This scenario inadvertently demonstrates the benefit of owning a home and having the mortgage paid off in retirement. That home equity can contribute nicely to long term care costs, perhaps enabling self-insuring rather than paying the crazy high LTC insurance premiums.
The "Cash Flow Planner" spreadsheet is missing a couple of equations. In the blue box for Monthly Gifts, type in =C31/12 and the blue box below that (for Property Taxes...) type =C32/12 These are needed to break down the yearly totals you entered in column C by a monthly total. Thanks James!
Great content again! Love your videos. It's not always what everybody wants to hear, but the math is the math and what I think I needed to see most was that if my savings didn't meet the monthly income I needed, I had to work another year or two or change my expenses - Thanks!!!
For the software that we'd get access to with the Retirement Planning Academy, I assume it takes into account that Roth distributions are tax free and how much of SS is taxable, etc? A big drawback of online calculators I've found is they seem to ignore the taxation issues.
Started watching your videos and I’m enjoying them. Retirement Is still a good ways off for me but I had a question. If your assets are significant enough that adding Social Security would not change your life style in retirement. Do you ever recommend to your clients to hold off on taking social security and have it as a back up if the market or other things don’t go as planned?
Overall very good content, did not hear a discussion of the fact that expenses could moderate or go down in the later years of retirement. She may not be spending the projected amounts after she is in her 80s, though healthcare expenses will likely go up.
Great video!! Would you be able to have a review on an income based portfolio where someone plans to live off of a high yielding dividend portfolio e.g. covered call ETFs, BDCs, mREITS, closed end funds? My request is totally self serving 😂 my plan is not to abide by the classic “4% rule” but to create a steady income stream / cash flow and not even touch the principal unless absolutely needed.
the investment % assumption of 6.5% is low. It could be double or triple that amount which would increase the success %. She could also increase the amount of money she has in her taxable account to draw from when the markets are not doing so well in any future year.
Work until you die. Had a friend that was still working at 71. He was drawing full SS at 70. He was finally planning to retire at 75 in 2026. Well, in the summer of 2022 at 71 years old, he was diagnosed with esophageal cancer. He died in March of 2023 at the age of 72. He would never stop chasing the $. He bragged he would bring in more money after retirement than he ever made while working. Father Time and Cancer imposed themselves upin his plan.
Good plan. One most financial advisors would probably endorse. But nothing gives folks the warm and fuzzies more than having money in the bank. Which is why most people won't do that. They always have that, "What if..?" in the back of their heads. What if I have some huge unknown expense? Larger monthly payments won't help me with that. More money in the bank will! Or they have that money earmarked for something. That once in a lifetime trip, or maybe for the kids....and don't want to spend it down on living expenses. In any case, cash money gives you the warm and fuzzies in a way that higher monthly payments can't, even if the higher payments might be wiser.
$197, but I paid two days ago and did not receive access to the software. I sent two emails, no response, maybe a glitch somewhere but the email address I try to log in with is the email where I received the payment confirmation from Root. Yet it says email not registered. My credit card charge posted. I read on the "Academy" comments that those who did receive software access state that the software is a pared down version missing features shown in the videos. Of course I have not seen that for myself because I can't get in.
That is kinda scary at first glance. There isn't a lot of people with passive income streams or a fixed income stream after they retire. Most pensions are a thing of the past. This is a real life example I wanted to see. Someone who didn't get a chance to pay off a house or own a house outright and have to factor that in. Even with a 700K portfolio, she was faced to work longer. That's telling.
Very informative video. I think you are going to get a lot of people mad at you. The median saving for 65 years is around $300k I believe. Many on TH-cam are doing well with $500k or less at their late 50s or early 60s. You are asking someone 67 years old with Medicare and FRA SS plus $750k to work two more years?
Gardening, playing pickle ball, spending time with family. In other words...a life. A life everyone has many while working. 40 hours a week working leaves a lot of free time. Gardening, playing pickle ball, spending time with family is not a full time occupation.
Becky is making $88k a year. Since her take home is probably less than $5000 a month, spending 5k a month after tax is not reasonable. I saw $600 groceries and $400 dinning out. That is a lot for one person. Because she has saved $750k with $80k income, she must have been pretty frugal. This story just does not add up.
Work until you die. Had a friend that was still working at 71. He was drawing full SS at 70. He was finally planning to retire at 75 in 2026. Well, in the summer of 2022 at 71 years old, he was diagnosed with esophageal cancer. He died in March of 2023 at the age of 72. He would never stop chasing the $. He bragged he would bring in more money after retirement than he ever made while working. Father Time and Cancer imposed themselves upon his plan.
This scenario inadvertently demonstrates the benefit of owning a home and having the mortgage paid off in retirement. That home equity can contribute nicely to long term care costs, perhaps enabling self-insuring rather than paying the crazy high LTC insurance premiums.
That is also my plan. No mortgage and self insuring for potential long term care.
i've watched a number of your videos. I think you have some of the most informational videos on YT
you r a good at financial planning - I am a CFP and I enjoy your videos 😊❤
Great Video James. Clearly explained the possible decisions and trade offs to get to retirement.
Thanks James, appreciate you taking the time to do these videos. Very helpful 😊
The "Cash Flow Planner" spreadsheet is missing a couple of equations. In the blue box for Monthly Gifts, type in =C31/12
and the blue box below that (for Property Taxes...) type =C32/12
These are needed to break down the yearly totals you entered in column C by a monthly total.
Thanks James!
Great content again! Love your videos. It's not always what everybody wants to hear, but the math is the math and what I think I needed to see most was that if my savings didn't meet the monthly income I needed, I had to work another year or two or change my expenses - Thanks!!!
For the software that we'd get access to with the Retirement Planning Academy, I assume it takes into account that Roth distributions are tax free and how much of SS is taxable, etc? A big drawback of online calculators I've found is they seem to ignore the taxation issues.
Started watching your videos and I’m enjoying them. Retirement Is still a good ways off for me but I had a question. If your assets are significant enough that adding Social Security would not change your life style in retirement. Do you ever recommend to your clients to hold off on taking social security and have it as a back up if the market or other things don’t go as planned?
Overall very good content, did not hear a discussion of the fact that expenses could moderate or go down in the later years of retirement. She may not be spending the projected amounts after she is in her 80s, though healthcare expenses will likely go up.
Looking at her expenses of $1,000/month for dining out and groceries, it definitely seems like she could get by on $4,500/month. Nice video.
Thanks James, the video was very informative.
Great video!! Would you be able to have a review on an income based portfolio where someone plans to live off of a high yielding dividend portfolio e.g. covered call ETFs, BDCs, mREITS, closed end funds? My request is totally self serving 😂 my plan is not to abide by the classic “4% rule” but to create a steady income stream / cash flow and not even touch the principal unless absolutely needed.
Solid and necessary info James 👍🏻
#4 Root Financial number.
the investment % assumption of 6.5% is low. It could be double or triple that amount which would increase the success %. She could also increase the amount of money she has in her taxable account to draw from when the markets are not doing so well in any future year.
Hmm there doesn't seem to be any real fixed income sources anymore besides SS. Seems to be a really hard definition...
Extremely useful. The use case is the best way to explain these concepts. It is kind of a "story telling". Thanks for sharing
Work until you die. Had a friend that was still working at 71. He was drawing full SS at 70. He was finally planning to retire at 75 in 2026. Well, in the summer of 2022 at 71 years old, he was diagnosed with esophageal cancer. He died in March of 2023 at the age of 72. He would never stop chasing the $. He bragged he would bring in more money after retirement than he ever made while working. Father Time and Cancer imposed themselves upin his plan.
thanks for the video James. may i ask what is total income the taxes were based on?
and health care expense, that is huge
What if she used her investments until 70 and then takes SS so she gets max amount?
Good plan. One most financial advisors would probably endorse. But nothing gives folks the warm and fuzzies more than having money in the bank. Which is why most people won't do that. They always have that, "What if..?" in the back of their heads. What if I have some huge unknown expense? Larger monthly payments won't help me with that. More money in the bank will! Or they have that money earmarked for something. That once in a lifetime trip, or maybe for the kids....and don't want to spend it down on living expenses. In any case, cash money gives you the warm and fuzzies in a way that higher monthly payments can't, even if the higher payments might be wiser.
Thank u
How much does the Retirement Planning Academy cost? And what is the cancellation/refund policy?
$197, but I paid two days ago and did not receive access to the software. I sent two emails, no response, maybe a glitch somewhere but the email address I try to log in with is the email where I received the payment confirmation from Root. Yet it says email not registered. My credit card charge posted. I read on the "Academy" comments that those who did receive software access state that the software is a pared down version missing features shown in the videos. Of course I have not seen that for myself because I can't get in.
I would not want to retire without a paid off home
That is kinda scary at first glance. There isn't a lot of people with passive income streams or a fixed income stream after they retire. Most pensions are a thing of the past. This is a real life example I wanted to see. Someone who didn't get a chance to pay off a house or own a house outright and have to factor that in. Even with a 700K portfolio, she was faced to work longer. That's telling.
What percentage probability of success do you like to see?
Very informative video. I think you are going to get a lot of people mad at you. The median saving for 65 years is around $300k I believe. Many on TH-cam are doing well with $500k or less at their late 50s or early 60s. You are asking someone 67 years old with Medicare and FRA SS plus $750k to work two more years?
Based on their projected monthly expenses, yes. It all boils down to math you see....
Becky trying to work less not more 😅
Gardening, playing pickle ball, spending time with family. In other words...a life. A life everyone has many while working. 40 hours a week working leaves a lot of free time. Gardening, playing pickle ball, spending time with family is not a full time occupation.
Becky is making $88k a year. Since her take home is probably less than $5000 a month, spending 5k a month after tax is not reasonable. I saw $600 groceries and $400 dinning out. That is a lot for one person. Because she has saved $750k with $80k income, she must have been pretty frugal. This story just does not add up.
She'll never be able to retire because she'll be paying rent for the rest of her life.
Work until you die. Had a friend that was still working at 71. He was drawing full SS at 70. He was finally planning to retire at 75 in 2026. Well, in the summer of 2022 at 71 years old, he was diagnosed with esophageal cancer. He died in March of 2023 at the age of 72. He would never stop chasing the $. He bragged he would bring in more money after retirement than he ever made while working. Father Time and Cancer imposed themselves upon his plan.
That’s very sad to hear. I’m glad to be in my 20s and to have the info now, so I can plan down the future.