@@csilverio3798 not true, very relevant. It means you are likely the healthiest you will ever be and enjoy those early retirement years instead of working until you will no longer will have the opportunity to enjoy retirement.
😮😮I retired at 64. I was a bit concerned because my pension plus our SocSec would be about $500 less per month then my working wage. But I failed to realize I am in a lower tax bracket and I am spending less money because I am not commuting, not eating out at lunch everyday and I am dressing more casually. I have more savings now than I have ever had in my life. 😊😊
Great insight. Shifting the goal posts really resinated with me. During a super stressful time at work I reviewed my numbers, realized I’d already exceeded my targets and turned in my notice. I’ve been retired two years and am healthier and happier than I have ever been. It’s like being 14 on summer vacation with no responsibilities and no stress. Freedom and joy🎉
I exceeded my goals about 4 years early, mostly due to the fantastic markets we saw from 2013-2019. When my company offered me a buyout during Covid, I jumped on it. Best decision I could have made.
Good video! I have a lot of friends who are focused on the financial part of retirement and I keep telling them to switch that focus. Being financially secure is important, but being able to enjoy that money is just as important. What good is $2 million of you work until you're not physically able to fully enjoy it? I've been retired 3 years and my wife a little less than a year. We are enjoying every minute of our free time. Get up when we want, drink coffee on the deck, work on the farm, go fishing every day we want, etc. We leave Monday for a month in Florida, fishing. August we head to Montana in the RV for 3 weeks. October to Africa. November to Vegas. We figure, at ages 61 and 59, that we have about 10 years left to really explore the world. After that it's very possible that we will have to slack off a bit. Time will tell
@robert-ku7zr we pay $175 a month for medical and another $130 for vision and dental. We have our finances set up so that we can keep our taxable income below $70k. ACA can be a good program if you're set up properly or it can be extremely expensive if you're not. Total net worth has no bearing on ACA costs, but I expect they'll get around to that soon. You can have a net worth of $10 million and still get affordable coverage.
Im about to retire in 4 months at 62.5 Every single day my brain says keep working. But its a trick. I have to combat that panic feeling...that moving the goal posts. Last year i went on a trip of a lifetime but found it physically challenging. I plan traveling and setting physical challenges. No more sitting at a desk! I here its the new killer.
Retired in 2014 at 55. Claimed RN pension, which is a decent amount.Claimed Social Security at 62 .Glad I retired when I did.Four former coworkers have died since I’ve retired .I’m a retired RN who worked in a Trauma ICU ,at a busy urban teaching hospital.
@@cutehumor Good for you retiring at 55. I agree,the rule of 55 should be advertised more,along with its particular benefit.I worked in the DROP( deferred retirement option program) my last two years,giving me a chunk of 457 B money. I was not informed of the rule of 55,which would have been a great help. Paid a minimal penalty ,due to having a good accountant. So I have my monthly pension,Social Security benefits,and leftover 457 B money.
@@cutehumor sometimes it feels like some loose conspiracy to keep us working, 1) employer doesn't want you to quit because they have to hire & train a replacement, 2) government doesn't want you to quit because you stop paying income tax, and 3) financial advisor doesn't want you to quit because they like to fatten up their profit via assets under management. I asked my financial advisor about Rule of 55 and he said he'd never heard of it.
@@jessefletcher9116 Rule of 55 allows you to cash out your 401 K,403 B,or 457 B ,without the 10 % tax penalty for not being 59 1/2 ,if you’re 55 or older when you quit your job. Find another financial advisor.
I'm taking the retirement plunge at 49. My end of career 401k goal was met 5 years ago. The next 6 years are going to be hard but the sweet taste of freedom will keep me going.
My company decided they no longer needed me at age 64. While that was disappointing, it was the best thing to kick me into retirement, or I would have kept changing the goalposts. My mother is 93, with some dementia and heart problems, and no energy, so I know I won’t be jet setting at that age. I’ve already outlived my father who died at 62.
Congrats on your retirement! According to actuarial tables, a 64 year old man has a 50% chance of living past 82 years old. If he makes it to 82, he then has a 50% chance of living past 89 years old. That’s a long time to enjoy a well deserved retirement.
I'm 63 and get satisfaction from my job, but I've never forgotten that a company is an "it" and doesn't actually care about you. If they show me the door, I'm done.
Keep in mind you may not have a choice as to when you retire. Buddy of mine had to retire before he wanted to at 56 due to medical reasons. He became 100% disabled and it’s greatly reduced his quality of life. I retired a few months later at 56. And loving every minute.
Time doesn't go backwards. Once it is gone... it is gone. And the probability of health declining with age keeps going up. You may be fine one day, then the next it is "oh no...".
My father retired early in his late fifties. Glad he did since he died at 69. During his retirement he and my mom did a few cruises, he enjoyed golf and picked up a couple new hobbies. His assets weren't large, but my mother lived until she was 92 in assisted living for 18 years, and still had leftover when she passed away. I'd say the key to his financial success was not taking on debt (they even paid cash for their house), kept cars until they died, had a balance between a dividend paying stock portfolio, CDs and saved in a 401K. Like Warren Buffet is supposed to have done, they stayed in the same house all their lives.
I'm 61 and can retire today but this guy is correct most people never feel like they're ready. Truth is you do not need as much money in retirement as you think. I live a great life I enjoy myself I travel I do everything I want. And this is on approximately 30,000 per year. And that includes $12,000 in property tax and insurance on two homes. So even though I can spend 70000 in retirement, I'm not doing it. And each year you do not spend the maximum amount you are able to, that carries a surplus into the next year. My father is 88 years old and for the past ten years or so he hardly does anything because of arthritis. I'll never spend what I have unless I buy toys
Yes, you're talking about people that Can retire and have pensions or big portfolios. I'm 58 with 30k in a 401k so I'll be working as long as I can and pray that SS is still here.
This video is exactly my thoughts on retirement planning, it all comes to - who knows? Who knows when you gonna die, who knows if you can pull maybe 7% from portfolio and still have the staring value after many years, who knows if something unexpected happens and you were planning for many years, but the years are reduced because of illness... Best video I have seen so far, thank God you exist mister.
Outstanding insight, Eric. You are definitely ahead of your years. I am in my early 70s, healthy and very much go-go. But I will say as we get older, most of us are willing to give up some turns or experiences for security and safety.
Fantastic video but unfortunately have most of your slides covered. I was nudged into retirement at 58 by loss of work. Happy with the money but glad to lose the work, even though I enjoyed it and was pretty good at it. Had been saving for decades and thinking about retirement for over 10 years. Too bad I could not do that straight out of university like in the Cascade commercial. Tried to get back in, learned a lot from those who either advise or were already retired (glad I listened, very thankful for these types of YT channels), did some math, developed a plan and realized I could retire, at least partially, right there and then. Then the pandemic came along, followed by an incurable cancer diagnosis and my wife's current chemo. No idea I was going to contribute to some rare statistic, or that a plan to age 90 is no longer important. Life happens but I am so happy that I am retired that words like excited, elated, ecstatic, euphoric , enraptured or exhilarated don't quite do it for me. I don't speak German but will go with words like Feierabend, Kopfkino and Freudentaumel for now (all in a good way if they have multiple usages). Congratulations to all who are, are about to, or are busily working towards retirement. Not sure how many lives we ultimately get to live, but really like the current one, so enjoy and "spend it" wisely.
Retirement can have a lot of negative connotations, I prefer “transition “ which for me involves some work. A lot of my friends sit around doing nothing in their retirement, not a healthy lifestyle, you could argue.
Agree. I could have retired last year, but I decided not to and for once...just start enjoying my job. My entire atitude changed and I now really enjoy my job because there is no pressure to keep working. In addition, I only work on average 3 days per week anyway. One size doesn't fit all. My biggest fear of retiring is getting bored.
I’m 60 yrs old, planning to retire at end of year December. I’m debt free, still have my health and more importantly mentally I’m ready, God bless to all.
Covid-19 retired my spouse and me in 2020. After 30 months of seeing my savings get drained a little every month I went back to work. I could take SS and quit but I love my job and I wanted to push off claiming as long as possible, as I have a reasonable expectation of hitting 100. But I'm commenting to add an "Amen" to being debt free. And BTW my health has improved in the past three years. No stress, regular moderate exercise, and regthular fasting has got me back into my 40's health-wise.
Great content! Totally agree on the essential vs add on. We are 100% certain to have the essentials no matter anything other than death. The higher levels look pretty safe if not certain, and thus, we pulled the triggers over the last 2 years. So far we are doing better than expected, and have not lost any net portfolio value, despite all the recent problems.
This is a very good video which more people who are financially able to retire should watch. You only live once, and if you can afford to retire, it's better to retire today and start enjoying your life more today, vs the only certainty of the future is that your health will eventually decline.
I feel so blessed to have a job that i love. I don't really think about retiring. At least for now, i will work till my health denies me. I won't have a ton of spending to do at that point. I have decent insurance and retirement plans, but honestly, i just don't stress it much.
I'm in the same situation. My co-workers are telling me I would be dumb to retire. I work only about 3 days a week and it's actually pretty easy and the pay is above the average annual pay. I think about retiring all the time, but once I get bored, reality sits in.
This is an important message. I'm about to turn 54 and, until recently, I was planning to retire at 65 with about 2.5m, but as I get older my outlook and priorities are changing. I am becoming far more focused on getting my time back, so to speak, and using it to enrich my life. I keep a spreadsheet of my portfolio projections and, even though it clearly shows that I won't need 2.5m, I still believed I needed that much to be secure. Now, I am thinking more clearly about it and planning to retire at 62, maybe sooner depending on how things grow. My parents both died in their early 70s and even though I'm in much better health than they were, I still have their genes. I would hate to work hard for all these decades only to have just a few short years in retirement.
I'm planning to ratchet it back, ie work part time and cover the balance with portfolio income. Ease into it. Instead of retiring late and go from 100 to 0 work.
@@boyasaka This shouldn't need to be said, but we all have different goals and values, so it's never a good idea to make assumptions about other people's situations.
Eric - Brilliant work as usual. I'm thinking that perhaps you are in your second life and have been through all the stages of retirement in your prior life and learned all the lessons you are now sharing on these videos; such practical, honest and down to earth advice. Keep up the great work & will be in touch 😉.
I really like the visual @10:54. That illustration is close to the way I've been thinking. And then if there are some down years in the market, you can just skip some trips and luxuries and still be looking good.
Here is something to think about. Ask yourself one question: "why did I go to work in the first place?". For most of us we went to work because we would need to have money to live as an adult. So it should follow that once we no longer need that income we would stop working. It's not rocket science, it's just math.
@@fvvfvbbbb Don't over think it. You should have 40 plus years of data to guide you. The single best thing you can do for yourself when considering retirement is to set your target to be debt free by the time you walk away from work. I retired 7 years ago at age 62 and to date have not touched a dime of our investment money. Being debt free when I retired is what gets that done.
@@bernie9728 I agree being debt free before you retire makes it easier to pull the plug on work. We've been debt free for quite a few years now. So we may take the leap this year.
Starting deeply developing my retirement plan at 29. As life developed over time I have updated with the end goal in mind not dramatically but with legacy in mind. I use Money Guys FOO and plan to stay a Hyper Accumulator until I hit 45 and from there drop back to investing only 25% and prepaying all big purchases/trips and create my bad market ration fund of 18 to 36 months. I will be retired from working my required job no later than 57 if offered an early out without penalty I will be out at 50 and enjoy my hobbies and volunteer to my dream work.
I have no plans for retirement. I feel I have no self worth if I retire. I’m 70 now and going strong. No hobbies, work is my life. No reason to retire just to sit around and be bored, That will kill me.
Follow your passion to the best you are able with no insistence of the outcome. Work can be that as it is for me , but I’m creating other forms of passion like music, travel, learning from infinite podcasts.
I would love to know what work you do that is so compelling it has resulted in you foregoing even hobbies. Work that apparently constitutes your entire self worth. There are innumerable things you can do besides a job that aren’t sitting around and being bored. Travel. Volunteer or work for a nonprofit that allows you to give back to society. Things that expand your mind and enrich your soul.
I’m a landscape architect. I design beautiful gardens, parks and trail systems. Making the world a better place. Turning blight into beautiful places. Why do it for free in retirement if I can get paid for it. A lot of people like to travel. Not me. Keep me within a hour of home, and I’m a happy camper.
Love the message in this vid. I’m nearing retirement at age 56, and I tell all my young coworkers to save as much as possible now and retire as soon as financially feasible. For many of the reasons outlined here. Nice job.
Right now majority of my funds are locked up in IRA and 401K. I can't access that money, penality free until the year I turn 55 and 59.5 respectively. I recently cranked up my savings rate from 15% to 30% with hopes of building as big a pile of moneu as possible so I can retire early at 55.
I retired at 62 while I am semi healthy. I'm now diabetic and spend lots of time walking and riding my bike. The other reason why I retired is because I heard that in about 12 years SS benefits may get cut by 20%
Great video Eric! I appreciate sharing your thoughts and observations on these eight points and am certian they will resonate with many viewers. Larry Oman, Ca.
I maintain that for many, the best retirement years are between the ages of 65 to 75. Seniors quality for Medicare at age 65, and Medicare costs are often less than they are under Cobra insurance. Therefore, it makes little sense to start SSI at 62 unless you are financially and physically depleted.
Definitely a well informed video. But…the targets and expectations seem a little inflated. For example, I just checked to see what percent of seniors have amassed $1 million for their retirement. The answer? Roughly 15%. The video uses examples of $2 million and $4 million. Yes, if I had $2 million saved for retirement I’d feel pretty darn good about it. So again, this was a good video but probably doesn’t take into consideration the preparedness of 80% or more of retirees.
Im 53 today thinking about retiring now. Problem is 95% of my money is in pre tax account. So i can pull out and pay penalties till 59.5 and incone tax (CA). Or wait till 55 and seperate from company and use rule of 55 to avoid penalties but still pay income tax. The main issue is having 50+ hours a week of free time. Still have family and can go adventurung while wife is working. I could retire to be a house wife :C
Assisted living may not be enjoyable, but it sure is expensive. 60 year old you might be putting 90 year old you in a Medicaid facility so they could have more fun. 60 year old you will be on a Mediterranean cruise, and 90 year old you won't get your bedpan until morning. Something to consider. 75 year old you might find that your grandkids might have spent more time with them if they weren't broke from enjoying their 60's so much. That being said, I *could* have retired some time ago, but I enjoy engaging with my clients too much to want to completely walk away. I've been choosing how much or little I want to work since my 40's, but continue to save more than I spend.
I'm glad to see one person here talking about bedpans. The upswing in that spending curve around the 80-90 range doesn't look steep enough to me. Even if it represents real data, there's a vast amount of unpaid family caregiving labor that's not being accounted for, and the number of people available to do it continues to shrink. Long term care always seems to be a major blind spot in these discussions. Nobody even wants to think about it, much less talk about it. I remember some years back there was a ridiculous news piece being passed around that basically said "you can just live on a cruise ship in old age, it's cheaper than a nursing home!". Uh... have you ever set foot in a nursing home? Not only do people not understand the cost of care (or the realities of relying on Medicaid for it), they don't even understand what that care involves.
@@andrewcherry6042 The upward swing starts with having to pay for more household help, then in home medical help with a nursing home spiking later. People that die suddenly don't see that, but the rest do.
Just seeing the idea of "enjoyment" being quantified and reduced to stats made me more disinterested in the idea of thinking about numbers for retiring all together. I just want to live and not think about a quota I should be meeting. But I do agree with the sentiment that is shared with many of these points, of living NOW and not in worry or overwhelming information.
You make valuable points in your videos, and many need to hear them. I too am a devotee of Tim Urban and Wait But Why, as well as Peter Attia, Die With Zero, and 4000 Weeks. But there’s another point that is often missed in the retire ASAP philosophy, and it’s unfortunate. Yes many needlessly delay. However there are many other people who genuinely get meaning and value from their work, and not only because they lack other pleasures in life. Some people do meaningful work, perhaps would benefit from doing it less over time. I would love for these videos to acknowledge that retirement does not have to be the goal for everyone. Some people are financially independent and yet are happier and live better lives because they continue to do the purposeful work that guided their lives to date. On the other hand, I have known people who retired because the calendar said it was time, and they lived for many years regretting the loss of something they valued and developed expertise at over decades. Besides that, thank you for the terrific videos!
The test is to ask yourself this question: Would I continue working if I no longer got paid to do so? Very few people would say yes. Maybe people in caring professions where the job is unambiguously valuable in itself regardless of money. The "i enjoy my job etc" excuse is really people saying that they are dependent on the status and money it gives them and/or their life is empty outside of work and they are frightened of the void retirement would mean for them. The trick is to build a life outside of employment before you retire. Those that have failed to do so have limited options I guess.
I agree that most people would not continue to work for free, and I personally am planning to retire. But I don’t share the view that a desire to continue do work that a person finds meaningful should be seen as a failure or a fear or an unfortunate dependency. Some people find their work to be a source of satisfaction. Many people either don’t, or reach a point where they want to do other things. Either position is fine, if thought through and freely chosen. The narrative that life has to consist of a period of work followed by a period of retirement doesn’t work for everyone, and there’s no reason that life plans for everyone have to rigidly follow that script.
I believe a core rule of retirement planning should be to plan to live (outside of someone who has clear illness or health constraints that shift their odds unfavorably)
This video assumes people dont like their jobs. I work in IT, and since Covid, my job allows me to work from home. I dont think retirement could be better than this situation I am in.
Retiring 1-5-2004. I will be 73 this October. Just bought the Die With Zero book. I love what I do but I am simply no longer willing to put up with the political correctness and craziness going on in academia today. I will be finishing my third career when I retire and looking forward to gaining experiences and building up my health...and traveling....mainly in this wonderful country. God Bless you and thanks for your channel. (I requested an appointment to discuss another concept from an earlier video.)
I feel like you made this one for me personally 😬. Health insurance / health care is my biggest worry to pull the trigger. I planned 55, I’ll be 56 next month. I did go down to 4 days and have asked if they’d consider 3.
We were worried about healthcare and my wife held out for a year. As it turns out we were able to get good coverage for less than she was paying through her employer. We are both pretty healthy so went with a low premium policy. It's adequate coverage and we are happy with it.
I work on average 3 days per week. I dunno, but I think I will stay working. 3 days working isn't bad at all, but a 2 day work week would be perfect. Unfortunately, my work won't allow me to cut any more days. My job pays well above average, so I feel as though I would probably regret it if I do retire. I struggle with this decision daily. Once in a while I get bored and that's when I fear quitting work.
I certainly don't have the "Goal Post" example kind of money but, I do have several income streams and only look at SocSec issues with the lower amount if I collect 5 years early at 62. I'm definitely considering how time is more valuable than the extra I would receive 5 years later. Even my pension will be lower than the goal but, aren't healthy years worth more than the increase one receives by waiting? We all hope that health/ability uncertainty isn't a real worry. This' is a fallacy and magical thinking. Ask anyone who waited too long and then wasn't able to do any of the things they hoped. You won't likely find one who would vote on waiting.
"Tomorrow isn't guaranteed". Boy ain't that the truth. My wife is 57 and in a nursing home due to Huntington's Disease. You never know what will hit you.
We’re mid 40s with mid-7 figs including property. We want to retire but it’s not realistic to have a good lifestyle in California with that amount of money retiring at our age, especially since we are trying to not be typical boomers and spend it all- we want to leave most of it to our children. So we will likely retire overseas to have a lower cost of living.
Great video as usual! Do you have data or know of academic research that points to a potential to do inflation arbitrage if simply moving to a different country? Ideal scenario is to have investments based on cost of living adjustment from the US and live abroad with minimal local inflation volatility.
Fabulous video! What do you think about fixed lifetime annuities? I am 61 and could retire now with a fixed annuity. I live overeas in a country with nationalized healthcare so the amount I could get fixed for life would be more than I would need to live well here (but not in the USA). But I could wait an additional 6 months and get an additional $146 a month. Of course, to do that I would probably have to spend some of the money I have saved. I'm not sure if waiting is worth it. Any advice? I don't have heirs, so that isn't an issue -
When major SS and Medicare reforms happen, wonder what the new general ‘early’ retirement timeframe will be for future generations? Not a great legacy to leave behind. 😢
I just don’t think you see the whole picture, with the world moving away from the dollar, it means rough waters ahead. America will still be here, but it will be a different America. 🇺🇸🤷🏻♂️
A list like this is not complete without addressing the most important (and complex) retirement issue... retirement age vs life span. Type the following question into your favorite AI chatbot to begin your conversation. (I used Chat GPT) "What is the relationship between retirement age and life span?"
There is the SSA delay that raises your payment at age 70. Of course, SSA will reduce all payments starting in 2035. So, it makes sense to delay retirement to age 70 to max out SSA as your payment will not go up after that.
I don't know no one , that has 2 million, or even 1 million dollars to retire on. This must be for the rich. I am 63.. 64 in January. And I nor my husband d have no where near that moment ey. But we do have several rentals. And just in the last 2 years purchased 2 homes. Fixer uppers. And that what we are going to depend on . Is our rental income. Plus SS... 401K.. And what pension we have. So I think we will be just fine.. But I still believe this posting is for the rich.. 2 million Dollars ??? Who in the real world has that kind of money 💰 🤔
3:47 This graph is a bit laughable considering average life expectancy for US males is 73. If you change your lifestyle drastically, you have a better chance of living an improved health span.
73 from birth. You wouldn't use life expectancy from birth to plan for retirement. A 65-year-old male's life expectancy is 83. Even within that, 50% of people live beyond that. Besides all this, graph at 3:47 is for illustrative purposes
The whole idea is laughable. Skimp and earn and then some day you'll have time for your best life with time for family etc when you are too old to do much. The model is joy and thankfulness now, the woman in the household the man working 6 days, with one day off ALL THE DAYS OF HIS LIFE. This is the design and a perfect one. It's been flipped on it's head by society.
Captialism is being attacked daily and acclerating with the current liberal administration so I dont think these are normal times. If I retire today I’m afraid to travel to many places in the USA for me and my wifes safety. Regular people who defend themselves are attacked and prosecuted… I’m just tinking keep working and stay close to home.. so I dont think these are normal times… these are very challenging times...
I am in the 5%+10% who enjoy working. The rest of you sound like aliens from another planet. Tragic that nearly all of you spent 47 years hating what you do 40+ hrs a week. You made that choice. A choice of misery, resentment, and unhappiness. I am already ahead of you all and will be for life. You all made a huge tragic mistake to hate work but do it for 47 years.
Probably people don’t hate the entire time. I’ve worked for the same company 30 years and I have only recently started to dislike it. I’ve changed, the people I’ve worked for/with have changed, the job has changed. I could ‘switch’ to a new job, but financially I’m able to retire and don’t really want to start somewhere new. The risk is in retirement I’ll realise I did still like the job I had (or convince myself I did). If I was told I have one year left to live, I wouldn’t regret the last 30 years working, but probably the last two.
Not everyone that looks forward to retirement hates their job. I feel fortunate to have the job that I have had for 30 years but there are things I would like to do that I can not do working five days a week. I hope everyone finds their “right time” to retire. I am definitely not one of those people that would be bored in retirement and not know what to do with their time. Good luck to everyone finding their right time.
I love my job And if I have to work I can’t think of anything else I’d prefer to do But I’d love to not have to go to work daily And just jump on plane or in car for days away I’d love to be able to go to the gym each morning And love to be able to wash the car any day I wanted rather than on a Sunday I’d love to be able to have a lie in if I wanted Or sit up late and watch a movie knowing I don’t have to get up at 6am
LOL you sound very bitter and angry, not happy at all! If you were not paid would you still work for free? No, I thought not. Sounds like you are trying to make a virtue out of necessity.
I retired at 57. The key message I would communicate to others is don't delay retirement if you have the financial wherewithal to do so. Too often I have seen many people delay retirement and then experience health issues which constrain the very things they wanted to do post-retirement. Moreover, the most significant benefit of retirement for me is that I no longer have to deal with people I do not want to. That has proved to be the ultimate blessing.
I just think 57 is a perfect age to retire. Certainly not 60 or over as it is too much then. I still cannot believe that the UK government will only pay your pension at 67.
Your message resonates with me! Here I am reading this and grinding through a stressful work deliverable which is due this week. I’m currently 57 and contemplating retiring at 60 latest. Earliest date for me to retire would be early next year when I will be 58 and a half. May just pack it in then!
I don’t mean to be harsh, but if you’re relaying on the state pension you’re doing something wrong in your planning. Im retired at 43, and whilst I pay class 2 NICS to ensure I’ll get a full state pension, it’s about 1% of my planning. Also a state pension isn’t “your pension”. It’s a government transfer that, in theory, could be stopped at any point.
@@timrice9444 I actually did this through investments and deferred compensation. I have a modest company pension, but my largest source of income is either passive or deferred. My wife and I paid off our house 20 years ago, and set our kids college funds up, so my expenses are manageable. Further, I did not have to relocate from the Northeast area to a lower cost of living area. I actually could have left the workforce at 50 and somewhat regret that I did not. I wish you and your family all the best on your retirement journey.
haha i am retiring at the end of May under rule of 55. I made a roth ladder (5 yrs) which completed last yr. i did a reverse roll over from my last Traditional lIRA to my current 401k and use that until 60 when my Roth will take over and use that until 65 when SS to kick in. I have military retirement and tricare for health, so everything is taken care of.
I convinced my spouse to retire this year. He's 61 years old. He had no idea how much stress was placed on him from work. Three months later, he's lost 25# and reduced his prescription meds to 1 pill. He looks and feels 100% better. Now he highly recommends retirement. Sometimes you dont see the toll your employment takes on you. I am so thankful he traded in his work schedule for the retired life. Thanks for the video.
There is no way of knowing what is the perfect time to retire because there is no way of knowing the future. There where many people who retired in 1999 who lost everything and where working a minimum wage jobs and living with their kids because of the 2000 and 2008 stock market crashes with the housing crash. Its a throw the dice and hope that the stock market is not going to have a major crash in the next decade and you will lose everything. If my parents lived to retirement age they would have lost everything in the 2000 stock market crash. I have the money to retire early but I am afraid to retire because I saw what happened after the 2000 crash. If you take inflation in consideration it took the stock market 15 years to finally recover all losses from the 2000 and 08 stock market crashes. Luck is a major factor in retiring. Are you going to be lucky and just happen to retire right before an extended stock market bull run or are you going to retire just before a historic stock market crash? There is no way of knowing its throw the dice and hope you lucked out.
You have been knocking it out of the park the last few weeks. Putting these retirement projections (the math) into various different contexts of life, lifestyle and lifetime considerations really gives a sense of security and freedom in trusting that our plans will work out and that there is not much need to be a worry wart.
I remember watching this when it first came out right before I retired at 55 at the end of May. This video and a few other things really reinforced that I was making the right decision, as if I’d gone 4 more years I would have had a much bigger pension payout. Teaching in my district had gotten way too stressful, for a variety of reasons. What I didn’t anticipate was having the chance to teach part-time at a much smaller private school. So far I really enjoy still working, getting a pension, and having much less stress.
This echoes everything I believe and the reason I happily gave up the corporate grind at the ripe age of 53. This idea of maximum enjoyment points was the biggest driver. If we assign a value to each year of life, every year has higher value than the next year. So to continue working when you dont need to you give up so many other experiences. I have tried to convince my friends who have 7 figure net worths who still can't get off the hamster wheel but they dont seem to understand the basic idea here
"Today is the youngest you'll be for the rest of your life."
Irrelevant
@@csilverio3798 not true, very relevant. It means you are likely the healthiest you will ever be and enjoy those early retirement years instead of working until you will no longer will have the opportunity to enjoy retirement.
❤
😮😮I retired at 64. I was a bit concerned because my pension plus our SocSec would be about $500 less per month then my working wage. But I failed to realize I am in a lower tax bracket and I am spending less money because I am not commuting, not eating out at lunch everyday and I am dressing more casually. I have more savings now than I have ever had in my life. 😊😊
Great insight. Shifting the goal posts really resinated with me. During a super stressful time at work I reviewed my numbers, realized I’d already exceeded my targets and turned in my notice. I’ve been retired two years and am healthier and happier than I have ever been. It’s like being 14 on summer vacation with no responsibilities and no stress. Freedom and joy🎉
I exceeded my goals about 4 years early, mostly due to the fantastic markets we saw from 2013-2019. When my company offered me a buyout during Covid, I jumped on it.
Best decision I could have made.
Every day is Saturday.
Good for you !
@@rickwilliams108 That's the goal of retirement isn't it? Waking up every morning that Saturday morning feeling. Can't wait.
@@markellinghaus5925 What's even better is not even knowing what day it is and not even giving a damn! (Been retired 10 years and loving it!)
Good video!
I have a lot of friends who are focused on the financial part of retirement and I keep telling them to switch that focus. Being financially secure is important, but being able to enjoy that money is just as important. What good is $2 million of you work until you're not physically able to fully enjoy it?
I've been retired 3 years and my wife a little less than a year. We are enjoying every minute of our free time. Get up when we want, drink coffee on the deck, work on the farm, go fishing every day we want, etc. We leave Monday for a month in Florida, fishing.
August we head to Montana in the RV for 3 weeks.
October to Africa.
November to Vegas.
We figure, at ages 61 and 59, that we have about 10 years left to really explore the world. After that it's very possible that we will have to slack off a bit.
Time will tell
@robert-ku7zr we pay $175 a month for medical and another $130 for vision and dental. We have our finances set up so that we can keep our taxable income below $70k. ACA can be a good program if you're set up properly or it can be extremely expensive if you're not. Total net worth has no bearing on ACA costs, but I expect they'll get around to that soon. You can have a net worth of $10 million and still get affordable coverage.
Retire in the Philippines. Live like a king on $3,000/mo.
Im about to retire in 4 months at 62.5 Every single day my brain says keep working. But its a trick. I have to combat that panic feeling...that moving the goal posts. Last year i went on a trip of a lifetime but found it physically challenging. I plan traveling and setting physical challenges. No more sitting at a desk! I here its the new killer.
Retired in 2014 at 55. Claimed RN pension, which is a decent amount.Claimed Social Security at 62 .Glad I retired when I did.Four former coworkers have died since I’ve retired .I’m a retired RN who worked in a Trauma ICU ,at a busy urban teaching hospital.
you did good. I'm retiring at 55 with the IRS rule of 55. it's not advertised enough. they push that 59.5 years old everywhere
@@cutehumor Good for you retiring at 55. I agree,the rule of 55 should be advertised more,along with its particular benefit.I worked in the DROP( deferred retirement option program) my last two years,giving me a chunk of 457 B money. I was not informed of the rule of 55,which would have been a great help. Paid a minimal penalty ,due to having a good accountant. So I have my monthly pension,Social Security benefits,and leftover 457 B money.
@@cutehumor sometimes it feels like some loose conspiracy to keep us working, 1) employer doesn't want you to quit because they have to hire & train a replacement, 2) government doesn't want you to quit because you stop paying income tax, and 3) financial advisor doesn't want you to quit because they like to fatten up their profit via assets under management. I asked my financial advisor about Rule of 55 and he said he'd never heard of it.
@@jessefletcher9116 Rule of 55 allows you to cash out your 401 K,403 B,or 457 B ,without the 10 % tax penalty for not being 59 1/2 ,if you’re 55 or older when you quit your job. Find another financial advisor.
Hats off to you. You deserve every dime of your pension. Live well.
I'm taking the retirement plunge at 49. My end of career 401k goal was met 5 years ago. The next 6 years are going to be hard but the sweet taste of freedom will keep me going.
My company decided they no longer needed me at age 64. While that was disappointing, it was the best thing to kick me into retirement, or I would have kept changing the goalposts. My mother is 93, with some dementia and heart problems, and no energy, so I know I won’t be jet setting at that age. I’ve already outlived my father who died at 62.
Congrats on your retirement! According to actuarial tables, a 64 year old man has a 50% chance of living past 82 years old. If he makes it to 82, he then has a 50% chance of living past 89 years old. That’s a long time to enjoy a well deserved retirement.
@@joegadget670 I heard a stat that was alarming. 20% of American's don't live past 60 years old. 50 percent of Americans don't live to 78 years old.
I'm 63 and get satisfaction from my job, but I've never forgotten that a company is an "it" and doesn't actually care about you. If they show me the door, I'm done.
Keep in mind you may not have a choice as to when you retire. Buddy of mine had to retire before he wanted to at 56 due to medical reasons. He became 100% disabled and it’s greatly reduced his quality of life.
I retired a few months later at 56. And loving every minute.
"Teach us to number our days, that we may gain a heart of wisdom " Psalm 90:12
Time doesn't go backwards. Once it is gone... it is gone. And the probability of health declining with age keeps going up. You may be fine one day, then the next it is "oh no...".
My father retired early in his late fifties. Glad he did since he died at 69. During his retirement he and my mom did a few cruises, he enjoyed golf and picked up a couple new hobbies. His assets weren't large, but my mother lived until she was 92 in assisted living for 18 years, and still had leftover when she passed away. I'd say the key to his financial success was not taking on debt (they even paid cash for their house), kept cars until they died, had a balance between a dividend paying stock portfolio, CDs and saved in a 401K. Like Warren Buffet is supposed to have done, they stayed in the same house all their lives.
I retied 5 months ago at age of 52. Love my pension with COLA.
This channel is such a great antidote to the FIRE community! Your explanations are clear, well-researched, and calming. I so appreciate it.
I'm 61 and can retire today but this guy is correct most people never feel like they're ready. Truth is you do not need as much money in retirement as you think. I live a great life I enjoy myself I travel I do everything I want. And this is on approximately 30,000 per year. And that includes $12,000 in property tax and insurance on two homes. So even though I can spend 70000 in retirement, I'm not doing it. And each year you do not spend the maximum amount you are able to, that carries a surplus into the next year. My father is 88 years old and for the past ten years or so he hardly does anything because of arthritis. I'll never spend what I have unless I buy toys
I just read 'Die with Zero' makes the point about your dad. Great book!
Yes, you're talking about people that Can retire and have pensions or big portfolios. I'm 58 with 30k in a 401k so I'll be working as long as I can and pray that SS is still here.
This video is exactly my thoughts on retirement planning, it all comes to - who knows? Who knows when you gonna die, who knows if you can pull maybe 7% from portfolio and still have the staring value after many years, who knows if something unexpected happens and you were planning for many years, but the years are reduced because of illness... Best video I have seen so far, thank God you exist mister.
Outstanding insight, Eric. You are definitely ahead of your years.
I am in my early 70s, healthy and very much go-go.
But I will say as we get older, most of us are willing to give up some turns or experiences for security and safety.
Fantastic video but unfortunately have most of your slides covered. I was nudged into retirement at 58 by loss of work. Happy with the money but glad to lose the work, even though I enjoyed it and was pretty good at it. Had been saving for decades and thinking about retirement for over 10 years. Too bad I could not do that straight out of university like in the Cascade commercial.
Tried to get back in, learned a lot from those who either advise or were already retired (glad I listened, very thankful for these types of YT channels), did some math, developed a plan and realized I could retire, at least partially, right there and then. Then the pandemic came along, followed by an incurable cancer diagnosis and my wife's current chemo. No idea I was going to contribute to some rare statistic, or that a plan to age 90 is no longer important.
Life happens but I am so happy that I am retired that words like excited, elated, ecstatic, euphoric , enraptured or exhilarated don't quite do it for me. I don't speak German but will go with words like Feierabend, Kopfkino and Freudentaumel for now (all in a good way if they have multiple usages).
Congratulations to all who are, are about to, or are busily working towards retirement. Not sure how many lives we ultimately get to live, but really like the current one, so enjoy and "spend it" wisely.
Retirement can have a lot of negative connotations, I prefer “transition “ which for me involves some work. A lot of my friends sit around doing nothing in their retirement, not a healthy lifestyle, you could argue.
Agree. I could have retired last year, but I decided not to and for once...just start enjoying my job. My entire atitude changed and I now really enjoy my job because there is no pressure to keep working. In addition, I only work on average 3 days per week anyway. One size doesn't fit all. My biggest fear of retiring is getting bored.
Exactly right.
I’m 60 yrs old, planning to retire at end of year December. I’m debt free, still have my health and more importantly mentally I’m ready, God bless to all.
Good job!!! Enjoy your retirement.
Covid-19 retired my spouse and me in 2020. After 30 months of seeing my savings get drained a little every month I went back to work. I could take SS and quit but I love my job and I wanted to push off claiming as long as possible, as I have a reasonable expectation of hitting 100. But I'm commenting to add an "Amen" to being debt free. And BTW my health has improved in the past three years. No stress, regular moderate exercise, and regthular fasting has got me back into my 40's health-wise.
Great content! Totally agree on the essential vs add on. We are 100% certain to have the essentials no matter anything other than death. The higher levels look pretty safe if not certain, and thus, we pulled the triggers over the last 2 years. So far we are doing better than expected, and have not lost any net portfolio value, despite all the recent problems.
This is a very good video which more people who are financially able to retire should watch. You only live once, and if you can afford to retire, it's better to retire today and start enjoying your life more today, vs the only certainty of the future is that your health will eventually decline.
I feel so blessed to have a job that i love. I don't really think about retiring. At least for now, i will work till my health denies me. I won't have a ton of spending to do at that point. I have decent insurance and retirement plans, but honestly, i just don't stress it much.
Hi,
Just wondering what do you do for a living? What do you like about it?
I'm in the same situation. My co-workers are telling me I would be dumb to retire. I work only about 3 days a week and it's actually pretty easy and the pay is above the average annual pay. I think about retiring all the time, but once I get bored, reality sits in.
This is an important message. I'm about to turn 54 and, until recently, I was planning to retire at 65 with about 2.5m, but as I get older my outlook and priorities are changing. I am becoming far more focused on getting my time back, so to speak, and using it to enrich my life. I keep a spreadsheet of my portfolio projections and, even though it clearly shows that I won't need 2.5m, I still believed I needed that much to be secure. Now, I am thinking more clearly about it and planning to retire at 62, maybe sooner depending on how things grow. My parents both died in their early 70s and even though I'm in much better health than they were, I still have their genes. I would hate to work hard for all these decades only to have just a few short years in retirement.
I'm planning to ratchet it back, ie work part time and cover the balance with portfolio income. Ease into it. Instead of retiring late and go from 100 to 0 work.
Why on Earth don’t you retire today !!!!!
@@boyasaka Duh... Because I don't have enough saved yet.
@@dlg5485 well if you hoping for 2.5 m in ten years time , I’d have guessed your half way there now ??
@@boyasaka This shouldn't need to be said, but we all have different goals and values, so it's never a good idea to make assumptions about other people's situations.
Eric - Brilliant work as usual. I'm thinking that perhaps you are in your second life and have been through all the stages of retirement in your prior life and learned all the lessons you are now sharing on these videos; such practical, honest and down to earth advice. Keep up the great work & will be in touch 😉.
Indeed, good stuff to pay attention to.
Of all the retirement /financial planning videos I watch (a lot) yours are my favorite. Very clear insight. Right tempo. Credible. thank you.
I really like the visual @10:54. That illustration is close to the way I've been thinking. And then if there are some down years in the market, you can just skip some trips and luxuries and still be looking good.
Here is something to think about. Ask yourself one question: "why did I go to work in the first place?". For most of us we went to work because we would need to have money to live as an adult. So it should follow that once we no longer need that income we would stop working. It's not rocket science, it's just math.
The math can get pretty complicated. How do you work in all the unknown variables? You also need a magic 8 ball.
@@fvvfvbbbb Don't over think it. You should have 40 plus years of data to guide you. The single best thing you can do for yourself when considering retirement is to set your target to be debt free by the time you walk away from work. I retired 7 years ago at age 62 and to date have not touched a dime of our investment money. Being debt free when I retired is what gets that done.
@@bernie9728 I agree being debt free before you retire makes it easier to pull the plug on work. We've been debt free for quite a few years now. So we may take the leap this year.
Starting deeply developing my retirement plan at 29. As life developed over time I have updated with the end goal in mind not dramatically but with legacy in mind. I use Money Guys FOO and plan to stay a Hyper Accumulator until I hit 45 and from there drop back to investing only 25% and prepaying all big purchases/trips and create my bad market ration fund of 18 to 36 months. I will be retired from working my required job no later than 57 if offered an early out without penalty I will be out at 50 and enjoy my hobbies and volunteer to my dream work.
Retire as soon as you can! Make health and wellness the number 1 life priority.
I’ll be able to retire in 7 years. Im 45 right now just have to get my youngest graduated from HS.
So, true,they won't tell you that on other channels!
Very good recommendations. Taking it seriously. Thanks for the post
I have no plans for retirement. I feel I have no self worth if I retire. I’m 70 now and going strong. No hobbies, work is my life. No reason to retire just to sit around and be bored, That will kill me.
Follow your passion to the best you are able with no insistence of the outcome. Work can be that as it is for me , but I’m creating other forms of passion like music, travel, learning from infinite podcasts.
I would love to know what work you do that is so compelling it has resulted in you foregoing even hobbies. Work that apparently constitutes your entire self worth. There are innumerable things you can do besides a job that aren’t sitting around and being bored. Travel. Volunteer or work for a nonprofit that allows you to give back to society. Things that expand your mind and enrich your soul.
I’m a landscape architect. I design beautiful gardens, parks and trail systems. Making the world a better place. Turning blight into beautiful places. Why do it for free in retirement if I can get paid for it. A lot of people like to travel. Not me. Keep me within a hour of home, and I’m a happy camper.
Love the message in this vid. I’m nearing retirement at age 56, and I tell all my young coworkers to save as much as possible now and retire as soon as financially feasible. For many of the reasons outlined here. Nice job.
This is a brilliant presentation. (This coming from a professional presenter of 35 years standing). Kudos.
We only spend 40,000 a year and live very well. Own everything. The questain is to ask yourself what you need out of life
Would be good to do a video on early retirement (FI.RE). Retiring at 45 or 50 and relying on savings until your pension kicks in.
Right now majority of my funds are locked up in IRA and 401K. I can't access that money, penality free until the year I turn 55 and 59.5 respectively. I recently cranked up my savings rate from 15% to 30% with hopes of building as big a pile of moneu as possible so I can retire early at 55.
I retired early because I’m lazy and it beats working.
Respect your honesty, Johnny ...
I retired at 62 while I am semi healthy. I'm now diabetic and spend lots of time walking and riding my bike. The other reason why I retired is because I heard that in about 12 years SS benefits may get cut by 20%
Great video Eric! I appreciate sharing your thoughts and observations on these eight points and am certian they will resonate with many viewers. Larry Oman, Ca.
I maintain that for many, the best retirement years are between the ages of 65 to 75. Seniors quality for Medicare at age 65, and Medicare costs are often less than they are under Cobra insurance. Therefore, it makes little sense to start SSI at 62 unless you are financially and physically depleted.
Fantastic information. Very encouraging financially.
Definitely a well informed video. But…the targets and expectations seem a little inflated. For example, I just checked to see what percent of seniors have amassed $1 million for their retirement. The answer? Roughly 15%. The video uses examples of $2 million and $4 million. Yes, if I had $2 million saved for retirement I’d feel pretty darn good about it. So again, this was a good video but probably doesn’t take into consideration the preparedness of 80% or more of retirees.
Thank you. Keep in mind that not every TH-cam Channel is built specifically for a general audience
“Wealth Management” in the name of the channel might be a clue that the info presented possibly doesn’t apply to everyone. 😂
Im 53 today thinking about retiring now. Problem is 95% of my money is in pre tax account. So i can pull out and pay penalties till 59.5 and incone tax (CA). Or wait till 55 and seperate from company and use rule of 55 to avoid penalties but still pay income tax.
The main issue is having 50+ hours a week of free time. Still have family and can go adventurung while wife is working.
I could retire to be a house wife :C
Thank you for an unexpected very eye opening presentation.
Good video
I will look over your videos later today after work
And rewatch this video too
Cheers
Excellent presentation. Kudos.
Assisted living may not be enjoyable, but it sure is expensive.
60 year old you might be putting 90 year old you in a Medicaid facility so they could have more fun. 60 year old you will be on a Mediterranean cruise, and 90 year old you won't get your bedpan until morning.
Something to consider.
75 year old you might find that your grandkids might have spent more time with them if they weren't broke from enjoying their 60's so much.
That being said, I *could* have retired some time ago, but I enjoy engaging with my clients too much to want to completely walk away. I've been choosing how much or little I want to work since my 40's, but continue to save more than I spend.
I'm glad to see one person here talking about bedpans. The upswing in that spending curve around the 80-90 range doesn't look steep enough to me. Even if it represents real data, there's a vast amount of unpaid family caregiving labor that's not being accounted for, and the number of people available to do it continues to shrink. Long term care always seems to be a major blind spot in these discussions. Nobody even wants to think about it, much less talk about it. I remember some years back there was a ridiculous news piece being passed around that basically said "you can just live on a cruise ship in old age, it's cheaper than a nursing home!". Uh... have you ever set foot in a nursing home? Not only do people not understand the cost of care (or the realities of relying on Medicaid for it), they don't even understand what that care involves.
@@andrewcherry6042 The upward swing starts with having to pay for more household help, then in home medical help with a nursing home spiking later.
People that die suddenly don't see that, but the rest do.
Just seeing the idea of "enjoyment" being quantified and reduced to stats made me more disinterested in the idea of thinking about numbers for retiring all together. I just want to live and not think about a quota I should be meeting.
But I do agree with the sentiment that is shared with many of these points, of living NOW and not in worry or overwhelming information.
Very well said. Good points.
You make valuable points in your videos, and many need to hear them. I too am a devotee of Tim Urban and Wait But Why, as well as Peter Attia, Die With Zero, and 4000 Weeks. But there’s another point that is often missed in the retire ASAP philosophy, and it’s unfortunate. Yes many needlessly delay. However there are many other people who genuinely get meaning and value from their work, and not only because they lack other pleasures in life. Some people do meaningful work, perhaps would benefit from doing it less over time. I would love for these videos to acknowledge that retirement does not have to be the goal for everyone. Some people are financially independent and yet are happier and live better lives because they continue to do the purposeful work that guided their lives to date. On the other hand, I have known people who retired because the calendar said it was time, and they lived for many years regretting the loss of something they valued and developed expertise at over decades. Besides that, thank you for the terrific videos!
The test is to ask yourself this question: Would I continue working if I no longer got paid to do so? Very few people would say yes. Maybe people in caring professions where the job is unambiguously valuable in itself regardless of money. The "i enjoy my job etc" excuse is really people saying that they are dependent on the status and money it gives them and/or their life is empty outside of work and they are frightened of the void retirement would mean for them. The trick is to build a life outside of employment before you retire. Those that have failed to do so have limited options I guess.
I agree that most people would not continue to work for free, and I personally am planning to retire. But I don’t share the view that a desire to continue do work that a person finds meaningful should be seen as a failure or a fear or an unfortunate dependency. Some people find their work to be a source of satisfaction. Many people either don’t, or reach a point where they want to do other things. Either position is fine, if thought through and freely chosen. The narrative that life has to consist of a period of work followed by a period of retirement doesn’t work for everyone, and there’s no reason that life plans for everyone have to rigidly follow that script.
It’s not evolution that makes us shift the goal posts…it’s greed and trying to account for the unknown.
Why do you think all people are going to live to 88. Many people who do hard physical work never live to 65.
Because 60% do live to 82.
We also eat right and don't injest things that shorten lifespan.
Not many men live over 75
I believe a core rule of retirement planning should be to plan to live (outside of someone who has clear illness or health constraints that shift their odds unfavorably)
This video assumes people dont like their jobs. I work in IT, and since Covid, my job allows me to work from home. I dont think retirement could be better than this situation I am in.
Retiring 1-5-2004. I will be 73 this October. Just bought the Die With Zero book. I love what I do but I am simply no longer willing to put up with the political correctness and craziness going on in academia today. I will be finishing my third career when I retire and looking forward to gaining experiences and building up my health...and traveling....mainly in this wonderful country. God Bless you and thanks for your channel. (I requested an appointment to discuss another concept from an earlier video.)
Great presentation. Thank you.
I feel like you made this one for me personally 😬. Health insurance / health care is my biggest worry to pull the trigger. I planned 55, I’ll be 56 next month. I did go down to 4 days and have asked if they’d consider 3.
We were worried about healthcare and my wife held out for a year. As it turns out we were able to get good coverage for less than she was paying through her employer. We are both pretty healthy so went with a low premium policy. It's adequate coverage and we are happy with it.
@Dollar Farms did you work with a health insurance broker?
@angiewiedenkeller4544 we did.
We are in GA and I know plans vary by state.
It’s pretty sad as nation.. where most of the should / can I retire reasons are affordability associated with medical costs. It’s disgraceful..
I work on average 3 days per week. I dunno, but I think I will stay working. 3 days working isn't bad at all, but a 2 day work week would be perfect. Unfortunately, my work won't allow me to cut any more days. My job pays well above average, so I feel as though I would probably regret it if I do retire. I struggle with this decision daily. Once in a while I get bored and that's when I fear quitting work.
I like the points you made. great video
If I could retire now I would.
im 59 ,got about fifty bucks saved,no pension,im out at 62,hey hey.
What about the cost of health insurance.....? Even on Medicare, in several years, it ain't cheap and only going up...
I certainly don't have the "Goal Post" example kind of money but, I do have several income streams and only look at SocSec issues with the lower amount if I collect 5 years early at 62. I'm definitely considering how time is more valuable than the extra I would receive 5 years later. Even my pension will be lower than the goal but, aren't healthy years worth more than the increase one receives by waiting? We all hope that health/ability uncertainty isn't a real worry. This' is a fallacy and magical thinking. Ask anyone who waited too long and then wasn't able to do any of the things they hoped. You won't likely find one who would vote on waiting.
I wish I was over estimating how much we need. It would make me feel better about being behind.😅
Great video Thank you
"Tomorrow isn't guaranteed". Boy ain't that the truth. My wife is 57 and in a nursing home due to Huntington's Disease. You never know what will hit you.
I'm so sorry to hear about your wife. ❤️
We’re mid 40s with mid-7 figs including property. We want to retire but it’s not realistic to have a good lifestyle in California with that amount of money retiring at our age, especially since we are trying to not be typical boomers and spend it all- we want to leave most of it to our children. So we will likely retire overseas to have a lower cost of living.
What does that get you living like a pauper so you kids can live high on the hog?
Leave your kids the house
And spend your savings before you die
Does a company retirement plan need to explicitly say in the plan documents that rule of 55 withdrawals are permissible?
Retire as soon as possible. All the expenses will go down.
Nailed it!
Is 2024 too late to retire? Has that tax law gone into effect?
Thank you.
Great video as usual!
Do you have data or know of academic research that points to a potential to do inflation arbitrage if simply moving to a different country?
Ideal scenario is to have investments based on cost of living adjustment from the US and live abroad with minimal local inflation volatility.
Is this background real or greenscreen!
Fabulous video! What do you think about fixed lifetime annuities? I am 61 and could retire now with a fixed annuity. I live overeas in a country with nationalized healthcare so the amount I could get fixed for life would be more than I would need to live well here (but not in the USA). But I could wait an additional 6 months and get an additional $146 a month. Of course, to do that I would probably have to spend some of the money I have saved. I'm not sure if waiting is worth it. Any advice? I don't have heirs, so that isn't an issue -
When major SS and Medicare reforms happen, wonder what the new general ‘early’ retirement timeframe will be for future generations? Not a great legacy to leave behind. 😢
I just don’t think you see the whole picture, with the world moving away from the dollar, it means rough waters ahead. America will still be here, but it will be a different America. 🇺🇸🤷🏻♂️
A list like this is not complete without addressing the most important (and complex) retirement issue... retirement age vs life span. Type the following question into your favorite AI chatbot to begin your conversation. (I used Chat GPT)
"What is the relationship between retirement age and life span?"
I can retire anytime I want….as long as I die in two weeks🤣🤣🤣
There is the SSA delay that raises your payment at age 70. Of course, SSA will reduce all payments starting in 2035. So, it makes sense to delay retirement to age 70 to max out SSA as your payment will not go up after that.
I doubt SS will cut anything. Politicians will figure a way to increase the fund because they don't want to alienate the largest voting block.
Incorrect.
No plan to abandon annual COLA in any plan.
Or retire at 62 and collect as much as possible before the reduction
I don't know no one , that has 2 million, or even 1 million dollars to retire on. This must be for the rich. I am 63.. 64 in January. And I nor my husband d have no where near that moment ey. But we do have several rentals. And just in the last 2 years purchased 2 homes. Fixer uppers. And that what we are going to depend on . Is our rental income. Plus SS... 401K.. And what pension we have. So I think we will be just fine.. But I still believe this posting is for the rich.. 2 million Dollars ??? Who in the real world has that kind of money 💰 🤔
Because as a friend of mine used to say “ life’s not a rehearsal “ just do it. You may be dead tomorrow.
Oh man, should retire now at 33!
3:47 This graph is a bit laughable considering average life expectancy for US males is 73. If you change your lifestyle drastically, you have a better chance of living an improved health span.
73 from birth. You wouldn't use life expectancy from birth to plan for retirement. A 65-year-old male's life expectancy is 83. Even within that, 50% of people live beyond that. Besides all this, graph at 3:47 is for illustrative purposes
Million? Get real!
The whole idea is laughable. Skimp and earn and then some day you'll have time for your best life with time for family etc when you are too old to do much. The model is joy and thankfulness now, the woman in the household the man working 6 days, with one day off ALL THE DAYS OF HIS LIFE. This is the design and a perfect one. It's been flipped on it's head by society.
Captialism is being attacked daily and acclerating with the current liberal administration so I dont think these are normal times. If I retire today I’m afraid to travel to many places in the USA for me and my wifes safety. Regular people who defend themselves are attacked and prosecuted… I’m just tinking keep working and stay close to home.. so I dont think these are normal times… these are very challenging times...
I am in the 5%+10% who enjoy working.
The rest of you sound like aliens from another planet.
Tragic that nearly all of you spent 47 years hating what you do 40+ hrs a week.
You made that choice. A choice of misery, resentment, and unhappiness.
I am already ahead of you all and will be for life.
You all made a huge tragic mistake to hate work but do it for 47 years.
Probably people don’t hate the entire time. I’ve worked for the same company 30 years and I have only recently started to dislike it. I’ve changed, the people I’ve worked for/with have changed, the job has changed. I could ‘switch’ to a new job, but financially I’m able to retire and don’t really want to start somewhere new. The risk is in retirement I’ll realise I did still like the job I had (or convince myself I did). If I was told I have one year left to live, I wouldn’t regret the last 30 years working, but probably the last two.
Not everyone that looks forward to retirement hates their job. I feel fortunate to have the job that I have had for 30 years but there are things I would like to do that I can not do working five days a week. I hope everyone finds their “right time” to retire. I am definitely not one of those people that would be bored in retirement and not know what to do with their time. Good luck to everyone finding their right time.
@@brian8050 Couldn't agree more and well said by responding to a very negative and narrow minded view point
I love my job
And if I have to work I can’t think of anything else I’d prefer to do
But I’d love to not have to go to work daily
And just jump on plane or in car for days away
I’d love to be able to go to the gym each morning
And love to be able to wash the car any day I wanted rather than on a Sunday
I’d love to be able to have a lie in if I wanted
Or sit up late and watch a movie knowing I don’t have to get up at 6am
LOL you sound very bitter and angry, not happy at all! If you were not paid would you still work for free? No, I thought not. Sounds like you are trying to make a virtue out of necessity.
Health insurance is a major hurdle.I must get to Medicare age .I can’t see giving away all that money that I saved to go on Obama care.
If you keep your income in retirement under $50k, you only need to spend like $200 per month on Obama care.
Hell yeah
I retired at 57. The key message I would communicate to others is don't delay retirement if you have the financial wherewithal to do so. Too often I have seen many people delay retirement and then experience health issues which constrain the very things they wanted to do post-retirement. Moreover, the most significant benefit of retirement for me is that I no longer have to deal with people I do not want to. That has proved to be the ultimate blessing.
I just think 57 is a perfect age to retire. Certainly not 60 or over as it is too much then. I still cannot believe that the UK government will only pay your pension at 67.
Your message resonates with me! Here I am reading this and grinding through a stressful work deliverable which is due this week. I’m currently 57 and contemplating retiring at 60 latest. Earliest date for me to retire would be early next year when I will be 58 and a half. May just pack it in then!
I don’t mean to be harsh, but if you’re relaying on the state pension you’re doing something wrong in your planning. Im retired at 43, and whilst I pay class 2 NICS to ensure I’ll get a full state pension, it’s about 1% of my planning. Also a state pension isn’t “your pension”. It’s a government transfer that, in theory, could be stopped at any point.
@@timrice9444 fully agree with you. State pension is just an extra little help in the future. I am working towards the £1m pension fund now
@@timrice9444 I actually did this through investments and deferred compensation. I have a modest company pension, but my largest source of income is either passive or deferred. My wife and I paid off our house 20 years ago, and set our kids college funds up, so my expenses are manageable. Further, I did not have to relocate from the Northeast area to a lower cost of living area. I actually could have left the workforce at 50 and somewhat regret that I did not. I wish you and your family all the best on your retirement journey.
haha i am retiring at the end of May under rule of 55. I made a roth ladder (5 yrs) which completed last yr. i did a reverse roll over from my last Traditional lIRA to my current 401k and use that until 60 when my Roth will take over and use that until 65 when SS to kick in. I have military retirement and tricare for health, so everything is taken care of.
I convinced my spouse to retire this year. He's 61 years old. He had no idea how much stress was placed on him from work. Three months later, he's lost 25# and reduced his prescription meds to 1 pill. He looks and feels 100% better. Now he highly recommends retirement. Sometimes you dont see the toll your employment takes on you. I am so thankful he traded in his work schedule for the retired life. Thanks for the video.
Thanks for sharing. Glad retirement has been great for his health!
There is no way of knowing what is the perfect time to retire because there is no way of knowing the future. There where many people who retired in 1999 who lost everything and where working a minimum wage jobs and living with their kids because of the 2000 and 2008 stock market crashes with the housing crash. Its a throw the dice and hope that the stock market is not going to have a major crash in the next decade and you will lose everything.
If my parents lived to retirement age they would have lost everything in the 2000 stock market crash. I have the money to retire early but I am afraid to retire because I saw what happened after the 2000 crash. If you take inflation in consideration it took the stock market 15 years to finally recover all losses from the 2000 and 08 stock market crashes.
Luck is a major factor in retiring. Are you going to be lucky and just happen to retire right before an extended stock market bull run or are you going to retire just before a historic stock market crash? There is no way of knowing its throw the dice and hope you lucked out.
You have been knocking it out of the park the last few weeks. Putting these retirement projections (the math) into various different contexts of life, lifestyle and lifetime considerations really gives a sense of security and freedom in trusting that our plans will work out and that there is not much need to be a worry wart.
I remember watching this when it first came out right before I retired at 55 at the end of May. This video and a few other things really reinforced that I was making the right decision, as if I’d gone 4 more years I would have had a much bigger pension payout. Teaching in my district had gotten way too stressful, for a variety of reasons. What I didn’t anticipate was having the chance to teach part-time at a much smaller private school. So far I really enjoy still working, getting a pension, and having much less stress.
This echoes everything I believe and the reason I happily gave up the corporate grind at the ripe age of 53. This idea of maximum enjoyment points was the biggest driver. If we assign a value to each year of life, every year has higher value than the next year. So to continue working when you dont need to you give up so many other experiences. I have tried to convince my friends who have 7 figure net worths who still can't get off the hamster wheel but they dont seem to understand the basic idea here