Thanks for this video, Drew. I understand that it is simplified, but it’s nice to see. I’ll be anxious;y awaiting the next video where you take this to the software! My biggest unknown is my annual estimated expenses. I’m working on a budget, but I’m sure that $50k/year is more than enough for a single person relocating to FL. Thanks again!
He wants to account for inflation, but does not consider return on investment. At 1.25 million, all you would need is a 3% return along with SSI to pay for your yearly expenses, and you would most likely end up with over 2 million at 100 years old.
Here's a question for you. I retired 7 years ago, my wife retired 2 years after that. To date we have drawn any money out of retirement savings. At this rate, how long will out money last?
Can I retire at 62 with the following ? I am 55 years old married to 44 years old . I got 125 k saved in 401k , I got 40 k in stock account . 10k saving . Renting . I make 80k annual and my wife makes 30k annual . I co tribute around $1000/month to investment and $500 per month savings . Iam debt free . Please let me know . I’m planning to move to Texas and forecasting around $40k / year expenses .
We do not charge for calls or sessions to review your retirement. We do charge to create a fully comprehensive Financial EKG. Please use the calendar link in description if you’d like to set up a call. Looking forward to speaking with you!
i am a fan of other video which the gentleman retired with $500000 at 59. I find his video more friendly and fit to the real picture. Your scenario seems dream scenario for most Americans (average). Maybe it is based on your scenario as you must be a rich guy
If you invest for 30 years , you will only have invested about 87% of the principal of your total nest egg. Thats why it’s important to start early…so you don’t have to save dollar for dollar
So Drew, this is the least amount of cash you would have to have in the bank in order to retire at 60 years old. This doesn't take into consideration the idea that the money might be invested because I didn't see any rate of return numbers when you figured this out. Im just asking because I'd love to see this same type of example but instead, what would the minimum amount be needed if the money was invested. Great video!!
1500 x 10 = 10500???? Is that some sort of new math? For some reason I get $15,000. So is the rest of your math correct??? I'm assuming the rest is correct and I understand where you are going with this.
Hey Drew, I’m confused by the calc for expenses from 67 to 100. To simplify, $27893 (expenses less SS) x 33 years = $920,469 not including inflation? If using 4% rule, multiplier will be 25 instead of 33, amount needed will be $697,325. What am I missing?
Good video and like the presenter's content, but I have to say this model is not useful IMO. The presenter noted that is was simplified and did not take into account compounding inflation, but that is more than a side note. Not taking into account compounding inflation (from age 67 to 100 in particular) completely obliterates the model. Also, there was no account for any returns on investment. I don't mean to be harsh; just providing my thoughts. Thanks to the presenter for posting.
If 1.25 million was required to retire at 60 very few people would ever be able to retire. This number isn't even including social security. I think planning to live to 100 is silly.
It just feels like a good round number. You’re right about 90-95 though. I’m just a bit more conservative and want to have some cushion for my clients. Thanks for watching!!
750k or retirement savings at 60 years old puts you right around the top 20 percent. Guess the other 80% are going to starve. I live in Florida and I am not seeing a bunch of starving retirees.
You're not living to 100 - try late 70s to early 80s. Also post 75ish your spending is reduced drastically from what you spend in your sixties so you need far less. Most cases see about a 50% drop in the "no go" years.
Most people see a 50% drop in their no-go years, really?? Does their utilities, household expenses, health care etc etc really drop You may have a point if you said their discretionary spending drops 50%,most retirees don't actually have a lot of discretionary spending actually one-third are actually in poverty
@@johngill2853 Utilities and household expenses don't make up that much of a person's expenses. Healthcare costs is a major cost and may go up but things like traveling, groceries, gas, discretionary costs etc will go down drastically.
The concept of spending extra early on was not taken into account. The base expenses at retirement was stated. I don’t know how other people spend their money, but I doubt they are taking lavish month long vacations if they are working full time. So unless they are bar flys, and are ready to pay off their house - and choose to stay at home more, I don’t see how their expenses will decrease so rapidly.
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My expenses are only 13k a year plus my wife pays half. Get dept free before retirement. Plus we live comfortable.
That’s awesome!
yes, who spends $4000 a month on regular expenses? You would be living life like a King with that kind of spending.
Thanks for this video, Drew. I understand that it is simplified, but it’s nice to see. I’ll be anxious;y awaiting the next video where you take this to the software! My biggest unknown is my annual estimated expenses. I’m working on a budget, but I’m sure that $50k/year is more than enough for a single person relocating to FL. Thanks again!
Thanks for watching! Come on down to the sunshine state!! 🌞 🏝️ 🛥️
I get $5,000.00 per month + my home is paid off + health care taken care of ,, I save $3,000.00 each month. $2,000.00 is my monthly expenses.
Awesome!
That’s really depends where you live, for example, you may survive with 1600 in a lot of places ( according some TH-cam videos ）， but not in New York.
Very true!
Or Round Rock Texas $2000 for 2 bedroom apartment
He wants to account for inflation, but does not consider return on investment. At 1.25 million, all you would need is a 3% return along with SSI to pay for your yearly expenses, and you would most likely end up with over 2 million at 100 years old.
Great comment!
Awesome
Great job. Enjoy your videos.
Glad you like them! Thanks for watching and commenting!! 🙌
Here's a question for you. I retired 7 years ago, my wife retired 2 years after that. To date we have drawn any money out of retirement savings. At this rate, how long will out money last?
Not sure I have enough info to answer, but my quick answer would be never right?
Do you mean have *not* drawn any money? Big difference.
Can I retire at 62 with the following ? I am 55 years old married to 44 years old . I got 125 k saved in 401k , I got 40 k in stock account . 10k saving . Renting . I make 80k annual and my wife makes 30k annual . I co tribute around $1000/month to investment and $500 per month savings . Iam debt free .
Please let me know . I’m planning to move to Texas and forecasting around $40k / year expenses .
Thanks
Generally speaking, can a single, no children 62 year old male, with NO DEBT at all, retire with $900,000, assuming monthly expenses at around $3750?
I would assume yes unless that same person became a spend thrift and decided to foolishly gamble their retirement savings away in Vegas 🎲
why did you multiply by 10 for ages 60 to 67? Just wondering loved the video
I misspoke. It was supposed to be 7. 😅
Do you charge for a financial EKG session ?
We do not charge for calls or sessions to review your retirement. We do charge to create a fully comprehensive Financial EKG. Please use the calendar link in description if you’d like to set up a call. Looking forward to speaking with you!
Inflation needs to be computed with compounding not flat like you're doing it
Check out some of our more in depth videos where we break down inflation and taxes!
Hello ,
I got a question.
Thanks!
Thanks for watching!
i am a fan of other video which the gentleman retired with $500000 at 59. I find his video more friendly and fit to the real picture. Your scenario seems dream scenario for most Americans (average). Maybe it is based on your scenario as you must be a rich guy
Sorry you didn’t find this helpful!
You mean retire 500k, the guy that was in the music biz and sold a house in CA?
The expectation of simultaneously spending and saving the full amount of expenses for a quarter of a century seems ridiculous.
Thanks for watching!
If you invest for 30 years , you will only have invested about 87% of the principal of your total nest egg. Thats why it’s important to start early…so you don’t have to save dollar for dollar
So Drew, this is the least amount of cash you would have to have in the bank in order to retire at 60 years old. This doesn't take into consideration the idea that the money might be invested because I didn't see any rate of return numbers when you figured this out. Im just asking because I'd love to see this same type of example but instead, what would the minimum amount be needed if the money was invested. Great video!!
Yes you are right, if we were to put this under historical market returns, it could be less. Great idea for a new video!
Why do you always use a PIA of $2,800?
You must be watching!! It’s just a really common PIA amongst my client base.
3 percent inflation. Dream on.
Aerosmith?
@@yourfinancialekg that won't do it.
1500 x 10 = 10500???? Is that some sort of new math? For some reason I get $15,000. So is the rest of your math correct??? I'm assuming the rest is correct and I understand where you are going with this.
I thought the same thing
It’s $1500 x 7 = $10,500 for the years from age 60 to 67.
Isn’t math subjective? Lol. Thanks for watching! Yes, 7 years not 10.
I was wrinkling my face at that calculation😂
Multiply by 7
Hey Drew, I’m confused by the calc for expenses from 67 to 100. To simplify, $27893 (expenses less SS) x 33 years = $920,469 not including inflation? If using 4% rule, multiplier will be 25 instead of 33, amount needed will be $697,325. What am I missing?
Math wasn't right, but I see where you were going.
Thanks for watching!
Good video and like the presenter's content, but I have to say this model is not useful IMO. The presenter noted that is was simplified and did not take into account compounding inflation, but that is more than a side note. Not taking into account compounding inflation (from age 67 to 100 in particular) completely obliterates the model. Also, there was no account for any returns on investment. I don't mean to be harsh; just providing my thoughts. Thanks to the presenter for posting.
Thanks for watching and the feedback!!
You forget a lot of things go down in price
@@mikegruber172 Thanks for the comment Mike! Can you give me some examples for my next scenarios?
These numbers to retire are impossible for average working man .
If 1.25 million was required to retire at 60 very few people would ever be able to retire. This number isn't even including social security. I think planning to live to 100 is silly.
Let me know when you plan to check out and we can calculate from there
Millions plan to retire young and broke living welfare or other government assistance or public taxes .
Good vid but why 100yrs. old ? It's not realistic for a good example . 90 would've been better in our days
It just feels like a good round number. You’re right about 90-95 though. I’m just a bit more conservative and want to have some cushion for my clients. Thanks for watching!!
I’m never gonna retire because apparently I’ll starve and be homeless
Well I hope not!
750k or retirement savings at 60 years old puts you right around the top 20 percent. Guess the other 80% are going to starve. I live in Florida and I am not seeing a bunch of starving retirees.
Like I said….
These guys scare me with their calculations
Don’t be scared. Let it motivate you to start planning today! Thanks for watching.
$1500 x 10 = $15,000, not $10,500
Thanks!
You're not living to 100 - try late 70s to early 80s. Also post 75ish your spending is reduced drastically from what you spend in your sixties so you need far less. Most cases see about a 50% drop in the "no go" years.
Most people see a 50% drop in their no-go years, really??
Does their utilities, household expenses, health care etc etc really drop
You may have a point if you said their discretionary spending drops 50%,most retirees don't actually have a lot of discretionary spending actually one-third are actually in poverty
@@johngill2853 Utilities and household expenses don't make up that much of a person's expenses. Healthcare costs is a major cost and may go up but things like traveling, groceries, gas, discretionary costs etc will go down drastically.
Thanks for the discussion and watching the video!
The concept of spending extra early on was not taken into account. The base expenses at retirement was stated.
I don’t know how other people spend their money, but I doubt they are taking lavish month long vacations if they are working full time. So unless they are bar flys, and are ready to pay off their house - and choose to stay at home more, I don’t see how their expenses will decrease so rapidly.
Good point Thomas!
Stupid headline, but you know that. Just saying.