I had originally planned to retire at 65. However when I turned 60 I really started to think about my mortality and my potential health span. After a long period of reflection and thinking about how much money my wife and I really needed in retirement I decided to retire at 61-1/2. It was very difficult for me because I was obsessed with not running out of money in retirement and retiring early frightened me. I eventually convinced myself that the slight reduction in spending in retirement that was necessary would make no meaningful difference to our lives. Fortunately I was right. In fact, in the first 7-1/2 years of retirement we’ve underspent our budget every single year without sacrificing anything. You never know how long you have to live or, more importantly, how long you will be healthy. I think that retiring early was one of the best decisions in my life.
Thank you for sharing this and for showing us after the fact.... Ie: Not some hypothetical, but a success story that has been put to the test for the past 7 years! And during a major Market downturn! Anything further you'd be willing to share would be appreciated, Such as your allocations and whatever percentage or strategy you employed. Thank you in advance
Great Post! TY brother. The whole orientation of "do I have enough to retire?" is built around Sales of Stocks and high risk investments, not "us" as people.
Great story but because retiring and applying for SS benefits are two separate issues I was wondering if you applied for your SS benefit at 62. I retired at 55, I was going to collect SS at 62 but opted to wait. Every decision about when to retire is your own personal decision with no wrong answer. Thanks.
Thank you for sharing! I'm 59.5 and will retire next Friday! My health was my catalyst for making the decision to retire early. I don't want to wait until I have a lot more money but less health. No thanks.
I opted to retire recently at 62, after saving like crazy and paying off debt for a very long time. I could see that i was risking my health and ability to enjoy my retirement by sitting at a very stressful desk for another five years. In 10 weeks, I've made two quilts as gifts, I've walked the Camino de Santiago, visited a friend in Italy, more importantly, my health measurements have improved greatly. I got my life back.... I can contribute to the community in other ways. More money would always be nice, but enough is simply enough.
Congratulations! I appreciate what you shared. Our situation is similar. We won’t have near as much saved as the example couple, but a very enjoyable and healthy, meaningful life can be lived on much less.
So there's type a and type b personalities, you want to be type c, an in between where you are concerned about retirement but not so much that you hurt your health from stress or your relationship, or your life leading up to it
I retired at 59 1/2. I saved enough, downsized, and reduced debt. After retiring, my doctor reduced my blood pressure medicine by half twice in the first year. The stress of the job was killing me. Best decision I ever made. Now I have fun with friends and volunteer at the hospital a couple days a week.
About to turn 58 in Dec 2024. However my wife, who’s currently the bread winner is only 53. Both in good health overall but my back and shoulder have prevented me from continuing my career. I’ve invested well and our monthly bills are very low so there’s limited stress. But even this adjustment has made us re-evaluate our retirement strategy. We’d like to retire simultaneously but given our age difference this may prove difficult. Plus side is her being a nurse she works 3 days per week. So we’re looking into reduced hours for her while keeping our insurance until she reaches 62 nine years from now. So I guess what I’m saying is allow yourself to be flexible and adjust accordingly. Wishing all who read this a happy & healthy retirement! 🙏❤️✌🏼
Watched several of your videos tonight for the first time. When I read your tag lines, and looked at you, my first thought was you are way too young to know what you are saying. I may have started off with each video a little skeptic, but as each one progressed, I kept saying "right on!" This kid knows what he's talkiing about, unlike so many financial planners. You have your clinets good at the front, vs. your own interest. You have a good sense of looking at everything from all angles and maintaining a balance. Keep up the good work.
James, this is the best video I have seen in many months. There is so much to this. My parents have done well over the years but in my opinion, have not enjoyed the fruits of their labor. Now as they are 78 and 81, they have more money than they know how to spend and no energy or desire to spend it. No vacations, and work, work, work is all they have done.
Maybe there's a balance between work and life, being old and not being able to enjoy money but also needing to be healthy enough to enjoy it which working fourty plus does not help
Well done James! I retired a year ago at 58 1/2.... with $1.7M . My intent is to continue to focus on health, fitness and travel. Today my portfolio is $1.8M and I haven't worked even one hour. Still working on planning for more things I want to do in my free time.... but I'm no longer stressing about work!
sounds like me. Wife and I each have more value in our pensions and social security will provide us with our modest living as we have our whole lives. U made a good choice. Enjoy
I could have written exactly what you just did. Turning 60 shortly & loving life! Kudos, sir!! And we were each granted a new magic power: We wake up & turn every day into Saturday!
I just semi retired. Im 45 years old. I have not worked in about 3 months. Ive been spending time with my wife and kids, training for a half marathon, and finally sleeping. I will return to work next year but on my own terms and just half the amount I used to. This was a really good video.
I’m thinking about doing something similar, except screw going back to work. I want to start a business with limited costs like landscaping or something that gets me outside and I choose the jobs. I work in tech now so it’s good pay, but the work is pretty draining against my motivation.
@@whywouldigivemyrealname5162 - I'd recommend finding volunteer work, if you can find something to commit to; it tends to be more rewarding, even if it doesn't pay as well. My father retired at 55 (mainly due to stress-related illnesses), with my mother retiring 2 years or so later. 20 years in they are busier than ever, and they love it - he is pretty much rebuilt their church and maintains it, while my mother is heavily involved in foster care and caring for war refugees. They are getting a bit slower in their age (mid 70's now), but they are still going strong, and the "work" has likely been one of the main factors in keeping them going.
I was a supersaver while working because I saw my employer downsize for a decade and knew my number would come up. As I was about to turn 58, my company decided to shut down the site and gave us the option of relocating or taking a severance/retirement package. I took the package and figured I would do part time work until my wife retired. She was 10 years younger (47yo) at the time. Her employer offered a basic pension plan and I figured that we could both fully retire in about 3 to 4 yrs. Great plan and an early retirement and we would still be young enough to enjoy travel, etc. Well, turns out that even though she looked and acted very young, her type 1 (childhood) diabetes was doing a number on her heart and she passed away suddenly from a heart attack at 48yo. We don't know know how much time we have left. We are told that we all live much longer than our money and the worst thing we can do is to retire too soon and run out of money. Your video is great and really needs to be heard and heeded.
"We don't know know how much time we have left" Basic medical science tells us type 1 diabetics have a much shorter lifespan. You both should have known this.
Man, I feel for ya. But, I have heard this type of story more times than I care to count anymore. People that keep putting of retirement for one more year, year after year, are pushing their luck. I strongly advocate to everyone that if you have the means to retire... do it TODAY. Not next year, next season or whatever. You don't know when your number is up so get busy living.
Wisdom from a young person! You are an exceptional CFP sir. You obviously care about your clients and try to direct them in a way best for them. Bless you
The thought of working until age 65 just gives me nightmares. Watching family follow this path and then to die in their 70’s and 80’s never really enjoying that money is mind blowing. At 58 I am absolutely done and enjoying my free time. So pay down those bills, pay of that house, and put some money away. Have a plan to stay busy with projects or travel. Time is getting shorter with every passing day. ✌🏻
I didn't even need to watch beyond 5 minutes. As soon as I saw they had nearly three million saved, plus social security, plus a home, and were already 57 I said these people should retire soon if not immediately.
LOL I quit watching after a while of his dealing with the couple with $12.5 million in retirement funds. Sure, everyone has problems, but almost everyone I've ever known is so far from that sort of situation that just about nothing applied to my life or those of anyone I know and most I have ever known. Too rarefied an air up there.
Thanks for your video. I am 67 and have been working for over 50 years, it is very hard for me to retire completely. My plan is to retire in June 2024 but I will be working 2 part time jobs. Job1 - winter season - Teaching he USCG Captains License Class (8-10 weeks per year) Job2 - Summer season - Teaching people how to use maneuver there boats on the water. (20 hours per week)
Philosophy (in its true meaning of "how to live") meets financial planning. This is simply wonderful. Thanks, James. It seems to boil down to this: how much is enough? It's easy to get caught in the trap of nothing is ever "enough". That's American consumer culture in a nutshell. So you have to learn to be intentional about this. I am no where near "Bill and Susan's" financial status (few today are). But when my financial advisor ran all my numbers, his report showed me dying with more than half a million in my estate. I worked a very cool but stressful job (surgical nurse) for going on to 40 years. Why did I feel guilty about retiring? A major component of successful aging is learning to let go. That doesn't mean giving up at all. It means taking life on its terms and shifting your focus. There is so, so much to life and to yourself to engage with.
To James: Your programs are the best on UA-cam. The text screens you include are helpful. I recommend them to many. The comments that others post are VERY helpful, too. Thank you.
The right time to retire is when you no longer wish to work for a living AND you ARE POSITIVE that you can afford it. But remember, if you leave your job without sufficient resources, you are not retired, you are unemployed.
We saved so much in our 20’s, 30’s, and 40’s that it was easy to say no to more promotions and say yes to more free time as we approach 50. Time and health don’t gain compound interest.
This is a wise young man! I retired in January, at 73. Although I am in pretty good health, I am not as vigorous as I was at 63. James' comment about "health and energy" struck a cord with me. I would have retired earlier, even though that could have meant driving a 2-3 year old car vs. a new SUV...a smaller home vs. a mortgage payment free 3000 sq ft home, on 6 acres...and a portfolio of @$750k vs our current $1.3M. I would still have been debt free, either way. Thanks for another great video James.
This is a profoundly important message. It's really not surprising that our culture of greed has produced this kind of insatiable pursuit of more money, even when it is utterly unnecessary for what we actually want to do in life. I fell victim to this irrational thinking, but thankfully I snapped out of it and realized I could retire much sooner and have a very comfortable retirement on a much smaller portfolio. Instead of working until 67 like I originally planned, I now plan to retire at 63. The couple in this example could easily retire at age 60, with zero compromises.
A light went off for me when you said that our work becomes a distraction. Work tasks are something that we know. Many of us have been in our careers for many years and we're familiar with what needs to be done there, and many of us respond to the problem-solving aspects of our work. So much so, that it becomes much easier to think about work, than it is to ask ourselves the bigger questions of what do we want the rest of our lives to look like. I write this as I'm working on yet another weekend! Thanks for these case studies and all your insight James.
My mother , a retired teacher died with close to $700 K at age 95. Last 10 years were definitely no go years. I wish she would have taken more trips and enjoyed that money when she was younger.
Good job on goals. I retired at age 61.5 and glad about it. All the hikes and bike rides are behind me with AFIB now at age 70. Now I just have memories that I am glad to have enjoyed with an active life before AFIB. Your advice is well taken and beneficial. An age 70 lifestyle is so different with an older body.
Great video! Many years ago I planned to work until I was 70. But was going to do so while still taking epic trips every year. Once I started seeing friends and family around me pass around age 60 or be diagnosed with life changing diseases I moved my retirement date to 62 and may even retire earlier. We are not guaranteed a long healthy life and this couple is taking for granted that they are going to have the same energy levels and health they have today. Many retired friends tell me money really isn’t that important to them as it once was.
For some people, their work gives them purpose and a means to be social each day. That wasn't me, for sure. I knew I could retire at 55 with medical, so I researched and planned to a point of over planning as my spouse just presumed that 62 was the target. Because of the over planning, I retired on my 55th birthday and my spouse at 56. We still had one parent living in the area that we were able to assist as necessary. So glad we did the physical activities when we could. 17 years later and now my spouse is still recovering 16 months after breaking a leg and our days of taking 2 mile walks around our town are just a memory. Injuries happen so very fast and our ability to recover just isn't the same anymore. I hope you will find retirement to be an adventure with the freedom to pursue whatever you desire! I am so saddened to hear so many that failed to plan, act and research what their golden years were desired to be until they are disabled, laid off, or just plain quit. Since you are watching this informational video, you taking a very wise step in your planning!
I retired at age 62 since I had physical fitness, wealth, and needed time to make the next decade the best decade of my life. Time makes it much easier for me to run or bike or canoe or cross-country ski for 3 hours every other day in the sunshine. When I was working I would do a 3-hour run with a headlamp in the morning darkness before work.
Very good video James for getting us thinking about work-life balance earlier while we are still in good health. At 64, and shooting to collect SS (and retire) at full retirement age, I am now walking that line. My financial planner has told me that I can retire now if I wanted to, but I pushed that notion aside. Your video made me think again about being able to retire now despite the chaos and volatility we are experiencing on so many levels these days. Thank you very much! Note: I am no where near your example couple, but I understand the concept of enjoying life while you still can, ya neva know!
Giving yourself a demotion sounds good to some people - it sounded good to me. And I in essence did that. What people forget is that now you may well get an insufferable boss who’s now in your management role. The higher you go in any organization, the fewer layers you are beholding to, and the fewer chances you will have to be working for a jerk. That’s something to consider: a bad boss can make any job a misery.
This statement is the problem. It's not YOUR management role. Too many people work and try to increase their salary and their ego becomes tied to their salary which is why they don't want to give it up. Maybe humble yourself and just work your job instead of saying in the back of your mind you would do it a different way.
Honestly I’ve had many experiences as part of my life. When I retire in a few years there are very few places I want to go see in the world. My advice is travel when you are working and younger. Traveling is harder when you are older.
I did all my world travelling between 30-50 yrs of age. Best thing I ever did. I could climb mountains, rapel down waterfalls, scuba dive and enjoy life while my body was in good condition. Yes, get to 70 and body does slow down no matter how much you walk and work out at the gym. Enjoy life in your youngers years. Work hard and save but, don't wait till you retire to enjoy life.
Good point. Besides the style of travel and what you enjoy is very much different in each of our life stage. Glad we travelled a lot along the way. No regret, only the memory and better understanding of the world.
I could not agree more. My dad worked until 77thinking he and Mom would travel after he retired. He worked to long and could not travel when he retired. I’m thankful we traveled early and retired early.
I closed my construction company in 2008 at age 55 years old and tried 2 years of retirement. OMG, not for me. Started a construction inspection company in 2010 and oh boy who would know my last venture would provide me with a comfortable income for the rest of my life with little work and a nice office to visit and get out of the house
All valid points that are missed by so many wealthy folks. And we get that an extreme example is used to illustrate the concept. But unfortunately a much much larger portion of Americans, even those who have diligently saved, do not have the luxury of so much wealth that they have option of “backing away” from spending their lives at work at an early stage. Still the points are valid - balancing life experiences and future retirement wealth are a smart thing. That you can always work longer, but you cannot buy more time.
Thank you for this. I've watched 10 or 15 of your videos but this one was the most eleganty delivered and poignant. My wife and I are in this very similar situation and this spoke to us a lot. Bless you for sharing all the wisdom and knowledge you've gained, and being a good guide.
I know someone rapidly approaching that situation. When they found out I was considering retirement, "so have you paid off your house?" They know my wife doesn't work, and they think I'm nearly destitute and cannot figure out how I could even think about retiring. They cannot retire because they gross about $1M/year, live in a home worth $4M and they own less than 1/2 of it. "We could pay off our house, but then we wouldn't have anything left." My only response is to express sympathy and try to encourage them to save and invest.
@@Sylvan_dBYou don’t actually NEED to own your own home. There’s this thing called renting… You also don’t need to live in a house worth 4 million to be happy.
In my late 30. I decided to take a leap and embark on a career change journey. It took a while to figure out exactly what I wanted to do and I did a lot of self-discovery work but it paid off. I now work in a profession that is so rewarding and satisfying for me that I hope to work as long as I can just because of the sense of fulfilment I get from it. My neighbour, in his mid 80. still goes to work - few hours every day, just to get out of the house, be around people etc. Work can add meaning to people’s lives and be so much more than just a job. I know of several people who passed shortly after retiring, as if they lost something that connected them to the vibrancy of life, where they felt needed and valued - but I guess that will vary depending on how you structure your life. Either way, work shouldn’t be the only thing that makes you tick but at the same time it can be a big factor in reaching life satisfaction
I read Die With Zero and it changed my life. I decided to retire 18 months at age 54 and don’t regret it for a second. Many of my friends didn’t make it to 54, and I don’t want to die with more life experiences unmet, and I don’t want to spend what could be my last years working.
My thoughts are exactly. Why would the couple even worry about retiring at 60 if they have such a high amount saved. $400K annual income is also not median amount in America. Please posting some helpful video with realistic & meaningful numbers that majority of people can apply.
Great video. Wish all financial planners could see things this way. I demoted myself from a C suite exec in my early forties and was able to retire by age 49. Great content.
I have a general question - When you talk about the rate of return, do you take into account your fees as a financial advisor (and reduce accordingly)?
I really loved this one. I grew up lower middle class and I only envisioned my life up until like 25. I wanted to be a professional and make enough money to not stress about living expenses. I did it. “Yay” … but now what? I don’t know what’s next
Easily one of the best videos I've seen on this topic and sheds light on how many high earners/high savers think. Would likely change people's lives if they watch this! Nice work, James!
This is the second video I have watched of yours. I love this philosphy. I retired from teaching at 59. I have enjoyed the last 1.5 years on my teacher retiremtn and have been writing a book. I hope to get it published in the next couple of years and launch a 5th and final career making money from writing. I think your philosphy is right and I an going to have to buy into it more and spend some of my savings, or give myself permsion. Keep up the great work.
Top 5% of the world? They’re in the top 2% of the U.S., and close to being in the top 1%. For a world percentile, they are well within the top 1% if not the top 0.1%. You need to realize that even the average/median American is in the top 15% of the world.
I agree. These financial videos never talk about the regular people. No one I know that’s retired has a million dollars and most of these videos say you have to have that to retire. They are living comfortably on what they have.
Dude, most regular people are going to be screwed. They have not saved (deferred gratification went out of style in either the 40's or the 50's) pensions largely disappeared from the private sector starting in the 1970s' or so; and too many people don't realize that Social Security will only provide the bare minimum (and maybe not even that). As a result, we are seeing more and more seniors becoming homeless or living in an RV or a camper van, or in their cars.
@@johnurban7333 A lot of regular people who were teachers, firemen, cops have a net worth over a million dollars they also have a pension and health benefits for their retirement package.
Great video, and it’s not about the absolute numbers. It’s about recognizing once you have the financial freedom to decide to do what you want to do as opposed to what you feel you have to do. As someone who put in 70+ hours a week, I retired as early as I could as them took a part-time job that I really enjoy. As long as I enjoy it, I’ll work. If not, I’ll re-retire ASAP.
@@whywouldigivemyrealname5162one has dementia and the other does not so use your brain and vote for Trump! BTW I am 62 and the 4 years of Trump were the overall best 4 years in the United States....in my opinion! They had to invent riots and COVID and cheating to remove him...😮
I’d love to see what happens with their plan if they stop working today. How much money would they have left when they pass? What people fear is that they won’t have enough if they start withdrawing from their assets today. Thank you James, for sharing your knowledge and perspective.
There are tools out there that let you model these questions without paying an advisor more than 1% of your assets every year. I'm using one that is extremely detailed, cost me $100.
While the dollar amount is totally out of my league, the principles make sense and worthy to explore. Our portfolio is very modest, but so is our lifestyle, and our expenses are low. Both my wife and I know how to enjoy the simple pleasures in life, so that helps. This video and others have given us some additional info to take with us at our next appointment with our FA, who have been doing a good job for us thus far.
I love your content but you keep showing us case studies that have multi millions in their retirement.. can you use examples that are more realistic? like under a million.. if I have 3 million in my retirement no one is going to have to convince me to retire!!!
The overwhelming companies care about one thing only and that’s the bottom line, regardless of what they may say, after all it’s why they’re in business.
This shift in perspective to living more holistically is great. Passing with the largest portfolio is not the end goal. Yes. This case study is not the standard couple, but they also have much higher spend projected for the future than 99% of people will realistically need. More focus on finding time and fulfillment NOW is a healthy shift in planning.
James, thank you for the information and works that you put in to your channel. Me and my husband learned a lot from each of your contents we watched. You are a blessing to us. Thank you.
This is my 2nd video. At first, you seem too young to discuss "retirement and life", so I initially thought you would only provide surface-level knowledge. However, you not only explain things very well but also with great wisdom...a good advice from different perspectives. I am learning so much from you, and I find your videos to be very helpful and sincere.
Great video. I am 80. Retire at 67 and zoom you are 75. Then your health falters or your wife’s health falters. The best years have come and gone = The Guess Who Canadian band. So you had 8 years after a life of work. This is why your video is epic advice.
Retired three full years ago, at the age of 59! Planning on not drawing Security until I'm 70! (A passive income pays for all my monthly expenses now. And this will only get easier once I do begin to draw that big fat monthly SS check!) Lots of time on my hands and lots of interests to keep me busy and occupied! Life is good. Work hard kids and live within your means. And yes, start saving for the future now.
This is a scenario of a wealthy household that most people can't relate to, but this is still a good insight about older workers who refuse to stop working even though they have ample financial means to retire. The people I work with who refuse to retire are blocking opportunities for others to advance and improve their situation, which this ripples down the org chart and likely stifles progress. You can't force people to retire, but someone has to counsel these people on what their meaning in life is and how their choices are affecting others.
Use tools from Fidelity, Vanguard, New Retirement, FireCalc etc. to punch in your numbers. I actually use 3 of those and plus a CFP, makes it a lot easier to sleep and pull the trigger.
Interesting video, we are retired, and although we can easily afford a new car, we are so accustomed to saving, we are keeping our 2013 Subaru. Your video has caused us to maybe trade up to a newer car. Retirement does not seem to shut off the game of being frugal and saving for years before retirement. Once you develop the skill of working with financial advisors and seeing your money grow faster than your paycheck can, it becomes hard to undo. Your first million is hard to get, but the next millions come easily, even while you are sleeping.
In the first half of the video I got a little agitated because you were not getting to the point but the second half of the video you knocked it out of the park. Glad I stuck around
actually...as he laid dying in the hospital, my grandfather said, "I just want to go home and work"...I told him not to worry, I would take care of it....that was 30 years ago, I'm still at it.
Some people enjoy working and have a life/work balance that they are happy with. Maybe they have enough money to retire... But they don't see retirement as the beginning of enjoying the fruits of their labor. They are already enjoying life.
Great video James and an important perspective. Another way to say this is “Whose rules are we playing by?” Society’s? The social security administration’s? Let’s hope not. It’s important to take the time to step back and reevaluate what we’re doing and why. Is it still necessary to trade your time for money? If not, what do you want to retire TO?
Absolutely vital advice! The study that Perkins highlights is the 2018 paper by Banerjee et al on "Asset Decumulation..." So the purpose of their paper was the retrospective analysis of retiree non-housing asset spending over a 20 year period post-retirement. The interesting aspect of this paper's results was that asset decumulation was so conservative, that retirees still had 73 to 89% of their non-housing assets left after 20 years of retirement. Whether or not we will need 73 to 89% of our assets to pay for hidden medical expenses, will need to be studied, but personally it implies our fears are holding us back from living our rich life.
😅James, I am a 61 y.o. Canadian who really enjoys FP information that is applicable to us north of the border. You look like you are quite young, but this video shows that you are wise and educated beyond your years. Excellent content. I listen to lots of FP information and fail to understand why some planners push clients to keep working to 67 or 70 even though they have tons of money. I have been retired since age 53 and I'm neither bored nor poor. I'll be hiking in the Rockies tomorrow which sure beats working. Keep up the great content.
Some of us are happy being homebodies and enjoy simple life with only a few special travel trips now and then. We can sleep well knowing our expenses are low and an early retirement will be easy. Instead of buying a home in Fl..we will rent for a month....no 2nd mortgage...no insurance worries...just fun.
My brother retired a year ago, and just turned 60 y/o after years of planning and working. While waiting for his ultimate renovation of his home, he had a cardiac arrest. He was resuscitated and is now on a long path of recovery with many deficits. But, although he is lucky to be alive, he is unlikely to enjoy his retirement as he had planned. Yes, plan to age to a balance of zero.
This is why it is so important to protect your health throughout life. Your brother retired at a good age, not many people are fortunate enough to retire at 59. The problem is that he didn't protect his health along the way. Health must be the top priority, then time, then money.
@@davidk6498Exactly this. People love to point out the one case they know of where someone saved for retirement and then had a bad health event while ignoring the (literal) millions of retirees struggling to get by on a fixed income The numbers don't lie. People *consistently* underestimate how long they're going to live when it comes to retirement savings and then they suffer for it. Moral of the story: don't rely on dying to be your retirement plan
Although I agree with the hypothesis, the one variable you are not counting is mental health. You scenario of having them work less to enjoy more is the ideal since they will have the fulfillment feeling. Just stopping work brings more worries and mental health problems than working less and felling useful. Great insights. Congratulations
"Die With Zero" was an eye opener for me. Can you do a case study with giving 'our' inheritance now, while we are living. I have two adult children. Both with great jobs and are saving. They will be fine with or without what I leave them. I'd like to catapult their future financial potential By giving now, or in the near future. How do I assess the risk of doing that? What would be safe to give based on our savings? And, how accurate are these retirement projections? Do you have clients that have been using planning tools like the one you are demonstrating and they were "in the ball park?"
This is so awesome that you have this understanding at your age! I love this for you, and thank you so much for your videos! This is something many of us haven't figured out until we got to our fifties! 🙂
Why would they want to wait until til 67…..they could retire comfortable for sure right now. You can’t get time back and stress kills your health. Retired at 61 and after a couple of years I’m going to do a part time job with a fortune 50 company, but if I get stressed out I have the freedom to leave. My return on investments have covered my monthly expenses …even in a down market. I have some bucket list items I want to do as far as travel…..spend it and enjoy the money you’ve saved.
A really good video. Its not the numbers but principle James is trying to convey to his audience. He does it very well. Its worth watching the whole 28 minutes.
Not to mention, by my estimation they could benefit by doing $1,400,000 in Roth conversions. Quitting work now, and getting started on Roth conversions, would provide them a low tax rate on said conversions. It looks like they live in Texas, thus they'd have a 0% state tax rate on said conversions. I live in Texas, and plan to move to California in two years when I finish up with my Roth conversions by 12/31/25, after which, most are predicting higher federal tax rates.
I'm frugal and save, save, save. I retired at 38 years old because I could. My health is already limiting what I can do, so I just plan on leaving what I have saved for my kids so hopefully they will be better off going forward. I come from poverty and nothing has ever gotten passes down from previous generations, so I will be the first as will my sister doing the same for her kids. My brother however will have to work until he dies because he spends, spends, spends.
I LOVED your "taking a step back at work" scenario. Sounds kind of like a "coast-FIRE" concept. Since the pandemic I've seen two high performing individuals at my company step out of Management ranks to go back to Civil Engineer roles.
I’d love this comment because I think the majority of us are actually in this situation. Got no time to hear about people with millions in the retirement wondering if they should stop working should be obvious.
So did 'Bill' and 'Susan' decide to retire earlier!? I've got to know! I like to think that I'd have been retired already if I was in their shoes, although I can see how being a saver makes it really hard to switch to being a spender.
No money? None? People with no money don’t need James’ advice. They have options, but those options are more of a relying on friends/family/social services kind.
I had originally planned to retire at 65. However when I turned 60 I really started to think about my mortality and my potential health span. After a long period of reflection and thinking about how much money my wife and I really needed in retirement I decided to retire at 61-1/2. It was very difficult for me because I was obsessed with not running out of money in retirement and retiring early frightened me. I eventually convinced myself that the slight reduction in spending in retirement that was necessary would make no meaningful difference to our lives. Fortunately I was right. In fact, in the first 7-1/2 years of retirement we’ve underspent our budget every single year without sacrificing anything. You never know how long you have to live or, more importantly, how long you will be healthy. I think that retiring early was one of the best decisions in my life.
Thank you for sharing this and for showing us after the fact....
Ie: Not some hypothetical, but a success story that has been put to the test for the past 7 years!
And during a major Market downturn!
Anything further you'd be willing to share would be appreciated,
Such as your allocations and whatever percentage or strategy you employed.
Thank you in advance
Great Post! TY brother. The whole orientation of "do I have enough to retire?" is built around Sales of Stocks and high risk investments, not "us" as people.
Smart
Great story but because retiring and applying for SS benefits are two separate issues I was wondering if you applied for your SS benefit at 62. I retired at 55, I was going to collect SS at 62 but opted to wait. Every decision about when to retire is your own personal decision with no wrong answer. Thanks.
Thank you for sharing! I'm 59.5 and will retire next Friday! My health was my catalyst for making the decision to retire early. I don't want to wait until I have a lot more money but less health. No thanks.
I opted to retire recently at 62, after saving like crazy and paying off debt for a very long time. I could see that i was risking my health and ability to enjoy my retirement by sitting at a very stressful desk for another five years. In 10 weeks, I've made two quilts as gifts, I've walked the Camino de Santiago, visited a friend in Italy, more importantly, my health measurements have improved greatly.
I got my life back.... I can contribute to the community in other ways. More money would always be nice, but enough is simply enough.
Congratulations! I appreciate what you shared. Our situation is similar. We won’t have near as much saved as the example couple, but a very enjoyable and healthy, meaningful life can be lived on much less.
Well done Linda! Fixing my health numbers and contributing to the community are two things I look forward to.
So there's type a and type b personalities, you want to be type c, an in between where you are concerned about retirement but not so much that you hurt your health from stress or your relationship, or your life leading up to it
I retired at 59 1/2. I saved enough, downsized, and reduced debt. After retiring, my doctor reduced my blood pressure medicine by half twice in the first year. The stress of the job was killing me. Best decision I ever made. Now I have fun with friends and volunteer at the hospital a couple days a week.
We retired 8 years ago at 59 and 57. Best choice we ever made. We travel 6 months a year. The go-go years are only so long.
Congrats!
About to turn 58 in Dec 2024. However my wife, who’s currently the bread winner is only 53. Both in good health overall but my back and shoulder have prevented me from continuing my career. I’ve invested well and our monthly bills are very low so there’s limited stress. But even this adjustment has made us re-evaluate our retirement strategy. We’d like to retire simultaneously but given our age difference this may prove difficult. Plus side is her being a nurse she works 3 days per week. So we’re looking into reduced hours for her while keeping our insurance until she reaches 62 nine years from now. So I guess what I’m saying is allow yourself to be flexible and adjust accordingly. Wishing all who read this a happy & healthy retirement! 🙏❤️✌🏼
Watched several of your videos tonight for the first time. When I read your tag lines, and looked at you, my first thought was you are way too young to know what you are saying. I may have started off with each video a little skeptic, but as each one progressed, I kept saying "right on!" This kid knows what he's talkiing about, unlike so many financial planners. You have your clinets good at the front, vs. your own interest. You have a good sense of looking at everything from all angles and maintaining a balance. Keep up the good work.
The message is: If you won the game, stop playing.
James, this is the best video I have seen in many months. There is so much to this. My parents have done well over the years but in my opinion, have not enjoyed the fruits of their labor. Now as they are 78 and 81, they have more money than they know how to spend and no energy or desire to spend it. No vacations, and work, work, work is all they have done.
Maybe there's a balance between work and life, being old and not being able to enjoy money but also needing to be healthy enough to enjoy it which working fourty plus does not help
I’m team time+health. I retired at 62 with zero regrets.
Well done James! I retired a year ago at 58 1/2.... with $1.7M . My intent is to continue to focus on health, fitness and travel. Today my portfolio is $1.8M and I haven't worked even one hour. Still working on planning for more things I want to do in my free time.... but I'm no longer stressing about work!
sounds like me. Wife and I each have more value in our pensions and social security will provide us with our modest living as we have our whole lives. U made a good choice. Enjoy
I could have written exactly what you just did. Turning 60 shortly & loving life! Kudos, sir!! And we were each granted a new magic power: We wake up & turn every day into Saturday!
I just semi retired. Im 45 years old. I have not worked in about 3 months. Ive been spending time with my wife and kids, training for a half marathon, and finally sleeping. I will return to work next year but on my own terms and just half the amount I used to. This was a really good video.
I’m thinking about doing something similar, except screw going back to work. I want to start a business with limited costs like landscaping or something that gets me outside and I choose the jobs. I work in tech now so it’s good pay, but the work is pretty draining against my motivation.
@@whywouldigivemyrealname5162 - I'd recommend finding volunteer work, if you can find something to commit to; it tends to be more rewarding, even if it doesn't pay as well. My father retired at 55 (mainly due to stress-related illnesses), with my mother retiring 2 years or so later. 20 years in they are busier than ever, and they love it - he is pretty much rebuilt their church and maintains it, while my mother is heavily involved in foster care and caring for war refugees.
They are getting a bit slower in their age (mid 70's now), but they are still going strong, and the "work" has likely been one of the main factors in keeping them going.
I was a supersaver while working because I saw my employer downsize for a decade and knew my number would come up. As I was about to turn 58, my company decided to shut down the site and gave us the option of relocating or taking a severance/retirement package. I took the package and figured I would do part time work until my wife retired. She was 10 years younger (47yo) at the time. Her employer offered a basic pension plan and I figured that we could both fully retire in about 3 to 4 yrs. Great plan and an early retirement and we would still be young enough to enjoy travel, etc. Well, turns out that even though she looked and acted very young, her type 1 (childhood) diabetes was doing a number on her heart and she passed away suddenly from a heart attack at 48yo. We don't know know how much time we have left. We are told that we all live much longer than our money and the worst thing we can do is to retire too soon and run out of money.
Your video is great and really needs to be heard and heeded.
I’m sorry for the loss of your wife!
I am so sorry! What a terrible loss!
Sorry about the loss of your wife. Yes, life is full of ups and downs, stay strong.
"We don't know know how much time we have left"
Basic medical science tells us type 1 diabetics have a much shorter lifespan. You both should have known this.
Man, I feel for ya. But, I have heard this type of story more times than I care to count anymore. People that keep putting of retirement for one more year, year after year, are pushing their luck. I strongly advocate to everyone that if you have the means to retire... do it TODAY. Not next year, next season or whatever. You don't know when your number is up so get busy living.
Wisdom from a young person! You are an exceptional CFP sir. You obviously care about your clients and try to direct them in a way best for them. Bless you
I appreciate that!
The thought of working until age 65 just gives me nightmares. Watching family follow this path and then to die in their 70’s and 80’s never really enjoying that money is mind blowing. At 58 I am absolutely done and enjoying my free time. So pay down those bills, pay of that house, and put some money away. Have a plan to stay busy with projects or travel. Time is getting shorter with every passing day. ✌🏻
I didn't even need to watch beyond 5 minutes. As soon as I saw they had nearly three million saved, plus social security, plus a home, and were already 57 I said these people should retire soon if not immediately.
Agreed. They must have been considering a private jet purchase or having a separate plumbing system to allow for champagne spouts in every room.
LOL I quit watching after a while of his dealing with the couple with $12.5 million in retirement funds. Sure, everyone has problems, but almost everyone I've ever known is so far from that sort of situation that just about nothing applied to my life or those of anyone I know and most I have ever known. Too rarefied an air up there.
😂😂😂😂😂
This video is insulting, I have 8 trillion dollars in savings and earn 500k a year. Can I retire in 10 years. Come on James. Expect better.
This is equivalent to only 20% of retirees today. Not helpful to the rest of us.
I so appreciate him quoting Die with Zero. The life planning is so much more than bank balance.
For a young guy, James is wise beyond his years.
Apparently he isn’t smart enough to wear a shirt and tie
Thanks for your video.
I am 67 and have been working for over 50 years, it is very hard for me to retire completely.
My plan is to retire in June 2024 but I will be working 2 part time jobs.
Job1 - winter season - Teaching he USCG Captains License Class (8-10 weeks per year)
Job2 - Summer season - Teaching people how to use maneuver there boats on the water. (20 hours per week)
Philosophy (in its true meaning of "how to live") meets financial planning. This is simply wonderful. Thanks, James. It seems to boil down to this: how much is enough? It's easy to get caught in the trap of nothing is ever "enough". That's American consumer culture in a nutshell. So you have to learn to be intentional about this. I am no where near "Bill and Susan's" financial status (few today are). But when my financial advisor ran all my numbers, his report showed me dying with more than half a million in my estate. I worked a very cool but stressful job (surgical nurse) for going on to 40 years. Why did I feel guilty about retiring? A major component of successful aging is learning to let go. That doesn't mean giving up at all. It means taking life on its terms and shifting your focus. There is so, so much to life and to yourself to engage with.
the true meaning of philosophy is love of learning, nothing to do with money
To James:
Your programs are the best on UA-cam. The text screens you include are helpful. I recommend them to many. The comments that others post are VERY helpful, too. Thank you.
The right time to retire is when you no longer wish to work for a living AND you ARE POSITIVE that you can afford it.
But remember, if you leave your job without sufficient resources, you are not retired, you are unemployed.
Sweet, have fun never retiring.
We saved so much in our 20’s, 30’s, and 40’s that it was easy to say no to more promotions and say yes to more free time as we approach 50. Time and health don’t gain compound interest.
This is a wise young man! I retired in January, at 73. Although I am in pretty good health, I am not as vigorous as I was at 63. James' comment about "health and energy" struck a cord with me.
I would have retired earlier, even though that could have meant driving a 2-3 year old car vs. a new SUV...a smaller home vs. a mortgage payment free 3000 sq ft home, on 6 acres...and a portfolio of @$750k vs our current $1.3M. I would still have been debt free, either way.
Thanks for another great video James.
This is a profoundly important message. It's really not surprising that our culture of greed has produced this kind of insatiable pursuit of more money, even when it is utterly unnecessary for what we actually want to do in life. I fell victim to this irrational thinking, but thankfully I snapped out of it and realized I could retire much sooner and have a very comfortable retirement on a much smaller portfolio. Instead of working until 67 like I originally planned, I now plan to retire at 63. The couple in this example could easily retire at age 60, with zero compromises.
Sorry to hear about your culture of insatiable greed.
A light went off for me when you said that our work becomes a distraction. Work tasks are something that we know. Many of us have been in our careers for many years and we're familiar with what needs to be done there, and many of us respond to the problem-solving aspects of our work. So much so, that it becomes much easier to think about work, than it is to ask ourselves the bigger questions of what do we want the rest of our lives to look like. I write this as I'm working on yet another weekend! Thanks for these case studies and all your insight James.
My mother , a retired teacher died with close to $700 K at age 95. Last 10 years were definitely no go years. I wish she would have taken more trips and enjoyed that money when she was younger.
Good job on goals. I retired at age 61.5 and glad about it. All the hikes and bike rides are behind me with AFIB now at age 70. Now I just have memories that I am glad to have enjoyed with an active life before AFIB. Your advice is well taken and beneficial. An age 70 lifestyle is so different with an older body.
This guy gets it. Simple, foundational, rock solid advice. Good job.
Great video! Many years ago I planned to work until I was 70. But was going to do so while still taking epic trips every year. Once I started seeing friends and family around me pass around age 60 or be diagnosed with life changing diseases I moved my retirement date to 62 and may even retire earlier. We are not guaranteed a long healthy life and this couple is taking for granted that they are going to have the same energy levels and health they have today. Many retired friends tell me money really isn’t that important to them as it once was.
For some people, their work gives them purpose and a means to be social each day. That wasn't me, for sure. I knew I could retire at 55 with medical, so I researched and planned to a point of over planning as my spouse just presumed that 62 was the target. Because of the over planning, I retired on my 55th birthday and my spouse at 56. We still had one parent living in the area that we were able to assist as necessary. So glad we did the physical activities when we could. 17 years later and now my spouse is still recovering 16 months after breaking a leg and our days of taking 2 mile walks around our town are just a memory. Injuries happen so very fast and our ability to recover just isn't the same anymore. I hope you will find retirement to be an adventure with the freedom to pursue whatever you desire! I am so saddened to hear so many that failed to plan, act and research what their golden years were desired to be until they are disabled, laid off, or just plain quit. Since you are watching this informational video, you taking a very wise step in your planning!
I retired at age 62 since I had physical fitness, wealth, and needed time to make the next decade the best decade of my life. Time makes it much easier for me to run or bike or canoe or cross-country ski for 3 hours every other day in the sunshine. When I was working I would do a 3-hour run with a headlamp in the morning darkness before work.
Very good video James for getting us thinking about work-life balance earlier while we are still in good health. At 64, and shooting to collect SS (and retire) at full retirement age, I am now walking that line. My financial planner has told me that I can retire now if I wanted to, but I pushed that notion aside. Your video made me think again about being able to retire now despite the chaos and volatility we are experiencing on so many levels these days. Thank you very much! Note: I am no where near your example couple, but I understand the concept of enjoying life while you still can, ya neva know!
Giving yourself a demotion sounds good to some people - it sounded good to me. And I in essence did that. What people forget is that now you may well get an insufferable boss who’s now in your management role. The higher you go in any organization, the fewer layers you are beholding to, and the fewer chances you will have to be working for a jerk. That’s something to consider: a bad boss can make any job a misery.
This statement is the problem. It's not YOUR management role. Too many people work and try to increase their salary and their ego becomes tied to their salary which is why they don't want to give it up. Maybe humble yourself and just work your job instead of saying in the back of your mind you would do it a different way.
Honestly I’ve had many experiences as part of my life. When I retire in a few years there are very few places I want to go see in the world. My advice is travel when you are working and younger. Traveling is harder when you are older.
I did all my world travelling between 30-50 yrs of age. Best thing I ever did. I could climb mountains, rapel down waterfalls, scuba dive and enjoy life while my body was in good condition. Yes, get to 70 and body does slow down no matter how much you walk and work out at the gym. Enjoy life in your youngers years. Work hard and save but, don't wait
till you retire to enjoy life.
Good point. Besides the style of travel and what you enjoy is very much different in each of our life stage. Glad we travelled a lot along the way. No regret, only the memory and better understanding of the world.
I could not agree more. My dad worked until 77thinking he and Mom would travel after he retired. He worked to long and could not travel when he retired. I’m thankful we traveled early and retired early.
Get to 25x your expenses and retire. Life is way to short
I closed my construction company in 2008 at age 55 years old and tried 2 years of retirement. OMG, not for me. Started a construction inspection company in 2010 and oh boy who would know my last venture would provide me with a comfortable income for the rest of my life with little work and a nice office to visit and get out of the house
All valid points that are missed by so many wealthy folks. And we get that an extreme example is used to illustrate the concept. But unfortunately a much much larger portion of Americans, even those who have diligently saved, do not have the luxury of so much wealth that they have option of “backing away” from spending their lives at work at an early stage. Still the points are valid - balancing life experiences and future retirement wealth are a smart thing. That you can always work longer, but you cannot buy more time.
Thank you for this. I've watched 10 or 15 of your videos but this one was the most eleganty delivered and poignant. My wife and I are in this very similar situation and this spoke to us a lot. Bless you for sharing all the wisdom and knowledge you've gained, and being a good guide.
Working until 67 when you are worth $4M is the definition of insanity.
Unless you REALLY like what you do at work...
I find it strange the some people have no clue about the concept of FIRE.
I know someone rapidly approaching that situation. When they found out I was considering retirement, "so have you paid off your house?" They know my wife doesn't work, and they think I'm nearly destitute and cannot figure out how I could even think about retiring. They cannot retire because they gross about $1M/year, live in a home worth $4M and they own less than 1/2 of it. "We could pay off our house, but then we wouldn't have anything left." My only response is to express sympathy and try to encourage them to save and invest.
@@Sylvan_dBYou don’t actually NEED to own your own home. There’s this thing called renting… You also don’t need to live in a house worth 4 million to be happy.
In my late 30. I decided to take a leap and embark on a career change journey. It took a while to figure out exactly what I wanted to do and I did a lot of self-discovery work but it paid off. I now work in a profession that is so rewarding and satisfying for me that I hope to work as long as I can just because of the sense of fulfilment I get from it.
My neighbour, in his mid 80. still goes to work - few hours every day, just to get out of the house, be around people etc. Work can add meaning to people’s lives and be so much more than just a job.
I know of several people who passed shortly after retiring, as if they lost something that connected them to the vibrancy of life, where they felt needed and valued - but I guess that will vary depending on how you structure your life. Either way, work shouldn’t be the only thing that makes you tick but at the same time it can be a big factor in reaching life satisfaction
I read Die With Zero and it changed my life. I decided to retire 18 months at age 54 and don’t regret it for a second. Many of my friends didn’t make it to 54, and I don’t want to die with more life experiences unmet, and I don’t want to spend what could be my last years working.
You retired for 18 months?
Yeah, now do a case study closer to the median savings amount of people in the country.
My thoughts are exactly. Why would the couple even worry about retiring at 60 if they have such a high amount saved. $400K annual income is also not median amount in America. Please posting some helpful video with realistic & meaningful numbers that majority of people can apply.
Great video. Wish all financial planners could see things this way. I demoted myself from a C suite exec in my early forties and was able to retire by age 49. Great content.
yes
Some of the best videos on retirement that can be found on the internet. Keep up the great work. Love that you are about more than just the numbers
I have a general question - When you talk about the rate of return, do you take into account your fees as a financial advisor (and reduce accordingly)?
I really loved this one. I grew up lower middle class and I only envisioned my life up until like 25. I wanted to be a professional and make enough money to not stress about living expenses. I did it. “Yay” … but now what? I don’t know what’s next
Easily one of the best videos I've seen on this topic and sheds light on how many high earners/high savers think. Would likely change people's lives if they watch this! Nice work, James!
This is the second video I have watched of yours. I love this philosphy. I retired from teaching at 59. I have enjoyed the last 1.5 years on my teacher retiremtn and have been writing a book. I hope to get it published in the next couple of years and launch a 5th and final career making money from writing. I think your philosphy is right and I an going to have to buy into it more and spend some of my savings, or give myself permsion. Keep up the great work.
This is a power couple. These people are easily in the top 5% in the world financially. Please let's talk about regular people.
Top 5% of the world? They’re in the top 2% of the U.S., and close to being in the top 1%. For a world percentile, they are well within the top 1% if not the top 0.1%. You need to realize that even the average/median American is in the top 15% of the world.
I agree. These financial videos never talk about the regular people. No one I know that’s retired has a million dollars and most of these videos say you have to have that to retire. They are living comfortably on what they have.
Dude, most regular people are going to be screwed. They have not saved (deferred gratification went out of style in either the 40's or the 50's) pensions largely disappeared from the private sector starting in the 1970s' or so; and too many people don't realize that Social Security will only provide the bare minimum (and maybe not even that). As a result, we are seeing more and more seniors becoming homeless or living in an RV or a camper van, or in their cars.
@@johnurban7333 A lot of regular people who were teachers, firemen, cops have a net worth over a million dollars they also have a pension and health benefits for their retirement package.
There are plenty of "Regular people" discussions.
Learn what you can and move on.
No need for you to express your frustration at not having enough.
Great video, and it’s not about the absolute numbers. It’s about recognizing once you have the financial freedom to decide to do what you want to do as opposed to what you feel you have to do. As someone who put in 70+ hours a week, I retired as early as I could as them took a part-time job that I really enjoy. As long as I enjoy it, I’ll work. If not, I’ll re-retire ASAP.
James got this right at his young age while many of us do not realize until we are in the 50s or even later. Good job James!!
My retirement income is fine. It's the world I'm retiring into that has me worried.
We’re going into an election where the combined candidate age is over 150 years. What the fuck is going on in the USA…
@@whywouldigivemyrealname5162one has dementia and the other does not so use your brain and vote for Trump! BTW I am 62 and the 4 years of Trump were the overall best 4 years in the United States....in my opinion! They had to invent riots and COVID and cheating to remove him...😮
@@whywouldigivemyrealname5162 The candidates just don't have enough put away to retire yet :)
@@jacobrobbins6181 good one
@@jacobrobbins6181 LOL 😂
I’d love to see what happens with their plan if they stop working today. How much money would they have left when they pass? What people fear is that they won’t have enough if they start withdrawing from their assets today. Thank you James, for sharing your knowledge and perspective.
There are tools out there that let you model these questions without paying an advisor more than 1% of your assets every year. I'm using one that is extremely detailed, cost me $100.
I just stumbled on this video tonight and the message couldn’t be more timely. Thank you.
While the dollar amount is totally out of my league, the principles make sense and worthy to explore. Our portfolio is very modest, but so is our lifestyle, and our expenses are low. Both my wife and I know how to enjoy the simple pleasures in life, so that helps. This video and others have given us some additional info to take with us at our next appointment with our FA, who have been doing a good job for us thus far.
Thank you!
Apparently unlike the other fools on here who can't get past the dollar value,
You recognize the wisdom
So being really good at budgeting and understanding frugality is just as important as saving
assuming 8%
again -- why such high assumptions ?
I love your content but you keep showing us case studies that have multi millions in their retirement.. can you use examples that are more realistic? like under a million.. if I have 3 million in my retirement no one is going to have to convince me to retire!!!
You think that people with money find it easy to stop making more?
Eh, it's more like: who is his target audience as a CFP? People with 400k in savings or 4M? Average people aren't his target audience.
Maybe not...but at least they have the choice. Let's see one for someone who makes the median US salary instead of 1/2 million a year household
exactly!!
IMO: ‘normal’ sub-millionaire households are ‘on their own’- won’t pay from CFP or other professional services.
Work for a company that really values your well being. Stress is the killer.
The overwhelming companies care about one thing only and that’s the bottom line, regardless of what they may say, after all it’s why they’re in business.
Why would they value your well being. That's not what companies are about. Especially the ones that pay well.
This shift in perspective to living more holistically is great. Passing with the largest portfolio is not the end goal.
Yes. This case study is not the standard couple, but they also have much higher spend projected for the future than 99% of people will realistically need. More focus on finding time and fulfillment NOW is a healthy shift in planning.
James, thank you for the information and works that you put in to your channel. Me and my husband learned a lot from each of your contents we watched. You are a blessing to us. Thank you.
Excellent video. I have been pondering this question at 52. thanks for that.
This is my 2nd video. At first, you seem too young to discuss "retirement and life", so I initially thought you would only provide surface-level knowledge. However, you not only explain things very well but also with great wisdom...a good advice from different perspectives. I am learning so much from you, and I find your videos to be very helpful and sincere.
Thank you James! This is why my wife and I joined the Root Financial family! Chris Riboli is guiding us right now.
That’s great to hear! Chris is excellent.
James, we have watched many of your well-done videos and have learned a lot about retirement preparations. Thank you! We appreciate you.
Great video. I am 80. Retire at 67 and zoom you are 75. Then your health falters or your wife’s health falters. The best years have come and gone = The Guess Who Canadian band. So you had 8 years after a life of work. This is why your video is epic advice.
Retired three full years ago, at the age of 59! Planning on not drawing Security until I'm 70! (A passive income pays for all my monthly expenses now. And this will only get easier once I do begin to draw that big fat monthly SS check!)
Lots of time on my hands and lots of interests to keep me busy and occupied! Life is good.
Work hard kids and live within your means. And yes, start saving for the future now.
Excellent way of thinking about how to align money and lifestyle with what’s most important to you!
As I learned watching the news, reading newspapers, and listening to Hollywood, Bill and Susan are privileged
This is a scenario of a wealthy household that most people can't relate to, but this is still a good insight about older workers who refuse to stop working even though they have ample financial means to retire. The people I work with who refuse to retire are blocking opportunities for others to advance and improve their situation, which this ripples down the org chart and likely stifles progress. You can't force people to retire, but someone has to counsel these people on what their meaning in life is and how their choices are affecting others.
James!Please do videos for average SINGLE people looking at retirement
agree!!!!
Simply take the same principles and apply them to your specific goals, is my suggestion.
@@thepenman357great but how? any windows software or SaaS we can use to plug in our numbers?
Use tools from Fidelity, Vanguard, New Retirement, FireCalc etc. to punch in your numbers. I actually use 3 of those and plus a CFP, makes it a lot easier to sleep and pull the trigger.
@@robertkerr229 I just strated using a software called New Retirement. Pay for the subscription - worth it. $120/ year.
Interesting video, we are retired, and although we can easily afford a new car, we are so accustomed to saving, we are keeping our 2013 Subaru. Your video has caused us to maybe trade up to a newer car. Retirement does not seem to shut off the game of being frugal and saving for years before retirement. Once you develop the skill of working with financial advisors and seeing your money grow faster than your paycheck can, it becomes hard to undo. Your first million is hard to get, but the next millions come easily, even while you are sleeping.
In the first half of the video I got a little agitated because you were not getting to the point but the second half of the video you knocked it out of the park. Glad I stuck around
Thanks for using higher portfolio amounts. A variety of examples is helpful.
Glad you like it!
A great message and tomorrow is not a guarantee. Nobody on their deathbed ever said "I wish I would've worked more"
actually...as he laid dying in the hospital, my grandfather said, "I just want to go home and work"...I told him not to worry, I would take care of it....that was 30 years ago, I'm still at it.
Some people enjoy working and have a life/work balance that they are happy with. Maybe they have enough money to retire... But they don't see retirement as the beginning of enjoying the fruits of their labor. They are already enjoying life.
Great video James and an important perspective. Another way to say this is “Whose rules are we playing by?” Society’s? The social security administration’s? Let’s hope not. It’s important to take the time to step back and reevaluate what we’re doing and why. Is it still necessary to trade your time for money? If not, what do you want to retire TO?
Absolutely vital advice! The study that Perkins highlights is the 2018 paper by Banerjee et al on "Asset Decumulation..." So the purpose of their paper was the retrospective analysis of retiree non-housing asset spending over a 20 year period post-retirement. The interesting aspect of this paper's results was that asset decumulation was so conservative, that retirees still had 73 to 89% of their non-housing assets left after 20 years of retirement. Whether or not we will need 73 to 89% of our assets to pay for hidden medical expenses, will need to be studied, but personally it implies our fears are holding us back from living our rich life.
😅James, I am a 61 y.o. Canadian who really enjoys FP information that is applicable to us north of the border. You look like you are quite young, but this video shows that you are wise and educated beyond your years. Excellent content. I listen to lots of FP information and fail to understand why some planners push clients to keep working to 67 or 70 even though they have tons of money. I have been retired since age 53 and I'm neither bored nor poor. I'll be hiking in the Rockies tomorrow which sure beats working. Keep up the great content.
Some of us are happy being homebodies and enjoy simple life with only a few special travel trips now and then. We can sleep well knowing our expenses are low and an early retirement will be easy. Instead of buying a home in Fl..we will rent for a month....no 2nd mortgage...no insurance worries...just fun.
This video was excellent thank you for making it. Will save a lot of people a lot of headache and help them better enjoy their time
Best thing I believe you have ever put out. Thanks so much.
My brother retired a year ago, and just turned 60 y/o after years of planning and working. While waiting for his ultimate renovation of his home, he had a cardiac arrest. He was resuscitated and is now on a long path of recovery with many deficits. But, although he is lucky to be alive, he is unlikely to enjoy his retirement as he had planned. Yes, plan to age to a balance of zero.
This is why it is so important to protect your health throughout life. Your brother retired at a good age, not many people are fortunate enough to retire at 59. The problem is that he didn't protect his health along the way. Health must be the top priority, then time, then money.
That's usually what people say when they have not saved at all the cherry pick a situation that makes then feel better about there Yolo life style😮
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Well done Bill and Susan.🎉
@@davidk6498Exactly this. People love to point out the one case they know of where someone saved for retirement and then had a bad health event while ignoring the (literal) millions of retirees struggling to get by on a fixed income
The numbers don't lie. People *consistently* underestimate how long they're going to live when it comes to retirement savings and then they suffer for it. Moral of the story: don't rely on dying to be your retirement plan
Although I agree with the hypothesis, the one variable you are not counting is mental health. You scenario of having them work less to enjoy more is the ideal since they will have the fulfillment feeling.
Just stopping work brings more worries and mental health problems than working less and felling useful.
Great insights. Congratulations
I Love this one, this is one of the your Best ones Thank you this is Right on time!
"Die With Zero" was an eye opener for me. Can you do a case study with giving 'our' inheritance now, while we are living. I have two adult children. Both with great jobs and are saving. They will be fine with or without what I leave them. I'd like to catapult their future financial potential By giving now, or in the near future. How do I assess the risk of doing that? What would be safe to give based on our savings?
And, how accurate are these retirement projections? Do you have clients that have been using planning tools like the one you are demonstrating and they were "in the ball park?"
Love your channel James - we will miss you when you retire early to enjoy your own life!
Your presentation and information is extremely valuable and keeps the attention of your audience. Please keep producing great content.
This is so awesome that you have this understanding at your age! I love this for you, and thank you so much for your videos! This is something many of us haven't figured out until we got to our fifties! 🙂
This is the best episode, we are living in it!
Why would they want to wait until til 67…..they could retire comfortable for sure right now. You can’t get time back and stress kills your health. Retired at 61 and after a couple of years I’m going to do a part time job with a fortune 50 company, but if I get stressed out I have the freedom to leave. My return on investments have covered my monthly expenses …even in a down market. I have some bucket list items I want to do as far as travel…..spend it and enjoy the money you’ve saved.
A really good video. Its not the numbers but principle James is trying to convey to his audience. He does it very well. Its worth watching the whole 28 minutes.
To be honest I was scared you were gonna say their retirement amt wouldn’t be enough for retirement now days. I’m glad I kept listening! Haha
This message is completely appropriate for me today at 50+. It would have been the worst advice I could have received in my teens, 20s and 30s.
What software program did you use James. I would like to get a software program like this
Not to mention, by my estimation they could benefit by doing $1,400,000 in Roth conversions. Quitting work now, and getting started on Roth conversions, would provide them a low tax rate on said conversions. It looks like they live in Texas, thus they'd have a 0% state tax rate on said conversions.
I live in Texas, and plan to move to California in two years when I finish up with my Roth conversions by 12/31/25, after which, most are predicting higher federal tax rates.
I'm frugal and save, save, save. I retired at 38 years old because I could. My health is already limiting what I can do, so I just plan on leaving what I have saved for my kids so hopefully they will be better off going forward. I come from poverty and nothing has ever gotten passes down from previous generations, so I will be the first as will my sister doing the same for her kids. My brother however will have to work until he dies because he spends, spends, spends.
Great advise for multimilioners. I hape they don't get in financial trouble when they retire.
I LOVED your "taking a step back at work" scenario. Sounds kind of like a "coast-FIRE" concept. Since the pandemic I've seen two high performing individuals at my company step out of Management ranks to go back to Civil Engineer roles.
First time seeing your content on my feed. I really like your presentation. You earned a new subscriber.
Could you kindly share what tool did you when running different scenarios?
Although I love the process that James shares, I generally feel like a pauper after watching these
What financial planning software do you use ?
ABSOLUTELY FANTASTIC!!😊
The book "Millionaire Next Door" was helpful to us, since we are lower middle income. We're retiring at 59/62 yrs old with a $5000/mo plan (average).
I’d love this comment because I think the majority of us are actually in this situation. Got no time to hear about people with millions in the retirement wondering if they should stop working should be obvious.
So did 'Bill' and 'Susan' decide to retire earlier!? I've got to know! I like to think that I'd have been retired already if I was in their shoes, although I can see how being a saver makes it really hard to switch to being a spender.
Can you please do one with people that have no money😮😢
No money? None? People with no money don’t need James’ advice. They have options, but those options are more of a relying on friends/family/social services kind.