I agree... assuming that the social security benefits and pension amount is good, and $0 debt, and the house isn't huge or on a huge piece of land or in an HCOL area, and no chronic health issues that require frequent gospital visits or expensive medication, and that the investment keeps growing at the historical growth rate, and that inflation remains relatively low, and that taxes don't go up due to all the spending the fed is doing.😅
@@EazyE11 Social Security is basically the fourth rail of American politics. Best of luck to any party that tries cutting benefits. There will likely be some adjustments made (higher FICA taxes, higher tax ceiling or higher FRA) but doubtful that benefits are eliminated entirely.
@@Ethan-bu2zy with this crazy orange man who's a *BILLIONAIRE* who the hell knows, maybe we will getting .75-80 cents on the dollar we were promised 😢
I started early but made so little it still took 40 years to get to my $670K portfolio. I am mostly in income generating funds/stocks. it generates $75K per year. Way more than I can spend. I actually reinvest a good portion of it.
I have a relative living on social security alone and if he has 100K saved, I would be shocked. He's living fine. Many people live on social security alone with little saved and seemed to manage somehow. When you try and do this stuff on paper, it doesn't seem dooable but people get through life on much much less than what the experts suggest and without side hustles. Does anyone really think the average American even has 500K saved? I highly doubt it.
@@Michael-uf1hz Exactly! It all depends and a lot of people make it work with just SS. Some live with their children. Some move to a lower cost of living area. Some do side hustles (partial retirement). The answer is always it depends.
Maybe not retire but my biggest goal is to work part time someday while my investments do the heavy lifting. Working part time is basically retirement imo, I only take issue with full time jobs because they take a toll on my lower back and overall well being…
*500k won't last long in the U.S.* 4% is roughly 20k annually. but If you have an additional 20k coming from somewhere else... then it could work 🔥🔥🔥 _EDIT:_ _Seriously Doubt that Social Security will still be around/solvent in the next decade._
Social security isn’t going anywhere. Think about the people that vote politicians into office. Old people. Also insolvency just means 75% of benefits, not losing all benefits.
He's doing it wrong. Put 500k in an individual investment account. Borrow .5% a month. Your principal never depletes and counts towards compounding. According to his rate of return, after 7 years you're getting .5% of 1M monthly (5k post 'tax' money) which is equal to roughly a 75k yearly income. Simple stuff if you do enough research.
This was an informative video. Each case is different. I always find it interesting how videos assume that retired people want to travel. Sure, some do but it seems that travel is assumed to be a key thing retirees want to do. Often health limits the ability to comfortably travel. Also, many retired people simply want to relax and not deal with the rat race anymore. Again, everyone is different and thank you for the video.
Phased retirement or partial retirement can work for a lot of people. When people go from 40 hours per week to zero it is often too abrupt. For those with the option to cut down to 15-25 hours it can work well, even if it is only 1/3 of full pay. Sometimes it makes sense to spend more time with family or helping one's own long-term health, if that person doesn't need full pay the next few years before completely retiring (if that is the goal, or becomes unavoidable).
Did he mention a 50% decline in the S&P 500? Another lost decade similar to 2000 and 2010 is always a possibility. Maybe this is where bonds and cash will hold you down ver until a market recovery.
House hacking doesn't eliminate your housing cost, it increases your income. Increasing your income will impact how much of your social security benefits is taxed.
The big risk is cuckooing - the older you are the more vulnerable to bad actors. You rent out a room and they take advantage, then take over. I wouldn't want to rent out a room for extra income after 60.
*500K* Is possible if you have a paid off home, paid off car, good health & manage unnecessary expenses! Using the 4% rule, your social security & any other CASH HUSTLE !!
What kind of lifestyles is everyone living? If my house is paid off i could probably just live off my ss. I know i will savings to afford a nursing home, but for my day to day expenses i dont need much
$500,000 would be a stretch! I would be concerned about inflation and health care costs, even with other income streams. SS delay to 70 years old is better.
@@aldaley3537 Many people will have "kicked the bucket" before 70. And average lifespan of men will be "6ft under" before 79. I'm taking my SS as soon as I can get it. But I wish you luck ❤😁❤
Many people will have "kicked the bucket" before 70. And average life'span of men is only 79. I'm taking my SS as soon as I can get it. But I wish you luck ❤😁❤
@@bucknut9475 i'm sure lol but they have skills; probably a car; some sort of credit; etc. i got the lowest credit score and a bicycle with no special skills lol
This totally depends on your lifestyle and where you live. Debt free in a low property tax area yes it’s possible. Safe withdrawal rate is 4% so 20k a year on 500k, and the average ss check is 1800 a month, you’re looking at 41k income all in all. If everything is paid off you can live on the 41k, assuming your spouse also has 500k invested and that same ss check it’s even easier at 82k. Housing just property tax a year 2k, food 8k, health insurance 2k, utilities 5k, car insurance 1k, gas 2k. So that’s only 20k a year on necessities. Totally doable and you have some left over 20k or to 40k with a spouse, to have fun with or cover miscellaneous expenses.
Where you live is key. I live in California, where the cost of living is generally insane. $47k a year is poverty income in major California cities. But if you're willing to live in a flyover state that income can set you up reasonably nicely.
As always it depends. Live in a state like new york and even with everything paid off property tax and state tax on goods will eat a good portion of that money in the blink of an eye. Living in a modest home of 1200sqft on long island my property tax will be close $20k a year soon enough. Seems to go up a grand or so every year. Its time to leave here.
That's rough ! I'm in Cook County Illinois and I have a 719 square foot house built in 1906 and I'm paying about 9K and ever increasing ! I'm 64 and only have about 500K , I think I'll have to move back home to Ireland . It's not cheap there either but at least the property taxes aren't as crazy
@kwaichangcaine8234 Illinois is ranked right below NY for property tax. Moving to just about any other state would be cheaper. Council tax is no joke either.
I would venture to say you could probably withdraw up to $40k annually or 8% with only a $500k portfolio and not run out of money. But you cannot retire early nor can you retire if your family is known for living an extraordinarily long time. That is to say, if you're retiring at 65, collecting social security, and expect to live only another 10 - 15 years, you'll probably be OK. But if you're 40 or 50 something hoping to leave the rat race now or 65 and your grandparents are still alive, forget about it.
If you're paying rent or mortgage in retirement, you've either retired too early, or you've been unfortunate in later life - in general you should aim to clear off your mortgage by retirement because it makes things so much easier. If you can't, downsizing should be seriously considered. Downsizing is also good to release equity in the house if that's your heaviest asset, although I wouldn't go as far as getting a tiny house! US social security at retirement is pretty high, I can see this being reduced in the future as an easy to cut area of the budget in the name of government efficiency. US retirement according to the end of this video seems to consist of not retiring but just working more. Joy.
I retired earlier this year at 56 after 33 years as an accountant. I still have my mortgage at 2.5% for the next 3 years. I did not retire too early nor am I in a financial pickle. I can earn significantly more than 2.5% by investing as opposed to paying off my mortgage which I have the funds to do. Personal finance is just that … personal. Financial advisors exist to customize strategies based on an individual’s personal circumstances.
Where did you get this from? I lived overseas for almost 14 years and rented and just came back to the US in 2018. I then rented until 2020 when I purchased a home. I am 65 and will be about 91 when it's paid off. The mortgage rate is 1.999%. I could pay the balance of about 350K off right now but choose not to because my investments make a lot more. You don't have to have a paid off house in retirement. It just depends on your circumstances.
$500k with SS and a pension. Definitely!
I agree... assuming that the social security benefits and pension amount is good, and $0 debt, and the house isn't huge or on a huge piece of land or in an HCOL area, and no chronic health issues that require frequent gospital visits or expensive medication, and that the investment keeps growing at the historical growth rate, and that inflation remains relatively low, and that taxes don't go up due to all the spending the fed is doing.😅
How long is social security going to be around since we have elected officials on tape saying they want to cut it.
@@EazyE11 Social Security is basically the fourth rail of American politics. Best of luck to any party that tries cutting benefits. There will likely be some adjustments made (higher FICA taxes, higher tax ceiling or higher FRA) but doubtful that benefits are eliminated entirely.
@@Ethan-bu2zy with this crazy orange man who's a *BILLIONAIRE* who the hell knows, maybe we will getting .75-80 cents on the dollar we were promised 😢
I'm already there with SS and California pension at 38. Guess no need to invest anymore!
Retiring with $500k is easily doable especially for those who can distinguish between wants vs needs.
BLUF - live poor, have no debt, downsize everything, get a side hustle, have a spouse with Social Security as well and you're golden. 👍
I started early but made so little it still took 40 years to get to my $670K portfolio. I am mostly in income generating funds/stocks. it generates $75K per year. Way more than I can spend. I actually reinvest a good portion of it.
That’s awesome! Love hearing success stories from people who don’t earn a high income 😊
I have a relative living on social security alone and if he has 100K saved, I would be shocked. He's living fine. Many people live on social security alone with little saved and seemed to manage somehow. When you try and do this stuff on paper, it doesn't seem dooable but people get through life on much much less than what the experts suggest and without side hustles. Does anyone really think the average American even has 500K saved? I highly doubt it.
The answer is always, it depends. You can retire with $0 saved.
No, you can't
@@rickallen9099 Millions of people do it. won't be lavish but it can be done given the right circumstances.
You can if you have other streams of income yes. You don't necessarily have to be employed or working to have money coming in.
@@Michael-uf1hz Exactly! It all depends and a lot of people make it work with just SS. Some live with their children. Some move to a lower cost of living area. Some do side hustles (partial retirement). The answer is always it depends.
Maybe not retire but my biggest goal is to work part time someday while my investments do the heavy lifting.
Working part time is basically retirement imo, I only take issue with full time jobs because they take a toll on my lower back and overall well being…
@@painuchiha2694 what do you plan on doing as your retirement job?
*500k won't last long in the U.S.*
4% is roughly 20k annually.
but If you have an additional 20k coming from somewhere else... then it could work 🔥🔥🔥
_EDIT:_
_Seriously Doubt that Social Security will still be around/solvent in the next decade._
I dont think SSI will exist in 30 years unless the Goverment issues out UBI.
Social security isn’t going anywhere. Think about the people that vote politicians into office. Old people. Also insolvency just means 75% of benefits, not losing all benefits.
He's doing it wrong.
Put 500k in an individual investment account.
Borrow .5% a month. Your principal never depletes and counts towards compounding.
According to his rate of return, after 7 years you're getting .5% of 1M monthly (5k post 'tax' money) which is equal to roughly a 75k yearly income.
Simple stuff if you do enough research.
Need a paid off home to do this
@@FrugalTeacherFI You are correct. Inflation outpacing income growth is a bigger risk.
So what I'm hearing is if you want to live in a van down by the river, you'll be fine.
If you can find a parking spot, then yes. If not, there's always IN the river
This was an informative video.
Each case is different. I always find it interesting how videos assume that retired people want to travel. Sure, some do but it seems that travel is assumed to be a key thing retirees want to do. Often health limits the ability to comfortably travel. Also, many retired people simply want to relax and not deal with the rat race anymore. Again, everyone is different and thank you for the video.
@@glevando true, thanks for watching
Want 500K to be worth millions? Move to Cambodia.
@@beefpho FAX!
@@HughJass-313 you mean *FACTS* ?
Mexico, Colombia, Costa Rica, DR
We all know what men who retire to those countries are doing.
What are the women doing?
No. People who claim to retire on this have side hustles - and that’s not “retired”
Phased retirement or partial retirement can work for a lot of people.
When people go from 40 hours per week to zero it is often too abrupt. For those with the option to cut down to 15-25 hours it can work well, even if it is only 1/3 of full pay. Sometimes it makes sense to spend more time with family or helping one's own long-term health, if that person doesn't need full pay the next few years before completely retiring (if that is the goal, or becomes unavoidable).
@@donf4227 I completely agree
In thailand or vietnam all you need is 25k
Yes. As long as you don't have a cocaine habit.
Did he mention a 50% decline in the S&P 500? Another lost decade similar to 2000 and 2010 is always a possibility. Maybe this is where bonds and cash will hold you down ver until a market recovery.
House hacking doesn't eliminate your housing cost, it increases your income. Increasing your income will impact how much of your social security benefits is taxed.
Get paid in *CASH* 😂😅
The big risk is cuckooing - the older you are the more vulnerable to bad actors. You rent out a room and they take advantage, then take over. I wouldn't want to rent out a room for extra income after 60.
Investment is the way to go.
*500K* Is possible if you have a paid off home, paid off car, good health & manage unnecessary expenses! Using the 4% rule, your social security & any other CASH HUSTLE !!
Could put the 500K into a lifetime payout annuity.
What kind of lifestyles is everyone living? If my house is paid off i could probably just live off my ss. I know i will savings to afford a nursing home, but for my day to day expenses i dont need much
$500,000 would be a stretch! I would be concerned about inflation and health care costs, even with other income streams. SS delay to 70 years old is better.
@@aldaley3537
Many people will have "kicked the bucket" before 70.
And average lifespan of men will be "6ft under" before 79.
I'm taking my SS as soon as I can get it.
But I wish you luck ❤😁❤
Many people will have "kicked the bucket" before 70.
And average life'span of men is only 79.
I'm taking my SS as soon as I can get it.
But I wish you luck ❤😁❤
I'm still in min wage; lol i know i'm never going to retire
A lot of millionaires used to be minimum wage workers at one time.
@@bucknut9475 i'm sure lol but they have skills; probably a car; some sort of credit; etc. i got the lowest credit score and a bicycle with no special skills lol
Retirement income supposed to be like a stool. The legs are 401k, SS and investments. Please use all of them.
This totally depends on your lifestyle and where you live. Debt free in a low property tax area yes it’s possible. Safe withdrawal rate is 4% so 20k a year on 500k, and the average ss check is 1800 a month, you’re looking at 41k income all in all. If everything is paid off you can live on the 41k, assuming your spouse also has 500k invested and that same ss check it’s even easier at 82k. Housing just property tax a year 2k, food 8k, health insurance 2k, utilities 5k, car insurance 1k, gas 2k. So that’s only 20k a year on necessities. Totally doable and you have some left over 20k or to 40k with a spouse, to have fun with or cover miscellaneous expenses.
One category is missing: Bingo expenses. Make sure you have a bingo fund. Yes, I am old and play bingo.
Where you live is key. I live in California, where the cost of living is generally insane. $47k a year is poverty income in major California cities. But if you're willing to live in a flyover state that income can set you up reasonably nicely.
Property taxes are the real killer where I live in Cook County Illinois.
As always it depends. Live in a state like new york and even with everything paid off property tax and state tax on goods will eat a good portion of that money in the blink of an eye. Living in a modest home of 1200sqft on long island my property tax will be close $20k a year soon enough. Seems to go up a grand or so every year. Its time to leave here.
That's rough ! I'm in Cook County Illinois and I have a 719 square foot house built in 1906 and I'm paying about 9K and ever increasing ! I'm 64 and only have about 500K , I think I'll have to move back home to Ireland . It's not cheap there either but at least the property taxes aren't as crazy
@kwaichangcaine8234 Illinois is ranked right below NY for property tax. Moving to just about any other state would be cheaper.
Council tax is no joke either.
No
I would venture to say you could probably withdraw up to $40k annually or 8% with only a $500k portfolio and not run out of money. But you cannot retire early nor can you retire if your family is known for living an extraordinarily long time. That is to say, if you're retiring at 65, collecting social security, and expect to live only another 10 - 15 years, you'll probably be OK. But if you're 40 or 50 something hoping to leave the rat race now or 65 and your grandparents are still alive, forget about it.
0:30 The answer is already No
$500k cpp and oas no debt and a paid off house and investment s in a maxed out tfsa that's generational wealth😂
$500k gross ....
$450k after taxes ......
$425k adjusted for inflation (real inflation not the fake inflation fabricated by the FED) ........
Pretty low tax estimate.
@maness2112
Yeah, didn't want to get people upset that I am being to much of a pessimist.
If you're paying rent or mortgage in retirement, you've either retired too early, or you've been unfortunate in later life - in general you should aim to clear off your mortgage by retirement because it makes things so much easier. If you can't, downsizing should be seriously considered. Downsizing is also good to release equity in the house if that's your heaviest asset, although I wouldn't go as far as getting a tiny house!
US social security at retirement is pretty high, I can see this being reduced in the future as an easy to cut area of the budget in the name of government efficiency.
US retirement according to the end of this video seems to consist of not retiring but just working more. Joy.
I retired earlier this year at 56 after 33 years as an accountant. I still have my mortgage at 2.5% for the next 3 years. I did not retire too early nor am I in a financial pickle. I can earn significantly more than 2.5% by investing as opposed to paying off my mortgage which I have the funds to do. Personal finance is just that … personal. Financial advisors exist to customize strategies based on an individual’s personal circumstances.
Where did you get this from? I lived overseas for almost 14 years and rented and just came back to the US in 2018. I then rented until 2020 when I purchased a home. I am 65 and will be about 91 when it's paid off. The mortgage rate is 1.999%. I could pay the balance of about 350K off right now but choose not to because my investments make a lot more. You don't have to have a paid off house in retirement. It just depends on your circumstances.
@@Retired_Life_1 Exactly! I have a mortgage for the next 26 years LOL
these expense levels sound like retiring and staring at the wall. what kind of retirement is that?
No you cannot you need at least 2 million
It depends, blanket rules never work for everyone.
So basically $500,000 isn’t enough