I actually dramatically over estimated my retirement budget. based on my early retirement spending I should be able to live off of my social security comfortably in few years when i take it.
Finally a positive video...lol . Fear not I retired on less than my former salary and am doing well beyond fine. 62k after taxes and adjusted for Inflation.
I would think what you need to retire is based on where you live - I never see any of these studies incorporate that factor. Of course your habits and what you like to do and how well you budget, etc. etc. also make a difference but that is at individual level and we make assumptions about that for ourselves. But the cost of living based on location is a universal factor.
When I thought about it in terms of ‘stuff’ vs ‘freedom’, I quickly realized how little I could live on. I saw George Carlin’s routine on Stuff, when I was about 6 yo. I saw the treadmill of trading your life for things. I’ve always lived beneath my means and saved whatever I could. Good thing I did, because after being diagnosed with Multiple Sclerosis at age 30, I knew my money making days were limited. I’m happy to say I retired at age 50. And I wasn’t a big corporate executive either. I was a civil servant. So take from this what you will. It’s mostly about choices along the way and finding good information so you make good decisions. Azul, thank you for carrying the torch and providing great information.
Home equity should not be factored into retirement wealth unless you are desperate because you probably do not plan on moving out into a tent and houses can be real hard to get your money out of in a bad downturn. If you only have a million dollars in liquid assets, using the prudent 4% rule that will throw off 40,000 dollars per year. Depending on the socialist security income of you and the old lady, both of them may be enough. However what about if there is a 40% market contraction as in 08. Your million is now 600.000. What if one of you croaks. That is why I think (especially with the massive rate of currency depreciation) you need at least 1.5 million to live a comfortable lifestyle in the U.S..
Home equity is a great asset for retirement. It provides free housing while you live in your home. It will fund the down payment into a retirement community. I am not saying it’s critical for a successful retirement or that it is the best option for everyone but it is part of my plan.
I agree with you, and I have clients that are worried at a million $. but after 30 years, i've realized the greatest determinant of financial success in retirement is spending habits. people who were responsible with spending when working tend to fare pretty well no matter the nest egg, people who weren't have a tougher time no matter the nest egg. good luck with the channel.
Bingo!. Exactly. Well said. I appreciate you. God 1st, always. Happiness is innate. A retired woman(Boomer) here. Happily Debt free. Not broke. Not struggling. No regrets. No stress. Living frugally and a minimalist. Always a saver. Not a spender.🤑 Earned a good income and Saved/Saving my hard earned money.💰 Don’t need $1 million to live comfortably. I’m fortunate to have my employer matched and unmatched retirement accounts, high yield savings, CDs and emergency fund. Not to mention collecting my well earned Social Security benefits I paid into for decades. So I’m set. Even as a retiree I joyfully and successfully saved an additional $20K. God is providing.😊 Today our family of retirees is gratefully blessed, thriving and enjoying a well earned comfortable retirement.
People in my neighborhood are losing their homes because they can no longer afford. Less than average home values...blue- white collar mix Health costs and inflation are crushing retirees who think they can live cheap. Others homes are falling apart with no money for proper maintenance.
I can give a recap from this past year for comparison. I have $2.5 million (100% in income investments) which generates $128k in interest/dividends a year. This past year I only used $33k of my income + Social Security as living expenses & taxes I live as a minimalist, drive a 20yr old truck and have no debt.
I'm expecting to do something similar. Setting up rental units to have something that will keep pace with inflation. Also, moving from a HCOL area to a LCOL area. I don't expect to need than about $4K per month.
It's all about costs we carry into retirement. Some of us will unfortunately take a mortgage with us into retirement. Some of us have disabled children we will support. So many variables when looking at what we need to retire comfortably!
If you have the same amount you retired with 18 years later, isn’t it like your money has dropped by about 50% as inflation has decreased the purchasing power of those dollars?
A pension changes the calculation a lot. I know people who retired on just on social security. and doing ok. A lot of that depends on living in a less expensive part of America.
Also the details of the pension can make a huge difference. I have a small pension which would barely make a difference but it came with healthcare. It made retirement at 59 possible.
I will have SS, Roth, pension, TSP and a separate retirement account. I still worry and play catch up. I don’t want to have less annually than I do now.
Excellent video! That chart around the 8:20 mark just confirms my decision to have the option to retire at 59.5 if I choose to. At my current trajectory I will probably be in the “medium wealth” category according to that chart, and possible just into the next higher category. Either way, I am not going to waste away my “go go years” by embracing a scarcity mindset and “fear” of running out of money. Reading the book “Die with Zero” in the summer of 2023 reality put many things in perspective.
Recently retired and unsure if my 401(k) and IRA will provide a stable future. i need an approach that will align with my risk tolerance and financial goals, i set aside $1m to achieve this. Do you suggest i get into stocks or buy a rental property?
Look up dividend aristocrats. Pick six to ten from that list. Those companies have a track record of 25+ years of paying dividends. Also, it’s advisable you work with a financial advisor to help set up a well-structured portfolio.
I agree. Based on personal experience working with a financįal advisor, I currently have $2 million in a well-diversified portfolio that has experienced exponential growth from when i started. It's not only about having money to invest in, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
I work with Stacy Lynn Staples as my fiduciary advisor. Simply look up the name. You would discover the information you needed to schedule an appointment.
Over $24K goes into rent so I'm unsure if a person can live comfortably with $500K. You don't know about the Stock Market. In the blink of an eye, your $500K can lose 30%.
This is not a good video because there is no discussion as to where someone lives. But much of how much someone needs to retire depnds on WHERE they live. Some states are much more expensive than others with some states costing double for most expenses. And People who live in big expensive cities need a great deal more to retire than people who live in small towns; even if they live in the same state. So this isn't a very good video to ignore location
Perhaps a future video could be to compare what type of retirement could be possible with a set amount of savings in a few different places in the country. That said, there are dozens of factors that make each case different. We should all create our own spreadsheet and weigh different options. My spreadsheet includes columns for all the different types of income and expenses by month until i am 100. I factor in a vehicle purchase every 7 years, the month the mortgage is paid off, major home repairs and so on.
Azul.. Please tell me that is not your wife making all that noise in the background for the love of god... Please stop doing videos where there are people making noise and trains and all the other distractions...
just what the republicans want to hear - SS is TOO generous!!!!!! CUT IT!!!!! send that money to the rich!!!!! so thanks for the average after talking about median - most retirees i know do not have 46,000 in ss every year.
The dishes clanking in the background were very distracting.
I think his wife is trying to send a hint 😅
Didn't bother me much at all.
@@Richard-ht1qk LOL...I thought the same.
🗣🔊..Azul... I love your content....my only complaint is that a lot of your video's has distracting background noises. 😫
I actually dramatically over estimated my retirement budget. based on my early retirement spending I should be able to live off of my social security comfortably in few years when i take it.
Good for you!!!
I retired overseas and live like a king with peanuts and love it !
Where did you retire to?
@pathslesstrampled9906 Can't say my brother
Exactly! That’s the answer. I’m in Porto, Portugal. My expenses are less than $2,000 per month in total!
I think in Asia where costs living is so cheap
@borisdodgingbullets NICE
Finally a positive video...lol . Fear not I retired on less than my former salary and am doing well beyond fine. 62k after taxes and adjusted for Inflation.
I would think what you need to retire is based on where you live - I never see any of these studies incorporate that factor. Of course your habits and what you like to do and how well you budget, etc. etc. also make a difference but that is at individual level and we make assumptions about that for ourselves. But the cost of living based on location is a universal factor.
I have been retired 8 years starting at 63 and could have retired much earlier , I sometimes regret not retiring earlier and moving abroad…
One more time without the background noise ?
Azul, please ask someone to stop doing the dishes while you’re recording
When I thought about it in terms of ‘stuff’ vs ‘freedom’, I quickly realized how little I could live on. I saw George Carlin’s routine on Stuff, when I was about 6 yo. I saw the treadmill of trading your life for things. I’ve always lived beneath my means and saved whatever I could. Good thing I did, because after being diagnosed with Multiple Sclerosis at age 30, I knew my money making days were limited. I’m happy to say I retired at age 50. And I wasn’t a big corporate executive either. I was a civil servant. So take from this what you will. It’s mostly about choices along the way and finding good information so you make good decisions. Azul, thank you for carrying the torch and providing great information.
Home equity should not be factored into retirement wealth unless you are desperate because you probably do not plan on moving out into a tent and houses can be real hard to get your money out of in a bad downturn. If you only have a million dollars in liquid assets, using the prudent 4% rule that will throw off 40,000 dollars per year. Depending on the socialist security income of you and the old lady, both of them may be enough. However what about if there is a 40% market contraction as in 08. Your million is now 600.000. What if one of you croaks. That is why I think (especially with the massive rate of currency depreciation) you need at least 1.5 million to live a comfortable lifestyle in the U.S..
I agree about the home equity not being included. You need to live someplace.
Yes, Azul differentiate bet worth from retirement account. But, the definition of net worth is what you own minus what you owe.
Home equity is a great asset for retirement. It provides free housing while you live in your home. It will fund the down payment into a retirement community.
I am not saying it’s critical for a successful retirement or that it is the best option for everyone but it is part of my plan.
I agree with you, and I have clients that are worried at a million $. but after 30 years, i've realized the greatest determinant of financial success in retirement is spending habits. people who were responsible with spending when working tend to fare pretty well no matter the nest egg, people who weren't have a tougher time no matter the nest egg. good luck with the channel.
Bingo!. Exactly. Well said. I appreciate you. God 1st, always. Happiness is innate. A retired woman(Boomer) here. Happily Debt free. Not broke. Not struggling. No regrets. No stress. Living frugally and a minimalist. Always a saver. Not a spender.🤑 Earned a good income and Saved/Saving my hard earned money.💰 Don’t need $1 million to live comfortably. I’m fortunate to have my employer matched and unmatched retirement accounts, high yield savings, CDs and emergency fund. Not to mention collecting my well earned Social Security benefits I paid into for decades. So I’m set. Even as a retiree I joyfully and successfully saved an additional $20K. God is providing.😊 Today our family of retirees is gratefully blessed, thriving and enjoying a well earned comfortable retirement.
People in my neighborhood are losing their homes because they can no longer afford.
Less than average home values...blue- white collar mix Health costs and inflation are crushing retirees who think they can live cheap. Others homes are falling apart with no money for proper maintenance.
I can give a recap from this past year for comparison. I have $2.5 million (100% in income investments) which generates $128k in interest/dividends a year. This past year I only used $33k of my income + Social Security as living expenses & taxes I live as a minimalist, drive a 20yr old truck and have no debt.
What do you classify as income investments? Rentals? Dividend paying stocks?
I'm expecting to do something similar. Setting up rental units to have something that will keep pace with inflation. Also, moving from a HCOL area to a LCOL area. I don't expect to need than about $4K per month.
@@JBoy340a I invest in Treasury Money Market, CDs, Bonds, Dividend Stocks, and Closed End Income Funds.
It's all about costs we carry into retirement. Some of us will unfortunately take a mortgage with us into retirement. Some of us have disabled children we will support. So many variables when looking at what we need to retire comfortably!
I actually don’t mind the noisy dishes so much…feels like we’re friends of Azul’s, over at his house while his wife gets Christmas dinner ready
If you have the same amount you retired with 18 years later, isn’t it like your money has dropped by about 50% as inflation has decreased the purchasing power of those dollars?
A pension changes the calculation a lot. I know people who retired on just on social security. and doing ok. A lot of that depends on living in a less expensive part of America.
Also the details of the pension can make a huge difference. I have a small pension which would barely make a difference but it came with healthcare. It made retirement at 59 possible.
@@RyanBerich-u1w My pension came with health care too. It made it possible to retire before age 65.
I will have SS, Roth, pension, TSP and a separate retirement account. I still worry and play catch up. I don’t want to have less annually than I do now.
Yea 2.3 mil net worth was my number so I retired at 53 years young, 6 years later my net worth is 3.0 mil despite spending 500k…
Excellent video! That chart around the 8:20 mark just confirms my decision to have the option to retire at 59.5 if I choose to. At my current trajectory I will probably be in the “medium wealth” category according to that chart, and possible just into the next higher category. Either way, I am not going to waste away my “go go years” by embracing a scarcity mindset and “fear” of running out of money.
Reading the book “Die with Zero” in the summer of 2023 reality put many things in perspective.
Recently retired and unsure if my 401(k) and IRA will provide a stable future. i need an approach that will align with my risk tolerance and financial goals, i set aside $1m to achieve this. Do you suggest i get into stocks or buy a rental property?
Look up dividend aristocrats. Pick six to ten from that list. Those companies have a track record of 25+ years of paying dividends. Also, it’s advisable you work with a financial advisor to help set up a well-structured portfolio.
I agree. Based on personal experience working with a financįal advisor, I currently have $2 million in a well-diversified portfolio that has experienced exponential growth from when i started. It's not only about having money to invest in, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.
I work with Stacy Lynn Staples as my fiduciary advisor. Simply look up the name. You would discover the information you needed to schedule an appointment.
I searched her full name online and found her webpage. I emailed to make an appointment to talk with her; hopefully, she gets back to me.
Over $24K goes into rent so I'm unsure if a person can live comfortably with $500K. You don't know about the Stock Market. In the blink of an eye, your $500K can lose 30%.
How much did you retire with? That would be very helpful to know.
Nooooo, I want to retire with more and more and more with what's left of my healthy life!
I really enjoy your videos! I kind of like the dishes!😂
More is better than less. Figure $2M minimum - post tax. 401 a scam as a good chunk goes to the man ...
What are u smoking on? 401 isn't a scam. Taxes aren't bad on 401.
@csick11 At least a third "minimum" is lost to taxes. Roth much better...
Please don't be dumb as take time to educate yourself Mijo ...
Person making background noise apparently doesn't care much about Azul's videos!
This is not a good video because there is no discussion as to where someone lives. But much of how much someone needs to retire depnds on WHERE they live. Some states are much more expensive than others with some states costing double for most expenses. And People who live in big expensive cities need a great deal more to retire than people who live in small towns; even if they live in the same state. So this isn't a very good video to ignore location
Perhaps a future video could be to compare what type of retirement could be possible with a set amount of savings in a few different places in the country.
That said, there are dozens of factors that make each case different. We should all create our own spreadsheet and weigh different options.
My spreadsheet includes columns for all the different types of income and expenses by month until i am 100. I factor in a vehicle purchase every 7 years, the month the mortgage is paid off, major home repairs and so on.
Hey Azul, who would you recommend in the Orlando FL area?
Stay out of Florida, check out Arizona.
Please don't record when there's background noise
I retired without about 900k 5 years ago, have over a million now. Just don't out spend your investment growth.
thanks for not wearing this spotie shirt anymore
Azul.. Please tell me that is not your wife making all that noise in the background for the love of god... Please stop doing videos where there are people making noise and trains and all the other distractions...
You should try to record some place that doesn't have a lot of clattering of dishes in the back ground,
I agree that it's a little distracting but it's free content. He can do whatever he wants at his convenience and we should be thankful.
just what the republicans want to hear - SS is TOO generous!!!!!! CUT IT!!!!! send that money to the rich!!!!! so thanks for the average after talking about median - most retirees i know do not have 46,000 in ss every year.