#1 is a great idea! When my husband and I were planning to have a baby and we wanted me to be able to stay home with children, we lived for a year on his salary, banking mine. This got us used to the one salary and also gave us a safety net. I guess I should do the same as I prepare for retirement.
🎯 Key Takeaways for quick navigation: 01:07 💰 *Live on your retirement budget before retiring to ensure it aligns with your lifestyle and financial goals.* 02:43 🔄 *Consolidate accounts to simplify management, considering joint accounts and reducing complexity for effective financial planning.* 03:40 🏥 *Plan for healthcare insurance, especially if retiring before Medicare eligibility, and account for potential medical expenses in retirement.* 04:37 📈 *Understand required minimum distributions (RMDs) from regular IRAs or 401(k)s, considering strategies like converting to Roth IRAs and utilizing donor-advised funds for tax efficiency.* 09:01 🏠 *Consider the "three bucket strategy" for retirement accounts, balancing funds in regular IRAs, Roth IRAs, and regular taxable accounts to manage tax implications effectively.* Made with HARPA AI
I'd say, pay off your house and do the remodeling you want to do. As close to retirement, get new appliances, water heater, roof. Have a newish vehicle, or in good mechanical shape, and paid for. Hopefully get medically in shape. Just a few of my plans.
Azul, great checklist! I'm 5 months away from retiring and most of the items on this checklist I have. My mortgage is not paid off and won't be probably until I die or we move. I refinanced and have a low principal amount at 2.875% and kept it at 30 years ... saved $250 a month and my P&I is only around $6,000 a year. Had to make a choice when we were younger to either save or pay the mortgage down and we saved. I don't understand how a person/couple can live on a lot less than they do now while working. Based on my take home pay we will need more to live on in retirement than while I work. Taxes and Insurance are the main culprits as we don't feel them in the take home pay; I'm not complaining I just don't understand cutting so much money when retired. Friends - have none and yes I do socialize at work, maybe when I retire I can develop some. Definitely make sure to start somewhat early for pensions, SS and Medicare. And do keep in mind any bonuses or incentives that you may be able to get. Not all companies will float their medical insurance to the end of the month, the company I work for cuts it off your last day you work for them - make sure you plan for that either way (Medicare only starts on the first day of the month).
For couples the where do you want to live can result in a follow up question of do you still want to stay together. That's also best resolved at least a few years before you retire. Making assumptions about each others plans post retirement can result in nasty surprises.
One more for the list: Don't make the BIG MISTAKE of selling your home and everything you own, buy an RV to "See the Country"! Every single person that has done this that I know has ended up in deep, bitter regret. RV life is WAY, way more expensive than many people would imagine. Remember; once that home is sold, you can NEVER go back. Don't fall for the dream that turns into a nightmare!
Thanks for the insight. Wife and I were thinking of buying an RV, but decided to travel less, but travel with convenience. So we decided to fly and spend the extra money for a hotel...but just do it less. We decided that "home sweet home" is exactly that. I'm finally good with accepting the fact that I really don't enjoy traveling that much. I like sleeping in my own bed.
My retirement account has gone down by 13.7% in the past year due to rebalancing I did out of fear uncertainty and doubt. What are best alternatives to take in other to secure a financially free retirement and achieve ultimate peace? I don’t want to fail after 42 years of working hard.
If you want to rebuild your retirement by yourself, without the help of a partner, I will tell you it is near impossible. Even NewRetirement and co can’t do the job of an FA with expertise, a large following/client base and experience. Vet and hire one and begin to develop a rapport.
This is useful information, I copied his full name pasted it into my browser, his website popped up top search and his qualifications are excellent. I just messaged him
My wife and I retired 2 1/2 years ago and our take home pay through SS and investments is higher than when we worked. No 401k/403b contributions and no HSA contributions.
In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.
If you need advice, consider speaking with a financial advisor. Don't get me wrong, you can do it on your own, but financial advisors have a lot more knowledge and expertise in this area.
You are completely right, advisors have information and paths that are not disclosed to the public.. I profited $560k in 2022 under the tutelage of my Fiduciary-counsellor. Am I selling? Absolutely not.. I am going to sit back and observe how this all plays out.
would greatly appreciate if you could share some information about your financial advisor. I'm also interested in making positive changes to my finances this year, so any insights would be highly valuable to me.
Finding financial advisors like Stacie Lynn Winson who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Take your annual expenses and build in a 10%-15% buffer to cover things that may come up. Divide that total number by 0.8 and that should be your gross retirement income goal for year 1. Adjust for inflation each year afterwards.
If you haven't already, could you do a video focused solely on the 'retaining citizenship in your home country' while overseas (requirements etc) - and the financial effects of that.
Exit strategy with your emplyer is key. I am working to maximize the upside of properly timing this. My company works on a 3-year average of performance to pay compensation. So it will literally payoff to take a 2-year run way to retire. Throttle down partially 2 years out from retirement (to get the comp benefit from the previous 2 years at 100 percent. The further throttle down the 1 year our from retirement (to get the comp benefit from the year of 100 percent and the year of partial throttle back). Then unplug or even go part time.
The bonus thing is a great idea. I was going to get an annual bonus of 3K and I retired right after the money was in my bank account. Also I retired one week into the month, so all tax benefits were covered in that month.
Azul, Thanks for all you do! I'm learning so much as I plan for my retirement. I have one question about a financial planner. How much should I reasonably expect to pay a fee only planner?
I know you mentioned having the 3 buckets, but would it be prudent to just put all of our money in a Roth IRA or 401k so everything is tax free and we wont have to worry about it? Taxes are most likely going to be higher 20-30 years from now. Thanks.
Great tips. For those of us w/ no pension, why give notice at all? Why not "quiet quit" until they let you go.... with a couple months of severance pay???? How about volunteering for the next layoff? So that you get the severance package. I guess, I'm suggesting there's no benefit in announcing your retirement in a company that has no pension or retirement benefit. Why not get yourself axed and collect the severance? Thus, allowing you to college Unemployment payments for 6 months....
Great advice, I'm a year out from retirement and glad to have this checklist you've provided. Thankfully I'm in very good shape concerning these items you've listed, and hopefully will be right where you've advised when I do retire.
I am not 100% sure of my retirement budget because we are selling our 64 acres and house and buying a catamaran to live on. I can only speculate at costs of that. But boat will be paid off, and living expenses should be way lower than I have now.
@AzulWells thanks. I will be 54 when we retire. We have a 90% va income. Might go to 100% and over 7 figures in investments. We currently budget 2k a month to required living expenses.
Back in the days, we set goals for future. I can remember that when I graduated from College, I set up my goal that at 29 i should have my own house and a millionaire. So i started early to save and invest. My first invest was car rent and i got a loan from Chase to start up the business.
I want to try this out, living on amount I would during retirement, but seems hard to do when I get a paycheck every other week. So how does one go about doing that?? I've done it on paper tho.
For timing the end of employment, another thing to consider is that those early months are your least taxed months. If I were to stop working in February or March not only would I definitely get that annual incentive pay, but I'd owe very little income tax.
I am retiring at the end of Feb and this will allow me to put 100% of my pay from those months into my 401K, both reducing my taxable income and getting my employer's 10% match.
I plan on working just long enough in the new year to max my 401k and let the annual bonus hit my bank account. I will have exceeded the standard deduction by then but will pay the bare minimum income tax on some pretty healthy earnings.
Most people don’t realise it, but the secret to retiring comfortably is finding a way to make returns while your money works for you. My dad, as I remember, started saving for retirement quite late, but I know he was making more than 10k returns from his investment monthly and it was completely passive.
Haha. Investing enthusiast? Not really. Our family got introduced to a financial advisor about four years before my dad retired. That was what changed things. I've been using the same now and I think my retirement income would be on the right track.
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I really don't like making such recommendations, because everybody's situation is unique. But there are many freelance advisors you could check out. We have been working with Sharon Louise Count, and she's really, really good. If she meets your discretion, then you could go ahead with her. I endorse her.
I gave notice of my retirement just after bonuses and stock grants were locked and did not take any PTO all year so it was a nice payout. My last day was 12/30 and the last paycheck of $150k was just into the next tax year.
May you make a video on how/how much are we going to be taxed when taking out traditional 401k investment yearly when we withdraw from our retirement account. Also include the tax difference between long term capital gains and regular taxable income.
All withdrawals from a traditional 401K is treated as regular income for tax purposes so, it depends on your total income and deductions. As for Capital Gains vs. "Regular Taxable Income," there is no difference. Capital gains are treated as regular income.
This may sound odd, but I have no one else to ask. I have a credit union account in WA state. (I moved from there a year ago). I just paid off my car loan. Both my paycheck and SS check go there now. But I am thinking that I really should have a local bank account. I thought I could open a local account and have my SS check deposited there. Whenever I retire, I could close out the WA state account. Does that make sense?
My best friends in life have been coworkers. I still participate in regular monthly or bi-monthly get togethers with folks I worked with over the years and it is a great boost to my social life.
I can retire right now, but why should I? I only work about 24 hours per week. My job is easy and I get paid above the median income for a full time worker. Retiring is overrated.
@@fvvfvbbbb - I know people who have retired and they tell me about it. Of course, yes...there are many who also DON'T regret as well. However, I know quite a few that ended up working part time. So if retiring is so great, why are so many working part time?
![Lp. Сердце Вселенной #60 РОЖДЕНИЕ ЛОЛОЛОШКИ [Финал] • Майнкрафт](http://i.ytimg.com/vi/YoR0pAV9FVQ/mqdefault.jpg)
#1 is a great idea! When my husband and I were planning to have a baby and we wanted me to be able to stay home with children, we lived for a year on his salary, banking mine. This got us used to the one salary and also gave us a safety net. I guess I should do the same as I prepare for retirement.
🎯 Key Takeaways for quick navigation:
01:07 💰 *Live on your retirement budget before retiring to ensure it aligns with your lifestyle and financial goals.*
02:43 🔄 *Consolidate accounts to simplify management, considering joint accounts and reducing complexity for effective financial planning.*
03:40 🏥 *Plan for healthcare insurance, especially if retiring before Medicare eligibility, and account for potential medical expenses in retirement.*
04:37 📈 *Understand required minimum distributions (RMDs) from regular IRAs or 401(k)s, considering strategies like converting to Roth IRAs and utilizing donor-advised funds for tax efficiency.*
09:01 🏠 *Consider the "three bucket strategy" for retirement accounts, balancing funds in regular IRAs, Roth IRAs, and regular taxable accounts to manage tax implications effectively.*
Made with HARPA AI
I'd say, pay off your house and do the remodeling you want to do. As close to retirement, get new appliances, water heater, roof. Have a newish vehicle, or in good mechanical shape, and paid for. Hopefully get medically in shape. Just a few of my plans.
Azul, great checklist! I'm 5 months away from retiring and most of the items on this checklist I have. My mortgage is not paid off and won't be probably until I die or we move. I refinanced and have a low principal amount at 2.875% and kept it at 30 years ... saved $250 a month and my P&I is only around $6,000 a year. Had to make a choice when we were younger to either save or pay the mortgage down and we saved. I don't understand how a person/couple can live on a lot less than they do now while working. Based on my take home pay we will need more to live on in retirement than while I work. Taxes and Insurance are the main culprits as we don't feel them in the take home pay; I'm not complaining I just don't understand cutting so much money when retired. Friends - have none and yes I do socialize at work, maybe when I retire I can develop some.
Definitely make sure to start somewhat early for pensions, SS and Medicare. And do keep in mind any bonuses or incentives that you may be able to get. Not all companies will float their medical insurance to the end of the month, the company I work for cuts it off your last day you work for them - make sure you plan for that either way (Medicare only starts on the first day of the month).
For couples the where do you want to live can result in a follow up question of do you still want to stay together. That's also best resolved at least a few years before you retire. Making assumptions about each others plans post retirement can result in nasty surprises.
Thank you for all your hard work!
One more for the list: Don't make the BIG MISTAKE of selling your home and everything you own, buy an RV to "See the Country"! Every single person that has done this that I know has ended up in deep, bitter regret. RV life is WAY, way more expensive than many people would imagine. Remember; once that home is sold, you can NEVER go back. Don't fall for the dream that turns into a nightmare!
Thanks for the insight. Wife and I were thinking of buying an RV, but decided to travel less, but travel with convenience. So we decided to fly and spend the extra money for a hotel...but just do it less. We decided that "home sweet home" is exactly that. I'm finally good with accepting the fact that I really don't enjoy traveling that much. I like sleeping in my own bed.
@@JohnBowl14690you could always rent an RV and see if you like that for an occasional trip too.
But you are right there is no place like home...😅❤
@@fvvfvbbbb - True. That's another way to look at it.
Paid for bricks 🧱 & mortar home is the best foundation for retirement
I did it and have no regrets….so Not everybody feels regretful for this
My retirement account has gone down by 13.7% in the past year due to rebalancing I did out of fear uncertainty and doubt. What are best alternatives to take in other to secure a financially free retirement and achieve ultimate peace? I don’t want to fail after 42 years of working hard.
If you want to rebuild your retirement by yourself, without the help of a partner, I will tell you it is near impossible. Even NewRetirement and co can’t do the job of an FA with expertise, a large following/client base and experience. Vet and hire one and begin to develop a rapport.
How can one get to interview advisors? And what questions should you ask?
People downplay planner’s role, until they are burnt by their mistakes. That’s why I’ve been working with expert planners like CHRIS RYAN STEWART
CHRIS RYAN STEWART
GOOGLE the name
This is useful information, I copied his full name pasted it into my browser, his website popped up top search and his qualifications are excellent. I just messaged him
My wife and I retired 2 1/2 years ago and our take home pay through SS and investments is higher than when we worked. No 401k/403b contributions and no HSA contributions.
In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.
If you need advice, consider speaking with a financial advisor. Don't get me wrong, you can do it on your own, but financial advisors have a lot more knowledge and expertise in this area.
You are completely right, advisors have information and paths that are not disclosed to the public.. I profited $560k in 2022 under the tutelage of my Fiduciary-counsellor. Am I selling? Absolutely not.. I am going to sit back and observe how this all plays out.
would greatly appreciate if you could share some information about your financial advisor. I'm also interested in making positive changes to my finances this year, so any insights would be highly valuable to me.
Finding financial advisors like Stacie Lynn Winson who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
Hmm… I used to live about 2 miles from this filming location. Nice place to retire! Except RTA taxes!
Take your annual expenses and build in a 10%-15% buffer to cover things that may come up. Divide that total number by 0.8 and that should be your gross retirement income goal for year 1. Adjust for inflation each year afterwards.
If you haven't already, could you do a video focused solely on the 'retaining citizenship in your home country' while overseas (requirements etc) - and the financial effects of that.
Exit strategy with your emplyer is key. I am working to maximize the upside of properly timing this. My company works on a 3-year average of performance to pay compensation. So it will literally payoff to take a 2-year run way to retire. Throttle down partially 2 years out from retirement (to get the comp benefit from the previous 2 years at 100 percent. The further throttle down the 1 year our from retirement (to get the comp benefit from the year of 100 percent and the year of partial throttle back). Then unplug or even go part time.
The bonus thing is a great idea. I was going to get an annual bonus of 3K and I retired right after the money was in my bank account. Also I retired one week into the month, so all tax benefits were covered in that month.
Azul, Thanks for all you do! I'm learning so much as I plan for my retirement.
I have one question about a financial planner. How much should I reasonably expect to pay a fee only planner?
Beer, Stock up on beer. Lord knows before long it'll be 50 bucks for a 30 pack. I love beer.
Or you could learn to drink water, and resort to chocolate milk as a rare vice.
Exactly!!!
🍺 🍺 🍺
Good beer has a short shelf life.
I know you mentioned having the 3 buckets, but would it be prudent to just put all of our money in a Roth IRA or 401k so everything is tax free and we wont have to worry about it? Taxes are most likely going to be higher 20-30 years from now. Thanks.
Retired at 55 six years ago and have ignored all of these. Still going strong. I had $200K when I retired. Financial advisors? Crooks!
Great tips.
For those of us w/ no pension, why give notice at all? Why not "quiet quit" until they let you go.... with a couple months of severance pay????
How about volunteering for the next layoff? So that you get the severance package.
I guess, I'm suggesting there's no benefit in announcing your retirement in a company that has no pension or retirement benefit. Why not get yourself axed and collect the severance? Thus, allowing you to college Unemployment payments for 6 months....
He was talking about bonuses, not pensions.
Great advice, I'm a year out from retirement and glad to have this checklist you've provided. Thankfully I'm in very good shape concerning these items you've listed, and hopefully will be right where you've advised when I do retire.
I am not 100% sure of my retirement budget because we are selling our 64 acres and house and buying a catamaran to live on. I can only speculate at costs of that. But boat will be paid off, and living expenses should be way lower than I have now.
Wow! That is a HUGE change. Sounds like a great adventure. Congratulations! ⛵️Azul
@AzulWells thanks. I will be 54 when we retire. We have a 90% va income. Might go to 100% and over 7 figures in investments. We currently budget 2k a month to required living expenses.
Back in the days, we set goals for future. I can remember that when I graduated from College, I set up my goal that at 29 i should have my own house and a millionaire. So i started early to save and invest. My first invest was car rent and i got a loan from Chase to start up the business.
Yes true back in the days you can easily plan for your retirement . But now i don't how the systems works.
As a retiree i think it will be hard to Invest now without an expert guiding you, is dangerous.
Isn’t there a rule of 55 where you can access funds at 55 from a previous employer if you didn’t role it over?
I want to try this out, living on amount I would during retirement, but seems hard to do when I get a paycheck every other week. So how does one go about doing that?? I've done it on paper tho.
For timing the end of employment, another thing to consider is that those early months are your least taxed months. If I were to stop working in February or March not only would I definitely get that annual incentive pay, but I'd owe very little income tax.
this is interesting, i need to read more on this, thank you
I am retiring at the end of Feb and this will allow me to put 100% of my pay from those months into my 401K, both reducing my taxable income and getting my employer's 10% match.
@@edwardpate6128 Yeah, if you want a little more padding in the 401k that's a great way to do it.
I plan on working just long enough in the new year to max my 401k and let the annual bonus hit my bank account. I will have exceeded the standard deduction by then but will pay the bare minimum income tax on some pretty healthy earnings.
Most people don’t realise it, but the secret to retiring comfortably is finding a way to make returns while your money works for you. My dad, as I remember, started saving for retirement quite late, but I know he was making more than 10k returns from his investment monthly and it was completely passive.
This is really amazing though. I'm curious as to how he did it. Was it real estate? Or he was a market enthusiast?
Haha. Investing enthusiast? Not really. Our family got introduced to a financial advisor about four years before my dad retired. That was what changed things. I've been using the same now and I think my retirement income would be on the right track.
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I really don't like making such recommendations, because everybody's situation is unique. But there are many freelance advisors you could check out. We have been working with Sharon Louise Count, and she's really, really good. If she meets your discretion, then you could go ahead with her. I endorse her.
Thank you for this. Any idea if she manages retirement funds for couples too?
Retirement checklist:
Beer 🍺 ✅
Beer 🍺 ✅
Beer 🍺 ✅
🤣😜🤣! A man's gotta have goals!
@@bigjohnson7415
😉
🇨🇦 🍺 👍
Don't forget bourbon.
Live 9n your retirement budget??? I did that for 20 years. If you dont your screwed.
I gave notice of my retirement just after bonuses and stock grants were locked and did not take any PTO all year so it was a nice payout. My last day was 12/30 and the last paycheck of $150k was just into the next tax year.
May you make a video on how/how much are we going to be taxed when taking out traditional 401k investment yearly when we withdraw from our retirement account. Also include the tax difference between long term capital gains and regular taxable income.
All withdrawals from a traditional 401K is treated as regular income for tax purposes so, it depends on your total income and deductions. As for Capital Gains vs. "Regular Taxable Income," there is no difference. Capital gains are treated as regular income.
Whats the benefit and/or difference between a fee only advisor and a workplace 401 or 403 advisor? Thank you for your content!
This may sound odd, but I have no one else to ask. I have a credit union account in WA state. (I moved from there a year ago). I just paid off my car loan. Both my paycheck and SS check go there now. But I am thinking that I really should have a local bank account. I thought I could open a local account and have my SS check deposited there. Whenever I retire, I could close out the WA state account. Does that make sense?
For healthcare expensesafter 60 years old, are you saying $150.000 per year? per month? What is the unit of measure there?
Lifetime Healthcare costs
Are you still working with people? I need someone to look at my plan. Hoping to retire in 10 years.
Your coworkers are not your friends. They are continuance.
My best friends in life have been coworkers. I still participate in regular monthly or bi-monthly get togethers with folks I worked with over the years and it is a great boost to my social life.
Azul, can you recommend how to find a fee for service financial advisor?
Can we get a go fund me so Azul can get another jacket that it not blue
What's wrong with blue?? 😂
@@JeffreyFate nothing if he had more than one blue jacket.
At least he's got a selfie stick now, used to make my arms tired just watching his videos.
Don’t retire. You’ll have too much time to nit-pick others.
Azul is Spanish for blue. I think the blue jackets and blue eyes are his signature looks.
I can retire right now, but why should I? I only work about 24 hours per week. My job is easy and I get paid above the median income for a full time worker. Retiring is overrated.
How would you know it's overrated if you haven't done it?
If you're happy working enjoy it.
@@fvvfvbbbb - I know people who have retired and they tell me about it. Of course, yes...there are many who also DON'T regret as well. However, I know quite a few that ended up working part time. So if retiring is so great, why are so many working part time?
The global depression is coming ! You can just forget retirement ! 😮😮😮😮