Some people might still have a mortgage, for example, but as long as it’s manageable and their other finances are in order, they could still be in good shape.
That’s true, and having a low draw-down rate is a great indicator as well. If you can live on just a small portion of your retirement funds each year, that means you’re probably not going to run out of money anytime soon
The 4% rule comes to mind, but it really depends on personal circumstances. And with the markets being so unpredictable, you can’t always rely on just a fixed withdrawal strategy.
But that’s why multiple sources of retirement income are crucial. If you’re only relying on one thing, like Social Security or a single pension, it can be risky
I like that idea. Having multiple streams of income gives you more stability, especially if one source isn’t performing as expected. But what about health insurance? A lot of people I know haven’t figured that out before retirement, and it becomes a big issue. If you retire before Medicare kicks in, you need to have a solid plan, or it could drain your savings fast
Consider working for the government. If you are covered with their health benefits for five consecutive years, you can carry that coverage into retirement at a lower cost to you. I know that is the case with the career employees with the post office. Look into what your age needs to be when you retire. There are restrictions. Good luck. There are solutions out there.
One major event can destroy you if you not have enough in savings. As a retired person I have seen this happen many times. Property taxes, home and auto insurance as well as unforeseen medical events can wipe you out. Save a lot and spend little…
In Texas we have the over 65 tax exemption that reduces property taxes. If you don’t pay them they won’t confiscate your house until you and your spouse are dearly departed. House is paid for so I raised the deductible to $50,000 and got minimal coverage. Cars are paid for so I dropped coverage down to liability. Total property taxes, Auto and home insurance is $4,600 annually. Trying to figure out medical insurance now. Only thing standing in my way of retiring. I’m 62.
It's not worth it to save what $20 a month on liability vs full coverage. I made this mistake before. Minor Auto repairs are thousands of dollars now and if accident you get a check towards damages and up to ypu if you repair. I learned this lesson the hard way. Just cough up the extra ins money It's worth it
Yours is the first retirement channel that made me feel possibility instead of despair. I felt so defeated after reading a Suze Orman book. I can check off all 5 of your signs and am eligible for Medicare. But I talked myself into one more year. I may need to rethink this. Thank you for speaking so plainly.
Great video! I too am debt free with rental income and business income. Drive a 300K+ 2005 Toyota Prius and vacation worldwide with credit card points earned from normal personal and business spend with no credit card interest paid. Someone will always have more money; someone will always have fancier things, but no amount of money will buy time. Contentment is to have what you need and want what you have.
I am within a few months of retirement at 55. Hubs retired a year ago at 56. We are debt-free. The only reason I’ve kept working is for health benefits. I’m working that out right now. As soon as I’ve got that figured out, I’m putting in my notice. Thanks for your channel. Your content has been so helpful!
I've watched a lot of encouraging videos about retiring on a modest income and this is probably the most encouraging. My husband, who is 70 and therefore not retiring early, will be retiring sometime this coming January. We have some investments but nowhere close to a million dollars. We fit all the criteria you give here and I think/know we'll be fine.
Thank you. Retiring on a modest income is very possible. Less than 5% of Americans retire with $1M cash and less than 10% of Americans retire with $1M in total assests... so the other 90% are figuring it out somehow. Being mortgage free was a game changer for me. Thanks again.
Thanks Ronnie. We're right there. Hubby turns 65 in September and I'm a little younger so will need that bridge for 17 months. We struggle with taking ss at 65 or using investments till 66.5 or 67. Financial guy pushes waiting. Hubby's work is aging him. We are working on spending less...
As a soon retiree, keeping my 401k on course is my top priority. I have been reading of investors making up to 250k ROI in this current crashing market, any recommendations to scale up my ROI before retirement will be highly appreciated.
The current market might give opportunities to maximize profit within the short term but to execute such a strategy, you must be a skilled practitioner or be working with one.
@@NebiheVergara Inflation is gradually going to become part of us and due to that fact, any money you keep in cash or a low-interest account declines in value each year. Investing is the only way to make your money grow. Unless you have an exceptionally high income, investing is the only way most people will have enough money to retire.
@@WaldronsSousas I'm interested in investing through an analyst. It sounds like the most sensible thing to do in the market. Could you please give me a pointer about who you work with?
@@JeffreysSuttons I have to give props to MARGARET MOLLI ALVEY, my CFA, she's the real deal in the finance game. Dive into her background, this lady's a treasure trove of experience and knowledge for anyone navigating the financial jungle.
This is brilliant Ronnie, though it's very sad that many people need to hear it, as they're unable to think & work it out for themselves. I realised all this in my early 20's & have since enjoyed a debt free life for the past 20years. Quite simply the only debt I have ever had was a mortgage & that got paid off extremely quick by me prioritising paying it off.
OK… I’m binging now. 😂 Another great retirement video. I’m 3 videos in and have noticed musical instruments in the background. I’m so looking forward to spending time in my home studio mixing tracks of me and my late dad making music together over the years. I play the piano, keyboards, guitar and drums. My dad played guitar and taught me first guitar lesson at age 8. I miss him so much. He retired early and set me on a path to do the same. Thanks again Ronnie for an inspiring chat. 👍 6 more weeks…
Thank you for the encouraging video. Sometimes retirement comes to you, ready or not. You have shown me that it will be okay. Thank you. You have given me a great gift.
Very reassuring video. Here in Hawaii, the highest cost of living state, I'm surviving on my pension alone, not dipping into my IRA. I plan on moving next year and I know my expenses will be cut in half or more. Right now I feel I'm surviving, but soon I want to more than survive. I want to live....live life.
Well said. By the grace of Jesus, I have been out of debt for years....paid off and sold my house for a profit....my "liquid house" is now in savings as I figure out if it is really best to rent....I am single and home ownership is not necessarily something I want in retirement, although I miss the stability....like your focus on the fact that truly meaningful things in life do not cost as much....loved that....as a missionary, my goal is to glorify God as I share the love of Jesus Christ with as many people as possible....praying with them and leading them closer to Jesus.....until the day I die....that doesn't cost anything. I checked all of the boxes in your list and feel reassured. Thank you! Blessings!
😢Just paid off my house too and also thinking of selling it and buying a much smaller one in a state with near zero property taxes. Let's run away together, get married and buy a little house with cash. 😊
I I don't know how I found your channel, but I thank God I did. My husband will be 66 next month and I will be 64. I held of retirement because of health insurance and the cost of paying for insurance out of pocket is crazy. You have given me hope.
We are working blue collar l, lower middle class. We have just enough and never seem to really get ahead. Your channel has come to be my go to as we prepare for retirement. Thank you so much.
Excellent information, as I approach retirement I too worry about having enough… but I am determined to make it work with whatever I have and work a part time job… the hamster wheel is just too much… The more you work the more taxes they take…. I will definitely be watching you and taking notes…
Another compelling sign that you're “good to go” with retiring is if you are both financially literate and financially savvy regardless of your stated income. Because with such an arsenal at your disposal, you'll undoubtedly have the ability to leverage your resources (e.g, accumulate equity, maximum usage of cash on hand as well as sensible applicability of day-to-day money management. From an average layman's perspective (like myself-homeowner w/ pension &SS only)), how could one not thrive in retirement?
Hello Ron just came across your vid. Just thought I would put my 2 cents worth in. I am retired now and for all intensive perposes I do not have any money in the bank I have about 10000.00. My wife and I have been retired for 4 years we have 5 children all out of the nest and doing fine. I dont have any pension just the government pension. We own everything we have house, garauge , new car, tractor, 160 acres of land. We grow a huge garden can most of our own food, I hunt for a lot of our meat, we have a few chickens, anyway you get the picture. We get away once a year for a month, we enjoy camping mind you my back is starting to give me shit lmao. We have a simple life but for us it is very enjoyable. I think one of the most important thing in life is to have a wife that loves you and one that enjoys the simple things in life. I won the lottery when I found my wife.
I believe too much is made of being wealthy to be able to retire. Obviously, having a fortune would be wonderful. However, there is a lot to be said for being a mindful and frugal Prepper. Living simply has 'saved my bacon' on several occasions especially during two major medical events. Though I live on Social Security, plus a small pension, by being careful, I manage, though not always easily. Time is far more valuable than money. Time cannot be replaced. I would also say that it is true that two can live as cheaply as one. Very true when it comes to utilites, and housing, and in many other ways. And, if one has a decent relationship, there is a companion to bounce ideas off back and forth. Though it is easy to adjust to living alone, once in a while it would be good to have someone to discuss major decisions with, especially if they need to be made in haste, and family or friends are not always available.
Just found your channel 👍 Some good points. 👍 To enjoy things a bit more we will make the transition from living here in Florida to Slow 🐌 traveling the world.🌎 Just waiting for our daughter to graduate high school in 4 years.
First time I've watched a video of yours. Loved how you explained things. Your list of things to enjoy without costing much is what we do as well. We just paid off most of our debt (CC, car, etc.) and only have our house payment and daily expenses. Approximately one year from retirement so we're trying to save as much as we can to be comfortable. I'm a musician and liked your guitars in the background. Some people blow money on expensive cars or boats. I get nice guitars and get to enjoy them everyday. Will be watching your other videos. Subscribed. Thanks for sharing your thoughts and wisdom.
@09:00 insanity. I know Canada is messed up but thank god this isn’t something I have to worry about. Yes our free health care has its issues but it’s not as bad as the media sensationalizes it. Great video! Will be retired with my house paid off and 7 figures at 49! Can’t wait.
Spot on information thanks, im dept free my biggest delima is finding health insurance, orher than that im good, both and my hobbies could make me a little pocket money ro keep from over spending
I was fine when I first retired (62), but then this inflation backed me into a corner(66). So, I had to reorganize my portfolio such that 60% is providing monthly dividends. The remaining 40% is invested in long term growth. The monthly dividends increased my income 38%. Now, I actually have too much income and I need to either reinvest or spend more. My portfolio continues to grow and hopefully, I shouldn't need to take principal until RMD age 73.
My biggest fear is WW3 coming. In the next 5 years, something will happen between Iran, North Korea, Russia (Putin) and China. No one knows what will happen if Russia fires a nuke at Ukraine...
I'm hoping to retire next year at 55. My goal next year is to be more serious and consistent with my investments I've been investing since I was 22. 2025 is going to be more serous for me investing consistently for the long term. starting to save for a house down payment. I want to invest more than $105k, but I'm not sure on how to mitigate risk.
Its unclear which stocks and sectors will lead the market in the next uptrend. It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory.
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert
I have worked with a few financial advisors before now but i ultimately settled for 'Annette Marie Holt'. She is SEC regulated and licensed in US. You can easily look her up
I am going to look her up, I have about $81k i want to start with, might be small but it's better than nothing though. Since the 08 crash is playing out again.
How lucky I am live in Sweden. Wouldn't be able to afford the health insurance that you have in the US ,would be more than half my income. 😮 Thanks for your videos.😊
Health care costs in the U.S. are outrageous. While the care itself is generally good, the costs are out of reach for so many people. Another reason to prioritize ones health/fitness & nutrition. Thanks for commenting.
While the health insurance question is real as Ronnie speaks to based on age. Car insurance is a constant, but are thankfully not overwhelming. Property taxes is something people do forget about. Depending on where you live, they can be sneaky. I’m in MD and plan on leaving the state after retirement. Our rates are stupid high and we’re seeing nearly nothing in benefit since our local government is expert at wasteful spending. Relocation will reduce our property tax exposure by 50-75%. Rolling over equity from our current home will make for mortgage free living, so the taxes will just make it that much easier. Good luck out there!
Really? You're a millionaire and worried about $150 a month car insurance? What are you driving a Bently? You probably pay more for internet/cable/phone.. crazy..
@jakepyrett1715 We have more than 1 car and live in a state where the rates are high. For 3 cars, we pay about 6k for full coverage for a year. Property tax is about 6k per year, homeowners insurance is about 1k, and a family plan for medical, dental, and optical, silver plan is about 19k. So total is 32k. That's just for insurance and Property taxes. Do you see my concern now?
@@jdneilsoMy suggestion is to shop around every year. Home and car insurance prices fluctuate hugely by company, for reasons not clear to me. Also, can you get by with a higher deductible on any of your insurance policies? We did that with health insurance (knock wood, we’re healthy) and it allowed us to contribute to an HSA (great retirement account). If our health turns for the worse, we can always change policies next year. And we have old cars so we dropped comprehensive insurance. Just make sure to keep your uninsured/underinsured coverage high in case someone hits you.
@tobirates916 Thanks for the tips. I do have the ability to live off of stock and bank accounts for a while. So I'm considering doing that to look poor on paper and then applying for Obamacare, that way it could be highly subsidized.
Looks like I’ll be alright according to your measurements… Debt FREE 65 now but plan to work until 26 only large ticket I may end up buying is another vehicle…. Driving an o5 Dakota …. Plan to buy something OLDER less than 15 grand pretty decent saver and will draw a pension and I assume SS (if it’s still there at that time ).I’ve been seeing reports that payments may be reduced and or moved to some sort of private set up .. guess i can do nothing but cross that bridge near the time it’s certain it could be happening
Solid Military pension, 401k, his and hers Roth IRAs and SS. Tricare healthcare. Mortgage in the 3% range with lots of home equity. Thinking we will have more of a tax problem than income problem in retirement.
My first year in retirement, the taxes ate me up. Despite sheltering as much as possible, I just pushed up into a higher tax bracket (from severance pay, etc) and uncle sam got his pound of flesh. It's behind me now, thankfully. Sounds like you've got a good plan. Contrats.
I retired last Feb 29 2024 (at age 60) with zero debts. I still drive 14 year old car, still buy pre-owned vehicles, ATVs, snowmobiles, etc. I still online search for best financial buys and still buy pre-owned things - like cloths at local thrift stores. And, I still buy lumber at wholesale prices at my local lumber mill. I even waited 6 months for a garage door opener to come on sale - to save $85. Yes. Exact same frugal spending habits I had for the last 36 years - before I retired. At a very young age I learned its easier to save & invest instead of trying to make more money... You can too...
This was a great video. 52, and I've been working for over 43 years. I live a very simple life and don't enjoy costly endeavors, which is why I build wealth faster than my siblings. I think multiple income sources (a part-time endeavor like a YT channel, SS) and ACA might be my focus areas next. 13 years to have healthcare coverage is huge. So ACA may be an option if push comes to shove. Thanks for the info!
Suze Orman lost all my respect when she recommended people like me should “walk away” from underwater mortgages. I didn’t and rode it as my realtor recommended, he was right. That was in 2008, I’m doing pretty good now 😀.
Your Medicare premiums are based on your income 2 years prior to starting Medicare. Once you've been on Medicare for 2 years, you can have them re-run the figures to lower your premiums. Love your show. :) ang
Yes, thank you for the reminder. I had a bump in the last 2 years of work (severance pay, etc) which increased my income, resulting in a higher Medicare premium... so I'm looking forward to having them lowered soon. Thanks again.
@@martywilliard I found a table somewhere on the internet that shows how much you will pay depending on what you made 2 years before. I was just interested in how much the basic was going to cost. I've been all over the internet checking out retirement stuff. I want to know all I can before I take the plunge. LOL
55 years old and the wife and I are debt free. Just going to hang on to the tolerable job until 65 for the medicare. Then I can fully retire or just reduce my hours and drive on, leaving the option to walk out the door at any point!
One of the things that probably should be a part of retirement discussions is the simple question of DO you live in a place that has Low Cost of Living? Because you need to, unless you have a pile of money. And even IF ya got a pile of money, it will last WAY longer if you live in a place that has a low cost of living.
I am surprised that pre-Medicare insurance premiums and deductibles are so high. Using a Kaiser family foundation calculator, insurance for two, withdrawing 110k per year, the premium was 800 per month with 18k deductible. Pretty healthy at this point, so I’m doubtful we would be spending 18k every year in addition to the premium
Great points and spot on. A very down to earth video. I will add something that seems to get missed in most videos similar to this one. As this video, almost all refer to the married couple. The retiree that is single get missed. And even more so the single person with no children in life which is becoming the trend. From experience it is significantly less costly to be single at retirement as long as the points in this video are followed. So much so that some that live in low cost of living areas that are 65 plus that have a high SS payout can live very comfortably without multiple income layers. Other factors must exist. But, this fact is real if the stars line up.
Very true & accurate. In fact, I've done a video about living on SS alone; that it's very doable, especially if one lives in low cost area. Thanks for commenting; your thoughts are insightful.
I suggest that "net worth" be calculated without including your home residence equity. Most people (especially married couples) are very unlikely to sell and use their equity for living expenses- they have to live somewhere, and uprooting their lifestyle is very hard for most people. Home equity is dead capital. But it's a pleasant illusion for many.
Yeah, my wife doesn't want to move. So it doesn't matter if we have $30k or 300k equity. To your point. It's worthless. We could sell next week and rebuy cheaper condo and and be mortgage free. But nope.. gotta have extra bedrooms used for storage..
I want $100k a year post tax at retirement. Today at 4% means I need $2 million plus social insecurity. The cost of everything doubles every 24 years which is when I will retire meaning I need at least $4 million post tax. I’m on track.
Great video Ron, you shared a lot of good sensible tips. I think there should be a #6 Emergency Fund. I'll be 67 in 4 years and I'm waiting until full retirement because I am single and will still have a mortgage when I retire. I would love to retire at 65, but my house needs a new HVAC, new roof, replace the back steps and many other repairs needed. So even though I am debt free and have a 403B from work, a small amount from my ex-spouse military retirement and money in Roth CDs. When you own a home, have pets and are a senior, you are not set for life. When you're low income or middle class it's hard to save money and when stuff happens (i.e. health issues, home repairs, car repairs etc.) your retirement accounts can be drained quickly. That's why I have seen so many seniors working part-time at Wal-Mart, Burger King, Big Box hardware stores etc. Many of us will probably still need to work part-time after drawing social security to build up our emergency funds. Just something to think about folks.
If you have a lot of home equity, it might be best to downsize now while house prices are at all time high. Find a smaller and newer place, you don't have to drop $20k repairs in. Make sure you enjoy your 60s. When interest rates drop over the next 2 years, the housing market prices will drop because us older generations (boomer and GenX) can finally give up our low 3 to 4% mortage loans and more houses will be on the market. But if you like your home and it's affordable, just do a project at a time. Just use a company like HomeDepot or Lowes to do the installations so you don't get ripped off.
Health insurance is a key thing to lock down. We are doing ACA because our incone is below the upper limit for stipends. It will cost our household of two 300 a month to cover both of us!!. We could bump up to gold plan for about 450 a month. Strangly enough when we get to medicare. It along with gap or supplemental will cost us more .. oh well, by then SS will be coming in and more than cover all our exoenses so investments just become funny money.
I spend money on Martin Guitars but gives me many hours of Great cheap fun by my self because they are paid for. Just drink coffee when playing guitar we get older we give up the scott and wiskie
@@AResilientLife Guild Guitars are vary good and they are just diffetent from what everyone thinks they like. Martin and Gibsons are just getting to be to popular and over rated. Just my thoughts we are all different :) 👍 Look forard to more videos about retirement.
I discovered that I am better off without any of the Advantage Plans which are nolonger accepted by all hospitals. Most larger towns have an office run by one's State Insurance Commissioner, and run by volunteers who are trained to offer free advice, which you may find helpful. Just a thought.
I am debt free except for my home I have enough equity to sell and buy something smaller just can't find anything that doesn't requires major renovations😢
This may not be what some consider early retirement. I retired at age 63 1/2 with 18 months of coverage from my employer COBRA benefits. Then Medicare and a supplement insurance policy at 65. Used the time before retirement to get debt free.
I put up with a ton of crap at work only because I was vested in my pension and health insurance would only be $300/ month. Mortgage and vehicles paid off. 401k and other investments. Burned rubber leaving that parking lot one last time. 😅 On pension alone it's not difficult. I'll take SS in 4 years @62, then distributions from 401k. Sensibly frugal, like the man said.
I am 64 still working but thinking of retiring at 65, married, debt free, $700,000 in Roth, Traditional, 401k. $130,000 in emergency funds in CDs at 5 percent. $4200 monthly military pension. Estimated SS for me is $2200. Wife has $1400 Social Security Disability as well.
You're probably better off financially than you think you are. (An outline can be found in the description box above).
Really interesting and comforting way of looking at 'low-income' retirement. Thank you.
Time left on earth is more important than saving to be the richest man in the cemetery
Praise Jesus Christ! HALLELUJAH AND AMEN!!!
Praise Jesus Christ! HALLELUJAH AND AMEN!!!
Amen to that 🙏
Why tie up your money for 40 years just to give it to your heirs.
That is the answer I have been searching for. I'm retiring next year
Some people might still have a mortgage, for example, but as long as it’s manageable and their other finances are in order, they could still be in good shape.
That’s true, and having a low draw-down rate is a great indicator as well. If you can live on just a small portion of your retirement funds each year, that means you’re probably not going to run out of money anytime soon
The 4% rule comes to mind, but it really depends on personal circumstances. And with the markets being so unpredictable, you can’t always rely on just a fixed withdrawal strategy.
But that’s why multiple sources of retirement income are crucial. If you’re only relying on one thing, like Social Security or a single pension, it can be risky
But if you’ve got a combination of things like Social Security, some rental income, maybe dividends or annuities you’re in a much stronger position
I like that idea. Having multiple streams of income gives you more stability, especially if one source isn’t performing as expected. But what about health insurance? A lot of people I know haven’t figured that out before retirement, and it becomes a big issue. If you retire before Medicare kicks in, you need to have a solid plan, or it could drain your savings fast
I’m debt free and 55. A couple of cds. Roth,money market,401k and a good savings account. Health insurance is the problem
Consider working for the government. If you are covered with their health benefits for five consecutive years, you can carry that coverage into retirement at a lower cost to you. I know that is the case with the career employees with the post office. Look into what your age needs to be when you retire. There are restrictions. Good luck. There are solutions out there.
Just don’t get married!
I'm retiring at 57. I'm paying $2400 a month to keep blue cross blue shield. Not much left over in my pension. Glad I have rental income.
Check out the ACA (Obamacare) and find a plan on the Marketplace.
@@mjo8856I pay nothing for Obamacare monthly, as long as I show I’m only making $40k yearly being single and 60 yrs old in Florida.
I can’t retire because I don’t have enough guitars.
Your crazy, but I like your thinking 😅🤣🤣
Same but with guns lol.
@@OziBlokeTimG*You're
😂😂
I can't retire cuz it is against my religion
I am debt-free and my money is making enough money to pay my bills. Always lived below my means.
I love your sensible approach. I’m a big fan of becoming debt free.
I turn 55 in July and am ready. Just started watching your videos. We have snowbirded for two years. Debt free and ready to go.
Same here but 59. Snowbirdin it in S. FLA. gotta love it. Saw a Xmas boat parade last night. Love it here
One major event can destroy you if you not have enough in savings. As a retired person I have seen this happen many times. Property taxes, home and auto insurance as well as unforeseen medical events can wipe you out. Save a lot and spend little…
In Texas we have the over 65 tax exemption that reduces property taxes. If you don’t pay them they won’t confiscate your house until you and your spouse are dearly departed. House is paid for so I raised the deductible to $50,000 and got minimal coverage. Cars are paid for so I dropped coverage down to liability. Total property taxes, Auto and home insurance is $4,600 annually. Trying to figure out medical insurance now. Only thing standing in my way of retiring. I’m 62.
It's not worth it to save what $20 a month on liability vs full coverage. I made this mistake before. Minor Auto repairs are thousands of dollars now and if accident you get a check towards damages and up to ypu if you repair. I learned this lesson the hard way. Just cough up the extra ins money
It's worth it
Yours is the first retirement channel that made me feel possibility instead of despair. I felt so defeated after reading a Suze Orman book. I can check off all 5 of your signs and am eligible for Medicare. But I talked myself into one more year. I may need to rethink this. Thank you for speaking so plainly.
You are right. Some of those videos made me feel like a looser but this video made me feel much better about retiring.
@@tuffy4230not everyone needs a champagne lifestyle in retirement
Great video! I too am debt free with rental income and business income. Drive a 300K+ 2005 Toyota Prius and vacation worldwide with credit card points earned from normal personal and business spend with no credit card interest paid. Someone will always have more money; someone will always have fancier things, but no amount of money will buy time. Contentment is to have what you need and want what you have.
I am within a few months of retirement at 55. Hubs retired a year ago at 56. We are debt-free. The only reason I’ve kept working is for health benefits. I’m working that out right now. As soon as I’ve got that figured out, I’m putting in my notice. Thanks for your channel. Your content has been so helpful!
Thank you for the kind words.
I've watched a lot of encouraging videos about retiring on a modest income and this is probably the most encouraging. My husband, who is 70 and therefore not retiring early, will be retiring sometime this coming January. We have some investments but nowhere close to a million dollars. We fit all the criteria you give here and I think/know we'll be fine.
Thank you. Retiring on a modest income is very possible. Less than 5% of Americans retire with $1M cash and less than 10% of Americans retire with $1M in total assests... so the other 90% are figuring it out somehow. Being mortgage free was a game changer for me. Thanks again.
Thanks Ronnie. We're right there. Hubby turns 65 in September and I'm a little younger so will need that bridge for 17 months. We struggle with taking ss at 65 or using investments till 66.5 or 67. Financial guy pushes waiting. Hubby's work is aging him. We are working on spending less...
You're going to make it.
As a soon retiree, keeping my 401k on course is my top priority. I have been reading of investors making up to 250k ROI in this current crashing market, any recommendations to scale up my ROI before retirement will be highly appreciated.
The current market might give opportunities to maximize profit within the short term but to execute such a strategy, you must be a skilled practitioner or be working with one.
@@NebiheVergara Inflation is gradually going to become part of us and due to that fact, any money you keep in cash or a low-interest account declines in value each year. Investing is the only way to make your money grow. Unless you have an exceptionally high income, investing is the only way most people will have enough money to retire.
@@WaldronsSousas I'm interested in investing through an analyst. It sounds like the most sensible thing to do in the market. Could you please give me a pointer about who you work with?
@@JeffreysSuttons I have to give props to MARGARET MOLLI ALVEY, my CFA, she's the real deal in the finance game. Dive into her background, this lady's a treasure trove of experience and knowledge for anyone navigating the financial jungle.
@@WaldronsSousas Thank you for the lead. I searched for her, and I have sent her an email. I hope she gets back to me soon.
This is brilliant Ronnie, though it's very sad that many people need to hear it, as they're unable to think & work it out for themselves.
I realised all this in my early 20's & have since enjoyed a debt free life for the past 20years. Quite simply the only debt I have ever had was a mortgage & that got paid off extremely quick by me prioritising paying it off.
Being mortgage free is a game changer. Thanks for commenting.
I paid off 4 mortgages in 15 years and finally retired this year at 57
OK… I’m binging now. 😂 Another great retirement video. I’m 3 videos in and have noticed musical instruments in the background. I’m so looking forward to spending time in my home studio mixing tracks of me and my late dad making music together over the years. I play the piano, keyboards, guitar and drums. My dad played guitar and taught me first guitar lesson at age 8. I miss him so much. He retired early and set me on a path to do the same. Thanks again Ronnie for an inspiring chat. 👍 6 more weeks…
Thank you for the encouraging video. Sometimes retirement comes to you, ready or not. You have shown me that it will be okay. Thank you. You have given me a great gift.
So glad for you, and thanks for posting.
Excellent points. Also, it helps give me confidence to retire early at 46.
Very reassuring video. Here in Hawaii, the highest cost of living state, I'm surviving on my pension alone, not dipping into my IRA. I plan on moving next year and I know my expenses will be cut in half or more. Right now I feel I'm surviving, but soon I want to more than survive. I want to live....live life.
Well said. By the grace of Jesus, I have been out of debt for years....paid off and sold my house for a profit....my "liquid house" is now in savings as I figure out if it is really best to rent....I am single and home ownership is not necessarily something I want in retirement, although I miss the stability....like your focus on the fact that truly meaningful things in life do not cost as much....loved that....as a missionary, my goal is to glorify God as I share the love of Jesus Christ with as many people as possible....praying with them and leading them closer to Jesus.....until the day I die....that doesn't cost anything. I checked all of the boxes in your list and feel reassured. Thank you! Blessings!
😢Just paid off my house too and also thinking of selling it and buying a much smaller one in a state with near zero property taxes. Let's run away together, get married and buy a little house with cash. 😊
I I don't know how I found your channel, but I thank God I did. My husband will be 66 next month and I will be 64. I held of retirement because of health insurance and the cost of paying for insurance out of pocket is crazy. You have given me hope.
I'm so glad you're more hopeful. And thanks for commenting.
We are working blue collar l, lower middle class. We have just enough and never seem to really get ahead. Your channel has come to be my go to as we prepare for retirement. Thank you so much.
And thank you for such kind words.
whoohoo! Thank you for the no nonsense level headed affirmation Ronnie
Excellent information, as I approach retirement I too worry about having enough… but I am determined to make it work with whatever I have and work a part time job… the hamster wheel is just too much… The more you work the more taxes they take…. I will definitely be watching you and taking notes…
Very encouraging and enlightening. Thank you this valuable information.
Another compelling sign that you're “good to go” with retiring is if you are both financially literate and financially savvy regardless of your stated income. Because with such an arsenal at your disposal, you'll undoubtedly have the ability to leverage your resources (e.g, accumulate equity, maximum usage of cash on hand as well as sensible applicability of day-to-day money management. From an average layman's perspective (like myself-homeowner w/ pension &SS only)), how could one not thrive in retirement?
Praise Jesus Christ! HALLELUJAH AND AMEN!!!
I really enjoyed listening to this. I have two more years before I retire at age 65.
Retire with the mortgage and vehicles paid off. Also, pay off those credit cards monthly.
Hello Ron just came across your vid. Just thought I would put my 2 cents worth in. I am retired now and for all intensive perposes I do not have any money in the bank I have about 10000.00. My wife and I have been retired for 4 years we have 5 children all out of the nest and doing fine. I dont have any pension just the government pension. We own everything we have house, garauge , new car, tractor, 160 acres of land. We grow a huge garden can most of our own food, I hunt for a lot of our meat, we have a few chickens, anyway you get the picture. We get away once a year for a month, we enjoy camping mind you my back is starting to give me shit lmao. We have a simple life but for us it is very enjoyable. I think one of the most important thing in life is to have a wife that loves you and one that enjoys the simple things in life. I won the lottery when I found my wife.
You are very forunate. I feel the same way about my wife & the life we are living.
Very interesting, where do you live?
@@sglacfnever ask someone where they live on the internet. And.. never share that to anyone who asks...
To me, you had a wonderful life thanks for sharing. God bless.
@@sglacf Northern Ontario
I believe too much is made of being wealthy to be able to retire. Obviously, having a fortune would be wonderful. However, there is a lot to be said for being a mindful and frugal Prepper. Living simply has 'saved my bacon' on several occasions especially during two major medical events. Though I live on Social Security, plus a small pension, by being careful, I manage, though not always easily. Time is far more valuable than money. Time cannot be replaced. I would also say that it is true that two can live as cheaply as one. Very true when it comes to utilites, and housing, and in many other ways. And, if one has a decent relationship, there is a companion to bounce ideas off back and forth. Though it is easy to adjust to living alone, once in a while it would be good to have someone to discuss major decisions with, especially if they need to be made in haste, and family or friends are not always available.
Thank you for such an insightful comment & thoughts. And yes, being a mindful & frugal prepper has save my bacon a few times too! Thanks again.
And all these people with their financial advisors. Sheesh give it a break. Why do you need one don’t you know how to manage money? Get a grip
Just found your channel 👍
Some good points. 👍
To enjoy things a bit more we will make the transition from living here in Florida to Slow 🐌 traveling the world.🌎 Just waiting for our daughter to graduate high school in 4 years.
First time I've watched a video of yours. Loved how you explained things. Your list of things to enjoy without costing much is what we do as well. We just paid off most of our debt (CC, car, etc.) and only have our house payment and daily expenses. Approximately one year from retirement so we're trying to save as much as we can to be comfortable. I'm a musician and liked your guitars in the background. Some people blow money on expensive cars or boats. I get nice guitars and get to enjoy them everyday. Will be watching your other videos. Subscribed. Thanks for sharing your thoughts and wisdom.
Thank you & welcome to our online community.
@09:00 insanity. I know Canada is messed up but thank god this isn’t something I have to worry about. Yes our free health care has its issues but it’s not as bad as the media sensationalizes it. Great video! Will be retired with my house paid off and 7 figures at 49! Can’t wait.
Spot on information thanks, im dept free my biggest delima is finding health insurance, orher than that im good, both and my hobbies could make me a little pocket money ro keep from over spending
Affordable Care Act (ACA) is a good option. My wife use it, and will until Medicare age.
@@AResilientLifepray it won’t be taken away
I was fine when I first retired (62), but then this inflation backed me into a corner(66). So, I had to reorganize my portfolio such that 60% is providing monthly dividends. The remaining 40% is invested in long term growth. The monthly dividends increased my income 38%. Now, I actually have too much income and I need to either reinvest or spend more. My portfolio continues to grow and hopefully, I shouldn't need to take principal until RMD age 73.
Sounds like a great plan. Mine is similar.
Lucky you! I also prepared financially, but life happened, not always in expected ways. I will leave it at that!
I want to be like you when I grow up. (Said with starstruck eyes. Lol)
My biggest fear is WW3 coming. In the next 5 years, something will happen between Iran, North Korea, Russia (Putin) and China. No one knows what will happen if Russia fires a nuke at Ukraine...
I like what you're saying.
I see those guitars in the background. Have my attention.
Very wise and easy to understand.
Retired 6 months ago on just ss for wife and i aca plan is about 1/4 of what i paid while working and the coverage is better
This man is a nugget of wisdom
I'm hoping to retire next year at 55. My goal next year is to be more serious and consistent with my investments I've been investing since I was 22. 2025 is going to be more serous for me investing consistently for the long term. starting to save for a house down payment. I want to invest more than $105k, but I'm not sure on how to mitigate risk.
Its unclear which stocks and sectors will lead the market in the next uptrend. It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory.
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert
Being heavily liquid, I'd rather not reinvent the wheel. Since this strategy works for you, how can I contact your advisor?
I have worked with a few financial advisors before now but i ultimately settled for 'Annette Marie Holt'. She is SEC regulated and licensed in US. You can easily look her up
I am going to look her up, I have about $81k i want to start with, might be small but it's better than nothing though. Since the 08 crash is playing out again.
How lucky I am live in Sweden. Wouldn't be able to afford the health insurance that you have in the US ,would be more than half my income. 😮 Thanks for your videos.😊
Health care costs in the U.S. are outrageous. While the care itself is generally good, the costs are out of reach for so many people. Another reason to prioritize ones health/fitness & nutrition. Thanks for commenting.
Yes unfortunately the USA chooses to spend money more on the military and on foreign aid to disloyal supposed allies than on its citizens.
57, debt free, over 1 mil in savings/401ks, ready to retire, biggest concerns are property taxes, car insurance, and health insurance.
While the health insurance question is real as Ronnie speaks to based on age. Car insurance is a constant, but are thankfully not overwhelming. Property taxes is something people do forget about. Depending on where you live, they can be sneaky. I’m in MD and plan on leaving the state after retirement. Our rates are stupid high and we’re seeing nearly nothing in benefit since our local government is expert at wasteful spending. Relocation will reduce our property tax exposure by 50-75%. Rolling over equity from our current home will make for mortgage free living, so the taxes will just make it that much easier. Good luck out there!
Really? You're a millionaire and worried about $150 a month car insurance? What are you driving a Bently? You probably pay more for internet/cable/phone.. crazy..
@jakepyrett1715 We have more than 1 car and live in a state where the rates are high. For 3 cars, we pay about 6k for full coverage for a year. Property tax is about 6k per year, homeowners insurance is about 1k, and a family plan for medical, dental, and optical, silver plan is about 19k. So total is 32k. That's just for insurance and Property taxes. Do you see my concern now?
@@jdneilsoMy suggestion is to shop around every year. Home and car insurance prices fluctuate hugely by company, for reasons not clear to me. Also, can you get by with a higher deductible on any of your insurance policies? We did that with health insurance (knock wood, we’re healthy) and it allowed us to contribute to an HSA (great retirement account). If our health turns for the worse, we can always change policies next year. And we have old cars so we dropped comprehensive insurance. Just make sure to keep your uninsured/underinsured coverage high in case someone hits you.
@tobirates916 Thanks for the tips. I do have the ability to live off of stock and bank accounts for a while. So I'm considering doing that to look poor on paper and then applying for Obamacare, that way it could be highly subsidized.
Looks like I’ll be alright according to your measurements… Debt FREE 65 now but plan to work until 26 only large ticket I may end up buying is another vehicle…. Driving an o5 Dakota …. Plan to buy something OLDER less than 15 grand pretty decent saver and will draw a pension and I assume SS (if it’s still there at that time ).I’ve been seeing reports that payments may be reduced and or moved to some sort of private set up .. guess i can do nothing but cross that bridge near the time it’s certain it could be happening
Solid Military pension, 401k, his and hers Roth IRAs and SS. Tricare healthcare. Mortgage in the 3% range with lots of home equity. Thinking we will have more of a tax problem than income problem in retirement.
My first year in retirement, the taxes ate me up. Despite sheltering as much as possible, I just pushed up into a higher tax bracket (from severance pay, etc) and uncle sam got his pound of flesh. It's behind me now, thankfully. Sounds like you've got a good plan. Contrats.
Set aside more each quarter. You can easily do that on efpts.gov
Consistent with all the Vets I work with -- retired military pension, military disability and working a $100K+ government job.
I retired last Feb 29 2024 (at age 60) with zero debts. I still drive 14 year old car, still buy pre-owned vehicles, ATVs, snowmobiles, etc. I still online search for best financial buys and still buy pre-owned things - like cloths at local thrift stores. And, I still buy lumber at wholesale prices at my local lumber mill. I even waited 6 months for a garage door opener to come on sale - to save $85. Yes. Exact same frugal spending habits I had for the last 36 years - before I retired. At a very young age I learned its easier to save & invest instead of trying to make more money... You can too...
Ronnie U R sooo right, It all makes since,👏🏼👍🏼🙏🏼
Thanks for the encouragement
Great conversation.
This was a great video. 52, and I've been working for over 43 years. I live a very simple life and don't enjoy costly endeavors, which is why I build wealth faster than my siblings. I think multiple income sources (a part-time endeavor like a YT channel, SS) and ACA might be my focus areas next. 13 years to have healthcare coverage is huge. So ACA may be an option if push comes to shove. Thanks for the info!
You're welcome, and thanks for commenting.
If it’s still around the next 4 years ??
I'm set,but wow,I didn't think I would be here. I still need to pull the trigger.???
Suze Orman lost all my respect when she recommended people like me should “walk away” from underwater mortgages. I didn’t and rode it as my realtor recommended, he was right. That was in 2008, I’m doing pretty good now 😀.
She's got a lot of terrible advice
At my age the only debt I have is a mortgage I won’t be able to pay off before I die. Payments are under 2k hopefully this is enough.
Your Medicare premiums are based on your income 2 years prior to starting Medicare. Once you've been on Medicare for 2 years, you can have them re-run the figures to lower your premiums. Love your show. :) ang
Yes, thank you for the reminder. I had a bump in the last 2 years of work (severance pay, etc) which increased my income, resulting in a higher Medicare premium... so I'm looking forward to having them lowered soon. Thanks again.
Cool! Didn’t know that !
@@martywilliard I found a table somewhere on the internet that shows how much you will pay depending on what you made 2 years before. I was just interested in how much the basic was going to cost. I've been all over the internet checking out retirement stuff. I want to know all I can before I take the plunge. LOL
@@angelaland4759 thank you. I’ll look!
Could you share where you found this table? Thanks
So, so encouraging!!!👍
Thanks for an enlightening video
I was a lot more confident in my plan before prices doubled.
That was reassuring for me. Thanks, retiring in the middle of next year.
Yes, retiring is doable on a modest income. Thanks for commenting.
55 years old and the wife and I are debt free. Just going to hang on to the tolerable job until 65 for the medicare. Then I can fully retire or just reduce my hours and drive on, leaving the option to walk out the door at any point!
If you look poor on paper and are ok w living on a lower income , you can get Obamacare
For
Practically nothing monthly but w a high deductible
Pension, 401k, Roth, house paid for, emergency fund, va healthcare, old car i am good
Yep, you are. Congrats!
Hi Ronnie! Thanks for another great video!
Suze Orman is talking to the 1% apparently. That's ludicrous.
Excellent video, great piece of advice, I'm close to retirement and very much appreciate this
Very interesting Ronnie
One of the things that probably should be a part of retirement discussions is the simple question of DO you live in a place that has Low Cost of Living? Because you need to, unless you have a pile of money. And even IF ya got a pile of money, it will last WAY longer if you live in a place that has a low cost of living.
That's an excellent point. I happen to live in an area with a lower cost of living and I it makes a lot of difference.
I am surprised that pre-Medicare insurance premiums and deductibles are so high. Using a Kaiser family foundation calculator, insurance for two, withdrawing 110k per year, the premium was 800 per month with 18k deductible. Pretty healthy at this point, so I’m doubtful we would be spending 18k every year in addition to the premium
Great points and spot on. A very down to earth video. I will add something that seems to get missed in most videos similar to this one. As this video, almost all refer to the married couple. The retiree that is single get missed. And even more so the single person with no children in life which is becoming the trend. From experience it is significantly less costly to be single at retirement as long as the points in this video are followed. So much so that some that live in low cost of living areas that are 65 plus that have a high SS payout can live very comfortably without multiple income layers. Other factors must exist. But, this fact is real if the stars line up.
Very true & accurate. In fact, I've done a video about living on SS alone; that it's very doable, especially if one lives in low cost area. Thanks for commenting; your thoughts are insightful.
4 signs I'm ready to retire. My youngest of 4 is 33. I closed the bank of Dad!
Forgot to add we live in northern Ontario Canada we dont have to pay for health insurance
You don’t pay for healthcare? You just get taxed to death!!
Sensible spending is my problem 🤦🏻♀️😔 I like expensive things 🤦🏻♀️
Better have a boatload of money if you want to comfortably retire. I retired at 57 and exchanged one form of stress for another. I could love it but….
I suggest that "net worth" be calculated without including your home residence equity. Most people (especially married couples) are very unlikely to sell and use their equity for living expenses- they have to live somewhere, and uprooting their lifestyle is very hard for most people. Home equity is dead capital. But it's a pleasant illusion for many.
Yeah, my wife doesn't want to move. So it doesn't matter if we have $30k or 300k equity. To your point. It's worthless. We could sell next week and rebuy cheaper condo and and be mortgage free. But nope.. gotta have extra bedrooms used for storage..
Another fantastic retirement video from this channel! Thanks!
Thank you.
Great Info! Nice tone!
Thanks Ronnie!
I want $100k a year post tax at retirement. Today at 4% means I need $2 million plus social insecurity. The cost of everything doubles every 24 years which is when I will retire meaning I need at least $4 million post tax. I’m on track.
Good for you don’t forget to consult your financial advisor
Do you need dough to travel? Do you live in expensive area?
I am 68 and still working. Those 7 divorces have delayed my retirement indefinitely.
😂😂😂
Good perspective. Thx
Great video's! I am finally pulling the trigger Feb. 2025.
you make it sound easy
Well said Buddy !!
Great video Ron, you shared a lot of good sensible tips. I think there should be a #6 Emergency Fund. I'll be 67 in 4 years and I'm waiting until full retirement because I am single and will still have a mortgage when I retire. I would love to retire at 65, but my house needs a new HVAC, new roof, replace the back steps and many other repairs needed. So even though I am debt free and have a 403B from work, a small amount from my ex-spouse military retirement and money in Roth CDs. When you own a home, have pets and are a senior, you are not set for life. When you're low income or middle class it's hard to save money and when stuff happens (i.e. health issues, home repairs, car repairs etc.) your retirement accounts can be drained quickly. That's why I have seen so many seniors working part-time at Wal-Mart, Burger King, Big Box hardware stores etc. Many of us will probably still need to work part-time after drawing social security to build up our emergency funds. Just something to think about folks.
Well said. Thank you.
If you have a lot of home equity, it might be best to downsize now while house prices are at all time high. Find a smaller and newer place, you don't have to drop $20k repairs in.
Make sure you enjoy your 60s. When interest rates drop over the next 2 years, the housing market prices will drop because us older generations (boomer and GenX) can finally give up our low 3 to 4% mortage loans and more houses will be on the market.
But if you like your home and it's affordable, just do a project at a time. Just use a company like HomeDepot or Lowes to do the installations so you don't get ripped off.
I'm 60 & just got myself a surrogate child. Now I've retired from my job, I've started an 18-year contract to look after a child.
Hopefully, the child gets a loving, safe caregiver.
Health insurance is a key thing to lock down. We are doing ACA because our incone is below the upper limit for stipends. It will cost our household of two 300 a month to cover both of us!!. We could bump up to gold plan for about 450 a month. Strangly enough when we get to medicare. It along with gap or supplemental will cost us more .. oh well, by then SS will be coming in and more than cover all our exoenses so investments just become funny money.
I spend money on Martin Guitars but gives me many hours of Great cheap fun by my self because they are paid for. Just drink coffee when playing guitar we get older we give up the scott and wiskie
Yep. Many hours of fun.
@@AResilientLife Guild Guitars are vary good and they are just diffetent from what everyone thinks they like. Martin and Gibsons are just getting to be to popular and over rated. Just my thoughts we are all different :) 👍
Look forard to more videos about retirement.
Great video! I'm good on all but #4. Still trying to figure out the best option for health insurance for me.
Yes, health insurance is really a challenge. Thanks for commenting.
I discovered that I am better off without any of the Advantage Plans which are nolonger accepted by all hospitals. Most larger towns have an office run by one's State Insurance Commissioner, and run by volunteers who are trained to offer free advice, which you may find helpful. Just a thought.
I've been on the ACA for about 2 yrs. Seems like a reasonable choice.
@@shadyvistaexcept that now they are going to do away with it…
Great video.
I am debt free except for my home
I have enough equity to sell and buy something smaller just can't find anything that doesn't requires major renovations😢
This may not be what some consider early retirement. I retired at age 63 1/2 with 18 months of coverage from my employer COBRA benefits. Then Medicare and a supplement insurance policy at 65. Used the time before retirement to get debt free.
Sounds like an excellent plan. Well done. We're debt free too. It's a game changer.
I put up with a ton of crap at work only because I was vested in my pension and health insurance would only be $300/ month.
Mortgage and vehicles paid off. 401k and other investments.
Burned rubber leaving that parking lot one last time. 😅
On pension alone it's not difficult. I'll take SS in 4 years @62, then distributions from 401k.
Sensibly frugal, like the man said.
I am 75 and still loving my sources of income. The extra $4000 month really helps. Takes the pressure off. I’m hope to continue to 77 or up to 80.
What are you spending so much money on when you are 75? $4000 a month on utilities and food? Do you travel? Buy things for grandkids??
I am 64 still working but thinking of retiring at 65, married, debt free, $700,000 in Roth, Traditional, 401k. $130,000 in emergency funds in CDs at 5 percent. $4200 monthly military pension. Estimated SS for me is $2200. Wife has $1400 Social Security Disability as well.
You're set!
What are you waiting for? Retire today!
Yep health insurance is a roadblock
Look into ACA. If you draw 19,780 out of IRA your monthly payment will be around $100
Has anyone considered the toll that taxes are taking away from our retirement income?
Thank you 👍
As long as inflation doesn't go nuts
please write a book ,we will support you and purchase your book.
old school las Vegas crew.
og
Vinnie
frank Santini