People grappling with the difficulty of meeting essential expenses often encounter this situation due to inadequate savings during their working years. The decisions taken in readiness for retirement carry extensive consequences, as demonstrated within my own family dynamics. Differing investment approaches yielded disparate results. Guided by a financial advisor, I'm currently retired.
Indeed, that's accurate. I'm currently in my mid-50s. My wife and I were on a similar path until a couple of years ago when I decided to shift my investments to her wealth manager. While I haven't quite caught up to her accumulated profits over the years, I'm at least earning more now. I'm generating income even before retirement, and my retirement fund has experienced remarkable growth compared to what it would have with just the 401(k). It's quite amusing.
It's regrettable that many individuals lack access to such insights. I understand why people might become anxious. Insufficient information can indeed pose significant challenges. Personally, I've been able to generate over $25k passively simply by investing through an advisor, and the best part is, I don't need to exert much effort. Regardless of economic fluctuations, skilled wealth managers consistently deliver returns.
Finding financial advisors like Melissa Terri Swayne” who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Election is one of those things that could really contribute to portfolio growth and vice versa. I've been going hard with my investments this year and have been able to build up to 180k, Are there tips I could apply to help me grow my portfolio even more during this election season?.
If you are in cross roads or need sincere advice on the best moves to take now its best you seek an independent advisor who knows about the financial markets. It's better to hire a skilled financial planner especially if you're not one yourself. I hired one, after my retirement pension took a hit in April due to the crash.
How can I participate in this?... I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
My CFA ’Gabriel Alberto William a renowned figure in his line of work. I recommend researching his credentials further. he has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I’m just interested in what people buy?? I hate travelling… if you gave me $10,000 cash and dropped me at a shopping mall I would be able to spend more than a grand… what do people buy?? Dinners out?? How many cars watches tvs or computers can one own… I guess healthcare and kids-grand kids stuff and stuff like that but at 65 years old I think it’s rather odd to want more “stuff”
They buy insurance 1k+, income tax, property taxes, vacations, car payments, college tuitions, car repairs, house repairs, that 4% mortgage (not going to pay that off), medications and healthcare not covered, dentistry, sick pets, gasoline, heat, electric (in CT average for 4 bed house is around 600 a month), giving cash gifts to relatives, .
I'm spending Half of that now! Roll in a new car, a nice vacation every year and a major renovation, All of a sudden, it doesn't sound like so much, ESPECIALLY 10 Years from now!
Ari: As usual a great piece of content. This video really spoke to me, I'm in this exact spot. So much so that I followed the link to book a call. Honestly, I didn't expect that the bookings would be out that far. I'm kind of a spur of the moment guy so I stopped shot of booking only because I would hate to have to cancel because I forgot and was off spelunking in Norway....that's a joke, I have never spelunked. Anyway, I do have one question. Is there a charge for this preliminary call, I imagine there is.... something between the cost of a lawyer or a Swami (I think of you as a Financial Swami) Any info would be great.
Thank you! Feel free to email me if you want to chat sooner as cancellations do arrive. There’s no charge for the first conversation - that’s to determine if there’s a potential to work together and go over our process!
@@earlyretirementari Ari: Thank you so much for responding so quickly. Yes, I will reach out with an email after the holidays and the New Year is a bit behind us. I'm looking forward to our conversation. Thank you for your time....Stan M.
Thank you. This is exactly my numeric goal. I learned quite a bit in this video. It’s not that crazy bc it is $300,000/year. The problem is I would like to have this AFTER taxes.
Thank you! Just was listening to a discussion of retirement security vs retirement independence! Interesting! They discussed that only a proability in the 90% or greater for a successful retirement. That sounds like a potential boring retirement to me!
This is my fifth year after retirement. I’ve been following the 4% rule thing I saw on a TH-cam channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.
Not a lot of people are able to save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
I’m closing in on retirement, too, and I have benefitted so much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who had been investing for many years.
I'm making more money at this stage of my life than I ever could have imagined in my younger days, and still fall short of $25k a month. _Well_ over 15k though. My current target retirement budget is 15k. Not sure if I can pull it off, but that's the target.
Why in the world would anyone need to spend $25k a month? I don't spend more than $3k and have a perfectly acceptable life. My house is paid off, my bills are low and we have more than enough food.
@@deanlol if you can afford it and you earned it why not. it is not a character flaw if you want to spend money you earned and invested. just because you live on 3K per month in retirement doesn't mean everyone wants to. i started my retirement with $10575 per month after taxes( that was with a conservative draw) and have since increased it.
@@Random-ld6wg , I'm working hard and investing so I can be in the same position as you are when I retire. I know I personally won't need as much to live comfortably. But I want to be able to help friends, family, strangers, charities if my portfolio can support it. So, I will aim for that goal.
@Random-ld6wg ok that's great for you. But the video asks, how much do you need to spend $25k/month. It seems to me if you don't already know the answer to this question, you don't have it. My point is, you don't NEED 25k a month. If you have it, great go buy a boat or a beach side condo or a new muscle car. But those aren't needs. If you have nearly $11k a month, great for you. Waste it on whatever impulse satisfies your hearts desire.
@@deanlol a lot of people make statements similar to yours and will say " i live on so and so a month and then SANCTIMONIOUSLY say why would anyone need to spend so and so a month." it all depends on one's lifestyle. who are the people that need to spend that much? the people that are accustomed to and can afford that much. people that earned 400K and saved and invested can comfortably spend that much and more. i never earned that much but i can certainly see people spending that much in retirement. when i met up with colleagues for dinner shortly after i retired, they asked how much i had set for my monthly draw and thought they can live on 11K a month. i told them "not with your lifestyle , you can't live on that. that will be a significant stepdown from your current lifestyle". they were earning a lot but spent a lot with luxury cars changed every few years , frequent international trips staying in fancy hotels, dining in michelin restaurants during those trips, expensive private schools for the kids, expensive houses with frequent renovations( they'll pick up more extra shifts when they are funding another renovation) and secondary homes. they probably need more than 25K per month. it is simple to figure out how much you need for 25K per month. if no pensions or SS yet and assuming all assets are in tax deferred IRAs/401ks and talking about pretax 25k/month then 300K/.04 is 7.5M, if you subscribe to the 4% rule which is just a general guideline. if it is post tax then an effective tax rate of 20.3% on $376411 will leave $300,000 to spend in 2024 MFJ tax rates (for simplicity never mind any standard deduction) so again if you use the 4% rule then you'd need $9.4M. you can frontload your spending during your gogo years and spend more initially with a smaller nest egg knowing you'll spend less later on due to the retirement smile. you don't have to follow the 4% rule. you can use guyton klinger guardrail strategy and use much higher withdrawal rates initially up to 5.6% with a 40 year retirement 95% success rate for a portfolio of 80 equities/10 bonds/10cash. is it too conservative aiming for a 95% success rate? bring it down to 90% success rate for the same portfolio for an initial withdrawal of 6.3%. using the 5.6% intital withdrawal rate for post tax spending of 300K then $6.72M or $5.975M if you go with a 6.3% withdrawal rate but you can have your draw go up or down depending on the market. if you have those amounts and you buy a beach side condo then you can't spend the 300K per year post tax that we are discussing since you are removing money working for you and sticking it in your vacation home.
That is right around our goal, but ours comes with a catch - pensions! Will we spend $20k-$25k a month? I have no idea! I do know that there will be some months we will do that, but maybe around $12k-$15k a month is more the norm of what we'll spend!
ur smile chart looks WAY OFF… from 60 to 75 the logo is your active years but the chart drops like a rock during those active years… I dont think that chart is a good one…. active years on a bike logo should be going up.. please explain ????
So much of this depends on assumptions about returns on investments. Just one or two percent, or a couple of years with bad sequence of returns, can cause a dramatic swing in portfolio value. What assumptions are you using for returns?
My suggestion is if you’re thinking about 20 to 25 make your fixed cost between 10 and 15. Gives a little lee way when the markets are down If you’ve got 5 million saved you should also get around 4 grand in SS with 85% taxable.
Why is it that the plan can show $9+ million at longevity age but the withdraw rates each year are 11%. If those withdraw rates are unsustainable, would the plan show the person running out of money?
$25K?! I’d need at least $50K per month just to get a subway ticket to get to the parking lot of the ball park of a comfortable retirement! Let’s see how long we can keep this going! 😂
People grappling with the difficulty of meeting essential expenses often encounter this situation due to inadequate savings during their working years. The decisions taken in readiness for retirement carry extensive consequences, as demonstrated within my own family dynamics. Differing investment approaches yielded disparate results. Guided by a financial advisor, I'm currently retired.
Indeed, that's accurate. I'm currently in my mid-50s. My wife and I were on a similar path until a couple of years ago when I decided to shift my investments to her wealth manager. While I haven't quite caught up to her accumulated profits over the years, I'm at least earning more now. I'm generating income even before retirement, and my retirement fund has experienced remarkable growth compared to what it would have with just the 401(k). It's quite amusing.
It's regrettable that many individuals lack access to such insights. I understand why people might become anxious. Insufficient information can indeed pose significant challenges. Personally, I've been able to generate over $25k passively simply by investing through an advisor, and the best part is, I don't need to exert much effort. Regardless of economic fluctuations, skilled wealth managers consistently deliver returns.
I need a guide so i can salvage my port-folio due to the massive dips and come up with better strategies. How can one reach this advisor?
Finding financial advisors like Melissa Terri Swayne” who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Election is one of those things that could really contribute to portfolio growth and vice versa. I've been going hard with my investments this year and have been able to build up to 180k, Are there tips I could apply to help me grow my portfolio even more during this election season?.
If you are in cross roads or need sincere advice on the best moves to take now its best you seek an independent advisor who knows about the financial markets. It's better to hire a skilled financial planner especially if you're not one yourself. I hired one, after my retirement pension took a hit in April due to the crash.
How can I participate in this?... I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
My CFA ’Gabriel Alberto William a renowned figure in his line of work. I recommend researching his credentials further. he has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Thank you for putting this out, it has rekindled the fire to my goal
Thank you Ari. The wife and I were literally doing this analysis this weekend - and battling with the same questions.
You’re very welcome 😊
Thank you for the educational content! I love the cauliflower t-shirt, have to find one 🙂
@@reesesha2289 Ha thank you
Thank you for this! Exactly what we are shooting for.
My pleasure!
I’m just interested in what people buy?? I hate travelling… if you gave me $10,000 cash and dropped me at a shopping mall I would be able to spend more than a grand… what do people buy?? Dinners out?? How many cars watches tvs or computers can one own… I guess healthcare and kids-grand kids stuff and stuff like that but at 65 years old I think it’s rather odd to want more “stuff”
You would be amazed
They buy insurance 1k+, income tax, property taxes, vacations, car payments, college tuitions, car repairs, house repairs, that 4% mortgage (not going to pay that off), medications and healthcare not covered, dentistry, sick pets, gasoline, heat, electric (in CT average for 4 bed house is around 600 a month), giving cash gifts to relatives, .
Interesting. Thank you
I'm spending Half of that now!
Roll in a new car, a nice vacation every year and a major renovation,
All of a sudden, it doesn't sound like so much, ESPECIALLY 10 Years from now!
Ari: As usual a great piece of content. This video really spoke to me, I'm in this exact spot. So much so that I followed the link to book a call. Honestly, I didn't expect that the bookings would be out that far. I'm kind of a spur of the moment guy so I stopped shot of booking only because I would hate to have to cancel because I forgot and was off spelunking in Norway....that's a joke, I have never spelunked. Anyway, I do have one question. Is there a charge for this preliminary call, I imagine there is.... something between the cost of a lawyer or a Swami (I think of you as a Financial Swami) Any info would be great.
Thank you! Feel free to email me if you want to chat sooner as cancellations do arrive. There’s no charge for the first conversation - that’s to determine if there’s a potential to work together and go over our process!
@@earlyretirementari Ari: Thank you so much for responding so quickly. Yes, I will reach out with an email after the holidays and the New Year is a bit behind us. I'm looking forward to our conversation. Thank you for your time....Stan M.
Thank you. This is exactly my numeric goal. I learned quite a bit in this video. It’s not that crazy bc it is $300,000/year. The problem is I would like to have this AFTER taxes.
Everything I show is after taxes adjusted due inflation.
Thank you! Just was listening to a discussion of retirement security vs retirement independence! Interesting! They discussed that only a proability in the 90% or greater for a successful retirement. That sounds like a potential boring retirement to me!
Sounds boring to me - and too much $ not spent on what you care about most. YOU!!
This is my fifth year after retirement. I’ve been following the 4% rule thing I saw on a TH-cam channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.
Not a lot of people are able to save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
I’m closing in on retirement, too, and I have benefitted so much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who had been investing for many years.
@@mellon-wrigley3 That does make a lot of sense, unlike us, you seem to have the Market figured out. Who is this consultant?
My CFA Izella Annette Anderson a renowned figure in her line of work. I recommend researching her credentials further.
Thank you for this amazing tip. I just looked the name up and wrote her.
Dang more spam bots than real comments, reported, but doubt it does any good. Thanks for the great info Ari!
to spend 25K/month, they have to liquidate more than that as you have to pay taxes on your withdrawal as well, assuming no pension or SS.
I'm making more money at this stage of my life than I ever could have imagined in my younger days, and still fall short of $25k a month. _Well_ over 15k though. My current target retirement budget is 15k. Not sure if I can pull it off, but that's the target.
What is the average rate of returns this calculation is considering post retirements, on the investements ?
6% - conservative for a moderate allocation.
If you factor in a pension and Social Security, it would be much less based on those figures.
What’s your default rate of growth pre retirement ?
6
@@earlyretirementari that’s pretty low !!
Why in the world would anyone need to spend $25k a month? I don't spend more than $3k and have a perfectly acceptable life. My house is paid off, my bills are low and we have more than enough food.
@@deanlol if you can afford it and you earned it why not. it is not a character flaw if you want to spend money you earned and invested. just because you live on 3K per month in retirement doesn't mean everyone wants to. i started my retirement with $10575 per month after taxes( that was with a conservative draw) and have since increased it.
@@Random-ld6wg , I'm working hard and investing so I can be in the same position as you are when I retire. I know I personally won't need as much to live comfortably. But I want to be able to help friends, family, strangers, charities if my portfolio can support it. So, I will aim for that goal.
@Random-ld6wg ok that's great for you. But the video asks, how much do you need to spend $25k/month. It seems to me if you don't already know the answer to this question, you don't have it. My point is, you don't NEED 25k a month. If you have it, great go buy a boat or a beach side condo or a new muscle car. But those aren't needs. If you have nearly $11k a month, great for you. Waste it on whatever impulse satisfies your hearts desire.
@@deanlol a lot of people make statements similar to yours and will say " i live on so and so a month and then SANCTIMONIOUSLY say why would anyone need to spend so and so a month." it all depends on one's lifestyle. who are the people that need to spend that much? the people that are accustomed to and can afford that much. people that earned 400K and saved and invested can comfortably spend that much and more. i never earned that much but i can certainly see people spending that much in retirement.
when i met up with colleagues for dinner shortly after i retired, they asked how much i had set for my monthly draw and thought they can live on 11K a month. i told them "not with your lifestyle , you can't live on that. that will be a significant stepdown from your current lifestyle". they were earning a lot but spent a lot with luxury cars changed every few years , frequent international trips staying in fancy hotels, dining in michelin restaurants during those trips, expensive private schools for the kids, expensive houses with frequent renovations( they'll pick up more extra shifts when they are funding another renovation) and secondary homes. they probably need more than 25K per month.
it is simple to figure out how much you need for 25K per month. if no pensions or SS yet and assuming all assets are in tax deferred IRAs/401ks and talking about pretax 25k/month then 300K/.04 is 7.5M, if you subscribe to the 4% rule which is just a general guideline. if it is post tax then an effective tax rate of 20.3% on $376411 will leave $300,000 to spend in 2024 MFJ tax rates (for simplicity never mind any standard deduction) so again if you use the 4% rule then you'd need $9.4M. you can frontload your spending during your gogo years and spend more initially with a smaller nest egg knowing you'll spend less later on due to the retirement smile.
you don't have to follow the 4% rule. you can use guyton klinger guardrail strategy and use much higher withdrawal rates initially up to 5.6% with a 40 year retirement 95% success rate for a portfolio of 80 equities/10 bonds/10cash. is it too conservative aiming for a 95% success rate? bring it down to 90% success rate for the same portfolio for an initial withdrawal of 6.3%. using the 5.6% intital withdrawal rate for post tax spending of 300K then $6.72M or $5.975M if you go with a 6.3% withdrawal rate but you can have your draw go up or down depending on the market.
if you have those amounts and you buy a beach side condo then you can't spend the 300K per year post tax that we are discussing since you are removing money working for you and sticking it in your vacation home.
What about taxes an RMDs?
That is right around our goal, but ours comes with a catch - pensions! Will we spend $20k-$25k a month? I have no idea! I do know that there will be some months we will do that, but maybe around $12k-$15k a month is more the norm of what we'll spend!
You need to watch this: th-cam.com/video/oQS3EmW1DF8/w-d-xo.htmlsi=c1dVDIOZr_mQ_hci
ur smile chart looks WAY OFF… from 60 to 75 the logo is your active years but the chart drops like a rock during those active years… I dont think that chart is a good one…. active years on a bike logo should be going up.. please explain ????
So much of this depends on assumptions about returns on investments. Just one or two percent, or a couple of years with bad sequence of returns, can cause a dramatic swing in portfolio value. What assumptions are you using for returns?
Moderate - 6%
Balanced - 5%
Conservative- 4%
Thanks. I'm assuming that's nominal and not real, since you don't mention inflation. Are you using 2% for inflation, or more?
@@toddbarney4738all numbers are inflation adjusted in his analysis.
My suggestion is if you’re thinking about 20 to 25 make your fixed cost between 10 and 15.
Gives a little lee way when the markets are down
If you’ve got 5 million saved you should also get around 4 grand in SS with 85% taxable.
Not a bad idea!
@@earlyretirementari I live on about 20 a month
Sometimes a little more sometimes a little less
Black friday sale on the retirement software. DO IT.
Done. Code: OPTIMIZE20
What does that mean? They sell retirement software?
@ they offer a prodcut called retirement planning academy, it includes use of the software they use in the videos.
@@earlyretirementarihow much? Can we demo it? I need an app that can model customized withdrawals.
@ no demo, it’s here: ari-taublieb.mykajabi.com/early-retirement-academy
Why is it that the plan can show $9+ million at longevity age but the withdraw rates each year are 11%. If those withdraw rates are unsustainable, would the plan show the person running out of money?
No. They’re being forced to take out more than necessary. Withdrawal rate increases due to RMDs and desired spending.
Generally, get all the money to Roth (in tax efficient way, slowly)
Correct
@@earlyretirementarithanks for the video! ❤️
Just need the strategy that covers that cauliflower in melted cheddar.
Ha!
As long as I don’t have to eat cat food and drink tap water I’m good
$25K?! I’d need at least $50K per month just to get a subway ticket to get to the parking lot of the ball park of a comfortable retirement!
Let’s see how long we can keep this going! 😂
30 years from now this will be the equivalent of $10k/mo today. That's scary.
His anyalysis is inflation adjusted. The end number is pure dollars. But the spending is adjusted.
This is really out of touch with the general population, 200k or 300k a year is crazy
Silicon Valley is a crazy place. 500k there is like 100k almost anywhere else.
Wife and I are at $300k between pension and social security in a few years, not even touching the 401ks/457s. Just plain old jobs.
@@edhcb9359 that’s amazing, i don’t have pensions, my max ss is only a little over 4k a month
@@NotThatKraken oh, that makes more sense now
@@_mikishi_, you are correct. This was a use case for the top 1-2% and not the general population.
$25K per month = $15K per month after tax. Depending the state you live in.
This is post-tax
If you still have a mortgage costing close to $12k per month, you probably shouldn’t be retiring.
The question should be: Why do you need to spend $25k/mo in early retirement ? 🙄
Because you have $8,000,000?
Guess before watching... $6M.
LOL. $25k per month? How is it possible to even spend that much?
Get a boat. 😄