I can retire at 62 yrs old in 3 yrs with a gov't pension around 72K per yr, social security, 401K in the low 6 figures, Roth ira and savings...My husband retired 3 yrs ago and has close to the same pension numbers I have...We are in NYC in our forever home, however, I still worry some...I do some entrepreneur things and I know it will workout....Funny 😂 All i do is think about retirement planning ✨️💫💫🙏
If all you do is think about retirement planning, then you realize that you are in very good shape financially. You're also cognizant of risk management and various retirement pitfalls. I would suggest spending some time researching/considering the various stages of retirement: you are most active and most healthy in the early years of your retirement. Conversely, you are somewhat restricted as to what you can do when you are older. The value of the dollar goes down as you age, because you simply don't have the wherewithal to enjoy it. Also, you should learn to appreciate that aging is NOT a gradual process. It happens in jumps. You're running/walking, then suddenly find yourself hobbled - perhaps still functional, but distinctly less able than you were before. The same applies to cognitive abilities. Your brain is slowing down and it does so in orders of magnitude at a time. I mention this because these changes will not happen in a manner that you can carefully schedule. When they occur, they will SURPRISE you. So, plan your retirement accordingly.
Retiring at 62 may be challenging for someone without a 401(k),, pension, or significant savings, even if they're earning a high income in their later working years. By retiring early, they risk leaving substantial earnings behind for a relatively small Social Security benefit.
I've been paying into SS for over 40 years, and I'm not waiting any longer to take it. I'm going to claim it early. Now, I'm focused on investing in myself and putting money into the stock market. Over time, I've learned that building real wealth comes from smart investments and having a financial advisor.
Thanks for watching Greg and that's a great point! Learn more about our Finance Fixx program here and join our next pre-retiree session starting TODAY October 7th. Use code PODCAST for a $100 discount. www.financefixx.com/s/
I retired at age 53, so I am in my early 60s. Many of them resisted me because they couldn't understand the idea of not working if it wasn't necessary. I considered the phases of my life. I worked very hard to achieve what I have now, but in my last years, I owe it to myself to "stop and smell the roses." In my instance, I departed the nation after retiring and currently reside in Latin America. It made it possible for me to appreciate my new surroundings while escaping all the bad things that were going on in America. Nobody that I know of regrets retiring has yet to come to me
A very good idea, i haven't consistently contributed to retirement accounts, leaving them with insufficient funds to maintain their desired lifestyle during retirement
The avg. American is having a tough time, I know I am not alone. There are others in same position as me. By certain statistics: 22% of americans have no retirement savings. 64% are worried that they will not have money in latter years while 47% of adults who are not yet retired think they have to work part-time in retirement. How can I best grow the 100k I have saved seperately outside retirement access which of course had depleted over the years?
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I completely agree; I am in my mid 40s, approaching retirement, and have approximately over 2million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
Thank you for the question! Learn more about our Finance Fixx program here and join our next pre-retiree session starting October 7th. Use code PODCAST for a $100 discount. www.financefixx.com/s/
Can you do a podcast specific to those of us that do not have children or relatives left. My husband and I talk about this non stop and are freaked out in our early 70’s.
This stuff should be taught in school. Many won’t take it seriously, but at least the concept of time value of money might excite some to prepare and take care of themselves.
I am a long time RN, people are living longer but quality of life is worse. One of our docs offered a 99 yo dialysis. Luckily his daughter asked me and I told her what thought. The physician was so upset at me. I told him to pound sound. He makes money keeping this guy going and wasting Medicare dollars. I would never ever recommend my family member Dialysis unless there was something specific ie they were a caretaker for a spouse or they didn’t have a will. Dialysis is extremely hard it is like going to boot camp it is not to be taken lightly and it is tough. A lot of people have little support or really don’t what to do financially, physically, or emotionally.
I see it all the time at the bedside as well... most often it's the families that won't let go. I think there should be a rating system to determine when it's really even appropriate to continue being full code.
The problem starts with spending too much and not saving early enough. Time Value of Money - compounding interest needs to be a competency taught in high schools.
Here is the deal: I don't have a car. I don't have cable or any streaming services or subscriptions. I never eat out -- breakfast, lunch, or dinner. I don't drink anything but water --- ever. I don't gamble, smoke, or do any drugs. I don't go on vacations. No coffee or booze, as noted earlier. I don't use the internet to buy anything -- ever. Practice this and you can easily live off of about 20k a year. Practice this, and truly retire early or retire stress free. What I do: Library, outdoor exploring/hiking, Reading, Exercise, Cook, Love, and Tennis.
@@Kindlelover88 - Thank you, Ms. Kindle. I've never really traveled, but have lived in 4 different states (AZ, FL, GA, NJ). I think it takes a solid year to really understand a new culture, so I enjoyed it.
Do you own a home? Can't see this working for a renter in most places. My insurance and property taxes cost $4k/year. But a similar rental would be $20k.
I need a way to draw up a plan to set up for retirement while still earning passive income to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket. i want to invest around $250K savings.
Don't put all your eggs in one basket; instead, diversify into different asset classes to mitigate risk. If you lack extensive knowledge, consult a financial advisor.
When you talk about cash bucket. Where do you keep your cash bucket? And if you don’t have the cash when you retire do you take it from your 401 K and do something with it?
We're showing our age because I too remember Jean's articles in Money magazine. Money and Kiplinger's, my how the times have changed, I wish we had UA-cam back in the 80's/90's, the only way to learn about personal finance back in the day was through magazines and books.
And the only people being compensated during this inflation are the corporations making record profits the stock BuyBacks and CEOs whether they are successful or not getting gigantic payouts
I have saved and saved for retirement but what’s going on with inflation and interest rates in this horrible economy has really shaken me up. How to plan when we are seeing things that could happen knowing our savings might not be enough…I am angry at these politicians for running our systems into the ground. I am convinced they want us all poor and dependent.
It's the standard of living that many pursue beyond their means. It's not easy to live a simple life in materialistic America but when you find it you're much happier and often get the bonus of being able to continue it comfortably through retirement.
And all of this being cut from workers and this be moved to the financial sector was purposeful. The ability of pensions to be wiped out by their employers the ability of employers to not have to carry the pension load was about corporate profit and it still is. Also workers have not been making significant gains against inflation and cost of living whereas CEOs make thousands times with their workers are making... The end of the day it's about greed. I chuckle every time I hear Trump say he's not going to text social security what he doesn't follow up with is that they would love to raise the retirement age into the seventies. In my state I have a great pension unfortunately every year the Republicans try to dig into my pension as if it's their money... It's not their money it's part of my compensation package.
Companies have gone bankrupt and their pensions have gone belly up. So, it is safer for the employees to manage their own retirement plans. The companies typically contribute to the plans and there is no risk of the money appearing if the company dissolves. Has nothing to do with Trump and Republicans, who have been sounding the alarm bells that the government will be going bankrupt due to all the waste, fraud, and abuse. Can't wait for DOGE to clean out the swamp!!
Book needs to be written on the (scam) "long-term care" insurance plans / cos. This industry needs massive fed. govt. oversight / standardization / regulation.
It's wild to think that so many over 50 have zero retirement savings! What do you all think about this crisis? Is it poor planning, or are we just not educated enough?🤔💔
Retirement becomes truly rewarding when you have two key components: a solid financial foundation and a clear sense of purpose. Making wise investment decisions is crucial to achieving strong returns and enjoying a secure retirement.
Legalized welfare. I'm taking mine since I was 63 after working 52 years paying into the system I want something to show for all the years I've paid into the system. This is the way I see this program.
I drove a old car for over fifteen years and repaired it myself. I purchases a home I could easily afford and choose not to have kids. This is a big one but was easy for me as I don't want them. I retired in 2019 from my IT job with no pension at 53 and when I retired I had 1.25M. Five years latter I have 1.6M while drawing 35k a year to live. Next year at fifty nine and a half I'll be able to draw just the the dividends from my IRA's of 20k which I honestly don't need now. I plan on taking social security at 67 unless anything changes which is about 2500 per month but should be higher when I do start with COLA's. No doubt one has to sacrifice more today than when I began saving for my early retirment in the late 80's but it can still be done if you are willing to do the opposite of typical society.
@boboterp2122 Remember, we all don't look at life through the same lens. Being early retired, I greatly enjoy my solitude during the day. I have two 🐕 I walk everyday that are my children, I will say. All they want is a little food, water and walk and cuddles and they are happy. When I die I want all my money to benefit proper animal charities.
I’ll be 61 next week, dink have a lot in my 403b and Roth. Small pension since I’ve only been at my current job for 4 and a half years. I’ll probably need to work until 70.
I am currently in my 50s and This is no time to taper retirement savings. I want to max out my retirement contributions and I also have another $200k in a savings account that i want to invest in a non-retirement account. Where should I invest it now?
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert
Many people don't want to be responsible adults, because it's harder than playing perpetual children and demanding care. There is no cure for that, other than letting them live with consequences as a lesson for others.
I just got fired, and I'm 39 years old. Now that I have 425K saved for an early retirement at age 50, 10K in an HSA, and a property that could yield an extra 200K, what possibilities do I have for a steady stream of income?
Is it time for a career shift or should I consolidate my investments into a single account? If I go for the latter, how do I do it right, and what could be the drawbacks? Plus, with a $200K property sale on the horizon, should I combine my investments or diversify them across different markets?
Make finding a new job your job. Doing just fine with 425k saved at this point. Your income is your greatest wealth building tool. Invest the excess consistently into a balanced portfolio, not taking big downside hits, and keep at it.
I find it unfortunate that we seem stuck with the anachronistic “4% rule.” 1. The creator of this “rule” (i.e., guideline) based this metric on a specific percentage of stocks and bonds and assumed 30 years of withdrawals starting in the 1990s. 2. Practically nobody withdraws or spends at a fixed rate over decades. 3. Social Security benefits form no part of the rule. 4. The creator of the rule is now saying something like “4.75%”.
The trinity study is based on covering expenses after social security, pensions etc and inflation adjusting withdrawals every year. Social security simply reduces the amount of t you have to cover with withdrawals. Also, no one rides the 4% rule into the ground if your investments tank, people adjust.
One of my siblings is in this boat. They have an unrealistic "plan" to just keep working to age 70. Even then, they are several hundred grand away from a reasonable retirement. Also not very flexible regarding moving away from HCOL area.
Perfect timing. Open a ROTH and max out contributions in addition to your 401k up to the match. You can't pull from ROTH for 5 years after opening it, so the timing will work well for you.
Hi Christy, we would love for you to join us for our investing club, Investing Fixx. Here's a link to join and your first month is free! bit.ly/46LYWVT
59 1/2 comes shortly for my retire spouse...I still work. We are planning to do roth conversion until 24% tax bracket caps for a few years till we empty his 401k all the way over to roth and let that money grow for a while. The question for us is can I begin converting as well while still working to Roth at 591/2 which happen next year for me. I still work and contribute to my 401k and gather match.....but while working would love to begin converting down balances from 401k to roth as well pre retirement. Need to work till 63 1/2 to get cobra till Medicare coverage for healthcare. Any idea if that is doable out of secure 2.0 act?
And the only problem with trying to get ACA subsidies when converting to ROTH is you will have too much taxable income to get the subsidy. We plan to hold off on converting any money to ROTH while we are trying to get ACA insurance/subsidy, and move it all over the two years after we both get Medicare when our income will be at the lowest point for taxation purposes. It will be especially helpful if we don't have tax on SS by then!!
Pensions still exist. 401k with and without matching Roth IRA, SEP Ira, etc. People have to educate themselves and actually save and invest. Do it. Get started. Stop making excuses. Live on less and save the difference.
Most cash poor people who don't have retirement savings never had any savings or a decent lifestyle to begin with or they would not end their careers broke/poor. They can keep working or go live with their kids or a friend. Their retirement lifestyle won't be much worse than their low standard of living thru their adult life. It's what they are use to.
The GOP wants to get it they want to raise the retirement rate and I don't know that Trump will ever deliver on any promises he's made since we're still waiting 9 years later for his monumental healthcare plan that was going to be so much better than ACA
@@checkit4779you are correct every year locally our state Republicans want to go into my retirement fund and read it even though it's my benefited money not their piggy bank. My state has one of the best pension funds and it's amazing and well-organized and yet they continue to try to gain access to it and pretty much dismantle it.
There is NO EXCUSE w the technology and knowledge out there about retirement, there should be no one NOT educated on it. That is just pure laziness and I’m a baby boomer. I don’t feel sorry for people who are not prepared. I understand some people may have had it hard but so many people living materialistic lives and NOT saving for the future.
Wow, do you have an ounce of empathy? Lots of boomers have taken care of everyone, unlike the kids of today (not all). I wish you would rethink your comment and look for a way to help folks that are not as savvy as you.
Just look how much people spend at Christmas even though they can’t afford it. I just don’t understand this way of thinking. I spend slightly more at Christmas. Certainly no extravagant gifts.
My siblings and I were raised the same. 3 of us will be able to retire. The one who was the biggest spender but makes at least twice what we make, will never be able to retire. The one who made minimum wage and has ADHD and dyslexia is already a millionaire. No excuses.
Let me just say that under a certain amount of money in this country there should be minimal taxation considering the multi-millionaires and billionaires running around pay nothing
I plan to retire or reduce my work hours in five years, and I'm interested in how others allocate their income between savings, spending, and investments. I currently earn about $175K annually but haven't built up much in savings so far.
Financial Analyst say Living Longer is problem like that is a Bad thing? That is easily fixed? Start smoking, don't wear seat belt? Swim with sharks, Skydive w/o parachute? Longer life shud not be a Bad news thing? Living Longer shud be Good?
Sounds like I should have been dead last year. A small business owner with no plans for retirement. There are millions of us by the way. Too many people drank the corporate Kool-Aid in their early years and then got downsized and outsized in their 50s.
You won't have a pension, but you can still save a ton of money with compound interest. Start early and invest EVERY payday at least a little. It will add up over time!
“Blind sided”. A generation of adults that lived their whole lives predominately through the most prosperous time in American history. 😂 Boo friggen’ hoo 😢
Thank you for the interview! For the Q & A could you please explain/advice where to put cash now that interest rate is dropping? When financial advisors say « hold cash » in the first bucket, does that include ultra- short bonds? How do treasury bills differ from treasury notes, and government bonds? Thanks!
Treasury Bills are bought at a discount and you get the interest at maturity by getting paid back the t-bill at face value. For example, you buy a one year $1,000 t-bill for $950. After the t-bill matures in one year you are paid $1,000. A Treasury Note is longer in duration than a t-bill, so instead of buying at a discount, you buy at face value and get paid interest semiannually. A $1,000 five year treasury note purchased at 4% will pay $20 every six months until maturity.
Thank you for the question! We did an episode all about Certificates of Deposit. Here's the link: hermoney.com/save/banking/what-are-certificates-of-deposit-the-top-5-questions-people-are-asking-podcast/
I can retire at 62 yrs old in 3 yrs with a gov't pension around 72K per yr, social security, 401K in the low 6 figures, Roth ira and savings...My husband retired 3 yrs ago and has close to the same pension numbers I have...We are in NYC in our forever home, however, I still worry some...I do some entrepreneur things and I know it will workout....Funny 😂 All i do is think about retirement planning ✨️💫💫🙏
I’m 54 and want to retire now but can’t until I’m 62 and all I do is think about retirement and retirement planning😂
This is amazing Brigitte! Thank you for sharing and for watching the episode.
@@Kindlelover88 I understand 🫢🤣 Just keep planning and enjoy everyday to the fullest 🎉🎉🎉 It goes faster than you think 🧐
If all you do is think about retirement planning, then you realize that you are in very good shape financially. You're also cognizant of risk management and various retirement pitfalls.
I would suggest spending some time researching/considering the various stages of retirement: you are most active and most healthy in the early years of your retirement. Conversely, you are somewhat restricted as to what you can do when you are older. The value of the dollar goes down as you age, because you simply don't have the wherewithal to enjoy it.
Also, you should learn to appreciate that aging is NOT a gradual process. It happens in jumps. You're running/walking, then suddenly find yourself hobbled - perhaps still functional, but distinctly less able than you were before. The same applies to cognitive abilities. Your brain is slowing down and it does so in orders of magnitude at a time. I mention this because these changes will not happen in a manner that you can carefully schedule. When they occur, they will SURPRISE you. So, plan your retirement accordingly.
You are fine
Retiring at 62 may be challenging for someone without a 401(k),, pension, or significant savings, even if they're earning a high income in their later working years. By retiring early, they risk leaving substantial earnings behind for a relatively small Social Security benefit.
I've been paying into SS for over 40 years, and I'm not waiting any longer to take it. I'm going to claim it early. Now, I'm focused on investing in myself and putting money into the stock market. Over time, I've learned that building real wealth comes from smart investments and having a financial advisor.
Thanks for watching Greg and that's a great point! Learn more about our Finance Fixx program here and join our next pre-retiree session starting TODAY October 7th. Use code PODCAST for a $100 discount. www.financefixx.com/s/
I retired at age 53, so I am in my early 60s. Many of them resisted me because they couldn't understand the idea of not working if it wasn't necessary. I considered the phases of my life. I worked very hard to achieve what I have now, but in my last years, I owe it to myself to "stop and smell the roses." In my instance, I departed the nation after retiring and currently reside in Latin America. It made it possible for me to appreciate my new surroundings while escaping all the bad things that were going on in America. Nobody that I know of regrets retiring has yet to come to me
A very good idea, i haven't consistently contributed to retirement accounts, leaving them with insufficient funds to maintain their desired lifestyle during retirement
Retired military, went on to complete a second career, maxed out 401k and opened a Roth. Life is good.
Same
The avg. American is having a tough time, I know I am not alone. There are others in same position as me. By certain statistics: 22% of americans have no retirement savings. 64% are worried that they will not have money in latter years while 47% of adults who are not yet retired think they have to work part-time in retirement. How can I best grow the 100k I have saved seperately outside retirement access which of course had depleted over the years?
It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I completely agree; I am in my mid 40s, approaching retirement, and have approximately over 2million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.
Thank you for the question! Learn more about our Finance Fixx program here and join our next pre-retiree session starting October 7th. Use code PODCAST for a $100 discount. www.financefixx.com/s/
Can you do a podcast specific to those of us that do not have children or relatives left. My husband and I talk about this non stop and are freaked out in our early 70’s.
This is a great idea for an episode! We will look into this topic more, thank you for the suggestion.
This stuff should be taught in school. Many won’t take it seriously, but at least the concept of time value of money might excite some to prepare and take care of themselves.
We totally agree! That's what the HerMoney community is here for. :)
I am a long time RN, people are living longer but quality of life is worse. One of our docs offered a 99 yo dialysis. Luckily his daughter asked me and I told her what thought. The physician was so upset at me. I told him to pound sound. He makes money keeping this guy going and wasting Medicare dollars. I would never ever recommend my family member Dialysis unless there was something specific ie they were a caretaker for a spouse or they didn’t have a will. Dialysis is extremely hard it is like going to boot camp it is not to be taken lightly and it is tough. A lot of people have little support or really don’t what to do financially, physically, or emotionally.
Thank you for listening to the episode and for your insight!
I see it all the time at the bedside as well... most often it's the families that won't let go. I think there should be a rating system to determine when it's really even appropriate to continue being full code.
Suggesting a 90 yr old to go on dialysis is purely evil 😢
@@newmoon1953 ...even worse for a 99 year old.
Good for you! We need more health care providers like you!
The problem starts with spending too much and not saving early enough. Time Value of Money - compounding interest needs to be a competency taught in high schools.
Delayed gratification needs to be taught as well.
Here is the deal: I don't have a car. I don't have cable or any streaming services or subscriptions. I never eat out -- breakfast, lunch, or dinner. I don't drink anything but water --- ever. I don't gamble, smoke, or do any drugs. I don't go on vacations. No coffee or booze, as noted earlier. I don't use the internet to buy anything -- ever. Practice this and you can easily live off of about 20k a year. Practice this, and truly retire early or retire stress free. What I do: Library, outdoor exploring/hiking, Reading, Exercise, Cook, Love, and Tennis.
WOW you are so disciplined. I can do most of this but vacations/travel. I HAVE to travel, but other than that great list!
@@Kindlelover88 - Thank you, Ms. Kindle. I've never really traveled, but have lived in 4 different states (AZ, FL, GA, NJ). I think it takes a solid year to really understand a new culture, so I enjoyed it.
Do you own a home? Can't see this working for a renter in most places. My insurance and property taxes cost $4k/year. But a similar rental would be $20k.
@@fdm2155 - 1000$ rent.
That’s great. Every person must decide on their financial priorities.
I need a way to draw up a plan to set up for retirement while still earning passive income to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket. i want to invest around $250K savings.
Don't put all your eggs in one basket; instead, diversify into different asset classes to mitigate risk. If you lack extensive knowledge, consult a financial advisor.
When you talk about cash bucket. Where do you keep your cash bucket? And if you don’t have the cash when you retire do you take it from your 401 K and do something with it?
Thanks for a great conversation!
@@pamelajoy67 Thanks for tuning in!
Wow, I just found you on this video. I remember reading all your stuff on Money magazine.
@@cbickel2009 Thank you for tuning in!
We're showing our age because I too remember Jean's articles in Money magazine. Money and Kiplinger's, my how the times have changed, I wish we had UA-cam back in the 80's/90's, the only way to learn about personal finance back in the day was through magazines and books.
@@TheGoldenAgeofHardRock That’s awesome, we’re so glad you found HerMoney!
Another important step is to know absolutely how much you spend monthly, yearly. Track spending.
Decades of wage suppression, pensions disappearing, inflation rising.
And the only people being compensated during this inflation are the corporations making record profits the stock BuyBacks and CEOs whether they are successful or not getting gigantic payouts
I have saved and saved for retirement but what’s going on with inflation and interest rates in this horrible economy has really shaken me up. How to plan when we are seeing things that could happen knowing our savings might not be enough…I am angry at these politicians for running our systems into the ground. I am convinced they want us all poor and dependent.
It's the standard of living that many pursue beyond their means. It's not easy to live a simple life in materialistic America but when you find it you're much happier and often get the bonus of being able to continue it comfortably through retirement.
There is an Our Rich Journey video that say Japan has a cultural mindset that is not materialistic and on average save 39% of their income.
Majority of employees in the US have never had defined benefit pensions. Let's not airbrush the past.
And all of this being cut from workers and this be moved to the financial sector was purposeful. The ability of pensions to be wiped out by their employers the ability of employers to not have to carry the pension load was about corporate profit and it still is. Also workers have not been making significant gains against inflation and cost of living whereas CEOs make thousands times with their workers are making... The end of the day it's about greed. I chuckle every time I hear Trump say he's not going to text social security what he doesn't follow up with is that they would love to raise the retirement age into the seventies. In my state I have a great pension unfortunately every year the Republicans try to dig into my pension as if it's their money... It's not their money it's part of my compensation package.
Companies have gone bankrupt and their pensions have gone belly up. So, it is safer for the employees to manage their own retirement plans.
The companies typically contribute to the plans and there is no risk of the money appearing if the company dissolves.
Has nothing to do with Trump and Republicans, who have been sounding the alarm bells that the government will be going bankrupt due to all the waste, fraud, and abuse.
Can't wait for DOGE to clean out the swamp!!
Nice content. So how much is the "rule of thumb" amount one should put away for LT care if one decides to do it on your own and not buy LTI?
Relative just decided to move to assisted living facility with medication management. Projected cost: $10K/month.
Book needs to be written on the (scam) "long-term care" insurance plans / cos. This industry needs massive fed. govt. oversight / standardization / regulation.
Say more. I'd like to understand these plans
@@zeldat6654 speaks for itself
It's wild to think that so many over 50 have zero retirement savings! What do you all think about this crisis? Is it poor planning, or are we just not educated enough?🤔💔
Living beyond their means. Look at their credit cards.
Retirement becomes truly rewarding when you have two key components: a solid financial foundation and a clear sense of purpose. Making wise investment decisions is crucial to achieving strong returns and enjoying a secure retirement.
Jean:
Remember you from your Today’s Days!
Wife and I have 5-Rental Houses and her 401K!
We would make you proud of us!
We love to hear this! Thank you for following HerMoney :)
Legalized welfare. I'm taking mine since I was 63 after working 52 years paying into the system I want something to show for all the years I've paid into the system. This is the way I see this program.
If the average life expectancy is 73, why am I'm supposed to save for 30 years? Is that an error? If not I'm 64 and might as well retire tomorrow
Life expectancy is more like 85.
Life expectancy at birth is mid 70s. You’ve survived to 64, so now it’s mid 80s. Every year you survive extends your life expectancy.
I drove a old car for over fifteen years and repaired it myself. I purchases a home I could easily afford and choose not to have kids. This is a big one but was easy for me as I don't want them. I retired in 2019 from my IT job with no pension at 53 and when I retired I had 1.25M. Five years latter I have 1.6M while drawing 35k a year to live. Next year at fifty nine and a half I'll be able to draw just the the dividends from my IRA's of 20k which I honestly don't need now. I plan on taking social security at 67 unless anything changes which is about 2500 per month but should be higher when I do start with COLA's. No doubt one has to sacrifice more today than when I began saving for my early retirment in the late 80's but it can still be done if you are willing to do the opposite of typical society.
Sad. No family to enjoy your spoils with or leave for their futures.
@boboterp2122 Remember, we all don't look at life through the same lens. Being early retired, I greatly enjoy my solitude during the day. I have two 🐕 I walk everyday that are my children, I will say. All they want is a little food, water and walk and cuddles and they are happy. When I die I want all my money to benefit proper animal charities.
I find it sad when patients are in the hospital with no one to care for them. We all make choices.
I’ll be 61 next week, dink have a lot in my 403b and Roth. Small pension since I’ve only been at my current job for 4 and a half years. I’ll probably need to work until 70.
I am currently in my 50s and This is no time to taper retirement savings. I want to max out my retirement contributions and I also have another $200k in a savings account that i want to invest in a non-retirement account. Where should I invest it now?
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert
Find something to flip when you retire. Big or small, It’s fun and lucrative.
Her “baby girl”voice is very grating
Many people don't want to be responsible adults, because it's harder than playing perpetual children and demanding care. There is no cure for that, other than letting them live with consequences as a lesson for others.
I just got fired, and I'm 39 years old. Now that I have 425K saved for an early retirement at age 50, 10K in an HSA, and a property that could yield an extra 200K, what possibilities do I have for a steady stream of income?
It’s reasonable to consider getting a financial advisor now, but delaying retirement might be a wiser choice
Is it time for a career shift or should I consolidate my investments into a single account? If I go for the latter, how do I do it right, and what could be the drawbacks? Plus, with a $200K property sale on the horizon, should I combine my investments or diversify them across different markets?
Make finding a new job your job. Doing just fine with 425k saved at this point. Your income is your greatest wealth building tool. Invest the excess consistently into a balanced portfolio, not taking big downside hits, and keep at it.
Thanks for the great question! We are planning another episode and we will answer it then.
When you say you just got fired are you saying like from a job or you just f.i.r.e.d.??
And everyone is critical of annuities which can replace a pension
Because annuities are an extremely expensive way to mitigate risk.
Except for the fixed annuity ❤
@@HungNguyen-se8dn A very expensive way to get a fixed stream of income.
I find it unfortunate that we seem stuck with the anachronistic “4% rule.” 1. The creator of this “rule” (i.e., guideline) based this metric on a specific percentage of stocks and bonds and assumed 30 years of withdrawals starting in the 1990s. 2. Practically nobody withdraws or spends at a fixed rate over decades. 3. Social Security benefits form no part of the rule. 4. The creator of the rule is now saying something like “4.75%”.
The trinity study is based on covering expenses after social security, pensions etc and inflation adjusting withdrawals every year. Social security simply reduces the amount of t you have to cover with withdrawals. Also, no one rides the 4% rule into the ground if your investments tank, people adjust.
One of my siblings is in this boat. They have an unrealistic "plan" to just keep working to age 70. Even then, they are several hundred grand away from a reasonable retirement. Also not very flexible regarding moving away from HCOL area.
Some learn the hard way
I am 60, multiple medical issues are forcing me to retire two years early. Fortunately I have enough.
I still have 5 yrs before early retirement i have 401 K 19 yrs employer but dont know how to invest
Hi Christy, check out our Investing club Investing Fixx, the first month is on us! portal.investingfixx.com/s/
Go to Fidelity and discuss your situation. They can help and for a fee, they will handle investing for you.
Perfect timing. Open a ROTH and max out contributions in addition to your 401k up to the match. You can't pull from ROTH for 5 years after opening it, so the timing will work well for you.
Hi Christy, we would love for you to join us for our investing club, Investing Fixx. Here's a link to join and your first month is free! bit.ly/46LYWVT
59 1/2 comes shortly for my retire spouse...I still work. We are planning to do roth conversion until 24% tax bracket caps for a few years till we empty his 401k all the way over to roth and let that money grow for a while. The question for us is can I begin converting as well while still working to Roth at 591/2 which happen next year for me. I still work and contribute to my 401k and gather match.....but while working would love to begin converting down balances from 401k to roth as well pre retirement. Need to work till 63 1/2 to get cobra till Medicare coverage for healthcare. Any idea if that is doable out of secure 2.0 act?
Thank you for the question! We’ll answer it on an upcoming mailbag episode.
@@HerMoney Much appreciated, I look forward to seeing that one.
Look at Obamacare as an option versus Cobra. May be less expensive and allow you to retire earlier.
Don't forget, you can contribute to HIS ROTH and yours, even if he is retired, as long as you have taxable income.
And the only problem with trying to get ACA subsidies when converting to ROTH is you will have too much taxable income to get the subsidy.
We plan to hold off on converting any money to ROTH while we are trying to get ACA insurance/subsidy, and move it all over the two years after we both get Medicare when our income will be at the lowest point for taxation purposes.
It will be especially helpful if we don't have tax on SS by then!!
It’s not hard, what is your total retirement expenses, what is your retirement income, what is the delta, if any….figure for inflation
Most people have only a vague idea of what their current/retirement expenses actually are. They just spend what they make.
Pensions still exist.
401k with and without matching
Roth IRA, SEP Ira, etc.
People have to educate themselves and actually save and invest.
Do it. Get started. Stop making excuses.
Live on less and save the difference.
Most cash poor people who don't have retirement savings never had any savings or a decent lifestyle to begin with or they would not end their careers broke/poor. They can keep working or go live with their kids or a friend. Their retirement lifestyle won't be much worse than their low standard of living thru their adult life. It's what they are use to.
Congress will fix SS, too many voters rely on it
Congress will kick the can down the road. There is no fix.
If the GOP get in there they will take the money.
The GOP wants to get it they want to raise the retirement rate and I don't know that Trump will ever deliver on any promises he's made since we're still waiting 9 years later for his monumental healthcare plan that was going to be so much better than ACA
@@checkit4779you are correct every year locally our state Republicans want to go into my retirement fund and read it even though it's my benefited money not their piggy bank. My state has one of the best pension funds and it's amazing and well-organized and yet they continue to try to gain access to it and pretty much dismantle it.
There is NO EXCUSE w the technology and knowledge out there about retirement, there should be no one NOT educated on it. That is just pure laziness and I’m a baby boomer. I don’t feel sorry for people who are not prepared. I understand some people may have had it hard but so many people living materialistic lives and NOT saving for the future.
Wow, do you have an ounce of empathy? Lots of boomers have taken care of everyone, unlike the kids of today (not all). I wish you would rethink your comment and look for a way to help folks that are not as savvy as you.
Just look how much people spend at Christmas even though they can’t afford it. I just don’t understand this way of thinking. I spend slightly more at Christmas. Certainly no extravagant gifts.
@@denisesmith9240yes they have bought their children a car etc and not taught them how to save.
@@denisesmith9240 always excuses! Excuses excuses excuses while they spend lavishly giving and spoiling there kids
My siblings and I were raised the same. 3 of us will be able to retire.
The one who was the biggest spender but makes at least twice what we make, will never be able to retire.
The one who made minimum wage and has ADHD and dyslexia is already a millionaire.
No excuses.
Let me just say that under a certain amount of money in this country there should be minimal taxation considering the multi-millionaires and billionaires running around pay nothing
Poor people don't create jobs. Don't demonize rich people. The top 10% pay 90% of all the tax revenue.
I plan to retire or reduce my work hours in five years, and I'm interested in how others allocate their income between savings, spending, and investments. I currently earn about $175K annually but haven't built up much in savings so far.
Live very frugally for the years until you retire. Pay off all debts and invest every penny left over.
Financial Analyst say Living Longer is problem like that is a Bad thing? That is easily fixed? Start smoking, don't wear seat belt? Swim with sharks, Skydive w/o parachute? Longer life shud not be a Bad news thing? Living Longer shud be Good?
retirement planning vs declining faculties
Sounds like I should have been dead last year. A small business owner with no plans for retirement. There are millions of us by the way. Too many people drank the corporate Kool-Aid in their early years and then got downsized and outsized in their 50s.
What is this "Pension" you speak of? Very, very, few people in Gen X and younger have a pension. Thanks Federal Government!
You won't have a pension, but you can still save a ton of money with compound interest. Start early and invest EVERY payday at least a little. It will add up over time!
They want to keep people working that’s why they got rid of the pension.
Christine Benz was hot 20 years ago.
“Blind sided”. A generation of adults that lived their whole lives predominately through the most prosperous time in American history. 😂
Boo friggen’ hoo 😢
Thank you for the interview! For the Q & A could you please explain/advice where to put cash now that interest rate is dropping?
When financial advisors say « hold cash » in the first bucket, does that include ultra- short bonds?
How do treasury bills differ from treasury notes, and government bonds?
Thanks!
Treasury Bills are bought at a discount and you get the interest at maturity by getting paid back the t-bill at face value. For example, you buy a one year $1,000 t-bill for $950. After the t-bill matures in one year you are paid $1,000.
A Treasury Note is longer in duration than a t-bill, so instead of buying at a discount, you buy at face value and get paid interest semiannually. A $1,000 five year treasury note purchased at 4% will pay $20 every six months until maturity.
Why would anyone buy a t bill. Money is debasing and you are losing value every day
Thank you for the question! We did an episode all about Certificates of Deposit. Here's the link: hermoney.com/save/banking/what-are-certificates-of-deposit-the-top-5-questions-people-are-asking-podcast/
Taxes are the devil!