Your knowledge, enthusiasm and communication skills make you an awesome retirement planning, TH-camr, Ari! I learn something from every episode you post, thank you for the FREE content!
Ari, maybe you could present on inflation and how it impacts investment choices. All other things equal, how does an investment earning 6% compare to an investment earning 9% if inflation is 3% ? 🤔
Just stumbled across your podcast for the first time the other day. Your insights are REALLY helpful and valuable. Thank you and keep up the great work!
Ari, appreciate the roth conversion advice towards the end ; it is excellent;. It's the first time that I understood the benefit of low tax yearsRoth conversions to bring down RMD taxable income. Thank you.
Love these case study videos. Could you do one on a couple that's planning to retire even earlier (40's)? Interested to see what that looks like with Roth conversions, etc.
I had initially planned to retire at 62, work part-time, and save money, but the impact of high prices on various goods and services has significantly disrupted my retirement plan. I'm worried about whether those who experienced the 2008 financial crisis had it easier than I currently am. The volatility of the stock market is a concern as my income has decreased, and I fear that I won't be able to contribute as much as before, potentially jeopardizing my retirement savings.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
You are so fun to listen to! You’re excited and knowledgeable and I enjoy your videos. Now, if only I had $3M to retire with😂 I also wonder how one really knows how to plan for healthcare if retiring early? Like ballpark figure to plan yearly to give an idea?
I have an episode coming out in two weeks that will answer ALL of your healthcare questions. I’m bring on a health insurance expert that speaks in plain English. If it doesn’t, let me know :)
I would love a video that compares the difference in value between doing limited Roth conversions and saving drastically on healthcare with ACA subsidies (retiring at 55) vs larger Roth conversions and paying full price for health insurance.
Ari, I’m so glad I found your channel. You explain these concepts well, and the use of clearly explained examples with charts makes your content better than the others on TH-cam. Liked and subscribed!
This was great! I would love to see you make a video on thinking through when to take Social Security in light of a good portfolio of Traditional IRAs, Roth IRAs, with consideration with Roth conversions. (I feel like I'm at Burger King asking for extra pickles and extra mayo on a Whopper.) I'm currently trying to decide whether to delay taking SS in order to do more Roth conversions.
This is alot to take in. I have 1.3 mil in combination 401k, Roth, pension and Brokerage. I'm 61 and my original plan was to retire at 65. Would be nice if it could happen sooner but I'm terrified on making a mistake. I do have a mortgage and truck note that I'm hammering hard to pay down or off before 65. Don't think I'll make it.
This scenario looks very much like my own situation but we are 64/63. Looking to take SS at 67 but also a travel budget of around $25k for next 10 years. Seems feasible but I'm going to get hit with capital gains taxes off of some investments and am interested in how to mitigate the hit. Rip the band aid off or spread the pain over 5 years or so?
First time watching one of your videos, and I appreciate it your enthusiasm and knowledge. I can't say that I learned anything truy new, but you have reinforced concepts from a slightly different perspective, which gives me confidence that I am approaching my retirement decision correctly. I do have one question - When looking at the "results" for your client, I couldn't tell if you were running a monte carlo simulation (1,000 or more tests with differing outlooks for market) of if this was just a single simulation. I have zero doubts that you employ monte carlo simulations, os something similar, in your work with clients, but I wanted to have a better understanding of what I was looking at in your presentation. My reasons are a little selfish - your client's net worth/ages/income are remarkable close to me and my wife! Thanks in advance for any insights you can provide.
Thanks for your comment! Yes, Monte Carlo’s are run as well and I believe 10,000+ simulations and a Monte Carlo test is helpful for if you’re on track / but lacks when it comes to optimizing income through withdrawal strategies and doesn’t incorporate tax planning.
Maybe I missed it, but are income taxes taken into account? If they want to spend $8,500/month, they would have to take out something like $14K to cover taxes. Is that included in the model?
If we want to take advantage of the largest ACA subsidies to offset the cost of medical insurance premiums before 65, can we convert qualified $ to Roth $s so that it's not counted against is in qualifying for a subsidy? or, do we have to live off existing Roth $s to maximize the ACA subsidy?
Great video…… I’m 44 with around $5m invested in a general account (VOO Vanguard). Can I retire if I withdraw 3% per annum adjusted for inflation? I really do not want to work any more
@@teddyruxpin7876if someone invests 1 million in 100% stocks and let’s say it doubles in 10 years time to 2 million. If I switch my portfolio to a different fund, I’ll get hammered on tax.
As a bean counter (CPA), I feel the Monte Carlo sims help pick out added areas of risk when one has significantly less invested and has to concern themselves with the sequence of returns and the effects of inflation which, with the perfect storm, can wipe out the, otherwise moderate, middle class nest egg.
I appreciate your energy and the info shared, specifically as you had added focus on annual spending. I am a CPA that, though, now, retired, is still learning the retirement ropes. Two factors you didn’t sufficiently cover, even at a high level, were the effects of inflation and our Medicare girlfriend, IRMAA. …Particularly when talking about the pros and cons of Roth conversions. My focus is on helping those with significantly less in cash investments, but would be happy to share shop talk with you.
2.75%? That isn't bad, but 2.25% is better! I am riding that rate all the way to the 30-year mark! In all seriousness, this couple is on track for a great retirement and they should feel exceptionally good knowing that!
Right so in retirement Either save a ton more or just simply leave CA. I am not sure I would want to be retired in a State where there are high taxes and high cost of living. Hopefully in retirement you don't have a mortgage.
@@roareward There are some benefits such as property taxes being low and not allowed to increase much so if you have been in CA for a long time it can sometimes make sense to stay. It becomes a math problem.
Most Americans find it hard to retire comfortably amid economy crisis. Some have close to nothing going into retirement, my question is, do I pull cash from my 401k and buy a house, or spread my money in stocks for cashflow? I'd love to afford my lifestyle after retirement?
Lately, I've been contemplating retirement, uncertain whether my 401(k) and IRA will ensure a secure future. I've also invested $200K in the stock market, experiencing fluctuations without substantial gains.
Using a 401(k) or IRA is a valuable strategy for retirement planning, providing potential savings growth and tax advantages. While the stock market is promising, expert guidance is essential for effective portfolio management
Opting for an investment advisor is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 45% since Q2.
Thank you for this tip. it was easy to find your coach on the web. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
Wow, Ari really knows his stuff when it comes to retirement planning! Love how he breaks down complex financial concepts into bite-sized pieces. Speaking of planning, have you ever thought about adding crypto to your retirement strategy? It's a bold move, but could pay off big time! My Digital Money makes it super easy to get started in the crypto game. Who knows, it could be your ticket to a more secure retirement!
A lot - depends on where you live, try living in a big city in a decent house with a couple kids a couple cars and insurances for all of it along with food and daily living expenses - prices on everything are up 30-40% since 2019
I agree, a little low right? For me, $15k a month minimum just to get in the parking lot of the ball field. $25k a month is more like it for a smooth retirement.
That 22k net per month ( after taxes) that’s my lifestyle now and should not change in retirement otherwise I failed. If you need to financially downsize, move , be more frugal in retirement ( Except for a health catastrophe) you have failed . That’s not to say you electively downsized. If you had to financially have to live in less you lived above your income while working .
If money is more important than time and freedom, then yes I agree. I’m 63 and retiring at year end on less than I net today. But the freedom and extra time to do what I want, when I want, by far offsets the $$ I will give up. That’s success to me, but I realize that’s not for everyone. You need to do what is right for you.
Your knowledge, enthusiasm and communication skills make you an awesome retirement planning, TH-camr, Ari! I learn something from every episode you post, thank you for the FREE content!
Thank YOU! These messages are why I love to do it :)
Ditto!
I'm favoured financially, Thank you Jesus $32,000 weekly profit regardless of how bad it gets on the economy.
Try to make few research before letting anyone trade for you like I did ❤ Thank you Jesus, God bless America.
How
..? Am a newbie in crypto investment, please can you guide me through on how you made profit?
A scenario that included buying a second house in retirement, a Snowbird scenario,would be great. Thanks Ari
Someone who acknowledges inflation, kudos
Ari, maybe you could present on inflation and how it impacts investment choices. All other things equal, how does an investment earning 6% compare to an investment earning 9% if inflation is 3% ? 🤔
Just stumbled across your podcast for the first time the other day. Your insights are REALLY helpful and valuable. Thank you and keep up the great work!
Thank you Steve!
Ari I've shared this video with at least 12 people. I think it's the best one you've ever done! Congrats on passing 32k subscribers!
@@susanlee594 thank you!!!!!
Ari, appreciate the roth conversion advice towards the end ; it is excellent;. It's the first time that I understood the benefit of low tax yearsRoth conversions to bring down RMD taxable income. Thank you.
You’re so welcome
Love these case study videos. Could you do one on a couple that's planning to retire even earlier (40's)? Interested to see what that looks like with Roth conversions, etc.
Yes!
I had initially planned to retire at 62, work part-time, and save money, but the impact of high prices on various goods and services has significantly disrupted my retirement plan. I'm worried about whether those who experienced the 2008 financial crisis had it easier than I currently am. The volatility of the stock market is a concern as my income has decreased, and I fear that I won't be able to contribute as much as before, potentially jeopardizing my retirement savings.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
Thanks Ari. This case study was very helpful and you make it very easy to understand.
I’m so glad!
I've been binging financial TH-cam and you are an excellent presenter if this sort of information. Keep it up!
Glad you enjoy it!
You are so fun to listen to! You’re excited and knowledgeable and I enjoy your videos. Now, if only I had $3M to retire with😂 I also wonder how one really knows how to plan for healthcare if retiring early? Like ballpark figure to plan yearly to give an idea?
I have an episode coming out in two weeks that will answer ALL of your healthcare questions. I’m bring on a health insurance expert that speaks in plain English. If it doesn’t, let me know :)
I would love a video that compares the difference in value between doing limited Roth conversions and saving drastically on healthcare with ACA subsidies (retiring at 55) vs larger Roth conversions and paying full price for health insurance.
You’re in luck :)
Here it is: th-cam.com/video/WeDKlxfLCXw/w-d-xo.htmlsi=punq09_BYENCJxWF
Thank you!!!
Ari, I’m so glad I found your channel. You explain these concepts well, and the use of clearly explained examples with charts makes your content better than the others on TH-cam.
Liked and subscribed!
This was great! I would love to see you make a video on thinking through when to take Social Security in light of a good portfolio of Traditional IRAs, Roth IRAs, with consideration with Roth conversions. (I feel like I'm at Burger King asking for extra pickles and extra mayo on a Whopper.) I'm currently trying to decide whether to delay taking SS in order to do more Roth conversions.
I don’t have a traditional IRA just a Roth IRA. Can I do a Roth conversion with my 401K money?
Most 401ks do not allow it. Roll over to Ira and do conversions there. Not too hard. Google is your friend.
This is alot to take in.
I have 1.3 mil in combination 401k, Roth, pension and Brokerage.
I'm 61 and my original plan was to retire at 65. Would be nice if it could happen sooner but I'm terrified on making a mistake. I do have a mortgage and truck note that I'm hammering hard to pay down or off before 65. Don't think I'll make it.
What tool are you using? I have a (very) sophisticated Excel financial model that I created, but the sliders / features here are nice!
RightCapital. Get access here: ari-taublieb.mykajabi.com/early-retirement-academy
Nicely done Ari... been watching retirement videos for quite some time... you are fun to listen to
Thank you sir!
This scenario looks very much like my own situation but we are 64/63. Looking to take SS at 67 but also a travel budget of around $25k for next 10 years. Seems feasible but I'm going to get hit with capital gains taxes off of some investments and am interested in how to mitigate the hit. Rip the band aid off or spread the pain over 5 years or so?
Is it better to take the health care subsidies or do a roth conversion between ages 60 and 65?
Ari, you are a real asset!
You rock, Paul!
Thanks, very informative.
Pleased to hear it. You’re welcome!
Great Video!
Thank you!
This is very helpful thank you ❤
This is very helpful thank you
Great videos! Liked/Subscribed. :-)
First time watching one of your videos, and I appreciate it your enthusiasm and knowledge. I can't say that I learned anything truy new, but you have reinforced concepts from a slightly different perspective, which gives me confidence that I am approaching my retirement decision correctly.
I do have one question - When looking at the "results" for your client, I couldn't tell if you were running a monte carlo simulation (1,000 or more tests with differing outlooks for market) of if this was just a single simulation. I have zero doubts that you employ monte carlo simulations, os something similar, in your work with clients, but I wanted to have a better understanding of what I was looking at in your presentation. My reasons are a little selfish - your client's net worth/ages/income are remarkable close to me and my wife!
Thanks in advance for any insights you can provide.
Thanks for your comment! Yes, Monte Carlo’s are run as well and I believe 10,000+ simulations and a Monte Carlo test is helpful for if you’re on track / but lacks when it comes to optimizing income through withdrawal strategies and doesn’t incorporate tax planning.
why do people separate travel out from their monthly expensives?
@@ryanlindsay4117 because it’s not forever
Ari, does Root's retirement planning academy software cover California state tax? And the software will be updated annually right?
Maybe I missed it, but are income taxes taken into account? If they want to spend $8,500/month, they would have to take out something like $14K to cover taxes. Is that included in the model?
Included. 8,500 is after tax.
Just sharing that if anyone else couldn't download the planner in Chrome, it will work in Edge.
Unfortunately, I'm not sure we can count on Social Security..
If we want to take advantage of the largest ACA subsidies to offset the cost of medical insurance premiums before 65, can we convert qualified $ to Roth $s so that it's not counted against is in qualifying for a subsidy? or, do we have to live off existing Roth $s to maximize the ACA subsidy?
Question for you Ari! when you used the example of $12k per month, are you assuming that is pre or post tax? Thank you!
Post tax and adjusted for inflation
Great video…… I’m 44 with around $5m invested in a general account (VOO Vanguard). Can I retire if I withdraw 3% per annum adjusted for inflation? I really do not want to work any more
Check this out: th-cam.com/video/OH3lBFfGkA8/w-d-xo.htmlsi=jX4OVoihX4GLJZkN
99% stocks at 44, not me
@@teddyruxpin7876if someone invests 1 million in 100% stocks and let’s say it doubles in 10 years time to 2 million. If I switch my portfolio to a different fund, I’ll get hammered on tax.
What do you think of the idea of making spending profiles and loading that into a software?
I like it.
you need to look up the term " sequence of risk" looks like your assuming an average annual rate of return, which is misleading
Here’s my episode on that: th-cam.com/video/x96aDJ6QfyQ/w-d-xo.htmlsi=CJSJqwBO6GdY4XO9
Why take out only 4% when you are averaging 8% returns in the market? Makes no sense.
Is 12k monthly estimate in your tool before or after taxes?
@@asimkhan7 AFTER!!
Is there a reason that you look at that graph instead of a Monte Carlo simulation?
That is right capital software it tracks and loads Monte Carlo simulations every time it is updated.
As a bean counter (CPA), I feel the Monte Carlo sims help pick out added areas of risk when one has significantly less invested and has to concern themselves with the sequence of returns and the effects of inflation which, with the perfect storm, can wipe out the, otherwise moderate, middle class nest egg.
How much monthly do you need to retire very comfortably? 10k?
Everyone is different!
I appreciate your energy and the info shared, specifically as you had added focus on annual spending.
I am a CPA that, though, now, retired, is still learning the retirement ropes. Two factors you didn’t sufficiently cover, even at a high level, were the effects of inflation and our Medicare girlfriend, IRMAA. …Particularly when talking about the pros and cons of Roth conversions.
My focus is on helping those with significantly less in cash investments, but would be happy to share shop talk with you.
Here’s my episode addressing those: th-cam.com/video/NbE-G7XXO5A/w-d-xo.htmlsi=OOsA5udlW3MRug6H
The could spend 150K a year easily properly invested...
Why do you call it a “rollover IRA” just call it an IRA.
There’s a big difference in protection www.sofi.com/learn/content/rollover-ira-vs-traditional-ira/
If 1 or 2 or 3 are my choices I will take 3.
2.75%? That isn't bad, but 2.25% is better! I am riding that rate all the way to the 30-year mark! In all seriousness, this couple is on track for a great retirement and they should feel exceptionally good knowing that!
Don't think I've spent $25,000 on travel in my entire lifetime, and I'm retirement age, lol.
Whoever needs 12K a month is either deep in debt or rich. Who in heck needs 12K a month to live in retirement.
So everyone understands this case is for 0.01% percentage of US population.
12K a month in CA just covers your mortgage.
Right so in retirement Either save a ton more or just simply leave CA. I am not sure I would want to be retired in a State where there are high taxes and high cost of living. Hopefully in retirement you don't have a mortgage.
@@roareward There are some benefits such as property taxes being low and not allowed to increase much so if you have been in CA for a long time it can sometimes make sense to stay. It becomes a math problem.
Most Americans find it hard to retire comfortably amid economy crisis. Some have close to nothing going into retirement, my question is, do I pull cash from my 401k and buy a house, or spread my money in stocks for cashflow? I'd love to afford my lifestyle after retirement?
Lately, I've been contemplating retirement, uncertain whether my 401(k) and IRA will ensure a secure future. I've also invested $200K in the stock market, experiencing fluctuations without substantial gains.
Using a 401(k) or IRA is a valuable strategy for retirement planning, providing potential savings growth and tax advantages. While the stock market is promising, expert guidance is essential for effective portfolio management
Opting for an investment advisor is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 45% since Q2.
Market behavior can be complex and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?
Thank you for this tip. it was easy to find your coach on the web. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
Wow, Ari really knows his stuff when it comes to retirement planning! Love how he breaks down complex financial concepts into bite-sized pieces. Speaking of planning, have you ever thought about adding crypto to your retirement strategy? It's a bold move, but could pay off big time! My Digital Money makes it super easy to get started in the crypto game. Who knows, it could be your ticket to a more secure retirement!
Your kidding what average person in the world spends 12k a month
A lot do. Thus the never ending inflation. People spend like drunken sailors.
A lot - depends on where you live, try living in a big city in a decent house with a couple kids a couple cars and insurances for all of it along with food and daily living expenses - prices on everything are up 30-40% since 2019
The same people who have accumulated $4M in assets, they make $300k a year
The above average couple appreciates this information.
@@clt72pilot you’re very welcome! Thanks for letting me know.
12k a month, WTF?
That's not outlandish.
@@jackbauer9347
No it is not.
I agree, a little low right? For me, $15k a month minimum just to get in the parking lot of the ball field. $25k a month is more like it for a smooth retirement.
12k per month after taxes has a nice ring to it.
@@DJ-FIRE-SEAMy man (Denzel gif here)
Answer: You need 12K a month.😅
That 22k net per month ( after taxes) that’s my lifestyle now and should not change in retirement otherwise I failed. If you need to financially downsize, move , be more frugal in retirement ( Except for a health catastrophe) you have failed . That’s not to say you electively downsized. If you had to financially have to live in less you lived above your income while working .
If money is more important than time and freedom, then yes I agree. I’m 63 and retiring at year end on less than I net today. But the freedom and extra time to do what I want, when I want, by far offsets the $$ I will give up. That’s success to me, but I realize that’s not for everyone. You need to do what is right for you.
I spent 22 k a month. That’s what I need .