As someone who would "qualify" as HNW I don't agree with your estimates of what a person needs in retirement relative to when they are working. Of course personal finance is personal so everyone has their own journey but from folks I have observed the percent of income needed to maintain an excellent lifestyle drops for at least 3 reasons. First, many individual at these levels go into retirement debt free. Consequently, there is no mortgage to pay on a monthly basis and that by itself can mean $5,000 and more per month reduction in expenses. Second, once in retirement there is no need to be saving for retirement so this saves more tens of thousands per year or at least a $2,000 per month. Third, once we get into our sixties the kids have moved out and/or have incomes of their own so they don't place the same type of burden on their parents. Also there is no college to pay for. The reduction in expenses can vary significantly but even $500 to $1,000 per month would not be unreasonable. There are other reasons but you get my point. That same 15k per month could easily drop into the 10 to 12k per month expense level and enjoy a very comparable lifestyle.
Thank you for watching! In this video specifically, we are referring to the net-take-home need that someone would have when they retire. IE - If you make $100,000 gross, you may only take home $70,000 after 401(K) contributions and taxes come out of your paycheck. If that $70,000 is what you are living off of, then that is the annual income goal for retirement potentially. Another way to look at it would be if you are planning for retirement, and as you stated, the debt is gone, and the kids are gone, and you aren’t saving anymore, how much money do you need hitting your bank account each month to live that lifestyle? The items you mentioned when referring to the example we shared are already considered, meaning the $15,000 is the net (after taxes) need that his example family needed to live their life the way they want. We hope that helps, & are posting a video soon that goes into this further!
@@wasmithfingroup I get you intent but this is a very, very high income group in the 98/99 percentile. I would estimate that 15k plus 8k I mention take you to 23k or 276k per year before taxes. Assuming 24%Federal and 6% State taxes that suggest and income of $394,285 per year which is where I get the percentile. You are addressing a very small percentage of households with these numbers.
I have been W2 average $250,000 for 30 years - software sales Total net worth $2.6 million Zero debt 63 years old Kids off payroll - I paid for private high school and college for two sons These Advisors are missing the boat by pretending they understand “high net worth” mind set I have always lived below my income. I guess the Advisors want you to attract the large nest eggs to sell Annuities? The “high rollers” are using prestigious firms where they can throw around the name of their Wealth Manager at the Country Club gathering. Keep up the videos. But - maybe change your focus? Or, at least give specifics on your client mix of net worth or assets under mgmt Go Bucks !
Thanks for your comment! This video is designed to help as many people as possible and remain high-level. Unfortunately we can only get so specific without diving into people's specific situations. With that being said, we have a few videos in the works where we get a bit more granular on this topic. We appreciate you watching!
Thanks for all your excellent content creation in 2023; I anticipate more in '24!
You are very welcome! A new video will continue to be released every Sunday. Thank you for watching!
@@wasmithfingroup Outstanding!
As someone who would "qualify" as HNW I don't agree with your estimates of what a person needs in retirement relative to when they are working. Of course personal finance is personal so everyone has their own journey but from folks I have observed the percent of income needed to maintain an excellent lifestyle drops for at least 3 reasons. First, many individual at these levels go into retirement debt free. Consequently, there is no mortgage to pay on a monthly basis and that by itself can mean $5,000 and more per month reduction in expenses. Second, once in retirement there is no need to be saving for retirement so this saves more tens of thousands per year or at least a $2,000 per month. Third, once we get into our sixties the kids have moved out and/or have incomes of their own so they don't place the same type of burden on their parents. Also there is no college to pay for. The reduction in expenses can vary significantly but even $500 to $1,000 per month would not be unreasonable. There are other reasons but you get my point. That same 15k per month could easily drop into the 10 to 12k per month expense level and enjoy a very comparable lifestyle.
Thank you for watching! In this video specifically, we are referring to the net-take-home need that someone would have when they retire. IE - If you make $100,000 gross, you may only take home $70,000 after 401(K) contributions and taxes come out of your paycheck. If that $70,000 is what you are living off of, then that is the annual income goal for retirement potentially. Another way to look at it would be if you are planning for retirement, and as you stated, the debt is gone, and the kids are gone, and you aren’t saving anymore, how much money do you need hitting your bank account each month to live that lifestyle? The items you mentioned when referring to the example we shared are already considered, meaning the $15,000 is the net (after taxes) need that his example family needed to live their life the way they want. We hope that helps, & are posting a video soon that goes into this further!
@@wasmithfingroup I get you intent but this is a very, very high income group in the 98/99 percentile. I would estimate that 15k plus 8k I mention take you to 23k or 276k per year before taxes. Assuming 24%Federal and 6% State taxes that suggest and income of $394,285 per year which is where I get the percentile. You are addressing a very small percentage of households with these numbers.
I have been W2 average $250,000 for 30 years - software sales
Total net worth $2.6 million
Zero debt
63 years old
Kids off payroll - I paid for private high school and college for two sons
These Advisors are missing the boat by pretending they understand “high net worth” mind set
I have always lived below my income.
I guess the Advisors want you to attract the large nest eggs to sell Annuities?
The “high rollers” are using prestigious firms where they can throw around the name of their Wealth Manager at the Country Club gathering.
Keep up the videos. But - maybe change your focus? Or, at least give specifics on your client mix of net worth or assets under mgmt
Go Bucks !
This content is to cookie cutter/basic for HNW individuals
Thanks for your comment! This video is designed to help as many people as possible and remain high-level. Unfortunately we can only get so specific without diving into people's specific situations. With that being said, we have a few videos in the works where we get a bit more granular on this topic. We appreciate you watching!