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Do not retire unless your investments can generate enough dividends to support your desired lifestyle and then some.

Well done case scenario and very helpful - my situation is similar to hers - a couple of observations (just my opinion): 1) The likelihood of living to 90 now is still pretty low, 85 is more realistic and would change her percentage higher. 2) Those of us in our mid-late 50s most likely will doing something else with our time to make additional income through the full retirement age (67) - I know I will be - so that will bump up the percentage. 3) There seems to be a narrative now on social media to delay SS until 67 and I think this stems from the predicted shortfall on the SS trust in 10 years - so I will be taking mine as soon as possible. Like other GenXers I have been contributing to this pot since getting my working papers at age 15 and I am taking it as soon as I can- delaying only helps the government delay paying what it owes retirees. (I can almost guarantee they will bump the early retirement age up soon).

Purchase (2) modest investment rentals. (I own 4.) It is a part-time hands-on business and a ticket to a comfortable retirement if you are willing to deal with the headaches. I buy clean low-mileage cars in cash and I carry no balance on credit cards. I "retired" 10 years ago and my portfolio is worth more now (inflation considered). I will not outlive my resources if I live to be 100.

Take your Social Security as early as possible. In the numbers in inflation rate and the dept of the USA is missing.

Can you do a video on pizza in retirement. Ty

The fact he is telling her to be more aggressive at retirement age says he doesn’t know what he’s talking about. Ask people that were advised to do this in 2005-2007.

Interesting that the key question went both unanswered and unaddressed: can she retire? The answer is no. 700K simply does not generate enough income to fund a retirement whether you annuitize it, or draw does 4-7% per year. And what is the source of funds to replace the deferred Social Security? It does not exist in this scenario. The Monte Carlo analysis has merit but it did not address the core issue: how much can her net worth generate in annual after tax income to support a retirement beginning age 59 or 60. That detail was nowhere to be seen.

Move to another country with cheaper cost of living.

Depending upon where she lives and other factors she might be able to sell the house and buy a smaller condo or townhome. Then she could bank the difference in her portfolio increasing the success rate. Seniors where I’m at can buy a small manufactured home for around 200K or less. She should probably keep working til 60 or do something part time until 62.

Generic answer. - $1mm for every $40k you need in income, ive run the ret calcs hundreds of times and the 4% rule generally gets you in the ballpark though spending is rarely linear

If you have ZERO DEBT then go for it! Also, remember that sometime in your 60s and 70s you WILL seen a significant market decline. So, the question becomes will you live long enough to recover from the drop in your portfolio! Finally, take your SS at 62! Good luck!

Great video! It's so important to understand how much you need for retirement, but it's also crucial to diversify your portfolio. I recently started investing in crypto through My Digital Money, a platform that allows you to trade cryptocurrency in a tax-advantaged IRA. It's a game changer! What do you guys think about adding crypto to your retirement plan?

If she retires she's and delay SS she's not going to get full SS because she doesn't have a salary any more for contributions to be taken out. It's that how it goes.

Asking this kid on retirement advice…. Lmfao

With a "break even" point of 77, she will make more money every year after that date, but everybody spends less in later years. Take your Social Security at 62 (unless you want to leave a bigger annuity for your spouse) and enjoy the money while you can.

I could retire easy with 700k

I came up with a plan. I'll try and make more money today so I don't have to ask if I can retire tomorrow.😅

Thanks for this analysis for a SINGLE person (Like me) and yes she can retire. One of the things I liked about your analysis was it is an ongoing work in progress where you can change spending if needed to either spend more or less just like you would when you were working. One thing I would add is if she had more money outside of her 401k to bridge the gap between 58 and maybe 60 years old or to use that cash to live on when the market is down. Having 2-3 years of living expenses outside a retirement account can be VERY beneficial. Finally, she has a lot of money locked up in her home and this can also be tapped later in life when she gets to the point where she may not be able to live on her own and this would be used to pay for nursing home care. Just some additional thoughts. Too many people work too long and leave way to much money to loved ones and or the government.

It's called kenyancare not obamacare. He was born in Kenya and raised in indonesia according to his own words in his own book. And he's a pervert homosexual. MAGA 🇺🇸

For ealy retirement, Geo Arbitrage all the way. Work / Save in developed country. Retire early in developing one. 3k a month or less gets you a very good quality of life...

Jacob, i must say this ia a very thoughtful video and i hope more people are able to find it in the sea of less helpful talking heads. As a 56 year old in the middle of a year off taken to spend much more time with an ill mother and after her passing explore future options i have been doing a fair amount of personal math the last 9 months. And you are correct, the key is making the math personal. Based on what i heard here, i believe your clients are in good hands and i wish you success.

Very clear, thank you!

It depends on WHAT COUNTRY YOU WANT TO RETIRE IN 😂. $2 mill in the US may need $400k in Phillipines.

The thumbnail is 🔥🔥🚒

Thanks Jacob for a very informative video!

How do I perform the "how much do I need to retire calculation" if I retire at 60 but won't take social security until 67?

You can retire much earlier and with less money saved if you don’t have a spouse. I’d rather retire on $500K as a single person than on $1M as a married person.

Retirement plan is only as good as your health.

Like the presentation. Just suggest making your presentation bigger. Would be nice to see the numbers.

I’m enjoying your videos and straightforward approach, not to mention your knowledge. I’m glad I found your channel.

That’s not anywhere near enough to retire in the US. One very bad year in the market and you’ll be waiting a long time to be able to use the same withdrawal rate. If you invest conservatively to avoid that, you won’t gain much returns and same issue. I think most of us are screwed. Even more so if you don’t own a significant asset to sell off when you’re much older, like a house

So what you mean to say is 'Those don't save for retirement, face a crisis.' Being a chicken little doesn't help.

No one is talking about this? Do you listen to any financial podcasts or watch any financial TH-cam?? Come on clickbait.

A made up problem that will be used to screw Americans out of more money. Hundreds of billions appear at will to fund anything deemed necessary. Just put the SS trust fund in the list with the banks, Ukraine, Israel and print the money and put it in the fund. Please stop being a pawn of a made up crisis. I know it will be hard because it cuts into the revenue created by fear mongering the public and for being a shill.

Exactly same problem here in UK. I think also worth mentioning the housing crisis and how generation x focused their attention on getting a house. Pensions were an afterthought for a lot of people and now I'm aggressively plugging the hole in my pension in my 40s. But totally agree NO ONE is talking about the pension crisis which is compounded by the escalating costs of care homes. A perfect financial storm.

if one has a great federal pension( with COLA ,with subsidized health premiums the same as when working) and you are debt free plus SS you really don't need 8-12X your salary

Great video 🎉

Thanks Jacob for another very informative video!

Thanks for another great vid, Jacob!

Very Interesting. To me, even a 60% stock allocation seems very risky for someone retiring. Maybe not so bad if the "Buffet indicator" wasnt extremely high but Im posting this on 7/6/24, the Buffet indicator is around 200 and the S&P 500 is up 26% over the last 12 months. There's no way I'd be keeping near that much in the market at this point in the retirement game. Also, unless I missed it, there was no mention of the possibility of expensive health issues in old age.

Thanks for the video. I'd say the best place to put cash and bonds, theoretically, would be in a Roth and keep stocks in a taxable brokerage (obviously, you need some cash in a bank). The first question would be how do I get to the cash without withdrawing it from the Roth? Simple, sell the stock/ETF in the brokerage account and buy substantially the same stock/ETF in the Roth. You raise the cash to spend while remaining invested the stock/ETF - even when/if the stock/ETF is down. In reality, a lot of people have much larger traditional IRA/401k than Roth and may not have much in the bank or taxable brokerage so most people would have it the way you presented as the Roth just isn't large enough. But what if you do a Roth conversion and invest the Roth portion in Bonds and invested a similar amount in stocks in a taxable brokerage. Why do I say that? Stocks in a taxable brokerage are subject to long term capital gains and your heirs could get a step up in basis upon your death. Roth - no taxes on the bonds that would normally subject to ordinary income tax. (I'm not talking about tax free bonds - they should only be in a taxable brokerage account.) Why did I say substantially the same stock/ETF? If you sold at a loss, I don't know if the wash rule would apply if you bought the identical stock in a Roth.

If you need a military case study for your social media, I'd love your feedback.

I would like to see a video on RMD strategy. That 4% goes out the window when that kicks in and plus your Medicare goes up because some parts are based off income

Good stuff. You say "NOW" alot.

All data is backward looking and all decisions are forward looking.......In financial/retirement planning, greater precision only provides the illusion of greater accuracy.

Loved the concept of the "retirement spending smile"! It's a smart approach to planning your expenses during retirement. Another way to secure your financial future is by considering cryptocurrencies as part of your investment strategy. My Digital Money is a platform that helps you get started with crypto IRAs. Worth looking into!

Thanks for sharing this insightful video! It's crazy how following generalized advice like the 4% rule can lead to mistakes in retirement withdrawals. I wonder if anyone here has thought about rolling over their Roth IRA to a crypto IRA? With My Digital Money, you can do it without penalty and potentially outpace inflation. Food for thought!

Diversification...have some comfortable levels of cash..market can go up or down...nobody knows. Long term money....stay in it to win it......2024.....Dow jones 39,308. Older you get good to take some risk off the table...perhaps sell some at the new highs if you need to and you have more sand in the bottom of the hour glass.

These are presented very well and are easy to understand while being informative. One thing that almost nobody advocates is the opposite: take Social Security ASAP, reducing what you need to pull from investments. The likely scenario is that your self-directed or professionally administered portfolio will earn more than the annual adjustment from Social Security. You get more compounding in your accounts. Let it ride , take your Social Security and use that ready cash while your more lucrative investments flourish. You can always reinvest surplusses you don't immediately need.

Does anyone know the software he is using?