I would rather enjoy 55-70 rather than worry so much about 80-95 when you may or may not be alive. Statistically speaking if you are alive 80-95 you will likely not be able to do much. Retire as soon as possible life is fleeting.
All my grandparents died in the mid-80’s with the exception of 1 who died at 91. My parents are in their late 70’s and are doing incredibly well. So I have to think about longevity. But I agree with your premise.
Yeah I was thinking the same thing.... statistically speaking, the average life expectancy for MEN in the US is 73 years old. Women are about five years longer.
OMG, this is me! Thank you for having a video for us normal people. This senecio is where I am at but I want to keep working to max out my retirement fund as long as I can. I am projecting at 65 to work part time and collect my SS at 67 then I'll retire. I reduce all my expenses and no debts at all. I plan to live abroad where my living will be so much less than living in AMERICA and health care is way better abroad. I have a side gig as a Travel Advisor I work on when I can. It's pocket money for me now. I will be 62 in April and I am a single Flight Attendant who loves my job. When I retire I get lifetime benefit of flying.
I am also projecting to retire at 60. Home and rental all paid off. Should have $1M+ cash and decent 401k. Plan to withdraw SS at 62 with my wife. Also Plan to sell my primary home and rental at retirement worth around $2M, then move somewhere cheaper like a $6-700k home.
Why do you think healthcare is way better abroad? I'm also looking at retiring abroad, but my concern is the healthcare aspect. I'm not trying to argue with you or say that you are not correct, but all the research I have found so far and people I have spoken with say the opposite. That healthcare in America is better. It may be expensive, but not better care. Do you have any information on where it is better, and why it is better?
I am 63 and have 0 in savings, and no 401K. I am retiring next year and plan to live good on $1500 a month with my wife. We can get an apartment right on the beach in Da Nang Vietnam for around $400 a month. Average cost of a meal for two is around $2 to $3 dollars. You have to think outside the box.
I've been watching retirement videos lately, and I have to say, you are one of the best and at this point my favorite. I like your logic and ability to communicate.
250k is plenty because her expenses are low. If they are kept low she'll be fine. I will not be living to work. I plan on retiring early and getting ss as soon as i can.
$3000 a month in expenses, but you need to add an additional $500 - $750 a month for health insurance for 5 years, plus rate increases if she retires at 60
How do you know health insurance is not included? I can live off $2k in Florida and still have $ left for insurance, less if I have a roommate. $3k/mo is doable for sure.
There are a lot of shaky assumptions here. Be a flight attendant lifting suitcases overhead at 80? What about big expenses like home maintenance, a new car, medical expenses as you age? $3000/mo expenses seems very low.
This video is really helpful! I've been wondering about retirement planning and this gave me some great insights. Could you do more videos on different retirement savings scenarios?
At 60, do you want all of your money in the market? A 2 year recession could toast your life savings. I think in this environment, I would convert to a stable high interest investment. 5% with no risk MAY be better than a MAYBE 6% with high risk. I agree about taking SS at 62. I have to smile about the 80 year old working part time. Only because, as an American male I likely died 8 years before then.
That was my concern with the scenario. The math works but what's the reality of her being capable to work at 80. Her risk factors need to include the effects of age and health.
Very conservative projections, but yes. Remember COLA is not guaranteed and with the state of SS currently, we are just being careful. Thanks for commenting!
Hi Drew! I'm thinking of retiring next Spring when I hit 59. I've got approx $500K in investment accounts (403B, Traditional IRA, Roth IRA). My part-time job in SC annually is about $50K. I've got rental property that adds about $40K to that income on my 1040. I have no debt. My biggest question mark is Health Insurance. I'd like to live off the rental income. I'm working a budget to live off $30K, but no longer adding to any retirement accounts except my Roth IRA (which I love because it grows tax free). Does this sounds doable??
Hi Drew. My name is Hélcio. I'm american citizen, but i was born in Brazil. We live in USA for 33 years. My wife and I are 58 years old. We live in boynton Beach Fl. I would like to know your thoughts about our situation. We decided to stop working at 60 in 2 years, and go to Brasil. If we stay here we have to work until 70. We have a great place near ocean paid off to live in in Brazil. We have a house here paid off too. Without any doubt. We have about 120k saved IRA. We will leave this money invested until we come back. Maybe for 15 years or so. We can sale the house and invest the money, or we can rent it out for 2400 monthly, take 1000 to help us increasing our income in Brazil. (We have investment in Brazil, plus 1000k dollars monthly will feel the gap until we retire. The rest of it we can put away for emergency and taxes, etc. We will file social security at 67 or 70. If at 70 probably will be around 4200 monthly for both of us. exchange rate, 1 U.S. dollar (USD) is approximately equal to 4.97 Brazilian reais (BRL). We will travel to America once a year to see our sons.
Your assuming a company will want to keep you when you're that old. They don't usually keep people on into their late 70's and 80's. Unless you're in amazing body shape at that age with all perfect cognition, and maybe in union that protects your job. But it's just not the norm.
Technically, that would be illegal: The Age Discrimination in Employment Act (ADEA) prohibits employers from firing people based on their age, as long as the age limitation is not a necessary occupational qualification. The ADEA protects people who are 40 or older from discrimination in all aspects of employment, including hiring, pay, promotions, layoffs, training, and benefits.
@@yourfinancialekgIn a perfect world…In the real world, I know people who lost their job due to age discrimination. They just call it something else or downsize you. You can spend your life savings suing them, so good luck with that. Flight attendants have to meet physical requirements. An 80 year old cannot do these things. This is a completely unrealistic plan. And if she is working into her 80s, she never retired.
I currently have $400K saved for retirement at 55, and I dont think I have enough to retire. My projections say at 62 I should have $750K saved between my IRA & 401K. I plan to drawdown on my 401K for 8yrs, then draw from my IRA when it crosses the $1MIL mark when I'm 70yo.
Interesting, I'm in a similar situation. But, with$420,000 at 59 and earning PT-type income of only about $10-15,000 per year(i don't have hard numbers). Also, my SS at age 62 is projected to be only $1070 per month(in 2023 $$). Monthly expenses are currently about $2300. I live in pricey California and my rent could jump after about 3-5 more years, with expenses jumping to about $3300 per month in today's dollars. I'm not in a hurry to retire my PT work, anytime soon. Was wondering, In your example what would have happened if her $1000 per month was also indexed to inflation?
Thank you This was helpful and pretty close to my situation . Im 60 and own two homes with no mortgage and only $300 k in the market . I’m self employed and love my job , I know I can semi retire as I’m not a big spender and know how to be frugal
For folks getting hung up on an 80 y/o flight attendant, all she'd have to do is work abut 2 days per week at $15/hour somewhere and she could make the 1k. Suggest not being quite so literal. However, I agree, I don't want to work late into my retirement years unless I enjoy it. It's probably better for her to work F/T to 62 and earn up to the SS threshold in her early retirement years to preserve her capital as long as possible. That extra 900/month added to SS would meet her early monthly expenses with a bit left over to save.
Here is one for your white board, 64 retired widowed receiving 20K a year survivor benefits, but at 70 will switch to my SS at 52K, before that happens and while tax rates are lower should I be draining down my IRA of 500K, is a Roth conversion the best option, I also have 150K outside my IRA, thanks
@@sergiosantana4658 expenses 3200 a month, I make up the short fall from a taxed brokerage account with 150K balance, healthcare plan prevents me from IRA withdrawals this but next February I start Medicare and will start drawing down my IRA, I am just looking for the most tax effective way of doing that
Thanks for your take on this topic. It's a good conversation starter but not complete. Much left out in these calculations. Health insurance, buying another car, car maintenance, fixing or replacing an a/c unit, refrigerator, carpet, oven, roof issues, etc...
Drew, you are the first person I've found who makes it very easy to understand. My husband and I are looking for some help, but your link is not working. Are you no longer taking new virtual clients?
Working PT into your 70s and 80s is a bit much. How are you supposed to enjoy your golden years? Would it benefit her to work until age 65 when Medicare kicks in?
Drew where are you suggesting she invest for that 6percent growth?. #4 risk equities? Are you doing a 60/40 or 50/50 equity bond splint ,or some all bond fund, dividend stocks, what do you suggest?
This sounds like what I like to call a Netflix retirement. You can do this one if your home is paid for and you don't have any real expenses and don't do much other than stay home and watch TV. You essentially burn through a fair amount of the $250,000 until you take Social Security at a minimum age of 65. Then you live off of that and whatever may be remaining of the $250,000.
Great analysis but don't you have to take the COLA increases into account with social security in the first example if you are adjusting expenses for inflation also? As of now her future payment is calculated for 67 at 2500 but that isn't taking into account 7 yrs of COLA.
True, but I am just conservative in my estimation. COLA is not guaranteed, but inflation is probably going to be there no matter what "COLA" calculation the gov uses.
Wait, did I hear you say she intends to work up until age 80 as a flight attendant?? I have done a decent amount of flying, over the years, and have never seen any flight attendant that even appeared to be in their 70s, much less in their 80s. I don’t know how safe I would feel with an 80-year-old flight attendant, especially if she had to perform CPR, or some of the other emergency procedures that they are trained to do.
She should be happy if she can stand on her own at 80...forget being a flight attendant, which is the most difficult/insane job for an old person.....even for a young person.
Real life. Retired at 55 with $375,000 in tax deferred instruments. Was going to file for SS at 62. When I got to 62 and had more in my tax deferred instruments than when I retired 7 years earlier. I decided to wait till 66 to apply.. When I got to 66 after withdrawing from TDI's I still had more in those accounts than when I retired at 55 so I decided to file for SS at 70. Now if I would have filed for SS at 62 I would have received $1700 a month at 70 I receive more than $4000 a month from SS . My point is the breakeven point for SS for me was 6 years. Not ten or 11. The biggest reason is the cola difference between applying it to a smaller number and a large number. My cola increase this year is $130 per month. You may not be able to match the market returns of the last 15 years. I am so happy to have taken money out of the market when you could make some money. For the average investor you cannot beat 8% year after year along with differential tax treatment. Just sayin'
what is the procedure for Medicare. What should I do to get Medicare when I retire. I am asking for myself. I am not planning to retire as long as I live, but I would reduce the numbers of hours I work.
I just saw your video and don't understand you increasing her expenses by 3% but assuming her pay does not increase at all for the same amount 0f work every year. Also if inflation is counted into the equation, you do know that social security gets a cola every year right? that $1750 goes up by an average of 2% every year. That is not even taking into consideration the tax implications.
@@yourfinancialekg I really appreciate your videos and analysis. It is truly helping me assess my situation. So much so that I might be a client in the near future. Keep up the great work!
Those of you under the age of 65, please be careful before pulling the plug on your career. Retirement is a huge transition that can be emotionally devastating. Just be careful. Peace and best wishes.
I was adviced to diversify my portfolio among several assets such as stocks and bonds since they can protect my portfolio for retirement of about $170k. I need advice: Do I keep contributing to my portfolio in this unstable market or do I look into alternative sectors?
Retirement is now more difficult than it was in the past. it's all about balancing your risk tolerance with your long-term goals. Maybe consider speaking to an advisor to help in diversifying your portfolio to spread out the risk.
A Flight attendant salary goes up every year unless they are topped out. But still she might get a 2% a year increase, so if she is putting in the same hours, her salary is higher every year. This will change the math on how much savings will exist after each 10 years. Same with the Social Security, it will go up every year. So yes, taking SS at 62 will work better than waiting for 67, the numbers will be better than shown on your example. But still, great job on your video.
@@yourfinancialekgI don't believe for a min that an airline will allow a flight attendant to have a job in a plane at 75, let alone 80... way to much chance for injury...
What about all the taxes she will owe for withdrawing investments? I don’t think they want a 72 year old flight attendant. So $1,000 will be lost within first 5 years
There is so much wrong with that 'cipherin' I don't know where to begin. What about repairs on her house? Over a period of 20 years there will be some hefty expenses. How does she know she will be healthy enough to work until 80? What about emergency health care? What about her forced medicare payment of at least $175 that will begin at her full retirement? This is based on an absolutely perfect scenario, which we all know does not exist.
If your house is paid off, the taxes on it are extremely low, your utilities are near zero, and you love to eat beans and rice/rice and beans, and you never have health issues, then sure!
@@yourfinancialekg Thanks. I often read about SS averages but they never state if it's net or gross. It makes a difference, especially for people at the lower end of the scale.
Why would someone with only $25000 invest ALL the money in the market? You are including all her money and not taking into consideration that part of that money might be in a checking and stodgy low risk bank savings account. You need to say $15000 in investments with a more reasonable return of 4% in the current real world 🌎
I watch your many videos, they're so far so good with number. However when talking about EXPENSE you or candidate Never ever including the HEALTH-CARE cost that is a issues with people plan to retire before 65 (Medicare Kid In). So your final video is not really accurate regardless of Software/Simulation you're using.
What 80 yr old flight attendants are there out there? She may wanna work but there’s no guarantee she won’t be ‘let go’ due to age. And you keep saying social security like it’s guaranteed. Well it isn’t really.
Awesome videos. In my situation I am on my 30s and I already retired. For the past 12 years I invested aggressively in the stock market, and I gained excellent returns. I saved most of the time and i don't overspent. This helped me to retired at this young age with $520,000. Thank you for the videos are really helpful.
Correct, this is the one big flaw in this case. There are an other few minor issues, the 1000 monthly over 20 years is unrealistic. The content was still good
Do Pensions count as part of that income limit? I have a Fixed $22,080 pension, Bo COLA THAT Alone wud put me over the Limit? I wud like to work Part-time but not if it wud affect my Soc Sec that much? When projecting Soc Sec do they add in COLA?
Ok, good! I want to work Part-time to get some income and full Healthcare. If Pension doesn't count I can stay under limits by only working a few days per week.
@@josephjuno9555 Pensions in fact do count as taxable income. Some states don't tax it, but there are federal taxes, so you should include it in the mix.
Having to work as a stewardess in your 80s and relying on a linear 6% return on your portfolio is not a viable retirement plan. Opening up the hecm reverse mortgage at age 62 ,to get the line of credit growing should be a strong consideration. The growth on the reverse mortgage will cover many of the obstacles that are not accounted for in the current retirement plan
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I would rather enjoy 55-70 rather than worry so much about 80-95 when you may or may not be alive. Statistically speaking if you are alive 80-95 you will likely not be able to do much. Retire as soon as possible life is fleeting.
Very true
All my grandparents died in the mid-80’s with the exception of 1 who died at 91. My parents are in their late 70’s and are doing incredibly well. So I have to think about longevity. But I agree with your premise.
Yeah I was thinking the same thing.... statistically speaking, the average life expectancy for MEN in the US is 73 years old. Women are about five years longer.
I’m 56, two of my siblings are already dead one at 56 and the other one at 60 😢. I want to retire today!
I'd like to see computations that do not include part time work.
We are all lucky and blessed to live to 60. My Beautiful wife past at 42. Live your life
Thank you for sharing
Sorry to hear. My sister lost her husband 26 years ago to cancer. He was 42.
@@paulreynolds2569 I'm sorry to hear, no greater pain.
OMG, this is me! Thank you for having a video for us normal people. This senecio is where I am at but I want to keep working to max out my retirement fund as long as I can. I am projecting at 65 to work part time and collect my SS at 67 then I'll retire. I reduce all my expenses and no debts at all. I plan to live abroad where my living will be so much less than living in AMERICA and health care is way better abroad. I have a side gig as a Travel Advisor I work on when I can. It's pocket money for me now. I will be 62 in April and I am a single Flight Attendant who loves my job. When I retire I get lifetime benefit of flying.
Awesome! Thanks for commenting and watching!
I am also projecting to retire at 60. Home and rental all paid off. Should have $1M+ cash and decent 401k. Plan to withdraw SS at 62 with my wife. Also Plan to sell my primary home and rental at retirement worth around $2M, then move somewhere cheaper like a $6-700k home.
Why do you think healthcare is way better abroad? I'm also looking at retiring abroad, but my concern is the healthcare aspect. I'm not trying to argue with you or say that you are not correct, but all the research I have found so far and people I have spoken with say the opposite. That healthcare in America is better. It may be expensive, but not better care. Do you have any information on where it is better, and why it is better?
I get tired of these “I have $$$ saved, can I retire” the correct question is “I need $$$ to live on, how much do I need to retire “
Love this title!! Video coming soon!
I am 63 and have 0 in savings, and no 401K. I am retiring next year and plan to live good on $1500 a month with my wife. We can get an apartment right on the beach in Da Nang Vietnam for around $400 a month. Average cost of a meal for two is around $2 to $3 dollars. You have to think outside the box.
🤯
I've been watching retirement videos lately, and I have to say, you are one of the best and at this point my favorite. I like your logic and ability to communicate.
Thank you!
Agreed!
This is the EKG I'd been hoping for. Single, no pension, no TSA - just an average 401k/IRA and a little side income.
Yes!
@@yourfinancialekg 18:33 18:33
Sad because $250k is not nearly enough but it’s way higher than the median amount saved at 60.
True
Many are retiring with zero. They can make it work. The next few years are not guaranteed.
@@mmmd3429 “The next few years are not guaranteed”…fortune cookie wisdom for the YOLO crowd that retires with no money. 😂
@@edhcb9359 They have $250k, that's not zero and no mention of Yolo.
250k is plenty because her expenses are low. If they are kept low she'll be fine. I will not be living to work. I plan on retiring early and getting ss as soon as i can.
$3000 a month in expenses, but you need to add an additional $500 - $750 a month for health insurance for 5 years, plus rate increases if she retires at 60
This is constantly overlooked when doing these calculations.
How do you know health insurance is not included? I can live off $2k in Florida and still have $ left for insurance, less if I have a roommate. $3k/mo is doable for sure.
@@lynnellechappell3337 If it is included (likely not), she will have to worry about homeowners insurance skyrocketing in FL.
There are a lot of shaky assumptions here. Be a flight attendant lifting suitcases overhead at 80? What about big expenses like home maintenance, a new car, medical expenses as you age? $3000/mo expenses seems very low.
Hey Ginger, thanks for the comment!
Finally a scenario for the most of us. Only one of my friends that I know of has a million plus portfolio. Thank you for this video
Your welcome!!
Another great video Drew! (Minus the sound effects 😂)
Thanks! 😃
This video is really helpful! I've been wondering about retirement planning and this gave me some great insights. Could you do more videos on different retirement savings scenarios?
Great suggestion!
At 60, do you want all of your money in the market? A 2 year recession could toast your life savings. I think in this environment, I would convert to a stable high interest investment. 5% with no risk MAY be better than a MAYBE 6% with high risk. I agree about taking SS at 62.
I have to smile about the 80 year old working part time. Only because, as an American male I likely died 8 years before then.
I've never seen an 80 year old stewardess...have you??
Rates of return can be projected out at lower rates but the working is also the protection from market loss
@@darlenepaul2918she’d be coming down the aisle with her walker😂
That was my concern with the scenario. The math works but what's the reality of her being capable to work at 80. Her risk factors need to include the effects of age and health.
@@melvinbarnes6652Especially at 10,000 feet. 😮
Yes , at 55 retired in the Philippines with 250k plus I have a pension of $1800 a month. I have a $2500 a month budget and living like a king!
Great!
You won!
Great job, Drew. Appreciate how you layout the data
My pleasure!
I agree. This was laid out in a very easy to understand way.
What I notice is that none of these numbers include buying health insurance when under 65, only daily expenses
So interesting! I really appreciate how you explain each of the steps.
Glad it was helpful!
I'm new to your channel an i love the wey you break the numbers down, i just subscribed .. thank you bro for keeping it simple..
Thanks and your welcome!
So, her expenses rise, but there’s no SS COLA? There’s no raise in 20 years for her part time job?
Very conservative projections, but yes. Remember COLA is not guaranteed and with the state of SS currently, we are just being careful. Thanks for commenting!
Work part time till 80 ? That’s not retirement.
Everyones retirement looks different.
Agree!
Agreed 😢
Agree. Would never do that myself
As a widow trying to retire asap, your videos are super helpful & realistic. Go Rays!
Glad they help!! Go Rays!!
Hi Drew! I'm thinking of retiring next Spring when I hit 59. I've got approx $500K in investment accounts (403B, Traditional IRA, Roth IRA). My part-time job in SC annually is about $50K. I've got rental property that adds about $40K to that income on my 1040. I have no debt. My biggest question mark is Health Insurance. I'd like to live off the rental income. I'm working a budget to live off $30K, but no longer adding to any retirement accounts except my Roth IRA (which I love because it grows tax free). Does this sounds doable??
Thanks for setting up a call!
Look into obamacare
I appreciate you showing the difference with when you take social security. Very helpful.
Glad it was helpful!
Hi Drew.
My name is Hélcio.
I'm american citizen, but i was born in Brazil. We live in USA for 33 years.
My wife and I are 58 years old.
We live in boynton Beach Fl.
I would like to know your thoughts about our situation.
We decided to stop working at 60 in 2 years, and go to Brasil.
If we stay here we have to work until 70.
We have a great place near ocean paid off to live in in Brazil.
We have a house here paid off too.
Without any doubt.
We have about 120k saved IRA.
We will leave this money invested until we come back.
Maybe for 15 years or so.
We can sale the house and invest the money, or we can rent it out for
2400 monthly, take 1000 to help us increasing our income in Brazil. (We have investment in Brazil, plus 1000k dollars monthly will feel the gap until we retire.
The rest of it we can put away for emergency and taxes, etc.
We will file social security at
67 or 70.
If at 70 probably will be around 4200 monthly for both of us.
exchange rate, 1 U.S. dollar (USD) is approximately equal to 4.97 Brazilian reais (BRL).
We will travel to America once a year to see our sons.
I mean without any deth
Thanks for the comment! For specific advice, please contact us directly at pearlwealthgroup.com
Your assuming a company will want to keep you when you're that old. They don't usually keep people on into their late 70's and 80's. Unless you're in amazing body shape at that age with all perfect cognition, and maybe in union that protects your job. But it's just not the norm.
Technically, that would be illegal: The Age Discrimination in Employment Act (ADEA) prohibits employers from firing people based on their age, as long as the age limitation is not a necessary occupational qualification. The ADEA protects people who are 40 or older from discrimination in all aspects of employment, including hiring, pay, promotions, layoffs, training, and benefits.
@@yourfinancialekgIn a perfect world…In the real world, I know people who lost their job due to age discrimination. They just call it something else or downsize you. You can spend your life savings suing them, so good luck with that. Flight attendants have to meet physical requirements. An 80 year old cannot do these things. This is a completely unrealistic plan. And if she is working into her 80s, she never retired.
I currently have $400K saved for retirement at 55, and I dont think I have enough to retire. My projections say at 62 I should have $750K saved between my IRA & 401K. I plan to drawdown on my 401K for 8yrs, then draw from my IRA when it crosses the $1MIL mark when I'm 70yo.
Perfect!
Interesting, I'm in a similar situation. But, with$420,000 at 59 and earning PT-type income of only about $10-15,000 per year(i don't have hard numbers). Also, my SS at age 62 is projected to be only $1070 per month(in 2023 $$). Monthly expenses are currently about $2300. I live in pricey California and my rent could jump after about 3-5 more years, with expenses jumping to about $3300 per month in today's dollars. I'm not in a hurry to retire my PT work, anytime soon.
Was wondering, In your example what would have happened if her $1000 per month was also indexed to inflation?
Thanks Paul. Indexed to inflation it would be much better for her
Thank you This was helpful and pretty close to my situation . Im 60 and own two homes with no mortgage and only $300 k in the market . I’m self employed and love my job , I know I can semi retire as I’m not a big spender and know how to be frugal
Awesome!!
For folks getting hung up on an 80 y/o flight attendant, all she'd have to do is work abut 2 days per week at $15/hour somewhere and she could make the 1k. Suggest not being quite so literal. However, I agree, I don't want to work late into my retirement years unless I enjoy it. It's probably better for her to work F/T to 62 and earn up to the SS threshold in her early retirement years to preserve her capital as long as possible. That extra 900/month added to SS would meet her early monthly expenses with a bit left over to save.
Here is one for your white board, 64 retired widowed receiving 20K a year survivor benefits, but at 70 will switch to my SS at 52K, before that happens and while tax rates are lower should I be draining down my IRA of 500K, is a Roth conversion the best option, I also have 150K outside my IRA, thanks
Good idea!
Your expenses and your other income is needed to provide an answer ( amount and is it pre tax)
@@sergiosantana4658 expenses 3200 a month, I make up the short fall from a taxed brokerage account with 150K balance, healthcare plan prevents me from IRA withdrawals this but next February I start Medicare and will start drawing down my IRA, I am just looking for the most tax effective way of doing that
I do have about 5K in taxable dividends
I do not like assuming you can work past 65. That seems risky. Health or corporate shifts may make it impossible.
Very true
Thanks for your take on this topic. It's a good conversation starter but not complete. Much left out in these calculations. Health insurance, buying another car, car maintenance, fixing or replacing an a/c unit, refrigerator, carpet, oven, roof issues, etc...
Thanks for watching and commenting!
Thanks for keeping it real Doc. 👍
You bet
I think you should include health care insurance in your calculations
Will do!
Drew, you are the first person I've found who makes it very easy to understand. My husband and I are looking for some help, but your link is not working. Are you no longer taking new virtual clients?
WE are! Sorry, the link was not working but we have fixed it. Here you go: pearlwealthgroup.com/contact/
Working PT into your 70s and 80s is a bit much. How are you supposed to enjoy your golden years? Would it benefit her to work until age 65 when Medicare kicks in?
You are correct!
Drew where are you suggesting she invest for that 6percent growth?. #4 risk equities? Are you doing a 60/40 or 50/50 equity bond splint ,or some all bond fund, dividend stocks, what do you suggest?
Nothing specific in the video but 60/40 had averaged 8% over last 50 years
This sounds like what I like to call a Netflix retirement. You can do this one if your home is paid for and you don't have any real expenses and don't do much other than stay home and watch TV. You essentially burn through a fair amount of the $250,000 until you take Social Security at a minimum age of 65. Then you live off of that and whatever may be remaining of the $250,000.
Good point
This whole premise was for working until 80?? Assuming that is the highest risk
Great analysis but don't you have to take the COLA increases into account with social security in the first example if you are adjusting expenses for inflation also? As of now her future payment is calculated for 67 at 2500 but that isn't taking into account 7 yrs of COLA.
True, but I am just conservative in my estimation. COLA is not guaranteed, but inflation is probably going to be there no matter what "COLA" calculation the gov uses.
Something doesn't look right to me. $364x12x10 should not empty her account even with inflation ...Am I wrong???
Don't forget taxes
Wait, did I hear you say she intends to work up until age 80 as a flight attendant?? I have done a decent amount of flying, over the years, and have never seen any flight attendant that even appeared to be in their 70s, much less in their 80s. I don’t know how safe I would feel with an 80-year-old flight attendant, especially if she had to perform CPR, or some of the other emergency procedures that they are trained to do.
Yes I did!
She should be happy if she can stand on her own at 80...forget being a flight attendant, which is the most difficult/insane job for an old person.....even for a young person.
Real life. Retired at 55 with $375,000 in tax deferred instruments. Was going to file for SS at 62. When I got to 62 and had more in my tax deferred instruments than when I retired 7 years earlier. I decided to wait till 66 to apply.. When I got to 66 after withdrawing from TDI's I still had more in those accounts than when I retired at 55 so I decided to file for SS at 70. Now if I would have filed for SS at 62 I would have received $1700 a month at 70 I receive more than $4000 a month from SS . My point is the breakeven point for SS for me was 6 years. Not ten or 11. The biggest reason is the cola difference between applying it to a smaller number and a large number. My cola increase this year is $130 per month. You may not be able to match the market returns of the last 15 years. I am so happy to have taken money out of the market when you could make some money. For the average investor you cannot beat 8% year after year along with differential tax treatment. Just sayin'
Thanks for sharing!
Retire in Philippines. Live like a king with $250,000 saved.
Video coming soon!
If your ok with going to hospitals with standards from the 1970’s…
@@Ww8.3 In Manila (Makati, BGC, Ayala), their hospitals are US-standard, even better than some.
Just please don't exploit the local culture/people and become a nasty, rude, bigoted expat that are sooo common in these parts.
“Work PT until 80.” Now I’m even more depressed 😢
At 2:40, "...her current annual expenses are $3000..."? ANNUAL expenses are $3000?
I just misspoke. Thanks!
Why are fixed expenses not included in these scenarios? Did I miss something?
They are in there.
Fabulous as always Drew👏👏👏💰💰💰
You rock!
Great helpful videos. Thanks
Glad you like them!
I sure wish you would do my plan. How much do you charge?
Interesting. But I think that $1000/month for income would increase a little bit with raises, and shouldn't net income be used instead of gross?
That's just to tight, IMO. Good think she decided to work a few more years and get a good amount more in her accounts.
It is tight, but this is closer to real world examples today. Thanks for commenting Rob!
Why didn't;t you factor RMD and taxes in your calculations? It can significantly impact the projection.
Yes because the client is using her IRA for income which takes care of the RMD
Great video as always, SS COLA 2.4% ?
Thanks for watching!
Nobody ever mentions health insurance. That's why I'm not retired
We mention it!
Probably need to wait in this case until age of 65 to retire and take Medicare and start SS. Medicare is very key.
Good idea!
She could go on Obama care, because of her low income. Then go on Medicare at 65.
what is the procedure for Medicare. What should I do to get Medicare when I retire. I am asking for myself. I am not planning to retire as long as I live, but I would reduce the numbers of hours I work.
Wouldn't taxes from retirement withdrawal, SS and regular income make the scenario infeasible?
Taxes are included
I just saw your video and don't understand you increasing her expenses by 3% but assuming her pay does not increase
at all for the same amount 0f work every year. Also if inflation is counted into the equation, you do know that social
security gets a cola every year right? that $1750 goes up by an average of 2% every year. That is not even taking into consideration
the tax implications.
Even if you collect ss early, once you hit full retirement age you can earn as much as you want.
Yes!
What about medical expense pre Medicare? Isn't that a fixed expense, and a pretty big one, those first five years?
Yes it is!
@@yourfinancialekg I really appreciate your videos and analysis. It is truly helping me assess my situation. So much so that I might be a client in the near future. Keep up the great work!
@@sullyone8373 Always excited to work with new people!
What about healthcare costs? Medicare doesn’t kick in until age 65.
Very true!
Work PT until 80? Did I hear that right? In the second scenario?
news.nationwide.com/new-report-economic-fears-driving-retirees-back-to-work/
Her income will increase along with inflation in this scenario. Helps a bit.
Yes!
Hey Drew.
Can I sign up for a retirement EKG?
I really enjoy your videos! Thanks. Steve
Yes you can! Please visit our website at pearlwealthgroup.com.
Those of you under the age of 65, please be careful before pulling the plug on your career. Retirement is a huge transition that can be emotionally devastating. Just be careful. Peace and best wishes.
I was adviced to diversify my portfolio among several assets such as stocks and bonds since they can protect my portfolio for retirement of about $170k. I need advice: Do I keep contributing to my portfolio in this unstable market or do I look into alternative sectors?
Retirement is now more difficult than it was in the past. it's all about balancing your risk tolerance with your long-term goals. Maybe consider speaking to an advisor to help in diversifying your portfolio to spread out the risk.
A Flight attendant salary goes up every year unless they are topped out. But still she might get a 2% a year increase, so if she is putting in the same hours, her salary is higher every year. This will change the math on how much savings will exist after each 10 years. Same with the Social Security, it will go up every year. So yes, taking SS at 62 will work better than waiting for 67, the numbers will be better than shown on your example. But still, great job on your video.
Thanks for the info and comment!
I'm trying to picture a 80 y/o plus flight attendant...
I've seen and know a 70 y/o flight attendant. If you are physically able to do the job, you can do it
Additionally, SS gets a COLA to help with inflation.
True
Work part time as a flight attendant to 80? That’s unrealistic and unreasonable.
Not really.
@@yourfinancialekgI don't believe for a min that an airline will allow a flight attendant to have a job in a plane at 75, let alone 80... way to much chance for injury...
Can I retire at 53 with $600,000 ..and my wife is still working making 70k+? My health insurance is covered.
How would RMDs affect the second scenario?
She is using the IRA for income already so wouldn't be affected
What about all the taxes she will owe for withdrawing investments? I don’t think they want a 72 year old flight attendant. So $1,000 will be lost within first 5 years
Hard NO! I would be worried into an early grave if I only had $250,000 saved...I can live cheap but not that cheap!
Get ready!
Life expectancy is only mid 70s go ahead and work forever
Live your damn life. Nothing promise
There is so much wrong with that 'cipherin' I don't know where to begin. What about repairs on her house? Over a period of 20 years there will be some hefty expenses. How does she know she will be healthy enough to work until 80? What about emergency health care? What about her forced medicare payment of at least $175 that will begin at her full retirement?
This is based on an absolutely perfect scenario, which we all know does not exist.
If your house is paid off, the taxes on it are extremely low, your utilities are near zero, and you love to eat beans and rice/rice and beans, and you never have health issues, then sure!
You Rock...!!!
Thanks!!
We/Congress/POTUS need to raise the cap on social security to make it solvent far into the future.
Is her $2,500 Social Security before or after Part B is taken out?
Before in this scenario
@@yourfinancialekg Thanks. I often read about SS averages but they never state if it's net or gross. It makes a difference, especially for people at the lower end of the scale.
Why would someone with only $25000 invest ALL the money in the market? You are including all her money and not taking into consideration that part of that money might be in a checking and stodgy low risk bank savings account. You need to say $15000 in investments with a more reasonable return of 4% in the current real world 🌎
She has 10k in the bank. Thanks for commenting!
@@yourfinancialekg ok missed when you said that. That’s not much though.
I watch your many videos, they're so far so good with number. However when talking about EXPENSE you or candidate Never ever including the HEALTH-CARE cost that is a issues with people plan to retire before 65 (Medicare Kid In). So your final video is not really accurate regardless of Software/Simulation you're using.
Good point!
Thank you
You're welcome
Stop with the cash register in Bell. It makes this unwatchable.
Point taken
Man at this rate I’m never gonna retire 😢
You can do it!
@@yourfinancialekg if only I was as smart as you when I was younger but thanks I’ll keep working on it.
What 80 yr old flight attendants are there out there? She may wanna work but there’s no guarantee she won’t be ‘let go’ due to age. And you keep saying social security like it’s guaranteed. Well it isn’t really.
Hopefully not let go due to age. That is illegal. Lots of older adults working these days. The data shows us that.
Awesome videos. In my situation I am on my 30s and I already retired. For the past 12 years I invested aggressively in the stock market, and I gained excellent returns. I saved most of the time and i don't overspent. This helped me to retired at this young age with $520,000. Thank you for the videos are really helpful.
How are you able to retire w/ $520k in your 30s? You must live in a LCOL area or somewhere internationally that is LCOL. Good for you.
The monthly income of 1,000 would increase over 20 years.
Yes we would hope so!
Correct, this is the one big flaw in this case. There are an other few minor issues, the 1000 monthly over 20 years is unrealistic. The content was still good
I was assuming she was working fewer hours so she still had a $1,000 paycheck each month. I mean, she is getting older.
@@DAVE-THA-PLUMBER I just flew Southwest to Nashville from Tampa and my flight attendant was in her 70's working full time.
Healthcare? How is she accounting for that
Do Pensions count as part of that income limit? I have a Fixed $22,080 pension, Bo COLA THAT Alone wud put me over the Limit? I wud like to work Part-time but not if it wud affect my Soc Sec that much? When projecting Soc Sec do they add in COLA?
Pensions do not count in the income limit, only earned income. COLA is 2.58% currently.
Ok, good! I want to work Part-time to get some income and full Healthcare. If Pension doesn't count I can stay under limits by only working a few days per week.
@@josephjuno9555 Pensions in fact do count as taxable income. Some states don't tax it, but there are federal taxes, so you should include it in the mix.
@davewebbtheauthor
yes but I was asking if it counts toward the SS Earned Income limits
@@josephjuno9555 Oh, ok.
Can I retire with $80k at age 64 that I am right now?
Need more data but could be a great video
The constant sound effects make this video unwatchable.
Thanks for the feedback
Yet you take the time to comment. Lol.
I enjoy the sound effects. They make a point.
Put me down as Team Sound Effects (cha-ching 💰)
Sure she can but all depends on what lifestyle one wants
she needs to work till 62 minimum
and working till 82 just isnt very realistic is it?
The age of workers working part time has gone up over the past few years. Health is obviously the big concern.
Having to work as a stewardess in your 80s and relying on a linear 6% return on your portfolio is not a viable retirement plan.
Opening up the hecm reverse mortgage at age 62 ,to get the line of credit growing should be a strong consideration.
The growth on the reverse mortgage will cover many of the obstacles that are not accounted for in the current retirement plan
Great idea!
The answer is NO!
Thanks for the comment!
@@yourfinancialekg no problem, good video
What if she took her s.s. at 65 ? She wouldn't lose that much , not 30 % .
Very true!
market turn, need a car$, medical$, fix the furnace$,...... will tank all her plans.
Good point
No one works till 80 ft or pt.
Unfortunately they do. Data shows that.