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Yikes. I retired at 44. I pay under $200/Mo for a bronze ACA plan. Is the $500 for a family of 4 or...?

I purchased your software back in July and would like to erase everything and start over with it, Is that possible?

Wall Street is more of a casino than Caesar’s palace

When paying off the mortgage ie pulling 450k from portfolio, did you factor in the reduced cash flow needs to make those payments on the outcome?

I understand that "diversification is good". But friends of mine are still fuming because they had around 75% of their 5 million investment dollars in Microsoft back in 2018, then they decided to get a financial advisor. Their financial advisor then had them sell almost all of their Microsoft stock and diversify - and (as of today) Microsoft is now up over 350% from when they sold. 😝

Anyone know what part-time job, working 3 days a week pays $40k?

Great Video!

Grateful for this channel! You're one of the rare financial advisors I can listen to without me needing to separate the wheat from the chaff of their song-and-dance.

Yep, I met with someone at Root several times and then they told me it wouldn’t add value if I worked with them. So much integrity.

Joining the Root Family was the best decision my wife and I ever made. We had several other advisors, traditionally-minded, before coming to Root. You helped us retire about 10 years earlier than our other planners had us on track for! We got tired of losing large sums of money among the cracks between our estate planning attorneys, accountant, and traditional financial planner. It was like pulling teeth to get them to talk to one another. Absolutely LOVE getting more free time to live life, instead of stressing about the details and tax planning, my prior team seemed to be overlooking. Love you guys!!!!!!!!!!!!

Fuck that I'm retiring at 58

I am a current Root client and probably more financially literate than the average person. I will say that maximizing your wealth is WAYYYY more nuanced than accumulating wealth. I managed our portfolio myself for over 20 years when the goal was accumulating wealth. Eventually the portfolio got big enough I knew that my DIY strategy was leaving money on the table and I did not know the first thing about retirement planning (at the time). So we hired an FA about 10 years ago who added value by standing up a good retirement plan with specific milestones that showed us how and when we would get to retirement while avoiding big mistakes and limiting downside. However, we never had a meaningful discussion about withdrawal strategy, tax planning, or estate planning (how to pass money to our kids while minimizing taxes). Once my spouse retired early last year this gap in our plan became very obvious. We needed to focus on maximizing wealth vs. accumulating wealth. Since I was still pulling a paycheck it was not a huge issue. Fast forward to today with Root and I have recently joined the recreationally employed club two years earlier than originally planned based on the tax savings alone. There was a huge opportunity to optimize taxes since we have several years before starting SS. I'm also saving thens of thousands per year in the elimination of the hidden fees. Lastly, the collaboration with my Root FA is much better than my previous FA because of the tools and the fact other FA's just won't do certain things due to their own internal compliance policies. So access to tools and better tech has made the relationship easier and more collaborative.

you probably know this already, Ari, but Fidelity now offers a brokerage option within its employer-sponsored 401k plans. my employer started offering it about three years ago.

Good video. I came to know fees or expenses ratio in each funds after many years of starting 401k. Even though, most of the 401k plans has very limited options, each plan must definitely have low cost funds (example large cap or sp 500). It is better to park there rather than IRA. Sometimes, too many options are bad, particularly in retirement. Furthermore, 401k is flexible than IRA, if I am not mistaken..

Taking a 401(k) in-service withdrawal can offer short-term financial relief, but it's crucial to weigh the benefits against potential tax implications, penalties, and the impact on retirement savings.

Well it depends. If you’re in a state that allows it there is Pontera but like you said in a previous video, they may qualify for in-service distributions to rollover and begin the wealth management and financial planning strategies. Even if you cannot manage their 401(k) you can still accomplish most if not all of the services you mentioned would help them.

Great piece of content....filled out the form, waiting for my turn in line. Talk to you soon....

do you have a video on inheritance and tax

The most authentic video in the financial service industry I have ever seen. Thank you Ari for your consistent high quality retirement planning/ management content.

With a personal finance interest for many years and handling my investments, I have a good understanding of many basic to intermediate things. Now in early retirement for several years. But recently adding in the Right Capital software has really put something more to it. So worth having. Thank you for making it available!

I am trying to retire in the month I turn 50.

15:01 if you’re already in a high tax bracket, how could taking money from an IRA, taxable at your marginal rate, be more tax-efficient than taking capital gains, even if at 20%? (Ignoring the fact that, if you’re in a high tax bracket, why are you doing either?). Unless your goal is maximizing an estate and taking advantage of a step-up in basis.

Thanks Ari for all you provide. Have you done a video on the importance of keeping a lower percentage of overlapping equity funds in ones portfolio?

In 1998 I started working at a catholic school. The nun suggested a fidelity growth fund and a blue chip fund. The latter was $40 a share in 1998. Today it's over $200. Thank you Sistet! :)

I’m 40 and Manage my own money ( $1.1Million) until I have enough to hire you guys 😅 Think you all said $2Million no? Wife 37 and we plan to retire in 17 years

CrowdHealth is a non faith based alternative to faith based coverage, it's not insurance per say it's a group membership coverage that negotiates lower bills by offering cash payments to provider..

Is it my imagination or has Ari made multiple videos about this question ? I appreciate the willingness to discuss the topic, and the article Ari mentioned really is worth reading because it attempts to assign value to the different services a company like Root offers. The take-home message (as I read it, anyway) is that a potential client should discount the CFP value by those services they either do not need, or do themselves competently. On the other hand, I am not impressed by hand waving. 'Peace of mind' is too nebulous to mean anything to me. ' UP TO 3x growth greater than our fees' tells you nothing about the opportunity cost or what the growth would have been without the fees. It is all too easy for a CFP to take credit for good years and blame the market for bad years. Those are the actions of politicians, not a CFP attempting to actually quantify added value. And as an aside, I find it more than a little obnoxious when a CFP takes credit for a service that amounts to a referral to someone else who will have additional fees. That is not a fair accounting. If I sound critical on this topic, well -- I am. At the same time I realize that this is actually a very difficult topic to sort out with confidence. I suppose I am saying 'I appreciate the effort, but Ari can do better.' Here is my personal take, in the context of a DIYr: I am very confident that I will never be as competent as Ari, let alone James. But I think I have put in enough effort and study to reach somewhere in the range of 80% - 100% as effective, depending on the topic. In that context, I don't think either can make up the 1% AUM fee with what I leave on the table. Actually, I don't think either can come close, but that is specific to me and I only mention it to say that every potential client should go through the exercise. And since a fair slice of my competency is from education that these two have provided, I am profoundly grateful and I think they provide an amazing service to those who for whatever reason do not become Root clients.

Many don’t need an advisor, but need discipline and proper guidance/education. And hopefully, we can access quick Q&A type of information if necessary! Love your academy, which gives us great info and tools. Nice topic!

Thanks for sharing your perspective. It is definitely work to do a good job yourself. I have spent hours educating myself through TH-cam videos by great people like you and James. You two are the best.

Great Video! I saw the link to the "Early Retirement Academy", but since I am now retired, and my wife is going to retire in 5 years, is it appropriate for us? BTW I am 67 and haven't started to draw Social Security yet and my wife is 60.

Does paying the $300 for the academy give you full and unlimited access to the planner? Are you able to do multiple what ifs simulations in the planner? I currently am using BoldIn, but would like to run my numbers through another online planner. Root planner appears to have more options to work with versus Boldin.

I wish I knew this when I was working. My employee would make me so mad with always switching funds and limiting options. I had no interest in target funds and over half of the options were these. Early on my employer offered all of fidelity funds, It was great. I always wondered why it changed. I could have made a lot more money had I been able to stick with my allocation/fund plan. Thanks for the info. The things we would change if we could do it over again. I wish I knew then what I know now. TH-cam wasn’t around then.

Nuveen is not like Vanguard as it produces high-cost funds compared with low-cost Vanguard funds. The example portfolio illustrates an investor without an asset allocation plan. Three of the funds in the example are large-cap growth. Our 401k plan has access to low-cost institutional-class index funds, including S&P 500, S&P 400 Midcap, Russell 2000 Small Cap, Developed ex-US, and Emerging Markets indexes.

This guy looks like the Annoying Orange. Now I can't unsee it.

This guy looks like the Annoying Orange. Now I can't unsee it.

With this software, does the monthly retirement expenses include a mortgage payment (let’s say a mortgage is still owed and set up in the software)?

16 minutes 😂😂😂😂 the answer is yes ans needs no further information

This is all very interesting. But, one thing that is often forgotten is that when one spouse dies, the tax rates on the survivor essentially double. That make it even more important to do this sort of planning at a younger age.

I agree that they should be doing ROTH conversions but I also think that they should be spending more money in those early retirement years. 🎉

Great info - thanks! Question about the tool: About 10m into the video you discuss Healthcare and add it as an expense by editing an Action Item. Is this something we have access to in the Academy early retirement tool, or is this something you/my advisor would need to do?

Love your stuff, Ari, and even have an appointment coming up with you, but I'm going to have to give you some hate on this one and had to even put the dreaded thumbs down here, which is something I almost never do. My disklike isn't that you have different opinions with Dave, as I do myself, but by other things I have explained below. First issue is that Dave did not tell the caller that the first thing they should do is to go by rental property. You even mention that we just heard him say it, but no we didn't, because that's not what he said at all. He only mentioned that as an option and just happened to be the first option he brought up. It was not specific advice telling the caller that that was the number one thing they should do once their bills were paid. Secondly, while I agree with you that Dave may have gotten too complicated here, and can do at times, this was not about his Ego. He continually talks about the importance of an advisor acting as a teacher so that the client can better understand the possible outcomes of their money based on the decisions they make. I agree he might have gone into more detail than was needed or I would have personally said, but it wasn't based on his ego and I feel it was a bit of a cheap shot on your part. Next, pulling a snippit of Dave talking about investing in the S&P 500 while not disclosing the larger picture he often preaches, and then critiquing him on top of that is just wrong. It gives the appearance you either chose to pull a snippit you could critique, that you don't have the full knowledge of what he preaches, or that you chose to leave that information out, all which are reasons it would have been better left unsaid to begin with. I know you're a good person, so I'm assuming you meant nothing by it, but Dave constantly talks about having money invested in other areas including different growth funds, growth and income, international, high rate savings for emergency, etc, and even shares what types of accounts he personally puts his own money in. You have to understand he is engaging with someone over an approximate three-minute phone call, not a 21-minute video such as this. He is throwing out brief cliff notes trying to get people turned around or started in the right direction in a very short period of time. And lastly, I understand your opinion on keeping the mortgage, and I choose to do the same. As you have said, it's "personal finance." I believe it should be noted, however, that I've heard him tell callers that he wouldn't call anyone stupid for not wanting to pay off their mortgage early as he recommends, as he understands the argument and financial reasonings against it. He has stated that he is personally for it, also backed by other studies, because he has found that the peace of mind and comfort it gives to the person who has paid their mortgage off has been worth more to that person than the dollars they would have saved had they chosed to pay it off over a longer period of time, the exact same feeling you described by not having a car payment. It's not about the financial decision here but the peace of mind and freedom it gives to the person, and that is a real cost often overlooked that can have real consequences such as added stress and potentially poor health. Your videos are great, I love learning from what you have to say, and I do believe you are a genuinely good person, but I found this video to be disappointing, and a bit "low rent," as they say. Dave is a bit of an icon, and while he may be controversial at times, I don't believe misstating what he has said or ommiting pertinent information to his arguments does anything to add positive value or to increase the reputational strength of your channel. I would argue that it does the complete opposite. But I do appreciate you inviting us to share our feedback, knowing it wasn't all going to be favorable. That takes courage in itself and an open mind.

Sure, if your 401(k) happens to allow those options. Chances are if your 401(k) has high fees it also won't allow any in-service anything unless it allows them to charge a fee. Loan? Of course, just a $150 initiation fee and a $10 per payment processing fee. Hardship withdrawal? Naturally, with a $150 processing fee. So glad to be done with that nonsense! (still must deal with federal nonsense - they are experts at creating complexity and I don't see any solution)

If they only have $300k in their brokerage account how are they ending up with so much at end of life?

I just stumbled on your site yesterday. I like what you’re doing here. Thank you for being informative and creating awareness for my retirement planning.

My plan offers index funds with incredibly low expense ratios. I made the mistake of rolling over one 401(k) to an IRA and found out the expense ratios I was paying (to the broker and for the funds themselves) added up to almost 2% a year! I moved that money to my employer-sponsored plan and have been seeing much better growth, since there are almost no fees.

Great case study - thank you! Love the software and am going to have to join. Question on this one. Why did the withdrawal rate spike up so much in the last two years of the plan? I must have missed that.

All of these videos miss one important concept. Reinvesting manditory withdrawls. My wife and I need to pull 15k/mo or 175k/yr-we don't need all that money most of the time so we reinvest it again into another brokerage account. We never break 120k/yr in spending-we have trouble breaking 100k unless we go on an african safari or something. We can live off of 3500/mo most of the time-pay our bills and food electric etc. House/cars/water sewer is paid in advance by 5 yrs. 5k is more than enough to play golf 5x week with memberships and travel here and there by car. Reinvesting your investments you must sell is a must unless it's not enough to pay the bills. Our average return from the market has been 22% annually. I love to watch my stocks and be smart and look for trends. We have 11m now and my wife still wants to work. Mainly just to cover medical insurance bill. But she only works 1 day a week 40 days a year. My job is to watch the investments. I shorted DJT stock at 33.00 with a strike of 9.50 for only 11%. That's worth about 1.7m if I can close it in the next 2 weeks. Be smart. Know the world around you. LOL... I just got the email my strike was met and contract was closed. I just made another 1.7 million. LOL. Trump is the Dump.

Can they financially retire? Of course. It’s the mental, social, purpose aspect that gets us and is not for everyone. -Early retiree

Extremely helpful.