The key is expenses. Low expenses, low amount needed for retirement. I have only averaged $50,000 a year over the last three years. Home paid off and no debts.This is less than 1% of my portfolio. Did all major work to my home back in 2020, new roof, siding, paint, along with renovating the bathrooms. Can get a fully subsidized ACA plan, keep my AGI in the 12% bracket and still live the life I currently do as a successful business owner. Just gotta keep that "Just one more year" voice out of my head. Retirement date, May 30th 2024.
Wow nicely done! Great timing on the home repairs also. Sounds like you did your due diligence and retirement date will be here before you know it! Congrats on the success!
Once you turn 65, you become eligible for Medicare, That "just one more year" feeling is common, especially for business owners like you. But it's important to strike a balance between work and enjoying retirement. Have you thought about talking to a trusted financial advisor about your retirement plans? They can give personalized advice to help you transition smoothly into retirement while making the most of your finances. Best wishes!
Sure thing! A great advisor makes a big difference. They helped me grow my savings from $200k to $5m by trading stocks. This was super important for me as I'm new to investing and getting ready to retire. Having someone experienced to guide you really helps!
I am nearing retirement with $250K to plan for, I'm feeling the pressure to secure my financial future. i would like to know who your advisor is, Can you share his/her name ?
I am on the look out for experts and after doing my research online will say she meets my requirements, Thank you for sharing with us. I already sent her a mail hoping she can make out time in her busy schedule to assist me.
Thank you Eric for touching on the 457 Plan. Most channels never address it. Retired 4 years ago at 55, and letting the 457 ride for now. Part time job in retirement has help cover monthly expenses. Thanks for sharing............
Thank you! Finally someone acknowledges 457’s as the bridge they were meant to be (or their very existence)! Retiring in 8 years at 51 and we can do so successfully because we will have a decent state pension by then (30 yrs) AND the 457 that will hv been brewing that long too. No reason it should work any less than brokerage accts and the rest.
3:33 To stay under at least the 400% FPL 'credit' level of ACA, we did a combination of 72(t)/SEPP and pulling from our ROTH contributions. Health insurance is still expensive but much more do-able. Will stop pulling from the ROTH contributions at 59.5 when our 72(t) will stop (since we started it before 54.5).
I retired last September at 57 yrs. old, so we took our first withdrawal from my 401K earlier this year. We chose to take one withdrawal early, then will take another later in the summer. Fidelity held taxes out, BUT withdrew evenly from ALL pre-tax funds, as I couldn't selectively choose just one account (Bonds, T-bills, Stable Value, etc.). So, be mindful with your rebalancing after any withdrawal.
On my 401k if I request a withdraw online it’s split between all accounts but if I call in I can specify where to pull from. No idea of yours could be the same.
Oh interesting that you couldnt specify which fund in 401k to withdraw from…. I have a 457 with Nationwide and I had to fill out a form which was a bit confusing. LOL. So i made a phone call and asks very specifically how i could withdraw from a specific fund only. A section on form tells them which account. I would never have figured that without a phone call. So Who knows, Maybe its different across brokerage firms.
Erroric you have come so far in your videos, the quality is so much better. especially compared to the new old guy. OK I got one for you Roth taking money out of it to keep you in a lower tax bracket and savings on ACA health care cost. Run the numbers. I expect a video by Tuesday afternoon.
Initially, I was concerned that you had been hacked! A compliment and perfect spelling across multiple sentences had me concerned! That being said, thanks for that and I'll get get some stuff put together for this video!
Such a great video. I talk to co workers. And so surprising how most close to retirement don't even know how much they will get in retirement. Just because you hit the retirement age doesn't mean you can afford it.
What about SEPP from IRA, don’t think that was discussed or suggested. Rule of 55 can backfire. Many employers require you to fully withdraw from the plan. Don’t think many want to pay all that tax in one year. Withdraw one or two years worth then roll rest into your ira. Then do SEPP from ira until you hit 59.5.
Good video. I just retired at 53. Paid off my house 6 years ago. All major items done: new HVAC , new roof, paid off car. Biggest expenses are insurance (cars, home, health) and property taxes. Years of preparation made the move seamless. 15 streams of passive and semi passive income that exceed my expenses by 50% help until I reach 59 1/2
how much do you have saved since being you retired pretty early? I'm looking to retire at 55 as well(currently 52) I have 2m between IRA and brokerage account. Can I do it?
Just one clarification, 72t could be taken out earlier than 55 and the rule is 5 years or 59 1/2 whichever is longer. So if you start one at 52, it doesn't end at 57, it goes till 59 1/2. Am I understanding that correct?
I retired prior to 55 and recently started a 72t distribution. My only advice is to make sure u time the start of the 5 yr fixed distribution period so that it ends very close to when u actually turn 59-1/2. That way, u have complete flexibility re: your distributions at the earliest age possible. Thanks for all the great content.
A 55 year old man lives to 90 yo? No accounting for social security kicking in at62,67 or 70. 80% chance with 1.9M retiring at 55. Wow! Sucks to be this guy. My parents retired at 65 with Two Social security incomes and a 48k annual annuity. Nowhere close to 1.9m.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Most people always work doing something. Who wants to just sit doing nothing? So this entire aspect of ‘retirement’ is bogus. You are simply leaving one, most likely ‘paid better’ job for a lesser paid but more interesting job. Not retirement in traditional sense, just job transfer. People on Utube always get it wrong.
For some but not me. I retired from the Air Force after 21 years then worked in corporate America for another 17 years. I'm in my 50's and I am NOT transferring to another job as you say. I will do whatever the hell I please, I earned it.
@@TM_Stone you are lucky as you hv retirement earned ( thanks for serving)…but for those that don’t, they cant retire and do nothing. They just quit a higher paid job for a lower paid job.
Thanks for watching! Your input is always appreciated or if you have something you want to share to help some people out, drop your thoughts below! 👍
The key is expenses. Low expenses, low amount needed for retirement. I have only averaged $50,000 a year over the last three years. Home paid off and no debts.This is less than 1% of my portfolio. Did all major work to my home back in 2020, new roof, siding, paint, along with renovating the bathrooms. Can get a fully subsidized ACA plan, keep my AGI in the 12% bracket and still live the life I currently do as a successful business owner. Just gotta keep that "Just one more year" voice out of my head. Retirement date, May 30th 2024.
Wow nicely done! Great timing on the home repairs also. Sounds like you did your due diligence and retirement date will be here before you know it! Congrats on the success!
Once you turn 65, you become eligible for Medicare, That "just one more year" feeling is common, especially for business owners like you. But it's important to strike a balance between work and enjoying retirement. Have you thought about talking to a trusted financial advisor about your retirement plans? They can give personalized advice to help you transition smoothly into retirement while making the most of your finances. Best wishes!
Sure thing! A great advisor makes a big difference. They helped me grow my savings from $200k to $5m by trading stocks. This was super important for me as I'm new to investing and getting ready to retire. Having someone experienced to guide you really helps!
I am nearing retirement with $250K to plan for, I'm feeling the pressure to secure my financial future. i would like to know who your advisor is, Can you share his/her name ?
I am on the look out for experts and after doing my research online will say she meets my requirements, Thank you for sharing with us. I already sent her a mail hoping she can make out time in her busy schedule to assist me.
Thank you Eric for touching on the 457 Plan. Most channels never address it. Retired 4 years ago at 55, and letting the 457 ride for now. Part time job in retirement has help cover monthly expenses. Thanks for sharing............
Thank you! Finally someone acknowledges 457’s as the bridge they were meant to be (or their very existence)! Retiring in 8 years at 51 and we can do so successfully because we will have a decent state pension by then (30 yrs) AND the 457 that will hv been brewing that long too. No reason it should work any less than brokerage accts and the rest.
72T is 5 years or 59 1/2 years old, which every one is longer, that is the one you must use.
3:33 To stay under at least the 400% FPL 'credit' level of ACA, we did a combination of 72(t)/SEPP and pulling from our ROTH contributions. Health insurance is still expensive but much more do-able. Will stop pulling from the ROTH contributions at 59.5 when our 72(t) will stop (since we started it before 54.5).
I'm retiring at 57. 4 yrs to go. Just need to learn to live on a budget with reduced annual income.
Thank you Eric good info
Thanks Bruce!
I retired last September at 57 yrs. old, so we took our first withdrawal from my 401K earlier this year. We chose to take one withdrawal early, then will take another later in the summer. Fidelity held taxes out, BUT withdrew evenly from ALL pre-tax funds, as I couldn't selectively choose just one account (Bonds, T-bills, Stable Value, etc.). So, be mindful with your rebalancing after any withdrawal.
On my 401k if I request a withdraw online it’s split between all accounts but if I call in I can specify where to pull from. No idea of yours could be the same.
thanks for your input & great point! We've seen that a lot with clients and it seems to depend on the employer plan.
Oh interesting that you couldnt specify which fund in 401k to withdraw from…. I have a 457 with Nationwide and I had to fill out a form which was a bit confusing. LOL. So i made a phone call and asks very specifically how i could withdraw from a specific fund only. A section on form tells them which account. I would never have figured that without a phone call. So Who knows, Maybe its different across brokerage firms.
Someone else has mentioned that a phone cal will let you withdraw from only a specific account, so I will definitely look into this. Thanks!!
It should be illegal for 401 managers to not allow rule of 55 or Roth contributions. How is this not major conflict as fiduciary?
Erroric you have come so far in your videos, the quality is so much better. especially compared to the new old guy. OK I got one for you Roth taking money out of it to keep you in a lower tax bracket and savings on ACA health care cost. Run the numbers. I expect a video by Tuesday afternoon.
Initially, I was concerned that you had been hacked! A compliment and perfect spelling across multiple sentences had me concerned! That being said, thanks for that and I'll get get some stuff put together for this video!
Great info
Such a great video. I talk to co workers. And so surprising how most close to retirement don't even know how much they will get in retirement. Just because you hit the retirement age doesn't mean you can afford it.
Great point and thanks for you input! That's way more common than you think
What about SEPP from IRA, don’t think that was discussed or suggested.
Rule of 55 can backfire. Many employers require you to fully withdraw from the plan. Don’t think many want to pay all that tax in one year. Withdraw one or two years worth then roll rest into your ira. Then do SEPP from ira until you hit 59.5.
Good video. I just retired at 53. Paid off my house 6 years ago. All major items done: new HVAC , new roof, paid off car.
Biggest expenses are insurance (cars, home, health) and property taxes.
Years of preparation made the move seamless. 15 streams of passive and semi passive income that exceed my expenses by 50% help until I reach 59 1/2
how much do you have saved since being you retired pretty early? I'm looking to retire at 55 as well(currently 52) I have 2m between IRA and brokerage account. Can I do it?
forgot to mention house paid and NO debt
the federal tax credit for solar hot water panels and solr electric panels is 30%
Oh and NEVER count on inheritance as a retirement plan. if you get it great if not whatever.
Unless you already got it :)
Just one clarification, 72t could be taken out earlier than 55 and the rule is 5 years or 59 1/2 whichever is longer. So if you start one at 52, it doesn't end at 57, it goes till 59 1/2. Am I understanding that correct?
Yes, you have that correct!
I retired prior to 55 and recently started a 72t distribution. My only advice is to make sure u time the start of the 5 yr fixed distribution period so that it ends very close to when u actually turn 59-1/2. That way, u have complete flexibility re: your distributions at the earliest age possible. Thanks for all the great content.
Was aiming for 43 to retire, but with inflation out of control it's most likely 45 it after now 😢
That's still an incredible achievement. Despite the delay, congrats on the success!
Retired or scamming a disability?
A 55 year old man lives to 90 yo? No accounting for social security kicking in at62,67 or 70. 80% chance with 1.9M retiring at 55. Wow! Sucks to be this guy. My parents retired at 65 with Two Social security incomes and a 48k annual annuity. Nowhere close to 1.9m.
sure wish golman sachs had auto log out on thier program, congrats on 66.!!
Health care! Otherwise easy decision to retire early
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
I don’t feel confident retiring with 70 million dollar wealth at age 55
Why? 😂
I came to USA in October 1995 with $32…. DONT want to be poor like my initial years
Most people always work doing something. Who wants to just sit doing nothing? So this entire aspect of ‘retirement’ is bogus. You are simply leaving one, most likely ‘paid better’ job for a lesser paid but more interesting job. Not retirement in traditional sense, just job transfer. People on Utube always get it wrong.
For some but not me. I retired from the Air Force after 21 years then worked in corporate America for another 17 years. I'm in my 50's and I am NOT transferring to another job as you say. I will do whatever the hell I please, I earned it.
@@TM_Stone you are lucky as you hv retirement earned ( thanks for serving)…but for those that don’t, they cant retire and do nothing. They just quit a higher paid job for a lower paid job.