I’m 60yo, retiring in March. My number is 100% because I didn’t realize I was so responsible with my money, I have a 50% pension and my wife just inherited $1.6M. So we’re going to do our best to spend it down and help our kids.
you have done anything wrong. Move to Mexico, Costa Rica, whatever. The cost of living is better. You do not need a car. I know, been doing this for 9 years. Go to an ATM and draw money for the week, so you only pay Fed taxes.
Yeah, to me running out of money is defcon 5, paying to much in taxes is around defcon 1 or 2 lol just not near as big of a deal as having to drag my old ass back to work cause I’m broke
True, and if I have more than I want to spend, there’s many friends and family that could use help. I’m thinking of putting money in my son’s Roth too.
Just turned 40 (millennial) 450k networth currently in this market…shooting for FIRE by 46-48…but still work part time so I won’t be bored and extra spending fun cash
So what I'm getting from this is only put the amount you need for retirement into retirement accounts, all other savings go into a different account without the retirement tax rules that can be used for anything as opposed to strictly retirement funds.
I guess I don’t understand the issue other than it makes the financial planners life more difficult. They now need to look at things like Roth conversions or use QCD to avoid the taxes. I’m in my 40s and just had a financial planner go through my plan. He said my score was 155. Even in my 40s I’ve been doing Roth conversions up to the top of the 24% bracket. While I’m paying over 100k in taxes now it will save me in the long run. While I do wish I was focusing more on Roth earlier, I’m still going to save about 40% of my gross.
My plan is to tweak our spending based on the funds we can withdraw from investments. Our returns have been pretty good and there's a bit more money in investments than I thought there may be so we may have a little more income in retirement than we'd planned. That's ok, we work with some non profits, there's no shortages of places to get rid of a bit of excess money. If it turns out we saved a bit too much, so be it.
What's wrong with having a lot of money to give to charity? What if something sad happens like a divorce, it's hard to overcome? (i'm speaking from experience in my own divorce a ton to try to build back up my savings afterwards) Alot of life is uncertain having too much saved isn't the end of the world, just give more to charity or pass onto your children while alive I suppose it gets more views with the TH-cam algorithm to say you are saving too much
What happens if Duke and Edna suddenly need $300k/yr to continue their lifestyle due to roaring inflation? Then they probably should have invested more?
I would say true to a point. You are only in your 20s, 30s and 40s once so save as much as you can but still have fun during those ages where you can get around and do things. NO point never leaving the house, then dying at 75 with 20 mil in the bank. Things like a boat/ATV/trips etc are way more fun when you are 30 than when you are 70.
I’m 60yo, retiring in March. My number is 100% because I didn’t realize I was so responsible with my money, I have a 50% pension and my wife just inherited $1.6M. So we’re going to do our best to spend it down and help our kids.
Give as much as you can to your children while you can see them enjoy it!
you have done anything wrong. Move to Mexico, Costa Rica, whatever. The cost of living is better. You do not need a car. I know, been doing this for 9 years. Go to an ATM and draw money for the week, so you only pay Fed taxes.
I’d rather have a tax problem than an income problem. I’ll just keep saving, no one knows what the future will bring as far as expenses.
Yeah, to me running out of money is defcon 5, paying to much in taxes is around defcon 1 or 2 lol just not near as big of a deal as having to drag my old ass back to work cause I’m broke
I think his point is save it in after tax investments or Roth investments instead of before tax.
The point is paying less taxes wether that is today or in the future. They both matter
True, and if I have more than I want to spend, there’s many friends and family that could use help. I’m thinking of putting money in my son’s Roth too.
Exactly!
Just turned 40 (millennial) 450k networth currently in this market…shooting for FIRE by 46-48…but still work part time so I won’t be bored and extra spending fun cash
Oh no. Where is the cool bull and bear painting in the background? That was awesome
That was my first question too.
I was wondering that too. I love that painting
answer is save extra in brokerage account.....not a retirement account
They need to keep saving like they are and realize that the beach and condo will be alot more enjoyable at 53 vs 63.
So what I'm getting from this is only put the amount you need for retirement into retirement accounts, all other savings go into a different account without the retirement tax rules that can be used for anything as opposed to strictly retirement funds.
Thanks Dustin great examples
Thanks so much for this.
I guess I don’t understand the issue other than it makes the financial planners life more difficult. They now need to look at things like Roth conversions or use QCD to avoid the taxes.
I’m in my 40s and just had a financial planner go through my plan. He said my score was 155. Even in my 40s I’ve been doing Roth conversions up to the top of the 24% bracket. While I’m paying over 100k in taxes now it will save me in the long run. While I do wish I was focusing more on Roth earlier, I’m still going to save about 40% of my gross.
My plan is to tweak our spending based on the funds we can withdraw from investments. Our returns have been pretty good and there's a bit more money in investments than I thought there may be so we may have a little more income in retirement than we'd planned. That's ok, we work with some non profits, there's no shortages of places to get rid of a bit of excess money. If it turns out we saved a bit too much, so be it.
Great information!!
Thanks for this video. I definitely want to invest my money, but in all aspects. Not just for retirement.
Don’t wait for “some day”. For too many, “some day” never happens.
Could you please do more content for people that want to retire at 55?
Under 45
Agreed
Great topic!
Save only what I need.......how is that determined with variables like the inflation last year?
I wouldn't mind being them...similar story with my wife and I, but we are a little bit older.
Was that $278,000 millennial net worth figure a single individual net worth or a family net worth?
Why did you model starting SS at 65, when their full retirement age is 67?
What's wrong with having a lot of money to give to charity? What if something sad happens like a divorce, it's hard to overcome? (i'm speaking from experience in my own divorce a ton to try to build back up my savings afterwards) Alot of life is uncertain having too much saved isn't the end of the world, just give more to charity or pass onto your children while alive
I suppose it gets more views with the TH-cam algorithm to say you are saving too much
Structure the retirement funds so they will not have RMDs!!!! That is what I am doing.
It's Orangina Dustin.😄
What happens if Duke and Edna suddenly need $300k/yr to continue their lifestyle due to roaring inflation? Then they probably should have invested more?
What happens if the Earth blows up tomorrow?
@@MrSean03839 well, then, I guess we won’t need ANY money then.
@@doncook7171 Right! So everything is hopeless, just give up! LoL!
There's no such thing as saving too much
It depends where you save it!
@@wvtaco4379 please explain
I would say true to a point. You are only in your 20s, 30s and 40s once so save as much as you can but still have fun during those ages where you can get around and do things. NO point never leaving the house, then dying at 75 with 20 mil in the bank. Things like a boat/ATV/trips etc are way more fun when you are 30 than when you are 70.
Just stick to a Roth IRA
Video is a joke and trying to make retirement sound bad smh
Great video. Love Dave Ramsey but this is details he doesn’t talk about