns. How much is the property worth, and how would she access that money? Will she just need help around the house for a few hours, or will she need round-the-clock supervision and care in a facility? Does anybody else need to live in the home, etc.? That would all be worth examining.
She isn't cutting anything close. She's in her early 60s with $1 million, social security at full retirement age for people able accumulate that type of nest egg will be in the $2000 to $3000 range. Assuming she will get $2500 a month and her expenses are $3800 per month plus $500 for medical coverage on the ACA so $4300/month is what she needs from savings until she reaches age 65 and goes on Medicare. That drops her monthly expenses to about $4000/month. Age 67 she gets $2500/month from social security leaving only $1500/month she needs to pull from her savings. She can solidly retire.
I totally disagree. She could probably retire a year earlier if she wanted to. Also, LTC is not always needed. If you maintain a healthy lifestyle and don't let yourself fall apart, most people can maintain a high level of vitality until the very end. We are so use to seeing people spend their last several years in a terrible state that we've forgotten that it doesn't need to be that way. That kind of deterioration is often self-inflicted by poor lifestyle choices. In any case, all the different variables that can be tweaked, as illustrated in this video, pretty much prove that you can retire with confidence with even less than a million, as long as you are flexible, willing to make changes in real time, based on current market conditions, etc.
@@dlg5485Yea. The best “medication” is exercise.
And I will never do LTC. I’m a nurse by profession so I know what that entails. I’ll go until I can’t go and the hospice comfortably into “heaven.”