I don't think you should say you're "mean" - from what you've said in other videos you're giving the same advice to clients that you give to your own parents and to me that makes you more caring than mean. Most people are going to do what they want to do anyway, but if no one gives them the honest truth then they go into that decision blindly. I watched this video a couple to times while going through my root software plan. I have many of these things covered, but I love the idea of using our brokerage for LTC planning - it's not that sizable right now but I can see how in the next 10 - 15 years we can add to it to be self insured. This is a topic that has been on my mind since my spouse is disabled and has a much shorter life expectancy and may need some in home assistance (in addition to my help of course.) Thank you Ari!
It sounds like you're reflecting on the importance of receiving honest and straightforward advice, even if it might be perceived as "mean" at times. Honest advice, given with care and consideration for someone's best interests, can indeed be more valuable than simply telling people what they want to hear.
Ari, you just answered the question that I feel like no one else answers!!!! People want to talk in percentages of total portfolio, and I want to know specific amounts! You have addressed that perfectly with living expenses and upcoming one time expenses. About LT care, what a nurse told me is that your particular insurance may not cover the place you want to go to. Check with that institution about what insurance they take. Other problem: They may not have room when you need it. And if they are anything like doctors, they may take it today, but not next year.
@@earlyretirementari. I will make an appointment to come see you and sign up with Root! You guys are way too smart for me to miss this opportunity!
I like your approach about 100% equity if you're 5 years out from retirement. My husband and I have realized that their is no need to be ultra conversative when you're far from retiring. After the market crash of 2008, we went all equities (my husband's strategy) and our retirement accounts have done very well. I've also been tracking our returns and ,yes, about 2.5 years for the turnaround after the market downturn.
Excellent and practical advice, this was a great episode. Good point on the sinking fund, I'm setting up one as well, in particular for those "lumpy expenses". They're all slightly different time horizons though, ranging from ongoing , 1-2 years, 5 years, let's say for travel, a car, house remodel, etc. Just wondering whether it should be a single sinking fund or multiple sinking funds with different asset allocations and separate accounts, yeah it sounds complicated already 😅
One of the best on this topic that I've seen, and I've been watching a LOT of these the last several months! I love that you move quickly without any fluff, but still cover the important points. I think I had started to make things a little too complicated in trying to figure out all of the "buckets" I'll need, and this really clarified some things.
If you ever have more questions or need further guidance as you continue to work on your financial planning, feel free to reach out. I'm here to help! Wishing you all the best on your financial journey!
It's great to hear you found the concept intriguing! The idea of sticking with 100% equities as retirement approaches can indeed challenge traditional wisdom. It often reflects a belief in the long-term growth potential of stocks and a willingness to manage risk through diversification rather than reducing equity exposure. This approach can be particularly appealing for those with a longer retirement horizon or who are comfortable with market fluctuations. Have you been considering this strategy for your own retirement planning?
Ari, thank you, awesome video. You are such a great, talented and educated young professional! Congratulations, keep up the great work. I learn so much from you.
Great video.. as always, I never miss you and James' stuff As I get closer to retirement, I note you often talk about that "super" account.. the brokerage account outside the IRAs. In my final few years, I've been putting everything I can from my employers options into the Roth 401k. Would it be beneficial to reduce that down to the company match, and put the remaining money into a brokerage instead or is the fact that its going into a Roth 401k (after 59.5 years) make that decision unimportant at this point.
Thank you, Ari, wonderful video as always. I am a year and a half from retirement, at which point I will sell a rental and put 300K in a brokerage account. Is it better to use that money to live on for the first few years, allowing my RSA to grow, or to keep it as an emergency fund in case of a downturn?
I want to create a portfolio for my retirement in next 3 years (age 55). What is the ideal portfolio if I’m looking for $200k income per annum? Currently majority of my holding is in real estate that potentially provide rental income of $120k pa while only 10% in cash and another 10% in bonds that generate average 3-4% pa. That mean 80% is in real estate. Total networth $5M
All three kids colleges completely paid for including med school, MBA, and LMFT. Great pension, great 401k, but not much of a “super hero account” so no way of bridging the next few years until we are of age to access our retirement.
Very common. I’ve never heard someone say they wish their brokerage was higher and they didn’t send their kids through school. You did well. Goal is to get most life out of your money, not the other way around.
It sounds like you've made impressive strides in securing your children's education and building a solid retirement foundation. The "super hero account" you mentioned seems like a strategy to bridge the gap until retirement funds are accessible. Have you considered options like taxable investment accounts or specific savings plans designed to provide income in the interim? Each option has its advantages based on your financial goals and risk tolerance. What are your thoughts on how to best prepare for this interim period?
@@liveandretireusa We opened a brokerage account a few years ago but there is not enough in there to live off for the next four or five years so I guess I’ll keep working and contributing.
@@edhcb9359 Some folks stop 401K contributions (over employer match) and just jam it into brokerage for their last couple of years. One other option to increase the superhero account is to sell your house and downsize to rent instead. That is our plan to increase our super hero account and improve our agility in moving around the country/world when we retire. I would rather have an apartment than a house when we decide to slow travel Europe/SE Asia. But we don't have kids so everbody's needs are different.
Joined the academy recently. Followed your directions and the software worked as shown in your videos, except one small thing. The drop-down menu of Investment->Asset Allocation->Target Allocation is greyed out. This is not important as the material there is just informational, and I can get the historical average annual return used in the software, say for a 50/50 asset allocation elsewhere. (I assume the default values are the historical average annual returns given by right capital.)
That’s one toggle that cannot be shifted. You can learn about the assumptions here: help.rightcapital.com/knowledge-base/advisor-portal/assumptions/asset-return/asset-return-assumptions
Retirement is more challenging now than it used to be. I've focused on saving rather than investing, and currently, I have about $400K. With inflation on the rise, I’m considering investing in stocks, but I’m not familiar with effective market strategies.
Thank you for the recommendation. I was curious, so I looked up Annette Marie Holt online. Her consulting page came up at the top, and I’ve scheduled a call. I've heard about advisors before, but none have looked as impressive as she does.
I don't think you should say you're "mean" - from what you've said in other videos you're giving the same advice to clients that you give to your own parents and to me that makes you more caring than mean. Most people are going to do what they want to do anyway, but if no one gives them the honest truth then they go into that decision blindly.
I watched this video a couple to times while going through my root software plan. I have many of these things covered, but I love the idea of using our brokerage for LTC planning - it's not that sizable right now but I can see how in the next 10 - 15 years we can add to it to be self insured. This is a topic that has been on my mind since my spouse is disabled and has a much shorter life expectancy and may need some in home assistance (in addition to my help of course.) Thank you Ari!
It sounds like you're reflecting on the importance of receiving honest and straightforward advice, even if it might be perceived as "mean" at times. Honest advice, given with care and consideration for someone's best interests, can indeed be more valuable than simply telling people what they want to hear.
I love that your content is not cookie cutter! I am 53 and over 80% in stocks hoping to retire at 58!
Ari, you just answered the question that I feel like no one else answers!!!! People want to talk in percentages of total portfolio, and I want to know specific amounts! You have addressed that perfectly with living expenses and upcoming one time expenses. About LT care, what a nurse told me is that your particular insurance may not cover the place you want to go to. Check with that institution about what insurance they take. Other problem: They may not have room when you need it. And if they are anything like doctors, they may take it today, but not next year.
So pleased to hear it and great points!!
A wealth of knowledge with a little humor and good delivery. Very good advice.
Glad you enjoyed it!
I’m retired at 58 and following your recommendations! Thanks Ari!
You’re welcome!
@@earlyretirementari.
I will make an appointment to come see you and sign up with Root! You guys are way too smart for me to miss this opportunity!
@@tonyguy1698 Sounds great!
I like your approach about 100% equity if you're 5 years out from retirement. My husband and I have realized that their is no need to be ultra conversative when you're far from retiring. After the market crash of 2008, we went all equities (my husband's strategy) and our retirement accounts have done very well. I've also been tracking our returns and ,yes, about 2.5 years for the turnaround after the market downturn.
Excellent and practical advice, this was a great episode. Good point on the sinking fund, I'm setting up one as well, in particular for those "lumpy expenses". They're all slightly different time horizons though, ranging from ongoing , 1-2 years, 5 years, let's say for travel, a car, house remodel, etc. Just wondering whether it should be a single sinking fund or multiple sinking funds with different asset allocations and separate accounts, yeah it sounds complicated already 😅
Thank you. I generally recommend balanced (50/50) for 5+ years out and high yield savings with a company like Betterment for anything under 2 years.
One of the best on this topic that I've seen, and I've been watching a LOT of these the last several months! I love that you move quickly without any fluff, but still cover the important points. I think I had started to make things a little too complicated in trying to figure out all of the "buckets" I'll need, and this really clarified some things.
Pleased to hear it. Thank you.
If you ever have more questions or need further guidance as you continue to work on your financial planning, feel free to reach out. I'm here to help! Wishing you all the best on your financial journey!
@@dqretirement tacky
One of your best episodes! Thanks, Ari.
I appreciate that
I like your modern contemporary approach to investing. The ‘100 % equities’ concept as you’re nearing retirement really made me think!
Thank you!
It's great to hear you found the concept intriguing! The idea of sticking with 100% equities as retirement approaches can indeed challenge traditional wisdom. It often reflects a belief in the long-term growth potential of stocks and a willingness to manage risk through diversification rather than reducing equity exposure. This approach can be particularly appealing for those with a longer retirement horizon or who are comfortable with market fluctuations. Have you been considering this strategy for your own retirement planning?
Ari, thank you, awesome video. You are such a great, talented and educated young professional! Congratulations, keep up the great work. I learn so much from you.
Thank YOU so much!
Great discussion Ari.
Thank you so much!
Great video.. as always, I never miss you and James' stuff
As I get closer to retirement, I note you often talk about that "super" account.. the brokerage account outside the IRAs.
In my final few years, I've been putting everything I can from my employers options into the Roth 401k.
Would it be beneficial to reduce that down to the company match, and put the remaining money into a brokerage instead or is the fact that its going into a Roth 401k (after 59.5 years) make that decision unimportant at this point.
I get into this argument a lot at 55. When I retire I want to be on a higher ladder rung than today. Besides emergency fund, 100% stocks baby!!!
Thanks Ari, good points tabled on this video. Rich
Thanks Rich
Thanks Ari for another video with great information!
My pleasure!
Japan had a 30 year downturn to recovery. Usa had something similar last century. 5 year downturn is probably sufficient but not guaranteed.
Thank you, Ari, wonderful video as always.
I am a year and a half from retirement, at which point I will sell a rental and put 300K in a brokerage account. Is it better to use that money to live on for the first few years, allowing my RSA to grow, or to keep it as an emergency fund in case of a downturn?
I want to create a portfolio for my retirement in next 3 years (age 55). What is the ideal portfolio if I’m looking for $200k income per annum?
Currently majority of my holding is in real estate that potentially provide rental income of $120k pa while only 10% in cash and another 10% in bonds that generate average 3-4% pa. That mean 80% is in real estate. Total networth $5M
All three kids colleges completely paid for including med school, MBA, and LMFT. Great pension, great 401k, but not much of a “super hero account” so no way of bridging the next few years until we are of age to access our retirement.
Very common. I’ve never heard someone say they wish their brokerage was higher and they didn’t send their kids through school. You did well. Goal is to get most life out of your money, not the other way around.
It sounds like you've made impressive strides in securing your children's education and building a solid retirement foundation. The "super hero account" you mentioned seems like a strategy to bridge the gap until retirement funds are accessible. Have you considered options like taxable investment accounts or specific savings plans designed to provide income in the interim? Each option has its advantages based on your financial goals and risk tolerance. What are your thoughts on how to best prepare for this interim period?
@@liveandretireusa We opened a brokerage account a few years ago but there is not enough in there to live off for the next four or five years so I guess I’ll keep working and contributing.
@@edhcb9359 Some folks stop 401K contributions (over employer match) and just jam it into brokerage for their last couple of years. One other option to increase the superhero account is to sell your house and downsize to rent instead. That is our plan to increase our super hero account and improve our agility in moving around the country/world when we retire. I would rather have an apartment than a house when we decide to slow travel Europe/SE Asia. But we don't have kids so everbody's needs are different.
Joined the academy recently. Followed your directions and the software worked as shown in your videos, except one small thing. The drop-down menu of Investment->Asset Allocation->Target Allocation is greyed out. This is not important as the material there is just informational, and I can get the historical average annual return used in the software, say for a 50/50 asset allocation elsewhere. (I assume the default values are the historical average annual returns given by right capital.)
That’s one toggle that cannot be shifted. You can learn about the assumptions here: help.rightcapital.com/knowledge-base/advisor-portal/assumptions/asset-return/asset-return-assumptions
@@earlyretirementari Thanks for the quick reply.
Yes, cash flow is definitely king in retirement vs asset net worth. A million dollars in gold bars doesn't pay the monthly expenses!
Retirement is more challenging now than it used to be. I've focused on saving rather than investing, and currently, I have about $400K. With inflation on the rise, I’m considering investing in stocks, but I’m not familiar with effective market strategies.
@IsabellaJane-r4w I looked her up and found her webpage. I’ve already sent an email and scheduled an appointment. Thanks for the recommendation!
Thank you for the recommendation. I was curious, so I looked up Annette Marie Holt online. Her consulting page came up at the top, and I’ve scheduled a call. I've heard about advisors before, but none have looked as impressive as she does.
What exactly happened to your parents? Is there a video? You mention it a lot.
See here: th-cam.com/video/q96L-vLcNXU/w-d-xo.html