40 now, and everything is paid for. Fortunately, I had a college economics teacher who taught me a lesson when I was 18 years old. That lesson was: you can't buy something else for every purchase you make. Having multiple sources of income is prudent, as is living within your means. I have a 13-year-old vehicle because it is all I need, I like it, and I can do whatever I want with it. My net worth is $900k, and I can pay my bills without stress, but I don't live like I have that. I have no complaints.
I fully agree; I'm 56 years old and recently retired with approximately 1.2 million in outside retirement funds, no debt, and very few dollars in retirement funds in comparison to my portfolio balance over the last three years. To be honest, the financial advisor's role can only be ignored, not dismissed. Therefore do your research to get a reputable one and that should be any individuals main route into the market.
I've been in touch with a financial advisor ever since I started my business. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.
Definitely! All of this happened in less than a year after *Izella Annette Anderson* told me what to do. I started with less than $100,000, and now I'm about 17,000 short of having a quarter million dollars.
oh! i never take this advises online seriously, but i checked Izella up out of curiosity and i must say i am impressed by her Credentials. i emailed her already, waiting on her response
Somehow I am no where near those numbers yet feel pretty damn comfortable. 13 years ago I was let go with about 350K in the bank. I decided to take some time off. Just turned 60 still taking that time off with about 800K now. You couldn't pay me to go on a cruise, don't like to eat out, can fix my own truck and know how to make a cup of coffee. I can hike everyday if I want and boots are relatively cheap.
Super. I am 62. Have a small farm. Everything paid off. Still working but I am just going till late winter. I do a lot of my own fixing but lately I have been preparing for retirement and have jobbed stuff to the local Amish like a new roof. The Suz orman is fos
Azul, I am in my 60's and retired. I started saving in my 30's but I could not afford to put away much because I did not make enough money. When I reached my late 40's I started to make a lot of more. But I resisted "lifestyle creep" and I was able to put away enough to make up for the years that I did not put away as much. Now that I am retired I am grateful to have had the foresight to resist the urge to spend more when I was younger.
Considering the shaky economy, I'm keen to know best, how people split their pay, how much of it goes into savings, spendings or investments. I’d be retiring/working much less in 5 years, and sometimes earn up to $160K per year, but nothing to show for it yet.
No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q4 2024.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
My CFA ’Melissa Terri Swayne’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
We can allow you to buy all the things you need to remain healthy such as organic food, personal trainers, health club membership, vacations, good healthcare professionals, etc.
I don’t fundamentally disagree with your point but being healthy with a roof over your head and the means to buy food is much better for most people than being healthy and homeless.
Almost 55 and retiring this next spring. Started around 27 and saved from every check until it hurt! The freedom we have from those choices we made decades ago is without measure. Get started now and your future self will thank you!
Learning to live 20% or, better, more below your means and saving early gets you to comfortable sooner and you end up with a much lower definition of what you are comfortable with living off. I convinced both of my kids to start saving 25% at age 25. Both are saving close to 30% of their gross income. My oldest, at 38, already has a net worth of over $2M, $400K being real estate. My youngest, at 34, already has a net worth of $0.75M, none of which yet is real estate
In high school my Economics teacher introduced me to compound interest. I couldn’t wait to start saving my dish washing money. It continued as I became a Nurse. Today I’m 54 and worth $2.6 million. Thank you Mr. Malloy
My retirement account has gone down by 13.7% in the past year due to rebalancing I did out of fear uncertainty and doubt. What are best alternatives to take in other to secure a financially free retirement and achieve ultimate peace? I don’t want to fail after 42 years of working hard.
If you want to rebuild your retirement by yourself, without the help of a partner, I will tell you it is near impossible. Even NewRetirement and co can’t do the job of an FA with expertise, a large following/client base and experience. Vet and hire one and begin to develop a rapport.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
I agree with the wealthy amount of $4M. Wealthy, to me, means that if you want to take a nice vacation, buy a new toy or a newer car…you can just do it with cash.
The continuously changing economic conditions in our society have made it necessary for people to find additional sources of income, thus I am looking at the stock market to fuel my retirement goal of $3m, my only concern is the recent market crash.
Agreed, despite my rookie knowledge of investing, I have a financial advisor who did the trick in a bit more than 6 months after a lump sum capital of $500k, and I've so far made a fortune. I'm now buying real estates, gold and silver as advised by my FA.
Thanks for the info. I searched for her full name and found her website right away. I reviewed her credentials and did my research before reaching out to her.
I learned from my Mom, who retired at 55. Save the maximum. You will learn to live on what's left. I was laid off at 57 but had no problem just starting my retirement at that time. During my twenty two year work life I saved 25%, in a Roth and an IRA
I am super grateful to my father in law who had the same advice. Just starting out working I was saving ~10%, but now I am saving around 30% and have adjusted to the lifestyle, but still comfortable. I am still young (26), but can already see where the trajectory leads, glad I was set on this path early.
Gentle wisdom given freely almost daily. Thank you for continuing your hard work. I especially enjoyed the break down of mean ages for each generation touching base with each generation paired with the life / health span.
I like what this guy has to say. For groups like me that didn't get a proper education about the ins and outs of finance in our younger years, its a helpful guide to the mysterious world of compounding dollars. I have done pretty good based on when i started,,,,, which was age 51, Yikes. But I had laid some groundwork at age 46 when i had 14k in the bank, single dad. Because of guys like this during early you tube days, I learned how to ask the right questions and avoid one way win transactions. So you that come and criticize his advice/information about complex facts put into layman's language makes you appear elitist a little bit. I retired at 58 and according to his stats I got nothing to worry about, and my kids will be rewarded upon my demise, because people like this taught me to teach mine, so thanks Azul..... From up here in Montana, keep em comming I think you are doing a fine job.
Rule 8 indicates you don't need a high IQ to be a good investor, just 2 qualities, self discipline and a lot of patience. Investing is mostly about behavioral psychology. How can I generate more income to retire with at least $3m for long term care?
We share common goal, making sure you are ready for your later years is very important. That's why passive investing works, low costs, better diversification and it enables people to overcome their behavioural bias especially if they engage professional help.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $30k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
The problem with all these equations is that you need to see living expenses where they live. Remember median income in Mississippi is 44,000 but 85,000 in California. The expenses of those areas reflect this. The other issue is retirement income. While we have about $2 million in assets (1/2 in funds and half in equity). BUT, we have a retirement income between my pension and both our SS is about $166,000 which both change each year with inflation. Therefore comparing people with completely different retirement income in completely different locations changes what you need saved up. I was a banking and finance enforcement lawyer for 35 years and these studies are too generic. Interestingly, we are looking for a beach area house and we looked at one place where the home we looked at was about $650,000. However, the same builder sells the same house in Boyton Beach for almost double that amount. That the problem with these stats. They don’t take these variations into account. $1 million in Jackson Mississippi is not the same as 1 million in Los Angeles.
No Shit, that is why people move when they get to Retirement. Up here in the North East, if you want to be Rich and live in a warm climate, you sell your house for a amazing profit, take your pension, IRA's and SS and go to a state down South with No State Income Tax and dirt Cheap Real Estate Taxes. Commie MA to Florida is going to save me and my Wife well over 25K a year. And no more freezing temps, Ice, Snow, etc....
Exactly!!! I'm in first couple of minutes of vivid and it's useless info. Azul has passed on good info, but this one is click bait. Net worth all includes house, but that's not cash readily available. What really counts is disposable income or even better excess funds after daily living expenses. And you nailed it. What's your social Security? do you have a defined benefit plan? Especially one with inflation adjustment..So all nonsense in this video. turning off at 5 minutes.
@@airforcepilot1167but he can’t have a video unless he uses averages. I agree about home. I know it’s part of my net worth, but I have to have somewhere to live and even though it’s paid off, it still cost me $600 a month (taxes and insurance).
Future income flow is an asset and should be counted as net worth. $166k annually is like having 3-4 million. And everybody knows where they live and what their cost of living is like. So they know if they should be somewhat higher or lower.
This would make me happier if it was based on location of retirement and is this liquid or networth that includes homes value or not. Mediam net worth is very different if I live in LA CA vs Baton Rouge LA.
The whole net worth discussion is just so problematic... Is most of that worth your home? If so, do you plan on using that equity (selling your home, reverse mortgage, etc)? If not, then the value of your home in retirement is just the money you aren't paying for rent/mortgage (assuming your house is paid off). While it's great to have a paid off home in retirement, you still have property taxes, insurance, maintenance, etc.. So the amount of your net worth that affects your retirement might be less that one might think. How old are you in retirement and what does that mean for your medical? Depending on your financial situation and what state you are in, that can easily be $1k/month (or more) until you get to medicare... So how much of your net worth might be going to that? Net worth is a great general piece of information and nice to use to help you track your progress... But I think it can be way over-rated as a sign of whether or not you are on-track for retirement...
I just don’t include my home in my net worth. I have a lot of equity in my home but if I sell all that equity would go towards down payment on a new place to stay…
@@greghelton4668 I agree, it should be included, IF you intend to use it when you retire. But not everyone will, or will only use part of it. Which is why as assumption that all of it will be useful might not be accurate. People just need to be aware of that...
The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.
Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.
Safe to say not everybody has the skill to pursue investing. But it's always easy to follow the advice of someone who knows how to i.e a financial advisor. You could anywhere between 10--40k with the right ones. Online businesses are a good bet too if you are savvy.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
Scam Alert ! Scam Alert !! Scam Alert !!! Don't look for a financial advisor scam artist in the comments under a You Tube video! Scam Alert ! Scam Alert !! Scam Alert !!!
Great comments. Great guidance. Believe in yourselves and your abilities. You don't need someone to tell you how much money you need to retire. You are the only one that can make that decision. Own it.
Azul, one reason that the younger generations started saving earlier than those of us who are older did is the laws around 401k plans have changed. When I was young in the workforce I had to opt in to saving in a 401k plan. Today if someone doesn’t want to save in a 401k plan and their employer offers one they have to opt out of it. I think there’s also an automatic 1% increase in that automatic option in too, but I don’t know if I’m correct about that. Of course the older generations had pensions from their first day of work, which most people don’t have today.
I don't have anywhere near 1 million in retirement however i have a very beautiful paid for house , vety nice vehicles that are all paid for and very low expenses. I have no aspirations of expensive travel, elaborate meals out or expensive clothes. I am healthy and grateful that i have all i need. I dont think people need a million. It depends on where you live and your desires. Four million dollars!!!! Thats unobtainable for many people.
Having the paid off house is where a lot of people struggle. One can probably 1/2 the retirement number if they have a paid off home that they are comfortable living in.
Gen X, retired debt free at 45 with a net worth of about $800K. We are pretty comfortable, albeit frugal since we had to build ourselves from nothing, and now it’s just our nature. Our main expenses are a fairly expensive school for the kids, a few holidays a year (because we didn’t have money to travel early in our marriage), books (I buy them compulsively), and regularly hosting our friends and family (which is something we have always loved, and won’t change because of our close-knit circle).
Gen X here, started investing at 23, reached 1 million at age 46, 2 at 52, 3 at 55, and I'm hoping to retire at 60. Reduced SS anticipated to be taken at age 67 or 70, and a small pension from work also at 67.
@@educatedwanderer9293 looks like you’re all set. Might even want to consider retiring right at 59.5. The only issue for us is medical insurance. Medicare starts at 65.
I had around 30k net Worth in 2012 at age 28 when i bought my first home in LA. Then got a second home in 2017 and rent my first one. Now today at 40 years old with a family of 7 i have around 1.1M net worth. And making under 100k in the past 10 years. Hope i am on track to having over 5M by the time i retire. Finances are exponential. Live above your means, borrow, and your debt can spiral exponentially. Live below your means, invest, and your net worth can grow exponentially.
Somebody once said, You can never save enough for retirement but that doesn't mean you shouldn't try anyway. Take your health seriously now to reduce the financial burden of failing/ill health and ACTIVELY plan your retirement so you can still make money even then. Goodluck to us all.
That's very true. Besides IRA and 401k, are there other ways we can prepare ahead of time for our retirement? Mine draws nearer by the day and I'm gradually going into panic mode
Don't worry too much. The easiest approach is to save more money and invest those savings in profitable opportunities. It's crucial to either understand your investments thoroughly or consult with a financial expert to avoid losing your money. Over the past three years, I’ve earned a few thousand dollars annually and almost doubled my retirement savings through stocks and ETFs. If I continue this strategy, I should be well-prepared for retirement, even with less than six years to go.
By professional, do you mean an FA? Did you use one? What are the steps for getting one? Like a really good one? I could definitely use that now. Thanks
Yes, I use one. Don't know if I am permitted to go into details here, but you should start by looking out for those from credible firms and good track records. You should also make sure the person is licensed. Mine is Becky lou Gordon and you could also look him up though I'm not so sure she's taking on new people atm.
My wife and I have a net worth of $2.5 mm at this time. Never made more than $ 100K except for 2 years, and saved 15% for 30 years because I didn't believe SS would be there when I retired at 70. Life is good = but I am still concerned with what I want for my kids to inherit
@@tdgdbs1You're 100% right. Sadly, many don't think like you and I. There will soon be the biggest wealth transfer in history as Boomers die. Tens of trillions will be inherited from those with wealthy parents. It will be so extreme that the US will inevitably turn into a modern day monarchy - the top few percent will control 80% of the wealth - there will be a small merchant class that does well, and the rest will be modern day serfs, with little to no chance to economically advance.
1m is plenty to retire on 1m will generate 4-5% annually in interest, that’s 40-50k you can take out and not touch the principal You’ll also have social security which will be ~24k annually If your house is paid off and you cannot live on 64-74k in income , you have a spending issue
Buying a basket of dividend growth stocks to beat inflation and throw in some higher yielding funds (ie closed end funds or ETFs) and you will generate enough cash flow from dividends on 1 million which will never need to be drawn down over retirement..
I always enjoy your videos Azul. I am 64 with $1.6m in retirement....including $1m in 401k, $500k in CD and $100k....I want to retire in the next few months but I always worry I am underprepared.. But then I see your videos and feel like I might be ok.
The numbers will also vary by that cost of living where you live. Comfortable in the SF Bay Area or Manhattan is $5M or higher. Wealthy is $20M or higher. In places like Reno, NV or Weed, CA and others well outside of major metro areas, most of the US land mass, your numbers are good.
I see how our choices have given us great security. My wife and I have six income streams. Our MRDs just roll over to an investment account and we add to that from our monthly income. Also having two medical plans makes our medical cost almost zero. House paid for, no debt and living modestly for many years has also helped.
You need 2-3M for a comfortable retirement. 2M would only generate about 80k a year, add that to a pension and/or SS you could have 120-150k a year, that’s comfortable.
@@paulsmith2279 Leaving a legacy to your family and children is a desirable thing. It means you're not a narcissist and you made an impact int he world to the people that you loved.
@@paulsmith2279 there's a lot of benefit to saving early. it can allow you to take more risks in your career trajectory, not accept low pay even if it means youre unemployed for a year or two, and take more time for yourself rather than working that overtime because you need your bonus. ive found a lot of peace in life solely due to having a large nest egg.
S&P yield 13% in long term investment (over 10 years). 2M = 200K a year return. I don’t know how you only get 80K return for 2M! It must be a very poor investment. In long term (over 10 years), I could get ~20% annual return or more in Tech. I am also working in Tech.
@bluedouchemark4685 baller? If you want to scrounge by with less, go ahead... I put my time in and saved accordingly... 3 million saved is not unattainable and was well worth the time I took saving it. 100k a year to live on is hardly "balling".
@@CBass-mn5dy you supporting a couple of boy toys? As a single man, I don't need anything near 100k. Also, why would i want to die with 3 million in the bank?
Yes, and you'd better pay attention to the politics of Social Security & Medicare when you vote. The first study sited didn't specify whether their figures were for each individual or each household.
For retirement planning, I think net worth calculations need to include the discounted value of *guaranteed* future cash flows (pensions, ss, etc, default risk aside). It would standardize the advice and planning better.
Amount need to retire comfortably. -> Are the numbers for a single or couple? 🤔 From the study, I found the following: The Harris Poll conducted a total of 4,588 online interviews among the general U.S. adult (18+) population between January 3rd and January 17th. Included in this overall total is a sample of 831 HighNet-Worth individuals (those with total household investable assets, excluding pensions, retirement plans and property, greater than $1,000,000). Seems the answer to my question is 'household' - which I interpret as single+couple? 😖
Your video title implies that you are going to talk about net worth in connection with retirement, but you seem to be talking mainly about “amount saved” in connection with retirement. I’m disappointed that you didn’t clearly and consistently distinguish between these two measures.
When I heard that UPS was paying drivers $176,000 plus benefits, I knew we were in trouble. Dockworkers, the highest paid blue collar workers are striking for a 50% pay increase. In California, fast food workers start at $20 an hour. Wage inflation is definitely going to affect most people who are retired. Wage inflation was set in motion by the pandemic. People resisted jobs that involve working with the public. Laid off employees were getting at least $900 a week to stay home. Retirees trying to hire skilled workers for home repairs find that everyone wants over $100 an hour and you can't find anyone to show up.
According to the Federal Reserve, 64% of those age 65+ have a pension. Of course boomer+ say they need less retirement savings because most really do. GenX like me started saving later because many of us started work when pensions were still fairly common but lost it part way through our careers. Younger have always known it’s all on them.
How did you lose your pension? I ask because I’m also a Gen X(46 years old), and I still have a pension waiting on me when I retire, even though the company I work for doesn’t offer it anymore for new hires. As a matter of fact, they stopped offering it over 10 years ago, but those of us who started working there before they stopped offering, still have it.
@@blongshanks77 Company can terminate it at any time and give you the current cash value as a lump sum or buy you an annuity. Search pension termination.
@@blongshanks77 I'm a bit younger (old millennial), but pension was 'taken' from me via a policy that said "if you have less than xxxx vested in the pension, the company will automatically buy you out". So many of us with under 10 years with the company had a lump sum (and not a big one) dumped into our 401k. Those above the threshold were given the option to keep the pension or take a buy-out. To be frank, I think I prefer having the 401k simply because I've read too many horror stories of mismanaged and underfunded corporate pension plans. But the fact remains that 401k is a 'failed' product for far too many Americans. They tend to be "leaky" and there is no guarantee of result. This leads to vastly different outcomes for employees based solely on the savvy of the individual to manage those 401k funds over a 30-40 year working career. The system is too complex with too many pitfalls for your average American. To put it bluntly, the average person is not disciplined enough or intelligent enough to make a 401k account work for them. THAT was the true advantage of a pension for most people.
Azul is definitely in the bear camp. Jamie Diamond's opinion on the chances of recession changes all the time. If you maintain 12 months liquid, you can sleep at night and weather most corrections and the majority of a bear market. A "recession" can be as short as two months and, in that case, over before we know we were in one. But hey, what did I know, I haven't been a financial planner for over 20 years. Unless you count the 40+ years, I have been planning my own.
I think how much in income you earn every (not wages) is very important and net with number that is liquid assets, stocks and bonds etc.are very important.
My generation landed into the zone where the 401k wasn't standard and pensions were stopping and weren't an option at allot of places... was about a 10-15 year "dead zone" allot of my generation had nothing in the early years! Also the lack of education on retirement savings didn't help. I've been playing catchup but my kids accounts will be set even if they never invest another dime themselves (time is your best friend investing!!), now i can focus harder on the wife and I retirement. Its not easy out there, last few years have mad it so much harder, BUT WE GOT THIS!
My aunt is worth millions and travels in a new travel RV every year, she’s never worked a day in her life but her husband was an engineer at Exxon his whole life and died suddenly 6 years ago. She’s living the dream at 75
What is a good way to calculate an asset value for a pension? I assume you plug in the variables in a TVM or annuity with payment calculator and solve for the initial principle? I assume a pension in some way adds to your net worth in a way that is more than the total payments over a period of time? After all, without a pension, people need a sizeable nut to generate those payments a pensioner gets.
I would assume you could predict the annual pension income when you retire and then use something like the 4% rule to calculate an equivalent lump sum needed to be invested to generate that annual amount. Then add that lump sum to your current net worth. At least that's where I'd start.
I'm 40, with 1 mil already saved for retirement, but my wealth advisor is making me feel like I'm going to need 5 million to be fully protected from outliving it. That number makes me anxious that I won't get there, but I know he's shooting for the stars.
I'm curious, are the figures different for people with a good pension? Should you include the present value of your pension when you calculate how much you need for retirement?
There are different wealth (net worth) distributions that may greatly affect your situation in a crisis and generally speaking, the more of your net worth tied up in your residence the less flexible, and assured of survival, you are in a crisis or economic collapse. You can always live in a van if most of your assets are flexible whereas, your house may collapse in value, and be unsellable at any price, in a depression.
I'm confused. 1. Are these amounts for a SINGLE person or for a HOUSEHOLD or COUPLE? 2. I assume this is "cash" dollars in very liquid assets (stocks bonds cash). OK if it includes the equity in a house, I can go with that although you probably have to adjust for liquidity. Same on any other HARD ASSETS that you would have to liquidate. Finally, how does Social security and other PENSION payments figure into the TOTAL number you are stating? If one is receiving $5000 a month in pension payments, that's $60,000 a year, right? What is the capitalized VALUE of those payments that are "guaranteed" by the government? I would suggest that if you take that $60k a year and divide by a cap rate, you could then add that amount to your other "assets". Right? So what is a good cap rate? Let's say 4%. So $60,000/4% is $1,500,000. Add that to your other savings and investments and the equity in your home, and this all seems pretty doable. C'mon Azul, what's your perspective? If I'm single have $5k/month in annuity payments and say another $750k in assets am I good to go? $2,250m can buy a lot of tequila.
….. if your residence is montage free consider your residence a zero sum ….. whatever value is there will be used for housing, or long term care needs, towards end of life …… the net worth is investments and savings…….. makes the discussion a lot easier
Heard a financial adviser talking to a prospective client: 53 yo housewife, husband was diagnosed with dementia, was self employed all his life, SS is at the minimum. Need $50K /y to live. House and car paid off, no debt. $2.3 m in cash, stocks, bonds and two homes around $1m. FA said to the wife that assuming she’ll live till 95, she doesn’t have enough money to live off if money simply stays in savings account.
I, 69. have a fraction of this money, and I live very comfortably. Eat healthy stuff , exercise, and have good social contacts. And especially don't have a financial planer who takes big fees.
Real estate. Food. The government allowing people to live without paying for housing or food costs for 2-3 years. It's catching up now. The millions for retirement are needed due to the uncertain cost of living in the future.
I need a way to draw up a plan to set up for retirement while still earning passive income to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket. i want to invest around $250K savings.
Don't put all your eggs in one basket; instead, diversify into different asset classes to mitigate risk. If you lack extensive knowledge, consult a financial advisor.
Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 300K cash earning 5.25 interest, 685k in 401k, 250k cash account, 120k in car assets ( paid off cars) Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Brooke Miller for helping me achieve this
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I get that these surveys are done for clickbait, but depending on where you are relative to these numbers, but best way to get depressed is to pay attention to these surveys. Rather than looking at your personal situation. Lifestyle and living expenses are everything. You cannot honestly evaluate anything else prior to knowing that number. Watch for entertainment, but ignore until you have looked at your personal situation.
That matches up to me moving my own minimum retirement goals from 1 mil to 1.5 mil. I'm still targeting 3 to 5 million if I work until I'm 65 instead of 60.
watching from the UK, these numbers seem very large even adjusting for currency. Why is this? Do Americans have to drive further, have higher motoring costs and higher home tax costs and healthcare costs than in the UK?
Boomers already in or close to retirement. They can factor in social security benefits. For those of us who are far away, we don't know how much we'll get in benefits, taxes could ve very different, the ling bull run that we got might not repeat, pensions won't exist, and inflation sucks. We'll need more money to retire.
Retirement is all about cash flow. We are retired and have a positive monthly cash flow of $2-3K. Net worth for 2024 YTD is up $380K. We are middle class.
For many people, a big part of cash flow will come from retirement savings. When planning for retirement, you obviously have to understand your assumed social security and pension payments, and then use retirement savings to close any gaps between living expenses and those social security and pension payments. Most Americans have not done a very good job at savings for retirement, which means they will either have to work longer or not have such an easy retirement.
What do you mean by cash flow???? Cash flow has little value at all in determining retirement. To retire you must be able to pay your expenses. Savings is assumed to be an investment that will generate income to pay those expenses.
I think about the two main points.. Average net worth and savings... Which is crazy because california is different than arkansas. And people saying they should have started early, Or financial guy is saying it... paying for college, kids, bills etc. in the beginng Besides being stressed of the unknown and security in the current job... Makes you decide what you do. Hindsight great Especially when you're fairly Financially secure.
I retired 7 years ago. For most of my adult life, I contributed 15% to 19% of my income into a retirement account. That's over and above what my government job gave me as a pension. And of course, it's over and above Social Security contributions. With these three sources of retirement income (S.S., pension, and monthly IRA withdrawals), I have a very comfortable retirement. BTW, my pension includes full medical/dental coverage for my wife and me, which is a big help financially. For young people working in jobs without pensions, I'd second your recommendation that they save at least 20% of their income for retirement purposes.
More explaining needs to be done for the less financial savvy viewers. This does NOT mean you need to have this much sitting in an account somewhere. Keep in mind you will also be collecting some sort of pension/social security/or investment income hopefully. This needs to be factored in. If a husband and wife are taking in 4k per month in social security, thats 48k per year, and at 10 years, that almost a half million on its own. Hopefully tou have other streams as well. Then factor in your lifestyle. A modest person can live better on social security than someone who lives lavishly on triple that amount.
Pretty simple if you divide by 30 years of retirement that’s 50 K a year, with social security that’s maybe 90 K a year. For a couple that’s comfortable but definitely not wealthy
I’m 42 now and i’m projected to have around 5M by retirement, not counting social security or my pension or my wife’s retirement/401k. I’ve always been terrified of losing SS and pension and figured I’d better do it myself for the entire family, just in case. I plan to retire at maybe 62, I dunno. I should probably talk to someone about all this. :) All I want is a nice house in the woods. I’ll do some basic travel in the US to see a lot of the parks and maybe do something OUS if the wife wants. It would be nice to take care of the kids and my niece. Save aggressively! You can’t take it with you but plan for the worst and hope for the best.
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Kimberly Ann Doran for helping me achieve this.
Interesting video. Unfortunately 50-30-20 doesn't work for someone who is single - depending on mortgage payment amount. My mortgage payment alone is almost 50% of my income thanks to rising property taxes and insurance. So none of my other needs would be paid if I stuck to that rule...and I do try and spend as little on groceries as possible (under $200/mo), but by that rule, it would be zero. Ha - and my pets must have their food and medical care too ..
Expect these numbers to increase another 50% in just 2 more years! Govt has no way out of Money printing and inflation strategy… they can’t correct things now. So, you need to save WAY more just to be comfortable than any of the financial advisors tell you on any given day.
Part of the variance between the young and old demographic is: 1) younger just doesn’t know and tends to therefore guess high and 2) they have “lifestyle needs/wants” that many boomers don’t share. This is not new. Boomers, when they were 30-ish, also had lifestyle needs/wants that the ‘greatest generation” didn’t share.
These videos always confuse me because I never know if the numbers are per person, or if. they are for a married couple. Sometimes terms are defined, but rarely.
For some reason every time Azul says "it passes my sniff test", I picture Azul picking up a folder containing a client's financial details and sniffing it, then declaring their likelihood of success. 😂🤣
This question is very diverse. How do you want to retire? What is your life style and expenses before retirement? Today, a net worth of under $2M might limit your retirement life style. But again, everyone has different needs, different lifestyle. Personally i would require a $5M net worth. And it takes discipline, dedication, luck and some smarts to get there. Unless you inherit the lot.
the common sense of living below your means is lost after gen x. younger gens consider iPhone pros, eating out/take out/food delivery, and loan forgiveness as necessities.
I've listened to enough hours of financial advice shows like Ramsey to confidently say Americans of ALL generations have forgotten how to live within their means and discern between needs and wants. There are winners and losers in every age group.
None of these people will have even a fraction of what they said they will need, it's absurd, people have no idea how long and how much work and discipline you need to save even $1M
I am really confused by the statement that the mean age in which boomers started saving was 37! Speaking as a young (61) Baby Boomer myself, almost everyone, my age or older, started saving much at much younger ages. Most of my relatives and friends have been working since we were kids. I started a paper route at age 12, then cut grass, worked in a hardware store, worked in my father‘s business, all before I even started college (at age 17). I worked part-time throughout my college years, and then begin working full-time at age 23. Because of living a modest lifestyle, and saving consistently, I was able to retire at age 57. I don’t think I am unusual, as many of us Baby Boomers started working as kids. Granted we didn’t earn that much, but the idea of saving was instilled within us from a very young age; probably the result of having parents who had lived through the great depression.
So in 4 years the number has increased by 500k. Does that mean by 2034 (10 years) we should anticipate that number to be 2.7 million? (Meaning to retire comfortably)
The younger you start to prepare for retirement the better off you will be. But the best time to start is right now. If your income is too low, you can’t save enough and will retire poor. If that is the case, first focus on increasing your income. If you make good money but spend all or most of it on maintaining your lifestyle, you will retire poor. If this is the case, focus on simplifying your life, and save, save, save. Live below your means and be kind to your future self.
With all these “magic number” type reports is there a measure/factor/discount that you can use to apply it to a married couple’s joint savings? For example, although we’re hustling hard my wife and our collective retirement savings is still just about $1.1m plus change at 48/49. I love a target. Should that 1.5m be doubled for a couple or can a (maybe slightly) lower amount be considered comfortable for a couple? I appreciate there are other variables but in simple terms is there a factor that can be applied to the magic number for a couple?
These numbers appear incomplete. Do the net worth numbers include an NPV at a reasonable rate on pensions? Doesn’t look like it. Do the “when you started saving for retirement” ages include when you started to build positive equity in a home? Don’t know, but I doubt it. Without taking account of these elements, the picture is incorrect.
GenX and I think I need $4-5M to retire. I plan to retire at 55, my spouse at 60 (we are 5 years apart). I live in a HCOL area and I don't want to worry about money at all.
40 now, and everything is paid for. Fortunately, I had a college economics teacher who taught me a lesson when I was 18 years old. That lesson was: you can't buy something else for every purchase you make. Having multiple sources of income is prudent, as is living within your means. I have a 13-year-old vehicle because it is all I need, I like it, and I can do whatever I want with it. My net worth is $900k, and I can pay my bills without stress, but I don't live like I have that. I have no complaints.
I fully agree; I'm 56 years old and recently retired with approximately 1.2 million in outside retirement funds, no debt, and very few dollars in retirement funds in comparison to my portfolio balance over the last three years. To be honest, the financial advisor's role can only be ignored, not dismissed. Therefore do your research to get a reputable one and that should be any individuals main route into the market.
I've been in touch with a financial advisor ever since I started my business. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.
@@hunter-bourke21Impressive can you share more info?
Definitely! All of this happened in less than a year after *Izella Annette Anderson* told me what to do. I started with less than $100,000, and now I'm about 17,000 short of having a quarter million dollars.
oh! i never take this advises online seriously, but i checked Izella up out of curiosity and i must say i am impressed by her Credentials. i emailed her already, waiting on her response
Somehow I am no where near those numbers yet feel pretty damn comfortable. 13 years ago I was let go with about 350K in the bank. I decided to take some time off. Just turned 60 still taking that time off with about 800K now. You couldn't pay me to go on a cruise, don't like to eat out, can fix my own truck and know how to make a cup of coffee. I can hike everyday if I want and boots are relatively cheap.
Super. I am 62. Have a small farm. Everything paid off. Still working but I am just going till late winter. I do a lot of my own fixing but lately I have been preparing for retirement and have jobbed stuff to the local Amish like a new roof. The Suz orman is fos
A perfect example of Tom Stanley's "the millionaire next door."
@@schadlarry this is excellent!! What will you do with all the money? What do you do for health insurance?
Azul, I am in my 60's and retired. I started saving in my 30's but I could not afford to put away much because I did not make enough money. When I reached my late 40's I started to make a lot of more. But I resisted "lifestyle creep" and I was able to put away enough to make up for the years that I did not put away as much. Now that I am retired I am grateful to have had the foresight to resist the urge to spend more when I was younger.
Considering the shaky economy, I'm keen to know best, how people split their pay, how much of it goes into savings, spendings or investments. I’d be retiring/working much less in 5 years, and sometimes earn up to $160K per year, but nothing to show for it yet.
thats personal, you should connect with an advisor for proper financial/investment planning, never can tell what the future holds
No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q4 2024.
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
My CFA ’Melissa Terri Swayne’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Thank you for the lead. I searched her up on google, and I have sent her an email. I hope she gets back to me soon.
HEALTH is more important than WEALTH 😊
Wealth affects your health
We can allow you to buy all the things you need to remain healthy such as organic food, personal trainers, health club membership, vacations, good healthcare professionals, etc.
You won’t be healthy working a slave job as inflation eats your money away
I don’t fundamentally disagree with your point but being healthy with a roof over your head and the means to buy food is much better for most people than being healthy and homeless.
100% true. Ask my 45 yo brother-in-law who was recently diagnosed with terminal cancer. All the money in the world is useless without good health.
Almost 55 and retiring this next spring. Started around 27 and saved from every check until it hurt! The freedom we have from those choices we made decades ago is without measure. Get started now and your future self will thank you!
Learning to live 20% or, better, more below your means and saving early gets you to comfortable sooner and you end up with a much lower definition of what you are comfortable with living off. I convinced both of my kids to start saving 25% at age 25. Both are saving close to 30% of their gross income. My oldest, at 38, already has a net worth of over $2M, $400K being real estate. My youngest, at 34, already has a net worth of $0.75M, none of which yet is real estate
In high school my Economics teacher introduced me to compound interest. I couldn’t wait to start saving my dish washing money. It continued as I became a Nurse. Today I’m 54 and worth $2.6 million. Thank you Mr. Malloy
Nice. I sold my business for 5 million and retired overseas and loving it,and I'm 49 yrs young !
@ where did you move to?
@jameschaves5723 Can't say but I love it leaving like a king
My retirement account has gone down by 13.7% in the past year due to rebalancing I did out of fear uncertainty and doubt. What are best alternatives to take in other to secure a financially free retirement and achieve ultimate peace? I don’t want to fail after 42 years of working hard.
If you want to rebuild your retirement by yourself, without the help of a partner, I will tell you it is near impossible. Even NewRetirement and co can’t do the job of an FA with expertise, a large following/client base and experience. Vet and hire one and begin to develop a rapport.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
How can one get to interview advisors? And what questions should you ask?
Her name is Annette Christine Conte can't divulge much. Most likely, the internet should have her basic info, you can research if you like
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
I agree with the wealthy amount of $4M.
Wealthy, to me, means that if you want to take a nice vacation, buy a new toy or a newer car…you can just do it with cash.
The continuously changing economic conditions in our society have made it necessary for people to find additional sources of income, thus I am looking at the stock market to fuel my retirement goal of $3m, my only concern is the recent market crash.
for majority, the solution to their problem can be found in specialized knowledge, so you can as well seek guidance from a well experienced advisor
Agreed, despite my rookie knowledge of investing, I have a financial advisor who did the trick in a bit more than 6 months after a lump sum capital of $500k, and I've so far made a fortune. I'm now buying real estates, gold and silver as advised by my FA.
Can you share details of your advisor? I want to invest my increased cash flow in stocks and alternative assets to achieve my financial goals.
Thanks for the info. I searched for her full name and found her website right away. I reviewed her credentials and did my research before reaching out to her.
The market didn’t crash Jfc. It will go up and down, time is your best friend
I learned from my Mom, who retired at 55. Save the maximum. You will learn to live on what's left. I was laid off at 57 but had no problem just starting my retirement at that time. During my twenty two year work life I saved 25%, in a Roth and an IRA
Well done!
I am super grateful to my father in law who had the same advice. Just starting out working I was saving ~10%, but now I am saving around 30% and have adjusted to the lifestyle, but still comfortable. I am still young (26), but can already see where the trajectory leads, glad I was set on this path early.
Gentle wisdom given freely almost daily. Thank you for continuing your hard work. I especially enjoyed the break down of mean ages for each generation touching base with each generation paired with the life / health span.
healthspan instead of lifespan. i like that way of thinking.
I like what this guy has to say. For groups like me that didn't get a proper education about the ins and outs of finance in our younger years, its a helpful guide to the mysterious world of compounding dollars. I have done pretty good based on when i started,,,,, which was age 51, Yikes. But I had laid some groundwork at age 46 when i had 14k in the bank, single dad. Because of guys like this during early you tube days, I learned how to ask the right questions and avoid one way win transactions. So you that come and criticize his advice/information about complex facts put into layman's language makes you appear elitist a little bit. I retired at 58 and according to his stats I got nothing to worry about, and my kids will be rewarded upon my demise, because people like this taught me to teach mine, so thanks Azul..... From up here in Montana, keep em comming I think you are doing a fine job.
When asked what the most powerful force in the universe is, Albert Einstein answered compound interest. 😁
Rule 8 indicates you don't need a high IQ to be a good investor, just 2 qualities, self discipline and a lot of patience. Investing is mostly about behavioral psychology. How can I generate more income to retire with at least $3m for long term care?
We share common goal, making sure you are ready for your later years is very important. That's why passive investing works, low costs, better diversification and it enables people to overcome their behavioural bias especially if they engage professional help.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $30k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
How can I reach this advisers of yours? because I'm seeking for a more effective investment approach on my savings?
I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you
Quoting averages is silly. You need to have average savings broken down by ages groups
The problem with all these equations is that you need to see living expenses where they live. Remember median income in Mississippi is 44,000 but 85,000 in California. The expenses of those areas reflect this.
The other issue is retirement income. While we have about $2 million in assets (1/2 in funds and half in equity). BUT, we have a retirement income between my pension and both our SS is about $166,000 which both change each year with inflation. Therefore comparing people with completely different retirement income in completely different locations changes what you need saved up.
I was a banking and finance enforcement lawyer for 35 years and these studies are too generic.
Interestingly, we are looking for a beach area house and we looked at one place where the home we looked at was about $650,000. However, the same builder sells the same house in Boyton Beach for almost double that amount. That the problem with these stats. They don’t take these variations into account. $1 million in Jackson Mississippi is not the same as 1 million in Los Angeles.
No Shit, that is why people move when they get to Retirement. Up here in the North East, if you want to be Rich and live in a warm climate, you sell your house for a amazing profit, take your pension, IRA's and SS and go to a state down South with No State Income Tax and dirt Cheap Real Estate Taxes. Commie MA to Florida is going to save me and my Wife well over 25K a year. And no more freezing temps, Ice, Snow, etc....
Exactly!!! I'm in first couple of minutes of vivid and it's useless info. Azul has passed on good info, but this one is click bait. Net worth all includes house, but that's not cash readily available. What really counts is disposable income or even better excess funds after daily living expenses. And you nailed it. What's your social Security? do you have a defined benefit plan? Especially one with inflation adjustment..So all nonsense in this video. turning off at 5 minutes.
@@airforcepilot1167but he can’t have a video unless he uses averages. I agree about home. I know it’s part of my net worth, but I have to have somewhere to live and even though it’s paid off, it still cost me $600 a month (taxes and insurance).
Future income flow is an asset and should be counted as net worth.
$166k annually is like having 3-4 million.
And everybody knows where they live and what their cost of living is like. So they know if they should be somewhat higher or lower.
This would make me happier if it was based on location of retirement and is this liquid or networth that includes homes value or not. Mediam net worth is very different if I live in LA CA vs Baton Rouge LA.
The whole net worth discussion is just so problematic...
Is most of that worth your home? If so, do you plan on using that equity (selling your home, reverse mortgage, etc)? If not, then the value of your home in retirement is just the money you aren't paying for rent/mortgage (assuming your house is paid off). While it's great to have a paid off home in retirement, you still have property taxes, insurance, maintenance, etc..
So the amount of your net worth that affects your retirement might be less that one might think.
How old are you in retirement and what does that mean for your medical? Depending on your financial situation and what state you are in, that can easily be $1k/month (or more) until you get to medicare...
So how much of your net worth might be going to that?
Net worth is a great general piece of information and nice to use to help you track your progress...
But I think it can be way over-rated as a sign of whether or not you are on-track for retirement...
I just don’t include my home in my net worth. I have a lot of equity in my home but if I sell all that equity would go towards down payment on a new place to stay…
It's common in the FIRE circle to exclude home from net worth for this exact reason.
The whole idea is what you could do with your net worth when one retires so one’s house should be included.
@@greghelton4668 I agree, it should be included, IF you intend to use it when you retire. But not everyone will, or will only use part of it. Which is why as assumption that all of it will be useful might not be accurate. People just need to be aware of that...
@@desiv1170 I agree. Net worth is net worth. Planning is another animal.
The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.
Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.
Safe to say not everybody has the skill to pursue investing. But it's always easy to follow the advice of someone who knows how to i.e a financial advisor. You could anywhere between 10--40k with the right ones. Online businesses are a good bet too if you are savvy.
Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
Scam Alert ! Scam Alert !! Scam Alert !!! Don't look for a financial advisor scam artist in the comments under a You Tube video! Scam Alert ! Scam Alert !! Scam Alert !!!
Best net worth video (in today's dollars) that I've seen. Very credible and absolutely passes the "sniff test" Well done, thanks!
Great comments. Great guidance. Believe in yourselves and your abilities. You don't need someone to tell you how much money you need to retire. You are the only one that can make that decision. Own it.
Azul, one reason that the younger generations started saving earlier than those of us who are older did is the laws around 401k plans have changed. When I was young in the workforce I had to opt in to saving in a 401k plan. Today if someone doesn’t want to save in a 401k plan and their employer offers one they have to opt out of it. I think there’s also an automatic 1% increase in that automatic option in too, but I don’t know if I’m correct about that.
Of course the older generations had pensions from their first day of work, which most people don’t have today.
I don't have anywhere near 1 million in retirement however i have a very beautiful paid for house , vety nice vehicles that are all paid for and very low expenses. I have no aspirations of expensive travel, elaborate meals out or expensive clothes. I am healthy and grateful that i have all i need. I dont think people need a million. It depends on where you live and your desires. Four million dollars!!!! Thats unobtainable for many people.
Having the paid off house is where a lot of people struggle. One can probably 1/2 the retirement number if they have a paid off home that they are comfortable living in.
What would it take to make me comfortable in retirement? Well, a good chair would be nice, and I could use a cup of coffee... Hmm, coffee ... brb.
Gen X, retired debt free at 45 with a net worth of about $800K. We are pretty comfortable, albeit frugal since we had to build ourselves from nothing, and now it’s just our nature. Our main expenses are a fairly expensive school for the kids, a few holidays a year (because we didn’t have money to travel early in our marriage), books (I buy them compulsively), and regularly hosting our friends and family (which is something we have always loved, and won’t change because of our close-knit circle).
Gen X here, started investing at 23, reached 1 million at age 46, 2 at 52, 3 at 55, and I'm hoping to retire at 60. Reduced SS anticipated to be taken at age 67 or 70, and a small pension from work also at 67.
You must live in one of the crazy expensive states
Do you own a home.
@@TheSoaphippo I do own a home worth 250k.
I'm in the same boat, 58 but retired at 55. Why wait. Everyone that I know that is retired - only regrets, they did not do it sooner.
@@educatedwanderer9293 looks like you’re all set. Might even want to consider retiring right at 59.5.
The only issue for us is medical insurance. Medicare starts at 65.
I had around 30k net Worth in 2012 at age 28 when i bought my first home in LA. Then got a second home in 2017 and rent my first one. Now today at 40 years old with a family of 7 i have around 1.1M net worth. And making under 100k in the past 10 years. Hope i am on track to having over 5M by the time i retire. Finances are exponential. Live above your means, borrow, and your debt can spiral exponentially. Live below your means, invest, and your net worth can grow exponentially.
Somebody once said, You can never save enough for retirement but that doesn't mean you shouldn't try anyway. Take your health seriously now to reduce the financial burden of failing/ill health and ACTIVELY plan your retirement so you can still make money even then. Goodluck to us all.
That's very true. Besides IRA and 401k, are there other ways we can prepare ahead of time for our retirement?
Mine draws nearer by the day and I'm gradually going into panic mode
Don't worry too much. The easiest approach is to save more money and invest those savings in profitable opportunities. It's crucial to either understand your investments thoroughly or consult with a financial expert to avoid losing your money. Over the past three years, I’ve earned a few thousand dollars annually and almost doubled my retirement savings through stocks and ETFs. If I continue this strategy, I should be well-prepared for retirement, even with less than six years to go.
By professional, do you mean an FA? Did you use one? What are the steps for getting one? Like a really good one?
I could definitely use that now. Thanks
Yes, I use one. Don't know if I am permitted to go into details here, but you should start by looking out for those from credible firms and good track records. You should also make sure the person is licensed. Mine is Becky lou Gordon and you could also look him up though I'm not so sure she's taking on new people atm.
I love your videos. I’m 69 and retired at 50. Still going strong!
My wife and I have a net worth of $2.5 mm at this time. Never made more than $ 100K except for 2 years, and saved 15% for 30 years because I didn't believe SS would be there when I retired at 70. Life is good = but I am still concerned with what I want for my kids to inherit
You kids should earn their keeps. I'm planning to spend to $0 when loose my independence.
Till we die @@tdgdbs1
@@tdgdbs1You're 100% right. Sadly, many don't think like you and I. There will soon be the biggest wealth transfer in history as Boomers die. Tens of trillions will be inherited from those with wealthy parents. It will be so extreme that the US will inevitably turn into a modern day monarchy - the top few percent will control 80% of the wealth - there will be a small merchant class that does well, and the rest will be modern day serfs, with little to no chance to economically advance.
Same here, although my net worth is even higher, yet I still have concerns whether it will be enough to last my lifetime.
@@Valmontst I understand - me too, Depends upon the economy and F-ing government screwups
1m is plenty to retire on
1m will generate 4-5% annually in interest, that’s 40-50k you can take out and not touch the principal
You’ll also have social security which will be ~24k annually
If your house is paid off and you cannot live on 64-74k in income , you have a spending issue
Who says I'll have 24K$ social security??
Buying a basket of dividend growth stocks to beat inflation and throw in some higher yielding funds (ie closed end funds or ETFs) and you will generate enough cash flow from dividends on 1 million which will never need to be drawn down over retirement..
@@nineteenfortyeightI think the average social security monthly payment is about $19,500 at this writing. It's not a lot.
I always enjoy your videos Azul. I am 64 with $1.6m in retirement....including $1m in 401k, $500k in CD and $100k....I want to retire in the next few months but I always worry I am underprepared.. But then I see your videos and feel like I might be ok.
The numbers will also vary by that cost of living where you live. Comfortable in the SF Bay Area or Manhattan is $5M or higher. Wealthy is $20M or higher. In places like Reno, NV or Weed, CA and others well outside of major metro areas, most of the US land mass, your numbers are good.
I see how our choices have given us great security. My wife and I have six income streams. Our MRDs just roll over to an investment account and we add to that from our monthly income. Also having two medical plans makes our medical cost almost zero. House paid for, no debt and living modestly for many years has also helped.
This was really helpful and reassuring. I/we're way ahead of the curve. Like they say though, you can never have too much money!
Thanks, Azul!!
You need 2-3M for a comfortable retirement. 2M would only generate about 80k a year, add that to a pension and/or SS you could have 120-150k a year, that’s comfortable.
@@paulsmith2279 Leaving a legacy to your family and children is a desirable thing. It means you're not a narcissist and you made an impact int he world to the people that you loved.
@@paulsmith2279 there's a lot of benefit to saving early. it can allow you to take more risks in your career trajectory, not accept low pay even if it means youre unemployed for a year or two, and take more time for yourself rather than working that overtime because you need your bonus. ive found a lot of peace in life solely due to having a large nest egg.
@@athens31415Right there with you buddy
S&P yield 13% in long term investment (over 10 years).
2M = 200K a year return.
I don’t know how you only get 80K return for 2M! It must be a very poor investment.
In long term (over 10 years), I could get ~20% annual return or more in Tech. I am also working in Tech.
@@fc5520 4% conservative rule.
Paid off house and no bills aside from utilities, insurance etc and 3 million would be sufficient for good living...
No debt and your house is paid off....and you need $3M? LOL ok good luck
@bluedouchemark4685 5% cd earns 150,000... minus taxes and insurance and you'd have around 100k to live on...
@@CBass-mn5dy ok baller, what about the 3 million? gonna die with that in the bank?
@bluedouchemark4685 baller? If you want to scrounge by with less, go ahead... I put my time in and saved accordingly... 3 million saved is not unattainable and was well worth the time I took saving it. 100k a year to live on is hardly "balling".
@@CBass-mn5dy you supporting a couple of boy toys? As a single man, I don't need anything near 100k. Also, why would i want to die with 3 million in the bank?
I will have two pensions, VA disability, TSP, and s.s. Me and the Mrs. will be just fine. Won't need 5 or 10 million to survive. 😇
Will you two be ok if one of you pass?
Life financial studies should be taught during high school. Not just from a financial perspective but from a social construct perspective.
@11:50 so true. Also, those days salary/earnings used to be less. So, saving 10% was a struggle/challenge for most, not so much now a days.
I’m retiring at 63 as soon as my house is paid off. 8 years from now. Should have 1.75M in 401k if markets are Average
Trump is proposing no tax on SS. It’s ridiculous that we are taxed on SS.
MAGA 🤡
Absolutely. It is taxed when you put it in, and up to 85% taxed when you pull it out-and I would not be surprised if that is upped to 100% to “fix” SS
Other benefits are taxed so makes senses SS is too, it's not like you pay into an SS specific fund.
Not all states tax SS
@@caracal9458So 11 wrongs makes a right?
Thanks, Azul !
Yes, and you'd better pay attention to the politics of Social Security & Medicare when you vote. The first study sited didn't specify whether their figures were for each individual or each household.
For retirement planning, I think net worth calculations need to include the discounted value of *guaranteed* future cash flows (pensions, ss, etc, default risk aside). It would standardize the advice and planning better.
Amount need to retire comfortably. -> Are the numbers for a single or couple? 🤔
From the study, I found the following:
The Harris Poll conducted a total of 4,588 online interviews among the general U.S. adult (18+)
population between January 3rd and January 17th. Included in this overall total is a sample of 831 HighNet-Worth individuals (those with total household investable assets, excluding pensions, retirement
plans and property, greater than $1,000,000).
Seems the answer to my question is 'household' - which I interpret as single+couple? 😖
Your video title implies that you are going to talk about net worth in connection with retirement, but you seem to be talking mainly about “amount saved” in connection with retirement. I’m disappointed that you didn’t clearly and consistently distinguish between these two measures.
When I heard that UPS was paying drivers $176,000 plus benefits, I knew we were in trouble. Dockworkers, the highest paid blue collar workers are striking for a 50% pay increase. In California, fast food workers start at $20 an hour. Wage inflation is definitely going to affect most people who are retired. Wage inflation was set in motion by the pandemic. People resisted jobs that involve working with the public. Laid off employees were getting at least $900 a week to stay home. Retirees trying to hire skilled workers for home repairs find that everyone wants over $100 an hour and you can't find anyone to show up.
According to the Federal Reserve, 64% of those age 65+ have a pension. Of course boomer+ say they need less retirement savings because most really do. GenX like me started saving later because many of us started work when pensions were still fairly common but lost it part way through our careers. Younger have always known it’s all on them.
How did you lose your pension? I ask because I’m also a Gen X(46 years old), and I still have a pension waiting on me when I retire, even though the company I work for doesn’t offer it anymore for new hires. As a matter of fact, they stopped offering it over 10 years ago, but those of us who started working there before they stopped offering, still have it.
@@blongshanks77 Company can terminate it at any time and give you the current cash value as a lump sum or buy you an annuity. Search pension termination.
@@blongshanks77 I'm a bit younger (old millennial), but pension was 'taken' from me via a policy that said "if you have less than xxxx vested in the pension, the company will automatically buy you out".
So many of us with under 10 years with the company had a lump sum (and not a big one) dumped into our 401k. Those above the threshold were given the option to keep the pension or take a buy-out.
To be frank, I think I prefer having the 401k simply because I've read too many horror stories of mismanaged and underfunded corporate pension plans. But the fact remains that 401k is a 'failed' product for far too many Americans. They tend to be "leaky" and there is no guarantee of result. This leads to vastly different outcomes for employees based solely on the savvy of the individual to manage those 401k funds over a 30-40 year working career.
The system is too complex with too many pitfalls for your average American. To put it bluntly, the average person is not disciplined enough or intelligent enough to make a 401k account work for them. THAT was the true advantage of a pension for most people.
Azul is definitely in the bear camp. Jamie Diamond's opinion on the chances of recession changes all the time. If you maintain 12 months liquid, you can sleep at night and weather most corrections and the majority of a bear market. A "recession" can be as short as two months and, in that case, over before we know we were in one. But hey, what did I know, I haven't been a financial planner for over 20 years. Unless you count the 40+ years, I have been planning my own.
I think how much in income you earn every (not wages) is very important and net with number that is liquid assets, stocks and bonds etc.are very important.
My generation landed into the zone where the 401k wasn't standard and pensions were stopping and weren't an option at allot of places... was about a 10-15 year "dead zone" allot of my generation had nothing in the early years! Also the lack of education on retirement savings didn't help. I've been playing catchup but my kids accounts will be set even if they never invest another dime themselves (time is your best friend investing!!), now i can focus harder on the wife and I retirement. Its not easy out there, last few years have mad it so much harder, BUT WE GOT THIS!
My aunt is worth millions and travels in a new travel RV every year, she’s never worked a day in her life but her husband was an engineer at Exxon his whole life and died suddenly 6 years ago. She’s living the dream at 75
I love your channel Azul. Always great information, very, very helpful!!!!
Why so many people don’t see or admit the economic disaster we are in the midst still baffles me. Prices shot up and remain at these new highs.
What is a good way to calculate an asset value for a pension? I assume you plug in the variables in a TVM or annuity with payment calculator and solve for the initial principle? I assume a pension in some way adds to your net worth in a way that is more than the total payments over a period of time? After all, without a pension, people need a sizeable nut to generate those payments a pensioner gets.
I would assume you could predict the annual pension income when you retire and then use something like the 4% rule to calculate an equivalent lump sum needed to be invested to generate that annual amount. Then add that lump sum to your current net worth. At least that's where I'd start.
My wife’s pension is $55k a year which to me is worth $1 million in the bank
I'm 40, with 1 mil already saved for retirement, but my wealth advisor is making me feel like I'm going to need 5 million to be fully protected from outliving it. That number makes me anxious that I won't get there, but I know he's shooting for the stars.
I'm curious, are the figures different for people with a good pension? Should you include the present value of your pension when you calculate how much you need for retirement?
There are different wealth (net worth) distributions that may greatly affect your situation in a crisis and generally speaking, the more of your net worth tied up in your residence the less flexible, and assured of survival, you are in a crisis or economic collapse.
You can always live in a van if most of your assets are flexible whereas, your house may collapse in value, and be unsellable at any price, in a depression.
A van down by the river? 🚐
I'm confused. 1. Are these amounts for a SINGLE person or for a HOUSEHOLD or COUPLE? 2. I assume this is "cash" dollars in very liquid assets (stocks bonds cash). OK if it includes the equity in a house, I can go with that although you probably have to adjust for liquidity. Same on any other HARD ASSETS that you would have to liquidate. Finally, how does Social security and other PENSION payments figure into the TOTAL number you are stating? If one is receiving $5000 a month in pension payments, that's $60,000 a year, right? What is the capitalized VALUE of those payments that are "guaranteed" by the government? I would suggest that if you take that $60k a year and divide by a cap rate, you could then add that amount to your other "assets". Right? So what is a good cap rate? Let's say 4%. So $60,000/4% is $1,500,000. Add that to your other savings and investments and the equity in your home, and this all seems pretty doable. C'mon Azul, what's your perspective? If I'm single have $5k/month in annuity payments and say another $750k in assets am I good to go? $2,250m can buy a lot of tequila.
….. if your residence is montage free consider your residence a zero sum ….. whatever value is there will be used for housing, or long term care needs, towards end of life …… the net worth is investments and savings…….. makes the discussion a lot easier
Heard a financial adviser talking to a prospective client: 53 yo housewife, husband was diagnosed with dementia, was self employed all his life, SS is at the minimum. Need $50K /y to live. House and car paid off, no debt. $2.3 m in cash, stocks, bonds and two homes around $1m. FA said to the wife that assuming she’ll live till 95, she doesn’t have enough money to live off if money simply stays in savings account.
Very logical. Financial planning should start in highscool.
I, 69. have a fraction of this money, and I live very comfortably. Eat healthy stuff , exercise, and have good social contacts.
And especially don't have a financial planer who takes big fees.
Someone please explain to me why inflation went up so much in the last 3 years and why we are going to need millions to retire in the near future???
Democrats. They are also talking about taxing capital gains on your house and investments at 40%.
Boo hoo, cry harder. The economy was absolute GARBAGE under Trump.
@@alandesgrange9703MAGA 🤡
Real estate. Food. The government allowing people to live without paying for housing or food costs for 2-3 years. It's catching up now. The millions for retirement are needed due to the uncertain cost of living in the future.
It's a global issue. So obviously not caused by US politicians. 🙄 Some of it is simply corporate greed and extra price hikes to pad their pockets.
I need a way to draw up a plan to set up for retirement while still earning passive income to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket. i want to invest around $250K savings.
Don't put all your eggs in one basket; instead, diversify into different asset classes to mitigate risk. If you lack extensive knowledge, consult a financial advisor.
Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 300K cash earning 5.25 interest, 685k in 401k, 250k cash account, 120k in car assets ( paid off cars) Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.
pls how can I reach this expert, I need someone to help me manage my portfolio
Melissa Elise Robinson is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
her track record looks really good from what I found online. I'll take a chance and see how it goes. Thanks for the info
how much you need to retire depends on what you plan to do in retirement
And where you plan to retire.
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Brooke Miller for helping me achieve this
I'm surprised that you just mentioned and recommended Brooke Miller, I met her at a conference in 2018 and we have been working together ever since.
The very first time we tried, we invested $1000 and after a week, we received $5500. That really helped us a lot to pay up our bills.
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I'm new at this, please how can I reach her?
she's mostly on Instagrams, using the user name
I get that these surveys are done for clickbait, but depending on where you are relative to these numbers, but best way to get depressed is to pay attention to these surveys. Rather than looking at your personal situation. Lifestyle and living expenses are everything. You cannot honestly evaluate anything else prior to knowing that number. Watch for entertainment, but ignore until you have looked at your personal situation.
That matches up to me moving my own minimum retirement goals from 1 mil to 1.5 mil. I'm still targeting 3 to 5 million if I work until I'm 65 instead of 60.
watching from the UK, these numbers seem very large even adjusting for currency. Why is this? Do Americans have to drive further, have higher motoring costs and higher home tax costs and healthcare costs than in the UK?
Boomers already in or close to retirement. They can factor in social security benefits. For those of us who are far away, we don't know how much we'll get in benefits, taxes could ve very different, the ling bull run that we got might not repeat, pensions won't exist, and inflation sucks. We'll need more money to retire.
Retirement is all about cash flow. We are retired and have a positive monthly cash flow of $2-3K. Net worth for 2024 YTD is up $380K. We are middle class.
Cash flow is more important than savings
Very true
Savings will allow most to manage risk in the event of loss of cash flow. Loss of job = loss of cash flow.
For many people, a big part of cash flow will come from retirement savings. When planning for retirement, you obviously have to understand your assumed social security and pension payments, and then use retirement savings to close any gaps between living expenses and those social security and pension payments. Most Americans have not done a very good job at savings for retirement, which means they will either have to work longer or not have such an easy retirement.
What do you mean by cash flow???? Cash flow has little value at all in determining retirement.
To retire you must be able to pay your expenses. Savings is assumed to be an investment that will generate income to pay those expenses.
I think about the two main points.. Average net worth and savings... Which is crazy because california is different than arkansas.
And people saying they should have started early, Or financial guy is saying it... paying for college, kids, bills etc. in the beginng Besides being stressed of the unknown and security in the current job... Makes you decide what you do. Hindsight great Especially when you're fairly Financially secure.
Are there any calculations of retirement lifestyle costs that create these numbers. Or are they based on some feeling
I retired 7 years ago. For most of my adult life, I contributed 15% to 19% of my income into a retirement account. That's over and above what my government job gave me as a pension. And of course, it's over and above Social Security contributions. With these three sources of retirement income (S.S., pension, and monthly IRA withdrawals), I have a very comfortable retirement. BTW, my pension includes full medical/dental coverage for my wife and me, which is a big help financially.
For young people working in jobs without pensions, I'd second your recommendation that they save at least 20% of their income for retirement purposes.
More explaining needs to be done for the less financial savvy viewers. This does NOT mean you need to have this much sitting in an account somewhere. Keep in mind you will also be collecting some sort of pension/social security/or investment income hopefully. This needs to be factored in. If a husband and wife are taking in 4k per month in social security, thats 48k per year, and at 10 years, that almost a half million on its own. Hopefully tou have other streams as well. Then factor in your lifestyle. A modest person can live better on social security than someone who lives lavishly on triple that amount.
Pretty simple if you divide by 30 years of retirement that’s 50 K a year, with social security that’s maybe 90 K a year. For a couple that’s comfortable but definitely not wealthy
I’m 42 now and i’m projected to have around 5M by retirement, not counting social security or my pension or my wife’s retirement/401k.
I’ve always been terrified of losing SS and pension and figured I’d better do it myself for the entire family, just in case.
I plan to retire at maybe 62, I dunno. I should probably talk to someone about all this. :)
All I want is a nice house in the woods. I’ll do some basic travel in the US to see a lot of the parks and maybe do something OUS if the wife wants. It would be nice to take care of the kids and my niece.
Save aggressively! You can’t take it with you but plan for the worst and hope for the best.
Social Security drops off the cents from the payment where does that money go?
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Kimberly Ann Doran for helping me achieve this.
The very first time we tried, we invested $2000 and after a week, we received $9500. That really helped us a lot to pay up our bills.
You trade with Kimberly Doran too? Wow that woman has been a blessing to me and my family.
I'm new at this, please how can I reach her?
I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much.
she's mostly on Telegrams, using the user name
Interesting video. Unfortunately 50-30-20 doesn't work for someone who is single - depending on mortgage payment amount. My mortgage payment alone is almost 50% of my income thanks to rising property taxes and insurance. So none of my other needs would be paid if I stuck to that rule...and I do try and spend as little on groceries as possible (under $200/mo), but by that rule, it would be zero. Ha - and my pets must have their food and medical care too ..
Expect these numbers to increase another 50% in just 2 more years! Govt has no way out of Money printing and inflation strategy… they can’t correct things now. So, you need to save WAY more just to be comfortable than any of the financial advisors tell you on any given day.
Part of the variance between the young and old demographic is: 1) younger just doesn’t know and tends to therefore guess high and 2) they have “lifestyle needs/wants” that many boomers don’t share. This is not new. Boomers, when they were 30-ish, also had lifestyle needs/wants that the ‘greatest generation” didn’t share.
These videos always confuse me because I never know if the numbers are per person, or if. they are for a married couple. Sometimes terms are defined, but rarely.
He said numbers are for households.
For some reason every time Azul says "it passes my sniff test", I picture Azul picking up a folder containing a client's financial details and sniffing it, then declaring their likelihood of success. 😂🤣
This question is very diverse. How do you want to retire? What is your life style and expenses before retirement? Today, a net worth of under $2M might limit your retirement life style. But again, everyone has different needs, different lifestyle.
Personally i would require a $5M net worth. And it takes discipline, dedication, luck and some smarts to get there. Unless you inherit the lot.
I went on Northwestern Mutual and couldn't find if that net worth figure is inclusive of primary home equity or exclusive of it.
Taxing Social Security is abhorrent.
the common sense of living below your means is lost after gen x. younger gens consider iPhone pros, eating out/take out/food delivery, and loan forgiveness as necessities.
I've listened to enough hours of financial advice shows like Ramsey to confidently say Americans of ALL generations have forgotten how to live within their means and discern between needs and wants. There are winners and losers in every age group.
Ummm…did I miss the answer to the title question? What is considered “wealthy” in retirement, not just “comfortable”?
little under 4 million
None of these people will have even a fraction of what they said they will need, it's absurd, people have no idea how long and how much work and discipline you need to save even $1M
I am really confused by the statement that the mean age in which boomers started saving was 37! Speaking as a young (61) Baby Boomer myself, almost everyone, my age or older, started saving much at much younger ages.
Most of my relatives and friends have been working since we were kids. I started a paper route at age 12, then cut grass, worked in a hardware store, worked in my father‘s business, all before I even started college (at age 17). I worked part-time throughout my college years, and then begin working full-time at age 23.
Because of living a modest lifestyle, and saving consistently, I was able to retire at age 57. I don’t think I am unusual, as many of us Baby Boomers started working as kids. Granted we didn’t earn that much, but the idea of saving was instilled within us from a very young age; probably the result of having parents who had lived through the great depression.
The trick is to start saving as early as possible to take advantage of the magic of compound interest.
So in 4 years the number has increased by 500k. Does that mean by 2034 (10 years) we should anticipate that number to be 2.7 million? (Meaning to retire comfortably)
$5M in 10 years; maybe $7M after Kameltoe & Wartz destruction is over in 8 years.
The younger you start to prepare for retirement the better off you will be. But the best time to start is right now.
If your income is too low, you can’t save enough and will retire poor. If that is the case, first focus on increasing your income.
If you make good money but spend all or most of it on maintaining your lifestyle, you will retire poor. If this is the case, focus on simplifying your life, and save, save, save. Live below your means and be kind to your future self.
With all these “magic number” type reports is there a measure/factor/discount that you can use to apply it to a married couple’s joint savings? For example, although we’re hustling hard my wife and our collective retirement savings is still just about $1.1m plus change at 48/49. I love a target. Should that 1.5m be doubled for a couple or can a (maybe slightly) lower amount be considered comfortable for a couple? I appreciate there are other variables but in simple terms is there a factor that can be applied to the magic number for a couple?
These numbers appear incomplete. Do the net worth numbers include an NPV at a reasonable rate on pensions? Doesn’t look like it. Do the “when you started saving for retirement” ages include when you started to build positive equity in a home? Don’t know, but I doubt it. Without taking account of these elements, the picture is incorrect.
On the 50-30-20, is this applied to after taxes?
GenX and I think I need $4-5M to retire. I plan to retire at 55, my spouse at 60 (we are 5 years apart). I live in a HCOL area and I don't want to worry about money at all.