I totally agree with you on the important of planning for tax impacts. Do not forget the IRMAA penalties when income goes above 103k. I would suggest he open and contribute to an HSA until he enrolls in Medicare. The HSA contributions will reduce his income (save on taxes) and he can use it to pay his Medigap or Medicare Advantage premiums (or other medical expenses, basically anything he keep receipts for once his HSA is set up). For planning I use it for premiums as its easier to predict expenses. I'd also recommend digging into his monthly expenses to see whats included. It is just basic living expenses (mortgage, utilities, groceries, etc) or does his plan include taking trips (luxury vs visit family on holidays) Kids Weddings? grandkids college fund, Roof replacement, Car replacement, expenses for fun in retirement like golf, hobbies, entertainments, etc? I suggest folks put everything into the monthly expense category so the money is account for each month. Then each month push those funds to an HYS and CDs until they need to be consumed as some might be consumed each year vs 5 years out. To often I see people leave this in their retirement buckets and then get surprised when they pull it out (major funds like wedding, roof replacement) and take a larger then expected loss of interest gains.
I am 47 y/o single and I would like to retire at age 52. I have very good job (salary-wise), but the stress is incredibly high to the point that is taking a toll on my health and that is the reason I would like to retire as soon as I am able to do so. I currently have 820K in my 401K, I have no debt, house and car are paid off. The plan would be to retire in Mexico where I just finished paying for a small piece of land, the plan is to continue working until I am 52 or until I am able to save enough money to build a small house in that piece land in Mexico and live off of the rent of the house I have in the USA. I calculated my potential expenses once I am in Mexico to be around 2000 a month, and that includes the property taxes and home insurance for both homes. I would like not to touch my 401K unless there is an emergency. Is this a crazy idea? I just cant wait to live a stress free life, but I do not know if this will be enough for me to retire. What are your thoughts on this?
Do you have money to live off from age 52 to age 59 1/2? If not, I recommend you work till the year you turn age 55. That way, you are able to withdrawal from you 401k without penalty (rule of 55).
It's a reposting of an older video. I remember this one as it is close to my scenario, except I don't plan to take SS until 70 and will do Roth conversions over 13 years. 79 days until retirement.
Why don’t any of you guys do an example of planning with us only receiving 75% of the projected Social Security projections. Let people see what’s likely to happen to us!
All so complicated. Easiest way out for Gerry is just to reduce expenses. No need to move to Mexico or Thailand to do that. I am a single retiree living in the most expensive city in the world, Singapore. I manage happily enough on $1,500 per month. That’s about USD 1120. But as I could easily afford more than double that, I have few worries. No need to take investment risks and do all the Monte Carlo permutations.
$1.5M is not enough. He should retire in poorer countries such as Mexico or Thailand. The current FU money is $2.5M per person according to my accountant.
@@JohnSmith-ps7hf no $24,000 a year isn't poverty. Actually it's about what I spend right now (my savings rate is 50% and I won't mention taxes) And people in general want to stay around family
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I totally agree with you on the important of planning for tax impacts. Do not forget the IRMAA penalties when income goes above 103k. I would suggest he open and contribute to an HSA until he enrolls in Medicare. The HSA contributions will reduce his income (save on taxes) and he can use it to pay his Medigap or Medicare Advantage premiums (or other medical expenses, basically anything he keep receipts for once his HSA is set up). For planning I use it for premiums as its easier to predict expenses. I'd also recommend digging into his monthly expenses to see whats included. It is just basic living expenses (mortgage, utilities, groceries, etc) or does his plan include taking trips (luxury vs visit family on holidays) Kids Weddings? grandkids college fund, Roof replacement, Car replacement, expenses for fun in retirement like golf, hobbies, entertainments, etc? I suggest folks put everything into the monthly expense category so the money is account for each month. Then each month push those funds to an HYS and CDs until they need to be consumed as some might be consumed each year vs 5 years out. To often I see people leave this in their retirement buckets and then get surprised when they pull it out (major funds like wedding, roof replacement) and take a larger then expected loss of interest gains.
Great comment and contribution. Thanks for sharing!
DRew at around 37:00 in your video there is a hesitation. Might want to edit that out
Thank you sir!
Did you see the proposal to fix Social Security? I know it won't pass but it's definitely not more tax in retirement
Proposals mean nothing right now. Show me the money! 😂
@@yourfinancialekg agree on this won't pass
But I don't think taxes for average retirees will rise significantly.
I am 47 y/o single and I would like to retire at age 52. I have very good job (salary-wise), but the stress is incredibly high to the point that is taking a toll on my health and that is the reason I would like to retire as soon as I am able to do so. I currently have 820K in my 401K, I have no debt, house and car are paid off.
The plan would be to retire in Mexico where I just finished paying for a small piece of land, the plan is to continue working until I am 52 or until I am able to save enough money to build a small house in that piece land in Mexico and live off of the rent of the house I have in the USA. I calculated my potential expenses once I am in Mexico to be around 2000 a month, and that includes the property taxes and home insurance for both homes. I would like not to touch my 401K unless there is an emergency. Is this a crazy idea? I just cant wait to live a stress free life, but I do not know if this will be enough for me to retire. What are your thoughts on this?
Sounds like an awesome plan. For a more in-depth analysis contact us at: pearlwealthgroup.com/contact/
Do you have money to live off from age 52 to age 59 1/2? If not, I recommend you work till the year you turn age 55. That way, you are able to withdrawal from you 401k without penalty (rule of 55).
Why is SS not adjusted from age 53 to 62 ?
Just me being conservative.
Video coming out at 11 pm???
It's a reposting of an older video. I remember this one as it is close to my scenario, except I don't plan to take SS until 70 and will do Roth conversions over 13 years. 79 days until retirement.
Why don’t any of you guys do an example of planning with us only receiving 75% of the projected Social Security projections. Let people see what’s likely to happen to us!
Video coming soon!
Great! I think that will really open a lot of eyes as to what’s coming!
22$
All so complicated. Easiest way out for Gerry is just to reduce expenses. No need to move to Mexico or Thailand to do that.
I am a single retiree living in the most expensive city in the world, Singapore. I manage happily enough on $1,500 per month. That’s about USD 1120. But as I could easily afford more than double that, I have few worries. No need to take investment risks and do all the Monte Carlo permutations.
Great contribution!
20
$1.5M is not enough. He should retire in poorer countries such as Mexico or Thailand.
The current FU money is $2.5M per person according to my accountant.
Thanks for watching!
@@yourfinancialekg
Lol!!
Then 95% of retirees should move? Because 2.5 million is top 5%
@@johngill2853 Yes, they should move. You can live well in Thailand or Mexico with only 2k per month. But 2k per month is considered poverty in U.S.
@@JohnSmith-ps7hf no $24,000 a year isn't poverty. Actually it's about what I spend right now (my savings rate is 50% and I won't mention taxes)
And people in general want to stay around family
Buy an annuity and not delay Social Security? Social Security is the dream annuity. Cola and government guarantee
I agree with you John!
Annuities are a rip off!
@@METVWETV why is a MYGA a ripp off?
First