I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.
Things are a bit strange right now. Inflation is making the dollar weaker for buying things like basic needs, but it's getting stronger against other stuff. So, stuff like stocks, houses and precious metals aren't doing so great because folks are putting their money into banks for safety but I'm worried about my retirement savings losing value fast.
If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets. It's better to hire a skilled financial planner especially if you're not one yourself. I hired one after my retirement pension took a hit in April due to the crash.
Sharon Ann Meny, just check her out. It's better to hire a skilled financial planner especially if you're not one yourself. I hired one after my retirement pension took a hit in 2021 April due to the crash.
It depends on which statistics you look at. For example, if you compare average wages vs. average inflation over the past 40 years, wages have actually been quite competitive. But that's AVERAGE. When broken down by demographic, it's a completely different story - wages for the top 1% income earners has risen by 140% over 40 years, but wages for the bottom 90% has risen by less than 20%. So it's not inflation that killing us, it's wage inequality, exacerbated by tax policy that caters to the rich.
I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash of $780k into stock and wait for a housing crash or should I go ahead to buy a home anyways.
Gaining financial success requires having access to important knowledge. I am familiar with people who prospered during the Dotcom and 2008 crashes. In the present market, I'm also looking for opportunities. Possibly your invt-advisor could assist me with this.
Never eat out alone? That’s a very strange one that I totally don’t understand. I worked in restaurants in my early years. There were people, especially older widowed men, that coming in for a cup of coffee and a muffin was the only human interaction they got on a day to day basis. I became friendly with several. It was a godsend for them to have that interaction and they usually knew and said hello to the other “regulars.”
The way I took what he said was not to just get in the habit of just sort of mindlessly eating meals out to the point that it's cutting into your retirement income.
I'm a 67-year-old single woman who was able to retire comfortably almost six years ago. You have a lot of great information here except for one comment: "never eat out alone"....if I followed that advice I'd never eat out again!
@@georgeearling905 Hold on😳😳. I had no idea he was this renowned. I have come across him already. Yea I was a cook for 4 years and was going to start school to become a full chef and then the pandemic hit literally a week before classes were supposed to start. So yea being in the hospitality industry I lost almost everything. So I had to start over. Things changed when I came across Chris Stewart who is a disciplined trader. I have been able to make profits consistently. This pandemic helped me take my finances more seriously. Thanks for your help once again Chris.
I'm not kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it Investing is a long-term game, so focus on the long run.
I can’t focus on the long run when I should be retiring in 3years, you see I’ve got good companies in my portfolio and a good amount invested, but my profit has been stalling, does it mean this recession/unstable market doesn’t provide any calculated risk opportunities to make profit?
There are a lot of strategies to make tongue wetting profit especially in a down market, but such sophisticated trades can only be carried out by proper market experts
I agree, my profit has been consistent no matter the market situation, I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2020 this time with guidance from an investment adviser that was recommended by a popular economist on a subreddit, long story short, its been 2years now and I’ve gained over $850k following guidance from my investment adviser.
@@Oly_laura My advisor is ‘’Catherine Morrison Evans’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
I am new to the stock market. Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks.I believe having 75K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a FA) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities
The ten things are: not moving from acquisition to consumption lifestyle; financing big purchases on a credit card; eating out every meal; misalignment with your partner on retirement goals; underestimating your retirement needs; no long term care insurance; not talking with someone knowledgeable about financial planning; failure to change your money habits after retirement; falling for a financial scam; failing to minimize your tax liability.
Simple if you are still relatively young and have some time to invest. Open up a IRA or Roth IRA in a low cost S&P500 or Total Stock market fund. Both offered by Vanguard. Fidelity may have a totally fee free one, I'm not sure. Then just keep investing the maximum amount each year and as long as we're not all speaking Chinese and America is still standing, you're going to be really happy with your investment. Patience is a virtue.
Love your videos. But I must strongly disagree with you about eating out alone. I’m a single man in my mid 50s. I went from boarding school, to college, to the army, to a career in real estate. My mother was a career professional who detested cooking and never cooked. I never learned how to cook and I hate the idea of it. I keep very little food in the house and I prefer it that way. While I have great friends and enjoy their company quite a bit, I am someone who also enjoys his own company. There’s nothing more I love than grabbing a copy of the FT and NYT and grabbing some breakfast out after the gym (alone) I have multiple neighborhood restaurants where I enjoy lunch and dinner or cocktails. I’m friendly with both the staff and other patrons. My cash flow covers this and it’s a way I truly enjoy spending my free time. I do the same when I travel (I’m currently in Mexico) and it gives me tremendous pleasure to socialize with others out in restaurants and bars, or to be left to sit and quietly enjoy a meal and a drink on my own. Not everything is a financial consideration. Yes, I would certainly save lots of money by going to the supermarket and preparing my meals at home. But I would be very unhappy and depressed and wouldn’t enjoy either the time or the food. Sometimes it’s best not to stray into areas that aren’t strictly financial. There are reasons that people do things that are well beyond just the financial.
Why don't you try talking to someone else in line and see if they want to share a table? One of the best conversations I have had was with someone who was also on her own that I asked if she wanted to share a table. The restaurant may appreciate that, too.
If I had to worry about a new furnace, eating out, or changing my life style, I wouldn't have retired. For the most part I pay for everyone I eat with. I have a lot more time to spend money now ! My dad paid at restaurants, for years, because he "wasn't sure I could afford it" according to my mom. Even when my company was making more money a month, than he ever had a year. LOL Retiring comfortably isn't about how much you make, it's about doing without some things when you are young, investing that money, so you don't have to do without anything when you get older. My friends made fun of me always driving older used trucks for years. The money they spent on new cars I put into real-estate. Till I retired 20 years before any of them. Then I was "just lucky". LOL
Our family generally cooks it's own meals. Restaurant food quality and service has gone downhill exponentially since COVID. Cannot believe the dreck that is being served at high prices by shoestring staff. Don't even get me started on out-of-control tipping practices.
Longterm care is a puzzle. I spoke with someone regarding the possibility of acquiring the insurance. What I was left with an uneasy feeling...that is, pay X number of dollars per month, then if you need it, it's limited, there's no unlimited coverage. In addition to all of that, if you don't use the benefit by your mid-eighties, they get to keep the cash. I thought it was much better to save, invest and use what you have if it's needed. If you do not need it, no problem, it's part of your estate.
The way I use credit cards is if I can time the purchase of something, I do it the day after the statement cutoff date and then I have up to 40 days or so to pay it off. I know what you are thinking, but I have paid off my credit card balance now for well over a decade every single month. If I cannot time the purchase, it doesn't matter. The thing is that I constantly use other people's money and pay off the statement every time, interest free. Credit cards are a convenience for me.
I do this as well. Hoping you have cash back rewards as well. I make 6% on groceries and 1-2% on virtually everything else. I even pay bills with cards to generate money. It;s not a lot, but every little bit helps.
The 401k is good, because retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million. So it really does. It's also a very quick way for people who are close to retirement but with little money accrued. I wish more people knew about things like this.
My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. Haha.
I don't know, but I think there are lots of things that the public should be educated about. When I learned I could make way more investing in the market than the 401(k), I was a little pissed, because why wasn't I aware of that?
@@ericmendels Please, I have been planning to switch to a financial advisor. I have about 85k spare cash. Do you use a financial advisor too, and can I get a recommendation?
I'm not one to give investment advice, because I believe everybody's situation is unique. However, I work with Sharon Louise Count, and all I can say is that she's really good at what she does.
All good advice but, when it comes to long term health care, in the USA, that's a total crap shoot. Years ago we looked into a long term care insurance policy that would have covered any needs we might have, very well. However, it was way too expensive. Now that I'm almost retired insurance companies won't even consider a long term care policy for me without charging a TON! So, we're just rolling the dice and hoping we don't need it or hoping we can get a medicaid bed if we do. Neither is a good way to go but in the USA, long term health care is costs are not affordable for most of us...just the rich. Maybe I can talk my wife into moving to another country.
I once purchased some Meyer's lemon trees online. The trees were fine and did well. Yet a few months later I received an email from one of my lemon trees claiming it was stuck at an airport in Asia and desperately needed me to wire some money so it could get home. But I wasn't born yesterday. I went out and checked and all three lemon trees (the tree in trouble didn't specify which one it was) were still planted in my yard. It was a good thing because I'm pretty sure none of them even had passports. All I can think is that the nursery had its records hacked by someone with a terribly poor command of the English language.
Thank you Mr Schmidt. I have saved all my career and lived with the same take home pay as I did in the 90's. As my income went up I increased my 401K. Retired at 61 and between pension and SS, I now have 150% more a month then when I worked! Plus got my savings to boot. So save early, live below your means and you will be ok!
Yep, sounds a lot like my strategy. Hopefully, this channel attracts young people, so the wisdim can be planted and planning begins early. Once it becomes a routine, it's much easier and the benefits are considerable when needed.
Your advice is very good. Thanks! Constructive criticism: there are 3 separate glare rectangles in your glasses. It'd be good to look into how to avoid that "youtuber glasses glare avoid". 🙂
The #1 issue that could blow up your retirement is divorce, unquestionably. Long term care insurance is really only appropriate for a small group of people. There is nothing wrong with family taking care of you for the last 2-3 months of life, which is what most people need for care and LT doesn't kick in for some time anyway. Good used cars work well whether you are working or retired, I don't even buy a car unless it is 10 years old. In general, people don't change habits much in retirement, so good and bad financial behavior tends to persist.
One year into retirement, the issue I struggle with most is the psychology of shifting from a saver to a spender mentality. I fostered the saving concept for 40 years, breaking out of that mode is incredibly difficult.
I've been retired for 15 years now. I understand what you're going through. In my case, I have some money squandered away for future needs. I'm at the age that mortality come into the picture now, so I've been getting things (within my means) that I want to do before it's too late. I knew people who are gone now that regret not doing things and on the other hand, knew some people who did things before they passed. I'm trying to imitate the later. Enjoy your life, you only get to do it once.
Knowledge is power. For most people the fear comes in when we don't have a data driven understanding of what the real risks are. I use Mint and FICALC to take away from the uncertainties and make me a stronger decision maker.
@@GiantBlue1963 I definitely don't fear anything, I expressed a difficulty in changing my mindset on spending. I also use FiCalc which is an excellent projection tool.
Question do you have any recommendations for a good dividend portfolio? I want to start one here in the new year. I am a newbie and want to know what would be more smart buying ETFs? Individual stocks, reits? Or a mixture of both. Also how many do I need in my portfolio? I plan on putting in about 100,000 to start than continue to put money in monthly. Any help would be greatly appreciated
@@bentodanielbd9569 This was me early last year, I make over 250,000 per year but had nothing to show for it until I met my amazing FA ,Donald Ben Taylor, at a business summit and he agreed to help me through digital assets, I got my first mill this year. In my experience, fear can take control if waiting too long to set investment goals, but that should go away once you set the plan into motion.
@@kushgangoficial876 Thank you, I really needed to hear this and by the way I did lookup Donald Ben Taylor and I must say I am more than impressed with his achievements, exactly what I have been looking for, since I don’t have much time to myself, its better an FA handles things for me.
The last check I physically wrote was 10 years ago. I always used end-stub checks and did the math on the stub as intended. I told my kids and the youngsters who worked with and for me to do the same thing. "If the the amount of the check is more than the balance on the stub, YOU CAN'T WRITE THE CHECK"! In 70+ years, I never bounced a check. 😊
Make sure you have the homeowners' exemption on your property tax, if allowed. It reduces the assessed value a little and will reduce your tax liability. Many people are unaware of it.
My solutions to those: don't vote Democrat, rent, live overseas. Planning to spend most of my time exploring the world when I retire. And international health insurance is a fraction of US health insurance.
My favorite scam was when someone called and said a car with my registration was seized with 20 pounds of cocaine hidden in it. I feigned horror and put the phone down. I don't know how long they waited but I hung up after 5 minutes.
“Never eat out alone”. Well, after losing wife and parents over the last five years, I’m not going to take this advice. I need social stimulation and while I may eat out only once a week or every two weeks, I’m not going to stop. May be good financial advice, but not good mental health advice for me.
I blew my retirement and it's plan on my dad. I moved across country to care for him, of course I had to support myself meanwhile. I know I did the right thing and, if given the opportunity, I would probably do the same thing. In my family I was raised that family takes care of family, the old, the young and the sick. Then, my parents said I didn't have too. Please...
@@Bianca-yt7pd It was funny how it happened. I told my mother I was going to Cali to take care of my dad. She asked if I would write her. I said no, she was going with me (she was sick too). I have moved cross country a few times since. It's your parents! They changed your diapers, cared for you in sickness and health, taught you a lot of what you know. How could a person not remember and what greater love can you give than to care for them in their time of need. If you didn't make it. I'm sure they know where your heart was on the matter. Don't beat yourself up.
I've been getting emails from an uncle's name, but I never open it. *When I check their email address by hovering my cursor over their name, it's always some crazy combination of letters, etc. and not a real email.
The only time I eat out alone is after I leave a doctors office and get good results or news. I sit in the car, look at the sky and think, "whew" beat the grim reaper's house advantage again. It's the only time I ever sit in my car, look at the horizon and eat a McDonalds cheese burger, fries and a coke. Cholesterol & indigestion & high blood pressure from the salt be damned.
Thanks, I am forty years old. I plan to retire early, but I have $381k saved up. I believe my retirement will be a blessing if I can do something profitable that will increase my savings. Please leave a comment if you see this and can assist.
Inveesting and saving can be completely upended. This could mean your current financial plan might leave you without enough money to last your retirement. A recent Vanguard study found that, on average, a hypothetical $500k inveestment would grow to over $3.4 million under the care of an advisor over 25 years, whereas the expected value from self-management would be $1.69 million, or 50% less.
@@alexanderdimitar7154 In other words, an advis0r-managed portfolio would average 8% annualized growth over a 25-year period, compared to 5% from a self-managed portfolio
@@kansasmile I agree; I've been in regular communication with an inveestment advis0r for over 17 months. It is now extremely simple to inveest in trending stocks, but the issue is determining when to sell or hold. My advis0r jumps in to help me with both entry and exit points. I've amassed nearly a $150k from a $30,000 capital in less than 18 months.
@@smithmurphy I’ve actually been looking into advis0rs lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?.
Her name isJill Marie Carroll, cant divulge much. Most likely, the internet should have her basic info, you can search her online as she is SEC and FINRA regulated.
1. Don't spend $80 grand on a brand new pickup truck, or even worse, finance one. I buy nice lease-return vehicles in cash with only 20 or 30k miles for less than half original MSRP. I do all my own maintenance too, but that's not necessary--I just enjoy it. I'm 59 and semi-retired already. Just work 10-15 hours a week to keep my brain minimally functioning ;)
Good video Geoff ... But there's also the "bad luck scenario" where you've saved into retirement and done everything right, then a 16-year old smashes into your low miles 10-year old car and totals it, causing an unexpected expense you were ill-prepared for. Buying a car post-retirement can be quite the burden.
Another excellent presentation. I would add that an annual budget process is important. I get out an excel spreadsheet and do an annual projection. (I try to budget to a planned no decrease in investment corpus). The difficult part will be identifying large expenditures like annual auto and home. Another big one is property taxes. And the biggest is your car. Make sure you give yourself a lot of cushion. Miscellaneous is a killer. Your idea on tax planning is right on. I am 69, retired at full SS age 66 and have not paid any income taxes in 3 years. As I am sure you are aware the RMD rules have been extended (again) (people over 65 vote), and I won’t be paying taxes until the year I turn 73. I will be increasing my taxable distributions in 2023 to pay a little. For me, I love making improvements on my home. But, with inflation we have curtailed some of the big ticket items I would have liked to have done. Another plan we have is to go back to one auto in about 5 years. We lived with one car for a year and it worked out pretty well, but we bought another. Cars are a huge cost that can be somewhat controlled. Lastly, I would recommend again that you look into selling your time to CPE products. These presentation really are excellent.
You should create a video for those forced into retirement. Many older Americans cannot get a job that pays much. Companies cry about the lack of workers and still will not consider older workers.
2:32 “Retirement is a time of harvesting rather than acquisition. And directing your funds to maintain what you have rather than to build more or get more stuff is vitally important if you want to live well in retirement.” Mind blown. Thank you for that perspective!
Thank you Geoff! Another great video. I would add that major dental work is often an unexpected expense. I am 62 and seeing many of my friends suddenly needing crowns and implants, or dentures. Even when we have taken great care of our teeth, they can be vulnerable in old age. Our smiles are so important to our self esteem, as is our ability to eat the foods we love. My 93 year old Dad just had a few dental implants. He says it’s a matter of dignity. He says he wants to die with a full set of teeth! At his age, he deserves to do whatever he wants! 😁
A wise thing to save for! When I think back at parents and grandparents, and how many years they lived without their teeth, it is about dignity and comfort in your old age. I didn’t give it much thought back then but it really must have sucked!
Right? I can’t even stomach (literally) restaurant food anymore, there’s so much garbage in it. And a sit down restaurant is stupid expensive, for what you get.
I agree with nearly all your advice. I know that not everyone can handle credit card responsibilities. I had gotten into trouble with my credit cards years ago when I didn’t pay my total bill at the end of the billing period. I have a American Express Reserve card…I know, but I have been traveling quite a bit and use my credit card for everything! I have to make the purchase anyway so I thought that I should benefit from the flyer miles. My husband (who is even cheaper than I am) flew to my daughter’s graduation in St. Louis MO from NYS, for $11.50 each way and we were updated to first class. The entire balance is paid off every billing cycle. We even put his tractor on the credit card.
Yes, Geoff, this information is truly important and very much appreciated! I’ll definitely be looking forward to your next video regarding how to find and select a financial planner. Thanks!
I am 57…9 years ago l got divorced. It devastated my finances. I had to start over and change everything about my life. However…it’s survivable…..l have reasonably good health. When my alimony ends…at 65…l will get a huge increase in take home pay $32,500.00 as a matter of fact. One way or another you survive. And you learn the value of a quiet sunrise as you exercise….a good cup of coffee as you watch the waves on the beach in the fall when the crowds leave….that simple pasta you made for yourself….. Many people have less than you or l…and they find happiness. So simply…DONT QUIT!
Unless you're blessed with unlimited income, live below your means. You'll be glad when you're in retirement because of inflation, especially these days. I learned by the seat of my pants that in retirement, I can live fairly comfortably on half of my working career income. In my case, in retirement, I still live below my means to be able to afford inflation. Yes, I did say to be able to afford inflation.
The LTC insurance is ripoff these policies never payout enough for the cost of the policy & most people cancel because of yearly increases. A better choice is to self insure, a reverse mortgage or medicaid planning with a reputable estate planning attorney.
I understand your point about the expense dining out a lot in retirement due to lazy habits. The catch is nutrition and value per person. As a mom of sons and their ravenous dad, eating out long ago was cost prohibitive and was smarter done at home. That great quality/value now sadly isn't possible for me as a 65 yo widow. I can't buy or use up the economy packs of food. Salad greens and other fresh veggies rot in the fridge despite my best attempts. Cooking an economical recipe leaves me eating it for a week or reheating it after being frozen 😳. In frustration I lived on frozen chicken nuggets and canned goods til the resulting anemia had me in a mess. No easy fixes
Most financial advisors use a cookie cutter approach based on your risk tolerance. My previous advisor invested my money in 2 bond funds and 2 total stock index funds, 2 US and 2 International . Do you think it is worth paying for this service if you could buy those index funds yourself?
It depends what they're charging, and what else they do. You can get "free" robo investing from a variety of sources these days. (I put free in quotes because they all have their ways of making money off helping you but it doesn't necessarily show up as a fee. For what it's worth, I doubt you're getting good value in fees, not because there is anything wrong with a 4 fund portfolio, but because it's likely being charged too much and not getting enough other high value services. You have to dissect what you're getting, what you think each piece is worth and if it's good value.
@@GiantBlue1963 i have tried Fidelity for 1.5%. They bought many Fidelity funds with high expense ratios . I left after a year. Then I went to Vanguard for 0.3% and they put my money into 4 Vanguard Index funds. They just do the rebalance every 6 months. Now I don’t have a financial advisor but would love to have someone redo my portfolio because it is a mess now .
@@Ccwuhccwuh The Vanguard approach with rebalancing pretty much guarantees that your portfolio isn't a mess. I'm pretty sure you're in a globally diversified portfolio that tracks overall worldwide returns. Are you overpaying for it? Yeah I'd say so, it's not sophisticated and it doesn't diversify as much as they should be offering (the Schwab robo adviser for about the same real cost has a far more diversified portfolio and over a certain balance includes things like tax loss harvesting). You can do what Vang does yourself or use M1 where you can order a rebalance with a click (you'd have to check if they had funds you liked as a replacement). Just food for thought ... but it's more important for you to know that you believe in the theory and implementation of your portfolio, because there is no such thing as the "always best portfolio". In this way, knowledge is power in that it enables you to be both an informed, logical and confident decision maker.
Cut down on unexpected expenses by saving up for them ahead of time. Was always taught, expect the unexpected. Just had an unexpected root canal for $2000. No big deal because I had already saved for it the last 20 years. Same with car repairs, new furnace, roof, air conditioner etc. If you prepare for life’s unexpected expenses you’ll be fine
So, I buy most clothes second hand, conserve my driving habits, adjust heat/cooling, eat no animal products as they are expensive and for my renal health, hang dry my clothes, no cable tv, inexpensive cell service, eat out rarely. Use library extensively. Vacations are few and far between. I don’t get my nails done or have a gym membership. 🤔 Hmmm what else is there to cut???? And I’m not retired.
Thank you for covering these important issues, but I think there are some alternative answers. I also think it is very important to separate advice for those with children and those without. The impact of children in old age is significant and if you all get along, very positive. Taking a few of your points: Cars in retirement. I live in England (Old England : )) and as I'm retired spend time in my camper often in seaside town where a large proportion are retired. Its is now very noticeable that on retirement people either buy a classic car or a Tesla. I have seen whole lines of traffic in which pretty much every car is 50 years old a new Tesla. Both options look very sensible. Credit cars are less of an issue here, but high pressure selling of equity release is and this is one of the issue that divides those with children from those without. As a parent I would never release equity from my property, I have friends with no children for whom this makes a lot of sense, why die rich with no one to leave the money to? Dining out, this is one of life's pleasures and we retirees want to be part of that. We found that the pleasures were about company and not having to cook and wash up, so we organised regular dinner parties so that we cooked in bulk, those who could afford to could host at a restaurant, those who could not would cook. No one was pressured to spend but we had nice meals to look forward to and the home cooked were usually nicer than the eat out. Covid knocked that back and we are just getting going again. Couples, yes, if only there was a solution! Hobbies that keep you apart seem to work well : ) Financial needs - our experience is the opposite, perhaps that's is because the UK has free healthcare and for most UK home owners they will have paid for their home outright. I already have enough clothes for the next decade, all I have to do is keep my waistline in check. Long term care. A true disaster area and in the UK care costs can rapidly reach the value of your assets. The UK policy is to keep people in their own home as long as possible, but this often relies on support from family. Those without close family struggle. One option is to spend all the money and place yourself in the care of the state! The rich who can afford it and the poor who can't are OK, its those in the middle who suffer. Scams. A huge risk. My mother sadly passed last year but she was living independently and in sound mind until her death at 97. She lived alone but near and it became clear that she was being targeted by increasingly sophisticated scams. We put in place a power of attorney for myself so that all transactions required my approval. This gave us both confidence that her money was secure, but the immediate benefit was that she would simply say "my son has power of attorney over my accounts, you must speak to him". This stopped all the scams. This is another important issue where children and close (trusted) family are a huge benefit. One time the scammers were on the call and had got her very worried, but we had an arrangement - do nothing without calling me. She rang on her cell phone with the scammer on the land line, it was after midnight. I took control and we avoided being scammed. I then spent some time saying how proud I was that she had called me no matter what the time. I later found an intelligent professional friend who lived alone got scammed for £25000 on the same scam. Tax, I hate paying tax in retirement but on the plus side I finally have the time to understand the tax system Here in the UK inheritance tax (IHT) is very costly, but has many exemptions while you are alive. Those who trust their relatives can pas on their estate with a low tax bill, those who do not have to pay. So the UK IHT advice is "get along with your family now and save a lot of tax later". There is one important issue you have left out, the relationship between physical capability and spending. If you want to go skiing in retirement (for example) do it while your knees still work. Don't put off sky-diving or long distance holidays until you have heart trouble and can't get insurance. Its too easy to be careful until its too late to spend.
I always enjoy your practical and succinct style, Geoff! Oh the irony of life: There is a comment series below that is the EXACT scam that you mentioned in the video about “someone” who will be the best investment advisor ever. I suppose ignoring these sorts of things is the best practice. Ugh. Thanks for your timely content, as always.
I have been watching his video's for some time now and find them to be reality based, very good information. I left the work world in 2017. I didn't have a Holy Schmidt back in my early life but happened to cross paths with a CFP. It has made all the difference. I clocked out at 60, can live comfortably because I have utlized most all of Geoff's recommendations for the past decades as well as now. I still watch all his offerings as a fail safe going forward. Younger folks would be well served to tap into this knowledge base, but based on what I see, the "i'm entitled to it now" mentality that so many have, their futures as they age may not be so good. I have passed on everything I can knowledge wise to my kids, hopefully they will be smart and follow the information. Don't plan on leaving too much to them since they have the knowledge, skill and ability to make it themselves if they so choose. Live life well, especially if you have worked hard and long to get to a solid retirement.
I love your videos! I always learn something. Thanks! One question I have for you is I don't have a financial planner, but I have invested my money on advice from trusted sources and I am doing very well. I also hired a CPA last year who I plan on keeping. Am I safe on getting tax advice from my CPA rather than hiring a financial planner? I'm 4 years from having to take RMD's. Taxes are minimal currently.
I retired one month ago and my biggest concern is projecting accurate Federal and State taxes based on my new liberation. One glimmer of hope, legislators in my State are moving forward to repeal existing pension taxes. Fingers crossed...
My daughter and son in law make well over $200k year even though they are only in their 20’s yet when we go out to dinner I alway pay because I’m the Dad. That will be a hard habit to break.
I've come to realize as an investor that instead of letting my money sit idle in my savings account it is more productive to invest the little available and build a portfolio from the accumulated profit of investment
(1) Time stamp 3:54: that fried chicken hasn't been completely plucked. How gross. (2) one of my friends ate out all the time by himself in his 40's while making $100K/yr and had nothing to show for that windfall income after a few years. (3) I suffer from the acquisition of things that require maintenance in my old age and that are difficult to divest in their current condition. That is my burden. (4) Financial retirement planning is a careful balance: you have to be specific enough to cover your planned expenses and contingencies, but not so specific as to dictate how you'll be spending each day, because you need flexibility in your decisions to take advantage in what retirement has to offer. Being too specific invariably leads to disappointment. So finding that balance in the extent of financial planning is more important than mapping out each day. (5) Minimizing your tax bill does not necessarily equate to a happier retirement. I could minimize my tax bill by selling my house and living out of my car. Will I be happier? I'll let you decide.
Great information as always….thank you and I can’t wait for your video on choosing a financial planner, funnily enough I was about to ask that when you said it. Have a wonderful week 😊
I’m glad you mentioned the person whose HVAC (heating ventilation and air conditioning system) that stopped working. These cost around $8-35k to replace, retirees in their home will very likely need to be replaced during retirement. Be prepared, budget in advance!!! Estimated lifespan of various heating/cooling systems: Central air conditioning units:12 to 17 years. Heat pumps: 10 to 16 years. Furnaces and boilers: 15 to 20 years. Geothermal heat pumps: 25 to 30 years; ground loops will last upwards of 50 years. Solar: 25 to 30 years. Evaporative cooler: 5 to 15 years.
You offer great advice for retired folks! I am fortunate at 68 to have all my senses, a very nice nest egg with the ability to live comfortably using the 3 - 3.5% spending guideline while still passing a sizeable estate to my heirs. My biggest fear and perhaps you have spoken about it in other videos is finding someone who can care for my financial well being when I begin to lose the ability to do it myself. I currently have a daughter and 5 grandchildren, 2 of adult age. No close relatives or trusted friends and the thought of having an attorney manage my stuff gives me hives! At this point in time I have no confidence that any of them are up to the task which creates a real dilemma; who do you turn to for that help? I bet I'm not alone in hearing your advice on this issue..:)!!!
A financial you tuber I watch said his savings were wiped out when his wife got cancer. She survived and he has re-built his his wealth. Fortunately, the health policies aren't capped like they used to be but the out-of-pocket costs can be staggering.
I won't/can't support a car once I retire. I don't like to drive anymore anyway. I will use public transport, uber, or my legs. It will save me a lot of $$$.
You address the long-term care question as if it is a minor afterthought. This is a serious issue, and both services and premiums are out of the reach of many retirees. Long-term care needs can ruin a retirement, but being able to truly plan for them is an equal problem.
That’s why I brought my mom to Mexico. We can afford to live, and she can get the 24 hour/day care that she needs. At 89, she’s stronger and healthier than when we came down more than 3 years ago!
Don't eat out by yourself, ever? That's bad advice. It presumes that the place you are eating at is overly expensive. It also disrespects anyone who is getting out but may not have a partner. The cost relative to the value to the person (mentally, socially, etc.), is something you have not considered.
I just retired last October, a year before I retired my wife and I, every 4 to 6 months would sit down together with you financial adviser/planner, and mapped out our plans. I told our financial adviser what we were going to do, sell our condo, purchase a new manufactured home in a 55 plus community, turn in one of our lease cars at the end of it's lease. He told us with our retirement portfolio it was not necessary, that we would be in great shape, but we did. We are very happy with downsizing, little to no debt and set up a great yearly travel budget, to travel in our motorhome.
@@sct4040, Before we purchased our new modular home in the 55 + community I did my due diligence on just that, written in the LRA, lot lease contract the rent can not be raised over 1% of the GDP, it's called a "Lifetime Rental Agreement'
Bringing someone into your life that turns into a spendaholic is damaging to retirement savings. I've worked at jobs with fellow employees that had shared their sad stories about their 1st marriage that had ended in a divorce because of this.
I am fortunate to have a pension and started collecting SS Survivor's benefits at age 60 (my wife passed 20 years before but had worked long enough to collect) I sold my house and moved into a condo on the ocean which was $90K more than what I sold my house for and took out a mortgage at 2.99% while putting the money from the house sale into an IRA which is relatively conservative. It generated about $40K since 2022. I think I have reached a balance in the sense that my checking account only goes up and down a bit when bills get paid, or a deposit is made.
Don't feel that you have to "keep up with the Joneses" to be satisfied with your life. Train yourself to be content with less, while you save more for retirement
Thanks for calling out these multi-account advisor scam bots, ( such as "I love Tesla stocks etc". in this comment section). I've noticed they often begin with a vague piece of good advice that gets a lot of thumbs up.
I've looked at Long Term Care insurances and decided to set money aside in my retirement account for LTC in lieu of paying monthly LTC premium. Much like with car insurance. I bought a new car with cash and insured for liability only and set money aside the difference between full coverage and liability. After ten years, I was able to buy another new car with money that I saved on full coverage insurance. There are risks involve in my method but it's the risk that I'm willing to take for the rewards.
I believe you made a wise decision. I enrolled in LTC and it's set to dramatically increase or possibly go bust this Spring. Looking back, investing those monthly premiums would have been far more prudent.
@T Raybern I don't think so after have done a thorough research. The estimated cost for care in the final five years of life is $367,000 for people with dementia and $234,000 for those without. Just to have extra cushion, I have saved and set aside little over $500K in index funds as of today for LTC Self-insurance separate from my retirement account. If I didn't need LTC before I die, then all my assets will go to my kids. With LTC insurance, there is no rebate because I didn't use it.
but the email said the Nigerian prince has 100M for me, I just need 50K to get it though custom... Long Term care insurance , no thanks. Our company had an insurance company offer that. I didn't partake, but those who did were promised premiums would never go up, less than 5 years they did, and big. " we miss calculated" or some bullshit like that. No kids to leave money to, not worth it to me. Eating out is my main problem, which I am trying to curb.
I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.
Things are a bit strange right now. Inflation is making the dollar weaker for buying things like basic needs, but it's getting stronger against other stuff. So, stuff like stocks, houses and precious metals aren't doing so great because folks are putting their money into banks for safety but I'm worried about my retirement savings losing value fast.
If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets. It's better to hire a skilled financial planner especially if you're not one yourself. I hired one after my retirement pension took a hit in April due to the crash.
Sharon Ann Meny, just check her out. It's better to hire a skilled financial planner especially if you're not one yourself. I hired one after my retirement pension took a hit in 2021 April due to the crash.
It depends on which statistics you look at. For example, if you compare average wages vs. average inflation over the past 40 years, wages have actually been quite competitive. But that's AVERAGE. When broken down by demographic, it's a completely different story - wages for the top 1% income earners has risen by 140% over 40 years, but wages for the bottom 90% has risen by less than 20%. So it's not inflation that killing us, it's wage inequality, exacerbated by tax policy that caters to the rich.
I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash of $780k into stock and wait for a housing crash or should I go ahead to buy a home anyways.
Gaining financial success requires having access to important knowledge. I am familiar with people who prospered during the Dotcom and 2008 crashes. In the present market, I'm also looking for opportunities. Possibly your invt-advisor could assist me with this.
Thanks for the info, i found her website and sent a message hopefully she replies soon.
No annoying intro clip, no "hey guys" annoying greeting, no begging for subscriptions and likes. Appreciated!!!!!
Never eat out alone? That’s a very strange one that I totally don’t understand.
I worked in restaurants in my early years. There were people, especially older widowed men, that coming in for a cup of coffee and a muffin was the only human interaction they got on a day to day basis.
I became friendly with several. It was a godsend for them to have that interaction and they usually knew and said hello to the other “regulars.”
Great point!
The way I took what he said was not to just get in the habit of just sort of mindlessly eating meals out to the point that it's cutting into your retirement income.
I'm a 67-year-old single woman who was able to retire comfortably almost six years ago. You have a lot of great information here except for one comment: "never eat out alone"....if I followed that advice I'd never eat out again!
@@malcom59 I know, it's not easy, and I usually do lunch, not dinner. A bonus: the lunch menu is usually less expensive.
@@georgeearling905 Hold on😳😳. I had no idea he was this renowned.
I have come across him already. Yea I was a cook for 4 years and was going to start school to become a full chef and then the pandemic hit literally a week before classes were supposed to start. So yea being in the hospitality industry I lost almost everything. So I had to start over. Things changed when I came across Chris Stewart who is a disciplined trader. I have been able to make profits consistently. This pandemic helped me take my finances more seriously. Thanks for your help once again Chris.
Will be retiring soon and I am in search of a good trader. How can I reach him??
@@andrefontaine3058 A simple google search should do:-
Chris Ryan Stewart
I sincerely they were more traders with this much experience and expertise.
I'm not kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it Investing is a long-term game, so focus on the long run.
I can’t focus on the long run when I should be retiring in 3years, you see I’ve got good companies in my portfolio and a good amount invested, but my profit has been stalling, does it mean this recession/unstable market doesn’t provide any calculated risk opportunities to make profit?
There are a lot of strategies to make tongue wetting profit especially in a down market, but such sophisticated trades can only be carried out by proper market experts
I agree, my profit has been consistent no matter the market situation, I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2020 this time with guidance from an investment adviser that was recommended by a popular economist on a subreddit, long story short, its been 2years now and I’ve gained over $850k following guidance from my investment adviser.
@@martingiavarini Thats quite Impressive! can you share more info?
@@Oly_laura My advisor is ‘’Catherine Morrison Evans’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
I am new to the stock market. Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks.I believe having 75K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a FA) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities
@Mark Reeves Hi , please who is the expert assisting you and how do I reach out to them?
@Mark Reeves Thanks for sharing, I just looked her up online and I would say she really does have an impressive background on investing
Go to zacks picks and run the ticker throughout zacks rating. It helped me immensely with my 401k last year.
The ten things are: not moving from acquisition to consumption lifestyle; financing big purchases on a credit card; eating out every meal; misalignment with your partner on retirement goals; underestimating your retirement needs; no long term care insurance; not talking with someone knowledgeable about financial planning; failure to change your money habits after retirement; falling for a financial scam; failing to minimize your tax liability.
Simple if you are still relatively young and have some time to invest. Open up a IRA or Roth IRA in a low cost S&P500 or Total Stock market fund. Both offered by Vanguard. Fidelity may have a totally fee free one, I'm not sure. Then just keep investing the maximum amount each year and as long as we're not all speaking Chinese and America is still standing, you're going to be really happy with your investment. Patience is a virtue.
Love your videos. But I must strongly disagree with you about eating out alone. I’m a single man in my mid 50s. I went from boarding school, to college, to the army, to a career in real estate. My mother was a career professional who detested cooking and never cooked. I never learned how to cook and I hate the idea of it. I keep very little food in the house and I prefer it that way. While I have great friends and enjoy their company quite a bit, I am someone who also enjoys his own company. There’s nothing more I love than grabbing a copy of the FT and NYT and grabbing some breakfast out after the gym (alone) I have multiple neighborhood restaurants where I enjoy lunch and dinner or cocktails. I’m friendly with both the staff and other patrons. My cash flow covers this and it’s a way I truly enjoy spending my free time. I do the same when I travel (I’m currently in Mexico) and it gives me tremendous pleasure to socialize with others out in restaurants and bars, or to be left to sit and quietly enjoy a meal and a drink on my own. Not everything is a financial consideration. Yes, I would certainly save lots of money by going to the supermarket and preparing my meals at home. But I would be very unhappy and depressed and wouldn’t enjoy either the time or the food. Sometimes it’s best not to stray into areas that aren’t strictly financial. There are reasons that people do things that are well beyond just the financial.
Why don't you try talking to someone else in line and see if they want to share a table? One of the best conversations I have had was with someone who was also on her own that I asked if she wanted to share a table. The restaurant may appreciate that, too.
@@sufranklin4439 because I don’t have any interest in doing that.
If I had to worry about a new furnace, eating out, or changing my life style, I wouldn't have retired. For the most part I pay for everyone I eat with. I have a lot more time to spend money now !
My dad paid at restaurants, for years, because he "wasn't sure I could afford it" according to my mom. Even when my company was making more money a month, than he ever had a year. LOL
Retiring comfortably isn't about how much you make, it's about doing without some things when you are young, investing that money, so you don't have to do without anything when you get older.
My friends made fun of me always driving older used trucks for years. The money they spent on new cars I put into real-estate. Till I retired 20 years before any of them. Then I was "just lucky". LOL
Our family generally cooks it's own meals. Restaurant food quality and service has gone downhill exponentially since COVID. Cannot believe the dreck that is being served at high prices by shoestring staff. Don't even get me started on out-of-control tipping practices.
And nutritional value.
Longterm care is a puzzle. I spoke with someone regarding the possibility of acquiring the insurance. What I was left with an uneasy feeling...that is, pay X number of dollars per month, then if you need it, it's limited, there's no unlimited coverage. In addition to all of that, if you don't use the benefit by your mid-eighties, they get to keep the cash. I thought it was much better to save, invest and use what you have if it's needed. If you do not need it, no problem, it's part of your estate.
The way I use credit cards is if I can time the purchase of something, I do it the day after the statement cutoff date and then I have up to 40 days or so to pay it off. I know what you are thinking, but I have paid off my credit card balance now for well over a decade every single month. If I cannot time the purchase, it doesn't matter. The thing is that I constantly use other people's money and pay off the statement every time, interest free. Credit cards are a convenience for me.
I do this as well. Hoping you have cash back rewards as well. I make 6% on groceries and 1-2% on virtually everything else. I even pay bills with cards to generate money. It;s not a lot, but every little bit helps.
I’m trying to learn how to do that after many years of buying “stuff” that I simply don’t need. Thank you for sharing that. There’s hope for me. 👍
The 401k is good, because retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million. So it really does. It's also a very quick way for people who are close to retirement but with little money accrued. I wish more people knew about things like this.
My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. Haha.
I don't know, but I think there are lots of things that the public should be educated about. When I learned I could make way more investing in the market than the 401(k), I was a little pissed, because why wasn't I aware of that?
@@ericmendels Please, I have been planning to switch to a financial advisor. I have about 85k spare cash. Do you use a financial advisor too, and can I get a recommendation?
I'm not one to give investment advice, because I believe everybody's situation is unique. However, I work with Sharon Louise Count, and all I can say is that she's really good at what she does.
@@ericmendels I think I've heard this name before. I'll to follow her up. Thank you for the recommendation.
All good advice but, when it comes to long term health care, in the USA, that's a total crap shoot. Years ago we looked into a long term care insurance policy that would have covered any needs we might have, very well. However, it was way too expensive. Now that I'm almost retired insurance companies won't even consider a long term care policy for me without charging a TON! So, we're just rolling the dice and hoping we don't need it or hoping we can get a medicaid bed if we do. Neither is a good way to go but in the USA, long term health care is costs are not affordable for most of us...just the rich. Maybe I can talk my wife into moving to another country.
I once purchased some Meyer's lemon trees online. The trees were fine and did well. Yet a few months later I received an email from one of my lemon trees claiming it was stuck at an airport in Asia and desperately needed me to wire some money so it could get home.
But I wasn't born yesterday. I went out and checked and all three lemon trees (the tree in trouble didn't specify which one it was) were still planted in my yard. It was a good thing because I'm pretty sure none of them even had passports.
All I can think is that the nursery had its records hacked by someone with a terribly poor command of the English language.
Thank you Mr Schmidt. I have saved all my career and lived with the same take home pay as I did in the 90's. As my income went up I increased my 401K. Retired at 61 and between pension and SS, I now have 150% more a month then when I worked! Plus got my savings to boot. So save early, live below your means and you will be ok!
Sage words.
Yep, sounds a lot like my strategy. Hopefully, this channel attracts young people, so the wisdim can be planted and planning begins early. Once it becomes a routine, it's much easier and the benefits are considerable when needed.
so, you're saying the Nigerian prince who asked me for help isn't legit?
🤣
Your advice is very good. Thanks! Constructive criticism: there are 3 separate glare rectangles in your glasses. It'd be good to look into how to avoid that "youtuber glasses glare avoid". 🙂
The #1 issue that could blow up your retirement is divorce, unquestionably. Long term care insurance is really only appropriate for a small group of people. There is nothing wrong with family taking care of you for the last 2-3 months of life, which is what most people need for care and LT doesn't kick in for some time anyway. Good used cars work well whether you are working or retired, I don't even buy a car unless it is 10 years old. In general, people don't change habits much in retirement, so good and bad financial behavior tends to persist.
One year into retirement, the issue I struggle with most is the psychology of shifting from a saver to a spender mentality. I fostered the saving concept for 40 years, breaking out of that mode is incredibly difficult.
I've been retired for 15 years now. I understand what you're going through. In my case, I have some money squandered away for future needs. I'm at the age that mortality come into the picture now, so I've been getting things (within my means) that I want to do before it's too late. I knew people who are gone now that regret not doing things and on the other hand, knew some people who did things before they passed. I'm trying to imitate the later.
Enjoy your life, you only get to do it once.
@@2-old-Forthischet thanks for your insights, best wishes
Knowledge is power. For most people the fear comes in when we don't have a data driven understanding of what the real risks are. I use Mint and FICALC to take away from the uncertainties and make me a stronger decision maker.
@@GiantBlue1963 I definitely don't fear anything, I expressed a difficulty in changing my mindset on spending. I also use FiCalc which is an excellent projection tool.
@@Yette 👍
Thank you, Geoff! Lots of helpful information. You are appreciated
Question do you have any recommendations for a good dividend portfolio? I want to start one here in the new year. I am a newbie and want to know what would be more smart buying ETFs? Individual stocks, reits? Or a mixture of both. Also how many do I need in my portfolio? I plan on putting in about 100,000 to start than continue to put money in monthly. Any help would be greatly appreciated
@@bentodanielbd9569 This was me early last year, I make over 250,000 per year but had nothing to show for it until I met my amazing FA ,Donald Ben Taylor, at a business summit and he agreed to help me through digital assets, I got my first mill this year. In my experience, fear can take control if waiting too long to set investment goals, but that should go away once you set the plan into motion.
@@kushgangoficial876 Thank you, I really needed to hear this and by the way I did lookup Donald Ben Taylor and I must say I am more than impressed with his achievements, exactly what I have been looking for, since I don’t have much time to myself, its better an FA handles things for me.
The last check I physically wrote was 10 years ago. I always used end-stub checks and did the math on the stub as intended. I told my kids and the youngsters who worked with and for me to do the same thing. "If the the amount of the check is more than the balance on the stub, YOU CAN'T WRITE THE CHECK"! In 70+ years, I never bounced a check. 😊
What's a cheque? Not written one of those for over a decade. Most businesses in the UK don't take them any more.
I have 3 things I fear. Inflation, property tax, health care.
Make sure you have the homeowners' exemption on your property tax, if allowed. It reduces the assessed value a little and will reduce your tax liability. Many people are unaware of it.
@@user-yj3ob9kd3l Thanks, yeah we use that one.
My solutions to those: don't vote Democrat, rent, live overseas. Planning to spend most of my time exploring the world when I retire. And international health insurance is a fraction of US health insurance.
Then definitely never move to nebraska. High property taxes and they tax social security.
I’ve heard that long-term care insurance can be a nightmare to get them to pay for anything. I know a few people who’ve had very bad experiences.
Truth! Our friends retired and ate out at restaurants all the time. It was fun for three years but it ended up killing their nest egg.
My favorite scam was when someone called and said a car with my registration was seized with 20 pounds of cocaine hidden in it. I feigned horror and put the phone down. I don't know how long they waited but I hung up after 5 minutes.
“Never eat out alone”. Well, after losing wife and parents over the last five years, I’m not going to take this advice. I need social stimulation and while I may eat out only once a week or every two weeks, I’m not going to stop. May be good financial advice, but not good mental health advice for me.
perhaps, there are some senior social groups.
I get that
totally agree with you Steve.
Books are my dining companions on alone days.
Great point. Sometimes social interaction is worth more than money.
I blew my retirement and it's plan on my dad. I moved across country to care for him, of course I had to support myself meanwhile.
I know I did the right thing and, if given the opportunity, I would probably do the same thing. In my family I was raised that family takes care of family, the old, the young and the sick. Then, my parents said I didn't have too. Please...
I'd trade places with you. I didn't move across country to take care of my mom. She passed away, and I will regret it for the rest of my life
@@Bianca-yt7pd It was funny how it happened. I told my mother I was going to Cali to take care of my dad. She asked if I would write her. I said no, she was going with me (she was sick too).
I have moved cross country a few times since.
It's your parents! They changed your diapers, cared for you in sickness and health, taught you a lot of what you know. How could a person not remember and what greater love can you give than to care for them in their time of need.
If you didn't make it. I'm sure they know where your heart was on the matter. Don't beat yourself up.
God Bless you.
When I started out I read the Motley Fool. They had lots of great ideas. Most of all they said, it's hard to beat the returns of the S&P 500.
I just got a text that i needed to bail myself out of jail!
That’s pretty funny
I've been getting emails from an uncle's name, but I never open it. *When I check their email address by hovering my cursor over their name, it's always some crazy combination of letters, etc. and not a real email.
The only time I eat out alone is after I leave a doctors office and get good results or news. I sit in the car, look at the sky and think, "whew" beat the grim reaper's house advantage again. It's the only time I ever sit in my car, look at the horizon and eat a McDonalds cheese burger, fries and a coke. Cholesterol & indigestion & high blood pressure from the salt be damned.
Haha good for you.
If you stopped eating out you’d save a hell of a lot of money!!
Thanks, I am forty years old. I plan to retire early, but I have $381k saved up. I believe my retirement will be a blessing if I can do something profitable that will increase my savings. Please leave a comment if you see this and can assist.
Inveesting and saving can be completely upended. This could mean your current financial plan might leave you without enough money to last your retirement. A recent Vanguard study found that, on average, a hypothetical $500k inveestment would grow to over $3.4 million under the care of an advisor over 25 years, whereas the expected value from self-management would be $1.69 million, or 50% less.
@@alexanderdimitar7154 In other words, an advis0r-managed portfolio would average 8% annualized growth over a 25-year period, compared to 5% from a self-managed portfolio
@@kansasmile I agree; I've been in regular communication with an inveestment advis0r for over 17 months. It is now extremely simple to inveest in trending stocks, but the issue is determining when to sell or hold. My advis0r jumps in to help me with both entry and exit points. I've amassed nearly a $150k from a $30,000 capital in less than 18 months.
@@smithmurphy I’ve actually been looking into advis0rs lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?.
Her name isJill Marie Carroll, cant divulge much. Most likely, the internet should have her basic info, you can search her online as she is SEC and FINRA regulated.
1. Don't spend $80 grand on a brand new pickup truck, or even worse, finance one. I buy nice lease-return vehicles in cash with only 20 or 30k miles for less than half original MSRP. I do all my own maintenance too, but that's not necessary--I just enjoy it. I'm 59 and semi-retired already. Just work 10-15 hours a week to keep my brain minimally functioning ;)
T minus three weeks and counting. Your content is extremely useful during the final days of planning and preparing
Good video Geoff ... But there's also the "bad luck scenario" where you've saved into retirement and done everything right, then a 16-year old smashes into your low miles 10-year old car and totals it, causing an unexpected expense you were ill-prepared for. Buying a car post-retirement can be quite the burden.
I hear you. Can happen to all of us
Yes but if a new car at $15k wipes out all of your retirement savings you didn't have very much saved.
I report all those financial scam comments.
Another excellent presentation. I would add that an annual budget process is important. I get out an excel spreadsheet and do an annual projection. (I try to budget to a planned no decrease in investment corpus).
The difficult part will be identifying large expenditures like annual auto and home. Another big one is property taxes. And the biggest is your car. Make sure you give yourself a lot of cushion. Miscellaneous is a killer.
Your idea on tax planning is right on. I am 69, retired at full SS age 66 and have not paid any income taxes in 3 years. As I am sure you are aware the RMD rules have been extended (again) (people over 65 vote), and I won’t be paying taxes until the year I turn 73. I will be increasing my taxable distributions in 2023 to pay a little.
For me, I love making improvements on my home. But, with inflation we have curtailed some of the big ticket items I would have liked to have done. Another plan we have is to go back to one auto in about 5 years. We lived with one car for a year and it worked out pretty well, but we bought another. Cars are a huge cost that can be somewhat controlled.
Lastly, I would recommend again that you look into selling your time to CPE products. These presentation really are excellent.
I've got 1 for you buying a new luxury car when you retire unless you can buy X 10 of them
You should create a video for those forced into retirement. Many older Americans cannot get a job that pays much. Companies cry about the lack of workers and still will not consider older workers.
2:32 “Retirement is a time of harvesting rather than acquisition. And directing your funds to maintain what you have rather than to build more or get more stuff is vitally important if you want to live well in retirement.”
Mind blown. Thank you for that perspective!
Thank you Geoff! Another great video. I would add that major dental work is often an unexpected expense. I am 62 and seeing many of my friends suddenly needing crowns and implants, or dentures. Even when we have taken great care of our teeth, they can be vulnerable in old age. Our smiles are so important to our self esteem, as is our ability to eat the foods we love. My 93 year old Dad just had a few dental implants. He says it’s a matter of dignity. He says he wants to die with a full set of teeth! At his age, he deserves to do whatever he wants! 😁
Also hearing aids, they can be just as or more important and a pair of quality aids are upwards of $5K.
A wise thing to save for! When I think back at parents and grandparents, and how many years they lived without their teeth, it is about dignity and comfort in your old age. I didn’t give it much thought back then but it really must have sucked!
This is pretty dumb. Stick him in a $50K casket as well. Hey, you only die once..
@@glennet9613 I went to Costco for my Hearing Aids
'
@@grayfox2497 Depends on your needs, even with top of the line aids my hearing is still well down on where it should be.
The food we prepare is much better than we get in restaurants
Nice!
Right? I can’t even stomach (literally) restaurant food anymore, there’s so much garbage in it. And a sit down restaurant is stupid expensive, for what you get.
And the service is usually aggravating
Why "never eat out alone"? Single people can't eat out?
You forgot the Republican proposal to end Social Security.
Geoff, how about a video on the difference between a retirement planner and a financial advisor
Adopting a child @ 45 years old will certainly change life’s trajectory!
A good rule to never get scammed is don't give any info or money to anyone unless you initiate the contact
We are doing fine but we wanted to say we agree with you. Our motto has always been to do more with less.
I agree with nearly all your advice. I know that not everyone can handle credit card responsibilities. I had gotten into trouble with my credit cards years ago when I didn’t pay my total bill at the end of the billing period. I have a American Express Reserve card…I know, but I have been traveling quite a bit and use my credit card for everything! I have to make the purchase anyway so I thought that I should benefit from the flyer miles. My husband (who is even cheaper than I am) flew to my daughter’s graduation in St. Louis MO from NYS, for $11.50 each way and we were updated to first class. The entire balance is paid off every billing cycle. We even put his tractor on the credit card.
Good advice! I'm working to fix my reckless credit spending right now! It ain't easy especially with rates that used to be illegal!!
Yes, Geoff, this information is truly important and very much appreciated! I’ll definitely be looking forward to your next video regarding how to find and select a financial planner. Thanks!
Out later this week!
I am 57…9 years ago l got divorced. It devastated my finances. I had to start over and change everything about my life. However…it’s survivable…..l have reasonably good health. When my alimony ends…at 65…l will get a huge increase in take home pay $32,500.00 as a matter of fact.
One way or another you survive. And you learn the value of a quiet sunrise as you exercise….a good cup of coffee as you watch the waves on the beach in the fall when the crowds leave….that simple pasta you made for yourself…..
Many people have less than you or l…and they find happiness. So simply…DONT QUIT!
Oddly enough, there was a social proof scam within the first few comments.
Unless you're blessed with unlimited income, live below your means. You'll be glad when you're in retirement because of inflation, especially these days. I learned by the seat of my pants that in retirement, I can live fairly comfortably on half of my working career income. In my case, in retirement, I still live below my means to be able to afford inflation. Yes, I did say to be able to afford inflation.
The excellence of this channel just keeps getting better and better. Thank you for your efforts and expertise.
The LTC insurance is ripoff these policies never payout enough for the cost of the policy & most people cancel because of yearly increases. A better choice is to self insure, a reverse mortgage or medicaid planning with a reputable estate planning attorney.
I understand your point about the expense dining out a lot in retirement due to lazy habits. The catch is nutrition and value per person. As a mom of sons and their ravenous dad, eating out long ago was cost prohibitive and was smarter done at home. That great quality/value now sadly isn't possible for me as a 65 yo widow. I can't buy or use up the economy packs of food. Salad greens and other fresh veggies rot in the fridge despite my best attempts. Cooking an economical recipe leaves me eating it for a week or reheating it after being frozen 😳. In frustration I lived on frozen chicken nuggets and canned goods til the resulting anemia had me in a mess. No easy fixes
A long term care. Statistics video would be helpful with a breakdown of the 70%
Good Lord, this comment section is loaded with “social proof scams”!
Most financial advisors use a cookie cutter approach based on your risk tolerance. My previous advisor invested my money in 2 bond funds and 2 total stock index funds, 2 US and 2 International . Do you think it is worth paying for this service if you could buy those index funds yourself?
international is a bad sign....run
It depends what they're charging, and what else they do. You can get "free" robo investing from a variety of sources these days. (I put free in quotes because they all have their ways of making money off helping you but it doesn't necessarily show up as a fee. For what it's worth, I doubt you're getting good value in fees, not because there is anything wrong with a 4 fund portfolio, but because it's likely being charged too much and not getting enough other high value services. You have to dissect what you're getting, what you think each piece is worth and if it's good value.
@@whatsup3270 Yeah. The international index just finically back to cost after 5 years!! Now I am thinking of selling them to buy VOO.
@@GiantBlue1963 i have tried Fidelity for 1.5%. They bought many Fidelity funds with high expense ratios . I left after a year. Then I went to Vanguard for 0.3% and they put my money into 4 Vanguard Index funds. They just do the rebalance every 6 months. Now I don’t have a financial advisor but would love to have someone redo my portfolio because it is a mess now .
@@Ccwuhccwuh The Vanguard approach with rebalancing pretty much guarantees that your portfolio isn't a mess. I'm pretty sure you're in a globally diversified portfolio that tracks overall worldwide returns. Are you overpaying for it? Yeah I'd say so, it's not sophisticated and it doesn't diversify as much as they should be offering (the Schwab robo adviser for about the same real cost has a far more diversified portfolio and over a certain balance includes things like tax loss harvesting). You can do what Vang does yourself or use M1 where you can order a rebalance with a click (you'd have to check if they had funds you liked as a replacement).
Just food for thought ... but it's more important for you to know that you believe in the theory and implementation of your portfolio, because there is no such thing as the "always best portfolio". In this way, knowledge is power in that it enables you to be both an informed, logical and confident decision maker.
Warning Signs Much Appreciated 😅
My pleasure
Adding one more; investing in high risk stocks or start-up companies, it's like playing lotto with your retirement.
Cut down on unexpected expenses by saving up for them ahead of time. Was always taught, expect the unexpected. Just had an unexpected root canal for $2000. No big deal because I had already saved for it the last 20 years. Same with car repairs, new furnace, roof, air conditioner etc. If you prepare for life’s unexpected expenses you’ll be fine
Same here. Unfortunately most of us Americans like to live paycheck to check, spending future’s money.
Exactly, expect the unexpected by knowing the difference between needs and wants.
Yes, live below your means and you’ll have the money for the unexpected. In reality, you plan for the “unexpected”.
So, I buy most clothes second hand, conserve my driving habits, adjust heat/cooling, eat no animal products as they are expensive and for my renal health, hang dry my clothes, no cable tv, inexpensive cell service, eat out rarely. Use library extensively. Vacations are few and far between. I don’t get my nails done or have a gym membership. 🤔 Hmmm what else is there to cut???? And I’m not retired.
Thank you for covering these important issues, but I think there are some alternative answers. I also think it is very important to separate advice for those with children and those without. The impact of children in old age is significant and if you all get along, very positive. Taking a few of your points:
Cars in retirement. I live in England (Old England : )) and as I'm retired spend time in my camper often in seaside town where a large proportion are retired. Its is now very noticeable that on retirement people either buy a classic car or a Tesla. I have seen whole lines of traffic in which pretty much every car is 50 years old a new Tesla. Both options look very sensible.
Credit cars are less of an issue here, but high pressure selling of equity release is and this is one of the issue that divides those with children from those without. As a parent I would never release equity from my property, I have friends with no children for whom this makes a lot of sense, why die rich with no one to leave the money to?
Dining out, this is one of life's pleasures and we retirees want to be part of that. We found that the pleasures were about company and not having to cook and wash up, so we organised regular dinner parties so that we cooked in bulk, those who could afford to could host at a restaurant, those who could not would cook. No one was pressured to spend but we had nice meals to look forward to and the home cooked were usually nicer than the eat out. Covid knocked that back and we are just getting going again.
Couples, yes, if only there was a solution! Hobbies that keep you apart seem to work well : )
Financial needs - our experience is the opposite, perhaps that's is because the UK has free healthcare and for most UK home owners they will have paid for their home outright. I already have enough clothes for the next decade, all I have to do is keep my waistline in check.
Long term care. A true disaster area and in the UK care costs can rapidly reach the value of your assets. The UK policy is to keep people in their own home as long as possible, but this often relies on support from family. Those without close family struggle. One option is to spend all the money and place yourself in the care of the state! The rich who can afford it and the poor who can't are OK, its those in the middle who suffer.
Scams. A huge risk. My mother sadly passed last year but she was living independently and in sound mind until her death at 97. She lived alone but near and it became clear that she was being targeted by increasingly sophisticated scams. We put in place a power of attorney for myself so that all transactions required my approval. This gave us both confidence that her money was secure, but the immediate benefit was that she would simply say "my son has power of attorney over my accounts, you must speak to him". This stopped all the scams. This is another important issue where children and close (trusted) family are a huge benefit. One time the scammers were on the call and had got her very worried, but we had an arrangement - do nothing without calling me. She rang on her cell phone with the scammer on the land line, it was after midnight. I took control and we avoided being scammed. I then spent some time saying how proud I was that she had called me no matter what the time. I later found an intelligent professional friend who lived alone got scammed for £25000 on the same scam.
Tax, I hate paying tax in retirement but on the plus side I finally have the time to understand the tax system Here in the UK inheritance tax (IHT) is very costly, but has many exemptions while you are alive. Those who trust their relatives can pas on their estate with a low tax bill, those who do not have to pay. So the UK IHT advice is "get along with your family now and save a lot of tax later".
There is one important issue you have left out, the relationship between physical capability and spending. If you want to go skiing in retirement (for example) do it while your knees still work. Don't put off sky-diving or long distance holidays until you have heart trouble and can't get insurance. Its too easy to be careful until its too late to spend.
I always enjoy your practical and succinct style, Geoff! Oh the irony of life: There is a comment series below that is the EXACT scam that you mentioned in the video about “someone” who will be the best investment advisor ever. I suppose ignoring these sorts of things is the best practice. Ugh. Thanks for your timely content, as always.
I usually report them as unwanted commercial content or spam. Not sure if it helps...
I have been watching his video's for some time now and find them to be reality based, very good information. I left the work world in 2017. I didn't have a Holy Schmidt back in my early life but happened to cross paths with a CFP. It has made all the difference. I clocked out at 60, can live comfortably because I have utlized most all of Geoff's recommendations for the past decades as well as now. I still watch all his offerings as a fail safe going forward. Younger folks would be well served to tap into this knowledge base, but based on what I see, the "i'm entitled to it now" mentality that so many have, their futures as they age may not be so good. I have passed on everything I can knowledge wise to my kids, hopefully they will be smart and follow the information. Don't plan on leaving too much to them since they have the knowledge, skill and ability to make it themselves if they so choose. Live life well, especially if you have worked hard and long to get to a solid retirement.
If I didn't eat out alone, I'd never eat out. I have no family or friends. Still...I only eat out once or twice a year so the cost is negligible.
That’s a good reason to eat out. This is more for those who do it “as a social sport”
I love your videos! I always learn something. Thanks! One question I have for you is I don't have a financial planner, but I have invested my money on advice from trusted sources and I am doing very well. I also hired a CPA last year who I plan on keeping. Am I safe on getting tax advice from my CPA rather than hiring a financial planner? I'm 4 years from having to take RMD's. Taxes are minimal currently.
Great video! I'm interested in know what your thoughts are about converting a 401K to a ROTH 401K. I'm 62 with 2.5M in a 401K.
Nice shirt...
One of my fave’s
I retired one month ago and my biggest concern is projecting accurate Federal and State taxes based on my new liberation. One glimmer of hope, legislators in my State are moving forward to repeal existing pension taxes. Fingers crossed...
Taxing SS is a travesty.
This was great. You hit so many important points. Got me thinking for sure. Thank you
Thanks Cecilia!
My daughter and son in law make well over $200k year even though they are only in their 20’s yet when we go out to dinner I alway pay because I’m the Dad. That will be a hard habit to break.
I hear you.
I've come to realize as an investor that instead of letting my money sit idle in my savings account it is more productive to invest the little available and build a portfolio from the accumulated profit of investment
I have cars that are over fifty years old, and they run just fine; probably because they are Oldsmobiles!
Loved my Cutlass.
The best cars I ever had were Oldsmobiles
Number 1. Vote for a democrat
Geoff, very helpful information. I look forward to your next video on how to find a financial advisor.
(1) Time stamp 3:54: that fried chicken hasn't been completely plucked. How gross. (2) one of my friends ate out all the time by himself in his 40's while making $100K/yr and had nothing to show for that windfall income after a few years. (3) I suffer from the acquisition of things that require maintenance in my old age and that are difficult to divest in their current condition. That is my burden. (4) Financial retirement planning is a careful balance: you have to be specific enough to cover your planned expenses and contingencies, but not so specific as to dictate how you'll be spending each day, because you need flexibility in your decisions to take advantage in what retirement has to offer. Being too specific invariably leads to disappointment. So finding that balance in the extent of financial planning is more important than mapping out each day. (5) Minimizing your tax bill does not necessarily equate to a happier retirement. I could minimize my tax bill by selling my house and living out of my car. Will I be happier? I'll let you decide.
Great information as always….thank you and I can’t wait for your video on choosing a financial planner, funnily enough I was about to ask that when you said it. Have a wonderful week 😊
I’m glad you mentioned the person whose HVAC (heating ventilation and air conditioning system) that stopped working. These cost around $8-35k to replace, retirees in their home will very likely need to be replaced during retirement. Be prepared, budget in advance!!! Estimated lifespan of various heating/cooling systems: Central air conditioning units:12 to 17 years. Heat pumps: 10 to 16 years. Furnaces and boilers: 15 to 20 years. Geothermal heat pumps: 25 to 30 years; ground loops will last upwards of 50 years. Solar: 25 to 30 years. Evaporative cooler: 5 to 15 years.
Prescription drugs is something no one remembers $$$$$$
You offer great advice for retired folks! I am fortunate at 68 to have all my senses, a very nice nest egg with the ability to live comfortably using the 3 - 3.5% spending guideline while still passing a sizeable estate to my heirs. My biggest fear and perhaps you have spoken about it in other videos is finding someone who can care for my financial well being when I begin to lose the ability to do it myself. I currently have a daughter and 5 grandchildren, 2 of adult age. No close relatives or trusted friends and the thought of having an attorney manage my stuff gives me hives! At this point in time I have no confidence that any of them are up to the task which creates a real dilemma; who do you turn to for that help? I bet I'm not alone in hearing your advice on this issue..:)!!!
A financial you tuber I watch said his savings were wiped out when his wife got cancer. She survived and he has re-built his his wealth. Fortunately, the health policies aren't capped like they used to be but the out-of-pocket costs can be staggering.
Thank you for sharing your retirement financial issues. I follow you regularly
The button in your thumbnail looks like a safety emergency stop, lol. Not quite a bomb activator. Love your channel!
I won't/can't support a car once I retire. I don't like to drive anymore anyway. I will use public transport, uber, or my legs. It will save me a lot of $$$.
You address the long-term care question as if it is a minor afterthought. This is a serious issue, and both services and premiums are out of the reach of many retirees. Long-term care needs can ruin a retirement, but being able to truly plan for them is an equal problem.
That’s why I brought my mom to Mexico. We can afford to live, and she can get the 24 hour/day care that she needs. At 89, she’s stronger and healthier than when we came down more than 3 years ago!
Don't eat out by yourself, ever? That's bad advice. It presumes that the place you are eating at is overly expensive. It also disrespects anyone who is getting out but may not have a partner. The cost relative to the value to the person (mentally, socially, etc.), is something you have not considered.
A scam that should be mentioned is the one where people fall in love with a scammer.
I just retired last October, a year before I retired my wife and I, every 4 to 6 months would sit down together with you financial adviser/planner, and mapped out our plans. I told our financial adviser what we were going to do, sell our condo, purchase a new manufactured home in a 55 plus community, turn in one of our lease cars at the end of it's lease. He told us with our retirement portfolio it was not necessary, that we would be in great shape, but we did. We are very happy with downsizing, little to no debt and set up a great yearly travel budget, to travel in our motorhome.
As long as you own the land where your mobile home sits. You can count on the rent going up, there’s a lot of horror stories.
@@sct4040, Before we purchased our new modular home in the 55 + community I did my due diligence on just that, written in the LRA, lot lease contract the rent can not be raised over 1% of the GDP, it's called a "Lifetime Rental Agreement'
@@thecasualrver Congrats to you for having a good plan!
Bringing someone into your life that turns into a spendaholic is damaging to retirement savings. I've worked at jobs with fellow employees that had shared their sad stories about their 1st marriage that had ended in a divorce because of this.
Government taxes, federal, state and local are the greatest enemy of your wealth. Noone can impact your standard of living more
I am fortunate to have a pension and started collecting SS Survivor's benefits at age 60 (my wife passed 20 years before but had worked long enough to collect) I sold my house and moved into a condo on the ocean which was $90K more than what I sold my house for and took out a mortgage at 2.99% while putting the money from the house sale into an IRA which is relatively conservative. It generated about $40K since 2022. I think I have reached a balance in the sense that my checking account only goes up and down a bit when bills get paid, or a deposit is made.
Don't feel that you have to "keep up with the Joneses" to be satisfied with your life. Train yourself to be content with less, while you save more for retirement
Thanks for calling out these multi-account advisor scam bots, ( such as "I love Tesla stocks etc". in this comment section). I've noticed they often begin with a vague piece of good advice that gets a lot of thumbs up.
Don’t wanna blow it up bruh!
I’m with you!
I've looked at Long Term Care insurances and decided to set money aside in my retirement account for LTC in lieu of paying monthly LTC premium. Much like with car insurance. I bought a new car with cash and insured for liability only and set money aside the difference between full coverage and liability. After ten years, I was able to buy another new car with money that I saved on full coverage insurance. There are risks involve in my method but it's the risk that I'm willing to take for the rewards.
I believe you made a wise decision. I enrolled in LTC and it's set to dramatically increase or possibly go bust this Spring. Looking back, investing those monthly premiums would have been far more prudent.
@T Raybern I don't think so after have done a thorough research. The estimated cost for care in the final five years of life is $367,000 for people with dementia and $234,000 for those without. Just to have extra cushion, I have saved and set aside little over $500K in index funds as of today for LTC Self-insurance separate from my retirement account. If I didn't need LTC before I die, then all my assets will go to my kids. With LTC insurance, there is no rebate because I didn't use it.
For a better understanding of the bible I recommend "The Mystery" by Joel Finck or "Things That Differ" by Cornelius Stam.
but the email said the Nigerian prince has 100M for me, I just need 50K to get it though custom...
Long Term care insurance , no thanks. Our company had an insurance company offer that. I didn't partake, but those who did were promised premiums would never go up, less than 5 years they did, and big. " we miss calculated" or some bullshit like that. No kids to leave money to, not worth it to me. Eating out is my main problem, which I am trying to curb.