The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.
Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.
Safe to say not everybody has the skill to pursue investing. But it's always easy to follow the advice of someone who knows how to i.e a financial advisor. You could anywhere between 10--40k with the right ones. Online businesses are a good bet too if you are savvy.
*Izella Annette Anderson* is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
Rule 8 indicates you don't need a high IQ to be a good investor, just 2 qualities, self discipline and a lot of patience. Investing is mostly about behavioral psychology. How can I generate more income to retire with at least $3m for long term care?
We share common goal, making sure you are ready for your later years is very important. That's why passive investing works, low costs, better diversification and it enables people to overcome their behavioural bias especially if they engage professional help.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $30k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
She goes by Vivian Jean Wilhelm a renowned figure in the financial industry with over two decades of experience. I'd suggest you research her further on the internet.
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either
Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!
That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!
Sophia Maurine Lanting is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
This is my fifth year after retirement. I’e been following the 4% rule thing I saw on a youTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.
Not a lot of people are able to save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
I’m closing in on retirement, too, and I have benefitted so much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who had been investing for many years.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I read this somewhere, not sure where. It doesn't help much, but it's true: You may have a lot of problems, but if you develop a health problem you only have one problem. Stay fit!
With no mortgage, no CC debt and a recently cash purchased home for $480K near Charlotte NC, $700K in IRA’s, $65K in emergency cash and $45K SS between the two of us, my wife (64) and I (67) are more than comfortable. The biggest key to a comfortable retirement is no debt i.e., no Sword of Damocles hanging over your head. We can both afford good health coverage (we are relatively healthy) and the sale of home (if even needed) along with SS and investments will cover long care costs. No world cruises or Dom Perignon every night in our future, however, a comfortable lifestyle with minimal worries is not bad. We accomplished this by myself, a retired MS teacher and my wife as a 20 year retired retail sales associate. We feel very blessed.
The Charlotte, NC area is a great place to live/retire. The economy is still quite diversified and thriving (let's keep it a secret). At 61, I have a few years more to work but like you have no debt and hope to keep it that way.
Congratulations! I lived in Charlotte for seven years. It's a great city and in a wonderful position to visit both the mountains and ocean in a day. I miss Calvary church so much! Such a wonderful community outreach, and the Waldhorn and RiRa's!!
Something to consider would be to get a HELOC on your home. The one I have for my credit Union costs me nothing unless I use it but I have the comfort of knowing I can put my hand on a pretty sizable chunk of cash if I ever need to and literally a moment. You know, bail money...LOL But more seriously the HELOC allows me to get a large amount of cash without tapping the IRA and incurring taxable withdrawals. And when I have done this sometimes I have taken a withdrawal in December and another in January to spread the tax burden around. Today I'm into RMDs I don't need that money so I just reinvest it.
As a quick check, $5M at 4% is “only” $200k, not the $350k/yr Azul says they budget. I’d be looking for more like 9M to spend at that level…and that’s assuming it’s 350k before taxes.
If you only had $1M and spent like the $1M guy, you'd also go broke, and quick. The first thing he has them do is pull $75K to renovate their house - that's simply reckless. Then he has them going to Europe every year, contributing to their grandkids education, paying their medical bills, and finally leave $500K to the kids. This is just utter fantasy.
Retirement becomes truly fulfilling when you possess two essential elements: ample financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.
Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.
You are completely right, Advisors have information and paths that are not disclosed to the public.. I profited $560k in 2022 under the tutelage of my Fiduciary-counselor. Am I selling? Absolutely not.. I am going to sit back and observe how this all plays out.
I've been thinking about going that route. I have a lot of stocks that I have maintained, but they are beginning to lose value, so I'm not sure if I should hold onto them or sell them. I feel hiring your investment coach would make it easier to restructure my portfolio.
We will be retiring in 7 years with about 2M in retirement accounts, each with a pension and about 4-5k/mo in rental income. We’re looking forward to doing some traveling and diving into our hobbies. Thanks for this video!
I'm loving my retirement so far! My wife and I worked hard to reach this point - we're both retired, debt-free, and fortunate to have over $3 million in net worth. We achieved this through a saving and investing lifestyle in the stock market, which now generates weekly income for us. And now, we get to enjoy the fruits of our labor! We're traveling, golfing, and spending quality time with the grandkids. We feel grateful to be living smart and frugal, making the most of our golden years.
Absolutely! I'm in the same boat. I just got back from a road trip across the country. It's amazing how much energy and freedom we have now. Make the most of it, because it won't last forever!
I hit $3 million in my late 40’s and hope to reach a $5-6 million net worth by age 65. Most of my friends retired at age 50 with $5-10 million net worth. I am far behind my peers and am working harder than ever to catch up!
I'm a young dad and I'm really glad to hear your story - it inspires me! I'm still working, but I'm counting down the days until I can enjoy retirement Years. Can you please share your tips? What's the key to achieving this milestone and making the most of your retirement years? Any tips would be greatly appreciated!
There’s a lot of investing options (real estate,airbnb,stocks,cr.ypto,ETFs) my best advice? Find an expert who can help grow your funds , Create a personalized plan and better prepare you for a successful retirement.
The continuously changing economic conditions in our society have made it necessary for people to find additional sources of income, thus I am looking at the stock market to fuel my retirement goal of $2m, my only concern is the recent market crash.
Agreed, despite my rookie knowledge of investing, I have a financial advisor who did the trick in a bit more than 6 months after a lump sum capital of $500k, and I've so far made a fortune. I'm now buying real estates, gold and silver as advised by my FA.
Thanks for the info. I searched for her full name and found her website right away. I reviewed her credentials and did my research before reaching out to her.
Azul, I enjoy watching your content, but you MUST do something about the scammers in the chat. Attention viewers..... Be careful when you see people naming financial advisors.... IGNORE them!🙄 It's a scam!
I plan to retire or reduce my work hours in five years, and I'm interested in how others allocate their income between savings, spending, and investments. I currently earn about $175K annually but haven't built up much in savings so far.
There are numerous strategies to achieve high yields during a financial crisis, but it is crucial to undertake such trades with the guidance and supervision of a professional financial advisor to ensure informed decision-making and risk management.
That's true. I've been assisted by a financial advisor for almost a year now. I started with less than $200K, and I'm just $19,000 short of half a million in profit.
Julianne Iwersen Niemann is the coach that guides, you probably might've come across her before I found her through a Newsweek report, she's quite known in her field, look-her up.
Thank you so much! This is exactly what I needed right now. I wrote her an email and am waiting for her reply. Hopefully, she responds soon. I plan to start the year on a strong financial note.
I just retired. We have about 700K in investments, no debt, just bought a 330K, 2200 sq ft house in central Florida with cash. We have a nice Class A RVs for trips, I have a 6 year old Tesla, and my wife has a18 year old Infiniti, and bring in 65K a year from various income sources. without touching our investments. I'll get SS in 3.5 years, which should boost our income to 110K a year. We also have gold-plated health insurance since my wife retired from working for the state of Taxifornia. The plan is to let our investments grow. We are simple people who don't care about fancy clothes or cars. We do eat out every other day, but keep it below $50. I think we will be OK.
@@dans4900 The principle goes wherever you want, kids, church, charity. BUT, and this is a full-rounded but. You don't know when you are going to die. It's better to have your money out-live you, than out-live your money. My dad is 91 and still going strong, so I come from sturdy stock, and I've never smoked and rarely drink. You also don't know how much more damage Kamala is going to do to the economy once she gets intalled.
My first job from age 20 to 28 started at $10k/yr maxed out at about $32k/yr. When I left that job I had $50k in the 401k. Even if I never saved another dime I would have $500k now...but I did continue to save and continued to increase my savings rate. Retired at 55 this year with around $3 million in retirement investments (my wife has another $2 million). Stop complaining and start doing, it's not difficult but it seems to be very hard for most people.
Very thoughtful video. We are in Canada, emigrated here 17 years ago with pretty much nothing, worked hard and we were actually only able to save $$ after the kids got out of college. Which is now 10 years ago. So here it comes: paid off the house within 7 years, bought 2 more houses (rental) they will be paid off within 5 or 6 years, probably will buy some more. No big fancy income, just no pointless debt, we're currently travelling Japan. There is so much possible, we're actually surprised. This is only to encourage people, not to brag.
People grappling with the difficulty of meeting essential expenses often encounter this situation due to inadequate savings during their working years. The decisions taken in readiness for retirement carry extensive consequences, as demonstrated within my own family dynamics. Differing investment approaches yielded disparate results. Guided by a financial advisor, I'm currently retired.
Indeed, that's accurate. I'm currently in my mid-50s. My wife and I were on a similar path until a couple of years ago when I decided to shift my investments to her wealth manager. While I haven't quite caught up to her accumulated profits over the years, I'm at least earning more now. I'm generating income even before retirement, and my retirement fund has experienced remarkable growth compared to what it would have with just the 401(k). It's quite amusing.
Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. Perhaps you should consider a similar approach.
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I just looked her up on the internet and found her webpage with her credentials. I wrote her an outlining my financial objectives and planned a call with her.
People are facing a tough retirement. and it's even harder for workers to save due to low-paying jobs, inflation, and high rents. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire in.
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.
Agreed, my portfolio is well-matched for every market season yielding 85% from early last year to date. I and my CFP are working on a 7 figure ballpark goal, tho this could take another year. IMO, financial advisors are the most sought-after professionals after doctors.
How can I participate in this? I aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
I work with Jessica Lee Horst as my fiduciary advisor. Simply look up the name. You would discover the information you needed to schedule an appointment.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
I thought this was realistic until he got to the $5 million level. It’s really not that much, and he’s describing someone with at least $10 million, not $5 million. Someone with $5 million generally has $150,000 a year to spend, at most, if they are delaying social security. Where does he get $350,000? That’s withdrawing 7% a year.
If you have 5 million in realnestate equity, that tied up capital pays 7, 8, 10% $350k is very possible meanwhile the leveraged property continues to appreciate. At some point they can roll that into a Deferred Sales Trust and draw that down with accompanying tax payments.
I am 62 and my wife is 60. Our house has been remodeled and completely debt free for 10 years or so. We paid for both of our children’s public college education. We drive our cars into the ground. We don’t go out to eat very often and our vacations have been domestic and usually involve staying with family. We both work, but neither of us is in management. Our lives sound more like Allen, but our net worth is in Rick’s category. I plan to retire in 2025. I might be able to afford a Rick lifestyle, but the Allen lifestyle is also a good life. We all have different approaches to accumulating wealth, but I believe my wife and I have continued to live a modest lifestyle after we could afford to live more extravagantly, and we invested wisely, and that worked for us.
Great video! I really have a question. For someone with less than $5,000 to invest, how would you recommend we enter the crypto market? I am looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. What's your take on this approach?
My advice: for newbies to grow financially this year, invest. Saving is good, but investing elevates your finances. Why newbie make huge losses on trade is because investing without proper guidance can lead to mistakes and losses. that will stop you from trading, this has been one of the biggest problem to new traders, I've learned this from my own experience.
I agreed, investing without proper guidance can lead to mistakes and losses. last year. I did so many mistakes but also learned so much from it, If you're new to investing or don't have much time, it's best to get advice from an expert.
As a beginner, it's essential for you to have a mentor to keep you accountable. Myself, I'm guided by Daniel Adams Bailey. for years and highly recommend him I focus on him. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
Retired at 59, and I fall between 2 and 3 scenarios.... I could have been in the highest if I had worked a few more years, but time was way more important than a few extra bucks. We are comfortable but not crazy and loving our retirement while we are young enough and can do everything we want to do and still leave a nice inheritance to our family.
Nice perspective. I'm about 8 months from retiring. I AM READY- at least I am ready to quit working and have been for a while. I will be 66. I have been listening to your videos for a year or two now and really appreciate what you do for us. Thank you.
Hello from Denmark, I love watching Azul’s videos even if the American Way is not the same as in Denmark. He come’s up with great exampels of People’s lifes in retirement and these are just exampels. Maybe the geography doesn’t fit perfect, but everyone get’s the picture, right😉 Thanks for all the great videos! I’ll see you in there🇩🇰
Great comments. My stress should be zero. My stress is still 9.9 Left handed, Virgo, accounting systems consultant, no heirs.. I suppose the answer is just get near big water and buy a sailboat.
Like always, great video. I am 50 now and plan to retire at 55 with about $1.3 million. I also plan to leave the USA and move to a lower cost country. First, I am looking to move to a country where food is fresh, not the TV dinner we eat here. Even if you are eating salads, the vegetables have 50 different chemicals added to them. Second, medical cost is crazy here in the US. Living in a lower cost country will allow me to slow travel to different countries and actually enjoy retirement.
I retired at 61 with $3M and a home that’s worth $1.5M in a Scottsdale, AZ. In 1982 I moved from Liverpool England to Chicago with $600 in my pocket and have worked three jobs in my younger days to make ends meet. Lots of character moments you might say. I always say to my sons that hard working people are lucky people so always love what you do and make it where there’s always something to get you up every morning. All three are now out of college with jobs that they enjoy and my middle son owns his own company and doing well. I often told my parents as they got older in life “ thanks for making me safe in life” understanding that’s the best gift you can give your children and to expand their horizons through travel and experiences that make any individual more self sufficient…..
I disagree with the prospects of the $5 million couple. In coastal Southern California $5 million is not wealthy. If they move to Newport Beach, they will experience a big drop in lifestyle. I do not think they will fit in with the yacht club set.
I agree. The description has the couple hemorrhaging money on multiple luxuries. However, if they cut out a couple of them, it would be feasible (I ignore the Newport Beach topic...too many questions come up).
Rick is planning to spend $350k on a $5m portfolio? His rental properties better provide some solid income as that’s 7% withdrawal rate before SS kicks in.
What matters most is how much you need to spend to live the life you want. This will dictate how much you need. Don't fixate on the big numbers - forest for the trees.
I'm not sure that a person's stress level is closely tied to their net worth. Some people have little but have little stress, and other people have a fortune but are not happy and always worried about something else or envious of something more. "All things being equal," more money is better than less. But things are never equal.
I have close to 5 million in liquid assets in retirement. I would never buy a new car every 2-3 years. I would not take7-8 vacations as year. A second hone is a headache I do not want. Glad I live in the Bay Area . There are so many things to do that I don't feel the need to travel all the time To ne, travel is work even if you fly first class. I plan to leave my 3 children a million dollars tax free but mire importantly my luat of contacts full of people that can help them along the way.I am 66 and the most important thing to me is legacy and being able to develop and maintain real generational weslth.
@@jonfloyd1494 what’s your definition of liquid assets? I don’t think create generational wealth is as important as empowering your children with skills to support them selves. I paid for my kids educations thru 529 accounts. (BAs, graduate schools ). I intent to help them with down payments when their are ready to put roots down. By the way; I am also in the Bay Area
Jonfloyd, I have around $3.5mm living in the NY Metroarea at age 45 years young. I don’t fly first class, nor i buy fancy car nor take 5-7 vacation. I live in a nice suburb home, 40 minutes train ride to Manhattan. I work full time and hardly can afford a vacation. Once a year we’ll goto Hawaii. I fly using credit card points. I still drive a 20 year old car but I spend over $1.3mm on a home. Liquid networth is 10%, invested in stock and crypto. Most of my capital is invested in rental properties (70%). My job doesn’t bring me joy, feel like just grinding it to pay for daily expense. My networth grows about $1mm every 3 years. Looking to achieve $10mm networth by 60 years old. Most $5m and $15mm networth people I know are fragual and owes his owe business or massive real estate rentals.
Officially (just under) $12M puts you into 1% of the wealthy. That number includes your primary residence. $5M net total worth sounds reasonable to be in the top 3%. Most stats only show top 1%, 5%, 10%... Of course, there always people who got wealthy in other countries and fly under the IRS radar.
@@vchap01it is interesting that the percentiles for population wealth includes home equity in the calculation. You can't see your home equity to pay bills unless you want to start playing the spend it down lifestyle gaming coupled with prediction of your future time of death and medical expenses that will arise getting there.
I’m 55 from southeastern Ohio but worked overseas all my life. I have savings of $1,000,000 and I'm ready for retirement, only concerned about the soaring inflation. Is this enough to retire comfortably, or do I need some sort of money management?
I would get money management just in case. You’re only 55. I think the average life execting in the US is 77.5 years, but many people live well into their 80s so that $1 million has to last you all of that and the unforeseen. $1m is a great start though. Good for you!
I’m quite lucky exposed to personal finance at early age, started job 19, purchased first home 28. Going forward, got laid-off at 45 just after covid-outbreak, and at once hired an advisor with grit to help stay afloat. As of today, my portfolio has yielded over 300%, summing up $836k. Stay motivated friends
350k is 7% of his portfolio. Even 250k a year would be luxurious but 5%. I suspect he still has a lot of debt payments, and a chef. His lifestyle is at least $8m in investments. Inflation might bite on a 7% withdrawal rate.
No you can spend more on good years You can spend down to 3 or 4 million and a couple good years your back. Believe me I know. The Newport Beach house is a mistake
Planning ahead can really make a big difference, especially when it comes to minimizing taxes. I’ve been exploring the crypto and stock markets for about six months now, and it’s been a game changer for me. I decided to reinvest my RMD strategically, and that decision has really paid off-I’m now pulling in around $25k a week with very little trading on my end. It’s been a great way to create a cushion and relieve a lot of financial stress. Best of luck with your RMD decisions-I hope you find the same peace of mind!
I am a Nurse and have been investing for a few years. I have reached a point where I could benefit from financial advice to improve my $200,000 portfolio for retirement, how do I maximize my ROI?
You didn't provide detailed information about your portfolio makeup. However, I recommend seeking guidance from a financial advisor for a well-informed portfolio restructuring.
Opting for an inves-tment advisr 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 85% since 2023
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
Moneys a funny thing. My wife and I, 62, perfect health , BH. I recently told her we were millionaires years ago , she almost fainted. Life’s been real good. Plan for the best but I’m in the medical profession not a doc. Can’t tell u how many mid sixties folks stroke out , heart attack and worst cancer or diabetes and the life is very bitter. Moneys helps get stuff , service , fresh quality foods etc but a hha will eat your money overnight. Really take care of your health, it costs too much being sick. Watch blood pressure and weight carefully. Stop eating too much. Sleep well and exercise vigorously four days a week. We’ve all worked so hard to save and we’re all afraid to spend it. If you’ve got 3 million cash you’re in a great spot . Enjoy the ride .
A lot of very wealthy people have a mortgage and use that debt instead of tying up cash. For example, Facebook CEO Mark Zukerberg has a multi-million-dollar mortgage. That frees up cash to invest and grow. That is much more financially advantageous than tying up that money in a house where he can only get the money out by selling.
Planning to retire in 2 years at age 45. Income producing assets paying ~180k annually. Other investments as well. Plan to die with $0. Cannot wait to continue to travel the world. Life is good.
How do people manage, manage in retirement since 401ks are nothing to write home about? My 800k turned to 250k in no time. I'm 54, will I work till God calls me?I
I worked until 62, I was at the top of my income game, liked my work, and we could both go on Medicare. I ALMOST fell into the “only one more year” trap.
Finances: 35% in 5.25% secure, 40% stocks, 5% cash, 10% gold/silver, 5% Series I Savings Bonds, 5% “play” stocks (TSLA, HD, CCL). Key: NO debt. I don’t need my RMDs, thus, take as QCDs. This is a unique portfolio as apportioned by my fa
Glen Howard chester ’ , is a renowned figure in his line of work. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I suppose it depends on the person. And having $5 M does not necessarily mean spending big money. And in the Bay Area tech jobs, often a lot of that money is tied up in future stock and other investments.
@@Jimmyjackfunk433 I don’t need to move. I’m more than comfortable here. It’s the younger generations I’m worried about. It’s not a healthy environment to raise a family or for long term stability of the region.
Your spending lifestyle matters more than how much money you retire with. Unless the $5M guy have enough rental properties to supplement his withdrawals/SS, that $350K a year is not sustainable with just $5M.
To be honest, I don’t know if Rick and wife have enough to buy a property in Newport Beach. A house on the beach will cost between 2-3 M. Their life style is too extravagant….they have a long wish list, better be careful.
Well 5M liquid with paid for everything means they can easily take out $200k a year from it if they want to leave a lot for their kids. Some years they may be able to take $300k+. They also get $80k in social security. I don’t know I think with a quarter million bucks a year with no payments in the world you can do a lot. With that said, getting a yacht if you are not into it much is not realistic at $5M. Maybe yacht are cheaper to buy and maintain than I think but for that specific example I agree with you more
Thanks for the video. When you say so-and-so has 500k or 1 million, is that the individual or the household? This is important as most middle-class couples are dual income earners.
What I find amazing is how much emphasis is put on financial health over physical health. Folks, regardless of the bank account, if you're not working out 4-5 days a week, watching your diet and nutrition, it won't matter what you'll have in your retirement because #1 - You won't get a chance to live a high quality of life in retirement and #2 - Either you'll die shortly after retirement or you'll have so many health issues, you'll be unable to live out your life like you want. Every article and TH-cam post about retirement seems to have this myopic view that retirement satisfaction is based entirely on financial health. The unfortunate truth is if you haven't built the habit of diet, nutrition and exercise by the time you retire, you may have waited too long to make a difference. Diet and exercise are habits that people need to build in their 50s , at the latest.
If I save 60k a year and just park it in some mindless mutual fund that average out 8% a year. I should be a millionaire in 11-12 years. Is my calculation correct?
$5MM is not in the top 1% of anything......the top 1% in America, in 2023 starts around $13.6MM......the picture of the guy flying in a private jet with $5MM is laughable.
@@jgreen6139well I’m worth a bit more, but not much. I have a paid home worth 600k, drives an Audi Q7. I’m retired living on passive income. Lives in Canada for 6 months and spend the other 6 months abroad living like a king. Can’t complain 🤷🏿♂️.
Zero difference. As long as you have no debt. 🤓 Cottage, Porsche, condo in the south, multiple revenue streams. Zero worries. Do what I want. Life is great! 😊
Most people don’t realise it, but the secret to retiring comfortably is finding a way to make returns while your money works for you. My dad, as I remember, started saving for retirement quite late, but I know he was making more than 10k returns from his investment monthly and it was completely passive.
Haha. Investing enthusiast? Not really. Our family got introduced to a financial advisor about four years before my dad retired. That was what changed things. I've been using the same now and I think my retirement income would be on the right track.
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thank you for this tip. It was easy to find your coach on web. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
All these retirement people always talk about high healthcare costs. I live in California in an expensive area and my cost is $70 per month besides what SS pays with max out of pocket for things not covered is around $6,000. Now if you need assisted living, that is expensive. I live in a manufactured home on a very large lot in a park and yearly expenses are around $12,000 all in (including all services). So we can live on only $25,000 a year if we wanted to, proudly much less. I also don't understand the 4% rule as I have been retired for 20 years and only tapped into savings to buy my house for cash as my money was all tied up in a 1st deed note which was paying us way more than 4%.We have always lived on the income from investments, if you spend your investment principle you will eventually run out of money.
An enjoyable video and comparison. I honestly like Alan’s lifestyle the best, although a bit more peace of mind is always nice. Silver Sneakers health club memberships should be free for most people on Medicare. Also, it seems awfully wasteful what the two more well off couples were spending on cars; there’s no need for that.
Interesting. I have savings like the $500k person, but live like the $5M person. But, I don't own a house. live out of my car, and traveling the world, taking cruises. Currently traveling in Europe for the next 6 weeks. It's not how much you have, but how much you spend. Lifestyle matters.
Ha. I’m 53 and have $5M in retirement accts, a pension and healthcare for life and feel I can’t retire. I also don’t consider myself upper class, more like upper middle class.
@mjr7991 5 millions is plenty of money in retirement account. I personally have a friend who retired on a million dollar portfolio in his early 50s. He is doing good with a paid off home and car,which helps out a whole lot.
If you have a pension and lifetime healthcare coverage then i'd expect that number makes you feel only upper middle class due to where you live, what you live in, what you drive, how you travel, inability to control spending of partner, kids and/or grandkids that you help out.
I am 27 and i just started my ROTH IRA and deposited the max for 2024! I feel stupid for how long it took to get my life straight. The problem here is, what is the best way to invest the money to grow for retirement?
I believe every Investor should start with ETFs for a solid foundation, then diversify across asset classes and maintain disciplined, regular investing to minimize risks and maximize growth.
Your young so put it all in stocks. Stay away from funds with sales loads, expense ratio's over 2% and other senseless management feels. My brother thought he was saving for retirement but after checking on his account after 10 years he had earned .04% while I was up 23% annually over the same period so pay attention to what you buy into and don't be afraid to move it if it's not performing. Good job for getting started! I enjoyed Tony Robbins book "Money master the game" recently and would recommend that.
When talking abut net worth, I wish videos such as this made clear if they are talking about the assets accumulated by one person individually or per couple. For example, hypothetically, when you say person A has $1,000,000 saved for retirement, are you talking about just person A or a married couple (persona A and B) who co-mingles their assets. So if you present a scenario of what life is like with assets of $1,000,000, if we are planning for retirement for me and my wife, do we need to double that to $2,000,000? So many of these videos don't make it clear if they are talking about single people or married couples.
PSA some of the people commenting you are using your names as your user name. You are also telling everyone all of your assets and personal situations. It would not be hard to track down more personal information. You are opening yourself up for being scammed. Scammed out of that hard earned money. Keep yourself safe.
I do enjoy your blog and have a question. When you say retire with X, are you talking about money in the bank plus income from SS and retirement accounts or net worth, e.g. stock, cash and property?
Nice video and good comments. The $5m family I’d assume would be quite stressed given both property values and property taxes to buy into Newport Beach, and if considered CA residents paying 13.3% on their state income (curious how many people in Newport have a primary residence there). In any event, living simply as you can even with $5m is best… we are in the process of shifting to Mexico. Would love to have the financial take on that from Azul.
I do not get it - we have #3.000.000 net worth, cannot justify even what the $1million family - we eat out maybe once a month, take maybe a two week vacation a year. We help our grand kids with education at private schools. I have little worries except what may happen the next couple of years due to governmental malfunctions.
You nailed this one…i am closest to Rick number wise (but still short of the 5 m in investable assets)…but don’t feel financially comfortable at all- i relate to Allen the most and feel more like him-it may be irrational but i don’t think so…i live simply and below my means and that got me to this spot and won’t be changing at this stage of the game
Between 1M and 5M is a huge gap, where would you put the line upon which will start feeling similar to 5M than 1? (2.5 sounds not right: somehow I feel the perception of wealth is not linear...) Very nice work, gentle, rooted and sober in it's assumptions.
250k is plenty as long as (1) you have cash flow that exceeds your obligations and (2) you live on a boat where your expenses are extremely low, relatively speaking or (3) you live in a rural area and grow a lot of your own food. We retired at 55 and moved onto our sailboat. That was 13 years ago and we have no plans to move back on land.
I know this isn't the point, but Alan not wanting to spend $30 on a gym membership while sweating healthcare costs is exactly what is wrong with American thinking.
Or worse thinking that gym membership solves health problems when its what you put in your mouth that is 80% of the deciding factor with activity [ / exercise ], quality sleep and social support system making up the remainder.
Mike’s lifestyle seems a little unrealistic for 1MM. 4% rule is 40k plus social security maybe another 40k. That doesn’t pay for too much these days. Almost sounds like there’s a teachers pension in the background
I retired early 3 years ago. Currently I do have over 7 figures in retirement savings but I don’t plan to use it until 70 (I plan to gradually moving it from various mutual funds to stable income). I live in my monthly pension (less than 40k a year before tax). My living expense is roughly $25k to $30k a year (one or two big travels). I save leftover for future car purchase and home improvement. My have company provided healthcare that will be supplemental after MediCare kicks in. I have no consumer debt, loans, or car payments. I have to watch my spending but it’s not hard because I don’t have overspending or mindless spending issue. I am single no kids and live in SoCal. I think I am doing ok.
Sadly, 5 million in Newport Beach feels poor unless that house is paid off when house there are several million. How do you feel comfortable when in the last 4 years we witnessed 21% inflation. When you are telling people they have 5 million, is that liquid? Or does that also include real estate value? If you live in a high cost area, tons of ones net worth can be locked in a home. 3 million dollar home and 2 million in investments?
Good video and story patiently told. Healthcare costs overwhelm everybody at all income levels. It’s something one has little control over even if you have a healthy lifestyle.
Please do a video on how retirees with +$3M manage RE purchases in retirement. I’d be interested in hearing how you advise “Rick” how to structure his Newport Beach home since most homes in that area are $2M and up.
Honestly, 1 million is not easy street. Especially when you have to help out extended family and kids. Personal trainers can actually hurt you as well - torn ligaments, hiatal hernia, etc. I've seen it. We fall in between the second and third case, but I will never feel it's ok to spend 5k on a first class flight (use your points instead).
This is my fifth year after retirement. I’e been following the 4% rule thing I saw on a youTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.
Not a lot of people are able to save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
I’m closing in on retirement, too, and I have benefitted so much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who had been investing for many years.
'Annette Christine Conte, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thanks for the video. I feel the scenarios are a bit optimistic, especially the last couple with $5M. It seems they will run out pretty quickly, with two new luxury cars every couple of years, expensive vacations, $1M into a vacation home, joining a country club. I would have guessed that lifestyle would require at least $10M to be sustainable in the long run.
Thanks for the vid. Please, HOW is Allen withdrawing from the 401k? 0:52 Is he just taking just interest? Probably not. At what rate is he withdrawing. 2:00 so he doesn’t have a mortgage? Is he broke at 75 years old since you stated he cant afford to give to his kids or grandchildren. Thank you so much!
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The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.
Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.
Safe to say not everybody has the skill to pursue investing. But it's always easy to follow the advice of someone who knows how to i.e a financial advisor. You could anywhere between 10--40k with the right ones. Online businesses are a good bet too if you are savvy.
@@ThomasChai05Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.
*Izella Annette Anderson* is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
Rule 8 indicates you don't need a high IQ to be a good investor, just 2 qualities, self discipline and a lot of patience. Investing is mostly about behavioral psychology. How can I generate more income to retire with at least $3m for long term care?
We share common goal, making sure you are ready for your later years is very important. That's why passive investing works, low costs, better diversification and it enables people to overcome their behavioural bias especially if they engage professional help.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $30k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
I've been looking to get one, but have been kind of relaxed about it. Could you recommend your advis0r? I'll be happy to use some help
She goes by Vivian Jean Wilhelm a renowned figure in the financial industry with over two decades of experience. I'd suggest you research her further on the internet.
Wow, her track record looks really good from what I found online. I'll take a chance and see how it goes. Thanks for the info
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either
Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!
That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!
Mind if I ask you to recommend this particular coach you using their service?
Sophia Maurine Lanting is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
I just googled her now and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.
This is my fifth year after retirement. I’e been following the 4% rule thing I saw on a youTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.
Not a lot of people are able to save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
I’m closing in on retirement, too, and I have benefitted so much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who had been investing for many years.
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
I read this somewhere, not sure where. It doesn't help much, but it's true: You may have a lot of problems, but if you develop a health problem you only have one problem. Stay fit!
I can tell you from experience those words are true
Confucius! A healthy man wants a thousand things; a sick man wants only one.
The more dramatic way to say it is: “A healthy man has many wishes; a sick man only one”
@@james1000 - I haven't heard this one before, but I really like it.
@@james1000 thats a quote from the Dalai Lama
With no mortgage, no CC debt and a recently cash purchased home for $480K near Charlotte NC, $700K in IRA’s, $65K in emergency cash and $45K SS between the two of us, my wife (64) and I (67) are more than comfortable. The biggest key to a comfortable retirement is no debt i.e., no Sword of Damocles hanging over your head. We can both afford good health coverage (we are relatively healthy) and the sale of home (if even needed) along with SS and investments will cover long care costs. No world cruises or Dom Perignon every night in our future, however, a comfortable lifestyle with minimal worries is not bad. We accomplished this by myself, a retired MS teacher and my wife as a 20 year retired retail sales associate. We feel very blessed.
Congratulations! You’ve done very well! Enjoy your retirement.
The Charlotte, NC area is a great place to live/retire. The economy is still quite diversified and thriving (let's keep it a secret). At 61, I have a few years more to work but like you have no debt and hope to keep it that way.
Congratulations! I lived in Charlotte for seven years. It's a great city and in a wonderful position to visit both the mountains and ocean in a day. I miss Calvary church so much! Such a wonderful community outreach, and the Waldhorn and RiRa's!!
No divorce and good health.......Very good ingredients for a successful retirement.😊
Something to consider would be to get a HELOC on your home. The one I have for my credit Union costs me nothing unless I use it but I have the comfort of knowing I can put my hand on a pretty sizable chunk of cash if I ever need to and literally a moment. You know, bail money...LOL
But more seriously the HELOC allows me to get a large amount of cash without tapping the IRA and incurring taxable withdrawals. And when I have done this sometimes I have taken a withdrawal in December and another in January to spread the tax burden around. Today I'm into RMDs I don't need that money so I just reinvest it.
No way. I have 5 mil and live like Azul’s 1 mil guy. If I spent like Azul’s last example, I’d go broke.
Correct, the last example is way off, Azul.
Yup
As a quick check, $5M at 4% is “only” $200k, not the $350k/yr Azul says they budget. I’d be looking for more like 9M to spend at that level…and that’s assuming it’s 350k before taxes.
If you only had $1M and spent like the $1M guy, you'd also go broke, and quick. The first thing he has them do is pull $75K to renovate their house - that's simply reckless. Then he has them going to Europe every year, contributing to their grandkids education, paying their medical bills, and finally leave $500K to the kids.
This is just utter fantasy.
I am in the same situation, with 5 million, and we live like a 1 millionaire. I am 67, will work to 70, and will collect SS at 70.
Retirement becomes truly fulfilling when you possess two essential elements: ample financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.
Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.
You are completely right, Advisors have information and paths that are not disclosed to the public.. I profited $560k in 2022 under the tutelage of my Fiduciary-counselor. Am I selling? Absolutely not.. I am going to sit back and observe how this all plays out.
I've been thinking about going that route. I have a lot of stocks that I have maintained, but they are beginning to lose value, so I'm not sure if I should hold onto them or sell them. I feel hiring your investment coach would make it easier to restructure my portfolio.
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
We will be retiring in 7 years with about 2M in retirement accounts, each with a pension and about 4-5k/mo in rental income. We’re looking forward to doing some traveling and diving into our hobbies. Thanks for this video!
‘Die with zero’ is an excellent book
Why wait 7-years? For the pensions to kick in?
@@CrabbyE8 looks like mostly invested in accounts only accessible after 7 years. Rental income maybe much lower than that right now too
@@NoRegertsHereYes on both. We’re 50 and pensions will start at 57 and we have 6 rentals that will be paid in full in about 4 years.
I'm loving my retirement so far! My wife and I worked hard to reach this point - we're both retired, debt-free, and fortunate to have over $3 million in net worth. We achieved this through a saving and investing lifestyle in the stock market, which now generates weekly income for us. And now, we get to enjoy the fruits of our labor! We're traveling, golfing, and spending quality time with the grandkids. We feel grateful to be living smart and frugal, making the most of our golden years.
Absolutely! I'm in the same boat. I just got back from a road trip across the country. It's amazing how much energy and freedom we have now. Make the most of it, because it won't last forever!
I hit $3 million in my late 40’s and hope to reach a $5-6 million net worth by age 65. Most of my friends retired at age 50 with $5-10 million net worth. I am far behind my peers and am working harder than ever to catch up!
I'm a young dad and I'm really glad to hear your story - it inspires me! I'm still working, but I'm counting down the days until I can enjoy retirement Years. Can you please share your tips? What's the key to achieving this milestone and making the most of your retirement years? Any tips would be greatly appreciated!
There’s a lot of investing options (real estate,airbnb,stocks,cr.ypto,ETFs) my best advice? Find an expert who can help grow your funds , Create a personalized plan and better prepare you for a successful retirement.
Thanks for the tip! Can you point me in the direction of a trusted expert who can help me make the most of my investments?
The continuously changing economic conditions in our society have made it necessary for people to find additional sources of income, thus I am looking at the stock market to fuel my retirement goal of $2m, my only concern is the recent market crash.
for majority, the solution to their problem can be found in specialized knowledge, so you can as well seek guidance from a well experienced advisor
Agreed, despite my rookie knowledge of investing, I have a financial advisor who did the trick in a bit more than 6 months after a lump sum capital of $500k, and I've so far made a fortune. I'm now buying real estates, gold and silver as advised by my FA.
Can you share details of your advisor? I want to invest my increased cash flow in stocks and alternative assets to achieve my financial goals.
Monica Shawn Marti is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thanks for the info. I searched for her full name and found her website right away. I reviewed her credentials and did my research before reaching out to her.
Azul, I enjoy watching your content, but you MUST do something about the scammers in the chat. Attention viewers..... Be careful when you see people naming financial advisors.... IGNORE them!🙄 It's a scam!
I noticed them as well. They've been around for quite some time. IGNORE them!!!
I plan to retire or reduce my work hours in five years, and I'm interested in how others allocate their income between savings, spending, and investments. I currently earn about $175K annually but haven't built up much in savings so far.
There are numerous strategies to achieve high yields during a financial crisis, but it is crucial to undertake such trades with the guidance and supervision of a professional financial advisor to ensure informed decision-making and risk management.
That's true. I've been assisted by a financial advisor for almost a year now. I started with less than $200K, and I'm just $19,000 short of half a million in profit.
That's quite impressive! Can you share more information about your financial advisor?
Julianne Iwersen Niemann is the coach that guides, you probably might've come across her before I found her through a Newsweek report, she's quite known in her field, look-her up.
Thank you so much! This is exactly what I needed right now. I wrote her an email and am waiting for her reply. Hopefully, she responds soon. I plan to start the year on a strong financial note.
I just retired. We have about 700K in investments, no debt, just bought a 330K, 2200 sq ft house in central Florida with cash. We have a nice Class A RVs for trips, I have a 6 year old Tesla, and my wife has a18 year old Infiniti, and bring in 65K a year from various income sources. without touching our investments. I'll get SS in 3.5 years, which should boost our income to 110K a year. We also have gold-plated health insurance since my wife retired from working for the state of Taxifornia.
The plan is to let our investments grow. We are simple people who don't care about fancy clothes or cars. We do eat out every other day, but keep it below $50.
I think we will be OK.
Very nice 👍🏼
I'm just about there. My question is, when you die, where does the principle go? Why not spend it down.
@@dans4900 The principle goes wherever you want, kids, church, charity. BUT, and this is a full-rounded but. You don't know when you are going to die. It's better to have your money out-live you, than out-live your money. My dad is 91 and still going strong, so I come from sturdy stock, and I've never smoked and rarely drink.
You also don't know how much more damage Kamala is going to do to the economy once she gets intalled.
Same here. I have several income sources and don't need my investments at this point. I am planning to leave some to the kids. 🙂
Taxifornia... LoL
Allen saved up $500k over 30 years while raising 2 kids and paying for 1/2 their college tuition on 50k/year? This man needs a youtube channel.
They both worked !!!!
Try living within your means. It can be done…
Invested, not saved. There's a big difference.
My first job from age 20 to 28 started at $10k/yr maxed out at about $32k/yr. When I left that job I had $50k in the 401k. Even if I never saved another dime I would have $500k now...but I did continue to save and continued to increase my savings rate. Retired at 55 this year with around $3 million in retirement investments (my wife has another $2 million). Stop complaining and start doing, it's not difficult but it seems to be very hard for most people.
@@rarelycares8416Congratulations to you. I hope to be in your position one day.
Very thoughtful video. We are in Canada, emigrated here 17 years ago with pretty much nothing, worked hard and we were actually only able to save $$ after the kids got out of college. Which is now 10 years ago. So here it comes: paid off the house within 7 years, bought 2 more houses (rental) they will be paid off within 5 or 6 years, probably will buy some more. No big fancy income, just no pointless debt, we're currently travelling Japan. There is so much possible, we're actually surprised. This is only to encourage people, not to brag.
People grappling with the difficulty of meeting essential expenses often encounter this situation due to inadequate savings during their working years. The decisions taken in readiness for retirement carry extensive consequences, as demonstrated within my own family dynamics. Differing investment approaches yielded disparate results. Guided by a financial advisor, I'm currently retired.
Indeed, that's accurate. I'm currently in my mid-50s. My wife and I were on a similar path until a couple of years ago when I decided to shift my investments to her wealth manager. While I haven't quite caught up to her accumulated profits over the years, I'm at least earning more now. I'm generating income even before retirement, and my retirement fund has experienced remarkable growth compared to what it would have with just the 401(k). It's quite amusing.
Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. Perhaps you should consider a similar approach.
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I just looked her up on the internet and found her webpage with her credentials. I wrote her an outlining my financial objectives and planned a call with her.
People are facing a tough retirement. and it's even harder for workers to save due to low-paying jobs, inflation, and high rents. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire in.
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.
Agreed, my portfolio is well-matched for every market season yielding 85% from early last year to date. I and my CFP are working on a 7 figure ballpark goal, tho this could take another year. IMO, financial advisors are the most sought-after professionals after doctors.
How can I participate in this? I aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
I work with Jessica Lee Horst as my fiduciary advisor. Simply look up the name. You would discover the information you needed to schedule an appointment.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
Azul - THE BEST of ALL your TH-cam content! I enjoyed listening to these real life scenarios! I relate. It’s so accurate!
Many people with $5 million live way under their income and assets If you saved that much, you don't really want to spend ti.
Very true. You are creating generational wealth and understand investing for the future.
@@vinyl1Earthlink trust me, their money will run out in 5 years if they fulfill all their wishlist items
@@JBoy340aagree
Yes. Its hard to learn to start spending.
Maybe. It’s all situational-did they invest it or was it inherited?
I thought this was realistic until he got to the $5 million level. It’s really not that much, and he’s describing someone with at least $10 million, not $5 million. Someone with $5 million generally has $150,000 a year to spend, at most, if they are delaying social security. Where does he get $350,000? That’s withdrawing 7% a year.
I thought the same thing! $350k/yr spending, a second house in Newport, leave a $1m to each kid?! I wonder if these people are real.
If you have 5 million in realnestate equity, that tied up capital pays 7, 8, 10% $350k is very possible meanwhile the leveraged property continues to appreciate. At some point they can roll that into a Deferred Sales Trust and draw that down with accompanying tax payments.
I plan on retiring in 10 years with a comfortable nest egg of around $125 MILLION. I am currently $125 million short of that goal. Must stay focused!
LOL. Nice to have goals. 😂
You got this!
😂😂...Brilliant. That makes 2 of us. I bet you get there first!
Get to grinding lol swing trading will get you there if you uses stops
125 million ? I’m going for 125 trillion!
I am 62 and my wife is 60. Our house has been remodeled and completely debt free for 10 years or so. We paid for both of our children’s public college education. We drive our cars into the ground. We don’t go out to eat very often and our vacations have been domestic and usually involve staying with family. We both work, but neither of us is in management. Our lives sound more like Allen, but our net worth is in Rick’s category. I plan to retire in 2025. I might be able to afford a Rick lifestyle, but the Allen lifestyle is also a good life. We all have different approaches to accumulating wealth, but I believe my wife and I have continued to live a modest lifestyle after we could afford to live more extravagantly, and we invested wisely, and that worked for us.
Great video! I really have a question. For someone with less than $5,000 to invest, how would you recommend we enter the crypto market? I am looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. What's your take on this approach?
My advice: for newbies to grow financially this year, invest. Saving is good, but investing elevates your finances. Why newbie make huge losses on trade is because investing without proper guidance can lead to mistakes and losses. that will stop you from trading, this has been one of the biggest problem to new traders, I've learned this from my own experience.
I agreed, investing without proper guidance can lead to mistakes and losses. last year. I did so many mistakes but also learned so much from it, If you're new to investing or don't have much time, it's best to get advice from an expert.
Nice. those who work with expert typically earn more than those who go it alone.
Wow! who is this expert guiding you? As a beginner what do I need to do? How can I start, If you know any please share.
As a beginner, it's essential for you to have a mentor to keep you accountable. Myself, I'm guided by Daniel Adams Bailey. for years and highly recommend him I focus on him. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
To quote David Lee Roth, "I've been rich and I've been poor. Rich is better. Totally better."
Retired at 59, and I fall between 2 and 3 scenarios.... I could have been in the highest if I had worked a few more years, but time was way more important than a few extra bucks. We are comfortable but not crazy and loving our retirement while we are young enough and can do everything we want to do and still leave a nice inheritance to our family.
Nice perspective. I'm about 8 months from retiring. I AM READY- at least I am ready to quit working and have been for a while. I will be 66. I have been listening to your videos for a year or two now and really appreciate what you do for us. Thank you.
Good Health In Retirement Is Priceless...!!
Hello from Denmark, I love watching Azul’s videos even if the American Way is not the same as in Denmark. He come’s up with great exampels of People’s lifes in retirement and these are just exampels. Maybe the geography doesn’t fit perfect, but everyone get’s the picture, right😉
Thanks for all the great videos!
I’ll see you in there🇩🇰
Great comments. My stress should be zero. My stress is still 9.9 Left handed, Virgo, accounting systems consultant, no heirs.. I suppose the answer is just get near big water and buy a sailboat.
Like always, great video. I am 50 now and plan to retire at 55 with about $1.3 million. I also plan to leave the USA and move to a lower cost country. First, I am looking to move to a country where food is fresh, not the TV dinner we eat here. Even if you are eating salads, the vegetables have 50 different chemicals added to them. Second, medical cost is crazy here in the US. Living in a lower cost country will allow me to slow travel to different countries and actually enjoy retirement.
Love this same here. Sitting on 1 mil net worth I also want around 1.3 and moving out of USA. Except I’m 36 so we’re doing it by 40.
So true. The food here is crap!
Similar position. I’m 55 and just retired to Spain - superb and funds are more than enough- good luck 👍🏻
Just out of curiosity, what low cost countries are you considering.
@@dominic8218 Hey Dominic, Isn't Spain bad from a tax perspective? Just asking.
I retired at 61 with $3M and a home that’s worth $1.5M in a Scottsdale, AZ. In 1982 I moved from Liverpool England to Chicago with $600 in my pocket and have worked three jobs in my younger days to make ends meet. Lots of character moments you might say. I always say to my sons that hard working people are lucky people so always love what you do and make it where there’s always something to get you up every morning. All three are now out of college with jobs that they enjoy and my middle son owns his own company and doing well. I often told my parents as they got older in life “ thanks for making me safe in life” understanding that’s the best gift you can give your children and to expand their horizons through travel and experiences that make any individual more self sufficient…..
I disagree with the prospects of the $5 million couple. In coastal Southern California $5 million is not wealthy. If they move to Newport Beach, they will experience a big drop in lifestyle. I do not think they will fit in with the yacht club set.
I agree. The description has the couple hemorrhaging money on multiple luxuries. However, if they cut out a couple of them, it would be feasible (I ignore the Newport Beach topic...too many questions come up).
$5M IS wealthy!! You are comparing the wealthy with the super-rich, not a good idea.
Rick is planning to spend $350k on a $5m portfolio? His rental properties better provide some solid income as that’s 7% withdrawal rate before SS kicks in.
What matters most is how much you need to spend to live the life you want. This will dictate how much you need. Don't fixate on the big numbers - forest for the trees.
I'm not sure that a person's stress level is closely tied to their net worth. Some people have little but have little stress, and other people have a fortune but are not happy and always worried about something else or envious of something more. "All things being equal," more money is better than less. But things are never equal.
I think he’s referring to one’s personal stress level due to the lack of money.
I have close to 5 million in liquid assets in retirement. I would never buy a new car every 2-3 years. I would not take7-8 vacations as year. A second hone is a headache I do not want. Glad I live in the Bay Area . There are so many things to do that I don't feel the need to travel all the time To ne, travel is work even if you fly first class. I plan to leave my 3 children a million dollars tax free but mire importantly my luat of contacts full of people that can help them along the way.I am 66 and the most important thing to me is legacy and being able to develop and maintain real generational weslth.
If you have $5mil why are you still working? I sure as hell would be enjoying life. Is that $5mil include house or house not included
@@jonfloyd1494 what’s your definition of liquid assets? I don’t think create generational wealth is as important as empowering your children with skills to support them selves. I paid for my kids educations thru 529 accounts. (BAs, graduate schools ). I intent to help them with down payments when their are ready to put roots down. By the way; I am also in the Bay Area
Amen brother!
@@jonfloyd1494 sounds great. And generational wealth means you leave a legacy.
Jonfloyd, I have around $3.5mm living in the NY Metroarea at age 45 years young. I don’t fly first class, nor i buy fancy car nor take 5-7 vacation. I live in a nice suburb home, 40 minutes train ride to Manhattan. I work full time and hardly can afford a vacation. Once a year we’ll goto Hawaii. I fly using credit card points. I still drive a 20 year old car but I spend over $1.3mm on a home. Liquid networth is 10%, invested in stock and crypto. Most of my capital is invested in rental properties (70%). My job doesn’t bring me joy, feel like just grinding it to pay for daily expense. My networth grows about $1mm every 3 years. Looking to achieve $10mm networth by 60 years old. Most $5m and $15mm networth people I know are fragual and owes his owe business or massive real estate rentals.
$1m is NOT top 3% wealth for households or individuals. Top 3% wealth for a 50-ish individual would probably be around $5m, give or take a million.
That's what I was thinking.
Officially (just under) $12M puts you into 1% of the wealthy. That number includes your primary residence. $5M net total worth sounds reasonable to be in the top 3%. Most stats only show top 1%, 5%, 10%... Of course, there always people who got wealthy in other countries and fly under the IRS radar.
@@vchap01it is interesting that the percentiles for population wealth includes home equity in the calculation. You can't see your home equity to pay bills unless you want to start playing the spend it down lifestyle gaming coupled with prediction of your future time of death and medical expenses that will arise getting there.
Joefunk, it is. It is comparing the entire population.
@@vchap01
Seems the top 1% net worth entry point in the US is close to the lifetime gift tax exemption
I’m 55 from southeastern Ohio but worked overseas all my life. I have savings of $1,000,000 and I'm ready for retirement, only concerned about the soaring inflation. Is this enough to retire comfortably, or do I need some sort of money management?
Glad to hear from another buckeye! comfortable retirement depends on your lifestyle...
I would get money management just in case. You’re only 55. I think the average life execting in the US is 77.5 years, but many people live well into their 80s so that $1 million has to last you all of that and the unforeseen. $1m is a great start though. Good for you!
I’m quite lucky exposed to personal finance at early age, started job 19, purchased first home 28. Going forward, got laid-off at 45 just after covid-outbreak, and at once hired an advisor with grit to help stay afloat. As of today, my portfolio has yielded over 300%, summing up $836k. Stay motivated friends
@@chadgriffith1969 this is huge! your advsor must be grade A, mind sharing more info pleas? in dire need of proper asset allocation
thanks for sharing! just did a web search on Annette Louise Connors and I find her valid
Rick’s case needs a lot more than 5 million.
I was thinking the same thing
350k is 7% of his portfolio. Even 250k a year would be luxurious but 5%. I suspect he still has a lot of debt payments, and a chef. His lifestyle is at least $8m in investments. Inflation might bite on a 7% withdrawal rate.
No you can spend more on good years
You can spend down to 3 or 4 million and a couple good years your back.
Believe me I know.
The Newport Beach house is a mistake
Azul said he has rental income so I’m sure that’s factored into the $350k per year
@@Markrtsoon agreed. That Newport Beach house will be expense to obtain and maintain.
Planning ahead can really make a big difference, especially when it comes to minimizing taxes. I’ve been exploring the crypto and stock markets for about six months now, and it’s been a game changer for me. I decided to reinvest my RMD strategically, and that decision has really paid off-I’m now pulling in around $25k a week with very little trading on my end. It’s been a great way to create a cushion and relieve a lot of financial stress. Best of luck with your RMD decisions-I hope you find the same peace of mind!
25k a week? Amazing! how did you get started?
I signed up for a 1-on-1 trading session. It's like copy trading, but with personalized guidance.
the session was secure and a supportive way to improve your trading skills while earning, the best part is there's no upfront payment required at all
Honestly I really need help learning to trade. Seeing my portfolio low makes me very sad.
I suggest consulting with Dave for guidance, This way you can get strategies designed to address your unique long/short-term goals
I am a Nurse and have been investing for a few years. I have reached a point where I could benefit from financial advice to improve my $200,000 portfolio for retirement, how do I maximize my ROI?
You didn't provide detailed information about your portfolio makeup. However, I recommend seeking guidance from a financial advisor for a well-informed portfolio restructuring.
Opting for an inves-tment advisr 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 85% since 2023
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
her track record looks really good from what I found online. I'll take a chance and see how it goes. Thanks for the info
Index fund low cost
Moneys a funny thing. My wife and I, 62, perfect health , BH. I recently told her we were millionaires years ago , she almost fainted. Life’s been real good. Plan for the best but I’m in the medical profession not a doc. Can’t tell u how many mid sixties folks stroke out , heart attack and worst cancer or diabetes and the life is very bitter. Moneys helps get stuff , service , fresh quality foods etc but a hha will eat your money overnight. Really take care of your health, it costs too much being sick. Watch blood pressure and weight carefully. Stop eating too much. Sleep well and exercise vigorously four days a week. We’ve all worked so hard to save and we’re all afraid to spend it. If you’ve got 3 million cash you’re in a great spot . Enjoy the ride .
Always love your insight, Azul! Thanks for sharing
Honestly, my takeaway is that the healthier one is, the lower the stress in retirement.
What are the expenses and debt for each group. That’s key. Do they have a mortgage? Did I miss this?
A lot of very wealthy people have a mortgage and use that debt instead of tying up cash. For example, Facebook CEO Mark Zukerberg has a multi-million-dollar mortgage. That frees up cash to invest and grow. That is much more financially advantageous than tying up that money in a house where he can only get the money out by selling.
@@JBoy340a Are you saying that the people in the three examples had monthly mortgage payments?
Planning to retire in 2 years at age 45. Income producing assets paying ~180k annually. Other investments as well. Plan to die with $0. Cannot wait to continue to travel the world. Life is good.
Define:
Income producing assets that pay $180K?
@@METVWETV Cashflow from rental property + dividend income
How do people manage, manage in retirement since 401ks are nothing to write home about? My 800k turned to 250k in no time. I'm 54, will I work till God calls me?I
I worked until 62, I was at the top of my income game, liked my work, and we could both go on Medicare. I ALMOST fell into the “only one more year” trap.
How did you apportion saving, investments and expenditure?
Finances: 35% in 5.25% secure, 40% stocks, 5% cash, 10% gold/silver, 5% Series I Savings Bonds, 5% “play” stocks (TSLA, HD, CCL). Key: NO debt. I don’t need my RMDs, thus, take as QCDs. This is a unique portfolio as apportioned by my fa
Who is this FA? And roughly how much do you pay for this service?
Glen Howard chester ’ , is a renowned figure in his line of work. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Allen’s $500k lifestyle would be the same as someone with $5 million living in the SF Bay Area.
Haha, not quite。unless all is in the house. In that case they need to downsize 😂
Complainers. Move!
I suppose it depends on the person. And having $5 M does not necessarily mean spending big money. And in the Bay Area tech jobs, often a lot of that money is tied up in future stock and other investments.
@@Jimmyjackfunk433 I don’t need to move. I’m more than comfortable here. It’s the younger generations I’m worried about. It’s not a healthy environment to raise a family or for long term stability of the region.
Move
Love these stories. Almost too accurate in describing my parents’ lives!
I like that you were very empathetic towards Allen and not judgmental
Your spending lifestyle matters more than how much money you retire with. Unless the $5M guy have enough rental properties to supplement his withdrawals/SS, that $350K a year is not sustainable with just $5M.
To be honest, I don’t know if Rick and wife have enough to buy a property in Newport Beach. A house on the beach will cost between 2-3 M. Their life style is too extravagant….they have a long wish list, better be careful.
much more than that! 2-3 mil will get you a small house with no view in Newport
@@amymorketter2954 yes, I was being generous
I assume they finance it. Maybe $800k down? Payments come out of the $350k annual retirement income. Very workable, if that’s what they want.
Don’t forget that $350k is taxed at the federal and state level. Not gonna be $350 unless it’s all roth money.
I’m 45 with a net worth in the mid 7 figures and I’m not sure I’ve saved enough for retirement, at least not to live comfortably
I’m on target to retire with between $5m-$6m. From my calculations I don’t think I’d be living as extravagant a lifestyle as your $5m example.
Rick's lifestyle is not of 5M but 15M. You missed to account 10M.
Yup, maybe $10m.
Sounds like a stretch even at $10m
5M liquid , Networth (house etc) is probably more so close to 7 - 10M I would assume
Well 5M liquid with paid for everything means they can easily take out $200k a year from it if they want to leave a lot for their kids. Some years they may be able to take $300k+.
They also get $80k in social security.
I don’t know I think with a quarter million bucks a year with no payments in the world you can do a lot.
With that said, getting a yacht if you are not into it much is not realistic at $5M. Maybe yacht are cheaper to buy and maintain than I think but for that specific example I agree with you more
Thanks for the video. When you say so-and-so has 500k or 1 million, is that the individual or the household? This is important as most middle-class couples are dual income earners.
What I find amazing is how much emphasis is put on financial health over physical health. Folks, regardless of the bank account, if you're not working out 4-5 days a week, watching your diet and nutrition, it won't matter what you'll have in your retirement because #1 - You won't get a chance to live a high quality of life in retirement and #2 - Either you'll die shortly after retirement or you'll have so many health issues, you'll be unable to live out your life like you want. Every article and TH-cam post about retirement seems to have this myopic view that retirement satisfaction is based entirely on financial health. The unfortunate truth is if you haven't built the habit of diet, nutrition and exercise by the time you retire, you may have waited too long to make a difference. Diet and exercise are habits that people need to build in their 50s , at the latest.
If I save 60k a year and just park it in some mindless mutual fund that average out 8% a year. I should be a millionaire in 11-12 years. Is my calculation correct?
$5MM is not in the top 1% of anything......the top 1% in America, in 2023 starts around $13.6MM......the picture of the guy flying in a private jet with $5MM is laughable.
😂 yeah the last 4 years make 5 million look like the old 1 million
Right lol I’m worth around 3M and drive and Toyota and rent a townhouse haha
@@jgreen6139well I’m worth a bit more, but not much. I have a paid home worth 600k, drives an Audi Q7. I’m retired living on passive income. Lives in Canada for 6 months and spend the other 6 months abroad living like a king. Can’t complain 🤷🏿♂️.
I’m a 47 year old living in Thailand with around $320k portfolio. I don’t need to be Rick when I retire. Just need around $2 million
The key retirement metric is not how much you’ve saved, it’s how many miles you can run each day.
Zero difference. As long as you have no debt. 🤓
Cottage, Porsche, condo in the south, multiple revenue streams. Zero worries. Do what I want. Life is great! 😊
Most people don’t realise it, but the secret to retiring comfortably is finding a way to make returns while your money works for you. My dad, as I remember, started saving for retirement quite late, but I know he was making more than 10k returns from his investment monthly and it was completely passive.
This is really amazing though. I'm curious as to how he did it. Was it real estate? Or he was a market enthusiast?
Haha. Investing enthusiast? Not really. Our family got introduced to a financial advisor about four years before my dad retired. That was what changed things. I've been using the same now and I think my retirement income would be on the right track.
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thank you for this tip. It was easy to find your coach on web. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
All these retirement people always talk about high healthcare costs. I live in California in an expensive area and my cost is $70 per month besides what SS pays with max out of pocket for things not covered is around $6,000. Now if you need assisted living, that is expensive. I live in a manufactured home on a very large lot in a park and yearly expenses are around $12,000 all in (including all services). So we can live on only $25,000 a year if we wanted to, proudly much less. I also don't understand the 4% rule as I have been retired for 20 years and only tapped into savings to buy my house for cash as my money was all tied up in a 1st deed note which was paying us way more than 4%.We have always lived on the income from investments, if you spend your investment principle you will eventually run out of money.
An enjoyable video and comparison. I honestly like Alan’s lifestyle the best, although a bit more peace of mind is always nice. Silver Sneakers health club memberships should be free for most people on Medicare. Also, it seems awfully wasteful what the two more well off couples were spending on cars; there’s no need for that.
This is a great analysis! Thank you. I have often wondered this-how different levels impact lifestyle
You have no idea just how much it costs to live in Newport Beach.
Interesting. I have savings like the $500k person, but live like the $5M person. But, I don't own a house. live out of my car, and traveling the world, taking cruises. Currently traveling in Europe for the next 6 weeks. It's not how much you have, but how much you spend. Lifestyle matters.
Very true.
Ha. I’m 53 and have $5M in retirement accts, a pension and healthcare for life and feel I can’t retire. I also don’t consider myself upper class, more like upper middle class.
That is a lot of money for a 53 year old. And if it is all retirement accounts even more unique.
Do you have to wait til 59 1/2 before drawing off your retirement funds? I’m retiring with 1/3rd of what you have when I hit 59.
@@Oglulubell no. A good chunk is in a deferred comp account that will get paid out once I retire.
@mjr7991 5 millions is plenty of money in retirement account. I personally have a friend who retired on a million dollar portfolio in his early 50s. He is doing good with a paid off home and car,which helps out a whole lot.
If you have a pension and lifetime healthcare coverage then i'd expect that number makes you feel only upper middle class due to where you live, what you live in, what you drive, how you travel, inability to control spending of partner, kids and/or grandkids that you help out.
This is encouraging because I’m am totally comfortable not retiring with $5M. Definitely not me. 😂 Thanks for this one! Wonderfully thought provoking.
Top 3% is not 1 million. It’s 7 million. Among retirees, it’s going to be even higher.
I have 3M saved, my name is Rick and I can’t even come close to Rick’s lifestyle…. 5M is not that much money these days, especially for two people.
Who ever has money never has enough. Eccl 5:10
I am 27 and i just started my ROTH IRA and deposited the max for 2024! I feel stupid for how long it took to get my life straight. The problem here is, what is the best way to invest the money to grow for retirement?
I believe every Investor should start with ETFs for a solid foundation, then diversify across asset classes and maintain disciplined, regular investing to minimize risks and maximize growth.
Your young so put it all in stocks. Stay away from funds with sales loads, expense ratio's over 2% and other senseless management feels. My brother thought he was saving for retirement but after checking on his account after 10 years he had earned .04% while I was up 23% annually over the same period so pay attention to what you buy into and don't be afraid to move it if it's not performing. Good job for getting started! I enjoyed Tony Robbins book "Money master the game" recently and would recommend that.
This is just a great video. Using cases that either are or approximate real situations is so powerful. This may be your best video yet.
I'm on target to have $950k in two and a half years when I'll be 60. If it happens, I will quit then.
When talking abut net worth, I wish videos such as this made clear if they are talking about the assets accumulated by one person individually or per couple. For example, hypothetically, when you say person A has $1,000,000 saved for retirement, are you talking about just person A or a married couple (persona A and B) who co-mingles their assets. So if you present a scenario of what life is like with assets of $1,000,000, if we are planning for retirement for me and my wife, do we need to double that to $2,000,000? So many of these videos don't make it clear if they are talking about single people or married couples.
PSA some of the people commenting you are using your names as your user name. You are also telling everyone all of your assets and personal situations. It would not be hard to track down more personal information. You are opening yourself up for being scammed. Scammed out of that hard earned money. Keep yourself safe.
I do enjoy your blog and have a question. When you say retire with X, are you talking about money in the bank plus income from SS and retirement accounts or net worth, e.g. stock, cash and property?
Nice video and good comments. The $5m family I’d assume would be quite stressed given both property values and property taxes to buy into Newport Beach, and if considered CA residents paying 13.3% on their state income (curious how many people in Newport have a primary residence there). In any event, living simply as you can even with $5m is best… we are in the process of shifting to Mexico. Would love to have the financial take on that from Azul.
Having a $5 million nestegg but happy and comfortable as though it was a $500,000 nestegg is bliss.....
I do not get it - we have #3.000.000 net worth, cannot justify even what the $1million family - we eat out maybe once a month, take maybe a two week vacation a year. We help our grand kids with education at private schools. I have little worries except what may happen the next couple of years due to governmental malfunctions.
Are you retired? Has your nw gone up since you retired? If so, give yourself permission to spend some
$3m invested plus a paid off house? Or does the $3m include a house you live in?
Net worth includes house@@NoRegertsHere
I am partally retired - yes I can spend more - for what? I have all I need and want@@21stcenturydadd
Knowing what cities/states the 3 live in would be helpful. Costs vary widely around the US. How about doing this presentation for single people.
I wouldn’t be comfortable even with $5M. It’s a minimum to have a modest peaceful retirement in the USA.
Wow... I think your descriptions are spot on. Your the best, Azul.
You nailed this one…i am closest to Rick number wise (but still short of the 5 m in investable assets)…but don’t feel financially comfortable at all- i relate to Allen the most and feel more like him-it may be irrational but i don’t think so…i live simply and below my means and that got me to this spot and won’t be changing at this stage of the game
Love the concept of this video, very helpful
Between 1M and 5M is a huge gap, where would you put the line upon which will start feeling similar to 5M than 1? (2.5 sounds not right: somehow I feel the perception of wealth is not linear...)
Very nice work, gentle, rooted and sober in it's assumptions.
Rick better slow down or he will be broke.
250k is plenty as long as (1) you have cash flow that exceeds your obligations and (2) you live on a boat where your expenses are extremely low, relatively speaking or (3) you live in a rural area and grow a lot of your own food. We retired at 55 and moved onto our sailboat. That was 13 years ago and we have no plans to move back on land.
I know this isn't the point, but Alan not wanting to spend $30 on a gym membership while sweating healthcare costs is exactly what is wrong with American thinking.
Or worse thinking that gym membership solves health problems when its what you put in your mouth that is 80% of the deciding factor with activity [ / exercise ], quality sleep and social support system making up the remainder.
Mike’s lifestyle seems a little unrealistic for 1MM. 4% rule is 40k plus social security maybe another 40k. That doesn’t pay for too much these days. Almost sounds like there’s a teachers pension in the background
Calling 4% a “rule” is like saying the speed limit is 55.
I retired early 3 years ago. Currently I do have over 7 figures in retirement savings but I don’t plan to use it until 70 (I plan to gradually moving it from various mutual funds to stable income). I live in my monthly pension (less than 40k a year before tax). My living expense is roughly $25k to $30k a year (one or two big travels). I save leftover for future car purchase and home improvement. My have company provided healthcare that will be supplemental after MediCare kicks in. I have no consumer debt, loans, or car payments. I have to watch my spending but it’s not hard because I don’t have overspending or mindless spending issue. I am single no kids and live in SoCal. I think I am doing ok.
Sadly, 5 million in Newport Beach feels poor unless that house is paid off when house there are several million. How do you feel comfortable when in the last 4 years we witnessed 21% inflation. When you are telling people they have 5 million, is that liquid? Or does that also include real estate value? If you live in a high cost area, tons of ones net worth can be locked in a home. 3 million dollar home and 2 million in investments?
Good video and story patiently told. Healthcare costs overwhelm everybody at all income levels. It’s something one has little control over even if you have a healthy lifestyle.
Please do a video on how retirees with +$3M manage RE purchases in retirement. I’d be interested in hearing how you advise “Rick” how to structure his Newport Beach home since most homes in that area are $2M and up.
Honestly, 1 million is not easy street. Especially when you have to help out extended family and kids. Personal trainers can actually hurt you as well - torn ligaments, hiatal hernia, etc. I've seen it. We fall in between the second and third case, but I will never feel it's ok to spend 5k on a first class flight (use your points instead).
This is my fifth year after retirement. I’e been following the 4% rule thing I saw on a youTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.
Not a lot of people are able to save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
I’m closing in on retirement, too, and I have benefitted so much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who had been investing for many years.
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
'Annette Christine Conte, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Thanks for the video. I feel the scenarios are a bit optimistic, especially the last couple with $5M. It seems they will run out pretty quickly, with two new luxury cars every couple of years, expensive vacations, $1M into a vacation home, joining a country club. I would have guessed that lifestyle would require at least $10M to be sustainable in the long run.
Thanks for the vid. Please, HOW is Allen withdrawing from the 401k? 0:52 Is he just taking just interest? Probably not. At what rate is he withdrawing. 2:00 so he doesn’t have a mortgage? Is he broke at 75 years old since you stated he cant afford to give to his kids or grandchildren. Thank you so much!