Retire at 60 with $800k Portfolio - Case Study
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- เผยแพร่เมื่อ 6 ต.ค. 2024
- Are you wondering if you successfully retire on an $800k portfolio? In this video, I walk you through a case study of a couple who had this exact question.
I know that this example won't match your situation exactly, but hopefully it will give you some insight into the different levers or changes that can be made to help you reach a successful plan.
Comment below if you like this style of video!
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Do you like these case study videos? What types of scenarios would you like to see?
I’d like to see a case study where the couple are not the same age. I’m 4 years older than my wife and that has significant impacts on our retirement plans. I’m likely to retire several years before she does and the amount of time she might be subjected single tax rates is likely to be longer than a couple with the same age. I’m planning to do a lot of Roth conversions to at least shift most of my taxable retirement funds to Roth so she won’t have to deal with even higher RMDs down the road.
@1250ships this is a great suggestion! I will be doing an example like this soon. The difference in age can cause tax issues like you mentioned because of RMDs and the Widow's Tax Trap. Thanks!
great work. My husband and I started seriously investing only 15 years ago after we paid off our house. For the last 10 years of those 15, we have put in the max allowed in our 401K's. having a paid for home allows you to really accelerate your savings rate. The earlier you begin to seriously save in your 401K, the quicker you will be able to live off of dividends.
I’d be retiring or working less in 5 years, and considering this financial recession, I’m curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $250K per year but nothing to show for it yet.
Do you have a 401k? you should contribute to your retirement diligently, or better still look into financial planning
case study of some one single would be great! Good job on this one. Thanks!
Great suggestion! I plan on doing more videos for single folks. Thanks for watching.
My plan is 64, and work a seasonal job till age 70, take ss at 67. Like to see more videos. 4k including travel as monthly expenses.
Awesome! Sounds like you are on your way to a great retirement.
@@RetirementAnswers i have 720k so far saved up. The seasonal job should net around 24k.
@@kevinfestner6126 the part-time work early in retirement is such a huge benefit. Keeps you from digging into your retirement savings too much, too soon. Helps eliminate the negative impacts of poor markets at the beginning of retirement. Greta job!
Shouldn’t she take her lower SS first then when he passes early she will get a larger survivor benefit.
Hello. I just discovered your channel. I'm glad I did. I really like this video. Thank you. I love these case study videos. I'm on track to retire by 60 (currently 49) unless I get hit by a Sequence of returns risk in which case I will have to delay retirement. :)
Thanks! Glad to hear these are helpful. Keep up the good work!
Where are the extra dollars needed for medical care cost - estimated to be at least $200K due to medical deductables, dental . for average retirement. My wife wife and I just had some dental work that was $7K (Crowns/root canal). Unfortunately - unless you have a pension and want to retire before 62 - even with no debt - you need a million. As they say a million is nowt what it used to be. Dishartening that you have good savings like this couple and it's not enough. I retired at 60 but had a good pension and retiree medical benefits that bridge my wife and I to medicare (no debt). Lastly - the sequence of returns is a minefield and with a 80% stock allocation don't think I could lay my head down at night and get a good nights sleep!
Yes, lots of variables to consider. Thus, the need for a well thought out plan. Thanks for watching!
One of the better videos on this subject. As an international viewer I would like to see one with no social security contribution. We have superannuation here which is like a tax free 401 on earnings and withdrawals once we retire.
Thanks for this! And yes, I’ll have to learn more about some international considerations.
What a great vides Jacob, nicely laydown all the steps. Easy to follow, Video like this will help most of us to design our own retirement plan.
Glad it was helpful!
This was ABSOLUTELY a SUPERIOR video ... i tend to watch a lot of these type of videos and this was one of if not the best ... (these folks situation was relatively close to my own and that helps) ... the thing that was TERRIFIC about the video is you showed many different situations in a short amount of time (e.g. what if they take SS at 67 and what if they take it at 62, what if they reduced expenses, etc.) and then immediately show the results of the change ... one solution you didn't show, but i believe would be preferable is by delaying when she begins taking SS from 67 to 70 ... upsides from this change could/would possibly be an immediate improvement of overall SUCCESS if both lived a long life, and an insurance policy where if the husband died at 63-69 she could collect the SURVIVAL BENEFIT till she turns 70 at which point she could begin taking her own benefit which would be increased because she delayed taking that benefit ... once again, OUTSTANDING video !!!
@bobackerman54 thank you for this! I’m really glad to hear it was helpful. Great point on delaying her SS until 70 and the survival benefit.
Most people only think about maximizing benefits while they are alive, but delaying would lead to a higher survivor benefit for the spouse. Resulting in more total benefits collected over both life spans. Thanks for the comment!
@@RetirementAnswers i don't necessarily worry about maximizing the amount received, but rather just insuring to the best of my ability that there is enough to live on no matter what happens (although maybe they are the same thing) ...
Yep, totally understand. More money isn't what you want. It's about creating a plan that allows you to sleep at night.
A case study involving a someone on a pension, like a teacher. Great video.
Thanks! This is a good idea. I’ll add it to the list.
I wonder how long John has been making 90k. That's a pretty good salary but a bummer that social security only pays 2200 at full retirement age.
Keep in mind IF you have $800,000 AT 7% compounding it will double in 10 years, OR at 10% it will double in 7 years, OR at 25% it will double in in 4 years. If you can wait to take out money the better off you will be. Alot of video point out that most people take out too much money the first few years causing money not working for you.
Great point. Issue I see often is people getting too conservative in retirement reducing their growth potential. Thanks for watching!
go-go, slow-go and no-go!
Noting lifetime taxes would be informative as well. One reason taking SS later is better aside from a larger benefit. Typically less taxes.
Great point! SS taxation is much favorable than most realize.
if she has a TSP then she was a fed, will she retire, if so she will get a pension + healthcare paid 72% by the gov
My thoughts exactly. Plus as a federal employee she can take a FERS supplement between 60-62. Also can he be on her insurance? I’m at the VA and my wife is covered into retirement on my plan. Perhaps do a video with these changes. Liked the video. ❤❤❤
Great video!
Maybe you can do one for someone with a defined benefit pension?
Thanks! I will be doing a video on a scenario like this soon.
I would think you want to increase spending for possible medical expenses
Good suggestion. I have increased this slightly on more recent case studies I have done. Medical expenses are hard to predict as everyone is a unique health situation. This should be adjusted to meet your individual needs. Thanks!
Excellent. This is what I need. What if they need a new car? Is that buried in there somewhere? Thanks. Subbed. And yes, I need more of this especially with iify, to more or less extent, income.
Thank you! Glad this was helpful. Yes, in this situation, we are assuming a new car is buried in there. If need be, we can pull back on other discretionary spending for a short time to buy the car.
I will definitely be doing more of these. Stay tuned!
Great video, I’m about 2 years out from retirement at 60, hopefully. What software package are you using ?
Thanks! This Right Capital. Financial planning software for advisors.
Is this tool free to use?
Love the videos
Glad you are enjoying them! Unfortunately it is not... It's for financial planners and I don't think it is available to the public.
You can never have enough money. Right now your money is loosing 5% do to inflation. So just the cost of EVERYTHING will cost 5% EACH YEAR. (It was 2%) If you not have 2.5 Million OR MORE you are in trouble. Taxes on homes are going up . Your tax on you home might be `~4000 a year. Your Pill you take ~$80. a month. Its nice to tell people Yes but if you live a long time you might have problems. Heating bills are going up ,
Thanks
You’re welcome! Glad this was helpful.
What am I missing here? These people should be completely fine, it shouldn't be a question. Assuming they're drawing down on the $800k for the next 10 years while making a 4.5% return they should be able to withdraw $61k a year. They'll be eligible for full SS benefits in 9 years, at that point they should still have over $500k in retirement which should result in a $40k per year drawdown. If they need more or miss return expectations, Chris can take his SS at 65 when both of their healthcare costs are reduced.
You can get 4.5% easily from dividends and never touch the 800k.
@@MuzixMaker Absolutely, but I was assuming a higher living expense.
Not important to us to leave anything to anyone else!!!!
Good
Yes, absolutely a great job my man 💰👏🧾
Thank you! I’ll be doing more of these.