In your example of 92% chance of success, all that means is in the other 8% we are going to have to make some adjustments…not that we will for sure not have enough!
one non financial goal i have since retiring at 55 has been to participate in doing a bicycle century ride yearly. i have always wanted to participate but never had the time to properly condition for it. so far i have done the ride for 2 yrs and will do so again next month and have increased my ride time preparing for it. did 4.5 hour ride yesterday with 57.5 mile ride with climbing. also trying to preserve muscle mass with pushups. continuing learning for the sake of learning with reading stuff online and books. 1-2 trips per year. financially i am selling off taxable brokerage equities to fund early retirement while leaving the retirement funds untouched, doing yearly roth conversions and computing and paying my quarterly estimated tax payments. yes too much screentime computer, phone and tv watching a lot of YT videos a lot about retirement and investing/personal finance.
This is the kind of content I need know to cut the tether. I'm in a paralysis by analysis loop, finding it easiest to luck the can down the road. One issue though is that though I am 65, my wife is 53 and when I stop working we'll both stop working. Therefore our plan is for a much longer time horizon than other 65 year olds. Eric, ALL of your videos are incredibly helpful. The ones about 5 drawdown strategies are especially revealing. I've shared them widely, and our plan is built as a customized asset liability model. Thanks for the examples on those options.
Both my grandparents spent 99% of their retirement within 10 miles of their homes. My dad did a lot of traveling his first 5-6 years of retirement but serious health issues with him and my stepmom changed all that and they spent 99% of their final 15 years within 10 miles of their home. Its SUPER important that you choose a GREAT place to live with lots of activities you like that are close by. This is why 55+ communities are great. Hopefully you will be able to lead a full life of travel, etc. in your retirement but the odds are against you doing this for very long.
Thanks for your perspectives. While they make great logical sense, I have an observation from a perspective of my various family's experiences... 1) There are those folks who work to make a living and put in their time for "the man", which is often a bit of a struggle, and retirement is the dream and goal. 2) My father followed his passion and worked for the principle of the matter. In this case, when he needed to retire, there was no further true goal, or sadly, effort. So, my conclusions are if you are working your passion, formal "retirement" can be negative. Yet, if you are like most folks, your goals are not being at the office or factory, so retirement, if you're prepared for it, allows you freedom to pursue your (non-work) external passions. I agree about your comments on "purpose" and would parallel that with one's passion. I'm rather in the middle, having had both examples from my elders, and worked for both passion and dollars (depending a lot on what part of my careers I was involved with). I'm retired and doing my best to enjoy matters either way. So far, so good. :)
Thanks for your great videos, Pat. They provide insights on how things can work together, while still addressing finances quantitatively. Sometimes we need to step back and see the larger picture.
I've been comfortably retired for some time. I have a number of friends who are almost certainly way more well-off than I am, want to retire, but don't, for almost all of the reasons you cite, some of which I've tried to tell them. The young person has time & energy, but no $$. The middle aged bloke (or blokette) has energy & $$, but no time. The old one is sitting on a park bench, leaning on their cane, lots of time & $$, but no energy. I've got my time, while I still have my energy. If only some of my friends could grasp this... sigh... Great on-target video, sir.
If people enjoy watch TV then I don't see what's the problem. Some people just don't want to work and have the money to be lazy away with video game, watching sports or TV drama.
I agree completely. In this video, I'm speaking more to those who look at this trend in retirement and push away from it or see it as a reason not to retire.
Good video, but you are a bit more dismissive of real world inflation than I'm comfortable with. Social security (and government pension) COLA adjustments are not even coming close to paralleling actual end user inflation costs over the past half decade. The vast majority of older fixed income retirees will likely echo this sentiment.
Ironically, I play his videos (and many spoken word videos) at 1.5x speed to get through quicker, then occasionally slow it down if a point is made that zips past me. Saves me a lot of time!
If you have a hard time following, watch the video several times and take notes. His delivery is on par with similar content across other channels. Good luck with your learning!
The best part of your channel is that you consistently make content that really doesn't inform investors of important information that actually matters. Telling a person to make a Robinhood account and then invest in spy is better advice than anything I've seen from brokers that supposedly have plans that can help people retire. Seems like a cash grab rather than a financial planning channel imo. Not to mention the brokers charge for what a simple SPY ETF can outperform in every way. Lastly, most brokerages are so focused on saving money tax wise that it leaves the investor with a retirement plan that is slower and gets less gains than if they just sold options on Robinhood.
Wow great video! Especially Point #5!
In your example of 92% chance of success, all that means is in the other 8% we are going to have to make some adjustments…not that we will for sure not have enough!
Honestly, the worst day in front of television is better than the best day at work.
Especially since there are so many cool things to see. Not like old day time soaps, game shows and commercials.
one non financial goal i have since retiring at 55 has been to participate in doing a bicycle century ride yearly. i have always wanted to participate but never had the time to properly condition for it. so far i have done the ride for 2 yrs and will do so again next month and have increased my ride time preparing for it. did 4.5 hour ride yesterday with 57.5 mile ride with climbing. also trying to preserve muscle mass with pushups. continuing learning for the sake of learning with reading stuff online and books.
1-2 trips per year.
financially i am selling off taxable brokerage equities to fund early retirement while leaving the retirement funds untouched, doing yearly roth conversions and computing and paying my quarterly estimated tax payments. yes too much screentime computer, phone and tv watching a lot of YT videos a lot about retirement and investing/personal finance.
This is the kind of content I need know to cut the tether. I'm in a paralysis by analysis loop, finding it easiest to luck the can down the road. One issue though is that though I am 65, my wife is 53 and when I stop working we'll both stop working. Therefore our plan is for a much longer time horizon than other 65 year olds. Eric, ALL of your videos are incredibly helpful. The ones about 5 drawdown strategies are especially revealing. I've shared them widely, and our plan is built as a customized asset liability model. Thanks for the examples on those options.
In addition to the psychology of "don't touch the principal" there is the risk/fear of running out.
I find your videos consistently interesting, especially the graphs. Nice job!
Thanks for this checklist. I'm 63 and on track to retire in a year and a half. I'm glad to know that none of these apply to me.
Both my grandparents spent 99% of their retirement within 10 miles of their homes. My dad did a lot of traveling his first 5-6 years of retirement but serious health issues with him and my stepmom changed all that and they spent 99% of their final 15 years within 10 miles of their home. Its SUPER important that you choose a GREAT place to live with lots of activities you like that are close by. This is why 55+ communities are great. Hopefully you will be able to lead a full life of travel, etc. in your retirement but the odds are against you doing this for very long.
The 4%, in the original study, was the starting point and was adjusted for inflation
Correct
Thanks for your perspectives. While they make great logical sense, I have an observation from a perspective of my various family's experiences...
1) There are those folks who work to make a living and put in their time for "the man", which is often a bit of a struggle, and retirement is the dream and goal.
2) My father followed his passion and worked for the principle of the matter. In this case, when he needed to retire, there was no further true goal, or sadly, effort.
So, my conclusions are if you are working your passion, formal "retirement" can be negative. Yet, if you are like most folks, your goals are not being at the office or factory, so retirement, if you're prepared for it, allows you freedom to pursue your (non-work) external passions.
I agree about your comments on "purpose" and would parallel that with one's passion.
I'm rather in the middle, having had both examples from my elders, and worked for both passion and dollars (depending a lot on what part of my careers I was involved with). I'm retired and doing my best to enjoy matters either way. So far, so good. :)
Thank you! Awesome content.
Great points. Keep up the good work.
Thanks for your great videos, Pat. They provide insights on how things can work together, while still addressing finances quantitatively. Sometimes we need to step back and see the larger picture.
Great video and gave me a much better perspective
I, for one, will be watching a LOT of tv in retirement.
BCS, BB, TWD, BSG…
Thanks Eric!
well done
I've been comfortably retired for some time. I have a number of friends who are almost certainly way more well-off than I am, want to retire, but don't, for almost all of the reasons you cite, some of which I've tried to tell them.
The young person has time & energy, but no $$.
The middle aged bloke (or blokette) has energy & $$, but no time.
The old one is sitting on a park bench, leaning on their cane, lots of time & $$, but no energy.
I've got my time, while I still have my energy.
If only some of my friends could grasp this... sigh...
Great on-target video, sir.
Well said
Very good video, excellent explanation of the smile and spending principle down.
I tell everyone “that retirement is the time to figure out what your true calling in life is” I am 51 years old.
"This is not a smile. It's a grimace."
If people enjoy watch TV then I don't see what's the problem. Some people just don't want to work and have the money to be lazy away with video game, watching sports or TV drama.
I agree completely. In this video, I'm speaking more to those who look at this trend in retirement and push away from it or see it as a reason not to retire.
Would Roth conversions effect health care gov plans?
Yes, the amount you convert is included in the MAGI used to determine ACA subsidies.
Good video, but you are a bit more dismissive of real world inflation than I'm comfortable with. Social security (and government pension) COLA adjustments are not even coming close to paralleling actual end user inflation costs over the past half decade. The vast majority of older fixed income retirees will likely echo this sentiment.
You have a good message. If you slow down, more of your audience will benefit.
hit the sprocket to slow down the video speed
Oh FFS. His speed and delivery are fine. Maybe you should listen faster.😮
Listen faster.
Ironically, I play his videos (and many spoken word videos) at 1.5x speed to get through quicker, then occasionally slow it down if a point is made that zips past me. Saves me a lot of time!
If you have a hard time following, watch the video several times and take notes. His delivery is on par with similar content across other channels. Good luck with your learning!
The best part of your channel is that you consistently make content that really doesn't inform investors of important information that actually matters. Telling a person to make a Robinhood account and then invest in spy is better advice than anything I've seen from brokers that supposedly have plans that can help people retire. Seems like a cash grab rather than a financial planning channel imo. Not to mention the brokers charge for what a simple SPY ETF can outperform in every way. Lastly, most brokerages are so focused on saving money tax wise that it leaves the investor with a retirement plan that is slower and gets less gains than if they just sold options on Robinhood.