How Much Retirement Income Will $600,000 in Retirement Savings Generate?
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- เผยแพร่เมื่อ 20 มิ.ย. 2024
- How Much Retirement Income Will $600,000 in Retirement Savings Generate?
In this video, we'll explore the question of how much retirement income $600,000 in retirement savings can generate. Retirement planning can be complicated, but with the right information, it's possible to estimate how much money you'll have to live on during your retirement years.
We'll walk through a few different scenarios to give you an idea of what your retirement income might look like if you have $600,000 in retirement savings. We'll also discuss some strategies for maximizing your retirement income and making your money last as long as possible in retirement.
If you're nearing retirement age or just starting to plan for your retirement future, this video will provide valuable insights and guidance to help you make informed decisions about your retirement savings. So, join us as we explore the question of how much retirement income $600,000 in retirement savings can generate.
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Retirement income strategies and retirement income planning are two big pieces to anyones retirement planning calculator. Whether you are wanting to know strategies for "retirement planning at 30", "retirement planning at 40", "retirement planning at 50", or even "retirement planning at 60" understanding how much retirement income that you want versus how much you need gives you a roadmap to follow to and through retirement.
Here at Pearl Wealth Group, we run a trademarked retirement investment and retirement income plan for individuals and families who are wanting to retire called "Your Financial EKG™." What we are trying to visualize is how long a persons retirement savings are going to last throughout retirement. If you are looking for early retirement planning tips or trying to saving for retirement in your 50's, You Financial EKG™ is a great tool to help you understand where you are retirement planning. Retirement planning and retirement income strategies shouldn't be complicated. They should just be done right.
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Pearl Wealth Group
Drew Blackston, CRC® & RFC®
Office: 813-807-5060
Info@pearlwealthgroup.com
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Getting you to Retirement, through Retirement, & protecting YOUR ability to stay in Retirement!
#retirementplanning #retirement #financialfreedom
Shameful times in America that we are questioning if $600,000 plus SS at 67 yrs old is enough to live on.
It’s expensive out there!
$33,000,000,000,000. Blessed are our children, for they shall inherit our National Debt. In the meantime, our money is worth little.
@@kellycassutt3165 true statement
Blame Uncle Sam. My property tax + utilities already cost $2000 per month.
Yep. This country ain’t what it used to be!!
Even a paid-off home has monthly payments to cover property taxes and insurance.
Very true!
And yearly maintenance. Painting, roof, yard, utilities, etc.
@@teams3345 i budget 1-2% x home value / year in 5 year increments to cover such costs - has worked even over past 5 years w/ small renovations/upkeep
My numbers are nearly identical to the scenario in your video. I moved to Ecuador to lower my cost of living. But...I also started dividend investing and am now earning ~10% yield on my investments. I'm hoping I can live on dividend income (currently at $57k/year) while reinvesting at least 25% of my dividends so I don't have to sell any securities. I'll also collect SS at 67.
Congratulations! I also want to do this. Where in Ecuador? And did you speak much Spanish before the move?
Ecuador is a great country, although there is a bit more violence than before. I am a College Business Professor who spent several Summers teaching (in Spanish) at Universidad San Francisco de Quito (USFQ) outside of Quito. I have also done a Fulbright in Guayaquil (ESPOL). In Ecuador, the cost of living is reasonable, the culture is rich, the food is natural and delicious, and the people are warm and friendly. There is a bit of regional rivalry (as in most countries) between the more mountainous region where Quito is located and the coastal region around Guayaquil. So, Ecuador is a great choice. The one drawback I have always felt (in actually dealing with institutions in the nation) is the lack of stability in the government compared to other Latin nations (e.g. Costa Rica, Chile, Panama, and even regions of Mexico). In the long run, this can affect the quality of life. But this can happen anywhere. So "felicitaciones," and enjoy your retirement.
A good friend of mine is from Ecuador but he’s telling me that there is critical crime there now since the drug cartels started running drugs through there.
Home prices don't go up, but home insurance and Real Estate taxes do.
No kidding
I love the deep dive into the numbers as well as defining the actual s and estimating their future growth. Too many YT´rs present a philosophical approach to retirement without backing up the numbers. I don´t need any more personal advice. Until I saw this video I had not given thought to Roth conversions by installment. Makes perfect sense and using a 5 year outlooks allows one to modify their plan as needed. Good job Drew.
Thanks for watching Glenn!!
Living below your means" adjust your lifest, be frugal, budget, save and invest. This helped me out as a 6 figure earner. I've grown over a million in retirement savings with this method
Love it!
The term HENRY. Is really so hilarious. Sadly there's actually people living paycheck to paycheck
@@louis-freddieceaser8811 That is why I want to help inspire those to save even what they can because little savings can still compound into retirement income.
Marco OH, 39. I Just started at my six figure job after being in and out of the poverty line. I really hope I don't end up like this. I'm scared really scared!!!
@@marcosalvatore673 Don't panic, start out easy, don't buy things you don't need, budget every money, always save a portion of your pay atleast 5%, Invest from your pay check; it grows and helps you accumulate wealth easily.
Since the title of this video is How much income… it would be nice to see at least one scenario solved for max income with little to nothing left for legacy. Thanks for the video, Drew.
Great idea 💡!! What age do you want funds to run out?
I will adjust that in my next video along the same topic lines. Thank you for the suggestion.
@@yourfinancialekg 95 or 100. I’ll let you choose his end of life 😑
That’s pressure!
The Equality State
Great idea....I'm also thinking if the person has this amount and retires at 65 y.o ..he may have a video on that scenario but I'll have to look.
Excellent information. Thank you for sharing. Your awesome
Glad it was helpful! Thank you for watching!
My advice to this guy is keep working until at least 65 and max out all of your 401K and other savings until then.
Great advice!
David has more than enough to retire. If he doesn't like his job, he needs to quit now.
@@poonpoonsmith399 Great comment!
Yep. Work til 65, save, invest, and then retire debt free and comfortable.
Great info. Thanks for the video's!
Thanks for watching!
I watch a lot of these videos and your’s is definitely top tier
Thank you!
I must say, Mr. Blackston, you ROCK! All of the "levers" are explained clearly, even if my non-financial brain needs to watch parts over 2 or 3 times. Thank you.
Thank you for watching Randy!
I can’t believe you explained that in such simple terms, that I understood it completely. Great video.
Thank you for watching!
I messaged you guys on LinkedIn
Absolutely the best and top most videos on retirement planning. Loved every bit of your analysis and approach. Thanks for sharing. I'm considering getting into retirement as well as personal planning to help those who come to me for advice. Can i do that as an individual or do i need to be certified? What all should i do? Do you teach?
Glad you enjoyed it!
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How much of the $600K is in an IRA or other qualified account? How do RMDs affect cash flow and earnings? Any plan to leave anything for heirs? Why not an income annuity?
Great video!!!
Glad you liked it!
I realized things in America were worsening for retirees 5 years ago, so I started my "Escape to The Philippines Plan"; I was 60, with only $25,000 in savings and I had debt when I started. I'll
be 66 when I retire in The Philippines 4/2024, and I'll have $220,000 in savings, $1,800 in Social Security $850 in monthly interest income, $1,500 monthly from 50 hrs. of part time work for
a U.S. company and NO DEBT. I can live VERY well in The Philippines for under $2,000 monthly, and this includes a "top tier" health plan at the best hospitals there. I'll be able to SAVE $30,000
yearly and live without fear of "running out of money" before I die, as the WAY LOWER cost of living and good healthcare (a fraction of The U.S.) in the Philippines makes this a nice reality. I
recommend others give this "plan" some thought, and there are other places in The World with similar low costs too, but as a retired Veteran I can get a retirement visa for only $1,400 with a
$10 yearly fee, English is widely spoken in The Philippines, and there are many other benefits and "perks" for retirees there.
Great job CD and thank you for your service 🇺🇸!
Retired here with my wife for a few years now. You’ve planned well ! We’re in Manila (BGC) not far from first class St Luke’s hospital.
@@mikebingham976 Awesome!
Layed over in MNL years ago with airline job. Cheaper then, but still hot as hell like Houston. Buddy has lived there for over 30 years. I know why old guys retire there, and it's not for medical.
@@wa210 I'm assuming you mean "old guys" come here for the women, however that is not my motivation; mine are more sporting, traveling and other "non-dame" related,
though I might date a little. I've spent a good amount of time in P.I. and I don't think the weather is so bad, as I've also lived in S. Florida and other similar hot/humid
climates. Actually, the "medical" services and insurance in P.I. is a fraction of the cost of The U.S. and there are several top quality facilities on the main islands.
Great as always. I believe he will want to spend more per year. Should have been saving some Roth and HSA whilst eating broccoli - work a bit longer and max catch-ups ? . Also should do bigger roll overs if down years I would think? Probably dead at 80 but good to have the longevity insurance. Looking forward to my next call Drew.
Thanks for watching!! Excited to visit again soon as well 😃
Great video! So doing Roth coversions I will not pay as much taxes? I am confused how you did those coversions....?
Good question! You might pay more up front but the goal is to pay less in the long run but everybody's situation is different.
Great content. Saying hello from St.Louis.
Hello back to you from Tampa!
Salute.@@yourfinancialekg
Simple answer . Not enough 🎉
We have that much. No bills. Home paid off. Just a car payment. I get 1800 a month in SS and my husband gets 2700 a month. I get a 500 dollar pension payout every month. We are doing great. We take 2000 a month from our IRA- less than 4 percent. We’ve been retired 2 years and after taking that much we still have been making money. I think it depends where you retire. I see at least a couple of small trips a year for us too
I’m 65 and my husband is 66. It has helped that our SS is better than average
Great contribution!
I must be missing something on the last part of the video. I think you said that with Roth conversions (the left side of the screen) he would have over 900k when he died at 100 and on the right side of the screen the scenario is the same except NO Roth conversions he would only have about 300k when he died at 100. That doesn't make any sense since the only difference is moving the money from a tax deferred account to a tax free account and paying the taxes. Yes, there would be some RMDs but in a linear growth calculation you would always have more money if you did NOT do Roth conversions since most of the money is still tax deferred and only subject to tax when it is withdrawn. Also, I assume that is a linear rate of return which is not feasible, does your software not do Monte Carlo? The mean rate of return in a Monte Carlo would be significantly less then the 900k, it would be more like 300k like you had on the right side of the screen. Most of the video sounded good up to that point (missing some stuff but how much can you include in a 20 minute video after all).
Some good information here. The expectation would be 6-8% on average for the S&P over time.
Thanks for watching Red Barn! 😉
In all likelihood the next 10 to 100 years will all be negative years as the 100 year bear finally rolls in to bring the markets back to fair market valuations. The same thing happened in 1929 and 1873 but this time everything is much more overvalued than back then.
Yes, before tax. What about net income. My guess was 4%
@rockinchucker4941 it really depends on your tax bracket, but usually, you want to assume 30%
Did you figure in the cost of Medicare and a supplement plan when David turns 65? 🤔
Great comment and thought! Healthcare is built in for Medicare part C, not supplement.
What roth conversion are you converting the pre tax income? is it the Roth IRA or the Traditional Roth? Thanks
Roth IRA is where the conversions go. Hope that helps!
Social security goes up by the inflation rate each year, so it would be more than the $2800 it’s projected at right now.
Very true! We just don't know what that actual figure will be which is why we don't use that in the projection until we are on SS.
Unless there are cuts to social security by politicians who consider SSI an entitlement. Neat, huh?
Great video. A tragedy though that there is no money left for a family legacy. No wonder the future generations are not wealthy. There needs to be far more education earlier concerning financial sustainability.
Totally agree
Why work till 67? Might kick the bucket at 68
I stopped at 56 just in case 😂
Very true!
Agree. The guy in the example is doing pretty good.
Not everybody can
😂
Just retired. 62 with two pensions, 700k 401k and am planning on taking SS at 64. Mrs still working, with a pension and similar 403b. No debts. I see your EKG schedule is out till Dec.
Does your company provide financial services where one doesn't have to keep on top of planning as you said at 95?
Thanks for reaching out! Yes, you can plan out to whatever age you want. I just prefer to be more cautious just in case. Looking forward to speaking in the future!
good video - but a single person with 600k @ 60 is in top 28% and as such would probably have a larger SS benefit --- great idea of ROTH conversion w/ such a small fixed expense + a modest paid-off house. My plan calcs showed that i could do it at 60 w/ 500k & at 65 w/ about the same amount. So i think there is some reality (since i had 25% more expenses but larger SS.
Do you have a video extending the conversions prior to RMDs @ 75 (for this age cohort) or even w/ RMDs to calculate the ROI of the various asset locations/accounts at the 40/60 or 50/50 convervative allocations?
BTW, yes, I subscribed w/ all notifications
Thank you for watching!
Between a combination of pfd stocks & MLP pipeline stocks I’ve got about $600k generating ~$110k/yr. I have assets beyond that, but it wasn’t hard to get that level. Otoh I won’t see much price appreciation of those stocks. I treat them like an annuity.
I’m still not collecting SocSec, which will contribute about $30k/yr in a few years.
Awesome job! 👏
That's sensational. Are those all dividend paying stocks?
You’re below investment grade to get those yields. Make sure your MLPs are not in tax shelters like IRAs. Tax nightmare if so. Also once in a while like the beginning of the last decade they can plummet. I like your strategy but save big on those returns because yield hounds often get bloody noses. For the record I’m doing some similar things but staying closer to investment grade on most. 6-7% is very doable in Jan ‘24. Good luck to you!
@@alr9967 sadly three of my biggest MLP preferreds are getting called. ET series C, D, and E
24k annual. + pension and or social security
Good goal
Thank you for having a realistic scenario, most of the time on TH-cam I see David is 45 with $8million and no debt….. This was a great video and very helpful.
Glad you enjoyed!
To me that's a whopper fortune, I'm nowhere near that number. Now I feel poor as dirt!
I'm with ya
WYOMING - 'THE SQUARE STATE'
it's on my car's license plate (we are only issued one car license plate in my state)
Nice! Thanks for commenting and letting me know!
Got my wife investing 20% into her 401k with a 2% $1 for $1 match and .50cents for the next %4 she started last year at 40yrs old I plan on brining it up to 25% next year my goal is for her to have over a million when she retires at 67yrs old. She makes $65k a year at the moment.
Awesome!!! 👏
She has to work until 67!?!? Start investing in real estate.
If I were married, I'd choose for myself how to invest for retirement. I wouldn't tolerate a husband deciding these things for me.
@@cathyallshouse2981marriage is teamwork whoever is better at financial planning can crunch the numbers and plan the family retirement goals.
@@cathyallshouse2981 lol..true
Unofficially Wyoming is the Cowboy state, officially it is the Equality State... They do not have motto on License plates
Love the “Cowboy state”!
Love the cowboy on the license plate
Thinking the cowboys was on and still maybe
on the license plate even riding a horse
state governor and legislature is corrupt though and have a tendency to move to arizona when they retire. many hidden taxes too.
You make things way too complicated.
Sounds like David needs money for 7 years until Social Security kicks in.
7 x $35k = $245k
$600k - $245 = $355k
Once Social Security kicks in at 67, David will receive $33,600 annually, plus he still has $355k in retirement savings.
That's my simple man calculation.
I know I didn't add 5 years of Obama Care, inflation, taxes, fees or interest income, but I think $355,000 will cover those.
Simple is awesome! Also "simple man" is a great song. Thanks for watching!
Government may need to print $$$$$ to pay out SS. Which means very high inflation.
He needs to work to 67 then he is good on everything that's not complicated at all. Lol...
I am very surprised that you did not mention healthcare costs. Especially with him needing coverage from 60 until 65.
The obama care subsidies work strictly on income. Especially on a single person, if he took that much money every year he would have to pay full price for a decent insurance policy. And we all know cancer and cancer meds can bankrupt you in a hurry.
You better have a plan in the event of a healthcare crisis.
Healthcare is very important!
And there needs to be a separate class on Medigap policies which, for most people, give much better coverage than Medicare Advantage plans. MA plans often cost less, offer fluffy up-front benefits, but have remarkably higher overhead costs, higher declination rates of claims, and you might get "stuck" with one forever. To leave MA plans, the Medigap plans put policyholders through underwriting, and something as innocuous as basal cell skin cancer makes one an unacceptable risk.
Retire in the Philippines.
$1,500/mo = comfortable living
$3,000/mo = living like a King
Awesome!
It would be nice if he has a work pension on top of the IRA and SS. 8 more years before my MRA(57), and I am aggressively Investing my TSP(500k) right now into C, S & I funds hoping to get 10-15% interest/year. I can't wait. The VA will take care of my healthcare for no fee. Thanks for this video as it makes me more confident to retire early.
Glad it helped!!
Same here. Get those catch up contributions also with your TSP. You'll be a TSP millionaire!
There's one bit of fallacy here. I notice you picked up the optimum here of waiting until 67 to retire and start drawing social security. What if he dies at 67? In this case he gets nothing and the good government says thank you David for giving us your money for some 45 years and have a good day!
That's true. You can claim earlier if it makes sense.
Go where your money works hardest. I have a pot of 700k, heading to SE Asia, happy days
Excellent idea
How old are you?
I'll be 68 years old in 2 weeks. My wife is 67. We have close to $700K in our combined IRAs. We have an $839/month mortgage with about $450/month HOA. My wife has a car payment of around $500 per month. We don't really have any other debt. I was hoping to retire and start drawing social security next year when I'm 69. My wife wants to start drawing from social security now but keep working until around August of this year. Both of us have birthdays in February. I estimate that we will each be getting around $2000-$2500 from Social Security. Do you think we will be okay to retire or do you need more info?
Thanks for all the info. I hesitate to say "yes" in the comments section. Reach out to us at info@pearlwealthgroup.com. Let's get you through retirement!
health insurance can run between $1000-$1500 a month, $2900 is not going to cut it!!
What about ACA subsidies for income? 35k puts him well below the maximum income threshold.
If you are 65 or older all you need to purchase is a Medicare supplemental policy which typically run between 250 to 300 a month.
And Medicare part C is even less expensive if you are ok with copays and deductibles.
@@yourfinancialekg As I approach retirement, I recognized the importance of pumping money into my HSA. Let that HSA account build up.
@@garychristison763 Protecting your health care in retirement is huge. Awesome job!
If you wait till 67 for s.s. and live on savings, do you make back the from higher payments to account for what was used from savings? Our s.s total payments evens out around 70-80 y/o. I took my s.s at 63 with the covid shutdown and loose of income but did not need it since we could live on my wifes income so all my s.s has just been going to the bank, untouched.
Great question! I think it depends on your individual situation. When I run an EKG for someone it’s not a definite yes at 67 or yes it’s 70. It depends on when they need retirement income and what their retirement expenses are.
@@yourfinancialekg I did not "need" mine but at the time of the shut down and u/e ending and stimulus also ending I saw it as a safety net to build a savings to not touch since the s.s site showed my total payments no matter when I started converging at around 79 y/o. I chose to take my payments now, work p/t under the max allowed earnings and bank the money. My wife has now done the same but she actually comes out ahead with s.s and part time work with much cheaper insurance than medicare.
@@clbcl5 that is awesome! Y’all are doing what is best for you. Great job!
@@yourfinancialekg And without knowing what I was doing too.
@@clbcl5 It's a good feeling. Thanks for the conversation and watching. Really enjoy the interaction!
These stories always end the same. You have to live on a tight budget through your retirement years plus you have to rely on your social security to even make that work. Any figure you have under 1 million is going to be difficult to stretch over a 25 year retirement.
True. All depends on lifestyle.
Not if you bet the horses I tell you to bet.
true, but most of these have you passing on your entire retirement account onto heirs. Would be nice to see if you spent down 75% of your account before death what your monthly income would be. Also less than 1% are going to live an additional 30-40 years in retirement. My sister and I tell my folks to spend it all as it is their money. They are taking trips 3 to 4 times a year plus a ton of weekend getaways.
@@unclenaynaywell that’s ok , to do if you don’t want to help your heirs to be financially free. Not my dream of knowing that my children and grandchildren will HAVE TO BE subjected to the harsh reality that being employed by a company may being . Financial Freedom, but be a productive person for the good of society
@@tracymaxie3641 give each child 20k at 20 and 50 years of compound interest based on s&p500 will make them millionaires.
How do I find a financial planner/advisor who has this kind of knowledge and these kinds of software tools that will work on an hourly fee basis? I only really comprehend about 50% of the information in your video. I need someone to review my portfolio and get me set up for success, then meet with me once or twice a year to review my investment performance and make adjustments where necessary. I am extremely intimidated by investments and tax code. I have reached out to a handful of CFPs and none will work hourly.
Randy, email us at info@pearlwealthgroup.com and we can talk about what you are looking for.
@@yourfinancialekg I'm in the same boat as Randy.
You are smart to insist on a FEE-ONLY advisor. Most of them want you to move your investments to their care (funds under management), and then they collect an annual fee based on how much you invest. In that scenario, my finding has been they no longer care about you or your actual needs, they just tell you to invest MORE with them, since that is how they make more. It's an inherently flawed system.
Why work till 67? Might kick the bucket at 68
I stopped at 56 just in case 😮😂
Good point!
Take SS as soon as possible, don't gamble! Consider how old you need to live to break even, I would need to live to 82, just break even. This is a bit abstract but, only after age 82 I would receive 30% more, up until then I would just be catching up to what would have received between 62-66. If I die before 82 then I lose money when comparing 62 versus 67. In the USA today the average age of death for a man is 73 a women is 78. Consider when your parents and grandparents past away, when deciding what is best for you.
Thanks for sharing!
So, on the white board, he zeroed out around 95 years old. When you went to the software, he was at $900,000 at 95 years. Was the only difference the Ira conversions? Am I missing something else?
All of this sounds great! And my money manager also has me living to age 99. The reality is that the average age of today's male is around 73. Hmmm
Its very true. I want to be on the cautious side but yes, 82 is the average mortality today.
Probably best if you retire from 62-67 y.o...and to have a 30 year plan just in case b/c many people nowadays are starting to reach their 90's.
I wish you were up here in S. Indiana. :)
I am everywhere if you have an internet connection and phone! What part of Southern Indiana? My family is from Rockport.
@@yourfinancialekg I'm in Sellersburg just across the river from Louisville. My wife is from Irvington. We're close to retirement (like months away) but I may need a warm and fuzzy feeling before pulling the trigger.
I grew up in Elizabethtown just south of Louisville. Lots of good memories. Would be honored to help in any way I can!
If I turn 67 and my wife is going to be 70, will she still be able to apply for spousal benefit at 70 when I claim at 67?
Yes!
Research a career that has a full pension guaranteed ie, law enforcement , Federal civil service, municipal , State government positions. My career choice had this in mind and I worked thirty years knowing my pension contributions and my employers contribution would allow me to retire at 57 with a net pension equal to my net earnings while working. Those jobs are out there you need to work hard to get one ie education etc.
Thanks for the contribution!
I guess a pension can be a great thing if the taxpayers guarantee it at 100 percent, no matter what.. However, that's not always the case. For example, the airline pilots went from retiring with huge pensions to having their pensions dropped on the pension benefits guarantee board.
@@kennethsouthard6042That’s why being a cop or teacher or fireman is the way to go. Guaranteed. Plus one of my 403b choices to invest in at a fixed guaranteed 7% a year. My pension is close to $9K. Retiring next year at 59…
Money can be put into a Roth when you are no longer working?
As a conversion, yes!
I live in Virginia.
Thanks for watching in Virginia!
I really wanted to find out what the number was but I just I can't take you anymore and your discussion
😯
Not one mention of how annuities could guarantee his retirement income.
Very true Allan. We usually don’t talk a lot about product on this channel but annuities are a viable option.
@@yourfinancialekg a brokerage account is a product and then talking about bonds and stocks. But hey it’s your channel.
And your heirs get zilch. If they read the will you could get murdered that way.
@@parkerbohnn lol
We love Aldi! Savings there offsets the cost of overpriced coffee at Starbucks.
Steve, it’s good overpriced coffee ☕️ lol!! Thanks for watching.
If I can’t afford Starbucks in retirement then please kill me.
@@edhcb9359 More of a Dunkin fan?
@@yourfinancialekg Just saying, if paying for coffee is a concern in retirement, I may as well not be retired.
@@edhcb9359 Very true.
Wyoming people - Cowboy up! Real Hardcore Wyoming people- Power river let her buck.
Love it!
Wyoming is a called the “Cowboy State”
Thank you!
I see this all the time - wait to take social security. Like, do all you guys work for SSA?
Why wouldn't you take your SS at 62 (sure, it's 70% of what it *could* be) but then take less from your 401k and let the 401k grow by taking less of it? You've got him taking out of his 401k for 7 years! What growth could he have if he lived mostly on SS for those 7 years and only took a 1/4 of the 401k you have him taking?
Is there some secret formula that tells you that taking SS at 67 is far more lucrative than taking it at 62 and leaving 401k alone for that time?
What am I missing?
Thanks for the comment! I just try to plan out for each individual person. I have many different scenarios where a client would take SS early. Just depends.
The Cowboy State. TY This is closer to my scenario except I want to work a seasonal tax and accounting job during tax season that should pay with take home pay, around 19K per year. How much do you charge?
Hey Kevin, please email me at info@pearlwealthgroup.com and I can give you the run down on fees. Thank you so much for watching!
@yourfinancialekg I have a special case where my wife and I want to retire at 60 but leave at least X amount to both our kids when we die. If this would be an interesting video for you to make, let me know. I am organized, with all the details if it sounds interesting to you.
the problem is inflation
Very true
Take the social security at 62 and invest it instead of waiting 5 yrs. Tomorrow isn’t promised
Only if you aren't working
If he has no debt, what is he spending $35000 a year on?
It’s expensive out there Paul!
Probably income tax.
Home and Auto Insurance = 150.00
Food = 500.00
Utilities = 150.00
Auto Fuel = 150.00
Car and home repairs = 150.00 budget
Buffer, just Because you will = 500.00
Property Taxes = 250.00 (rural living )
Cell Phone and Data Plan = 90.00
There’s 1,940.00
He has to eat
Maybe retirement isnt worth the headache. Seems like its a gamble more than anything else. 600,000 in retirement, and SS and he'll still run out of money?! No No No. Apparently Im just plain crazy because I'm planning a retirement that allows my vash to continue to grow despite taking my monthly distributions...regardless of inflation.
You can do it!
Will he downsize his house at a certain age?
That’s a good idea
Simple calculation $2800 per month soc sec is $33,600. $600,000 invested @ 4% = $24,000. $33,600 + $24,000 = $57,600. If he needs $35,000 to live, he has an excess $22,600. This should cover everything and have $22,600 extra and still has his initial $600,000. You don’t need all this fast talk to confuse everyone.
What about taxes, inflation, and market risk?
Sounds like youre just spending down the $600,000. You have taxes both ways only youre spending down paying taxes instead of paying out of the interest earned. My calculation all expenses are met and you still have $600,000
Health Care Cost?
Healthcare is expensive and should be factored in!
Using voo for retirement dividends makes zero sense. What does make sense are stocks like vz or mo or funds like pid or etc. why you might use voo would not do for anyone. The nominal averyfor those mentioned on 600k would be 60k with no principal drawdown.
Thanks for watching!
$600,000 saved for retirement should be at least 600K. When you die. Live off what it generates, should be 8 percent or better. Add SSN and you should be in above average income earner in 80 percent of the cities in the USA. And you can live aboard as a option.
If your single why leave anything left? Why live like a hermit all your life and leave $600k for someone to live like a King!😂
It's so clear to me now,
Can you help me to buy into the investment product where with 600k equity it is assured that:
equity is preserved for me, and grows at the rate of inflation,
interest paid out to me will be $24,000 with COLA adjustment each year for inflation
that's what I want. thanks for your help
Please contact us directly for help with this question kevin welsh. Thank you!
Short answer: It depends.
That's a good answer!
currently 600k generates me 120K a year.
😮
Better to park that $600k in a high yield online savings account earning 4 to 5 percent and what if he dies at around 65 or 70? Better he collect his social security as soon as he can at age 62 so he can enjoy it.
Good point
But that is an extremely poor suggestion. How do you expect that to be sustainable. The current rate is between 4 and 5 percent but two years ago it was what, 1.25%. It fluctuates with the inflation rate. So you simply can't depend on it.
Who is this Brock Lee Eader you speak of?
🥦
Should take social security earlier than 67
Good idea
If I was investing it probably none.
You can do it!
@@yourfinancialekg I turn 65 this year and my plan is not to blow my brains out trying to make millions of dollars quote investing/gambling. I have enough money and my only two heirs my niece and nephew will be getting over 100 million dollars apiece when my brother and sister kick the bucket. My brother-in-law has to die first before my sister but he's 4 years older than she is.
Anyone who starts out with an assumption that the S&P will earn 1.8% annual return, and bonds will bring 4.24%, is either ignorant or being deliberately obtuse. The inverse of those numbers is far closer to the long term averages. Also, a 60 year-old should NOT have a 70/30 split of bonds and equities! If this is the financial advice you're giving customers, I can't help but wonder what kind of kick-back the bond funds are paying you?
I think you might be confused. We don’t get kickbacks or commissions as fiduciaries. Our assumptions are 6% market returns on the S&P 500. Thanks for watching!
@@yourfinancialekg - It's right there in black and white, on your board....S&P 1.8%. I'd bet $100 you are happy to help a customer with their retirement planning, by taking assets under management. When the current administration removed the requirement for advisors to act as fiduciaries, it put the advantage back in your court, at least for the uninformed.
Jason, arguing gets us nowhere. Thanks for watching. PS We are fiduciaries by the way we are licensed, not what the SEC says.
@@yourfinancialekg - Just making sure your viewers understand.
@@jasonbroom7147 The 60 y.o is conservative, he fiqured 4% instead of 6% which is fine..now it's just getting 1.8%. Re-watch 7: 30 to 8: 00. He can also adjust every 5 years and go from 70/30 now [shouldn't be 40/60 or less now] to 60/40 at 65 y.o., 50/50 at 70, 40/60 at 75 and so on.
wow....I think alot differently than this advisor.....10~20% returns with various dividends.. True passive money. clm iep usac arr dvn
Why are 90% of these "can I retire" scenarios always single?
I would say maybe 60% are single but we do married couples as well. I will keep that in mind!
Saving won't generate any income. Money you already have is not income. I've been retired for over 7 years now and all my money is still in the bank.
Awesome
You asked about the savings only.
I don't understand?
@@yourfinancialekg I read “how much income can be generated in retirement from $600,000. The convoluted things from a person before receiving via Social Security comes into any situation isn’t something fixed. That makes it hard for me to what the investment a person may have. In my own case, I am well beyond could be taking Social Security if I could, in fact I may have to do so during my time yet I may still be working. I guess you’re suppose what might happen yet it wasn’t very clear to me. Presumably you assumed the 60-62 years old they had to use cash and savings… as I said, too convoluted and confusing for me. Sorry, maybe I am just too smart enough to. Thanks for your post.
Approx 8 % in a fairly safe fund = 48,000
Great idea 💡
My retirement plan, 1) Lottery 2) Casino 3) Leech off family.
Do it!
😂! Good luck with that. Let us know how that works out in 20 years.
Hey!!…I don’t care about his expenses. I don’t care about his SSI. How much income will the money make?? Ugh!!!!!
All those factors determine how much the 600k will generate. Thanks for watching!
Too confusing
Why no mention of his healthcare costs until he reaches age 65. If your on Obama care your roughly $600/month and that is if you have $50,000 of income or less.The more income the higher the premium. And at about $70,000, no subsidy at all. Healthcare is extremely expensive especially here in FL, not sure about Wyoming. And it does play a huge roll under the age of 65. If I were him, I would cash in enough money and take the tax hit now so he could live of cash for 4-5 yrs and let the rest of his money grow. Just another thought.
Great idea 💡
Single guy living in Wyoming. If he really loves Wyoming then cool beans. I'm 66, single guy and moving to SE Asia next year hopefully. I have exactly the same numbers as in the video.
Single Western men over 60+ can easily find a great young attractive woman to be a wife or partner. Yes, she's looking for security (money) just like every other woman on Earth. And yes men are looking for sex. But that doesn't exclude a great relationship. Cost to live in SE Asia is survive under $1000, live well on $1500 and really well $2000+.
It's a little strange focusing a lot on getting an extra couple hundred bucks by investing here or there, what age to take SS, etc... when the single biggest thing a person can do is change what they spend money on. Improving lifestyle while cutting living costs by 50-75% is the big win.
Plus SE Asia prepares me for extreme old age when I'll start needing help. A wife/partner can provide that...well, if she's a young SE Asian. An American wife is very unlikely to help or even be able ti help. Plus a live-in housekeeper is about $100-150/mo plus food. A fully trained Registered Nurse makes about $500/mo. Medical is excellent in some large cities, very affordable and most important to me is it's a very short wait, day or two, to see even a specialist. In the US the wait can be weeks. If you can't see the doctor it doesn't matter how good a doctor they are. That level of care is much better inside SE Asia.
Thanks for the comment
"Single Western men over 60+ can easily find a great young attractive woman to be a wife or partner. Yes, she's looking for security (money) just like every other woman on Earth. And yes men are looking for sex."
If you are thinking about retirement in the near future, putting your money anywhere near the stock market would be worrisome. With the idiots we have as our representatives, thery will save themselves with all that iside trading and you could lose everything overnight . My financial advisor was getting a bigger chunk of my money than me. The stock market is not safe. I ended up getting a part-time job to make ends meet . Don't put your nest egg into anything you don't fully understand ...too many unethical players out there.
If you can't generate a 10% return (60k from 600k) you probably didn't earn the $600k in the first place.
How do you do it?
@@craigschray4486 @craigschray4486 Maintain an open, versatile mind. NEVER put money (even a small amount) into something YOU can't use if nobody else will barter for it because THEY have no ACTUAL use for it. (eg. gold)
And always keep to the front of mind the reality that 'value' and 'price' are are two ENTIRELY different things. And NEVER allow anything to go to waste. (I have more money than I'll ever be able to spend, but still 'Dumpster-Dive'; and make a lot of friends (including hungry animals) I feed from the proceeds. And also inspect demolition-sites, from which I've built several family houses. Just yesterday I picked up 52 metres of 15sq mil. copper cable; exactly what I needed to install a used solar-system for a neighbour which I'd bought for $230 because it was 'an offer too good to refuse'. There's no 'price' attached, but the 'value' of the 'returns' will be unending until one of us falls into a grave. GREAT feeling!
Wastage, particularly of food, should be at the top of ANY Don't-Do list, including the Ten Commandments! (and I speak as a devout atheist.) Could go on if you like (dabbblesATgmailDOTCOM), but You'd do well to rely more on the instincts bequeathed you by a few million generations of ancestors than on the bullshit pushed on you by the 'World as we know it'. Those ancestors SUCCEEDED (otherwise you wouldn't be here) and one thing you can bet on is that THEY never wasted anything.
@@craigschray4486 oops! got a bit sidetracked. But the 'making money' thing operates on the same principle:- Common sense. I've made a lot of money (more than once) by NOT following the 'expert' sheep: instead relying on my inherited instincts. An inheritance of $33k turned into seven-figures in 38 months because I realised (just from reading the newspaper in the days before the internet) That (a) the banks were competing to pay approx. 6.5% dividends and (b) the government wouldn't allow a bank to fail, if necessary by 'bailing them out'. An opportunity that translated into 'Waste not, want not' in my instincts. After a couple of handouts of 'free cash' it occurred to me one 3am (my inspirational time) that all the four major banks paid dividends at different times (all still at $6+%). Bingo! Four payouts at 6+% pa. Then another 3am inspiration: The realisation that just before a bank (or any company) went ex-dividend the price per share soared: because EVERYbody wanted to 'buy the dividend'! In that buying-frenzy I've seen share-prices increase by 15%. Instincts at play: Who'd want a 6.5% dividend if, by selling the shares one could pick up a quick 15%? Ever heard of a single 'expert' who'd come up with that realisation? And so it goes: Even the local wombat (not noted for brains) and cockroaches (who've been on earth since 100 million years before the dinosaurs) understand the principles involved. But of course they don't listen to the latest in 'expert views' or the thing 'everybody's into'.
Every day you wake up into a world with a billion opportunities. Wasting that IS a sin.
But if you leave Brandonlandia then $600,000 will allow you to have a great retirement
True!