In 1990 the builders motto was “your house should reflect your success in life. -the bigger the better. I got taken in. Do not get over housed and highly mortgaged Happiness is a comfortable size house and mortgage free. Also buy a two year old car and drive it for ten years Finally no costly toys You never know what lies ahead
we operate differently in Australia - start out with and possibly stay with a basic 3 bedroom house - one toilet, one bathroom. 4 children share 2 bedrooms. Plenty of backyard or nearby parklands.
@@audreyandrea460 travel includes on foot, bike or bus too. Everyone needs a change in perspective. Now go impress yourself, get away from this device for a day.
Seven years after retiring, I became virtually debt-free. Claimed my RN pension at age 55, as I already had 30 years of service at my employer .At 62 I claimed my Social Security benefits. In the subsequent 9 months,with Social Security benefits as my second income stream,I cleared all my debts. Am replenishing my savings and it feels wonderful.
I retired at 68, after 52 years in the workforce, in 2019. I had put myself in the position of having no debt and am in good health. All my household bills (utilities, insurance and taxes) total less than 15% of my monthly SS income alone. I still save, have a cash emergency fund and I'm enjoying my retirement to the max!
actually, this is possible, in a paid off house, and depending on where you live. A your mileage may vary. I doubt you could do this in New York or New Jersey! my baselines: Mortgage: 0 Electricity: 8.18 - solar. and I leave the lights on. system is paid for. Gas: 35 Water: 30 Though, I need to not over water the garden in the summer. Trash: 15/month (highway robbery!) Insurance: 75/month Property Tax: 180/month. of course, it goes up if I count a specific budget for home improvements or repairs. But baseline taxes, insurance, utilities... the house... it's not brand new, about 30 years old. Updated over the years, 2 year old roof, 10 year old mechanicals, half acre and it's not a single wide.
Social Security only for us as well -- mid-sixties with $5,374 in monthly SS. Zero debt. General fixed expenses: $16,488 Groceries/Entertainment/Dining: $24,000 Travel/Gifts: $24,000
Hi Geoff! Thanks for another great video. I retired end of May with oveer 38 years working in insurance. My wife and I are debt free and have been for a couple years. She plans to follow me into retirement in one to two years. I just purchased a used Luxury SUV (2021) with a year of new car warranty and two years of certified warranty. The car was a lease and only had 5600 miles from new. I had put a deposit on a new SUV, but couldn't justify the additional expense of new when this vehicle ($5k less) did "it all" as well. The one thing you missed and is SO IMPORTANT is your health. Maintaining good physical and mental health are critical. NOT doing so is catastrophically expensive. Work on your health as well as these five for ultimate security in retirement. Cheers!
My husband and I have never carried credit card debt-we always pay off the cards monthly! And one of the best decisions we made was to refinance from a 30 year fixed mortgage to a 15 year fixed. The house has been paid off for several years now and that allowed us to pay for the kids' colleges without hardship!
Marginal utility is a great concept. I got into serious road biking at the start of the pandemic. I bought a 12 year old road bike that originally sold for $4500 for $500. Last month I began to think about getting a new road bike. The bikes that are better than the one I own are about $5k. I finally decided to ditch the idea of a new bike because it wouldn’t provide me $4500 of additional enjoyment above what I have now. I can live with the old bike; it provides what I need.
@Niklas Gerhard *Alicia Seda* is one of the best Professionals on bitcoins I know. She has a way of making huge revenue in just one week. She is my investments manager. Her services assures you interest, daily and weekly.
Diminishing Return: I really wanted a cool “toy” car. I looked at lots of options. I ended up with a Mustang GT convertible. Other cars were 2-3X in price but not 2-3X in the fun factor (my goal). I bought used and paid cash. I discovered Mustang clubs, I loan it out to friends, and love driving it. Right now, my friend Myron and his wife are having a blast with it up north. That is part of the “fun factor” for me (something that wouldn’t work if it was a “supercar”).
As a soon-to-be retiree, keeping my 401k on track after a bumpy 2022 is a high goal. I've read about investors generating up to $250k ROI in this present sinking market; any suggestions for increasing my ROI before retirement would be greatly appreciated.
there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
She appears to be a true authority in her profession. I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. She owes me a fiduciary duty to act in my best interests. I set up an appointment to use her services.
I am amazed that most people need to ask their financial planner if they have enough money to retire or if they have enough money to purchase something. I have been my own financial planner for over 30 years and I am kicking azz-:) And I managed a warehouse. I am not some college educated person. I went to the school of hard knocks and won-:)
I see it has been said, but I will mention also. I have always lived below my means and I gain a sense of security from that as I see money saved and invested consistently growing as I approach retirement.
13:28. To track spending, I recently started using my bank's website. It makes it easy to designate transactions for various categories, and gives me a cumulatuve pie chart. I can compare with previous months. When I started this, my expenses went down significantly. It also allowed me to more accurately predict weekly expenses like food, gas, and a little mad money. This allows me to withdraw cash for those items to control spending while robbing Peter to pay Paul for extras without falling into debt. It's a fun game that works for me. This often reminds me of what you said in one of your other videos: "Every dollar has a job." Thank you so much for sharing your wisdom -- helps me every day. -- a single retired RN and grandmother.
I am a new viewer and I appreciate your explanations. I’m no dummy, but finance always made my eyes glaze. You make this topic so much more understandable. I was particularly impressed when you mentioned tracking spending. I’ve been a member of several support groups for years, one of which deals with money. “Keeping my numbers”, by writing down what comes in and what goes out was life-changing. Thank you so much for your work.
Thanks for the wisdom/knowledge you imparted in this video! One philosophy that I operate under is "Pound wise, penny foolish". That is to say, if its not very expensive and you're not going to buy it frequently, go ahead and enjoy it. On the other hand, if its going to be a major purchase, say over $100, then think about it for awhile, maybe a few days. If you still feel you want to buy it after your heads cooled down, then go for it. Most of the time, this has been effective in preventing a bad purchase.
One thing that my wife and I have practiced that has worked out well for us is that we purchase good quality stuff. Yes, we do pay bit of a premium for this, but in the long run it is better than purchasing junk and replacing it 5 or six times because of lack of durability. I the long run our cash outlay is less this way.
62 and 8 months. Will begin receiving Surviving Spouse SS payments in August. My husband passed away 1 month ago. Retired CFO. He took good care of my stepchildren’s and my financial future. He was very physically active but cancer took his life. RIP
I’m sorry you lost your husband. Please carry on in his honor and out of respect for him - you know that’s what he would want you to do. Sounds like a good guy……..and I’ll bet he loved you and your children very much. Damn cancer. 🇺🇸
We retired in 2020 and had paid off the mortgage a year earlier. I manage the money and let my wife know what is going on with bills and investments and retirement income and we regularly talk about them. I know the credit card balances and pay dates as well as the checking account balance. I know when the various insurances and property taxes are due. I know the monthly utility bills and vehicle registrations as well. I have set up the bank to auto pay most of our bills. The key is to know all this information so that there are no surprises. Another thing that will help a lot is to lose weight and eat better. Managing all of this takes time, but in retirement, you have a lot of time and therefore, life should be fairly easy.
TED...some thing to consider...while you are able to do all these things today, what plan do you have for the onset of dementia or cognitive decline? I am 72. I have more financial education that 99% of Americans, as I am a college professor who has taught financial planning and retirement planning for the past 14 years. Prior to becoming an academic, I was a financial services professional for 12 years. Prior to those two careers, I spent 28 years in banking and finance. It is great that you have your financial dates and amounts and a plan in place...today. But if you passed tonight, would your spouse be able to replicate your capabilities? Continued success in your retirement.
I agreed to that. I recently replaced washer, dryer and freezer. A/C and stove will be next before I retired at 66 and a half Appliances are expensive these days and being in debit with these is like asking bankrupcty. Car needs to be paid as well
Don't forget a retirement plan for your oral health. I recommend to my patients that they get their teeth fully fixed prior to retirement. That way all they have to is maintenance visits during retirement.
Thank you. Just what I needed to watch. My wife and I are directors of our farm business and own property, plus small pensions. I am nearly 55, my wife is 52. We have started to save to retire from the farm, and possibly live on rental income, I'd really appreciate you go LIVE and talk about how to earn passive income online and retire comfortably, let’s say $1M.
It isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing.
@@jessicasquire I totally agree, I'm 60 and newly retired with about 1.2 million outside retirement funds, no debt, and very small dollars in retirement funds compared to my portfolio balance over the past 3 years till date. tbh, the role of the investment advisor can only be overlooked, not denied. just have to do your research in finding a reputable one.
@@patrickbrussels4454 that's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well.
@@Erikkurilla01 My specialist is *STEPHANIE KOPP MEEKS* I found her on a CNBC interview where she was highlighted and contacted her a while later. She has since give passage and leave focuses on the protections I center around. You can turn her upward on the web assuming you care oversight. I fundamentally follow her exchange design and haven't lamented doing as such.
One friend was from an italian family that pitched in and bought her and husband a house when they married. What a great idea to reduce debt and support the new family! Then you pitch on for the next couple. I love this!
We track every penny that come's in an go's out for everything, always have an always will, all done on our pc weekly, an monthly an yearly. But we're frugal an watch our pennies, lessons learned from my grandparents who lived thru the depression. I always ask myself, do I need it, or do I just want it, before I make any purchase, an I always do my homework before I buy anything, an I always take at least 24 hrs before I make a purchase for anything, kinda puts a stop to impulse purchases. Thx for the vid Geoff
I took SS at age 70. I am still working full time. I was laid off at abot 2000. When I got a new job, I put eliminating DEBT as my number 1 priority. I carry no CC balances. My mortgage is paid off. I put the maximum into 401k. My children have sond financial footing and are not extravagant. I'm looking at eliminating things I don't need and don't really want.
Some people,maybe lots of people,don’t seem to ever understand simple math. I don’t think there’s any advice that will help most of these people. Almost all people who are solid in retirement were that way thru the years. Pay your self first..live with in your means..always know your limits…. Usually a life time of foolish decisions it’s not turned around in one year…. Best channel on TH-cam thanks
I could have retired years ago. The problem is I do know what the future might be like. I lived through the 1970's and see it happening again. I am fully employer and collect two different pensions. I could quit today but tomorrow is always in question. As long at inflation is a question, and as long as taxation is a question, I am staying employed, it is my best alternative. If people want to understand their position, the need to understand the time value of money. A simple google search would tell them that. The other thing that would help would be a search on NPV. That would help in making good decisions about what they should be investing in for the future.
Great video! I'm 55 as of yesterday and financially retired. I work in my own business for the enjoyment and my dividend portfolio pays more than my monthly expenses.....and 0 debt period. I mention this because I love learning from your videos on what people have done wrong at the doorstep of retirement... when it's already too late. Your advice to them allows me to make possible corrections before I get there. Thanks for all the valuable information! One thing I would mention to people is to create an income statement and a balance sheet. I adjust it monthly and when I add to my stock positions to calculate the increase in monthly income from the dividends.
The info is great as always, but with the clock in the background I can see how much effort goes into just capturing the points you are communicating. I’m sure there is much more time in the editing and the preparation of content. Thanks for all your hard work preparing us for retirement!
Invest in taking care of your health. As we age, it gets less reliable and not a "given". ...and without it, all this talk of financial issues wont mean squat if your health is shot.
Can’t agree more. I will be debt free by this December and 50 years old. With no debt, 3 paid off rentals, 401K and cash and $200k 9to5. hopefully I can retire by 60 and start collecting ss by 62. 10 more years to go and This is all in the SF Bay Area.
40% of retirees have debt. That really surprises me. The only way I'm going to be able to get by in retirement is by having no debt. My house will be paid off in 5 months; retirement in 11 months!
@Kate Burkes: We retired with the house paid off. When housing prices around us went up it caused property taxes to go up. We've been quite surprised at how much property tax we pay now that we've been retired 15 years. Plan for that.
If I retire it will be in 5 to 10 years. Considering my personal issues, I have not decided on buying or renting. I could buy a new home cash but adding the variable of taxation, it might cost me less to take on a mortgage. Too many financial decisions come down to taxes.
If your debt is in a mortgage on a rental property that brings you more than the mortgage is, that’s not bad debt. That’s a good investment. There are probably lots of retirees who bring in rental income like this.
Me too. I am on pace to pay off my primary resident $328K mortgage in 25 months, this December will be my last payment and I will hit 50YO in Oct. with 3 other rentals, 401K and healthy saving, I hope to retire by 60. These houses are all in the SF Bay Area.
When your taking social security you go over the caps set up on earnings you go into the local office fill out the paperwork. They can take out a small amount. Over a year or so it can be paid back. You don't loose the whole payment Once it's paid back you return to get 100,%. Other options do your taxes then flie the extension. Have some time to get up what you have gone over pay them back if you can.
This was good easy advice to follow. One way to invest is to buy the S&P 500, open a Roth IRA, save money. Work till you have maximized your social security. If you buy stocks, you could buy ETF's like energy, health care, technology. Just a couple of ideas.
I agree with most of your opinions regarding retirement. We have no debt. Two new vehicles last year. Now doing some minor home improvements over the next couple years. Plenty of SS and Ira Income. But I listen to your vids when they come out. Thank you!
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy.
Truly enjoy your channel. As a New Zealander our retirement/pension automatically commences at age 65 and continues for the rest of your life. So I was somewhat surprised that in the USA, superannuation employs an expiration date. That aside thank you for your clarity in regards to making retirement issues simpler.
Here in the U.K. a colleague got a 24% uplift in his state pension by not taking it until he was 67. Unfortunately they changed the rules a couple of years later and I won't get any state pension until I'm 67. The current big debate is the "Triple Lock". Due to the Bank of England's inability to control inflation the state pension is going up 11% this year. Meanwhile they are wondering why nurses are complaining about a 4% pay increase offer.
No, the federal retirement system in the US (Social Security) lasts for the entire lifespan of the retiree. There is no "expiration date" except death.
My company made us a good offer when covid hit. I decided to retire. Since it came unexpected I had not much money in my 401 K. My husband passed away shortly after and from the little life insurance I paid my condo off. Thank goodness I have no debt. I don’t have a lot, but I can make it. My association fee is 400$ a month and then utilities, which is about $50. Thanks for your video!
I'm 66 I waited till full retirement age, I'm renting have no debt and have an Roth, IRA and stocks, high interest savings accounts, I bond. I'm still working part time, and a managed investment plan. I notice you are talking a lot with the spouse or married couple. I'm single. Best advise, thanks you, cheers...
Something that works for me is that I create once a quarter a balance sheet and income statement. I create these using GAAP and use them for planning. You can do anything if you have a plan. Even if do not understand accounting principles, knowing where you stand will help you plan ahead. The income statement is very illuminating. It tells me what I am spending my money on and helps me understand what I need to adjust in the future. It simply put list your revenues and expenses categorized. You would be very surprised as to how you are using your money.
ONE WAY TO PAY OFF the mortgage faster is to DOUBLE UP on the PRINCIPLE of the payment. If you look at the statement, a pretty low percentage of that payment went to principal. If you double that amount in your next payment, AND specify that "overage goes to principal" (otherwise they may just funnel it into the "escrow") that will cut down an ENTIRE payment. You won't see it until the end of the payments, but when I was able to pay off the balance of my mortgage, I had cut the final payment almost in half. ($10Ks)
Geoff! Your videos are truly inspiring to do the right thing and to keep doing the right thing for the rest of one’s life… Thank you for all your hard work. I look forward to watching every video you have done. Respectfully, JimmyUSAF 🇺🇸✈️✝️💜🙏🎄👍😇🇮🇹🌎
We are debt free and supplement income with two rental properties also debt free. I can do a lot of the maintenance. But at 77 getting tired of renters personalities. So now planning on selling one rental and seeing how things go. Will put the money in high yield money market and try to live off the income instead of rental income. Do you have a video on this subject. Thanks
Retired at 59, spouse younger and has a good job $50k, I took SS at 63, got $15,000 annual income from passive side gigs that let us write off a lot, rental property brings in $7,000 annually. Debt is $40,000 @ 2.3% (I consider that good debt). Our cash flow is great. Best advice, live below your means, max out retirement and HSA savings, and create a budget.
Retired at 59. Purchased retirement home in 2019...sold primary home 2022 and paid off mortgage for retirement home. No brainer....no debt...I take one hour per month to go over budget and cash flow.
Could you do a video on how retirees pay different medicare monthly amounts based on their prior 2 years income before taking medicare? High earners paying a higher medicare monthly amount than lower earners. Also, if you end up paying a higher monthly amount does it stay that way through retirement?
Concise, straight to the point, no frills and spot on as always. One thing I'd add that my Dad used to say is that if you are 55 years old you should have your house (updated and remodeled as needed) and vehicles paid for. I understand that the recently low but now increasing Fed Funds Rate might have lead to rebuttal on the house point. But this was not only a thing based on financial reasons but also on peace of mind going into your retirement. I worked hard and was blessed/lucky enough to have achieved both house and new 4Runner paid off (bought 4Runner with cash). As you age past 60 debt is not only a drain on your $$$ it's also a burden on your mental well being. It's a rough go these days and will only get rougher IMO. Best of luck to all.
Your dad was a wise man. I will hit 50 by this October, with no debt. 3 rentals and 1 primary home all paid offin the SF Bay Area. Family of 4, my rentals will more than cash flow my 2 kids’ college. Start saving when you are young, don’t overspend like most of us Americans.
20 years ago I stopped carrying a balance on my credit card. Pay it off monthly. Always ask myself, " do I really need this purchase?" Drive a 10 year old paid off vehicle. Only debt is my house payment which I make extra principle payments months. Its all about living frugal.
I am new to your videos, and am enjoying them. A subject worth discussing, if you have not, is managing the drawdown of one's IRA(s) and other nest eggs in retirement year by year, especially during major market downturns. Liquidating depressed holdings to take a chunk of my money out of a market that will rise again without the future participation of that money makes me cringe a bit. Surely there must be some strategies to optimize the drawdown. Have you covered this? And if not, could you?
Jeff this was excellent!! I’m a watch aficionado but despite being able to purchase some of the more iconic pieces can never get myself to do it. Instead I purchase the Homeage pieces. They are look a likes but with different brand names. For example: Rolex Cosomograph $20,000. But the homeage is just $200.
Here are my 5 tips: 1. No debt of any kind, even if it’s zero interest. 2. Don’t stop saving - resolve to put away 10-30% of your monthly income. 3. Don’t spend more than 30% on any one thing in your monthly budget. 4. Keep a 6-month emergency fund in cash. 5. Reduce stress and stay healthy - rest, eat, sleep, move around, keep learning and avoid injury.
Good advice but that prevents many from living for now either by avoiding nice purchases, vacations, etc or by working forever to pay things off. They save all this money, only to die 6 months after retirement, never having truly enjoyed life at any time!
@@RichardinNC1 It's a fine line. I've known that too happen. A man worked in the refinery in Texas for over 30yrs. He retired and died a few years later from pancreatic cancer. I remember him being so mad! But his wife and kids were set. A better way it to always ask... Do I need this or do I want this?
If you're under 65, health insurance could possibly eat up 30% or more of a modest monthly income. $4000 income (fairly common retired person's monthly income) would be over $1300/month for health insurance which is not uncommon. The affordable care act ("Obama-care") may be able to save you from this fate though depending on the state you live in and what you qualify for.
I purchased a used electric car. Maintenance is very low and charging at home is $30 per month (2,000 miles per month). This year I changed work locations and shortened my commute by 75%. I would like to buy a Tesla but own a Nissan Leaf. The Leaf cost $13,000 to purchase.
Can you pls address single, never married, no children retirement! Rarely is this subj approached/discussed! I'm sure that I am not the only person who fits into this category! 😂 Thank you. LOVE YOUR INFORMATION!
I'm in the U.K. but it is interesting to see things from a different point of view. The comment at 9:36 about Reverse Mortgages surprised me. Google ad-sense bombards me with adverts for Equity Release. Buy a new Mercedes, go on a World cruise, come back and buy the kids a BMW. Its all so easy ... ... ........(until you decide you want to downsize) My comment at the end.
I know exactly how much me and my wife spend on essentials. I also break up CC expenses into 15 categories that I track each month. You have to know where your money is going. Yes I’m a number geek.
Love your knowledge base and advice on finances. After learning from one of your videos, that you were a black belt in karate, I’d also love to see some old videos of you doing some old martial arts moves. Your motto could be “Im always fighting to save you money “ haha.
I am amazed at the number of people that do not know what their costs are every month/year. How do you ever expect to be in control if you don't know that? We love looking at our numbers and saying. We have 2 or 3 thousand more we can blow this month, what do we want to do.
It's my third month being retired now. And life hasn't been so difficult as I thought basically because I put my head down and made ways for other source of Income. I'm a huge fan of earning more money, and I think everyone should have a side hustle. Side hustling can allow you to earn that little bit of extra money that can help you achieve your financial goals faster - whether it's paying off student loans or saving for retirement.
Of course, morally and ethically, as long as your side hustle does not depend on stripping other people of their assets and income sources by scamming them into poverty while you continue smiling. Always consider: "Would your mother/father be proud of what you did today." There is that legacy and reputation beside you everyday, does that have any intrinsic value to your decision making or is a selfish nature sufficient for a quality life.
We took SS at 62 each and I have not regretted it. His job went away at 61. Due to health reasons he took SS early and went with a part time job. We were raising our grandson at that time. I was teaching. But after cancer I retired at 52 and have a pension. For the last 20 years I have worked in education part time and am retiring fron it. We still had a 16 year old. Due to a small inheritance we sent him and my daughter to college. My parents died in their 60s and didn't collect much SS. My spouse still has a small part time job 5 hours weekly he enjoys. I hope to have the same. No debt but a small Home Equity loan. That helps. We don't live a high life but do go on vacation and do things we enjoy and volunteering. Living on a budget, saving into sinking funds and tracking spending keeps us out of debt.
know when to hold up, know when to fold up, know when to walk away and know when to run, don't count your money until you have stopped working; that covers it all.
One of the commenters said you’d better have good health, cause without it, well, you’re in deep doodoo. On that line of thought, I’d like to add that getting the best Medicare supplement policy there is, Plan G, is the absolute best bang for your buck, and in our older years you’ll be needing it. I feel secure, both emotionally and financially with my Medicare Plan G that pays for just about everything that Medicare doesn’t.
We’re looking at Medicare right now. It was really important for us to check out some videos about the pitfalls of going with the Medicare Advantage plans (often free) compared to the Medigap or Supplemental Plans (like Plan G). The big concern is being able to qualify medically in the future as we age and develop health issues.
Hello. At 7:44 into the video, you said that you would have a video on money management at some point in the future. I was reviewing your more recent videos in the past 8 months. Did you ever make a video about this topic? Your videos are very informative. Thank you for sharing your knowledge and experience with this community.
I like your tongue-in -cheek list at the beginning, and can tell you enjoy making these. All the ones I watched are excellent. Newly subscribed, close to retirement (5years or so) would be great to hear you speak on passive incomes in retirement- rental property ect. Once again Thank You for your service!
Great Logic and thought. Continuous Cash Flow in retirement is the key. Wish you would of said more about how to minimize the IRS taking that cash flow while trying to hold on to Principle. Thanks
Everyone seems to focus on how to get the maximum total payout when it comes to Social Security. That is actually meaningless in my opinion. What matters to me is cash flow - both at the start of retirement and at the end of life. Will I have enough income and savings to sustain my standard of living until my last day?
Those of you that have rental properties like myself and are planning to sell them, you must remember that all the depreciation that you have taken must be paid back the first year after you sell. For myself, it is over $100,000 each. Take that into consideration.
Thanks great info, we held large credit card balances for years, we paid them off with a HELOC multiple times, it was a vicious cycle that we finally broke 10 years ago, we started gaining financial traction exponentially and never looked back, needless to say we pay everything possible with our credit cards now although we pay the balances off every month religiously no exceptions
Turn 63.5 in October, need to retire from a mentally exhausting job I've done for 28 years....I plan on working part time, I have a mortgage 3.2% no credit card debt, my wife provides full time care of her 92 yr old disabled mother who lives with us. I'd love to sell our home in our great market and could make about $200k, but can't.
I am far from pension but still I find these videos interesting. Would you consider though the ownership of a rare and expensive car as a long term investment? Certain brands and models are sold way more expensive than their original cost. I feel that electric vehicles will only boost that phenomenom.
Hi Jeff. I always learn something from you. I am curious however, have you ever addressed HECM’s? I am 70 years old and recently retired here in Southern California with a reverse mortgage. Ideally, my home would be paid off. Anyway, your thoughts?
Every month we sit down and review our budget. Not hard to do. This gives us peace of mind & I suggest it be a routine. Knowing your monthly cash flow relieves a tremendous amount of anxiety. That’s a “biggy!” And do not spend above your means! Yes! Enjoy retirement but remember that keeping up with the Jones is senseless and frankly, no one gives a “Schmidt!” lol
Inflation is my greatest fear in retirement! First, I cannot convince my wife that inflation exist. And I planed for 6% annual inflation during retirement not for 11+%.
Thus, fixed annuities are worthless. My mother's lifetime of accumulating a big stash of cash is now being destroyed by inflation. She is unwilling to make any changes. She won't even buy an out-of-state CD @4.85%, but buys locally @3%. Mini Corporate bonds @5-10%? Nope.
What are your thoughts on umbrella policies, like personal insurance against someone suing and trying to take your house? It’s part of my State Farm bundle and I’m wondering are they really just taking me for a ride and taking on extra hundred bucks a year off of me?
A one million umbrella policy is inexpensive and well worth it. Wanna lose everything you have from a rapacious lawyer. Oh, State Farm is a low-rated carrier in price and satisfaction. Amica is #1 - look it up. Get a quote from them before your next renewal.
Good afternoon, enjoy listening to your show, have a question regarding golden & silver do you believe that's a strong investment for your retirement, I personally do not invest in them, Curious in your opinion.thanks.
With concerns to figuering income in reguards to earned income limits under social security, i've heard pensions are not part of this equation. I would only have my military pension, Social security, and SS from a minor child. Are these considered a part of the computation for those limits and how does it work.
Geoff, I'm thinking you were able to read my mind! 🤣 We are discussing whether to make an expensive purchase or a similar much lower cost purchase ... we are leaning toward the lower one. Dividends from investments can provide a nice income stream. Jack Bogle had said do a 50/50 or 60/40 stock and bond split in investments and a person will be fine. Cash is also important to have, I saw in in 2007/2008 and I see it now. Using cash reserves vs selling investments is why you want it. Yes in high inflation you lose purchasing power but 5.9% or 9.1% is much less than 15% or 21% that someone would lose by selling an investment now. Once the investments go up replenish that cash reserve.
The realistic comments on rental real estate are on target. The properties that we bought over the last 10 years are finally spitting out enough cash flow to provide for my retirement. But it took a lot of work and time to get to this point.
30 years ago, I realized that if it wasn't for credit, I wouldn't need credit. Subsequently, after about 6 years, I had no credit card debt, 10 years I had no car payments, and I paid off my 30-year mortgage in 17 years. I am now retired and have been living the last 15 years completely debt free. Cash is king and the only way to go.
I always enjoy these presentations. Even if to put something’s in your life into perspective. Cash flow projections into an unknown retirement are difficult. Be sure to put a very large budget for miscellaneous. I have been retired for two years. My “lifestyle” expenditures are much greater as I intend to live life. But, still within a plan. One last comment I would make. For me, I have no problem with a budgeted reduction in investment corpus. Trying to retire and never drawing on your saved funds may be doable, but may also reduce your enjoyment factor. Don’t really concern myself with what I do or do not leave to my children in my estate. Here again-in balance.
Regarding your mention of the Aston Martin and the Jaguar F-Type R: They look similar because they were designed by the same person, Ian Callum. The Jaguar would be a very poor investment if bought new, because they drop at least 50% over five years or so. I laughed out loud at your mention of the F-Type R because I just bought one, a 2015. As an investment, my thinking is that it's already near the bottom of its depreciation curve, so depending when I sell it, I'll either not lose much or might even make a little. Along those same lines, I've recently been watching cars on the auction website Bring A Trailer. My conclusion is that if you buy just about any Ferrari or higher-end Porsche 911, sit on it a couple years, then sell it, you can make a lot of money with virtually no effort, other than storage space and insurance. Oversimplification, yes, but buying high end cars is rarely a money-losing venture if the mileage is kept low, but it's a path most of us can't walk.
I've watched many of your videos and respect your knowledge and advice. I'm looking for guidance on some financial decisions. I'm not asking you for free advice but rather can you recommend the type of advisor I should speak with about whether to sell/refinance/or downsize? Without going into details, I'm a person of very limited resources so I don't have many assets to work with and have limited knowledge so I know I need help. Who should I consult with? Thank you so much!
In 1990 the builders motto was “your house should reflect your success in life. -the bigger the better. I got taken in. Do not get over housed and highly mortgaged
Happiness is a comfortable size house and mortgage free. Also buy a two year old car and drive it for ten years
Finally no costly toys
You never know what lies ahead
As now a long retired homebuilder, I had no motto about what people needed to buy. I just provided what they wanted. Simple fact.
we operate differently in Australia - start out with and possibly stay with a basic 3 bedroom house - one toilet, one bathroom. 4 children share 2 bedrooms. Plenty of backyard or nearby parklands.
Seems to me the key to financially successful retirement is to let go of any need to impress anyone.
I do like to impress people with the fact that that I have hot and cold running water. There is no bottom.
Just don't need healthcare as you age. You'll be fine😂
So true, i like that saying, "what others think of me, is none of my business". You'll impress yourself when you retire with cash flow to travel.
@@jr.6199 No one needs to travel. It isn’t a necessity.
@@audreyandrea460 travel includes on foot, bike or bus too. Everyone needs a change in perspective. Now go impress yourself, get away from this device for a day.
Seven years after retiring, I became virtually debt-free. Claimed my RN pension at age 55, as I already had 30 years of service at my employer .At 62 I claimed my Social Security benefits. In the subsequent 9 months,with Social Security benefits as my second income stream,I cleared all my debts. Am replenishing my savings and it feels wonderful.
I’m smiling with you..Best to you 🤗🇺🇸 enjoy your retirement!
I retired at 68, after 52 years in the workforce, in 2019. I had put myself in the position of having no debt and am in good health. All my household bills (utilities, insurance and taxes) total less than 15% of my monthly SS income alone. I still save, have a cash emergency fund and I'm enjoying my retirement to the max!
Sorry, no way is that possible unless you are homeless
actually, this is possible, in a paid off house, and depending on where you live. A your mileage may vary. I doubt you could do this in New York or New Jersey!
my baselines:
Mortgage: 0
Electricity: 8.18 - solar. and I leave the lights on. system is paid for.
Gas: 35
Water: 30 Though, I need to not over water the garden in the summer.
Trash: 15/month (highway robbery!)
Insurance: 75/month
Property Tax: 180/month.
of course, it goes up if I count a specific budget for home improvements or repairs. But baseline taxes, insurance, utilities... the house... it's not brand new, about 30 years old. Updated over the years, 2 year old roof, 10 year old mechanicals, half acre and it's not a single wide.
Me too. You are not alone. My expenses is 30K and pension plus SS are 45K. Your 15% is pretty low.
Not possible. 4194 is currently the max. 50328 a year. 7549.20 total annual expenses. Not happening.
Social Security only for us as well -- mid-sixties with $5,374 in monthly SS. Zero debt. General fixed expenses: $16,488 Groceries/Entertainment/Dining: $24,000 Travel/Gifts: $24,000
Hi Geoff! Thanks for another great video. I retired end of May with oveer 38 years working in insurance. My wife and I are debt free and have been for a couple years. She plans to follow me into retirement in one to two years. I just purchased a used Luxury SUV (2021) with a year of new car warranty and two years of certified warranty. The car was a lease and only had 5600 miles from new. I had put a deposit on a new SUV, but couldn't justify the additional expense of new when this vehicle ($5k less) did "it all" as well. The one thing you missed and is SO IMPORTANT is your health. Maintaining good physical and mental health are critical. NOT doing so is catastrophically expensive. Work on your health as well as these five for ultimate security in retirement. Cheers!
My husband and I have never carried credit card debt-we always pay off the cards monthly! And one of the best decisions we made was to refinance from a 30 year fixed mortgage to a 15 year fixed. The house has been paid off for several years now and that allowed us to pay for the kids' colleges without hardship!
Marginal utility is a great concept. I got into serious road biking at the start of the pandemic. I bought a 12 year old road bike that originally sold for $4500 for $500. Last month I began to think about getting a new road bike. The bikes that are better than the one I own are about $5k. I finally decided to ditch the idea of a new bike because it wouldn’t provide me $4500 of additional enjoyment above what I have now. I can live with the old bike; it provides what I need.
Sounds like fun though!
Diversification of Investments is really a great idea for multiple streams of income.
@Adnan Khan That's right! Even in retirement, I have lots of investments that I make profits from. I invest in bitcoins and property.
@Niklas Gerhard You shouldn't invest in bitcoins without professional guidance. You need a professional to guide you through the process.
@Niklas Gerhard *Alicia Seda* is one of the best Professionals on bitcoins I know. She has a way of making huge revenue in just one week. She is my investments manager. Her services assures you interest, daily and weekly.
Diminishing Return: I really wanted a cool “toy” car. I looked at lots of options. I ended up with a Mustang GT convertible. Other cars were 2-3X in price but not 2-3X in the fun factor (my goal). I bought used and paid cash. I discovered Mustang clubs, I loan it out to friends, and love driving it. Right now, my friend Myron and his wife are having a blast with it up north. That is part of the “fun factor” for me (something that wouldn’t work if it was a “supercar”).
You are letting everyone know than not even viagra works now.
Sounds like a fine choice. Enjoy.
As a soon-to-be retiree, keeping my 401k on track after a bumpy 2022 is a high goal. I've read about investors generating up to $250k ROI in this present sinking market; any suggestions for increasing my ROI before retirement would be greatly appreciated.
there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
@@suzannehenderson5 Please can you leave the info of your investment advisor here? I’m in dire need for one.
Christine Jane Mclean. You can easily look her up, she has years of financial market experience.
She appears to be a true authority in her profession. I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. She owes me a fiduciary duty to act in my best interests. I set up an appointment to use her services.
Such a nice picture of you looking happy with the sunflowers, and nice green shirt Geoff. 🌱🌻
I am amazed that most people need to ask their financial planner if they have enough money to retire or if they have enough money to purchase something. I have been my own financial planner for over 30 years and I am kicking azz-:) And I managed a warehouse. I am not some college educated person. I went to the school of hard knocks and won-:)
I paid off all my debt in my 30's. The cash flow is amazing and the reduction of stress shouldn't be understated.
Totally.
@@HolySchmidt 😀👍
So did I. Then I was laid off as an airline employee after 9/11. Boy, did that change things.
I see it has been said, but I will mention also. I have always lived below my means and I gain a sense of security from that as I see money saved and invested consistently growing as I approach retirement.
13:28. To track spending, I recently started using my bank's website. It makes it easy to designate transactions for various categories, and gives me a cumulatuve pie chart. I can compare with previous months. When I started this, my expenses went down significantly. It also allowed me to more accurately predict weekly expenses like food, gas, and a little mad money. This allows me to withdraw cash for those items to control spending while robbing Peter to pay Paul for extras without falling into debt. It's a fun game that works for me. This often reminds me of what you said in one of your other videos: "Every dollar has a job." Thank you so much for sharing your wisdom -- helps me every day. -- a single retired RN and grandmother.
I am a new viewer and I appreciate your explanations. I’m no dummy, but finance always made my eyes glaze. You make this topic so much more understandable. I was particularly impressed when you mentioned tracking spending. I’ve been a member of several support groups for years, one of which deals with money. “Keeping my numbers”, by writing down what comes in and what goes out was life-changing. Thank you so much for your work.
Thanks for the wisdom/knowledge you imparted in this video! One philosophy that I operate under is "Pound wise, penny foolish". That is to say, if its not very expensive and you're not going to buy it frequently, go ahead and enjoy it. On the other hand, if its going to be a major purchase, say over $100, then think about it for awhile, maybe a few days. If you still feel you want to buy it after your heads cooled down, then go for it. Most of the time, this has been effective in preventing a bad purchase.
One thing that my wife and I have practiced that has worked out well for us is that we purchase good quality stuff. Yes, we do pay bit of a premium for this, but in the long run it is better than purchasing junk and replacing it 5 or six times because of lack of durability. I the long run our cash outlay is less this way.
62 and 8 months. Will begin receiving Surviving Spouse SS payments in August. My husband passed away 1 month ago. Retired CFO. He took good care of my stepchildren’s and my financial future. He was very physically active but cancer took his life. RIP
Sorry for your loss.
I’m sorry you lost your husband. Please carry on in his honor and out of respect for him - you know that’s what he would want you to do. Sounds like a good guy……..and I’ll bet he loved you and your children very much. Damn cancer. 🇺🇸
Please accept my condolences for the loss of your husband. Very difficult time. I am sorry.
Sorry to hear about your husband. My biggest fear. I am physically active nearing 60 and thank God for every day I awake
I really like your straightforward approach in your videos. Thank you!
We retired in 2020 and had paid off the mortgage a year earlier. I manage the money and let my wife know what is going on with bills and investments and retirement income and we regularly talk about them. I know the credit card balances and pay dates as well as the checking account balance. I know when the various insurances and property taxes are due. I know the monthly utility bills and vehicle registrations as well. I have set up the bank to auto pay most of our bills. The key is to know all this information so that there are no surprises. Another thing that will help a lot is to lose weight and eat better. Managing all of this takes time, but in retirement, you have a lot of time and therefore, life should be fairly easy.
TED...some thing to consider...while you are able to do all these things today, what plan do you have for the onset of dementia or cognitive decline?
I am 72. I have more financial education that 99% of Americans, as I am a college professor who has taught financial planning and retirement planning for the past 14 years. Prior to becoming an academic, I was a financial services professional for 12 years. Prior to those two careers, I spent 28 years in banking and finance. It is great that you have your financial dates and amounts and a plan in place...today. But if you passed tonight, would your spouse be able to replicate your capabilities?
Continued success in your retirement.
I would add that get major appliances, water heaters, roofing, plumbing, ac/heating all replaced if needed before retiring.
A good thought. I am currently getting medical issues addressed before potential retirement, while insured.
I totally replaced my ac/heating a couple yrs back by a 1st rate company and living in the south it has been a great investment.
I agreed to that. I recently replaced washer, dryer and freezer. A/C and stove will be next before I retired at 66 and a half
Appliances are expensive these days and being in debit with these is like asking bankrupcty. Car needs to be paid as well
Don't forget a retirement plan for your oral health. I recommend to my patients that they get their teeth fully fixed prior to retirement. That way all they have to is maintenance visits during retirement.
Good advice!
Very honest, sober, informative , and educational financial presentation regarding this specific topic . Thank you sir.
Thank you. Just what I needed to watch.
My wife and I are directors of our farm business and own property, plus small pensions. I am nearly 55, my wife is 52.
We have started to save to retire from the farm, and possibly live on rental income, I'd really appreciate you go LIVE and talk about how to earn passive income online and retire comfortably, let’s say $1M.
you should consider financial planning.
It isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing.
@@jessicasquire I totally agree, I'm 60 and newly retired with about 1.2 million outside retirement funds, no debt, and very small dollars in retirement funds compared to my portfolio balance over the past 3 years till date. tbh, the role of the investment advisor can only be overlooked, not denied. just have to do your research in finding a reputable one.
@@patrickbrussels4454 that's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well.
@@Erikkurilla01 My specialist is *STEPHANIE KOPP MEEKS* I found her on a CNBC interview where she was highlighted and contacted her a while later. She has since give passage and leave focuses on the protections I center around. You can turn her upward on the web assuming you care oversight. I fundamentally follow her exchange design and haven't lamented doing as such.
Having our home paid off and our car also, is a blessing. Also, we no longer drive two cars---we need one only.
One friend was from an italian family that pitched in and bought her and husband a house when they married. What a great idea to reduce debt and support the new family! Then you pitch on for the next couple. I love this!
We track every penny that come's in an go's out for everything, always have an always will, all done on our pc weekly, an monthly an yearly. But we're frugal an watch our pennies, lessons learned from my grandparents who lived thru the depression. I always ask myself, do I need it, or do I just want it, before I make any purchase, an I always do my homework before I buy anything, an I always take at least 24 hrs before I make a purchase for anything, kinda puts a stop to impulse purchases. Thx for the vid Geoff
I worked for both Jaguar and Aston Martin. Also love Alfas too. Love the concept of Marginal Utility. Happily retired with a FS pension from both.
Retired 6 monthes ago. Excellent points.
I think you should put more emphasis on health and health maintenance
There is a peace that defies understanding being debt free.
Absolutely. It has been very liberating for me. My last thing was the house. It even made going to work easier.
Agreed.
Yes!
Amen Brother
I took SS at age 70. I am still working full time. I was laid off at abot 2000. When I got a new job, I put eliminating DEBT as my number 1 priority. I carry no CC balances. My mortgage is paid off. I put the maximum into 401k. My children have sond financial footing and are not extravagant. I'm looking at eliminating things I don't need and don't really want.
Some people,maybe lots of people,don’t seem to ever understand simple math. I don’t think there’s any advice that will help most of these people. Almost all people who are solid in retirement were that way thru the years. Pay your self first..live with in your means..always know your limits…. Usually a life time of foolish decisions it’s not turned around in one year…. Best channel on TH-cam thanks
I could have retired years ago. The problem is I do know what the future might be like. I lived through the 1970's and see it happening again. I am fully employer and collect two different pensions. I could quit today but tomorrow is always in question. As long at inflation is a question, and as long as taxation is a question, I am staying employed, it is my best alternative. If people want to understand their position, the need to understand the time value of money. A simple google search would tell them that. The other thing that would help would be a search on NPV. That would help in making good decisions about what they should be investing in for the future.
Straight up solid comment. It did not start the day of retirement, they always lived that way.
Great video! I'm 55 as of yesterday and financially retired. I work in my own business for the enjoyment and my dividend portfolio pays more than my monthly expenses.....and 0 debt period.
I mention this because I love learning from your videos on what people have done wrong at the doorstep of retirement... when it's already too late. Your advice to them allows me to make possible corrections before I get there. Thanks for all the valuable information!
One thing I would mention to people is to create an income statement and a balance sheet. I adjust it monthly and when I add to my stock positions to calculate the increase in monthly income from the dividends.
The info is great as always, but with the clock in the background I can see how much effort goes into just capturing the points you are communicating. I’m sure there is much more time in the editing and the preparation of content. Thanks for all your hard work preparing us for retirement!
Now I have to go back and look at the. Click, lol
Invest in taking care of your health. As we age, it gets less reliable and not a "given". ...and without it, all this talk of financial issues wont mean squat if your health is shot.
I agree with you, just don't depend on anyone else doing it for you.
Health is wealth
Can’t agree more. I will be debt free by this December and 50 years old. With no debt, 3 paid off rentals, 401K and cash and $200k 9to5. hopefully I can retire by 60 and start collecting ss by 62. 10 more years to go and This is all in the SF Bay Area.
Garden helps
40% of retirees have debt. That really surprises me. The only way I'm going to be able to get by in retirement is by having no debt. My house will be paid off in 5 months; retirement in 11 months!
@Kate Burkes: We retired with the house paid off. When housing prices around us went up it caused property taxes to go up. We've been quite surprised at how much
property tax we pay now that we've been retired 15 years. Plan for that.
If I retire it will be in 5 to 10 years. Considering my personal issues, I have not decided on buying or renting. I could buy a new home cash but adding the variable of taxation, it might cost me less to take on a mortgage. Too many financial decisions come down to taxes.
I would have expected the % with no debt to be much more.
If your debt is in a mortgage on a rental property that brings you more than the mortgage is, that’s not bad debt. That’s a good investment. There are probably lots of retirees who bring in rental income like this.
Me too. I am on pace to pay off my primary resident $328K mortgage in 25 months, this December will be my last payment and I will hit 50YO in Oct. with 3 other rentals, 401K and healthy saving, I hope to retire by 60. These houses are all in the SF Bay Area.
When I eliminated debt some years back, it was like getting a raise. Never carry debt that isn't earning more than you cost of capital.
When your taking social security you go over the caps set up on earnings you go into the local office fill out the paperwork. They can take out a small amount. Over a year or so it can be paid back. You don't loose the whole payment
Once it's paid back you return to get 100,%.
Other options do your taxes then flie the extension. Have some time to get up what you have gone over pay them back if you can.
This was good easy advice to follow. One way to invest is to buy the S&P 500, open a Roth IRA, save money. Work till you have maximized your social security. If you buy stocks, you could buy ETF's like energy, health care, technology. Just a
couple of ideas.
I agree with most of your opinions regarding retirement. We have no debt. Two new vehicles last year. Now doing some minor home improvements over the next couple years. Plenty of SS and Ira Income. But I listen to your vids when they come out. Thank you!
Thanks David
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy.
The stock market is very strong. The labor market is very strong. I suggest you rest easy.
😊
update: Trumps Tariffs are scaring everybody’s financial advisor as of right now. Good luck!
Truly enjoy your channel. As a New Zealander our retirement/pension automatically commences at age 65 and continues for the rest of your life. So I was somewhat surprised that in the USA, superannuation employs an expiration date. That aside thank you for your clarity in regards to making retirement issues simpler.
Here in the U.K. a colleague got a 24% uplift in his state pension by not taking it until he was 67. Unfortunately they changed the rules a couple of years later and I won't get any state pension until I'm 67. The current big debate is the "Triple Lock". Due to the Bank of England's inability to control inflation the state pension is going up 11% this year. Meanwhile they are wondering why nurses are complaining about a 4% pay increase offer.
No, the federal retirement system in the US (Social Security) lasts for the entire lifespan of the retiree. There is no "expiration date" except death.
My company made us a good offer when covid hit. I decided to retire. Since it came unexpected I had not much money in my 401 K. My husband passed away shortly after and from the little life insurance I paid my condo off. Thank goodness I have no debt. I don’t have a lot, but I can make it. My association fee is 400$ a month and then utilities, which is about $50. Thanks for your video!
Condolences on your loss, and wishing you peace on the road ahead.
@@ontheotherhand7627 thank you for your kind words.
I AM STILL WORKING AT 77 AND WE BEGAN SS AT 70 AND HAVE NO DEBT SO WE ARE WELL OFF, DESPITE MANY YEARS OF LOW INCOME AND A STAY-AT-HOME MOM.
I'm 66 I waited till full retirement age, I'm renting have no debt and have an Roth, IRA and stocks, high interest savings accounts, I bond. I'm still working part time, and a managed investment plan. I notice you are talking a lot with the spouse or married couple. I'm single. Best advise, thanks you, cheers...
Something that works for me is that I create once a quarter a balance sheet and income statement. I create these using GAAP and use them for planning. You can do anything if you have a plan. Even if do not understand accounting principles, knowing where you stand will help you plan ahead. The income statement is very illuminating. It tells me what I am spending my money on and helps me understand what I need to adjust in the future. It simply put list your revenues and expenses categorized. You would be very surprised as to how you are using your money.
I do a monthly spreadsheet for the whole year. You will be surprise if you overspend or underspend.
You provide more info fro retirees than anyone I’ve listened to. Thank you.
ONE WAY TO PAY OFF the mortgage faster is to DOUBLE UP on the PRINCIPLE of the payment. If you look at the statement, a pretty low percentage of that payment went to principal. If you double that amount in your next payment, AND specify that "overage goes to principal" (otherwise they may just funnel it into the "escrow") that will cut down an ENTIRE payment. You won't see it until the end of the payments, but when I was able to pay off the balance of my mortgage, I had cut the final payment almost in half. ($10Ks)
It is great advice. I did just that for 5 years and saw the balance of the mortgage falling down very quickly. Highly recommend doing it.
Don't be an idiot. Tying up money in equity that could be invested is how the house rich stay poor. Learn to use the bank's money.
@@DrSchor Only provided that you can make that money make more than what you are paying in the interest.
Geoff!
Your videos are truly inspiring to do the right thing and to keep doing the right thing for the rest of one’s life… Thank you for all your hard work. I look forward to watching every video you have done.
Respectfully,
JimmyUSAF 🇺🇸✈️✝️💜🙏🎄👍😇🇮🇹🌎
Sound is great. Thank you!
We are debt free and supplement income with two rental properties also debt free. I can do a lot of the maintenance. But at 77 getting tired of renters personalities. So now planning on selling one rental and seeing how things go. Will put the money in high yield money market and try to live off the income instead of rental income. Do you have a video on this subject. Thanks
Retired at 59, spouse younger and has a good job $50k, I took SS at 63, got $15,000 annual income from passive side gigs that let us write off a lot, rental property brings in $7,000 annually. Debt is $40,000 @ 2.3% (I consider that good debt). Our cash flow is great. Best advice, live below your means, max out retirement and HSA savings, and create a budget.
Retired at 59. Purchased retirement home in 2019...sold primary home 2022 and paid off mortgage for retirement home. No brainer....no debt...I take one hour per month to go over budget and cash flow.
Could you do a video on how retirees pay different medicare monthly amounts based on their prior 2 years income before taking medicare? High earners paying a higher medicare monthly amount than lower earners. Also, if you end up paying a higher monthly amount does it stay that way through retirement?
Concise, straight to the point, no frills and spot on as always. One thing I'd add that my Dad used to say is that if you are 55 years old you should have your house (updated and remodeled as needed) and vehicles paid for. I understand that the recently low but now increasing Fed Funds Rate might have lead to rebuttal on the house point. But this was not only a thing based on financial reasons but also on peace of mind going into your retirement. I worked hard and was blessed/lucky enough to have achieved both house and new 4Runner paid off (bought 4Runner with cash). As you age past 60 debt is not only a drain on your $$$ it's also a burden on your mental well being. It's a rough go these days and will only get rougher IMO. Best of luck to all.
Your dad was a wise man. I will hit 50 by this October, with no debt. 3 rentals and 1 primary home all paid offin the SF Bay Area. Family of 4, my rentals will more than cash flow my 2 kids’ college. Start saving when you are young, don’t overspend like most of us Americans.
20 years ago I stopped carrying a balance on my credit card. Pay it off monthly. Always ask myself, " do I really need this purchase?" Drive a 10 year old paid off vehicle. Only debt is my house payment which I make extra principle payments months. Its all about living frugal.
I have watched several of you straight forward videos. Thank You!
I am new to your videos, and am enjoying them. A subject worth discussing, if you have not, is managing the drawdown of one's IRA(s) and other nest eggs in retirement year by year, especially during major market downturns. Liquidating depressed holdings to take a chunk of my money out of a market that will rise again without the future participation of that money makes me cringe a bit. Surely there must be some strategies to optimize the drawdown. Have you covered this? And if not, could you?
Jeff this was excellent!! I’m a watch aficionado but despite being able to purchase some of the more iconic pieces can never get myself to do it. Instead I purchase the Homeage pieces. They are look a likes but with different brand names. For example: Rolex Cosomograph $20,000. But the homeage is just $200.
pretending to be an aficionado is one of the saddest ways to see people live. i pity the fools. may jesus save you.
Love love love your videos…..you are a great teacher!
Being debt free with financial margin makes me secure and free!
Here are my 5 tips:
1. No debt of any kind, even if it’s zero interest.
2. Don’t stop saving - resolve to put away 10-30% of your monthly income.
3. Don’t spend more than 30% on any one thing in your monthly budget.
4. Keep a 6-month emergency fund in cash.
5. Reduce stress and stay healthy - rest, eat, sleep, move around, keep learning and avoid injury.
Great advice 👍
Good advice but that prevents many from living for now either by avoiding nice purchases, vacations, etc or by working forever to pay things off. They save all this money, only to die 6 months after retirement, never having truly enjoyed life at any time!
@@RichardinNC1 It's a fine line. I've known that too happen. A man worked in the refinery in Texas for over 30yrs. He retired and died a few years later from pancreatic cancer. I remember him being so mad! But his wife and kids were set. A better way it to always ask... Do I need this or do I want this?
If you're under 65, health insurance could possibly eat up 30% or more of a modest monthly income. $4000 income (fairly common retired person's monthly income) would be over $1300/month for health insurance which is not uncommon. The affordable care act ("Obama-care") may be able to save you from this fate though depending on the state you live in and what you qualify for.
@@henram36 Especially true since qualification for subsidies is based on income, not assets or cash on hand.
I purchased a used electric car. Maintenance is very low and charging at home is $30 per month (2,000 miles per month). This year I changed work locations and shortened my commute by 75%. I would like to buy a Tesla but own a Nissan Leaf. The Leaf cost $13,000 to purchase.
Can you pls address single, never married, no children retirement! Rarely is this subj approached/discussed! I'm sure that I am not the only person who fits into this category! 😂 Thank you. LOVE YOUR INFORMATION!
I'm in the U.K. but it is interesting to see things from a different point of view. The comment at 9:36 about Reverse Mortgages surprised me. Google ad-sense bombards me with adverts for Equity Release. Buy a new Mercedes, go on a World cruise, come back and buy the kids a BMW. Its all so easy
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........(until you decide you want to downsize) My comment at the end.
I know exactly how much me and my wife spend on essentials. I also break up CC expenses into 15 categories that I track each month. You have to know where your money is going. Yes I’m a number geek.
I always build in a margin of error for any plan I create. Great video, thank you very kindly.
Love your knowledge base and advice on finances. After learning from one of your videos, that you were a black belt in karate, I’d also love to see some old videos of you doing some old martial arts moves. Your motto could be “Im always fighting to save you money “ haha.
I am amazed at the number of people that do not know what their costs are every month/year. How do you ever expect to be in control if you don't know that? We love looking at our numbers and saying. We have 2 or 3 thousand more we can blow this month, what do we want to do.
It's my third month being retired now. And life hasn't been so difficult as I thought basically because I put my head down and made ways for other source of Income. I'm a huge fan of earning more money, and I think everyone should have a side hustle. Side hustling can allow you to earn that little bit of extra money that can help you achieve your financial goals faster - whether it's paying off student loans or saving for retirement.
@Michael Kalon You can buy dividend ETFs if you don't want to get into individual stocks. My favorite is SCHD. you can use a coach as well.
@Brendan Walsh Nearly impossible however names like KAREN MARIE EMMA is exceptional. Look the name up if you need help.
@Michael Kalon just do it. In 20 years or more you will be glad!
Of course, morally and ethically, as long as your side hustle does not depend on stripping other people of their assets and income sources by scamming them into poverty while you continue smiling. Always consider: "Would your mother/father be proud of what you did today." There is that legacy and reputation beside you everyday, does that have any intrinsic value to your decision making or is a selfish nature sufficient for a quality life.
We took SS at 62 each and I have not regretted it. His job went away at 61. Due to health reasons he took SS early and went with a part time job. We were raising our grandson at that time. I was teaching. But after cancer I retired at 52 and have a pension. For the last 20 years I have worked in education part time and am retiring fron it.
We still had a 16 year old. Due to a small inheritance we sent him and my daughter to college. My parents died in their 60s and didn't collect much SS.
My spouse still has a small part time job 5 hours weekly he enjoys. I hope to have the same.
No debt but a small Home Equity loan. That helps.
We don't live a high life but do go on vacation and do things we enjoy and volunteering. Living on a budget, saving into sinking funds and tracking spending keeps us out of debt.
1) know when to take SS
2) debt
3) spending plan 6:19
4) money problems
5) marginal utility
know when to hold up, know when to fold up, know when to walk away and know when to run, don't count your money until you have stopped working; that covers it all.
One of the commenters said you’d better have good health, cause without it, well, you’re in deep doodoo. On that line of thought, I’d like to add that getting the best Medicare supplement policy there is, Plan G, is the absolute best bang for your buck, and in our older years you’ll be needing it. I feel secure, both emotionally and financially with my Medicare Plan G that pays for just about everything that Medicare doesn’t.
I will too sign up for Plan G in 1-1/2 year from now, I will turn 65, thanks for the reminder.
I’m retiring next week and applying for Medicare. Thanks for the tip plan G. I’ll check it out. Brokers are swarming to get me to work with them
I have used Christopher Westfall's TH-cam channel to avoid a lot of Medicare traps. You should check it out.
We’re looking at Medicare right now. It was really important for us to check out some videos about the pitfalls of going with the Medicare Advantage plans (often free) compared to the Medigap or Supplemental Plans (like Plan G). The big concern is being able to qualify medically in the future as we age and develop health issues.
Hello. At 7:44 into the video, you said that you would have a video on money management at some point in the future. I was reviewing your more recent videos in the past 8 months. Did you ever make a video about this topic? Your videos are very informative. Thank you for sharing your knowledge and experience with this community.
I like your tongue-in -cheek list at the beginning, and can tell you enjoy making these. All the ones I watched are excellent. Newly subscribed, close to retirement (5years or so) would be great to hear you speak on passive incomes in retirement- rental property ect. Once again Thank You for your service!
Great Logic and thought. Continuous Cash Flow in retirement is the key. Wish you would of said more about how to minimize the IRS taking that cash flow while trying to hold on to Principle. Thanks
Everyone seems to focus on how to get the maximum total payout when it comes to Social Security. That is actually meaningless in my opinion. What matters to me is cash flow - both at the start of retirement and at the end of life. Will I have enough income and savings to sustain my standard of living until my last day?
Excellent advice.
Those of you that have rental properties like myself and are planning to sell them, you must remember that all the depreciation that you have taken must be paid back the first year after you sell. For myself, it is over $100,000 each. Take that into consideration.
Thanks great info, we held large credit card balances for years, we paid them off with a HELOC multiple times, it was a vicious cycle that we finally broke 10 years ago, we started gaining financial traction exponentially and never looked back, needless to say we pay everything possible with our credit cards now although we pay the balances off every month religiously no exceptions
Smart move, gotta be careful with those cc swipes, they creep up on you real fast.
Always sound advice, thanks.
Turn 63.5 in October, need to retire from a mentally exhausting job I've done for 28 years....I plan on working part time, I have a mortgage 3.2% no credit card debt, my wife provides full time care of her 92 yr old disabled mother who lives with us. I'd love to sell our home in our great market and could make about $200k, but can't.
I am far from pension but still I find these videos interesting. Would you consider though the ownership of a rare and expensive car as a long term investment? Certain brands and models are sold way more expensive than their original cost. I feel that electric vehicles will only boost that phenomenom.
Hi Jeff. I always learn something from you. I am curious however, have you ever addressed HECM’s? I am 70 years old and recently retired here in Southern California with a reverse mortgage. Ideally, my home would be paid off. Anyway, your thoughts?
Every month we sit down and review our budget. Not hard to do. This gives us peace of mind & I suggest it be a routine. Knowing your monthly cash flow relieves a tremendous amount of anxiety. That’s a “biggy!” And do not spend above your means! Yes! Enjoy retirement but remember that keeping up with the Jones is senseless and frankly, no one gives a “Schmidt!” lol
Inflation is my greatest fear in retirement! First, I cannot convince my wife that inflation exist. And I planed for 6% annual inflation during retirement not for 11+%.
Thus, fixed annuities are worthless. My mother's lifetime of accumulating a big stash of cash is now being destroyed by inflation. She is unwilling to make any changes. She won't even buy an out-of-state CD @4.85%, but buys locally @3%.
Mini Corporate bonds @5-10%? Nope.
What are your thoughts on umbrella policies, like personal insurance against someone suing and trying to take your house? It’s part of my State Farm bundle and I’m wondering are they really just taking me for a ride and taking on extra hundred bucks a year off of me?
A one million umbrella policy is inexpensive and well worth it. Wanna lose everything you have from a rapacious lawyer. Oh, State Farm is a low-rated carrier in price and satisfaction. Amica is #1 - look it up. Get a quote from them before your next renewal.
Great video as always. Thanks.
75 still working plan to retire next month health problems very constipated wish me well hemmroids too
Good afternoon, enjoy listening to your show, have a question regarding golden & silver do you believe that's a strong investment for your retirement, I personally do not invest in them, Curious in your opinion.thanks.
Traditionally they are the offset to inflation, but I (personally) don’t believe inflation will be out biggest challenge in 2023.
With concerns to figuering income in reguards to earned income limits under social security, i've heard pensions are not part of this equation. I would only have my military pension, Social security, and SS from a minor child. Are these considered a part of the computation for those limits and how does it work.
I always enjoy hearing what you have to say!
Geoff, I'm thinking you were able to read my mind! 🤣 We are discussing whether to make an expensive purchase or a similar much lower cost purchase ... we are leaning toward the lower one.
Dividends from investments can provide a nice income stream. Jack Bogle had said do a 50/50 or 60/40 stock and bond split in investments and a person will be fine.
Cash is also important to have, I saw in in 2007/2008 and I see it now. Using cash reserves vs selling investments is why you want it. Yes in high inflation you lose purchasing power but 5.9% or 9.1% is much less than 15% or 21% that someone would lose by selling an investment now. Once the investments go up replenish that cash reserve.
Good point Vinny
The realistic comments on rental real estate are on target. The properties that we bought over the last 10 years are finally spitting out enough cash flow to provide for my retirement. But it took a lot of work and time to get to this point.
30 years ago, I realized that if it wasn't for credit, I wouldn't need credit. Subsequently, after about 6 years, I had no credit card debt, 10 years I had no car payments, and I paid off my 30-year mortgage in 17 years. I am now retired and have been living the last 15 years completely debt free. Cash is king and the only way to go.
only the little people pay cash. the wealthy know how to use debt.
I always enjoy these presentations. Even if to put something’s in your life into perspective. Cash flow projections into an unknown retirement are difficult. Be sure to put a very large budget for miscellaneous. I have been retired for two years. My “lifestyle” expenditures are much greater as I intend to live life. But, still within a plan. One last comment I would make. For me, I have no problem with a budgeted reduction in investment corpus. Trying to retire and never drawing on your saved funds may be doable, but may also reduce your enjoyment factor. Don’t really concern myself with what I do or do not leave to my children in my estate. Here again-in balance.
Well said my friend.
When possible , pay in cash - you become much more discipled in your spending habits with this approached .
Best way to enjoy retirement is to have no debt. Solves a lot of problems.😉
Regarding your mention of the Aston Martin and the Jaguar F-Type R: They look similar because they were designed by the same person, Ian Callum. The Jaguar would be a very poor investment if bought new, because they drop at least 50% over five years or so. I laughed out loud at your mention of the F-Type R because I just bought one, a 2015. As an investment, my thinking is that it's already near the bottom of its depreciation curve, so depending when I sell it, I'll either not lose much or might even make a little.
Along those same lines, I've recently been watching cars on the auction website Bring A Trailer. My conclusion is that if you buy just about any Ferrari or higher-end Porsche 911, sit on it a couple years, then sell it, you can make a lot of money with virtually no effort, other than storage space and insurance. Oversimplification, yes, but buying high end cars is rarely a money-losing venture if the mileage is kept low, but it's a path most of us can't walk.
Thanks for the insight Kurt
I've watched many of your videos and respect your knowledge and advice. I'm looking for guidance on some financial decisions. I'm not asking you for free advice but rather can you recommend the type of advisor I should speak with about whether to sell/refinance/or downsize? Without going into details, I'm a person of very limited resources so I don't have many assets to work with and have limited knowledge so I know I need help. Who should I consult with? Thank you so much!