For boomers and senior citizens, the current market and economy are unnecessarily harder. I'm used to simply purchasing and holding assets, which doesn't seem applicable to the current volatile market, and inflation is catching up with my portfolio. My biggest concern is whether I'll survive after retirement.
Yes, gold is a great investment and a good bet against the devaluating dollar, been holding some for awhile now, I’m grateful my adviser’s moment by moment changes in the market are lightening quick, cos who know how much losses I would’ve had by now.
I've stuck with SOPHIE LYNN CARRABUS since the pandemic, and her performance has been consistently impressive. She’s quite known in her field with over two decades of experience, simply look her up.
67 Y/O baby boomer here. Out of my circle of 8 close friends, 6 carry crazy debt levels and are into "Oh look at my new car and sneakers.". The remaning 2 are well into 7 figures net; self employeed, and quickly avoid loan requests. This entertainment keeps me cranked up! Thx for this video! All good!
@@christschool you use the term “without being caught by the IRS” like you are getting away with something. Please be aware as a retired CPA that if you are fraudulently filing income tax returns that there is no statute of limitations on your income tax return filings. Still comfortable?
Its not luck. No one forced them to work for a company without a plan. I have two retirements plus social security and own two homes. I have zero debt and don't even own a credit card. If everone seeking employment only took jobs with a plan companies that don't won't have any employees..@@edennis8578
Actually your pension like so many others are tied directly to the Stockmarket. If you haven’t been investing in Gold/Silver you are simply going to be Screwed blued & Virtually Tattooed
As we witness the current economic landscape, it's becoming increasingly clear that we're entering a recession. Diversification can mitigate risk and increase the chance of success
Don't put all your eggs in one basket. Diversification means spreading your investments across different asset classes (stocks, bonds, real estate) and within those classes (different companies or industries). This helps reduce risk.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...
When it comes to investment, diversification is key. That is why I have my interests set on key sectors based on performance and projected growth. They range from the EV sector, renewable energy, Tech and Health (AMD) alongside coins, and gold. I'm also working on an investment plan with my CFA that includes AI looking into Nvidia, MSFT, Alphabet stocks among others. I've been utilizing a CFA for more than 4 years and I've made over $000,000.
@@SamsonsRhodesas That's quite remarkable! I'm genuinely interested in benefiting from the guidance of such experienced advisors, especially considering the current state of my struggling portfolio. May I know the names of the advisors who has been assisting you in navigating these financial challenges?
My wife and I always spent less than we earned. We have been debt free for decades. After the housing bubble burst we bought each of our three children a modest 3 bedroom home. They could not afford them on their income. These have more than doubled in value over a very short period of time. So far we are comfortable in retirement. I know that we are unusual but it was not luck or prescience. We worked more and harder than most of our peers and always lived well within our means.
A huge problem is so many people don’t take care of themselves and have to retire early on medical or are in bad shape just coast into retirement with bad health. People should be healthy at 65 years old but so many people eat garbage that they’d never feed their dogs.
Eating “right” does not guarantee good health. You see people leading healthy lives by your definition that are not healthy. What a despicable thing you are saying…use your brain, not everything fits into your narrow thoughts.
I started having back problems at age 17. I could do nothing about my deteriating back. It is genetic. Although I am on disability at 60, I still do everything within my power to stay healthy. I was fortunate to never get into debt. I was taught at age 14 the value of money and was always told to avoid debt at all costs. It wasn't easy as I had to work up to 3 jobs while I could. Even though I managed, not everyone is as fortunate as I was. Things happen out of your control.
I just love it when people come on a video like this and brag about how they avoided all the problems that are going on now because they were just so smart! You don't realize that some people's lives weren't as tidy or as easy as yours.
Boy, is that true .I'm 74 and very thankful for what I have.but life is not a calculus formula.its so easy to say save and don't accumulate debt. If it was only that easy!
Exactly! And they never admit that pure luck, or a healthy inheritance, or rich parents that bought them a house or paid for college or something else is the real reason for their success.
@@chiplangowski3298 what about the guy that put himself through college, got a good job and worked hard, and made good financial decisions? They don’t exist? Geez… not everyone that has money got it from an inheritance. What a way to see the world smh.
It comes down to one key component. Live within or below your means from the day you are employed. Minimize debt in your 20s and 30s and eliminate in your 50s
At 60 planning on a more disabled future is a core focus here. No kids, parents, currently no dept., but will review your other points. Thank you for what you do!
I really agree with the thought that young people don't realize they won't be willing and able to keep working when old. I always figured I'd just have to keep working and was fine with the idea...until I was in my 60s and discovered what old was.
@@suen5006 That's true. However, young people rather commonly waste their 20s, and even 30s, spending huge sums of money and TIME on colleges, expensive places to live, cars, cell phones, clothes and other JUNK. These years, which could be the basis of savings and investments, are often wasted and even worse, the sources of heavy debt loads. College educations CAN pay off, if you choose your course of studies WISELY. But too often it is a net loss for young people as colleges FLOOD the labor market withy people whose actual education may be marginal and whose economic prospects with a degree may be poor.
@@SeattlePioneer I think that they do understand, I mean there are many that don't want to work, and they don't right now. BUt my daughter is a GenZer and out on her own, going to school (college) with her own high end apartment. I said Many don't want to work but I don't know the percentage.
A recent bill in Congress proposed the elimination of taxes on social security benefits. Of course, it went nowhere. The double taxation remains in place.
It’s not really double taxation though it might feel like it. The tax dollars you paid on your wages supported prior retirees benefits. They didn’t do to an account with your name on it. The benefit you get is largely paid for from a current workers taxes. So the taxes you pay on that weren’t your dollars.
'63 boomer here. I was never taught finances. I spent my 20's and 30's working low level jobs just to get by and take care of myself and my son. 40's and 50's working a skilled healthcare job after getting a trade degree. I thought it was good until 2008/2009 when the housing thing happened and I lost all faith in the 'retirement planning' of the American Dream.... I am going to live on SS alone with a paid off home and what cash I can save between now and full retirement.. Being solo it's not as easy as couples have it. But I won't have to suddenly cut my expenses in half like the one person left when the other one passes. Currently working 6 days a week to save the cash and pay for anything I need in CASH.
The change in family structure...... rise and single households and the rise of divorce.....is one thing that has had huge negative impacts on people's finances. Dual income from 2 financially responsible people, splitting the expenses and childcare, is how you save/invest/flourish. If one of us passes we can still afford retirement because we were able to save/invest/flourish due to dual income and shared expenses. I sometimes wonder if the housing shortage is also due to so many people living without partners....hence where a couple needs one house, the single need a house for each person.
The wild card is your spouse & how much money they will spend in retirement. I do all our finances & retirement planning & we both plan to retire in 1 year. However, last week my wife made the following statement "We are going to retire & if we run out of money, we run out of money". I informed her that running out of money in retirement is NOT an option.
I agree. The wife and I have both planned as if social security and Medicare won’t be there when it’s time to retire. If it is then it’s just a bonus I guess. Having acquired enough liquidable assets all these years has not been easy. Took my first vacation at age 30, that was 25 years ago
If you aren’t on the same page financially as your spouse by the time you retire, the problem isn’t the spouse, it’s your communication skills and relationship.
@@hrw3mom103 also problem is that one does all the finances and planning. One will always end up doing most of the admin of finances, but both should be aware and know whats going on because what if something happened to that person, the other would not have a clue as to what to do. No one should be learning about their finances during a time of loss.
We are paying 120K a year for my mother who is completely disabled and needs 24 hr/day care. That's the going rate around here. She actually can afford it, but she's very upset to be paying to much of her hard earned money. I physically can't give her the kind of care she needs. My husband and I decided if one of us is that severely disabled, we will try to go to a low cost country to get that kind of care in order not to leave the other spouse impoverished.
@@SeattlePioneer My parents each had to pay a lot for care due to my father's poor mobility and my mother's dementia. My 90-year-old aunt is still living independently in her home that she and her late husband built in the 1960s.
I began work in the 70's when you applied to the "Personnel Department". That was a time when we were understood to be persons. Later it became the" Human Resources "Department. Now we are understood to be Resources: of the human sort, rather like a cow of the bovine or the bean as the vegetable sort or the tree as the timber sort of "resource ". Prayers needed for the younger generations.
I put in my requirements for staying with a company l had been with for 22 years. They let me know that they didn’t really care and called my bluff. A week later I told them to come get my company truck because I wasn’t wasting my time bringing it to them 😝 Best decision I’ve ever made!
Early Gen X’er and raised by The Silent Generation. My parents were super scared of being poor after growing up during the depression and ended up spending almost nothing(my 89 yo father still owns his business, is worth 14 million and banks part of his SS). He encouraged me to work hard, save, live within my means, be self reliant and wanted me to get a “government job” with a “good pension”. He would be considered a “cheapskate” today. Anyway, I’m retiring in 8 months (before he is) and am in great shape financially…
Seniors are judgement proof so if they got into debt there SS benefits are protected along with civil service pensions, military pension, declarations of homestead exemption are all protected from judgement if they get into financial troubles. They shouldn’t have to worry about non secure debt or losing their home all this information is available for seniors.
Only have debt for a modest home as short a span as possible. Certainly not for a car or consumer stuff. It can be done, but probably on two incomes now. I have had our children in 401k’s since they were first employed. It’s Time IN, not timing!
@@res00xua Well, we bought these digs in 2015 and it is much bigger than before. Why? We liked it and it suits our life style better. The mortgage was a financial decision. Interest rates were 2.5% whereas my investment returns were 7.5%. Should this change significantly we will change this arrangement. However, during these unsettled times cash in the bank or liquid investments are probably better than bricks & mortar investments. Just my opinion.
@@res00xuaI did a modest home & cars for cash on just my income. The difference is I don't think I need a $1000+ new phone every year or so, I don't need to impress my neighbors or coworkers with all the stuff I have & I understand the difference between a want & a need.
Geoff, always great information that you share with your audience. Big problem I see with boomers (I am one), is that they didn't save and invest, rather they lived for the moment. Unfortunately, that moment is now and they are reaping what they have sown. With all due respect, other than relying on the government or immediate family, their outcome is going to not very desirable. Keep telling your audience they need to invest for their future.
I'm a boomer and have many boomer friends. We worked hard, lived frugally, saved and invested aggressively and consistently, and lived within our means. Most of us are retired now and living the good life. Our sacrifices were worth it. I am retired, have zero debt, and have a net worth of nearly $14 million.
@@KathleenMcNe Well done Kathleen. I retired at 57, 7 years ago. Best move I have made in years. My wife and I did the same and are now sitting on a pile of assets and have no concerns about money at all. It certainly has made life easier to live. Best wishes to you and your family.
TBH, that could have been me. Fortunately, around 40 I started investing in a 401k and company savings plans, and I started making some career choices that worked out for the best now that I am finally taking Social Security and other sources of retirement income. I am not so rich that I can have a second home in Florida or take an around-the-world cruise annually, but nobody will have to set up a GoFundMe campaign on my behalf, either. Life is good.
@@JBM425 Glad to hear things have worked out for you. I retired at 57, 7 years ago and couldnt be happier. This was accomplished as a function of saving and planning, much like you. I wish you the very best in your retirement.
Boomers really got the short end of the stick. During their working years they were lied to being told that their company pensions would always be there for them. Then in the 1980's companies found ways to liquidate and raid the employee pensions. Nowadays, very few companies offer a pension plan and employees are expected to fund their own retirement. Boomers also were lied to when new social security rules came into place in 1983. I'm Gen X and was very blessed to be able to retire at 47. I'm now 55 and I feel real bad as I see many elderly people working crap jobs at Wal-Mart and McDonald's.
Not only are younger generations suffering financially (housing, jobs, minimum wage, health insurance), BUT we keep adding to the national debt! All of this debt is being pushed down the road onto generations that can't even afford to buy a house for their family.
National debt is a serious issue - and yes, further generations will have to back it back with interest =higher taxes for many years. Still voters are happy to vote on anyone promising lower taxes today regardless of the fact that this will bring higher taxes tomorrow.
I am 74 and retired at 57. Very active and spend quite a bit of time traveling the world. Doing very well financially. Came from nothing and was never a big earner. But we planned and executed very well.
well, he lucked out when he was born. the stock market had never done better for small times investors like they did for boomers. Like when IBM, MIcrosoft and Apple were bought at $10 a share. Houses even in California were 40-60k in great safe neighborhoods in the 70's and 80's. .... and now worth in the millions. Boomers act like they are super smart, but a lot of it,... is luck of time frame. Boomers also lived in the great business expansion of defining leaderships and titles, were it used to be exclusive in the '20's-'50's, ....and now the generations are hyper competitive of kids and adults and everyone ,has access to "exclusive" knowledge. therefore; saturation. You could up until the late 90's still go to the doctor w/o insurance for about $60 a visit. Thats changed. Boomers saw the great expansion of small towns and cities to big metropolis expansion, and with that many chances to invest and expand construction and small businesses. Most boomers who were college educated did not pay 10-60k a year to get their degree. Boomers don't like to admit that fact.
in one day there are 550 comments and 116, 000 views. Just shows how great Mr. Schmidt's videos are; easy to understand and very relative to almost everyone.
Part of the problem with Social Security is like in my small town. The social security office here has two parking lots. One for workers and one for the public. The problem is the worker parking lot has at least 10 cars to one or none in the other lot most of the day.
@@prairiemark4084 You know, most cases are handled online, by mail, or on the phone. For instance, my wife's retirement application three years ago was handled by the Boston office. We live in Virginia. The only reason we know it was Boston was the phone call from the worker suggesting she delay her retirement until age 70 and take retirement until then based on her late husband's earnings record. He died in 2008 and it costs her about $300 a month, but her check at 70 will be a great deal more. When I applied online twelve years ago the application was processed without anyone contacting me, so I don't know who processed it or where.
Didn't hear much about government at all levels means testing me in my retirement. The better I take care of my resources, the greater they are, the more likely I will be viewed as a revenue source. So I fully expect Government will let greed eat away at any earnings and soon start chomping down my diligently saved seed corn.
retired now 19 yrs. 15 yr ago a very wise financial friend told me, "Every 15 yr you'll need double". People might think the most important word in that statement is "double"; or "15 yr". The most important is need.
Rule of 72. If inflation is 6%, cost of living is double in 12 years. In banking, you earn 6%, your money doubles in 12 years. Right now in the US, if inflation is 12%, cost of living will double in 6 years. It’s that simple.
I’m a boomer. Divorced twenty years ago lost everything and was deep in debt. As a modest earner I saved like mad for the last twenty years and will retire in six months with adequate retirement funds. Does this make me a Gen Xer that only has twenty years to save? Just saying it can be done but it is a choice!
I’m also a boomer, grew up in a blue collar family that never discussed money, other than to say that you needed to work hard to earn it. They knew nothing about investing, subsequently neither did I. Then married my husband who grew up in similar circumstances. We made enough to pay the bills but never enough to save or get ahead. Didn’t help that he never met a nickel that he couldn’t spend on something foolish. My choice to stay with him though. He has since passed and I am finally able to save. Bought an IRA, now have a job that actually offers a pension. And put as much money as I can monthly into precious metals. Since he passed I have been able to buy and sell a couple of homes, pay off an investment property which I will be leasing out hopefully for the rest of my life. Will be retiring before the end of the year. I’ll never have enough money to be completely worry free, but I should be able to keep a roof over my head and food in the fridge. Life is good.
Yes, it is a choice. I managed to go to a great college as a broke "financially independent" and survived on scholarships, student loans and work study programs. Every day I ate peanut butter sandwiches for lunch. It got to the point I thought I would DIE if I saw another peanut butter sandwich, but had no money to buy lunch at school like my peers. .................... Moved lunch back a couple of hours and suddenly those sandwiches TASTED GREAT!
@@juliebecker5238 Yeah women are the ones with money now, I mean like in her scenario, she has a lot more than her ex-husband, and well he's deceased, sorry for your loss.
Last of the boomers here. I divorced after 24 yr marriage, everything split evenly and for 12 yrs half my earnings to spousal. I negotiated to take the retirement funds, she wanted the cash. I lived (necessarily) frugally, worked hard and saved. It was rocky at times but has all worked out and I’ll still retire at 63, debt free. I am convinced divorce did not hurt me financially overall, it liberated me to be disciplined and careful, much more than was possible during the marriage. My current wife is of the same mind, and that’s an amazing thing.
I put in my requirements for staying with a company l had been with for 22 years. They let me know that they didn’t really care and called my bluff. A week later I told them to come get my company truck because I wasn’t wasting my time bringing it to them 😝 Best decision I’ve ever made!
Way to go. When I decided to quit my job, I cleared out my cubicle and put things into my car. Then I went to HR and told her I quit. She did talk me into notifying my boss, which I begrudgingly did - told him I'm done. Goodbye.
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
More reason I enjoy my day to day market decisions is that i'm being guided by a portfolio-coach, seeing that their entire skillset is built around going long and short at the same time, both employing profit-oriented strategy and laying off risk as a hedge against the inevitable downtrends, coupled with the exclusive information/analysis, it's quite impossible not to
@@Tonyrobs2 talking about coaching, do u consider anyone worthy for recommendations? I have about 80k to taste the waters now that large cap stocks are at a discount... thanks
My CFA ’’ Sharon Ann Meny, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
My husband passed away when I was 36 with an 11 year old and a 16 year old. I watched the financial person, Suzie Orman, on TV and she said save money, put money into 401's and IRA's. I did as she said, lived frugally, retired at 60 and live comfortably. You have to save when you are young so the money has time to grow. I am going on a 2 week trip to England, France, Switzerland and Italy. I never thought I would be able to do that in my life.
Kudos to you. I also follow Suzy orman’s advice. I am 66, but still work part time in a job I simply enjoy. I am healthy, workout in the gym 4 times a week. Health is wealth.
I went to Switzerland. It was awesome! Also England as a stopover, but enjoyed a day or two there. And a "flea market" in France. Oh my! I am more traveled than I realized! Please soak up the experience! I do know the single parent life and Suzie Orman. Enjoy your trip!
Well done. I just got back from an almost three week European trip with my wife and siblings and a niece and nephew and their kids. You'll LOVE it, ESPECIALLY Italy. Enjoy it; you've earned it.
Same here. I listen to the Great and Silent Generation. They sure made a huge amount of mistakes. Its weird to listen to people from Boomers to Generation Z talk about enjoying and not regretting financial mistakes. I remain quiet when they claim to never regret spending 20-100k on a luxury.
Interesting take. I'm a last gasp Boomer '62. My entire universe was impacted by the Greatest and Silent Generations. Austerity, self-reliance, work ethic, and many not sure that this new fangled SSA was really going to work! I personally have never spent 20k on a luxury item and know of only a few Boomers that have because they are wildly successful. With that exception, I feel like everyone from about '67 and earlier feels like financial regret is systemic in our economy. The younger generations are seeing a crazy steep financial hill they have to climb, the retiring-class is looking a huge financial cliff we're falling off. If you were a Boomer in a middle/lower class, I think you were told that if you kept your nose to the grindstone, it would all work out. Clearly the sheer number of changes in tech, manufacturing and culture have mostly made that a near fatal plan.
@@Viconius Lol, I was never one that blindly listened to what I was told, only to what I chose to. I was lucky in that I had several people from "The Greatest Generation" give me good advice and the drive to go even further. In the late 80's I was in high school and worked at a hardware store where several newly retired customers generously took the time to talk with me about the importance of saving for retirement. Most of all I'm thankful of a coworker named Al that was in his 80's, working solely to remain active on a weeknight with me stocking the store and helping customers and the occasional Sunday. He told me many stories about growing up in our city with many lessons including what it took to get through the great recession which he always circled back to...he knew those times would come again and he was intent on preparing me for them. I remember a year or two later seeing a PBS special from the author of "The Wealthy Barber" and seeing what was possible even at a lower income and I got the book from the library as well. Later at every job I always got a packet for the 401K plan with lots of information and I made sure to always get the match and to roll each plan into our IRAs rather than cash them out like far too many do. In the mid 90's I was ready for a house but couldn't find anything decent in our price range so I designed and built one myself that was energy and materially efficient that we still live in today. Since, we've had many obstacles to overcome, far more than our fair share and most would financially cripple including the 50 week unemployment stretch during the 2008 financial crisis when my wife had emergency surgery followed by an 11 day hospital stay. I felt Al's guiding hand on my shoulder many times those days, guiding my actions. It was stressful but we sailed right on through thanks to his advice. Since then we've continued, finding new ways to save that are also better and we kept the same austerity measures just as many did after the great depression because it really is the best way to live. The moment the pandemic started I knew what to do and we saved even harder. I saw the increased government spending over the past several years and since I know the true definition of inflation I knew what was to come. I had warned my wife for years that inflation would slowly eat us alive but somehow I've figured out how to largely dodge it and we're even better off rather than hurting. About a decade ago I saw another PBS special with Ed Slott, read his book from the library and on my own researched what taxes would be like in retirement. I then decided to make a forward thinking tax plan that eliminates taxes now and later in retirement that's been working perfectly. The Secure Act 2.0 derails my current strategy starting in 2027 but I've already found my work around that allows me to continue with the new rules and also solve the problem of providing rock solid income in retirement while remaining tax free. Compare this to the seniors I talked to while doing my research that are getting nailed because they have social security, pensions, and required minimum distributions which makes 85% of their social security taxable and pushes them into the next tax bracket ensuring they pay more for medicare premiums, making them subject to the dreaded "Tax Torpedo" and the "Widow's Tax Trap" and it's like doubling my money. None of this is taught or even written about for folks in my income bracket but it should be. As with everything, you have to be proactive and make your own plans and decisions. I'm very grateful for the guidance that I've gotten and I always try to pass it forward but very few younger people are willing to listen although I've had a few successes which makes it all worth it. Cheers!
I wonder. I think cultural values play an enormous role in the success of succeeding generations. I have four baby boomer siblings. We all have done very well in life. My parents were both well-educated, and worked very hard to raise us all, and send us to college. Also, we are Roman Catholic, with an extended Italian heritage, meaning, lots of relatives who we adore. Back then, college was not outrageously expensive like it is today. Us kids picked sensible majors (Engineering, medicine, economics, business). We did very well in our careers, and now have all retired comfortably. It would be somewhat unfair to say that our success was due to white privilege. My mother grew up in an impoverished farming family, and went to college on a full scholarship in Nursing, because she was very smart. Dad went to engineering school, and also worked hard to provide for the family. Our parents were not crazy strict, but insisted that we all work hard in school. They were involved in our education, but were not crazy. My conclusion is that strong family values, and strong cultural values, are the key to survival. I think this is reflected in Asian cultures very extensively. I write stuff on UA-cam all of the time, and I think no one reads it. If you have read this, please reply, and answer this question. Name the person that you love the most in your life. (My answer is my mom, but I'm an Italian kid, so no surprise.)
The only aspect that is potentially white privilege is that at certain times and in certain places a person of color can be willing to work really hard and will simply be denied entry to that school or that business based on their color.
I gave all for my kids as a single low income parent, and now they are both successful and loving; we are also Catholic and it made the difference for us; 😍l will survive on SS and God and love!
Sure glad we retired at age 52 in 2011. No debt, but almost broke. We live on my wife's pension, and I will get a smaller one this December. Hopefully, we will stay afloat with this inflation. Due to a low-income job and quitting early, plan to take SSA at age 70, which may help. Never had a rich family to support us and they have all passed away. Thankfully we never had kids.
Be careful who you marry or live with, dont pop off with too many kids, if any, don't waste money on vehicles or long commutes, avoid spending money on "addictions," and be skeptical of financial schemes that are too good to be true.
If you live in a state near NYC you can commute by bus or train usually. My husband has a one hour commute each way to NYC but at least he doesn’t have to drive and the bus ticket is $353 a month. When he turns 62 he gets a half price discount.
Retired Federal employee as of 2022 - 36 years. Stayed in the Fed. Gov't for that time for exactly the same reasons that you mentioned, and now I have a nice pension (approx. $48K per year at this point and still retain my same health insurance that I had before I retired, which pays for $800 of my Medicare part B premiums.. Also have the Thrift Savings Plan (like a 401K, but for Federal Employees) that is close to $700K, and waiting to take Social Security when I am 70 (a bit over 1 year from now). Did some teaching as a re-employed annuitant for my agency for a couple years until I got bored. What you are showing me is that I in a much better situation than the vast majority of people in my age cohort. My spouse and I are not rich by any means, but, at least, as long as we are prudent, financially we are comfortable.
@@steveos5112 geez, nice to know you are so much smarter than everyone else and can discern so much so quickly. My advice, shut your trap and worry about yourself.
Here is my observation…i really do not need so much personal info…and also the “i am comfortable” at the end is self congratulatory that while at this moment may be true now may not be true in the future…we are all in the same boat!
I recall a story about John Templeton who, as a poor young man, decided to live on HALF of what he earned and save/invest the rest. Most viewers will recognize him as the founder of the Templeton Funds and a billionaire. Living well within one's means requires sacrifices but eventually pays off. My oldest car is a 1972 model; my newest us a 2007, and I am happy with these far less complex vehicles.
I am a 1952 born baby boomer who saw 3 out of 4 grandparents live to their mid-90s and my parents are now 93 years old. I have known for a long time that my chances of living as long or longer than them are very high so I have done a few things - retired at 65 but didn't draw SS until 70 years old, worked with my financial advisor to keep my main chunk of retirement funds aggressively invested with a 25-30 year time frame, and to work a little parttime (seasonal tax preparation for a CPA and substitute truck driver) while still maintaining an active travel schedule (just back from ARUBA) and no debt (house, cars, credit card) except for a small HELOC used for cash flow reason. I have a net worth large enough to handle long term care for both of us for over 10 years so I feel very comfortable in our position. To do that, I started early understanding all the issues you just raised so that I could be in my position. Hopefully many 40 - 60 years olds will listen to you and take the necessary steps.
That's the key...planning EARLY. I didn't get a clue until my mid 40's but realized quickly the trouble I could be in. Fifteen years later and I am retired and don't have a care in the world. Phew!
Do you use your HELOC for velocity or infinity style banking? Just curious because that has been popping up a lot lately in my suggested videos. Can’t tell if it’s a scam or not.
Better start smoking a pack or 2 cigarettes a day, living to 95 isn’t the greatest or take up that sport of a flying squirrel. Good luck I visit my 95 yr old mom every 2 day it’s a sad ending to life.
@@brucebaum1458 for some yes. Others make it to their 90s and are still living on their own doing all their own things. My neighbor is 92 and still mows his own lawn (turns down offers of help), caught him on a ladder cleaning his rain gutters and no mobility issues - he is spry.
Excellent explanation. I've been teaching these concepts to my friends, family and employees for the past decade or more. I am convinced that your presentation with additional Q&A should be a requirement for all people graduating from high school or worst case from college. Far too many people fail to grasp essential concepts around defined contribution retirement plans, the impact of generational increases in life expectance, and the basic understanding of how inflation will change their spending power across a longer life. Please keep up your excellent videos.
I knew grad students about 2007 who where over $250,000 in debt from condos they had bought ... season NFL tickets ... gym memberships ... cars etc. Talking to them about money was like talking to a wall. I tried to get simple with one and said: "Assets: GOOD! .... Debts: BAD!) He tried to insult me back by saying: "You sound just like my Dad!" Yes, this video was excellent and spot-on. But this kind of thinking has always been out there for those willing to listen.
When my young employees said they could not afford to match the companies 403b plan contribution, a one for one match up to 12% of salary, I reminded them that their cup of super jazzy morning Starbucks coffee 7 days a week amounts to close to $1000 annually. That usually shut them up and made them acknowledge that they were choosing short term gratification for long term financial security. Sadly, most of these knuckleheads realize that they need retirement funds when they get to 55. Ugh!
After the 2008 financial crisis when I lost everything, I was wise enough to learn from my mistakes. I regrouped and scaled back. I live frugally, live below my means and without debt. Even retired early and enjoying life.
I'm tapped out financially. Retired, physically disabled. Transmission conked twice in 2 days. Got one. It failed after only 80 miles. Second one put in. Both my wife and I have had health challenges for multiple years costing us thousands and it'll take multiple years to pay off. Unfortunately i may not live that long to be able to do that, as drs want me to get an mri to see if I have cancer, but with no insurance or money to pay for it, I'm just a ticking bomb waiting to blow up (die). No burial/life/health insurance. Never could afford it on the pay i was getting on the 50+ jobs I had over 55 years of work living a simple lifestyle. Just wasn't in the cards, even having a college education and having my own medical business.
Our financial adviser advised against long-term care insurance as his experience with his older clients told him it was not a good value. No one in our respective families has ever spent time in long-term care. We all tend to live healthy and well and then die quickly. So what we did was self-insure. We figured the annual average cost of long-term care times the average length of stay and put that amount into a separate investment account which we never touch. It's there if one of us needs it. If we don't it goes to our children.
@Holy Schmidt! I have been critical in the past. Today, I say “Well done.” As to government employees and DB plans, the folks who have worked in the public sector in Tennessee for 15+ years are still on the “old plan”. Not so much for the newer people-and the 401k match is DECREASING. I was just looking through the numbers for my organization and the FY 23-24 match was HALF of the previous year’s number. There are contributing factors, as always. JD, CPA
Having difficulty in retirement is also a byproduct of divorce. The drug and free love culture ended up accepting divorce. It's more difficult for 2 separate households to prosper than a nuclear family.
I suspect that a big reason for the gray divorce numbers are women who have just come to the point of prefering to go on in alone, despite their reduced financial status, than to continue living w/ their abusive, mean-spirited, sometimes physically abusive husbands.
@@penelope5500 May I respectfully point out that my " abusive, mean-spirited, sometimes physically abusive WIFE" divorced me. Now she is broke and I am doing fine and she is sending out feelers about getting back together. (She is the avowed Christian, not me.)
I retired at full social security. I have a state pension. I saved about $200,000 and used about 80% to move overseas, put a good down payment on an apartment, and buy necessities. Health care costs here are lower and so is the cost of living. I plan to start an online business. Life has been good so far. The trick here is to be creative and make sure you maintain healthy habits.
Geoff. No disagreement from me. At age 76 with health issues covered by Medicare, we are doing fine. I fear for the younger generation though due to changes in retirement calculations by big biz. And out of control health care. With today going towards a lease home environment rather than home ownership, I think the smart move for younger people is to consider communial living with parents and siblings for defined timeframe like five years or ten. It is my feeling that one must find contentment at home to generate the energy to succeed today.
Unfortunately we now live in a country controlled by corporations. They have bought politicians for decades and now we know they’ve bought judges - even those on the Supreme Court. It’s in the corporate interest to have a convoluted health care system that no one outside the insurance industry understands. There’s no way to fix this because wealthy people pay a smaller percentage of their incomes in taxes than middle class families. So the next step is to delay retirement to 70 rather than raise the taxes of the wealthy. So it might solve the problem but only because our life spans are now beginning to decrease for the first time in generations. So more people will die before they get Social Security, as I assume the early age will also increase to 65 and I’m guessing Medicare won’t be available until age 67 soon. Just as long as the wealthy don’t have to pay their fair share for a system rigged to their benefit, does it really matter that working class people will have to choose between food or medicine?
Why you poor VICTIM! I lived in the same country as you, worked blue collar jobs, lived frugally and INVESTED in that corporate world. Your problems are your own, and self pity seems to be one of them.
It would be a lot easier if society were open to discussing end of life strategies, beyond just "you need to plan for expensive 2-3 years in assisted living or hospice care". It may not be socially acceptable, but the idea of controlling your death and setting an expiration date makes sense to me. There must be better ways to age than waiting to die. While we can't predict our medical health, we can alleviate stress by helping people legally die with dignity when they decide the time is right.
I'm not sure the healthcare industrial complex is really helping us. It seems like we work our whole life to save up for our old age and the system swoops in and sucks it all away at the end.
Yes, and if you end up in a nursing home with Medicare and or medicaid, they come back to steal your assets after you've died so those programs are really only a loan against your death.
I was working in the lab of a hospital and was astonished by what the lab manager told me one day. She saiid, “We are not here to make people well. We are only here to get people addicted to drugs so we can milk them for money for the rest of their lives. Didn’t you know that?” She actually said this to me in the break room and not one other lab worker in that room even flinched at her comment!! I left the profession because I could not handle their set of ethics.
I'm 67, very healthy knock on wood. Moving to SE Asia next year in part to prepare for extreme old age and long term care. The cost for a live-in housekeeper who does everything including some elder care is $100-200/mo USD plus food. Live-in fully trained caregiver is $500-1000/mo and SE Asia caregivers are world famous for excellent care.
@@VivaciousOM I have been here for 17 yrs and I used to travel every year, but now I can't travel by air. No desire anymore., but I do miss my grandchildren and family. During Covid CR was closed for 2 years and I never have left since.
@@CostaRicaDave Thank you for your reply. I’ve heard how beautiful Costa Rica is and how excellent their food is along with many Americans living there happily. It’s missing family that holds me back. I wish you many more happy years.
I have had to come out of retirement in Asia and I am flying back to Canada, because of the rising costs of real estate in Canada. It is a shame because they are targeting the people who have worked hard all of their lives. I have to return to work at the age of 68.
Actually, A Tale Of Two Cities, the first line by Charles Dickens was "It was the best if times, it was the worst if times...." That was written in 1858 dude!
Yup. My father had 3 years of Hospital level care. Standard rest homes would take him because the Govt said that he was for Hospital level care. $96,000 a year. My god. 😢😢
I love the way so many early retirees shout "No regrets!" when they still likely have many years to go. It's a bit early for some of them to be declaring victory.
Not really. If you're disciplined in your spending and don't plan on doing anything that would disrupt your money flow, you should be fine. I literally know NO ONE who retired at 62 who isn't very happy with their decision. I personally waited until 65 because I needed the medical coverage, but in reality I could have done it financially at 62. I chose to wait, but if someone is good with managing money, I don't see a problem retiring early if you have a plan and stick to it..
Not me. I retired at 57 in 2017 and would not change a thing. I am very blessed, but no one gave me anything . I worked a rolling 12 hr. shift for 32 years and lived within my means . No matter what or who , if you don't have your health you have nothing.
@@paulmoss7940 That's great and as I said, it's a little early to celebrate. You're now 64. If you're average, you will live another 17 years. But unless you have a really bad illness, you may also live another 30 years. You don't want to be like the football player who celebrated his touchdown on the 5 yard line and then got tackled.
@@dyates6380 I don't know anyone in their 60's or 70's who regrets his decision to retire early. Sometimes, their widow wishes they hadn't done that to them. Sometimes, they regret it in their late 80's or mid 90's. I'm not saying everyone is in trouble, I'm just saying a lot of the "no regrets" people would be in a world of hurt in a hyper-inflationary environment.
Thank you for the information. I wish, I had been able to obtain this information 11 years ago. Hopefully, with my SS, Pension, and an annuity, it will keep me from dipping into savings.
I have two unconventional opinions: 1) when I can’t wife my own a55 I’m checking myself out. Not going out like my mother. 2) there exists an unquantifiable chance that the US goes thru a dramatic dollar upheaval over the next 20 years that upends the entire game board.
@@coraltown1 “how did you go broke?” “Slowly, and then very fast”. Inflation is a 3% tax on creditors (as of right now). The U.S. has managed to bully & alienate a majority of the world thru threats, sanctions, coups, assassinations, regime changes and wars. Right now the BRICS+ is working to find a way out of dollar hegemony and, led by Russia and China, they eventually will. The dollar will become one of several reserve currencies, and our expanding debt (now $1T every 100 days) will drive many to get out of the dollar yoke. Weaponizing our greatest asset was a fools move. As this change continues along we will experience higher inflation and lower growth as debt service crowds out everything else.
@@drumsnbass I agree up to a point. I don't think you'll stay number one but I expect you will remain in the top five for quite a while depending on if and to what extent you divide up. It won't be happening overnight. Also the minute you're not out in front all unity between Russia and China will disintegrate; they don't trust each other either.
Because we took a beating in 09 , 10 ,11 , 12 during a 5 year recession and unemployment and no construction work and had to sell house in 2010 the bottom of the housing decline, and more
Don’t feel for folks that always spent with absolutely no conscious through life because these same folks felt entitled to everything. The boomers that are doing well are hard working folks with a budget always & live within their means.
I worked since I was 15. I am 75. I am a saver. I have paid for two extended stays in nursing homes for an incapacitated parent and a wife who became disabled, went through many surgeries and passed a few years ago. I will retire soon in my 70's with small, adequate assetts.I have no proud sense of having made the best decisions.
I always worked full-time-plus, lived frugally, and saved and invested aggressively and consistently. I never made a high salary or worked for a company that offered a pension or 401(k). I established brokerage accounts in my 20s. Fast forward 40 years, and I am now 66 and retired, have zero debt, and have a net worth of nearly $14 million (in stocks and mortgage-free rental properties). It can be done, but one must make a lot of sacrifices.
I have been very fortunate. I quit college when I was 20 and joined the Navy. Was young and immature. Went to work doing something entirely different from my Navy career and fully retired at 62. In my civilian job I was fortunate enough to be able get a 401K. Am 77 now and between my 401 and Social Security and SS retirement pay have of overtime $65,000/year. I’m certainly no financial genius. Sometimes it’s better to just be fortunate
I am noticimg society is splitting into 2 groups. People who save more then they need, and people who save absolutely nothing. I dont know anyone who only saves a little bit. Its either, i need lots to retire and i better save hard, or....its pointless so im saving nothing.
Unfortunately, you seem to have a point. Me to ex wife: "We agreed we would save money!" .... Her: "We will save money when we have something to save ... right now there are things I want to buy!"
I suggest there are three groups, not two. 1. People who save and invest 2. People who spend all they earn 3. People who spend all they earn and all they can borrow.
Regarding Soc Sec, if money is basically just printed now, why not just print more money? There is no accountability anymore, just the illusion of actual budgets.
If you live into your 90s your kids might be in the their 70s before they would inherit anything. In other words it might be your grandkids that get an inheritance and skip your kids' generation. You might have less to leave if you live that old, too. Hmmm. Better tell your kids and grandkids to work hard, save and invest now!
What you said about a company considering you a money maker or not is so true. My husband just retired at almost 63 because of mobility issues from two spinal surgeries, not what we had planned. he is a very skilled maintenance mechanic for the heavy machinery used to manufacture goods, in his case, 20 years at a paint plant. They resented having to pay mechanics to fix the machines but knew they had to have them, he had mentioned it a few times to me over the years. Mainly this was a corporate view, not that particular plants view . Luckily in his field, having mechanics familiar with the machines in that plant was crucial and because he was good at his job, he moved up to supervisior and could have worked to 70 had he been able to. But it is a true issue with companies not appreciating good workers who they feel are not contributing. He was lucky because the managers did know his worth and worked with him to stay as long as he could.
I’m 63 fairly healthy not much savings but also my debts are under 1000.00 (less then a weeks earnings) no mortgage no dependents and a job that wants me as long as I feel I can work safely. Today I just don’t know what’s next or where I’ll end up
It’s totally up to you where you end up. If you’re healthy, you can work 10 more years. Pay off all debts. Live below your means. Save every penny. Stick to a budget. Take Social Security at 70. Go to Fidelity or Schwab for help with your retirement. You still have some time to plan.
@@user-ik2no7jw5g I drive long haul OTR truck. So I don’t spend much during the week mostly coffee after a shower and treats for my dog. I still enjoy the traveling around the country and plan on at least 10 more years unless they do manage to get us eating bugs. I do manage to stash away about 1000 a week but I see many signs of supply issues and major downturn recently. There’s been uptick in people asking for shower credits and so many cars sleeping in rest areas
At a minimum you should be maxing out contributions to any 401K for which you are eligible. And HOW are you spending so much of your income? Personally, I lived frugally which allowed me to save substantial amounts, investing in stocks and rental real estate. In my view, there is a high probability you will regret ageing without substantial assets that you can use to support yourself. But it's certainly your choice.
The majority of personal bankruptcies in the USA are due to medical expenses. This does not happen in Canada or any other civilized country. Heck, if your wife gives birth to twins you will be financially stressed!
The thing that caught us unaware in retirement was the cost of pet care. We spend about $1000/month on us for healthcare (Part B, part G, Part D, deductibles, drug copays, glasses), but our pets are older and constantly need expensive surgeries and medications. In 2 years we have spent about $45K on the pets.
In my situation, I'm 61 and WANT to retire next year and start collecting. Ill work part time just to sweeten the pot a little, but healthcare is the elephant in the room. I'm retired military so I i can use the VA, but I have to live near a good VA facility. That narrows my choice of where to move South away from NY. I dont plan on needing healthcare...which is crazy I know. Hopefully the VA is all I'll need.
@@G_Machine_Joe Not true. It may not be as cheap as Tricare for Life when you turn 65, but it’s far cheaper than a civilian medical insurance policy. Also, don’t forget through the Choice Program, you have access to civilian facilities if you live too far from a VA facility or they can’t get you seen within 30 days.
I didn't have much for retirement but I have a few acres, small home that is off grid and paid for. With the rest I got food, seeds, supplies, security and a modest midnight garden. Going to hunker down and try to ride out the storm.
The tail end of the boomers are actually Generation Jones as in trying to keep up with the Jones. Your sister might be one, IK I am. Still retiring early but may work 2 six hour days. All the best.
@@wilfredonievesjrIt is also new to me. Glad your plans are going well. I’m not going to work FT much longer. Will learn to stretch a buck further. It actually costs money to go to work, so it’s how one retires. I hope your sister is able to retire at some point.
Yeah my siblings are all Boomers. Most are well set for retirement, military and or pensions, plus savings. One sister is early 60s, little savings, no assets. Modest income. Single. She plans to work at least to 70. Her Social security won't be much. I'm on track to retire when my youngest finishes high school in a few years. No point in retiring earlier as far as I'm concerned.
There are a lot of charitable organizations who could use your services in retirement. It allows you to stay active while donating your time (or, as I am doing, working for minimum wage rather than prevailing market value and billing fewer hours) for a good cause.
I’m no financial expert but I am a union member and to say the “Unions have crushed defined benefit plans” is way out of line! I would say corporate greed is way more to blame the hard working union employees. Why do you think the only ones with defined benefit plans are public employees? Maybe because there aren’t share holders and way over paid CEO’s taking it away from them.
Part of the problem is that returns in the market have been far above historical averages and dominated by a a very few tech stocks . A return to normal means much lower to actual negative returns for decades .
For boomers and senior citizens, the current market and economy are unnecessarily harder. I'm used to simply purchasing and holding assets, which doesn't seem applicable to the current volatile market, and inflation is catching up with my portfolio. My biggest concern is whether I'll survive after retirement.
Just buy and invest in Gold or other reliable stock , the government has failed us and we cant keep living like this.
Yes, gold is a great investment and a good bet against the devaluating dollar, been holding some for awhile now, I’m grateful my adviser’s moment by moment changes in the market are lightening quick, cos who know how much losses I would’ve had by now.
@@PhilipDunk Could you kindly elaborate on the advisor's background and qualifications?
Work harder... As boomers always say.
I've stuck with SOPHIE LYNN CARRABUS since the pandemic, and her performance has been consistently impressive. She’s quite known in her field with over two decades of experience, simply look her up.
67 Y/O baby boomer here. Out of my circle of 8 close friends, 6 carry crazy debt levels and are into "Oh look at my new car and sneakers.". The remaning 2 are well into 7 figures net; self employeed, and quickly avoid loan requests. This entertainment keeps me cranked up! Thx for this video! All good!
Self employed pay lower taxes and can mix in personal expenses with business expenses without being caught by the IRS. Apples and Oranges.
@@christschool you use the term “without being caught by the IRS” like you are getting away with something. Please be aware as a retired CPA that if you are fraudulently filing income tax returns that there is no statute of limitations on your income tax return filings. Still comfortable?
Me 63
High school dropout
Laborer all my life
Retired. House paid off
No debt at all. $4200 take home
Pension. Life is good
You're lucky. Only 15% of private sector workers get a pension plan.
@@edennis8578 I climbed trees for 30y
Almost got kllld so many times.
Some luck
Its not luck. No one forced them to work for a company without a plan. I have two retirements plus social security and own two homes. I have zero debt and don't even own a credit card. If everone seeking employment only took jobs with a plan companies that don't won't have any employees..@@edennis8578
Actually your pension like so many others are tied directly to the Stockmarket. If you haven’t been investing in Gold/Silver you are simply going to be Screwed blued & Virtually Tattooed
I've found life lessons are more important than a diploma. Well done!
As we witness the current economic landscape, it's becoming increasingly clear that we're entering a recession. Diversification can mitigate risk and increase the chance of success
I try to consider a mix of bonds and fixed-income securities to provide stability to my portfolio but i need solid advise.
Don't put all your eggs in one basket. Diversification means spreading your investments across different asset classes (stocks, bonds, real estate) and within those classes (different companies or industries). This helps reduce risk.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...
When it comes to investment, diversification is key. That is why I have my interests set on key sectors based on performance and projected growth. They range from the EV sector, renewable energy, Tech and Health (AMD) alongside coins, and gold. I'm also working on an investment plan with my CFA that includes AI looking into Nvidia, MSFT, Alphabet stocks among others. I've been utilizing a CFA for more than 4 years and I've made over $000,000.
@@SamsonsRhodesas That's quite remarkable! I'm genuinely interested in benefiting from the guidance of such experienced advisors, especially considering the current state of my struggling portfolio. May I know the names of the advisors who has been assisting you in navigating these financial challenges?
My wife and I always spent less than we earned. We have been debt free for decades. After the housing bubble burst we bought each of our three children a modest 3 bedroom home. They could not afford them on their income. These have more than doubled in value over a very short period of time. So far we are comfortable in retirement. I know that we are unusual but it was not luck or prescience. We worked more and harder than most of our peers and always lived well within our means.
Me
What was your net worth before you bought your children their homes
@@harryhankins1338It’s easy to spend well below your means when your net worth is high.
Me too.
Very impressive, especially buying houses for your kids.
A huge problem is so many people don’t take care of themselves and have to retire early on medical or are in bad shape just coast into retirement with bad health. People should be healthy at 65 years old but so many people eat garbage that they’d never feed their dogs.
Eating “right” does not guarantee good health. You see people leading healthy lives by your definition that are not healthy. What a despicable thing you are saying…use your brain, not everything fits into your narrow thoughts.
@ 😂
I started having back problems at age 17. I could do nothing about my deteriating back. It is genetic. Although I am on disability at 60, I still do everything within my power to stay healthy. I was fortunate to never get into debt. I was taught at age 14 the value of money and was always told to avoid debt at all costs. It wasn't easy as I had to work up to 3 jobs while I could. Even though I managed, not everyone is as fortunate as I was. Things happen out of your control.
I just love it when people come on a video like this and brag about how they avoided all the problems that are going on now because they were just so smart! You don't realize that some people's lives weren't as tidy or as easy as yours.
Boy, is that true .I'm 74 and very thankful for what I have.but life is not a calculus formula.its so easy to say save and don't accumulate debt. If it was only that easy!
Exactly! And they never admit that pure luck, or a healthy inheritance, or rich parents that bought them a house or paid for college or something else is the real reason for their success.
Boo hoo 😢
@@chiplangowski3298 what about the guy that put himself through college, got a good job and worked hard, and made good financial decisions? They don’t exist? Geez… not everyone that has money got it from an inheritance. What a way to see the world smh.
It comes down to one key component. Live within or below your means from the day you are employed. Minimize debt in your 20s and 30s and eliminate in your 50s
At 60 planning on a more disabled future is a core focus here. No kids, parents, currently no dept., but will review your other points. Thank you for what you do!
I really agree with the thought that young people don't realize they won't be willing and able to keep working when old. I always figured I'd just have to keep working and was fine with the idea...until I was in my 60s and discovered what old was.
I'm 63 and struggling to work 26 hours a week since having lung damage from severe Covid. You can't just assume you can keep working.
@@suen5006
That's true.
However, young people rather commonly waste their 20s, and even 30s, spending huge sums of money and TIME on colleges, expensive places to live, cars, cell phones, clothes and other JUNK. These years, which could be the basis of savings and investments, are often wasted and even worse, the sources of heavy debt loads.
College educations CAN pay off, if you choose your course of studies WISELY. But too often it is a net loss for young people as colleges FLOOD the labor market withy people whose actual education may be marginal and whose economic prospects with a degree may be poor.
@@SeattlePioneer I think that they do understand, I mean there are many that don't want to work, and they don't right now. BUt my daughter is a GenZer and out on her
own, going to school (college) with her own high end apartment. I said Many
don't want to work but I don't know the percentage.
@@suen5006 Yo should be on SSDI as well, and begin Social Security too.
A recent bill in Congress proposed the elimination of taxes on social security benefits. Of course, it went nowhere. The double taxation remains in place.
It’s not really double taxation though it might feel like it. The tax dollars you paid on your wages supported prior retirees benefits. They didn’t do to an account with your name on it. The benefit you get is largely paid for from a current workers taxes. So the taxes you pay on that weren’t your dollars.
Quit giving billionaires tax cuts and have them pay into social security up to $400 k
Great video.I just retired at 65 and nine months.This was my best age for me.
'63 boomer here. I was never taught finances. I spent my 20's and 30's working low level jobs just to get by and take care of myself and my son. 40's and 50's working a skilled healthcare job after getting a trade degree. I thought it was good until 2008/2009 when the housing thing happened and I lost all faith in the 'retirement planning' of the American Dream.... I am going to live on SS alone with a paid off home and what cash I can save between now and full retirement.. Being solo it's not as easy as couples have it. But I won't have to suddenly cut my expenses in half like the one person left when the other one passes. Currently working 6 days a week to save the cash and pay for anything I need in CASH.
The change in family structure...... rise and single households and the rise of divorce.....is one thing that has had huge negative impacts on people's finances. Dual income from 2 financially responsible people, splitting the expenses and childcare, is how you save/invest/flourish. If one of us passes we can still afford retirement because we were able to save/invest/flourish due to dual income and shared expenses. I sometimes wonder if the housing shortage is also due to so many people living without partners....hence where a couple needs one house, the single need a house for each person.
With long term investing time does the heavy lifting.
Invest in gold. The dollar will soon be nonexistent. Banks will start to fail.
@@daverogers5609 Gold demand drives price...China's Central Bank has stopped buying gold and the price is already dropping.
@@daverogers5609 Gold is not an investment. It is highly speculative and subject to manipulation and government confiscation.
Medical technology hasn't increased our life span. Clean running water and nutrition has increased our span.
And sanitary sewers.
The wild card is your spouse & how much money they will spend in retirement. I do all our finances & retirement planning & we both plan to retire in 1 year. However, last week my wife made the following statement "We are going to retire & if we run out of money, we run out of money". I informed her that running out of money in retirement is NOT an option.
I agree. The wife and I have both planned as if social security and Medicare won’t be there when it’s time to retire. If it is then it’s just a bonus I guess. Having acquired enough liquidable assets all these years has not been easy. Took my first vacation at age 30, that was 25 years ago
Being on the same page is crucial.
It's more like this. If you run out of money, you are homeless and miserable.
If you aren’t on the same page financially as your spouse by the time you retire, the problem isn’t the spouse, it’s your communication skills and relationship.
@@hrw3mom103 also problem is that one does all the finances and planning. One will always end up doing most of the admin of finances, but both should be aware and know whats going on because what if something happened to that person, the other would not have a clue as to what to do. No one should be learning about their finances during a time of loss.
Holy Schmidt, can’t go thru life worrying. Each generation has its ups and downs.
The one I am most concerned about is long-term care. It is so expensive.
We are paying 120K a year for my mother who is completely disabled and needs 24 hr/day care. That's the going rate around here. She actually can afford it, but she's very upset to be paying to much of her hard earned money. I physically can't give her the kind of care she needs. My husband and I decided if one of us is that severely disabled, we will try to go to a low cost country to get that kind of care in order not to leave the other spouse impoverished.
@@suen5006 Like the Phillipines or Thailand.
Personally, I intend to check out before I have such a need.
I live frugally by choice, and long term care is
1) a horror
2) not frugal AT ALL.
@@SeattlePioneer In Thailand you could live on $1200 to $1400 a month.
@@SeattlePioneer My parents each had to pay a lot for care due to my father's poor mobility and my mother's dementia. My 90-year-old aunt is still living independently in her home that she and her late husband built in the 1960s.
I began work in the 70's when you applied to the "Personnel Department". That was a time when we were understood to be persons. Later it became the" Human Resources "Department. Now we are understood to be Resources: of the human sort, rather like a cow of the bovine or the bean as the vegetable sort or the tree as the timber sort of "resource ". Prayers needed for the younger generations.
I put in my requirements for staying with a company l had been with for 22 years. They let me know that they didn’t really care and called my bluff. A week later I told them to come get my company truck because I wasn’t wasting my time bringing it to them 😝 Best decision I’ve ever made!
Personnel > Human Resources > Organic Assests
@@reavsie1 living tools
@@reavsie1 ➡️soylent green
Early Gen X’er and raised by The Silent Generation. My parents were super scared of being poor after growing up during the depression and ended up spending almost nothing(my 89 yo father still owns his business, is worth 14 million and banks part of his SS). He encouraged me to work hard, save, live within my means, be self reliant and wanted me to get a “government job” with a “good pension”. He would be considered a “cheapskate” today. Anyway, I’m retiring in 8 months (before he is) and am in great shape financially…
No, he is Mr. Cheapskate and a fine upstanding example of how to get ahead.
The one thing you must not have when retiring: debt.
Seniors are judgement proof so if they got into debt there SS benefits are protected along with civil service pensions, military pension, declarations of homestead exemption are all protected from judgement if they get into financial troubles. They shouldn’t have to worry about non secure debt or losing their home all this information is available for seniors.
vic: That's what I thought at one time... I am 78 and I have a mortgage... Based on a rational choice.
Only have debt for a modest home as short a span as possible. Certainly not for a car or consumer stuff. It can be done, but probably on two incomes now. I have had our children in 401k’s since they were first employed. It’s Time IN, not timing!
@@res00xua Well, we bought these digs in 2015 and it is much bigger than before. Why? We liked it and it suits our life style better.
The mortgage was a financial decision. Interest rates were 2.5% whereas my investment returns were 7.5%.
Should this change significantly we will change this arrangement.
However, during these unsettled times cash in the bank or liquid investments are probably better than bricks & mortar investments. Just my opinion.
@@res00xuaI did a modest home & cars for cash on just my income. The difference is I don't think I need a $1000+ new phone every year or so, I don't need to impress my neighbors or coworkers with all the stuff I have & I understand the difference between a want & a need.
Geoff, always great information that you share with your audience. Big problem I see with boomers (I am one), is that they didn't save and invest, rather they lived for the moment. Unfortunately, that moment is now and they are reaping what they have sown. With all due respect, other than relying on the government or immediate family, their outcome is going to not very desirable. Keep telling your audience they need to invest for their future.
I'm a boomer and have many boomer friends. We worked hard, lived frugally, saved and invested aggressively and consistently, and lived within our means. Most of us are retired now and living the good life. Our sacrifices were worth it. I am retired, have zero debt, and have a net worth of nearly $14 million.
@@KathleenMcNe Well done Kathleen. I retired at 57, 7 years ago. Best move I have made in years. My wife and I did the same and are now sitting on a pile of assets and have no concerns about money at all. It certainly has made life easier to live. Best wishes to you and your family.
TBH, that could have been me. Fortunately, around 40 I started investing in a 401k and company savings plans, and I started making some career choices that worked out for the best now that I am finally taking Social Security and other sources of retirement income. I am not so rich that I can have a second home in Florida or take an around-the-world cruise annually, but nobody will have to set up a GoFundMe campaign on my behalf, either. Life is good.
@@JBM425 Glad to hear things have worked out for you. I retired at 57, 7 years ago and couldnt be happier. This was accomplished as a function of saving and planning, much like you. I wish you the very best in your retirement.
Boomers really got the short end of the stick. During their working years they were lied to being told that their company pensions would always be there for them. Then in the 1980's companies found ways to liquidate and raid the employee pensions. Nowadays, very few companies offer a pension plan and employees are expected to fund their own retirement. Boomers also were lied to when new social security rules came into place in 1983. I'm Gen X and was very blessed to be able to retire at 47. I'm now 55 and I feel real bad as I see many elderly people working crap jobs at Wal-Mart and McDonald's.
Not only are younger generations suffering financially (housing, jobs, minimum wage, health insurance), BUT we keep adding to the national debt! All of this debt is being pushed down the road onto generations that can't even afford to buy a house for their family.
National debt is a serious issue - and yes, further generations will have to back it back with interest =higher taxes for many years. Still voters are happy to vote on anyone promising lower taxes today regardless of the fact that this will bring higher taxes tomorrow.
@@thatguyelroy And, in addition, they spend, spend, spend!!
Right and the rents are high too. Many can make ends meet and that's it.
Asking the viewer to like the video before the content is like a waiter asking how you like the food before you pick up your fork.
Agree…also makes me think they are in it more for themselves than to helping viewers. In my mind, skip these type of you tubers.
I am 74 and retired at 57. Very active and spend quite a bit of time traveling the world. Doing very well financially.
Came from nothing and was never a big earner. But we planned and executed very well.
I bet your kids are in poverty
One daughter. Lawyer.
well, he lucked out when he was born. the stock market had never done better for small times investors like they did for boomers. Like when IBM, MIcrosoft and Apple were bought at $10 a share. Houses even in California were 40-60k in great safe neighborhoods in the 70's and 80's. .... and now worth in the millions. Boomers act like they are super smart, but a lot of it,... is luck of time frame. Boomers also lived in the great business expansion of defining leaderships and titles, were it used to be exclusive in the '20's-'50's, ....and now the generations are hyper competitive of kids and adults and everyone ,has access to "exclusive" knowledge. therefore; saturation. You could up until the late 90's still go to the doctor w/o insurance for about $60 a visit. Thats changed. Boomers saw the great expansion of small towns and cities to big metropolis expansion, and with that many chances to invest and expand construction and small businesses. Most boomers who were college educated did not pay 10-60k a year to get their degree. Boomers don't like to admit that fact.
@@HeadStronger-HSwhy?
Let’s see how you would be if your husband left you now splitting everything in half 🙄
in one day there are 550 comments and 116, 000 views. Just shows how great Mr. Schmidt's videos are; easy to understand and very relative to almost everyone.
Part of the problem with Social Security is like in my small town. The social security office here has two parking lots. One for workers and one for the public. The problem is the worker parking lot has at least 10 cars to one or none in the other lot most of the day.
Government efficiency!
@@prairiemark4084 You know, most cases are handled online, by mail, or on the phone. For instance, my wife's retirement application three years ago was handled by the Boston office. We live in Virginia. The only reason we know it was Boston was the phone call from the worker suggesting she delay her retirement until age 70 and take retirement until then based on her late husband's earnings record. He died in 2008 and it costs her about $300 a month, but her check at 70 will be a great deal more.
When I applied online twelve years ago the application was processed without anyone contacting me, so I don't know who processed it or where.
Didn't hear much about government at all levels means testing me in my retirement. The better I take care of my resources, the greater they are, the more likely I will be viewed as a revenue source. So I fully expect Government will let greed eat away at any earnings and soon start chomping down my diligently saved seed corn.
retired now 19 yrs. 15 yr ago a very wise financial friend told me, "Every 15 yr you'll need double". People might think the most important word in that statement is "double"; or "15 yr". The most important is need.
That's interesting. In San Diego the price of real estate doubles every 15 years. Residential anyways.
Doubling your financial assets every 15 years is possible in retirement, but you'd better start off with a lot of money!
Amazing quote! Need!! So true
Rule of 72. If inflation is 6%, cost of living is double in 12 years. In banking, you earn 6%, your money doubles in 12 years. Right now in the US, if inflation is 12%, cost of living will double in 6 years. It’s that simple.
Investments double every SEVEN..
I’m a boomer. Divorced twenty years ago lost everything and was deep in debt. As a modest earner I saved like mad for the last twenty years and will retire in six months with adequate retirement funds. Does this make me a Gen Xer that only has twenty years to save? Just saying it can be done but it is a choice!
I’m also a boomer, grew up in a blue collar family that never discussed money, other than to say that you needed to work hard to earn it. They knew nothing about investing, subsequently neither did I. Then married my husband who grew up in similar circumstances. We made enough to pay the bills but never enough to save or get ahead. Didn’t help that he never met a nickel that he couldn’t spend on something foolish. My choice to stay with him though. He has since passed and I am finally able to save. Bought an IRA, now have a job that actually offers a pension. And put as much money as I can monthly into precious metals. Since he passed I have been able to buy and sell a couple of homes, pay off an investment property which I will be leasing out hopefully for the rest of my life. Will be retiring before the end of the year. I’ll never have enough money to be completely worry free, but I should be able to keep a roof over my head and food in the fridge. Life is good.
Yes, it is a choice. I managed to go to a great college as a broke "financially independent" and survived on scholarships, student loans and work study programs. Every day I ate peanut butter sandwiches for lunch. It got to the point I thought I would DIE if I saw another peanut butter sandwich, but had no money to buy lunch at school like my peers. .................... Moved lunch back a couple of hours and suddenly those sandwiches TASTED GREAT!
My late husband's ex wife made out very well...she ended up with their home among other things now worth about $3M.
@@juliebecker5238 Yeah women are the ones with money now, I mean
like in her scenario, she has a lot more than her ex-husband, and well he's deceased,
sorry for your loss.
Last of the boomers here. I divorced after 24 yr marriage, everything split evenly and for 12 yrs half my earnings to spousal. I negotiated to take the retirement funds, she wanted the cash. I lived (necessarily) frugally, worked hard and saved. It was rocky at times but has all worked out and I’ll still retire at 63, debt free. I am convinced divorce did not hurt me financially overall, it liberated me to be disciplined and careful, much more than was possible during the marriage. My current wife is of the same mind, and that’s an amazing thing.
I put in my requirements for staying with a company l had been with for 22 years. They let me know that they didn’t really care and called my bluff. A week later I told them to come get my company truck because I wasn’t wasting my time bringing it to them 😝 Best decision I’ve ever made!
Way to go. When I decided to quit my job, I cleared out my cubicle and put things into my car. Then I went to HR and told her I quit. She did talk me into notifying my boss, which I begrudgingly did - told him I'm done. Goodbye.
"Forecast Calls For Pain" Robert Cray
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
More reason I enjoy my day to day market decisions is that i'm being guided by a portfolio-coach, seeing that their entire skillset is built around going long and short at the same time, both employing profit-oriented strategy and laying off risk as a hedge against the inevitable downtrends, coupled with the exclusive information/analysis, it's quite impossible not to
@@Tonyrobs2 talking about coaching, do u consider anyone worthy for recommendations? I have about 80k to taste the waters now that large cap stocks are at a discount... thanks
My CFA ’’ Sharon Ann Meny, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
My husband passed away when I was 36 with an 11 year old and a 16 year old. I watched the financial person, Suzie Orman, on TV and she said save money, put money into 401's and IRA's. I did as she said, lived frugally, retired at 60 and live comfortably. You have to save when you are young so the money has time to grow. I am going on a 2 week trip to England, France, Switzerland and Italy. I never thought I would be able to do that in my life.
Have a great trip. Those are great places to visit.
Kudos to you. I also follow Suzy orman’s advice. I am 66, but still work part time in a job I simply enjoy. I am healthy, workout in the gym 4 times a week. Health is wealth.
I went to Switzerland. It was awesome! Also England as a stopover, but enjoyed a day or two there. And a "flea market" in France. Oh my! I am more traveled than I realized! Please soak up the experience! I do know the single parent life and Suzie Orman. Enjoy your trip!
Well done. I just got back from an almost three week European trip with my wife and siblings and a niece and nephew and their kids. You'll LOVE it, ESPECIALLY Italy. Enjoy it; you've earned it.
Good for you! Enjoy your well-earned trip!
What funny is that as a GenXer I avoided all of these problems by listening to the Boomer's parents, The Greatest Generation.
Same here. I listen to the Great and Silent Generation. They sure made a huge amount of mistakes. Its weird to listen to people from Boomers to Generation Z talk about enjoying and not regretting financial mistakes. I remain quiet when they claim to never regret spending 20-100k on a luxury.
Interesting take. I'm a last gasp Boomer '62. My entire universe was impacted by the Greatest and Silent Generations. Austerity, self-reliance, work ethic, and many not sure that this new fangled SSA was really going to work! I personally have never spent 20k on a luxury item and know of only a few Boomers that have because they are wildly successful. With that exception, I feel like everyone from about '67 and earlier feels like financial regret is systemic in our economy. The younger generations are seeing a crazy steep financial hill they have to climb, the retiring-class is looking a huge financial cliff we're falling off. If you were a Boomer in a middle/lower class, I think you were told that if you kept your nose to the grindstone, it would all work out. Clearly the sheer number of changes in tech, manufacturing and culture have mostly made that a near fatal plan.
@@Viconius Lol, I was never one that blindly listened to what I was told, only to what I chose to. I was lucky in that I had several people from "The Greatest Generation" give me good advice and the drive to go even further. In the late 80's I was in high school and worked at a hardware store where several newly retired customers generously took the time to talk with me about the importance of saving for retirement. Most of all I'm thankful of a coworker named Al that was in his 80's, working solely to remain active on a weeknight with me stocking the store and helping customers and the occasional Sunday. He told me many stories about growing up in our city with many lessons including what it took to get through the great recession which he always circled back to...he knew those times would come again and he was intent on preparing me for them.
I remember a year or two later seeing a PBS special from the author of "The Wealthy Barber" and seeing what was possible even at a lower income and I got the book from the library as well. Later at every job I always got a packet for the 401K plan with lots of information and I made sure to always get the match and to roll each plan into our IRAs rather than cash them out like far too many do. In the mid 90's I was ready for a house but couldn't find anything decent in our price range so I designed and built one myself that was energy and materially efficient that we still live in today. Since, we've had many obstacles to overcome, far more than our fair share and most would financially cripple including the 50 week unemployment stretch during the 2008 financial crisis when my wife had emergency surgery followed by an 11 day hospital stay. I felt Al's guiding hand on my shoulder many times those days, guiding my actions. It was stressful but we sailed right on through thanks to his advice.
Since then we've continued, finding new ways to save that are also better and we kept the same austerity measures just as many did after the great depression because it really is the best way to live. The moment the pandemic started I knew what to do and we saved even harder. I saw the increased government spending over the past several years and since I know the true definition of inflation I knew what was to come. I had warned my wife for years that inflation would slowly eat us alive but somehow I've figured out how to largely dodge it and we're even better off rather than hurting.
About a decade ago I saw another PBS special with Ed Slott, read his book from the library and on my own researched what taxes would be like in retirement. I then decided to make a forward thinking tax plan that eliminates taxes now and later in retirement that's been working perfectly. The Secure Act 2.0 derails my current strategy starting in 2027 but I've already found my work around that allows me to continue with the new rules and also solve the problem of providing rock solid income in retirement while remaining tax free. Compare this to the seniors I talked to while doing my research that are getting nailed because they have social security, pensions, and required minimum distributions which makes 85% of their social security taxable and pushes them into the next tax bracket ensuring they pay more for medicare premiums, making them subject to the dreaded "Tax Torpedo" and the "Widow's Tax Trap" and it's like doubling my money.
None of this is taught or even written about for folks in my income bracket but it should be. As with everything, you have to be proactive and make your own plans and decisions. I'm very grateful for the guidance that I've gotten and I always try to pass it forward but very few younger people are willing to listen although I've had a few successes which makes it all worth it.
Cheers!
No . . . The Silent Generation raised Boomers. The Greatest Generation raised the Silent Generation.
@@DIAMONDGIRL57 The Boomer's generation started in 1946 and was the result of postwar prosperity/growth.
Most people don't understand or know how to handle money.
that is safe to say, as most people dont understand or know how to handle anything
I wonder. I think cultural values play an enormous role in the success of succeeding generations. I have four baby boomer siblings. We all have done very well in life. My parents were both well-educated, and worked very hard to raise us all, and send us to college. Also, we are Roman Catholic, with an extended Italian heritage, meaning, lots of relatives who we adore. Back then, college was not outrageously expensive like it is today. Us kids picked sensible majors (Engineering, medicine, economics, business). We did very well in our careers, and now have all retired comfortably.
It would be somewhat unfair to say that our success was due to white privilege. My mother grew up in an impoverished farming family, and went to college on a full scholarship in Nursing, because she was very smart. Dad went to engineering school, and also worked hard to provide for the family. Our parents were not crazy strict, but insisted that we all work hard in school. They were involved in our education, but were not crazy.
My conclusion is that strong family values, and strong cultural values, are the key to survival. I think this is reflected in Asian cultures very extensively.
I write stuff on UA-cam all of the time, and I think no one reads it. If you have read this, please reply, and answer this question.
Name the person that you love the most in your life. (My answer is my mom, but I'm an Italian kid, so no surprise.)
The only aspect that is potentially white privilege is that at certain times and in certain places a person of color can be willing to work really hard and will simply be denied entry to that school or that business based on their color.
Jesus Christ and you should too. esp as you age and come closer to that door.
Myself
My Italian relatives have all passed, so now it’s my boys.
I gave all for my kids as a single low income parent, and now they are both successful and loving; we are also Catholic and it made the difference for us; 😍l will survive on SS and God and love!
Sure glad we retired at age 52 in 2011. No debt, but almost broke. We live on my wife's pension, and I will get a smaller one this December. Hopefully, we will stay afloat with this inflation. Due to a low-income job and quitting early, plan to take SSA at age 70, which may help. Never had a rich family to support us and they have all passed away. Thankfully we never had kids.
Another great video, I love your concise well thought out presentations.
Be careful who you marry or live with, dont pop off with too many kids, if any, don't waste money on vehicles or long commutes, avoid spending money on "addictions," and be skeptical of financial schemes that are too good to be true.
And cut up your credit cards. If you don't have, don't spend it.
If you live in a state near NYC you can commute by bus or train usually. My husband has a one hour commute each way to NYC but at least he doesn’t have to drive and the bus ticket is $353 a month. When he turns 62 he gets a half price discount.
Poor people and ignorant people generally have FAR MORE kids than those who are higher up the food chain.
Great.
Good advice
Great no nonsense information. 👏
Retired Federal employee as of 2022 - 36 years. Stayed in the Fed. Gov't for that time for exactly the same reasons that you mentioned, and now I have a nice pension (approx. $48K per year at this point and still retain my same health insurance that I had before I retired, which pays for $800 of my Medicare part B premiums.. Also have the Thrift Savings Plan (like a 401K, but for Federal Employees) that is close to $700K, and waiting to take Social Security when I am 70 (a bit over 1 year from now). Did some teaching as a re-employed annuitant for my agency for a couple years until I got bored. What you are showing me is that I in a much better situation than the vast majority of people in my age cohort. My spouse and I are not rich by any means, but, at least, as long as we are prudent, financially we are comfortable.
Geez I hope you don’t die soon
@@steveos5112 geez, nice to know you are so much smarter than everyone else and can discern so much so quickly. My advice, shut your trap and worry about yourself.
Here is my observation…i really do not need so much personal info…and also the “i am comfortable” at the end is self congratulatory that while at this moment may be true now may not be true in the future…we are all in the same boat!
I recall a story about John Templeton who, as a poor young man, decided to live on HALF of what he earned and save/invest the rest. Most viewers will recognize him as the founder of the Templeton Funds and a billionaire. Living well within one's means requires sacrifices but eventually pays off. My oldest car is a 1972 model; my newest us a 2007, and I am happy with these far less complex vehicles.
I am a 1952 born baby boomer who saw 3 out of 4 grandparents live to their mid-90s and my parents are now 93 years old. I have known for a long time that my chances of living as long or longer than them are very high so I have done a few things - retired at 65 but didn't draw SS until 70 years old, worked with my financial advisor to keep my main chunk of retirement funds aggressively invested with a 25-30 year time frame, and to work a little parttime (seasonal tax preparation for a CPA and substitute truck driver) while still maintaining an active travel schedule (just back from ARUBA) and no debt (house, cars, credit card) except for a small HELOC used for cash flow reason. I have a net worth large enough to handle long term care for both of us for over 10 years so I feel very comfortable in our position. To do that, I started early understanding all the issues you just raised so that I could be in my position. Hopefully many 40 - 60 years olds will listen to you and take the necessary steps.
That's the key...planning EARLY. I didn't get a clue until my mid 40's but realized quickly the trouble I could be in. Fifteen years later and I am retired and don't have a care in the world. Phew!
Do you use your HELOC for velocity or infinity style banking? Just curious because that has been popping up a lot lately in my suggested videos. Can’t tell if it’s a scam or not.
If you are to live until your 90s, taking SS at 62 makes more sense, since you will be taking a smaller amount, but over a longer period of time.
Better start smoking a pack or 2 cigarettes a day, living to 95 isn’t the greatest or take up that sport of a flying squirrel. Good luck I visit my 95 yr old mom every 2 day it’s a sad ending to life.
@@brucebaum1458 for some yes. Others make it to their 90s and are still living on their own doing all their own things. My neighbor is 92 and still mows his own lawn (turns down offers of help), caught him on a ladder cleaning his rain gutters and no mobility issues - he is spry.
Fantastic and informative video.
I retired some years back. I'm 60. 115k pension. Zero debt. Including mortgage
Pensions are sweet…
No mortgage is the KEY!
Excellent explanation. I've been teaching these concepts to my friends, family and employees for the past decade or more. I am convinced that your presentation with additional Q&A should be a requirement for all people graduating from high school or worst case from college. Far too many people fail to grasp essential concepts around defined contribution retirement plans, the impact of generational increases in life expectance, and the basic understanding of how inflation will change their spending power across a longer life. Please keep up your excellent videos.
I knew grad students about 2007 who where over $250,000 in debt from condos they had bought ... season NFL tickets ... gym memberships ... cars etc. Talking to them about money was like talking to a wall. I tried to get simple with one and said: "Assets: GOOD! .... Debts: BAD!) He tried to insult me back by saying: "You sound just like my Dad!" Yes, this video was excellent and spot-on. But this kind of thinking has always been out there for those willing to listen.
When my young employees said they could not afford to match the companies 403b plan contribution, a one for one match up to 12% of salary, I reminded them that their cup of super jazzy morning Starbucks coffee 7 days a week amounts to close to $1000 annually. That usually shut them up and made them acknowledge that they were choosing short term gratification for long term financial security. Sadly, most of these knuckleheads realize that they need retirement funds when they get to 55. Ugh!
After the 2008 financial crisis when I lost everything, I was wise enough to learn from my mistakes. I regrouped and scaled back. I live frugally, live below my means and without debt. Even retired early and enjoying life.
I'm tapped out financially. Retired, physically disabled. Transmission conked twice in 2 days. Got one. It failed after only 80 miles. Second one put in. Both my wife and I have had health challenges for multiple years costing us thousands and it'll take multiple years to pay off. Unfortunately i may not live that long to be able to do that, as drs want me to get an mri to see if I have cancer, but with no insurance or money to pay for it, I'm just a ticking bomb waiting to blow up
(die). No burial/life/health insurance. Never could afford it on the pay i was getting on the 50+ jobs I had over 55 years of work living a simple lifestyle. Just wasn't in the cards, even having a college education and having my own medical business.
Thank you for sharing your knowledge. I am proud to say I am officially retire at age 60.
Then why did I see you last night working as a Walmart Greeter?
Our financial adviser advised against long-term care insurance as his experience with his older clients told him it was not a good value. No one in our respective families has ever spent time in long-term care. We all tend to live healthy and well and then die quickly. So what we did was self-insure. We figured the annual average cost of long-term care times the average length of stay and put that amount into a separate investment account which we never touch. It's there if one of us needs it. If we don't it goes to our children.
Good information! The lamp behind your right shoulder has a mind of its own.
It's an annoying distraction.
😂😂
I would like to see your vid on managing inflation
Outstanding video, Geoff 🇺🇸❤️🤍💙
@Holy Schmidt! I have been critical in the past. Today, I say “Well done.”
As to government employees and DB plans, the folks who have worked in the public sector in Tennessee for 15+ years are still on the “old plan”. Not so much for the newer people-and the 401k match is DECREASING. I was just looking through the numbers for my organization and the FY 23-24 match was HALF of the previous year’s number. There are contributing factors, as always.
JD, CPA
Having difficulty in retirement is also a byproduct of divorce. The drug and free love culture ended up accepting divorce. It's more difficult for 2 separate households to prosper than a nuclear family.
I suspect that a big reason for the gray divorce numbers are women who have just come to the point of prefering to go on in alone, despite their reduced financial status, than to continue living w/ their abusive, mean-spirited, sometimes physically abusive husbands.
No fault divorce law came into effect in 1969 when Governor Ronald Reagan of California signed it into law.
@@penelope5500 actually, you made that up.
@@penelope5500don’t let the door hit you.
@@penelope5500 May I respectfully point out that my " abusive, mean-spirited, sometimes physically abusive WIFE" divorced me. Now she is broke and I am doing fine and she is sending out feelers about getting back together. (She is the avowed Christian, not me.)
I retired at full social security. I have a state pension. I saved about $200,000 and used about 80% to move overseas, put a good down payment on an apartment, and buy necessities. Health care costs here are lower and so is the cost of living. I plan to start an online business. Life has been good so far. The trick here is to be creative and make sure you maintain healthy habits.
Geoff. No disagreement from me. At age 76 with health issues covered by Medicare, we are doing fine. I fear for the younger generation though due to changes in retirement calculations by big biz. And out of control health care. With today going towards a lease home environment rather than home ownership, I think the smart move for younger people is to consider communial living with parents and siblings for defined timeframe like five years or ten. It is my feeling that one must find contentment at home to generate the energy to succeed today.
this is spot on.
I just realized that the light over Jeffs right shoulder is blinking on and off. Nice little video feature.
Please do a video about retirement plan and IRA minimum distributions. Thank you.
Geoff, I feel for you. These leaches are ruining a good thing. Its happening on most financial sites.
Wake up people
Hi! For the algorithm. Luv these presentations.
Thanks Geoffrey
Unfortunately we now live in a country controlled by corporations. They have bought politicians for decades and now we know they’ve bought judges - even those on the Supreme Court. It’s in the corporate interest to have a convoluted health care system that no one outside the insurance industry understands. There’s no way to fix this because wealthy people pay a smaller percentage of their incomes in taxes than middle class families. So the next step is to delay retirement to 70 rather than raise the taxes of the wealthy. So it might solve the problem but only because our life spans are now beginning to decrease for the first time in generations. So more people will die before they get Social Security, as I assume the early age will also increase to 65 and I’m guessing Medicare won’t be available until age 67 soon. Just as long as the wealthy don’t have to pay their fair share for a system rigged to their benefit, does it really matter that working class people will have to choose between food or medicine?
Right on!
Well said! They are hoarding money
Well said. I'll choose food over medicine. To much medicine is never good.
@@davidwilliams4498 unless the medicine keeps you alive
Why you poor VICTIM!
I lived in the same country as you, worked blue collar jobs, lived frugally and INVESTED in that corporate world.
Your problems are your own, and self pity seems to be one of them.
Obligation versus Burden - a burden for many! Mine was a privilege to care for my wonderful parents.
It would be a lot easier if society were open to discussing end of life strategies, beyond just "you need to plan for expensive 2-3 years in assisted living or hospice care". It may not be socially acceptable, but the idea of controlling your death and setting an expiration date makes sense to me. There must be better ways to age than waiting to die. While we can't predict our medical health, we can alleviate stress by helping people legally die with dignity when they decide the time is right.
I agree. When I can no longer take care of myself, it's over.
I've never met so many people younger than me (68) that just won't work. It is amazing
Try getting a job; 2024 is a good comparison to 1979.
Jobs are scarce these days and I don't mean lower wage jobs.
Plus, more people are in college.
I'm not sure the healthcare industrial complex is really helping us. It seems like we work our whole life to save up for our old age and the system swoops in and sucks it all away at the end.
Interesting point.
Yes, and if you end up in a nursing home with Medicare and or medicaid, they come back to steal your assets after you've died so those programs are really only a loan against your death.
You are right on the mark !
I was working in the lab of a hospital and was astonished by what the lab manager told me one day. She saiid, “We are not here to make people well. We are only here to get people addicted to drugs so we can milk them for money for the rest of their lives. Didn’t you know that?” She actually said this to me in the break room and not one other lab worker in that room even flinched at her comment!! I left the profession because I could not handle their set of ethics.
I'm 67, very healthy knock on wood. Moving to SE Asia next year in part to prepare for extreme old age and long term care. The cost for a live-in housekeeper who does everything including some elder care is $100-200/mo USD plus food. Live-in fully trained caregiver is $500-1000/mo and SE Asia caregivers are world famous for excellent care.
I moved to Costa Rica in 2007 and built a house. It costs about $1200 a month to live. Ive never been sorry. And I have a view of the Pacific.
I might go to the Philippines and see how that is.
May I ask if you return to the US often to visit family?
@@VivaciousOM I have been here for 17 yrs and I used to travel every year, but now I can't travel by air. No desire anymore., but I do miss my grandchildren and family. During Covid CR was closed for 2 years and I never have left since.
@@CostaRicaDave Thank you for your reply. I’ve heard how beautiful Costa Rica is and how excellent their food is along with many Americans living there happily. It’s missing family that holds me back. I wish you many more happy years.
Habla Espaniol?
Most people live for the moment and are unconcerned about the future !
Social Security has not kept up with inflation.
Um…duh!
Nor has wages....
@@MOstix13 Sadly it would get a lot worse under Trump as he wants to cut it by 33%! 🇨🇦
@ Nope
@@RiaVersteeg doesnt matter who wins, we are headed to hyperinflation and president can do nothing to stop it.
I have had to come out of retirement in Asia and I am flying back to Canada, because of the rising costs of real estate in Canada. It is a shame because they are targeting the people who have worked hard all of their lives. I have to return to work at the age of 68.
Actually, A Tale Of Two Cities, the first line by Charles Dickens was "It was the best if times, it was the worst if times...." That was written in 1858 dude!
But that isn't the quote that he used in this video He used, " I've got some good news and I've got some bad news."
Well, said the world has always been one of the haves and the have Nots.
@@patty109109 With capitalism it's always a choice which one you become.
Yup. My father had 3 years of Hospital level care. Standard rest homes would take him because the Govt said that he was for Hospital level care. $96,000 a year. My god. 😢😢
I love the way so many early retirees shout "No regrets!" when they still likely have many years to go. It's a bit early for some of them to be declaring victory.
Yep. Retiring before Full Retirement Age needs to be a decision one does not make in haste.
Not really. If you're disciplined in your spending and don't plan on doing anything that would disrupt your money flow, you should be fine. I literally know NO ONE who retired at 62 who isn't very happy with their decision. I personally waited until 65 because I needed the medical coverage, but in reality I could have done it financially at 62. I chose to wait, but if someone is good with managing money, I don't see a problem retiring early if you have a plan and stick to it..
Not me. I retired at 57 in 2017 and would not change a thing. I am very blessed, but no one gave me anything . I worked a rolling 12 hr. shift for 32 years and lived within my means . No matter what or who , if you don't have your health you have nothing.
@@paulmoss7940 That's great and as I said, it's a little early to celebrate. You're now 64. If you're average, you will live another 17 years. But unless you have a really bad illness, you may also live another 30 years. You don't want to be like the football player who celebrated his touchdown on the 5 yard line and then got tackled.
@@dyates6380 I don't know anyone in their 60's or 70's who regrets his decision to retire early. Sometimes, their widow wishes they hadn't done that to them. Sometimes, they regret it in their late 80's or mid 90's. I'm not saying everyone is in trouble, I'm just saying a lot of the "no regrets" people would be in a world of hurt in a hyper-inflationary environment.
Thank you for the information. I wish, I had been able to obtain this information 11 years ago. Hopefully, with my SS, Pension, and an annuity, it will keep me from dipping into savings.
I have two unconventional opinions:
1) when I can’t wife my own a55 I’m checking myself out. Not going out like my mother.
2) there exists an unquantifiable chance that the US goes thru a dramatic dollar upheaval over the next 20 years that upends the entire game board.
@@coraltown1 “how did you go broke?” “Slowly, and then very fast”.
Inflation is a 3% tax on creditors (as of right now). The U.S. has managed to bully & alienate a majority of the world thru threats, sanctions, coups, assassinations, regime changes and wars.
Right now the BRICS+ is working to find a way out of dollar hegemony and, led by Russia and China, they eventually will.
The dollar will become one of several reserve currencies, and our expanding debt (now $1T every 100 days) will drive many to get out of the dollar yoke. Weaponizing our greatest asset was a fools move.
As this change continues along we will experience higher inflation and lower growth as debt service crowds out everything else.
@@drumsnbass I agree up to a point. I don't think you'll stay number one but I expect you will remain in the top five for quite a while depending on if and to what extent you divide up. It won't be happening overnight. Also the minute you're not out in front all unity between Russia and China will disintegrate; they don't trust each other either.
It's shocking how many people have debt!
Most are planning with a hope and a prayer. Couch surfers rule, homeowners drool.
Because we took a beating in 09 , 10 ,11 , 12 during a 5 year recession and unemployment and no construction work and had to sell house in 2010 the bottom of the housing decline, and more
Don’t feel for folks that always spent with absolutely no conscious through life because these same folks felt entitled to everything. The boomers that are doing well are hard working folks with a budget always & live within their means.
Or below.
I worked since I was 15. I am 75. I am a saver. I have paid for two extended stays in nursing homes for an incapacitated parent and a wife who became disabled, went through many surgeries and passed a few years ago. I will retire soon in my 70's with small, adequate assetts.I have no proud sense of having made the best decisions.
I always worked full-time-plus, lived frugally, and saved and invested aggressively and consistently. I never made a high salary or worked for a company that offered a pension or 401(k). I established brokerage accounts in my 20s. Fast forward 40 years, and I am now 66 and retired, have zero debt, and have a net worth of nearly $14 million (in stocks and mortgage-free rental properties). It can be done, but one must make a lot of sacrifices.
Impressive
I have been very fortunate. I quit college when I was 20 and joined the Navy. Was young and immature. Went to work doing something entirely different from my Navy career and fully retired at 62. In my civilian job I was fortunate enough to be able get a 401K. Am 77 now and between my 401 and Social Security and SS retirement pay have of overtime $65,000/year. I’m certainly no financial genius. Sometimes it’s better to just be fortunate
Aren't we all?
I am noticimg society is splitting into 2 groups. People who save more then they need, and people who save absolutely nothing.
I dont know anyone who only saves a little bit. Its either, i need lots to retire and i better save hard, or....its pointless so im saving nothing.
It's never pointless to save money. It's pointless to spend it trying to impress your friends and the people you work with.
Unfortunately, you seem to have a point. Me to ex wife: "We agreed we would save money!" .... Her: "We will save money when we have something to save ... right now there are things I want to buy!"
Life is full of choices. Some chose wisely. Good for them. Others do not. The latter is the group voting for the government to bail them out.
True
I suggest there are three groups, not two.
1. People who save and invest
2. People who spend all they earn
3. People who spend all they earn and all they can borrow.
Regarding Soc Sec, if money is basically just printed now, why not just print more money? There is no accountability anymore, just the illusion of actual budgets.
If you live into your 90s your kids might be in the their 70s before they would inherit anything. In other words it might be your grandkids that get an inheritance and skip your kids' generation. You might have less to leave if you live that old, too. Hmmm. Better tell your kids and grandkids to work hard, save and invest now!
What you said about a company considering you a money maker or not is so true. My husband just retired at almost 63 because of mobility issues from two spinal surgeries, not what we had planned. he is a very skilled maintenance mechanic for the heavy machinery used to manufacture goods, in his case, 20 years at a paint plant. They resented having to pay mechanics to fix the machines but knew they had to have them, he had mentioned it a few times to me over the years. Mainly this was a corporate view, not that particular plants view . Luckily in his field, having mechanics familiar with the machines in that plant was crucial and because he was good at his job, he moved up to supervisior and could have worked to 70 had he been able to. But it is a true issue with companies not appreciating good workers who they feel are not contributing. He was lucky because the managers did know his worth and worked with him to stay as long as he could.
I’m 63 fairly healthy not much savings but also my debts are under 1000.00 (less then a weeks earnings) no mortgage no dependents and a job that wants me as long as I feel I can work safely. Today I just don’t know what’s next or where I’ll end up
It’s totally up to you where you end up. If you’re healthy, you can work 10 more years. Pay off all debts. Live below your means. Save every penny. Stick to a budget. Take Social Security at 70. Go to Fidelity or Schwab for help with your retirement. You still have some time to plan.
I had a neighbor work up to age 73. He was not a saver. He moved to live with his son then move back 3 years later. He went back to work.
@@user-ik2no7jw5g I drive long haul OTR truck. So I don’t spend much during the week mostly coffee after a shower and treats for my dog. I still enjoy the traveling around the country and plan on at least 10 more years unless they do manage to get us eating bugs. I do manage to stash away about 1000 a week but I see many signs of supply issues and major downturn recently. There’s been uptick in people asking for shower credits and so many cars sleeping in rest areas
At a minimum you should be maxing out contributions to any 401K for which you are eligible.
And HOW are you spending so much of your income?
Personally, I lived frugally which allowed me to save substantial amounts, investing in stocks and rental real estate. In my view, there is a high probability you will regret ageing without substantial assets that you can use to support yourself.
But it's certainly your choice.
Co signed student loans, large house bank owns, medical bills, etc.
Another thing you don't want to have is an unexpected medical emergency.
The majority of personal bankruptcies in the USA are due to medical expenses.
This does not happen in Canada or any other civilized country.
Heck, if your wife gives birth to twins you will be financially stressed!
@@BasementEngineer Can never understand why Americans accept a medical system that has the possibility of medical bankruptcy.
Another great video Geoff!
Sometimes you'll just never know until you step off the "financial cliff". Prepare. Prepare. Prepare. But "life" happens.
The thing that caught us unaware in retirement was the cost of pet care. We spend about $1000/month on us for healthcare (Part B, part G, Part D, deductibles, drug copays, glasses), but our pets are older and constantly need expensive surgeries and medications. In 2 years we have spent about $45K on the pets.
In my situation, I'm 61 and WANT to retire next year and start collecting. Ill work part time just to sweeten the pot a little, but healthcare is the elephant in the room. I'm retired military so I i can use the VA, but I have to live near a good VA facility. That narrows my choice of where to move South away from NY. I dont plan on needing healthcare...which is crazy I know. Hopefully the VA is all I'll need.
Tricare?
@@pensacola321 Until 65, Tricare is very expensive.
Obamacare could be affordable or it may not be based on your retirement income. Medicare at 65.
@@G_Machine_Joe Not true. It may not be as cheap as Tricare for Life when you turn 65, but it’s far cheaper than a civilian medical insurance policy. Also, don’t forget through the Choice Program, you have access to civilian facilities if you live too far from a VA facility or they can’t get you seen within 30 days.
G_Machine_Joe: I live in Colorado where the newest VA hospital is.
This area may be a choice for you.
I didn't have much for retirement but I have a few acres, small home that is off grid and paid for. With the rest I got food, seeds, supplies, security and a modest midnight garden. Going to hunker down and try to ride out the storm.
My sister (boomer) tells me, she probably have to work till the end... while myself (gen-x) with a good plan and luck retired at 55.
The tail end of the boomers are actually Generation Jones as in trying to keep up with the Jones. Your sister might be one, IK I am. Still retiring early but may work 2 six hour days. All the best.
@@dennistyler9852 That is the first time I heard about this.
@@wilfredonievesjrIt is also new to me. Glad your plans are going well. I’m not going to work FT much longer. Will learn to stretch a buck further. It actually costs money to go to work, so it’s how one retires. I hope your sister is able to retire at some point.
Yeah my siblings are all Boomers. Most are well set for retirement, military and or pensions, plus savings. One sister is early 60s, little savings, no assets. Modest income. Single. She plans to work at least to 70. Her Social security won't be much. I'm on track to retire when my youngest finishes high school in a few years. No point in retiring earlier as far as I'm concerned.
Health Insurance?
Thanks again for all your help, love your channel😊
Good Info:
Tks.much
I don’t want to retire. Today (Sunday) I did absolutely nothing and was unproductive. This is a harbinger of things to come
Good. We'll need your taxes.
So you're a workaholic
I feel like I had a good day... when I do absolutely nothing.
There are a lot of charitable organizations who could use your services in retirement. It allows you to stay active while donating your time (or, as I am doing, working for minimum wage rather than prevailing market value and billing fewer hours) for a good cause.
Some people just don't have personal hobbies/interests I suppose.
I think you need to talk about the possibility of being taxed on the unrealized capital gains.
I’m no financial expert but I am a union member and to say the “Unions have crushed defined benefit plans” is way out of line! I would say corporate greed is way more to blame the hard working union employees. Why do you think the only ones with defined benefit plans are public employees? Maybe because there aren’t share holders and way over paid CEO’s taking it away from them.
I agree with you @scottschultz
Been in the steelworkers union twice over the span of my career. Never did squat for me same 50cent on a dollar 401 k
The only reason public employees have pensions is because the politicians use it to buy votes, and are long gone when the pensions go insolvent!
>
The unions and public employees have been smarter than voters.
@@SeattlePioneer Smarter, no. Better organized, of course.
Part of the problem is that returns in the market have been far above historical averages and dominated by a a very few tech stocks .
A return to normal means much lower to actual negative returns for decades .