I retired yesterday at 58. I had spent a lot of time over the last year deciding if I should do it this year or next year, even though what I worked out with my financial planner showed that it was OK to do it this year. Hopefully we didn't mess up! 😊
This is such an important message. I was planning to retire at 67 just because, but a couple years ago I started trying to figure out the very soonest I could retire successfully. To my surprise, it turned out to be as soon as 60, especially if I retire to a less expensive location abroad, which I was already considering. When I really focused on creating a realistic retirement budget based on my actual plans, I realized I didn't need anywhere near the savings goal I previously set. Now I have a new goal that I expect reach at around 60. Understanding what you want to do in retirement and working backward to figure out what that lifestyle will cost is necessary to figure out how much you really need. Don't just chase an arbitrary number. Make an estimated budget based on a real plan, and use that to work out your savings goal.
Nobody wants to hear it, but if you were to replace "until age 90" with a probabilistic model that is reflective of actuarial tables, even their first plan would have a MUCH higher probability of success.
I am making this decision right now. Early retirement offer expires tomorrow at 5pm. I am only 58 and not quite comfortable. Looking at 60. University professor. I am managing the down side risk of working longer by saying no to a lot more than I used to. I prioritize my health and don’t publish like I used to. Don’t worry….the state still gets a lot out of me. I am just no longer willing to work constantly like I did for years. I purchased the software two weeks ago and LOVE it. Really helped me get clarity on where I was with my thinking.
Another great video James. I can't tell you how much you've helped me by watching these vids the last 6 months as I prepare for my upcoming retirement. Thank you.
I worked til 69 without really noticing. I was then paid for an additional six months severance - so that made it 69 1/2 before I claimed for SS. No one had given me ANY information about social security or Medicare. Somehow I have landed on my feet. ...I think. 😂
James, I wasn’t ready for your pivot. Glad you looked at quality of being together and enjoying your quality of the healthy time left! Thank you so much.
There are financial reasons that working one more year would be a smart decision for me. There are life/happiness considerations that have made me decide not to work one more year. Getting closer to that happening, and instead of worrying about whether or not I will miss the extra money, I am more wondering why I ever thought the extra money would be worth it.
I retired at 61.5 when I realized I had enough in savings. Even though I could have more if I worked to 65 or 67 enough is enough. Can’t take your money to the grave or beyond if you believe in that
I watched my parents and their entire social circle retire. It was a very very small percentage that actually had the choice of when they retired. It’s really dangerous to put yourself in the situation where you need to work another year in your 50s and 60s.
This Wednesday, someone I know retired from work. She put up a Facebook post about all the things she was looking forward to doing in the years ahead with her partner. That night, her partner had a major stroke, and passed away Friday morning. If it was in a movie, it would seem ridiculous, but terrible things like this happen to real people. Life is precious, fleeting, and uncertain for all of us.
200+k income, 6k core lifestyle expenses.... 1 million in the bank. HOW. I have a lower income, higher (albeit only slightly higher) expenses, and I'll be a millionaire before I'm 50. If I work til I'm 67, I'll have like 10 million in the bank, if not more. Goes to show you: you can't out-earn a lavish lifestyle. If you can curb those instincts in your 20's, you basically can't fail.
I know a guy at work who is on his 5th one more year. He’s really slowing down but still there. I’m going to retire this year at 60 instead of 62 when I planned.
I’m 56, single with no dependents. Have a lonely life outside of work. I’m in excellent health and want to keep working until I’m at least 70 and would prefer to work until 75. Working will definitely help my mental health as well as my financial health. By 70 or 75, I should have at approximately $2m stashed away. Plan to live on interest, dividends, rental income and social security without touching my principal.
At 7:35 - I suspect/wonder if the co-workers that died just before their planned retirement was not due to tragically bad luck but because of a serious health decline that forced them into a choice they did not want, which was to announce their imminent retirement.
Bingo... One more year of not living your life fully for a few percentage points on monte carlo. Downsize the house and party like its 1999 😀. Great Video.
Work 1 more year then the market crashes, then work 5 more years until the market recovers, then work one more year then market crashes then work one more year....
Yeah, it’s easy for a 30 something financial advisor to tell you to work another year when you’re 67. Much harder to do when you’re the 67 yr old that has to grind out another 12 months. I had every intention to work until my FRA of 66 and 10 months. At 65 I had enough. You can play the one more year game until you die.
James, you rarely mention going part-time as an option. Why? This couple could get their*time* and life while maintaining it without sacrifice. Why is working so often presented as an all or nothing thing? Smart perspective otherwise, but part-time is a consistent miss in many of your videos.
Great content again buddy! We really love your "out of the box" prospectives. Time, wealth and health - All three have to be considered. The fact people who are 70 and been working 40 to 50 years paying out the hiney on taxes, should be criminal. They have paid enough by then? Love your channel - Thank you!
Why is it that financial advisors NEVER consider spending the principle money?? The answer is obvious. Why die with over a million in an account, think of what they could have done with that money.
The last five years work overtime, two jobs if you can. The plan is to get that social security check as high as possible. Start in your empty nest years. When you do, you may have the same check if you retire at 62 as 67. Take time to travel while working, reward yourself but do the math. Add us the equation to see for yourself.
One more year is what my coworker said he never made it….
Expenses really drop off if you just drop dead
I retired yesterday at 58.
I had spent a lot of time over the last year deciding if I should do it this year or next year, even though what I worked out with my financial planner showed that it was OK to do it this year. Hopefully we didn't mess up! 😊
Good luck!
This is such an important message. I was planning to retire at 67 just because, but a couple years ago I started trying to figure out the very soonest I could retire successfully. To my surprise, it turned out to be as soon as 60, especially if I retire to a less expensive location abroad, which I was already considering. When I really focused on creating a realistic retirement budget based on my actual plans, I realized I didn't need anywhere near the savings goal I previously set. Now I have a new goal that I expect reach at around 60. Understanding what you want to do in retirement and working backward to figure out what that lifestyle will cost is necessary to figure out how much you really need. Don't just chase an arbitrary number. Make an estimated budget based on a real plan, and use that to work out your savings goal.
This video just reassured my wife decision to retire this year. Great timing. Just love these case studies James. Please continue them.
I truly hope that I'm not still "working" at age 67.
Nobody wants to hear it, but if you were to replace "until age 90" with a probabilistic model that is reflective of actuarial tables, even their first plan would have a MUCH higher probability of success.
I am making this decision right now. Early retirement offer expires tomorrow at 5pm. I am only 58 and not quite comfortable. Looking at 60. University professor. I am managing the down side risk of working longer by saying no to a lot more than I used to. I prioritize my health and don’t publish like I used to. Don’t worry….the state still gets a lot out of me. I am just no longer willing to work constantly like I did for years.
I purchased the software two weeks ago and LOVE it. Really helped me get clarity on where I was with my thinking.
I’m glad to hear that!
Another great video James. I can't tell you how much you've helped me by watching these vids the last 6 months as I prepare for my upcoming retirement. Thank you.
Im going to work till i get my goal of $2.5 MILLY. Im on track to hit it at 60. I have my fingers crossed 🤞🏾 🎉🎉❤❤
I worked til 69 without really noticing. I was then paid for an additional six months severance - so that made it 69 1/2 before I claimed for SS. No one had given me ANY information about social security or Medicare. Somehow I have landed on my feet. ...I think. 😂
My Schwab financial advisor keeps telling me to continue working. "We need your money. You don't."
😬
James, I wasn’t ready for your pivot. Glad you looked at quality of being together and enjoying your quality of the healthy time left! Thank you so much.
Thanks for watching!
There are financial reasons that working one more year would be a smart decision for me.
There are life/happiness considerations that have made me decide not to work one more year.
Getting closer to that happening, and instead of worrying about whether or not I will miss the extra money, I am more wondering why I ever thought the extra money would be worth it.
I retired at 61.5 when I realized I had enough in savings. Even though I could have more if I worked to 65 or 67 enough is enough. Can’t take your money to the grave or beyond if you believe in that
Good perspective
One more year may be 5% to 100% of your remining lifespan. How much will you sell it for?
I watched my parents and their entire social circle retire. It was a very very small percentage that actually had the choice of when they retired. It’s really dangerous to put yourself in the situation where you need to work another year in your 50s and 60s.
Warren Buffett says "I can buy just about anything but time!"😊
True
This Wednesday, someone I know retired from work. She put up a Facebook post about all the things she was looking forward to doing in the years ahead with her partner. That night, her partner had a major stroke, and passed away Friday morning. If it was in a movie, it would seem ridiculous, but terrible things like this happen to real people. Life is precious, fleeting, and uncertain for all of us.
That didn't go as I thought but I totally agree with prioritizing health and well-being.
Excellent case study. Could also rent out the house to create a revenue stream. Use part of the house rent to rent a place to live. Thank you!
I really appreciate you emphasizing the non work values of life.
200+k income, 6k core lifestyle expenses.... 1 million in the bank.
HOW. I have a lower income, higher (albeit only slightly higher) expenses, and I'll be a millionaire before I'm 50. If I work til I'm 67, I'll have like 10 million in the bank, if not more.
Goes to show you: you can't out-earn a lavish lifestyle. If you can curb those instincts in your 20's, you basically can't fail.
I appreciate you. My husband and I have employed this same perspective.
I know a guy at work who is on his 5th one more year. He’s really slowing down but still there. I’m going to retire this year at 60 instead of 62 when I planned.
I’m 56, single with no dependents. Have a lonely life outside of work. I’m in excellent health and want to keep working until I’m at least 70 and would prefer to work until 75. Working will definitely help my mental health as well as my financial health. By 70 or 75, I should have at approximately $2m stashed away. Plan to live on interest, dividends, rental income and social security without touching my principal.
Retiring in 2 months at 58…don’t want to be the one who dies on the job.
They reach FRA and can get full benefits so why work for another year? Time is shortening and most importantly their health is their wealth.
At 7:35 - I suspect/wonder if the co-workers that died just before their planned retirement was not due to tragically bad luck but because of a serious health decline that forced them into a choice they did not want, which was to announce their imminent retirement.
Bingo... One more year of not living your life fully for a few percentage points on monte carlo. Downsize the house and party like its 1999 😀. Great Video.
Thank you
Work 1 more year then the market crashes, then work 5 more years until the market recovers, then work one more year then market crashes then work one more year....
One more year to save more money? That's cute. You already had 40+ of those.
It's more year closer to end-of-life. Do you have 40+ of those left?
I’m working to July 1 then the wife goes on Medicare. Bye bye work at 63.
At some point you are trading time you will never get back for money you will never spend. I'm out in about 60 days.
At age 67, you don't know when your last day is today or tomorrow or 2 month later. I would not risk a damn second.
Yeah, it’s easy for a 30 something financial advisor to tell you to work another year when you’re 67. Much harder to do when you’re the 67 yr old that has to grind out another 12 months. I had every intention to work until my FRA of 66 and 10 months. At 65 I had enough. You can play the one more year game until you die.
I don’t think you finished the video
James, you rarely mention going part-time as an option. Why? This couple could get their*time* and life while maintaining it without sacrifice.
Why is working so often presented as an all or nothing thing?
Smart perspective otherwise, but part-time is a consistent miss in many of your videos.
Part time can be a great option when it’s available
Great content again buddy! We really love your "out of the box" prospectives. Time, wealth and health - All three have to be considered. The fact people who are 70 and been working 40 to 50 years paying out the hiney on taxes, should be criminal. They have paid enough by then? Love your channel - Thank you!
i wish i could not work these next 30, forget 1 year. 😆
I learned that only 3 percent of Americans has one Million for retirement. The Majority has less the 500 .
Work 1 more year never ends though.
Why is it that financial advisors NEVER consider spending the principle money?? The answer is obvious. Why die with over a million in an account, think of what they could have done with that money.
No one realizes it’s one less year alive….. what if you actually only have until 65, or 67, or at most 73??? Half of all people don’t make it to 80.
Wow, thanks for being the voice of reason!
Does wifey want you to be around her 24/7 for an extra year? :)
$8000 a month?😮to stay at the Ritz Calrlton.😂
that extra time you give up is not worth it. they should retire. you cannot replace your future for money! RETIRE
The last five years work overtime, two jobs if you can. The plan is to get that social security check as high as possible. Start in your empty nest years. When you do, you may have the same check if you retire at 62 as 67. Take time to travel while working, reward yourself but do the math. Add us the equation to see for yourself.