Will You Run Out Of Money in Retirement?! What Most People Miss.
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- Опубліковано 27 вер 2024
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3) Please note that some people call themselves "fee-based". This is NOT the same as fee-only. Fee-only advisers have committed to being fiduciary to you 100% of the time.
4) Personally, I would only hire an adviser who is a fiduciary to me 100% of the time. This is not a suggestion on what you should do. Just sharing my personal preference.
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Be careful of scammers. In the comments section, I will NEVER ask you to contact me, offer any investment products, recommend a stock broker, or anything similar. Some scam bot commenters 'ask' for investment help, and later, other comment bots reply with "how great X idea/investment/person is" in the replies. These are scam threads. Do not fall for them.
🚨 Azul's VIDEOS ARE NOT FINANCIAL ADVICE (Disclaimer) 🚨
This information is only provided as an informational resource and should not be viewed as investment advice or recommendations. To get professional financial advice from a fee-only financial advisor near you, please visit www.napfa.org.
The decisions on how to invest, when to retire, and other financial planning topics are some of the most important financial decisions you will make in your life. I urge you to seek professional financial advice as you make this decision. Ideally, from a financial adviser, AND a CPA AND an attorney. Having the perspective of all three professions will help you make the right decision for you and your family.
This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and may NOT be suitable for all investors.
This information is NOT intended to, and should NOT, form a primary basis for any investment decision that you may make. Always consult your own legal, tax, and/or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.
Spoiler Alert: There are no "get rich" programs. Rather, just basic blocking & tackling and putting in time and care. Do your homework, choose wisely and (IMHO) work with experienced professionals who are fiduciary to you 100% of the time.
040B{TN}NE Will You Run Out Of Money in Retirement What Most People Miss
The thought of retirement makes me cry. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you weren't to blame for.it's especially difficult for people who are retired.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my portfolio this red season. I’ve made over $250k since then.
Glad to have stumbled on this conversation. Please can you leave the info of your investment advisor here? I’m in dire need for one.
Finding financial advisors like Melissa Terri Swayne 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.
Found her, I wrote her an email and scheduled a call, hopefully she responds, I plan to start the year on a woodnote financially..
Don’t be the richest one in the cemetery.
I like that …
One of the best things you can do to avoid running out of money in retirement is to have a lot of money.
Every thing you say is true. My Mom is 98, and any savings have all diminshed. And another thing about living a long time, is that the adult
"kids" are senior citizens themselves. By a very old age you need help, maybe assisted living, and lots of hospital situations.
Beware of annuities. Most have high loads and fees (not worth it!), and the interest rate assumptions are usually quite low. And if the rate is variable, the value of the annuity can go down - this contradicts the purpose of having guaranteed income. Better to keep your money in a properly balanced allocation and carefully manage the withdrawal rate.
Annuities are another example of unprepared retirees paying a big premium to have a little reassurance.
Historically speaking Bitcoin doesnt do much immediately after the halving - but it does do impressive spikes and tops out around 18 or so months afterwards. No one can time the market, but I'd say it's worth considering entering a position at current prices and if further dips occur, just add to your position. Over the long run, there is a higher probability to the upside than the downside, .It's not about guessing the market's next move; it's about playing it smart and steady during trading...managed to grow a nest egg of around 2.4Bitcoin to a decent 18Bitcoin in the space of a few months... I'm especially grateful to Kerrie Farrell, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape...
I appreciate the professionalism and dedication of the team behind Kerrie’s trade signal service...
On the grand scheme of things, once you understand the potential of trad!ng, you can bet on it but I think people need the education to fully understand...
This is exactly what Big time investors are talking about, not just you. key thing here is to always trades with a good strategy even if the price goes up or down...
Access to good information is what we investors needs to progress financially and generally in life. this is a good one and I appreciate..
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing..
My grandmother lived to 104. She did out live most of her money. She had a heart attack at age 95. Up until then she was enjoying all of her money in a nice independent living facility. Thankfully we found a good nursing home she spent her remaining years at. It was based on her income and subsidized.
I’d rather have everyone enjoy their money while they are healthy. I do not plan on leaving my daughter any of my money, I want to enjoy it.
Tina and Norm (British Canadian couple) from the *This Is Our Retirement* channel sold their house and allocated $25K CAD for travel a year and have posted a short that their money continues to grow in their retirement.
Tina and Norm are GREAT. Their experience is not unusual. BlackRock did a study that showed over 50% of people they surveyed still had the dollar amount they retired with or more after 18 years! Thanks John for brining this idea up here in the comments. 🙏 Azul
Great topic. I just wonder how real the risk is. How many retirees have actually run out of money in the past? Is there information on that?
Today, one problem is the loss of traditional pension plans for younger workers (under age 50). My parents now passed away each retired with a pension, social security, and a small amount in savings (under $100,000 each), which in their generation was fine and provided for a very good lifestyle until death. Now in my early 60's, I retired last year with a pension, 401(k), 457 Plan, social security, and personal savings plus free heath care. However, my younger co-workers without either a pension, 401(k), or a large amount of personal investments my actually run out of money.
Thank you, Azul this was an excellent topic. Now in my early 60's, and in my first year as a retiree my monthly goal has been to keep my expenses lower than my pension checks. To date, some months have been higher and some months have been lower but so far, I have not needed to make any withdraws from either my 401(k) or my 457 plan. However, to give myself a little more margin next year, I will be applying for my social security (smile...smile).
I've concluded that the decision of when to take Social Security is more lifestyle-based than based on annuity tables and break-even analyses. I don't know when I'm going to die and I don't want to forego Social Security payments between (in my case) 65 and 67 (or older).
Now in my early 60's, I retired last year. Next year, I will also be applying for my social security prior to the full benefit age of 67 (smile...smile).
Thanks for stopping moving
Risk is a combination of the likelihood of an event and the consequences of that event once it takes place. The risk of a particular event may be very low, but the consequences quite high. Think of getting struck by lightning. It doesn't happen to many people so the likelihood is low, but the consequences are high, which is why we don't hide under a tree during a thunderstorm.
Your comments are "right on point" (smile...smile).
Thank you Azul. Should I start taking my annuity? I am 75 yo and not looking to leave a legacy for the boys, they are doing well!!!! Sometimes I forget my age , yikes. Thank you
Hmm I think you've answered this question already!!!! Yup, Im taking that annuity ha
Lol
Wait another 20-25 years . 🙄.
Lol
I think I am going to make it, just hit $2.4 million June 1 and earning 5% is $120/yr or $10k a month. Expenses double every 12 years so plan is to live on half income + Social Security. I will need assistance when I get older, as long as my mind keeps working think I can hire a "Girl Friday" to assist me 4-5 hours a week to drive me to grocery store, dentist, bank, run errands, hopefully I can hire a young woman who needs some regular part time income.
With $2.4M you are doing well! 5% yield seems quite low today.... with treasury bonds yielding around 5%. You can get 6% on investment grade bonds. You can get 7%+ on preferred and alternative assets.
@@logicae4096 Once you hit 70 won't be buying 30yr bonds anymore, will never see maturity, no longer than 10yr upper grade bonds which currently pay less than 5%, may as well stay in cash. Did buy some 10yr corporates last October when 10yr Treasury hit 5%, got some 6.25% Cigna & Metlife but then 10yr rate retreated, nothing left to buy.
Im not concerned with running out of money for retirement... cause I wont be able to retire anyway
Great topic!
Hey Azul, you and others have suggested interviewing potential financial planners. And doing my due diligence to see if they are right for me. What does that look like? Do I ask for licenses, experience, education? I have no clue as to where to start. All that I've spoken to seem nice and they're applying for a well paying job that I have no experience with. Can you help me out with this? How easy or hard is it to change financial advisors after a year or two? Maybe you already have a short talk covering this that i haven't seen yet. Bill the vegan...
Azul's main point is to search out a "fee only" financial advisor which, is what he is. Their advantage is that, they do not make any money off the financial products in your investment portfolio but, instead will typically charge you a flat fee of several thousands of dollars which, is sometimes based on the value of your assets (i.e. someone with $100,000 in retirement savings would then pay less than a person with $1 million). On the flip side is a financial advisor, that sells an investment product. For example, a Life Insurance agent is licensed to sell an annuity; and a stock broker is licensed to sell stocks, bonds, and mutual funds. They do not charge you any money to develop a detailed financial plan but, will make their money from commissions off of the products they sell you, to create your investment portfolio (smile...smile)
My wife and I have assumed (using RealAge as well as family history) that we might make it into our early-90s.
We have also assumed an average 3.5% inflation rate during that time.
We have adjusted our withdrawals accordingly including a $270,000 reserve in case we bet wrong on how bad inflation might get.
People fear more about running out of money than death.
The only way to run out of money is having a financial advisor. Crooks!
Mine is excellent, couldn’t be happier
My grandmother lived to 104. She did out live most of her money. She had a heart attack at age 95. Up until then she was enjoying all of her money in a nice independent living facility. Thankfully we found a good nursing home she spent her remaining years at. It was based on her income and subsidized.
I’d rather have everyone enjoy their money while they are healthy. I do not plan on leaving my daughter any of my money, I want to enjoy it.
Good for you and enjoying your money that you earned. Too many wanna leave a bunch to their kids..why? They have their own ability to earn their own living..and if they know they get a large inheritance, it doesn't give much motivation to work for their own money as I see in many kids today...just waiting and counting on an inheritance. I wanted my parents to enjoy their money.
“Tax the gains” = brokerage accounts, “taxed already” = Roth accounts, “tax me now” = regular IRAs
Great topic as always Azul. Love your videos! I sent your channel to my biz partner to teach her about retirement (she’s 29) 🙏😊.
Hi Courney. Thanks for watching, commenting and sharing my channel. That is 3 for 3! (and it looks like you were the first to comment on this video. You are the best! 😎Azul
Azul - Please stop calling the Roth account a "Tax Me Never Account". Almost every time you do it, you say that it's not really a tax me never account. It's a Tax Me Now account. Please stop. Tax Me Now..... Tax Me Later.... Tax Me As I Go.
Hi Azul. Love your videos. They are very informative and easy to understand. Quick question - how often have Black Swan events occurred and should I really include them in my simulation. Seems that they really alter the projection. Thanks so much.
Thanks Azul!
"What do you do to protect yourself from longevity?." I don't think that came out the way you meant it. 😂
Oops ... you are right ... that came out wrong. Meant to say how to protect yourself financially in case you live much longer than expected. 😊Azul
"I've been a subscriber now for nearly 20 months..."
Hi Vern. Wow! You have been a subscriber almost since day 1 of my UA-cam journey. Thanks for joining me for the ride. You rock! 😎Azul
@@AzulWells The quote has a double meaning as it also means that if I do a walk and talk reaction video of you, that quote would be my first words!
@@vernshird711 That is funny 😎! I completely missed the double meaning. Touché! 🤺 Azul
That's why professional fund manager knows how to cut loss when unlucky happens.