Steve Hello, first time finding you, and I just LOVE YOU!!!! Omg you call your wife THE BABY, ooohhhhhh, LOVE IT! Thank you for teaching!!!❤ 🎉Thank for spring forward Sunday, i forgot. Lol
Love my 401k. I started right out of college. I did it for 35 years and retired at 57. Folks start early and don’t pull out any until you retire. I have Fidelity and took the monthly option. I chose the amount of monthly income and the percent deduction of Fed and State. I can change at anytime. I am like you I sometimes stop the distributions and take out of other retirement accounts. It has worked so far seven years. My handy excel spreadsheet says the strategy should last until 99. Way past the age I want to get older.
401k's are great for retirement I believe. I love mine. When you're in your saving years the money comes out before you see it, you get matching contributions and interest/dividends. Bonuses all around. Glad to hear things are working well seeing as I'm trying to do the same. Thanks. Steve
Steve, Appreciate you sharing your journey and invoking some good discussion. When i retired at 55 I pulled my 401K and rolled into a IRA with no penalty, was able to diversify it much more than what the 401k offered. I also pulled my pension in a lump sum and put into a lifetime annuity with a long term care rider that doubles the annual payout if me or the wife go into a long term care facility. Due to past health issues LTC insurance is not an viable option so this made the most sense. We don't plan on pulling from the annuity for a few years which will increase the annual payout. We will however take SS at 62 or 63. Anyway everyone has a different way of going about these things and to what makes most sense in each situation.
Exactly! You did what was best for you and your situation. Retirement is different for everybody. No one size fits all. Good for you. Great comment. Thanks and take care. Steve
You are doing the same basic thing I did, I decided to start SS at 65 because of Medicare, me and the wife both get a check and it's worked well for us, Thanks
I have a small pension and a reserve tank if the need arises. So I've got a little help that a lot don't have that just have SS. Sounds like Y'all doing fine. Glad to hear that. Good for you both. Take care and thanks. Steve
Steve, continue to enjoy your video's and insight. I keep telling myself one day I'm gonna reach out and stop by for a glass of sweet tea if you'll have me. I'm not but 90 mins North! Keep it up Brother!
Drop me an email and I'll make a fresh pitcher. On Saturday nights during the summer a local car club has their cars at a Hardees right on the exit off I-95. Ain't 5 minutes from the house. Check the cars out or just sit on the corner and bs for awhile. Take care. Steve
Hi Steve, I'm not there yet just turned 61yrs old. I am starting to do all the leg work. Figuring out what is the best plan. I'm thinking I'll work till I'm 65 yrs old. Take the next 4 years bonuses at work and just put them in CD's until I'm ready to retire. I can work part time and then use the bonus money to keep from drawing my Soc Sec until I'm 66 but then I'd need to take some out money out of my 401k for the next year. I'm hoping to only have to use the 4% rule and have my savings make 5.25% or more to keep up with my deductions. Yes I'll lose some to inflation. I'm not worrying about my money lasting forever. I figure I'll only live between 80 and 85 if I'm lucky. That means my money only has to last 20 years. I plan to work part time in Retirement at something I enjoy. Use that money for health care and Spending money for trips. This is all new territory for me and you only get one shot at it so I hope to get it right.
Have you checked with a financial advisor. They might be able to help you figure things out a little better. I checked with 3 before I made my decision. 2 were a general over view but were free the 3rd I paid for. I figured if they saved me from making a big mistake it would be worth it. They like to use 90 as a default but I personally think early to mid 80's for me also.Don't stress over it to much you can get a do over if your healthy. You already plan to work part time so that should help. Best of luck and take care. Steve
Good luck to you ... just retired four months ago at 61 so i am still learning ... i too spoke with a number of advisors and in the end spent $1000 with one who signed off on my plan ... my plan was basically to retire with no debt, use my 401k and small pension as a bridge till social security (age 67?) when i will be able to live off just pension and me and wife's social security ... the two suggestions i tell people considering retirement are #1 KNOW YOUR EXPENSES and #2 use a comprehensive software package to help evaluate your situation ... i use a paid version of NewRetirement ($124/yr) but they also have a free version that is very good (start with that) ... i had a great job, but had to drive three hours per day that made me miserable ... i hope you can put yourself in a situation that works great for you ... good luck
Didn't realize you were from the UK I don't believe. I could have just forgot(Retirement Brain). Glad to see you here. She's my Baby. Without her I'd probably be living under a bridge somewhere broke, lonely and hungry.😀 Take care. Steve
Annual average COLA over the history of COLA, is 2.5%. Some yrs its higher, some yrs its lower...just an average. Thus if one were to wait til 70 to collect SS, 70 is 8 yrs past 62..so the firmula to figure ones projected SS amt at 70 would be: .025 x 8 = .20, then multuply the est amt ones projected to get by .20, then take that answer n add it to the proj age 70 amt, & thats what one could get when they actually reach 70.
Yeah I got that in mind. My projected SS already went up from when I retired last year. It was just a simple example to show SS would be our biggest income in retirement and we'd still be fine. If I was 67 now and collecting we wouldn't need anything else to make out just fine. Hadn't planned it that way, it's just how it worked out. Surprised me. Still glad I got my reserve tank. Thanks. Steve
Exactly. Healthy, happy and content was all I was hoping for. The fact that our investments might grow in retirement is an accident and never planned. Just a byproduct of how little it takes for us to be that way. Great comment. Thanks. Steve
Just a little cheat sheet for "Steve's Retirement". Maybe eliminate some confusion for some when I mention my SS, or pension or something. Take care. Steve
I'm stunned as to how restrictive your 401K is. You'd think it was their money being so stingy with it. I'd definitely roll it at 59.5 into your IRA. You got the right take on the rules and you're right you got to know what you're doing, or the penalties are crazy.
It's not ideal for sure but something we can work with. By deciding to retire a little early things aren't quite as straightforward or easy as they could have been if I'd waited a couple years. I have to approach things a little different in order to have the same outcome. My 401k is one but it will straighten out a little next year. Take care. Steve
Always try to gather as much info as I can and think about it from all angles. With a little expert help now and then it should get me through retirement. Thanks. Steve
Never planed it that way but that's the way it turned out. I do have a small pension and that reserve tank so I have a little help that some on SS don't have. Thanks. Steve
That's what I hear. Virginia ain't too bad a place for living expenses. Not being near DC or the beach helps. Pretty easy living I think. Out there and some other places we'd be struggling. Thanks and take care. Steve
Sorry it was a little windy and my mic ain't the best on the market. I did mention that and included it in my figures. SS would still cover our living expenses but just barely if I was 67 and collecting now. I do have the advantage of my pension and the reserve tank a lot of people on SS don't have. I didn't plan it that way and was surprised it worked out that way. Sorry for the confusion and thanks for the comment. Hope this cleared things a little for you. Take care. Steve
Sounds like the glide path we are on. Going out early and our investments ( 3 IRAs, a 401K that will auto roll to an IRA 60 days after I leave work and after tax brokerage dividend fund) will see us through until turning on SS at 65. My SS alone will more than cover our base household expenses. We will take the dividends and pull a little off our IRAs at that point to supply all our extraneous travel and spending. Should be an easy walk.
That’s great Steve, I hope inflation doesn’t eat the rest of it. It’s amazing these last few years how much things have gone up, I know I’ve changed a few habits to curb some of the cost but at some point it’s just gonna catch me.
Your social security strategy is GREAT and is going to allow you to handle inflation ... i really enjoy your relaxed yet thorough approach ... best of luck
I’m in a similar situation. My IRA is just to get me to SS. At that point I can easily live on just SS and leave savings alone to continue growing. I’ll spend that SS down every month. SS will be more than we are living on now while working. Once we back out taxes and savings for our retirement what’s left over isn’t much and that is starting with a nearly 200k household income. Lots of people bad mouth SS as not enough to live on. Pooy on that. If it’s not enough you’ve got a pretty high life style you’re trying to support.
Depends on the amount and the persons needs. No different than anything else. Known some that didn't get over 1k in SS. No matter your life style or where you live that won't cut it. It can be plenty but sometimes it ain't. Two SS recipients makes a big difference. Plus I got my pensions and reserve tank if needed. Good for you. Hopefully things will work out for us both. Take care. Steve
Just a little cheat sheet to "Steve's Retirement" so people understand what I'm dealing with and why I did what I did. When I mention SS, pension or whatever they get the whole picture. Everybody retires different and it makes no sense unless you have the inside scoop so to speak. Take care. Steve
Yes thank you for this i’ve been on the hunt for retirees who can talk about their experiences withdrawing from their 401(k)’s i’m trying to figure out if this is scam or not. Have like 2 401k’s , 1 IRA & a few high yields but planning my future and trying to figure out how retirement will look. 🎉😊
It's not a scam and lots of people do similar. As long as you know what all it entails it could help someone retire a little early. Check with an accountant or advisor and they can walk you through it. Depending on your age, account types and a couple other things there might be a better option for your situation and they could help figure it all out. This works for us but might not for you.Take care. Steve
@@retirementcorner@retirementcorner Thank you for answering me, Steve! I have major distrust in the financial system as I was scammed recently with the BTX situation and have had family deeply affected by crooked accountants in the past. I'll be beefing up my 401(k)'s and IRA's every year just will be diversifying as much as possible to avoid some of that market risk.
The rules maybe different than mine were so it's a good idea to know before you decide. Everybody's is different, just depends on how your company and the handlers set it up. Hopefully you'll have more favorable options for withdrawing. Take care. Steve
Question for all the town Elders 😂 In hindsight, when you realize Social Security was enough for retirement and not touching any savings, would that make you rethink retiring even a few more years earlier? Again always easier in hindsight.
For me NO. I wasn't ready and didn't have the desire to retire any earlier. It would've definitely eased any concern I had about finances in retirement. I had planned to retire without SS and had no idea it would be that valuable to me. Always heard it wasn't possible to retire just on SS. In my case that's not quite true. I do have a small pension and that reserve tank if I need them. Take care. Steve
What is your rational for not just spending more in your younger healthy retirement years. I think of retirement us spending what you earned/saved/invested. Just curious why you want to continue to build wealth rather then live it up? I guess reasons could be wanting to leave a legacy to heirs or favorite charities?
Great question and I never really thought about it. No rational for it really. Just have no desire to. We do pretty much what we want, when we want and always have. We're healthy, happy and content. Sorry but that's about the best answer I can give you. I'll think on it and do Monday's video on it. Thanks and take care. Steve
@@retirementcornerThank you. Always enjoy your videos. We are in a spot similar to you but making the choice to spend more and save less. But we have no children to leave it to so figure we might as well spend it - especially since we earned it and invested well. Nice that you are easily contented. All the best to you.
What about long term care? Living it up is fantastic but just don’t forget to plan for later. I recently lost both of my parents 93 and 96 and they spent down their million dollar nest egg on in home nursing care.
@@tombkk1322That is a valid thought. However, we recently put a loved one in a NH. We had a lawyer draw up a "lady bird" deed. Then spent down assets to meet Medicaid criteria. She is in a nice facility, on Medicaid. We (family) pay a small copay based on her income. Upon death, the property will belong to the heirs with no option for the State to lay claim to any proceeds from the sale. In this case spending all she had while she was of sound mind and body was the smartest decision. She enjoyed her savings and still gave the home/property to her family. I want to be the poorest person in the cemetery. Looking very forward to hearing how Steve weighs on on all this.
It is the second time I hear this, 401k withdraws, you don’t have a choice of where the money comes from? That’s dangerous if stocks are way down and they sell stocks, you could loose a lot of money. My 401k has a fixed income fund, I want all my withdraws to come from there, don’t touch my stocks unless they are at an all time high. Can you manually withdraw the money from your fund of choice?
It's not ideal but it's what I got to work with. My 401k gives me no option/choice yours might. They are all different. That's why it's important to be aware of what yours allows. The day after they pay me I just adjust it how I wanted it done. Simple and easy. Take care. Steve
What are your investments in within your 401K? In my 401K we are in the S&P Index Fund, after COVID we were back to normal by September 2020. Kicked Butt 2021, 2023 was a down year but 2024 we went up over 20%. All in all we are about 25% higher now than back in 2020 recovery. Please double check what you are invested in. Be carful of Expense Ratio's (ER).
No kidding, is that including your contributions? That took awhile. Shoot me an email maybe we can catch up. That just doesn't sound right. Ran into Lynwood dropping off our taxes the other day. Things don't sound good at the plant. Did it effect you any? How about Wayne? Take care. Steve
Steve: Based on your investment returns, you may consider delaying Social Security past age 67 and going year to year until age seventy. This would provide the largest benefit for your wife to receive from Social Security since the couple's longevity is the most crucial number, with the lower-earning spouse's Social Security going away upon the first spouse's death. While many would say the breakeven age is too high, that breakeven is for the couple, and the probability that two people live at age 65 and one person lives at age ninety is greater than average. That delayed credit at FRA is 8% each year, and that benefit increase was created over thirty years ago when life expectancy was lower, so it is a sweet deal for those who want to maximize their benefit. ( About 10% delay until age seventy ) Thanks for another excellent video, Steve!
Thanks for the help. Believe it or not I've been thinking along that exact same line since I retired. My retirement is fluid nothing wrote in stone and constantly changing. We both turn 67 in 2033 me in Jan and her in Sept. Already moved my pull date to 2034. She will be 67 and me 68. Probably will play it by ear once we get there. Always thinking and adjusting. For me the breakeven point is not a big concern. I look at SS more for financial protection later in retirement. Thanks. Steve
@@retirementcorner Hey, that would be an excellent idea for a future video: You sitting on a three-legged stool and discussing how the third-leg pension gives more flexibility in decision-making.
We think an awful lot a like. Friday's "Flashback My SS" talk about this exact thing.Already had it planned. Don't have a three-legged stool so it will be my rocking chair.@@davidfolts5893
There is not much to it really but it's a little different than 72t. Best I recall with 72t the payments would have been less than I needed to live and you had to keep taking them for at least 5yrs. or 59.5 whichever is later. Would have been 62 for me before I could roll it. Rule of 55 I can roll it whenever I want and the payments worked better. Need to check and see how your plan works. I checked with my tax and financial advisors also. Take care and good luck. Steve
I got messed up to, my 401k wouldn't allow me to do partial withdrawals prior to 59 1/2 (TOTALLY STUPID). It would allow me to do full withdrawal into an IRA..but then i wouldn't qualify for the 55 rule. So I ended up having to live off of cash for the next 2 years until I'm 59 1/2 then i can do partial withdrawals............ SO DUMB this is our money!!
That's something else. They don't have to allow a partial withdraw. Just depends on how things are setup. Luckily mine did or I'd had to do the same as you and it would have drained my easy cash. Take care. Steve
County property not mine. Our yard ends at the tree line. Just a 2 lane road, the highway is a few minutes down the road. People use it for a shortcut to avoid the main road about a mile or so behind me. Gets busy during work times M-F(going to & coming home) after that quite as a mouse. Take care. Steve
401K's are funny things at times. The place I retired from had a great 401 provider that had no restrictions if you wanted to keep your money there in retirement and would allow you to withdraw from any fund you desired or all across the board of your funds. They changed providers two years ago and like your 401, they only allow you to pull money across all funds in the percentage ratio you are set up in. I particularly disliked that in 2002 when everything went down except my Stable Value fund I had wanted to draw from. Worse, by their own words a rollover to an IRA will take up to a month and they insist a paper check be sent by the mail. A paper check in the mail in 2024. All 401k's remove 20% minimum for federal income tax by federal mandate. All the more reason to get it moved to an IRA.
Man that was a great setup you had too bad they switched it up on you. I'll be 59.5 next summer and already planning the roll over. It will slow my burn rate, give me more options and allow me to set my tax rate. The way they do it ain't perfect but it's what I got to deal with for a little while long. Thanks and take care. Steve
I was surprised. Just went off ssa.gov numbers so if they are anywhere close we'll be fine. Still got a reserve tank just in case. Got 9 more years to go but we'll see. Take care. Steve
At $17-18K. a year I would think you could qualify for some state govt assistance, Medicaid etc and possibly partial payment of your medicare costs when you hit 65 depending on the state
That's my SS, the wife's SS and $1500 in pensions at full retirement age(67) after taxes of 20%. It will actually be $4968. Have you checked ssa.gov. You might be surprised. The calculation they use adjust your earnings each year. Add in the cost of living adjustment and I think 8% for every year you wait from 62-70 and it's more than you might think. Take care. Steve
You’re in such a low tax bracket, you should at least convert (Roth) up to the top of it while you are both still alive and not drawing SS or RMD’s. If you die, your wife will be filing single and more than likely be pushed into a higher bracket. If you both live longer, your SS, pension and RMD’s will probably push you into the 22%. And that’s the best case (you don’t die early). Convert to the top of your bracket!
Thanks for looking out for me. This was something that I was concerned about before I retired. Due to the rules of my 401k on distributions, RMD's won't be a problem later on. At FRA very little if any will be left in a taxable account. I'll keep an eye on the laws and changes till then and adjust if needed. Appreciate the help. Take care. Steve
@@retirementcorner yes, I remember you talking about the rules of your 401k. Today was my last day of actual work. I go back 9-3-24 to turn my badge in, but no more actual work. I’m 61, so just a few years older. Everybody’s situation is a little different and not all the rules apply the same. I was able to roll my old 401k from the utility I worked over to fidelity with no issues. Same with my annuity I had when I worked for the contractors out of IBEW local 9. I drew my utility pension at 51, but it just went into my brokerage account. Over the years I converted sone of my iras to my Roth. Still have $500k (plus/minus) in regular ira. Like you I’ll let my SS grow (probably till 67). I’ll live off my municipal (I went to a municipal electric utility 19 years ago) pension and my utility pension if needed. I feel very fortunate to be able to leave the workforce with a somewhat healthy body. I put a ton of overtime (mostly forced) over the 40 years. 58 hour weeks for years at a time plus call outs, weekends holidays, really brutal when I look back in it. I was able to put 3 kids thru big ten universities, buy 7 rental homes and give my family a nice life. What more could a father want. I hope you have a long and prosperous retirement.
Good stuff Steve. In other news I watched a bit of Uncle Joe last night. He told everyone the economy is booming, things are great & we have nothing to worry about. The lies are sickening & I can’t wait for him to be gone.
@Abrahams where is the lies. Fact: our economy is the greatest comeback story. Other Develope countries haven't recovered. Fact: we have the lowest unemployment rates in recent history, Fact inflation numbers are lower than expected. Fact using the same method and measure for all prior president. Fact He cover lots of Trump Administration deficit. Fact Trump had created the largest deficit in history for a 1 term president. Yes there still work to be done. Had it been Trump the deficit would have been triple.
Personally? NO. There is no way they will allow that to happen. How they do it I have no idea. He's got my vote but that won't be enough. Take care. Steve
@@retirementcorner He's got my vote too, Steve. Covid did terrible damage to our country, and it damaged our election process. I'm proud that some of us survived and we can go on.
He was just in Richmond the other day. Had a niece and her husband went. Place was packed. Long time till November so we'll see but he has my vote anyway. Take care. Steve
All of the investments you spoke of will be racing to zero. You'll be living in your car this time next year. Have you not seen the collapse of the social order? Have you not noticed the wrecked economies worldwide? The collapse of the fiat currency called the dollar is inevitable and math & history proves it. Your normalcy bias will cost you dearly. IMO
A total possibility. Extremely small but a possibility. If the dollar collapses I'll have a lot more to be concerned with than living in my car I believe. If it happens I'll figure things out from there but until then it's Saturday night in Vegas Baby. Good times. 🥳 Take care. Steve
@@retirementcorner Laugh it off. A normie believes, obeys, and supports the establishment and anything non-establishment is smiled off. Big time surprise awaits you and your followers. You might get yourself some thermal car window inserts to make the car dwelling more confrontable.
You must watch Sarasota Tim to see how to CRUSH it at 62 with SSA. You may need $ 10,000,.00 or $ 15,000.00 a month as fast as the dollar is losing value. Keep voting Democrat your standard of living is deteriorating as fast as you are reading this.
What are you doing wrong? My standard of living isn't falling and my net worth has gone up 4x under Biden. Of course my net worth went up under Trump too and Obama and Bush and Clinton and Bush and Reagan. So again, what are YOU doing wrong?
OMG - They claim there be a civil war if Trump loses in 2020. The economy will fall under Biden. The world going to end in 1999. My uncle withdrawal all his retirement savings in 2021 listening to Trump, now like Trump he is cash poor. I warned him trading cash for home equity doesn't improve your net worth. The only way to increase net worth is to pay off debt with income. Now he still in the rat race pass the age of 70. LoL it's the decision you make in life. Try accepting the facts. Your crazy the Democrats are deteriorating the standard of living. Don't hear the rich crying.
My 457 is doing great now. Your Orange Jesus can only do harm to it. And taking SS at 62 is screwing your spouse because you death benefit is capped at the rate you first take it. But that what the Trump fans like I guess. Screwing their loved ones over.
He is single, in debt, broke, living in a camper and asking people to buy him a coffee. If that's crushing it, I want no parts of it. The cost of living will rise during retirement for sure. With the SS COLA, my pension and reserves we shouldn't have any problem making out just fine. Thanks. Steve
You give this a lot of thought. You made the right decision for you and your family.
Just tried to make the best decision for our situation at the time. A little thinking can have a big impact. Thanks. Steve
Steve Hello, first time finding you, and I just LOVE YOU!!!!
Omg you call your wife THE BABY, ooohhhhhh, LOVE IT!
Thank you for teaching!!!❤
🎉Thank for spring forward Sunday, i forgot. Lol
Getting ready to spring forward right now but wanted to get on some comments before heading off to bed. Take care. Steve
Love my 401k. I started right out of college. I did it for 35 years and retired at 57. Folks start early and don’t pull out any until you retire. I have Fidelity and took the monthly option. I chose the amount of monthly income and the percent deduction of Fed and State. I can change at anytime. I am like you I sometimes stop the distributions and take out of other retirement accounts. It has worked so far seven years. My handy excel spreadsheet says the strategy should last until 99. Way past the age I want to get older.
401k's are great for retirement I believe. I love mine. When you're in your saving years the money comes out before you see it, you get matching contributions and interest/dividends. Bonuses all around. Glad to hear things are working well seeing as I'm trying to do the same. Thanks. Steve
Steve, Appreciate you sharing your journey and invoking some good discussion. When i retired at 55 I pulled my 401K and rolled into a IRA with no penalty, was able to diversify it much more than what the 401k offered. I also pulled my pension in a lump sum and put into a lifetime annuity with a long term care rider that doubles the annual payout if me or the wife go into a long term care facility. Due to past health issues LTC insurance is not an viable option so this made the most sense. We don't plan on pulling from the annuity for a few years which will increase the annual payout. We will however take SS at 62 or 63. Anyway everyone has a different way of going about these things and to what makes most sense in each situation.
Exactly! You did what was best for you and your situation. Retirement is different for everybody. No one size fits all. Good for you. Great comment. Thanks and take care. Steve
You are doing the same basic thing I did, I decided to start SS at 65 because of Medicare, me and the wife both get a check and it's worked well for us, Thanks
I have a small pension and a reserve tank if the need arises. So I've got a little help that a lot don't have that just have SS. Sounds like Y'all doing fine. Glad to hear that. Good for you both. Take care and thanks. Steve
Steve, continue to enjoy your video's and insight. I keep telling myself one day I'm gonna reach out and stop by for a glass of sweet tea if you'll have me. I'm not but 90 mins North! Keep it up Brother!
Drop me an email and I'll make a fresh pitcher. On Saturday nights during the summer a local car club has their cars at a Hardees right on the exit off I-95. Ain't 5 minutes from the house. Check the cars out or just sit on the corner and bs for awhile. Take care. Steve
Hi Steve, I'm not there yet just turned 61yrs old. I am starting to do all the leg work. Figuring out what is the best plan. I'm thinking I'll work till I'm 65 yrs old. Take the next 4 years bonuses at work and just put them in CD's until I'm ready to retire. I can work part time and then use the bonus money to keep from drawing my Soc Sec until I'm 66 but then I'd need to take some out money out of my 401k for the next year. I'm hoping to only have to use the 4% rule and have my savings make 5.25% or more to keep up with my deductions. Yes I'll lose some to inflation. I'm not worrying about my money lasting forever. I figure I'll only live between 80 and 85 if I'm lucky. That means my money only has to last 20 years. I plan to work part time in Retirement at something I enjoy. Use that money for health care and Spending money for trips. This is all new territory for me and you only get one shot at it so I hope to get it right.
Have you checked with a financial advisor. They might be able to help you figure things out a little better. I checked with 3 before I made my decision. 2 were a general over view but were free the 3rd I paid for. I figured if they saved me from making a big mistake it would be worth it. They like to use 90 as a default but I personally think early to mid 80's for me also.Don't stress over it to much you can get a do over if your healthy. You already plan to work part time so that should help. Best of luck and take care. Steve
Good luck to you ... just retired four months ago at 61 so i am still learning ... i too spoke with a number of advisors and in the end spent $1000 with one who signed off on my plan ... my plan was basically to retire with no debt, use my 401k and small pension as a bridge till social security (age 67?) when i will be able to live off just pension and me and wife's social security ... the two suggestions i tell people considering retirement are #1 KNOW YOUR EXPENSES and #2 use a comprehensive software package to help evaluate your situation ... i use a paid version of NewRetirement ($124/yr) but they also have a free version that is very good (start with that) ...
i had a great job, but had to drive three hours per day that made me miserable ... i hope you can put yourself in a situation that works great for you ... good luck
Love that you call your wife Baby😊❤️
Thanks for sharing Steve. I've been watching your videos for some time now here in the UK. 👍
Didn't realize you were from the UK I don't believe. I could have just forgot(Retirement Brain). Glad to see you here. She's my Baby. Without her I'd probably be living under a bridge somewhere broke, lonely and hungry.😀 Take care. Steve
Aww that's a lovely thing to say about her 😊
I love my retirement brain 😆😆
Keep up the good work mate I'm watching both of your channels 👍
Keep in mind the cost of living adjustment for SS, so what you see at 67 will be more than the numbers you see today.
True this, SS estimates your estimated future benefits in today’s dollars. With annual cost of living, it’s even better
Annual average COLA over the history of COLA, is 2.5%. Some yrs its higher, some yrs its lower...just an average. Thus if one were to wait til 70 to collect SS, 70 is 8 yrs past 62..so the firmula to figure ones projected SS amt at 70 would be: .025 x 8 = .20, then multuply the est amt ones projected to get by .20, then take that answer n add it to the proj age 70 amt, & thats what one could get when they actually reach 70.
Yeah I got that in mind. My projected SS already went up from when I retired last year. It was just a simple example to show SS would be our biggest income in retirement and we'd still be fine. If I was 67 now and collecting we wouldn't need anything else to make out just fine. Hadn't planned it that way, it's just how it worked out. Surprised me. Still glad I got my reserve tank. Thanks. Steve
Most retirees don’t worry about being wealthy just comfortable, secure and most important good healthcare. Great job figuring things out!
Exactly. Healthy, happy and content was all I was hoping for. The fact that our investments might grow in retirement is an accident and never planned. Just a byproduct of how little it takes for us to be that way. Great comment. Thanks. Steve
As always, good stuff Steve!
Just a little cheat sheet for "Steve's Retirement". Maybe eliminate some confusion for some when I mention my SS, or pension or something. Take care. Steve
I'm stunned as to how restrictive your 401K is. You'd think it was their money being so stingy with it. I'd definitely roll it at 59.5 into your IRA. You got the right take on the rules and you're right you got to know what you're doing, or the penalties are crazy.
It's not ideal for sure but something we can work with. By deciding to retire a little early things aren't quite as straightforward or easy as they could have been if I'd waited a couple years. I have to approach things a little different in order to have the same outcome. My 401k is one but it will straighten out a little next year. Take care. Steve
Thanks for the reminder. I need to contact my plan and make sure I have all my ducks in a row!
Never hurts to double check. Every plan is different so it pays to give it a once over. Might prevent some problems latter on. Take care. Steve
Happy Friday Steve
Same to you Boss. Take care. Steve
Right on, Steve thats were doing also, since I retired , a bridge in affect,,,,,
Hope it doesn't turn into a drawbridge.😃Take care. Steve
You have a sensible plan Steve. You always make sense 👍
Always try to gather as much info as I can and think about it from all angles. With a little expert help now and then it should get me through retirement. Thanks. Steve
Great job, Steve!
Never planed it that way but that's the way it turned out. I do have a small pension and that reserve tank so I have a little help that some on SS don't have. Thanks. Steve
Great video Steve! I ,love your plan!
Dennis
Should work out pretty good I think. My pensions and reserve tank calm my nerves anyway. Take care. Steve
Steve, thanks for your honesty. From N. California where everything is darn expensive! Housing, food, gas, clothes, etc.
That's what I hear. Virginia ain't too bad a place for living expenses. Not being near DC or the beach helps. Pretty easy living I think. Out there and some other places we'd be struggling. Thanks and take care. Steve
You have the advantage of being a smart guy who planned for the future. Knowing you have some margin, that's 90% of how being rich feels, I think.
It sure helps with my comfort level. A couple dollars buffer for if and when life happens makes a world of difference. Thanks. Steve
No Steve you will not living completely off social security at 67 did you forget the “small pension “.
Sorry it was a little windy and my mic ain't the best on the market. I did mention that and included it in my figures. SS would still cover our living expenses but just barely if I was 67 and collecting now. I do have the advantage of my pension and the reserve tank a lot of people on SS don't have. I didn't plan it that way and was surprised it worked out that way. Sorry for the confusion and thanks for the comment. Hope this cleared things a little for you. Take care. Steve
Sounds like the glide path we are on. Going out early and our investments ( 3 IRAs, a 401K that will auto roll to an IRA 60 days after I leave work and after tax brokerage dividend fund) will see us through until turning on SS at 65. My SS alone will more than cover our base household expenses. We will take the dividends and pull a little off our IRAs at that point to supply all our extraneous travel and spending. Should be an easy walk.
Looks good on paper I just hope it transfers to real life. Our SS should cover things I just have to make it there. Thanks. Steve
That’s great Steve, I hope inflation doesn’t eat the rest of it. It’s amazing these last few years how much things have gone up, I know I’ve changed a few habits to curb some of the cost but at some point it’s just gonna catch me.
It won’t if the pension is COLA-adjusted and you live below your means so you can save inflation protection funds.
I hope so also. If We can make it till our early to mid 80's that's all I should need. Take care. Steve
Your social security strategy is GREAT and is going to allow you to handle inflation ...
i really enjoy your relaxed yet thorough approach ... best of luck
I’m in a similar situation. My IRA is just to get me to SS. At that point I can easily live on just SS and leave savings alone to continue growing. I’ll spend that SS down every month. SS will be more than we are living on now while working. Once we back out taxes and savings for our retirement what’s left over isn’t much and that is starting with a nearly 200k household income.
Lots of people bad mouth SS as not enough to live on. Pooy on that. If it’s not enough you’ve got a pretty high life style you’re trying to support.
Hey, good for you! That said, my 90 yo mom’s SS is just over $1250/month. She’s 90, a widow, getting a spousal benefit. Circumstances vary.
Depends on the amount and the persons needs. No different than anything else. Known some that didn't get over 1k in SS. No matter your life style or where you live that won't cut it. It can be plenty but sometimes it ain't. Two SS recipients makes a big difference. Plus I got my pensions and reserve tank if needed. Good for you. Hopefully things will work out for us both. Take care. Steve
Thank you Steve. Good video! Buzz
Just a little cheat sheet to "Steve's Retirement" so people understand what I'm dealing with and why I did what I did. When I mention SS, pension or whatever they get the whole picture. Everybody retires different and it makes no sense unless you have the inside scoop so to speak. Take care. Steve
Yes thank you for this i’ve been on the hunt for retirees who can talk about their experiences withdrawing from their 401(k)’s i’m trying to figure out if this is scam or not. Have like 2 401k’s , 1 IRA & a few high yields but planning my future and trying to figure out how retirement will look. 🎉😊
It's not a scam and lots of people do similar. As long as you know what all it entails it could help someone retire a little early. Check with an accountant or advisor and they can walk you through it. Depending on your age, account types and a couple other things there might be a better option for your situation and they could help figure it all out. This works for us but might not for you.Take care. Steve
@@retirementcorner@retirementcorner Thank you for answering me, Steve! I have major distrust in the financial system as I was scammed recently with the BTX situation and have had family deeply affected by crooked accountants in the past. I'll be beefing up my 401(k)'s and IRA's every year just will be diversifying as much as possible to avoid some of that market risk.
Great video. I’m going to review my company’s 401k plans withdrawal.
The rules maybe different than mine were so it's a good idea to know before you decide. Everybody's is different, just depends on how your company and the handlers set it up. Hopefully you'll have more favorable options for withdrawing. Take care. Steve
Great job, Doc!
Worked out so far anyway. Been lucky. Thanks. Steve
Question for all the town Elders 😂
In hindsight, when you realize Social Security was enough for retirement and not touching any savings, would that make you rethink retiring even a few more years earlier? Again always easier in hindsight.
The earlier you retire, the smaller your SS usually. Maybe not by much but you'll have more zeros on your SS history
For me NO. I wasn't ready and didn't have the desire to retire any earlier. It would've definitely eased any concern I had about finances in retirement. I had planned to retire without SS and had no idea it would be that valuable to me. Always heard it wasn't possible to retire just on SS. In my case that's not quite true. I do have a small pension and that reserve tank if I need them. Take care. Steve
What is your rational for not just spending more in your younger healthy retirement years. I think of retirement us spending what you earned/saved/invested. Just curious why you want to continue to build wealth rather then live it up? I guess reasons could be wanting to leave a legacy to heirs or favorite charities?
Great question and I never really thought about it. No rational for it really. Just have no desire to. We do pretty much what we want, when we want and always have. We're healthy, happy and content. Sorry but that's about the best answer I can give you. I'll think on it and do Monday's video on it. Thanks and take care. Steve
@@retirementcornerThank you. Always enjoy your videos. We are in a spot similar to you but making the choice to spend more and save less. But we have no children to leave it to so figure we might as well spend it - especially since we earned it and invested well. Nice that you are easily contented. All the best to you.
What about long term care? Living it up is fantastic but just don’t forget to plan for later. I recently lost both of my parents 93 and 96 and they spent down their million dollar nest egg on in home nursing care.
@@tombkk1322That is a valid thought. However, we recently put a loved one in a NH. We had a lawyer draw up a "lady bird" deed. Then spent down assets to meet Medicaid criteria. She is in a nice facility, on Medicaid. We (family) pay a small copay based on her income. Upon death, the property will belong to the heirs with no option for the State to lay claim to any proceeds from the sale. In this case spending all she had while she was of sound mind and body was the smartest decision. She enjoyed her savings and still gave the home/property to her family. I want to be the poorest person in the cemetery. Looking very forward to hearing how Steve weighs on on all this.
It is the second time I hear this, 401k withdraws, you don’t have a choice of where the money comes from? That’s dangerous if stocks are way down and they sell stocks, you could loose a lot of money. My 401k has a fixed income fund, I want all my withdraws to come from there, don’t touch my stocks unless they are at an all time high. Can you manually withdraw the money from your fund of choice?
At 591\2 if you roll it to an IRA you can pull from whatever you want
Some 401K's allow you to pull from any fund or across the board.
It's not ideal but it's what I got to work with. My 401k gives me no option/choice yours might. They are all different. That's why it's important to be aware of what yours allows. The day after they pay me I just adjust it how I wanted it done. Simple and easy. Take care. Steve
My 401k finally back up where it was pre-covid. (I'm not retired yet so I'm still contributing.)
What are your investments in within your 401K? In my 401K we are in the S&P Index Fund, after COVID we were back to normal by September 2020. Kicked Butt 2021, 2023 was a down year but 2024 we went up over 20%. All in all we are about 25% higher now than back in 2020 recovery. Please double check what you are invested in. Be carful of Expense Ratio's (ER).
Sorry, 2022 was the down year, 2023 kicked Butt. 2024 looking good so far.
No kidding, is that including your contributions? That took awhile. Shoot me an email maybe we can catch up. That just doesn't sound right. Ran into Lynwood dropping off our taxes the other day. Things don't sound good at the plant. Did it effect you any? How about Wayne? Take care. Steve
Steve: Based on your investment returns, you may consider delaying Social Security past age 67 and going year to year until age seventy. This would provide the largest benefit for your wife to receive from Social Security since the couple's longevity is the most crucial number, with the lower-earning spouse's Social Security going away upon the first spouse's death. While many would say the breakeven age is too high, that breakeven is for the couple, and the probability that two people live at age 65 and one person lives at age ninety is greater than average. That delayed credit at FRA is 8% each year, and that benefit increase was created over thirty years ago when life expectancy was lower, so it is a sweet deal for those who want to maximize their benefit. ( About 10% delay until age seventy ) Thanks for another excellent video, Steve!
Thanks for the help. Believe it or not I've been thinking along that exact same line since I retired. My retirement is fluid nothing wrote in stone and constantly changing. We both turn 67 in 2033 me in Jan and her in Sept. Already moved my pull date to 2034. She will be 67 and me 68. Probably will play it by ear once we get there. Always thinking and adjusting. For me the breakeven point is not a big concern. I look at SS more for financial protection later in retirement. Thanks. Steve
@@retirementcorner Hey, that would be an excellent idea for a future video: You sitting on a three-legged stool and discussing how the third-leg pension gives more flexibility in decision-making.
We think an awful lot a like. Friday's "Flashback My SS" talk about this exact thing.Already had it planned. Don't have a three-legged stool so it will be my rocking chair.@@davidfolts5893
@@retirementcorner Perhaps a small rail to hold while rocking.😀
I need to find out what the rule of 55 entails with my account. Sounds like it might not be so straightforward as I thought.
There is not much to it really but it's a little different than 72t. Best I recall with 72t the payments would have been less than I needed to live and you had to keep taking them for at least 5yrs. or 59.5 whichever is later. Would have been 62 for me before I could roll it. Rule of 55 I can roll it whenever I want and the payments worked better. Need to check and see how your plan works. I checked with my tax and financial advisors also. Take care and good luck. Steve
This is a great strategy for your gap years
Had most of it figured out but I got a little professional help with the polishing. So far things are looking good. Thanks. Steve
I got messed up to, my 401k wouldn't allow me to do partial withdrawals prior to 59 1/2 (TOTALLY STUPID). It would allow me to do full withdrawal into an IRA..but then i wouldn't qualify for the 55 rule. So I ended up having to live off of cash for the next 2 years until I'm 59 1/2 then i can do partial withdrawals............ SO DUMB this is our money!!
That's something else. They don't have to allow a partial withdraw. Just depends on how things are setup. Luckily mine did or I'd had to do the same as you and it would have drained my easy cash. Take care. Steve
Be sure you calculate your future money requirements by using the real inflation rate of 18%
Will do. Thanks for the help. Steve
Live long and prosper!
Doing what I can. Thanks. Steve
Be able to live ONLY ON SOCIAL SECURITY, but have the ability to not.
Didn't plan it that way but that's how it ended up. Thanks and take care. Steve
That highway running through your property would drive me insane!
Really? Lol that's not much
County property not mine. Our yard ends at the tree line. Just a 2 lane road, the highway is a few minutes down the road. People use it for a shortcut to avoid the main road about a mile or so behind me. Gets busy during work times M-F(going to & coming home) after that quite as a mouse. Take care. Steve
@@retirementcorner a lot of American history where ur at, I wouldn't mind
@@retirementcorner My condolences! It just seems so loud. We retirees like a bit more quiet in our last few decades!🤫
401K's are funny things at times. The place I retired from had a great 401 provider that had no restrictions if you wanted to keep your money there in retirement and would allow you to withdraw from any fund you desired or all across the board of your funds. They changed providers two years ago and like your 401, they only allow you to pull money across all funds in the percentage ratio you are set up in. I particularly disliked that in 2002 when everything went down except my Stable Value fund I had wanted to draw from. Worse, by their own words a rollover to an IRA will take up to a month and they insist a paper check be sent by the mail. A paper check in the mail in 2024. All 401k's remove 20% minimum for federal income tax by federal mandate. All the more reason to get it moved to an IRA.
Man that was a great setup you had too bad they switched it up on you. I'll be 59.5 next summer and already planning the roll over. It will slow my burn rate, give me more options and allow me to set my tax rate. The way they do it ain't perfect but it's what I got to deal with for a little while long. Thanks and take care. Steve
Wow Steve enjoyed you sharing your journey, but there's hell fire 🔥 in the comment section!😂
The jealous haters are inevitable w.the territory
Noticed that myself. The trials of being a "Creator"🤣 on youtube. Thanks and I hope your retirement is going great. Enjoy it. Steve
Your take home number ain't nothing to sneeze at. Should make for a very comfortable retirement.
I was surprised. Just went off ssa.gov numbers so if they are anywhere close we'll be fine. Still got a reserve tank just in case. Got 9 more years to go but we'll see. Take care. Steve
🤘
Thanks. Steve
$5000 a month?!!! Ill be lucky if i get $1500 a month from just SS.😢
At $17-18K. a year I would think you could qualify for some state govt assistance, Medicaid etc and possibly partial payment of your medicare costs when you hit 65 depending on the state
That's my SS, the wife's SS and $1500 in pensions at full retirement age(67) after taxes of 20%. It will actually be $4968. Have you checked ssa.gov. You might be surprised. The calculation they use adjust your earnings each year. Add in the cost of living adjustment and I think 8% for every year you wait from 62-70 and it's more than you might think. Take care. Steve
You’re in such a low tax bracket, you should at least convert (Roth) up to the top of it while you are both still alive and not drawing SS or RMD’s. If you die, your wife will be filing single and more than likely be pushed into a higher bracket. If you both live longer, your SS, pension and RMD’s will probably push you into the 22%. And that’s the best case (you don’t die early). Convert to the top of your bracket!
Thanks for looking out for me. This was something that I was concerned about before I retired. Due to the rules of my 401k on distributions, RMD's won't be a problem later on. At FRA very little if any will be left in a taxable account. I'll keep an eye on the laws and changes till then and adjust if needed. Appreciate the help. Take care. Steve
@@retirementcorner yes, I remember you talking about the rules of your 401k. Today was my last day of actual work. I go back 9-3-24 to turn my badge in, but no more actual work. I’m 61, so just a few years older. Everybody’s situation is a little different and not all the rules apply the same. I was able to roll my old 401k from the utility I worked over to fidelity with no issues. Same with my annuity I had when I worked for the contractors out of IBEW local 9. I drew my utility pension at 51, but it just went into my brokerage account. Over the years I converted sone of my iras to my Roth. Still have $500k (plus/minus) in regular ira. Like you I’ll let my SS grow (probably till 67). I’ll live off my municipal (I went to a municipal electric utility 19 years ago) pension and my utility pension if needed. I feel very fortunate to be able to leave the workforce with a somewhat healthy body. I put a ton of overtime (mostly forced) over the 40 years. 58 hour weeks for years at a time plus call outs, weekends holidays, really brutal when I look back in it. I was able to put 3 kids thru big ten universities, buy 7 rental homes and give my family a nice life. What more could a father want.
I hope you have a long and prosperous retirement.
Good stuff Steve. In other news I watched a bit of Uncle Joe last night. He told everyone the economy is booming, things are great & we have nothing to worry about. The lies are sickening & I can’t wait for him to be gone.
Vote for whoever you want. I won't be voting for a wanna be dictator, who is an adjudicated rapist, insurrectionist and business fraud.
👍🏻100% agree
100% disagree
@Abrahams where is the lies. Fact: our economy is the greatest comeback story. Other Develope countries haven't recovered. Fact: we have the lowest unemployment rates in recent history, Fact inflation numbers are lower than expected. Fact using the same method and measure for all prior president. Fact He cover lots of Trump Administration deficit. Fact Trump had created the largest deficit in history for a 1 term president. Yes there still work to be done. Had it been Trump the deficit would have been triple.
Sorry for you being poor and making bad decision in your life. Everyone I know is significantly better than under dementia diaper don the con
you dont actually think theyll let trump back in do you?
That’s what happens when people aren’t going to vote for the traitor. FDT
Personally? NO. There is no way they will allow that to happen. How they do it I have no idea. He's got my vote but that won't be enough. Take care. Steve
@@retirementcorner
He's got my vote too, Steve. Covid did terrible damage to our country, and it damaged our election process. I'm proud that some of us survived and we can go on.
Trump baby!!!
My 457 is doing great now. No thanks for your Orange Jesus.
He was just in Richmond the other day. Had a niece and her husband went. Place was packed. Long time till November so we'll see but he has my vote anyway. Take care. Steve
I just came across your channel. I'm 57 and counting down to Dec 2025 when I will finally call it quits. And Yes the orange man WILL get my vote😊
Btw. Subscribed
@@retirementcorner good luck with that. Hope it works out for you.
Move a percentage into Bitcoin FBTC
Maybe but I doubt it. Thanks for the advice though. Steve
o boy
All of the investments you spoke of will be racing to zero. You'll be living in your car this time next year. Have you not seen the collapse of the social order? Have you not noticed
the wrecked economies worldwide? The collapse of the fiat currency called the dollar
is inevitable and math & history proves it. Your normalcy bias will cost you dearly. IMO
🛸
A total possibility. Extremely small but a possibility. If the dollar collapses I'll have a lot more to be concerned with than living in my car I believe. If it happens I'll figure things out from there but until then it's Saturday night in Vegas Baby. Good times. 🥳 Take care. Steve
@@retirementcorner Laugh it off. A normie believes, obeys, and supports
the establishment and anything non-establishment is smiled off. Big
time surprise awaits you and your followers. You might get yourself some thermal car window inserts to make the car dwelling more confrontable.
o boy
You must watch Sarasota Tim to see how to CRUSH it at 62 with SSA. You may need $ 10,000,.00 or $ 15,000.00 a month as fast as the dollar is losing value. Keep voting Democrat your standard of living is deteriorating as fast as you are reading this.
What are you doing wrong? My standard of living isn't falling and my net worth has gone up 4x under Biden. Of course my net worth went up under Trump too and Obama and Bush and Clinton and Bush and Reagan. So again, what are YOU doing wrong?
OMG - They claim there be a civil war if Trump loses in 2020. The economy will fall under Biden. The world going to end in 1999. My uncle withdrawal all his retirement savings in 2021 listening to Trump, now like Trump he is cash poor. I warned him trading cash for home equity doesn't improve your net worth. The only way to increase net worth is to pay off debt with income. Now he still in the rat race pass the age of 70. LoL it's the decision you make in life. Try accepting the facts. Your crazy the Democrats are deteriorating the standard of living. Don't hear the rich crying.
My 457 is doing great now. Your Orange Jesus can only do harm to it. And taking SS at 62 is screwing your spouse because you death benefit is capped at the rate you first take it. But that what the Trump fans like I guess. Screwing their loved ones over.
Historically, the stock market has always done better under democratic presidents. It’s a fact Google it. I don’t know what he’s talking about.
He is single, in debt, broke, living in a camper and asking people to buy him a coffee. If that's crushing it, I want no parts of it. The cost of living will rise during retirement for sure. With the SS COLA, my pension and reserves we shouldn't have any problem making out just fine. Thanks. Steve