Thank you for this video James. Good advice. I retired aged 52 with my husband (aged 57) after we took a sabbatical. Sadly he died last year, 2 years after receiving his personal pension and 1 year after receiving his state pension. I am still executing his estate and although we had wills & a plan if either of us died, we did not walk through the timeline to implement the plan. I would recommend to everyone to make sure a walk through of your plan is carried out so it makes life easier for the person left behind as it is stressful.
@@lindab4214so sorry to hear of your loss, hopefully you had very good years together in your retirement. Sound advice on having a plan / road map made. I keep saying I must generate a document detailing accounts/savings contact numbers, possible passwords etc so things can be accessed and sorted easily should I die.
@@manthravadi The alternative might be an IFA or equivalent. Based on previous occasions when more distant relatives have died, I doubt if my wife would be in a fit state to do anything.
I have been retired for five years now. Although I've been adhering to the 4% rule, things are challenging as I did not anticipate. 30% of the $600K I invested in st0cks is lost to the market. How can I diversify my portfolio for retirement
Now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
Yes true, I have been in touch with a financial advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
My CFA, ANNETTE MARIE HOLT 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..
I’ve been hearing a lot about Roth IRA conversions lately, but I’m confused about whether it’s the right move for me. I’m 47, with a decent 401(k) and a modest traditional IRA. With taxes likely going up in the future, should I start converting now, or am I too late?
It's not too late! The main thing is to balance the immediate tax impact with the long-term benefits. Converting to a Roth IRA can secure today's tax rates, but you need to be cautious about moving into a higher tax bracket. Timing and planning are crucial, so consider consulting a financial advisor.
investing with the help of an advisor did the trick for me in barely 5 years. Retired with couple millions at 55. I worked hard everyday as a teacher for 22 years, and my salary was over 100k annually, enough to get me fully invested.
I've stuck with SHARON ANN MENY since the pandemic, and her performance has been consistently impressive. She’s quite known in her field with over two decades of experience, simply look her up.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
In the 50's my late dad worked a modest job, mom was a housewife, and they lived a nice lifestyle including owning a home. Nowadays both I and my partner work and can barely afford to make ends meet. Luckily, I've just received an inheritance of $500,000 and concerned how best to use money. Should I pay mortgage since I’m still working, or do I invest in stocks instead for better return on investment?
Depending on your risk tolerance, you could invest some, maybe try $50k at first in a high yield income ETF. This could give you cash flow for as long as you keep the investment. personally, I like FEPI, SVOL, and NVDY.
You should do a mix of both. Seek the help of a financial advisor and a real estate broker. Use $100k to get yourself a decent rental property, may need a mortgage but keep the cost of the property low, and put the rest into stocks.
Imho, investing with the help of an advisor did the trick for me in barely 5 years. Retired with couple millions at 55. I worked hard everyday as a teacher for 22 years, and my salary was over 100k annually, enough to get me fully invested.
@@andykuzman bravo! retired in my 40s after inheriting money from a childless relative, traveled overseas and found a girl almost my age, happily married but only issue is how to grow and preserve our wealth... think your advisor can be of help?
Karen Lynne Chess is the licensed FA I use. Just google the name. You’d find necessary details to work with and set up an appointment. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
Making touch with financial advisors like Elizabeth Regina Nelson who can assist you restructure your portfolio, would be a very creative option. Personal financial management will be crucial to navigating the next difficult times
No doubt about Mrs Elizabeth Regina Trading services is very good, I invested $5,000 and cashed out $14,700 after 3 weeks. I still wonder how they get their analysis
Elizabeth Regina Nelson has really set the standard for others to follow, we love her here in the Uk 🇬🇧 as she has been really helpful and changed lots of life's.
Hitting the proverbial nail on the head with those James! Wishing you a very healthy and successful 2025!! I planned to retire at 55, stayed on to chase some more cash and had a heart attack!! The health thing resonates and I definitely support the LPA / Will advice.
I'm 58, from Canada, and plan to retire at 62. I've probably watched hundreds of retirement videos over the last 5 or so years. This video is one of the best I've watched. Even though you're speaking to a British audience these tips are universal. Thanks for creating this excellent video. Mike
Top video James.! Am 68,, quit @63. Biggest comment would be how surprised I was that how little my ‘living expenses’ were once I was debt free. My meagre/average pot of £300k gets me a net +£10k+/yr
Well done - great video. My employer sent its staff at age 55 to a retirement day with a financial planner. I was surprised that it covered mostly the "soft" issues that you covered. He made the same point - This is the important stuff. One additional point that I remember was that spouses were encouraged to attend - and he asked each person in the coupe to describe their future retirement. They seldom agreed.......an important lesson on expectation
At least it isn't like Japan. A tour guide there said that it is common for Salary Men's wives to file for divorce on the first day of their retirement as they have no claim on the pension until it is in payment.
Thanks James - well done for not trying to boil all that insight into a Top 3,5 or 10. If you’ve got 20, 30 or 50 lessons then I’m happy to listen to them all when they are as pertinent and well observed as these were.
This is brilliant. It covers so much. I retired a year or so ago and the identity element hit me more quite recently...I really miss being part of something greater (worked for a wonderful university). We don't have kids so that gives us other things to consider, such as later life support (favourite niece lives 12 hours flight away!). I also find that we have spent less than expected so far during retirement although everything seems more expensive...have some big trips planned but we always seem to stay with friends and family! We really are going to focus on health this year...just booked osteo today and got Zoe, plus fitness instructor for us both! Happy new year and thanks for brilliant advice!
IMHO, it is far better to spend the inheritance you intend for your kids/grandkids while you are alive and not worry about taxes, etc. Obviously, you get to experience the recipient's happiness while you are still alive, and as the book James refers to explains, the recipients get to use your gift/inheritance when they most need it.
Yes a worthy read (“Die with Zero” by Bill Perkins) but do be aware he writes from an incredible place of privilege. Not all of us are oil and gas traders with millions in our late 30’s.
First class life advice. Puts a lot other TH-camr ‘financial influencers’ to shame and highlights how out of depth they are with the realities of life. I certainly need to work on a couple of the points. Am glad I already have a financial plan for home care should I need it. I am using a diversified approach of rental property, private pension, tax free investments and triple lock defined benefit pension to help me retire and provide some assurance in my later years.
In preparation for my retirement, I have been watching a lot of these videos from around the globe. Yours James, is by far the highest quality and best informed. Well done! 👍
Superb and well balanced advise James. At 52 years old I’m really focussed on funding my ‘retirement’. I realised during lockdown I will always work, even just for three days a week. As you said people need purpose and human interaction. Retirement to me means having a choice in what I want to do.
Happy New Year James! Just wanted to say, hands down your TH-cam channel is probably the most helpful and brilliant resource I have when it comes to future financial planning. It's even helped myself and my wife have conversations about money we were struggling with previously. It's like having a trusted 3rd party and mentor in the room encouraging us to look at different perspectives regarding our future. You are helping so many people so thank you for all your hard work. 🙏
I stopped work in 2019, aged 51 and never looked back. It took about 2-3 years to develop the structure, purpose and identity that I used to get from work. And it comes from a place that I never would have envisaged when I was working. This really was an excellent video, and all those points have been my lived experience.
@@jamesnelson2279 I have 5-6 nature recovery projects in the area where I live and 3 community ones. Last year I spent 202 days on those things, which still left 160 odd days to chill out.
Great video. I sadly experienced a lot of these lessons in 2024. My parents are in their 80's and left it all way too late and tasked me to help. Dealing with their power of attorney, moving, downsizing and deterring health has been emotionally stressful. The lesson of planning well in advance and doing things early while you are still mentally and physically able is so important. Not only for yourself but your family members and loved ones.
Really thought provoking. I’m 53 next and I’ve really began to have these ideas and discussions with my husband. The power of attorney section was very interesting as was thinking about getting older, possibly needing care and downsizing
have had experience of this with nonagenarian parents, luckily I had LPOAs both for health & money, 93 yr old Dad ended up in a care home for the last 4 months of his life, but he retired early on a DB pension over 30 years earlier, now supporting Mum in the family home, which in reality is too big but we manage. Hubby and I are retiring this year, he will be 63 on a DC pension, I will be 60 on a DB pension, and the first thing Im doing is sorting out our LPOA's to add to our wills - we havent got a lot as my DB is mainly on part time salary over 30 years (children) but we are prioritising health over wealth as getting up at 3am for the last 35 years is getting too hard for my husband - thanks James for great video... and I reiterate LPOA gave us so much more control over Dads sad demise in his final year so thanks for highlighting this
Accepting reasonable investment returns rather than chasing high returns is a great point and really resonated with me. As you say, higher returns mean higher risk which can mean higher stress. Retirement money is there to serve the retiree not vice versa.
Good video. One of the best I've seen on this subject. I retired at 48 and only regret not having done so earlier. The easiest and best financial planning tip to enable others to follow my example is - don't have children. They are giant black holes into which you constantly tip money. Use that cash to save and have a great life. You're welcome.
Brutally honest. It’s needed, well done. The bit about leaving money to your heirs/friends now rather than after you die made sense. If you’re planning to leave some money for them and you are confident of living 7 more years, why not give it over now? If not, spend it and enjoy it.
I run an informal retirees coffee club which seems to be growing in popularity, and without doubt the hottest topics are non financials. Yes, of course financial provision is vital but in my small sample experience, it is not the indicator of happiness we all maybe expected whilst working and looking forward to retirement. This superb video reflects my small sample and should be a reference for those looking to retire AND those already in retirement as many of the points which James raises have been left hanging. Thank you for such a brilliant video.
Power of attorney, after seeing how useful it was when my parents aged to help settle their bills and manage their lives, I really think people should give serious thought to it, my wife had POA for health and wealth.
Excellent explanations! Almost 4 years in on Stage 2 (I think of it as Stage 3 - the first being school years, although having had jobs since I was 10, maybe my Stage 1 was too short 😂). Be flexible, and remember to fill your time with fun stuff: as a retiree, you have the time to seek things out at off-peak or bargain times - take advantage of them 🍻 Absolutely are that you need to find a way to practice your retirement whilst still working. Keep those human connections you want, establish new ones (pickleball found us a whole new group of like-minded folk, good for health too👍) Thanks for sharing your wise words, James 💪
Glad to see that I’ve already factored in most of these when I retire next year. Plus I plan to travel the world AND spend time at the allotment . . . I just need to find someone to do the watering and weeding while I’m away!!
James, I dont know how you do it ! You seem to give advice which seems way, way above your handsome 😂 youthful looks. But you are bang on.. I am close to pulling the trigger on retirement/short time but you were right on number 4. After years and years of hard saving and investing, it just doesn’t seem RIGHT to start spending down on my capital. It goes against every fibre of my being to de accumulate. But I need to get my head around it and become free. Good point also about passing money on to your children earlier rather than later. 👍
The focus on health is absolutely key. My Dad passed away last year. He and Mom never had a lot of money - in retirement they had their state pensions and a very small DB pension. They still ran out of health before they ran out of money 😢
So as to he that, my parents did the same. Dad first and looking back his health declined over a few years especially once Parkinson’s started impacting him. Lost him at 77 but he had a good life. Mum died just a few years later and cancer took her quickly during covid. I tried hard to make sure they spent their money when retired and enjoying their retirement and not to think they needs to leave money to us kids
My parents don't have a lot of money either and I've told them they should spend it all on champagne and caviar. I want them to enjoy the money they worked so hard for.
@barbarar5869 When my Father died my Mother said her only want was for a new stair carpet. Sadly despite having enough money for a whole house she never got it as other more pressing needs like a stairlift got in the way. Regarding one of the other points I think that the neighbour who moved to a bungalow had a better idea despite her having to use pension money to do that.
Great video. I am recently retired and planned for it. I cannot express enough how important it is to try new things and plan ways to enjoy ypur time. I am loving it, but I know others that arecdreading it or struggling with it.
I did thanks James, I hope you and yours have a fantastic 2025, I look forward to your videos, my sons a financial advisor/ planner ( is there a difference?) and I’ll often discuss points you raise with him.
Great info James, I’m due to retire soon and obsessing about the best pension options but I’ve always used a compass of Mental Wellbeing, Financial, Physical and relationship and built plans around these pillars. Doesn’t always work but its helped me
A brilliant summary. As the song goes 'Money talks, but it can't sing and dance' Health is so important and people are too wrapped up in the money side and leaving loads for their kids and being miserable. I retired a couple of years ago at 63. Divorce has a big impact on finances. My biggest fear was 'not having enough money' but I have watched many of your videos and had 2 sets of spreadsheets trying to forecast by expenditure and pension withdrawals. They had similar trajectory and I was pleased that your (more professional) spreadsheet confirmed the general direction of mine. I've tracked my spending categories change over the last few years which allows my wife and I to agree what our plans are for the next period. As an ex Project Manager I've tried not to be too over the top in the discussions. But she still hasn't got the hang of Change Control authorisation! Another piece of advice would not to beat yourself up about decisions you've made in the past. Whats important is to learn from those and how you move forward. Keep up the good work and I'll keep on tweaking the spreadsheets and more importantly, my wife and I enjoying our exercises together.
Great video and seems to hit the mark on the issues around retirement James. I reach 60 this coming August and I'm considering retiring. I live to work and focus mainly on work and therefore I’m concerned about the adjustment and finding my new sense of purpose and social connection in retirement, I’m seriously considering going part time and ease into retirement. I have also been a saver all my life and I know drawing down on my savings will be hard and I may find it stressful trying to get the balance right between having enough money and enjoying life until I die vs not being too careful and not being the richest person in the graveyard. I never thought about the concept of Dying with Zero, but that is appealing and has the added benefit of denying the tax man the money, as the UK Gov seems to want to penalise those who work hard and try to save or build a private pension through excessive taxation or having to pay for cost of seeing out the final year or so of life in a care home and they may even decide to means test the state pension during my retirement. The little money I have, I want it to go to my children.
Ending the year on a high with this superb video James, thank you. I think what you’re demonstrating perfectly here is that we should consider retirement holistically and not become too obsessed with any one aspect. In my opinion this is what makes great financial advice so vital, saving us from ourselves! Keep up the great work James & Happy New Year
@@roadie6565 Drawing down your money without the government taking most of it will be your biggest challenge. Look at ways of accumulating tax free assets ASAP.
I retired in August and enrolled in a graduate certificate TESOL program. I am working on my final subject, and really enjoying it. It has given me routine, new social connections and kept my grey matter active. If I do find I need a bit of extra income I can do a bit of tutoring (which I already find enjoyable as a volunteer).
Great content and very insightful. Most youtubers focus on the number, you shed light to all the other important aspects we need to have in mind, while planning our retirement. Also, I couldn’t agree more on the “pass the inheritance, sooner than later”
There are lots of really great insights here. #13 is important. Too many younger investors seem to think that the stock market is like an infinite money hack. The idea that you might wait twenty or even thirty years and never ever break even is unthinkable to them.
I'm near retirement, have no children or spouse and expect to pay 40% of savings to the govt on IHT or spend it all. So I'll be blowing it all on yachts and an expensive holiday home in Spain.
@@Spp235. Yes - my happiest retired friend spends a lot of time (and her own money) helping 2 charities. She has a great social life from it and a sense of purpose, but can still take time out whenever she needs to.
Thanks for another great video James, packed with useful insights. As someone who retired a couple of years ago I can attest to the validity of the lessons you outline. I read 'Die with Zero' a couple of years ago and have just re-read it. I strongly recommend anyone watching to get this and read it-really thought provoking in a good way. Do think about what you're going to do when you stop working and think about your new purpose. And do think about the idea of 'running down' your portfolio as you start to spend what you've built up. If you've managed your own portfolio and spent many years investing and growing it, going into reverse is harder that you might think-I speak from personal experience and Die with Zero will help.
I just turned 54 with not enough set aside for retirement and awfully late to investing with barely any portfolio except my 401k. I have always been curious about the market and have witnessed people who played the game right and retired early. I have a decent amount of cash saved up and with inflation currently soaring AGAIN, I'm getting worried about retirement, my intention is to retire before 60. How best do I maximize my savings of over $60k?
Listen to Azul, read Barrons, and ask some people you respect if they have a financial advisor they really like. what you need is the right strategy and your life is set. I'm 58 now and just started investing some time last year,,, Didn't start with much.. And I made my first 100k USD 5 months later. And today, I have a decent $250K portfolio. It's never too late,, the right investments will change your life. I should retire soon as long as things remain this good. My only regret is not starting earlier
My CFA has been great, clearly my best one yet. I achieved this much with His management. What you need is a CFA who can assist you in managing your portfolio while diversifying your investments Robert Carlos Wright is my CFA. He's someone I can recommend. His expertise in market knowledge and asset management is truly top-notch. if you do your research you'll know for yourself that the old man's work ethic is off the charts. Google his full name you'll find his details on IAPD or SEC
Another detailed and helpful video about retirement and all its implications. Your videos help me be sure I am doing things ok, as well as prompt me to do things I need to do!
I Hit $32,590 today. Thank you for all the knowledge and nuggets you had thrown my way over the last week. i started with 5k in last week 2025.... now i just hit $32,590
How did you manage to achieve that level of growth? I've been trying everything I can to improve my investments, l want to retire in a few years and I need a better diversification
I'm celebrating £32K stock portfolio today... Started this journey with £3K.... I've invested no time and also with the right terms, now I have time for my family and life ahead of me.
Hi James - great, well informed video as ever! I retired in May 2023 at the age of 61 and had the rest of the year off but then commenced some part-time work from the beginning of 2024 (on a self employed basis). This was good to keep my hand-in and also to fill some of my time as I don't have any major hobbies (apart from doing a reasonable amount of travel and going to the gym). I intend to wind the work down this year (end of March is my plan) and to stop completely - but my issue then is managing the drawdown from my investments. I have ISAs, a reasonably large SIPP and some other investments and I haven't had to draw on any of these as yet because of the part-time work I've been doing (and some cash I had). It will be difficult to get my head around a dwindling SIPP/ISA balance and that is the one thing that concerns me but I will simply have to accept this is the way it works and make sure I am drawing enough and not worry too much about it! It's good to see that I'm not the only one who has this mindset 'challenge'!!
Great advice, thanks James. I (and my OH) are still into our first year of retirement (aged 62 and 60) and have most points covered off. The points that resonated the most for me and are currently lacking is the cost of care and downsizing before it's too late! Both of these are strongly linked because th equity in my property will pay for it if needed. The biggest uncertainty for us apart from not knowing how long we will live is without doubt getting to SP age. Once we get there we relax the purse strings for sure. Great video and thanks again.
Great Video James. And I can personally vouch not having a lasting power of attorney was one of the biggest mistakes ever. People think a will is enough and it’s not. Get a LPA done for you and your family.
I've always been fully onboard with the "die with zero" balance principle. The problem with inheritance is that it just keeps getting passed on or used to pay down debt, and few get to enjoy the true benefit of money: spending it. People who spend their retirement trying to avoid paying some tax are the unhappiest. Happy New Year, James! Thanks for the great videos.
James, this is a brilliant summary of how to make retirement work in every sense and not just financially, plus potential pitfalls to avoid. A great point of reference list in my view. Thanks for the time u have clearly invested in pulling this together. All the very best New Year wishes to you and all your viewers.
James would you consider also having these as podcasts to listen on the go? Appreciate that graphs etc wouldn't translate as well but, it would be so useful
My content is very dependent on the visuals, although this one is less so. I would need to create dedicated content for a podcast and I do plan to do that at some point. There's a few other things I'm working on ahead of that though!
After reading book titled The Elite Society's Money Manifestation, I finally understood why so many people struggle with money. It reveals stuff that most people don’t even know about how money really works. Has anyone else read it?
Great vid and excellent advice as always James! I retired at the end of May this year (great time of year), spent much of the summer and Autumn at festivals and having building work done at home so that I now have my own space to play music without annoying the Mrs. Your videos have been a huge help in encouraging me to spend money now (within reason) and changing my mindset from accumulation! I stepped down as a Director from my company at the end of 2021 and had 2.5 years part time (50% fte) which gave me confidence that I would not miss work. I haven't and am looking forward to 2025 as my first year of full retirement. Thanks for all your great advice! I should say my only stress is that you may find your partner doesn't necessarily want to do the same things as you in retirement so it's important if you want to sustain your marriage to give each other lots of room to find your own path as you move into your 60s.
Just for the record as understand, LPA’s for health and welfare only mean the DRs will listen to you. They will not necessarily ‘do what you say’. They will use their skill and judgement to do what is in the best interests of the patient. This seems like the best approach to me.
Agree with every word you say. This is such a great list, particularly the less commonly mentioned soft side of retirement. Everyone thinking about retirement should have this information - I think it covers everything important that people need to know.
James, there’s one massive contradiction in what you say - “die with zero” and “plan for care costs”. It’s impossible to reconcile those two mutually exclusive objectives. The only possible option that I can envisage is insuring against the potential care costs liability, is that even possible? HNY. Rob
I would disagree. We both retired at 63 in the USA. Long term care is way over emphasized. Most people will not need any substantial amount. The common quote of 70% is including family care. We have had no LTC in our extended family except family care. Most people die in shorter timeframes. If you own a home, and have no debt, that solves the problem. You can’t get cash out of your home anyway while living in it(unless you have a reverse mortgage which we do). We are planning on spending down all our money (including gifting) by the time we are 85. We have one large Social Security check that will allow the last person to be more than solvent. We watched 4 parents live off only low SS checks. It wasn’t great but, they made it. We will have double the resources after the portfolio is gone.
I think the stats are that one third (or 1/4 as James says) will need to go into a care home, which is the costly nightmare scenario. However these are really end of life palliative care homes so people don't actually spend a long time inside even though each year is costly. If they fund this from selling their house (the final asset) there will be plenty for the care home, and some left over for inheritance. And if not, in the UK the council will have to fund once the funds run out.
@@grahambriggs8185 can’t speak to the UK, but I worked in the industry in the US and the numbers are no where near that for extended residential care. Less than 20% require more than 100 days outside of the family and the home
You are absolutely correct. That is why this is the "Hardest, nastiest problem in finance". On the one hand, you want to be able to retire early and get the most fulfilment from your money. But on the other, you have no idea how long you're going to live or if you're going to need to spend £100,000s on care fees. Therefore, the only way to insure against this risk is to work longer or spend less so you have a large pool of capital to draw on in later life if you need care. But then... most people will never need to draw on it! What a waste! As you say, insurance could be a solution and in the US they do have Long Term Care products to protect against this risk but in the UK the product offering is limited. However, in the UK we have very expensive homes, compared with incomes. So many retirement plans accept that, if care is needed, the home will need to be sold/equity released to pay for those fees.
Although I accept that you shouldn’t need nursing rather than a simple care home you have to be aware as we live longer diseases such as dementia can lead to extended care needs. My dad passed away in 2015 after spending 2 years with mixed dementia in a care home, that destroyed any inheritance. We expected him to only be in there for six months.
Perfect summary, especially the lasting power of attorney: at 55 my only new year's resolution is to get that done very soon. After managing my father's affairs for both health and finance with his cognitive decline and recent death I feel dread when I hear of people going through the same without LPA/PoA set up, how hard must that be fore them.
I took VR at 51. Wasn't sure of my purpose after that until my mother and uncle both became unwell. My Focus shifted to looking after both. Sadly both deceased now. Uncle died 7 years ago today. Mother died 2023. Since she passed my Focus became sorting out her estate. Now that's mostly done, I am back to looking for a purpose again. Mum and uncle both made Wills and LPA. Made life much easier. I recommend and will now be doing mine. Hardest thing I find, switching from a saver / investor, to a spender. My brother on the other hand, no plans financially for retirement, spends everything he has and more.
Thanks, James. Yes, running out of money in retirement is the thing most worry about, but then it tends to switch to other things like health after a while. Switching to withdrawal is not easy after savings for so long and a psychological switch is needed. And the fear of investments/pensions evaporating in a poor market is very real for some. It's actually one of the reasons why I retain a healthy "cash" pot (MMF, Premium Bonds, High Interest Accounts) covering 3-4 years of expenses, so I leave the longer term assets to grow unmolested :-)
James, I would say that if you’ve worked for 30-40 years in a particular discipline don’t underestimate the value other people place on your knowledge. That can be used as an effective means of getting onto the glide path of semi-retirement and good employers or clients will actively work with you so they still get the good stuff from you whilst you get the chance to slide into a less stressful or demanding last few years of working. Great video by the way, should be compulsory watching for all!
Re lesson 20, my Dad telling me his intentions for his will was what caused the big rift over money, but at least knowing in advance I could take steps to ensure I'm (fingers crossed) able to keep a good relationship with my brother when the time comes
If only we knew when we were going to die... would make planning a lot easier! 😀 I would appreciate a video on how to plan for care costs please, it's always been a worry but I don't really know anything about it. No children so guess my house would be sold if i didnt have enough money?
I retired at 50 and actually have more money now than ever before through good investments (Tesla is the only stock I own). I’m 61 now and my wife and I are buying a plot of land on which to build a new home and a small cottage which we’ll rent out as a holiday let…this video is making me think about how to share our wealth with our two adult children now rather than when we die, thanks James!
Word of advice. do realise that investment luck can run out and you may not have the time left to do it all over again- Have you thought about selling some TSLA and diversifying into a passive tracker to avoid the risk of a large drawdown in personnel wealth?
I'm loving my retirement so far! My wife and I worked hard to reach this point - we're both retired, debt-free, and fortunate to have over $3 million in net worth. We achieved this through a saving and investing lifestyle in the stock market, which now generates weekly income for us. And now, we get to enjoy the fruits of our labor! We're traveling, golfing, and spending quality time with the grandkids. We feel grateful to be living smart and frugal, making the most of our golden years.
Absolutely! I'm in the same boat. I just got back from a road trip across the country. It's amazing how much energy and freedom we have now. Make the most of it, because it won't last forever!
I'm a young dad and I'm really glad to hear your story - it inspires me! I'm still working, but I'm counting down the days until I can enjoy my retirement Years. Can you please share your tips? What's the key to achieving this milestone and making the most of your retirement years? Any tips would be greatly appreciated!
Building a successful retirement requires discipline and strategy. Our journey's key takeaways include starting early, living below our means, diversifying investments, creating multiple income streams, planning for taxes, prioritizing relationships, and maintaining an active and healthy lifestyle. Additionally consult with a fiduciary advisor, who can help grow your funds, Create a personalized plan and better prepare you for a successful retirement. we are with Tracy Britt Cool Consulting a US-based fiduciary. Check online if she meets your requirements.
Building a successful retirement requires discipline and strategy. Our journey's key takeaways include starting early, living below our means, diversifying investments, creating multiple income streams, planning for taxes, prioritizing relationships, and maintaining an active and healthy lifestyle.
Additionally consult with a fiduciary advisor, who can help grow your funds, Create a personalized plan and better prepare you for a successful retirement. we are with Tracy Britt Cool Consulting a US-based fiduciary. Check online if she meets your requirements.
An increasing number of people are likely to face challenges in retirement. Low wages, rising inflation, and high rental costs make it difficult to save adequately. Now, even middle-class Americans are struggling to afford homeownership, putting their retirement plans at risk.
The surge in living costs has disrupted my plan to retire at 62, work part-time, and continue building my savings. I can't help but wonder if those who weathered the 2008 financial crisis had it easier than what I'm facing today. The volatility of the stock market, paired with a decrease in income, has raised concerns about whether I’ll have enough funds to secure a comfortable retirement.
This is exactly why I rely on a portfolio coach for my investment strategy. Their expertise-managing both long and short positions, capitalizing on asymmetric risk, and strategically hedging against market downturns-makes it incredibly difficult for them to underperform. Over the past two years, working with a portfolio coach has helped me generate over $800,000 in returns.
I agree-having an advisor manage my investments has been invaluable since my work schedule doesn't allow time for in-depth analysis. Thankfully, my portfolio has grown fivefold in just four years, reaching nearly $1 million today.
I consistently recommend Rebecca Lynne Buie as my top choice. She is well-known for her expertise in financial markets and has an impressive track record. I highly endorse her services.
#20 is one of the most important. Thankfully my parents will specified the IFA to use for advice. An addition which would have have been a big help would be to specify "The house will be sold". That avoids any conflicts of interest. Most of my inheritance is being lived in by a sibling. I thought the link at the end would be to a video about annuities which I'm sure can play a part in retirement planning. In the U.S.A. they have "deferred annuities" which sound to be a great idea but are far less common now. Finally regarding retirement ages they seem to be going backwards especially for women. My Mother retired at 55 in the mid 1980s. Her normal retirement age would have been 60. I am convinced she drew here defined benefit pensions for longer than she paid into them.
I am 58 and have that and a bit more saved and am looking to exit soon, just stepping down to 4 days a week as of start of 2025 to begin my glide path. However, two close family members (not wife) seem very concerned at the idea I could finish this side of sixty which I find a bit odd. Still might not have a choice if I get 'right sized' in the expected AI revolution! 😂
@@fruitloop3733 If you have £1M or more I would suggest retiring immediately. Ignore family members, it's your life and your decision. Every additional year of retirement is one more year of freedom. My parents both died before 80 - I'm not waiting any longer.
@@fruitloop3733 It all depends on what regular income you require from your DC pension pot. Whilst a £1M pot is considered to be a big pot, this will provide a sustainable annual drawdown of around £30K or £2.5K/m assuming an average investment portfolio growth of 3% in excess of inflation (so 6%/yr overall growth) for an equity/bond/cash mix For those used to a high employment income of say £5K/m, and who wish this to continue either a larger pension pot or additional income streams will be required.
@@JohnFord-c5l Trust me, I would love to retire, but having large sums invested also means seeing gains and losses of thousands daily! That's not great for your blood pressure, trust me!
I stopped working at 46 for medical reasons and I'm now looking to retire in April at aged 55. I am lucky that my pension fund grew quite a bit over recent years (self managed) and i moved to France for cheaper housing costs and have altered how i live to manage on less whilst still not going without. Despite the Hargreaves Lansdowne drawdown calculator telling me I'll never run out of money it is still a huge worry as i am likely to find myself on my own in later years with no one else to rely on.
You keep mentioning factoring in care costs, but never discuss options for avoiding them like a trust. Can you please do a video on these options and the benefits/risks associated with them.
Our plan is to structure retirement around the 4% concept, and in the years where investments exceed expectations, use the excess funds to experience new things. I don't view retirement as vacation, just the simplification of life. I still want the memorable events within retirement. Whether they are a weekend getaway, or a 6 month getaway. The markets can determine which one we choose.
Good idea to have a cash buffer of several years worth of cash to draw on when market returns are poor. Use the excess or high returns to build and then maintain this cash buffer and any excess over and above that can be assigned to additional one off expenditure.
Excellent advice James. I'm 66 and find spending down is incredibly challenging after a lifetime of saving. I know that I'm very unlikely to live more than another 25 years maximum so can use that as the zero point but, nevertheless, despite my logical mind knowing that fact, there is still, deep down, the completely irrational idea that I'll just carry on as I am way, way, way, beyond that! We all know we'll die but somehow don't quite believe it will happen to us
@randolphh8005 yes, I know, I'd very likely be safe working towards zero at 20 years max. In the financial sense, at least, the prospect of death is quite liberating as we can spend with abandon after a certain age.
Happy new year james. My go to guy on the TH-cam finance. Ive invested in funda for 15 years from nothing so i know you talk facts amongst alot of nonsense out there. Haopy new year buddy from south wales!
Hi James I just realised that being married to a non uk domiciled partner means I cannot pass all my estate to her inheritance tax free if I die. I’d never heard about this rule in years of learning about financial planning 😱 It would be amazing if you could do a video covering this and any other rules that are specific to mixed domicile marriages please Thanks
1. Health is definitely the most important, but: 2. Preparing for tax implications when selling assets or drawing from a pension is an absolute necessity in the UK. Do some research early. All those years saving and investing and now the government are going to rob you of a big chunk of that as well.
If you've already retired, do you have any personal insights or lessons of your own to share?
Thank you for this video James. Good advice. I retired aged 52 with my husband (aged 57) after we took a sabbatical. Sadly he died last year, 2 years after receiving his personal pension and 1 year after receiving his state pension. I am still executing his estate and although we had wills & a plan if either of us died, we did not walk through the timeline to implement the plan. I would recommend to everyone to make sure a walk through of your plan is carried out so it makes life easier for the person left behind as it is stressful.
@@lindab4214so sorry to hear of your loss, hopefully you had very good years together in your retirement. Sound advice on having a plan / road map made.
I keep saying I must generate a document detailing accounts/savings contact numbers, possible passwords etc so things can be accessed and sorted easily should I die.
Very nice and useful advice
I am happy to report that we have followed in general what you said
So the video validated us
Also we made a new year resolution to transfer financial knowledge to the spouse
Happy new year to you
@@manthravadi The alternative might be an IFA or equivalent. Based on previous occasions when more distant relatives have died, I doubt if my wife would be in a fit state to do anything.
I have been retired for five years now. Although I've been adhering to the 4% rule, things are challenging as I did not anticipate. 30% of the $600K I invested in st0cks is lost to the market. How can I diversify my portfolio for retirement
Now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
Yes true, I have been in touch with a financial advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
@@Jeffcraparo I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
My CFA, ANNETTE MARIE HOLT 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 this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
I’ve been hearing a lot about Roth IRA conversions lately, but I’m confused about whether it’s the right move for me. I’m 47, with a decent 401(k) and a modest traditional IRA. With taxes likely going up in the future, should I start converting now, or am I too late?
It's not too late! The main thing is to balance the immediate tax impact with the long-term benefits. Converting to a Roth IRA can secure today's tax rates, but you need to be cautious about moving into a higher tax bracket. Timing and planning are crucial, so consider consulting a financial advisor.
investing with the help of an advisor did the trick for me in barely 5 years. Retired with couple millions at 55. I worked hard everyday as a teacher for 22 years, and my salary was over 100k annually, enough to get me fully invested.
@@Tonyrobs2 who is your advisor?
I've stuck with SHARON ANN MENY since the pandemic, and her performance has been consistently impressive. She’s quite known in her field with over two decades of experience, simply look her up.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
In the 50's my late dad worked a modest job, mom was a housewife, and they lived a nice lifestyle including owning a home. Nowadays both I and my partner work and can barely afford to make ends meet. Luckily, I've just received an inheritance of $500,000 and concerned how best to use money. Should I pay mortgage since I’m still working, or do I invest in stocks instead for better return on investment?
Depending on your risk tolerance, you could invest some, maybe try $50k at first in a high yield income ETF. This could give you cash flow for as long as you keep the investment. personally, I like FEPI, SVOL, and NVDY.
You should do a mix of both. Seek the help of a financial advisor and a real estate broker. Use $100k to get yourself a decent rental property, may need a mortgage but keep the cost of the property low, and put the rest into stocks.
Imho, investing with the help of an advisor did the trick for me in barely 5 years. Retired with couple millions at 55. I worked hard everyday as a teacher for 22 years, and my salary was over 100k annually, enough to get me fully invested.
@@andykuzman bravo! retired in my 40s after inheriting money from a childless relative, traveled overseas and found a girl almost my age, happily married but only issue is how to grow and preserve our wealth... think your advisor can be of help?
Karen Lynne Chess is the licensed FA I use. Just google the name. You’d find necessary details to work with and set up an appointment. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
I'm glad you made this video it reminds me of my transformation from a nobody to good home, $34k monthly and a good daughter full of love
My advice to everyone is that saving is great but investment is the key to be successful imagine investing $15,000 and received $472,700.
wow this awesome I'm 47 and have been looking for ways to be successful, please how??
Making touch with financial advisors like Elizabeth Regina Nelson who can assist you restructure your portfolio, would be a very creative option. Personal financial management will be crucial to navigating the next difficult times
No doubt about Mrs Elizabeth Regina Trading services is very good, I invested $5,000 and cashed out $14,700 after 3 weeks. I still wonder how they get their analysis
Elizabeth Regina Nelson has really set the standard for others to follow, we love her here in the Uk 🇬🇧 as she has been really helpful and changed lots of life's.
Hitting the proverbial nail on the head with those James! Wishing you a very healthy and successful 2025!! I planned to retire at 55, stayed on to chase some more cash and had a heart attack!! The health thing resonates and I definitely support the LPA / Will advice.
Thank you for sharing your experience, John. I hope things have been going better for you since then!
I'm 58, from Canada, and plan to retire at 62. I've probably watched hundreds of retirement videos over the last 5 or so years. This video is one of the best I've watched. Even though you're speaking to a British audience these tips are universal. Thanks for creating this excellent video.
Mike
Possibly one of the best TH-cam videos I’ve seen. Excellent (& very wise) advice. Thank you James S.
I'm glad you found it useful!
Agree
One of the best Financial mentors on YT. Sound balanced advice across the board.
Top video James.!
Am 68,, quit @63. Biggest comment would be how surprised I was that how little my ‘living expenses’ were once I was debt free. My meagre/average pot of £300k gets me a net +£10k+/yr
The information here is very valuable and thought provoking. Thanks for taking the time to share your professioanal experience with us.
Well done - great video. My employer sent its staff at age 55 to a retirement day with a financial planner. I was surprised that it covered mostly the "soft" issues that you covered. He made the same point - This is the important stuff. One additional point that I remember was that spouses were encouraged to attend - and he asked each person in the coupe to describe their future retirement. They seldom agreed.......an important lesson on expectation
At least it isn't like Japan. A tour guide there said that it is common for Salary Men's wives to file for divorce on the first day of their retirement as they have no claim on the pension until it is in payment.
Essential viewing for everyone while they are planning for retirement. I plan to review this video regularly before and after I retire. Thanks James
Thanks James - well done for not trying to boil all that insight into a Top 3,5 or 10. If you’ve got 20, 30 or 50 lessons then I’m happy to listen to them all when they are as pertinent and well observed as these were.
This is brilliant. It covers so much. I retired a year or so ago and the identity element hit me more quite recently...I really miss being part of something greater (worked for a wonderful university). We don't have kids so that gives us other things to consider, such as later life support (favourite niece lives 12 hours flight away!). I also find that we have spent less than expected so far during retirement although everything seems more expensive...have some big trips planned but we always seem to stay with friends and family! We really are going to focus on health this year...just booked osteo today and got Zoe, plus fitness instructor for us both! Happy new year and thanks for brilliant advice!
IMHO, it is far better to spend the inheritance you intend for your kids/grandkids while you are alive and not worry about taxes, etc. Obviously, you get to experience the recipient's happiness while you are still alive, and as the book James refers to explains, the recipients get to use your gift/inheritance when they most need it.
I got my inheritance months after paying off my mortgage and buying a decent car using cash so by then didn't need the money at all.
Yes a worthy read (“Die with Zero” by Bill Perkins) but do be aware he writes from an incredible place of privilege.
Not all of us are oil and gas traders with millions in our late 30’s.
First class life advice. Puts a lot other TH-camr ‘financial influencers’ to shame and highlights how out of depth they are with the realities of life.
I certainly need to work on a couple of the points. Am glad I already have a financial plan for home care should I need it. I am using a diversified approach of rental property, private pension, tax free investments and triple lock defined benefit pension to help me retire and provide some assurance in my later years.
In preparation for my retirement, I have been watching a lot of these videos from around the globe. Yours James, is by far the highest quality and best informed. Well done! 👍
Thanks for the comment! and happy new year!
Superb and well balanced advise James. At 52 years old I’m really focussed on funding my ‘retirement’. I realised during lockdown I will always work, even just for three days a week. As you said people need purpose and human interaction. Retirement to me means having a choice in what I want to do.
Happy New Year James! Just wanted to say, hands down your TH-cam channel is probably the most helpful and brilliant resource I have when it comes to future financial planning. It's even helped myself and my wife have conversations about money we were struggling with previously. It's like having a trusted 3rd party and mentor in the room encouraging us to look at different perspectives regarding our future. You are helping so many people so thank you for all your hard work. 🙏
Aww thank you so much for the lovely comment! Happy new year to you too!
I stopped work in 2019, aged 51 and never looked back.
It took about 2-3 years to develop the structure, purpose and identity that I used to get from work. And it comes from a place that I never would have envisaged when I was working.
This really was an excellent video, and all those points have been my lived experience.
I'm glad you enjoyed it and thanks for sharing your experience.
What did you end up doing?
@@jamesnelson2279 I have 5-6 nature recovery projects in the area where I live and 3 community ones.
Last year I spent 202 days on those things, which still left 160 odd days to chill out.
I stopped working last year at 48. Still pondering the maths to ensure I don't run out. Never once have I felt the need to go back to work
Great video. I sadly experienced a lot of these lessons in 2024. My parents are in their 80's and left it all way too late and tasked me to help. Dealing with their power of attorney, moving, downsizing and deterring health has been emotionally stressful. The lesson of planning well in advance and doing things early while you are still mentally and physically able is so important. Not only for yourself but your family members and loved ones.
Really thought provoking. I’m 53 next and I’ve really began to have these ideas and discussions with my husband. The power of attorney section was very interesting as was thinking about getting older, possibly needing care and downsizing
I'm glad you found it useful!
have had experience of this with nonagenarian parents, luckily I had LPOAs both for health & money, 93 yr old Dad ended up in a care home for the last 4 months of his life, but he retired early on a DB pension over 30 years earlier, now supporting Mum in the family home, which in reality is too big but we manage. Hubby and I are retiring this year, he will be 63 on a DC pension, I will be 60 on a DB pension, and the first thing Im doing is sorting out our LPOA's to add to our wills - we havent got a lot as my DB is mainly on part time salary over 30 years (children) but we are prioritising health over wealth as getting up at 3am for the last 35 years is getting too hard for my husband - thanks James for great video... and I reiterate LPOA gave us so much more control over Dads sad demise in his final year so thanks for highlighting this
Accepting reasonable investment returns rather than chasing high returns is a great point and really resonated with me.
As you say, higher returns mean higher risk which can mean higher stress.
Retirement money is there to serve the retiree not vice versa.
Good video. One of the best I've seen on this subject. I retired at 48 and only regret not having done so earlier. The easiest and best financial planning tip to enable others to follow my example is - don't have children. They are giant black holes into which you constantly tip money. Use that cash to save and have a great life. You're welcome.
Worked for me. I’d mostly packed up the corporate BS at 45.
Brutally honest. It’s needed, well done. The bit about leaving money to your heirs/friends now rather than after you die made sense. If you’re planning to leave some money for them and you are confident of living 7 more years, why not give it over now? If not, spend it and enjoy it.
This is just a fantastic video, thank you James, and Happy New Year.
Same to you!
I run an informal retirees coffee club which seems to be growing in popularity, and without doubt the hottest topics are non financials. Yes, of course financial provision is vital but in my small sample experience, it is not the indicator of happiness we all maybe expected whilst working and looking forward to retirement. This superb video reflects my small sample and should be a reference for those looking to retire AND those already in retirement as many of the points which James raises have been left hanging. Thank you for such a brilliant video.
Power of attorney, after seeing how useful it was when my parents aged to help settle their bills and manage their lives, I really think people should give serious thought to it, my wife had POA for health and wealth.
Excellent explanations!
Almost 4 years in on Stage 2 (I think of it as Stage 3 - the first being school years, although having had jobs since I was 10, maybe my Stage 1 was too short 😂).
Be flexible, and remember to fill your time with fun stuff: as a retiree, you have the time to seek things out at off-peak or bargain times - take advantage of them 🍻
Absolutely are that you need to find a way to practice your retirement whilst still working. Keep those human connections you want, establish new ones (pickleball found us a whole new group of like-minded folk, good for health too👍)
Thanks for sharing your wise words, James 💪
Glad to see that I’ve already factored in most of these when I retire next year. Plus I plan to travel the world AND spend time at the allotment . . . I just need to find someone to do the watering and weeding while I’m away!!
That's great to here, I hope it goes well for you!
Totally agree, I think going from saver to spender is a really hard change to adapt to.
I fully expect this to be one of my biggest challenges.
I've never really been a saver so easy for me. Still managed to 'save' £900k while hardly noticing it.
A big plus point I can think of is that you don't have to worry about redundancy. Plan carefully and that can actually be a big boost for people 60+.
James, I dont know how you do it !
You seem to give advice which seems way, way above your handsome 😂 youthful looks.
But you are bang on..
I am close to pulling the trigger on retirement/short time but you were right on number 4.
After years and years of hard saving and investing, it just doesn’t seem RIGHT to start spending down on my capital. It goes against every fibre of my being to de accumulate. But I need to get my head around it and become free. Good point also about passing money on to your children earlier rather than later. 👍
The focus on health is absolutely key. My Dad passed away last year. He and Mom never had a lot of money - in retirement they had their state pensions and a very small DB pension.
They still ran out of health before they ran out of money 😢
PS great video James 👍
So as to he that, my parents did the same. Dad first and looking back his health declined over a few years especially once Parkinson’s started impacting him. Lost him at 77 but he had a good life. Mum died just a few years later and cancer took her quickly during covid. I tried hard to make sure they spent their money when retired and enjoying their retirement and not to think they needs to leave money to us kids
My parents don't have a lot of money either and I've told them they should spend it all on champagne and caviar. I want them to enjoy the money they worked so hard for.
@barbarar5869 When my Father died my Mother said her only want was for a new stair carpet. Sadly despite having enough money for a whole house she never got it as other more pressing needs like a stairlift got in the way. Regarding one of the other points I think that the neighbour who moved to a bungalow had a better idea despite her having to use pension money to do that.
Great video. I am recently retired and planned for it. I cannot express enough how important it is to try new things and plan ways to enjoy ypur time. I am loving it, but I know others that arecdreading it or struggling with it.
I hope you all had a great Christmas and are looking forward to 2025!
I did thanks James, I hope you and yours have a fantastic 2025, I look forward to your videos, my sons a financial advisor/ planner ( is there a difference?) and I’ll often discuss points you raise with him.
Best Wishes for 2025! You’ve put out some very inspirational videos. Thanks James ✊
Great info James, I’m due to retire soon and obsessing about the best pension options but I’ve always used a compass of Mental Wellbeing, Financial, Physical and relationship and built plans around these pillars. Doesn’t always work but its helped me
Great video
Great words of advise. Thanks James... I am heading towards retirement hopefully within the next 2 to 3 years... This videos and invaluable.
I'm glad to be of service, and best of luck with it!
@@dangreasley7934 Stack loads of cash and tax free assets. Cashing out is a tax nightmare.
A brilliant summary. As the song goes 'Money talks, but it can't sing and dance' Health is so important and people are too wrapped up in the money side and leaving loads for their kids and being miserable. I retired a couple of years ago at 63. Divorce has a big impact on finances. My biggest fear was 'not having enough money' but I have watched many of your videos and had 2 sets of spreadsheets trying to forecast by expenditure and pension withdrawals. They had similar trajectory and I was pleased that your (more professional) spreadsheet confirmed the general direction of mine. I've tracked my spending categories change over the last few years which allows my wife and I to agree what our plans are for the next period. As an ex Project Manager I've tried not to be too over the top in the discussions. But she still hasn't got the hang of Change Control authorisation!
Another piece of advice would not to beat yourself up about decisions you've made in the past. Whats important is to learn from those and how you move forward.
Keep up the good work and I'll keep on tweaking the spreadsheets and more importantly, my wife and I enjoying our exercises together.
Great video and seems to hit the mark on the issues around retirement James.
I reach 60 this coming August and I'm considering retiring. I live to work and focus mainly on work and therefore I’m concerned about the adjustment and finding my new sense of purpose and social connection in retirement, I’m seriously considering going part time and ease into retirement.
I have also been a saver all my life and I know drawing down on my savings will be hard and I may find it stressful trying to get the balance right between having enough money and enjoying life until I die vs not being too careful and not being the richest person in the graveyard.
I never thought about the concept of Dying with Zero, but that is appealing and has the added benefit of denying the tax man the money, as the UK Gov seems to want to penalise those who work hard and try to save or build a private pension through excessive taxation or having to pay for cost of seeing out the final year or so of life in a care home and they may even decide to means test the state pension during my retirement. The little money I have, I want it to go to my children.
Ending the year on a high with this superb video James, thank you. I think what you’re demonstrating perfectly here is that we should consider retirement holistically and not become too obsessed with any one aspect. In my opinion this is what makes great financial advice so vital, saving us from ourselves! Keep up the great work James & Happy New Year
I've watched a lot of videos on retirement but this one is one of the best, really good advice that I will be taking on board, 28 months to go
@@roadie6565 Stack loads of cash and tax free assets. Cashing out is a tax nightmare.
And I 18 months to go…😂😂😂
@@roadie6565 Drawing down your money without the government taking most of it will be your biggest challenge.
Look at ways of accumulating tax free assets ASAP.
I retired in August and enrolled in a graduate certificate TESOL program. I am working on my final subject, and really enjoying it. It has given me routine, new social connections and kept my grey matter active. If I do find I need a bit of extra income I can do a bit of tutoring (which I already find enjoyable as a volunteer).
Great content and very insightful. Most youtubers focus on the number, you shed light to all the other important aspects we need to have in mind, while planning our retirement. Also, I couldn’t agree more on the “pass the inheritance, sooner than later”
I appreciate that!
Have a happy New year! Cheers for all the vlogs throughout 2024!
Best to give money away with a warm heart rather than a cold hand!
That’s profound thank you x
That's a great line!
Retirement is for the weakest of mammals. Work until you’re not alive - even if you’re financially secure forever.
@@piggerGgwhat?? Really??
There are lots of really great insights here. #13 is important. Too many younger investors seem to think that the stock market is like an infinite money hack. The idea that you might wait twenty or even thirty years and never ever break even is unthinkable to them.
I started this and was about to click away but you captured my interest - EXCELLENT video thank you.
I'm near retirement, have no children or spouse and expect to pay 40% of savings to the govt on IHT or spend it all. So I'll be blowing it all on yachts and an expensive
holiday home in Spain.
Good for you!
Be careful. There are lots of chicks around yachts. 👻
and grab an Aston Martin or Porsche 911 along the way
Maybe get involved in a charity and do something rewarding ?
@@Spp235. Yes - my happiest retired friend spends a lot of time (and her own money) helping 2 charities. She has a great social life from it and a sense of purpose, but can still take time out whenever she needs to.
Thanks for another great video James, packed with useful insights. As someone who retired a couple of years ago I can attest to the validity of the lessons you outline. I read 'Die with Zero' a couple of years ago and have just re-read it. I strongly recommend anyone watching to get this and read it-really thought provoking in a good way. Do think about what you're going to do when you stop working and think about your new purpose. And do think about the idea of 'running down' your portfolio as you start to spend what you've built up. If you've managed your own portfolio and spent many years investing and growing it, going into reverse is harder that you might think-I speak from personal experience and Die with Zero will help.
I just turned 54 with not enough set aside for retirement and awfully late to investing with barely any portfolio except my 401k. I have always been curious about the market and have witnessed people who played the game right and retired early. I have a decent amount of cash saved up and with inflation currently soaring AGAIN, I'm getting worried about retirement, my intention is to retire before 60. How best do I maximize my savings of over $60k?
Listen to Azul, read Barrons, and ask some people you respect if they have a financial advisor they really like. what you need is the right strategy and your life is set. I'm 58 now and just started investing some time last year,,, Didn't start with much.. And I made my first 100k USD 5 months later. And today, I have a decent $250K portfolio. It's never too late,, the right investments will change your life. I should retire soon as long as things remain this good. My only regret is not starting earlier
How did you achieve that level of growth?
My CFA has been great, clearly my best one yet. I achieved this much with His management.
What you need is a CFA who can assist you in managing your portfolio while diversifying your investments
Robert Carlos Wright is my CFA. He's someone I can recommend. His expertise in market knowledge and asset management is truly top-notch. if you do your research you'll know for yourself that the old man's work ethic is off the charts. Google his full name you'll find his details on IAPD or SEC
I looked from a different perspective and got my answers,You need a CFA to manage your assets while diversifying at the same time
Can you recommend?
Another detailed and helpful video about retirement and all its implications. Your videos help me be sure I am doing things ok, as well as prompt me to do things I need to do!
That's great to hear! I'll keep it up!
Great information! There’s a lot of wisdom in this 20 minute video.
I Hit $32,590 today. Thank you for all the knowledge and nuggets you had thrown my way over the last week. i started with 5k in last week 2025.... now i just hit $32,590
How did you manage to achieve that level of growth? I've been trying everything I can to improve my investments, l want to retire in a few years and I need a better diversification
It's Charlotte Gina Miller doing, she's changed my life.
The first time we had tried, we invested €14,000 and after a week we received €50,230. That really helped us a lot to pay our bills.
I'm new at this, please how can I reach her?
I'm celebrating £32K stock portfolio today... Started this journey with £3K.... I've invested no time and also with the right terms, now I have time for my family and life ahead of me.
Hi James - great, well informed video as ever! I retired in May 2023 at the age of 61 and had the rest of the year off but then commenced some part-time work from the beginning of 2024 (on a self employed basis). This was good to keep my hand-in and also to fill some of my time as I don't have any major hobbies (apart from doing a reasonable amount of travel and going to the gym). I intend to wind the work down this year (end of March is my plan) and to stop completely - but my issue then is managing the drawdown from my investments. I have ISAs, a reasonably large SIPP and some other investments and I haven't had to draw on any of these as yet because of the part-time work I've been doing (and some cash I had). It will be difficult to get my head around a dwindling SIPP/ISA balance and that is the one thing that concerns me but I will simply have to accept this is the way it works and make sure I am drawing enough and not worry too much about it! It's good to see that I'm not the only one who has this mindset 'challenge'!!
Great advice, thanks James. I (and my OH) are still into our first year of retirement (aged 62 and 60) and have most points covered off. The points that resonated the most for me and are currently lacking is the cost of care and downsizing before it's too late! Both of these are strongly linked because th equity in my property will pay for it if needed. The biggest uncertainty for us apart from not knowing how long we will live is without doubt getting to SP age. Once we get there we relax the purse strings for sure. Great video and thanks again.
I'm glad you found it useful and congrats on retirement!
Great Video James. And I can personally vouch not having a lasting power of attorney was one of the biggest mistakes ever. People think a will is enough and it’s not. Get a LPA done for you and your family.
Thanks for confirming 👍🏻
I've always been fully onboard with the "die with zero" balance principle. The problem with inheritance is that it just keeps getting passed on or used to pay down debt, and few get to enjoy the true benefit of money: spending it.
People who spend their retirement trying to avoid paying some tax are the unhappiest.
Happy New Year, James! Thanks for the great videos.
I agree! Happy new year to you too !
James, this is a brilliant summary of how to make retirement work in every sense and not just financially, plus potential pitfalls to avoid. A great point of reference list in my view. Thanks for the time u have clearly invested in pulling this together. All the very best New Year wishes to you and all your viewers.
To you too!
James would you consider also having these as podcasts to listen on the go? Appreciate that graphs etc wouldn't translate as well but, it would be so useful
My content is very dependent on the visuals, although this one is less so. I would need to create dedicated content for a podcast and I do plan to do that at some point. There's a few other things I'm working on ahead of that though!
After reading book titled The Elite Society's Money Manifestation, I finally understood why so many people struggle with money. It reveals stuff that most people don’t even know about how money really works. Has anyone else read it?
Great vid and excellent advice as always James! I retired at the end of May this year (great time of year), spent much of the summer and Autumn at festivals and having building work done at home so that I now have my own space to play music without annoying the Mrs. Your videos have been a huge help in encouraging me to spend money now (within reason) and changing my mindset from accumulation! I stepped down as a Director from my company at the end of 2021 and had 2.5 years part time (50% fte) which gave me confidence that I would not miss work. I haven't and am looking forward to 2025 as my first year of full retirement. Thanks for all your great advice! I should say my only stress is that you may find your partner doesn't necessarily want to do the same things as you in retirement so it's important if you want to sustain your marriage to give each other lots of room to find your own path as you move into your 60s.
One of your best videos yet. Really practical and helpful lessons, thanks for sharing 🙏
Glad you enjoyed it!
Just for the record as understand, LPA’s for health and welfare only mean the DRs will listen to you. They will not necessarily ‘do what you say’. They will use their skill and judgement to do what is in the best interests of the patient. This seems like the best approach to me.
Agree with every word you say. This is such a great list, particularly the less commonly mentioned soft side of retirement. Everyone thinking about retirement should have this information - I think it covers everything important that people need to know.
A cracking start to the New Year - thank you James and Happy New Year!
Cheers and you !
as someone who retired early-ish (age 34) and was super bored, this video is spot on.
Would appreciate a video on things to consider financially when planning to leave the UK and its effects on retirement 🥴
Thumbs up!
Great video! Am going to try to die with zero now! Best thing about retiring at 60 is being busy doing things I enjoy!
James, there’s one massive contradiction in what you say - “die with zero” and “plan for care costs”. It’s impossible to reconcile those two mutually exclusive objectives. The only possible option that I can envisage is insuring against the potential care costs liability, is that even possible? HNY. Rob
I would disagree. We both retired at 63 in the USA. Long term care is way over emphasized. Most people will not need any substantial amount. The common quote of 70% is including family care. We have had no LTC in our extended family except family care. Most people die in shorter timeframes.
If you own a home, and have no debt, that solves the problem. You can’t get cash out of your home anyway while living in it(unless you have a reverse mortgage which we do).
We are planning on spending down all our money (including gifting) by the time we are 85. We have one large Social Security check that will allow the last person to be more than solvent.
We watched 4 parents live off only low SS checks. It wasn’t great but, they made it. We will have double the resources after the portfolio is gone.
I think the stats are that one third (or 1/4 as James says) will need to go into a care home, which is the costly nightmare scenario. However these are really end of life palliative care homes so people don't actually spend a long time inside even though each year is costly. If they fund this from selling their house (the final asset) there will be plenty for the care home, and some left over for inheritance. And if not, in the UK the council will have to fund once the funds run out.
@@grahambriggs8185 can’t speak to the UK, but I worked in the industry in the US and the numbers are no where near that for extended residential care. Less than 20% require more than 100 days outside of the family and the home
You are absolutely correct. That is why this is the "Hardest, nastiest problem in finance".
On the one hand, you want to be able to retire early and get the most fulfilment from your money.
But on the other, you have no idea how long you're going to live or if you're going to need to spend £100,000s on care fees.
Therefore, the only way to insure against this risk is to work longer or spend less so you have a large pool of capital to draw on in later life if you need care. But then... most people will never need to draw on it! What a waste!
As you say, insurance could be a solution and in the US they do have Long Term Care products to protect against this risk but in the UK the product offering is limited.
However, in the UK we have very expensive homes, compared with incomes. So many retirement plans accept that, if care is needed, the home will need to be sold/equity released to pay for those fees.
Although I accept that you shouldn’t need nursing rather than a simple care home you have to be aware as we live longer diseases such as dementia can lead to extended care needs. My dad passed away in 2015 after spending 2 years with mixed dementia in a care home, that destroyed any inheritance. We expected him to only be in there for six months.
Perfect summary, especially the lasting power of attorney: at 55 my only new year's resolution is to get that done very soon. After managing my father's affairs for both health and finance with his cognitive decline and recent death I feel dread when I hear of people going through the same without LPA/PoA set up, how hard must that be fore them.
Happy New Year James, you are one of the good guys.
I took VR at 51. Wasn't sure of my purpose after that until my mother and uncle both became unwell. My Focus shifted to looking after both. Sadly both deceased now. Uncle died 7 years ago today. Mother died 2023. Since she passed my Focus became sorting out her estate. Now that's mostly done, I am back to looking for a purpose again. Mum and uncle both made Wills and LPA. Made life much easier. I recommend and will now be doing mine. Hardest thing I find, switching from a saver / investor, to a spender. My brother on the other hand, no plans financially for retirement, spends everything he has and more.
superb video as usual and im only at point 4....Thank you James
IMO the best video you’ve produced yet James. Excellent advice in here!
I glad you found it useful!
Thanks, James. Yes, running out of money in retirement is the thing most worry about, but then it tends to switch to other things like health after a while. Switching to withdrawal is not easy after savings for so long and a psychological switch is needed. And the fear of investments/pensions evaporating in a poor market is very real for some. It's actually one of the reasons why I retain a healthy "cash" pot (MMF, Premium Bonds, High Interest Accounts) covering 3-4 years of expenses, so I leave the longer term assets to grow unmolested :-)
James, I would say that if you’ve worked for 30-40 years in a particular discipline don’t underestimate the value other people place on your knowledge.
That can be used as an effective means of getting onto the glide path of semi-retirement and good employers or clients will actively work with you so they still get the good stuff from you whilst you get the chance to slide into a less stressful or demanding last few years of working.
Great video by the way, should be compulsory watching for all!
I suggest everyone to read book Untold business masterclass to know how to manage and upgrade your finances..
Thanks for this - great content to start the New Year!
Re lesson 20, my Dad telling me his intentions for his will was what caused the big rift over money, but at least knowing in advance I could take steps to ensure I'm (fingers crossed) able to keep a good relationship with my brother when the time comes
If only we knew when we were going to die... would make planning a lot easier! 😀
I would appreciate a video on how to plan for care costs please, it's always been a worry but I don't really know anything about it. No children so guess my house would be sold if i didnt have enough money?
I retired at 50 and actually have more money now than ever before through good investments (Tesla is the only stock I own). I’m 61 now and my wife and I are buying a plot of land on which to build a new home and a small cottage which we’ll rent out as a holiday let…this video is making me think about how to share our wealth with our two adult children now rather than when we die, thanks James!
Word of advice. do realise that investment luck can run out and you may not have the time left to do it all over again- Have you thought about selling some TSLA and diversifying into a passive tracker to avoid the risk of a large drawdown in personnel wealth?
I'm loving my retirement so far! My wife and I worked hard to reach this point - we're both retired, debt-free, and fortunate to have over $3 million in net worth. We achieved this through a saving and investing lifestyle in the stock market, which now generates weekly income for us. And now, we get to enjoy the fruits of our labor! We're traveling, golfing, and spending quality time with the grandkids. We feel grateful to be living smart and frugal, making the most of our golden years.
Absolutely! I'm in the same boat. I just got back from a road trip across the country. It's amazing how much energy and freedom we have now. Make the most of it, because it won't last forever!
I'm a young dad and I'm really glad to hear your story - it inspires me! I'm still working, but I'm counting down the days until I can enjoy my retirement Years. Can you please share your tips? What's the key to achieving this milestone and making the most of your retirement years? Any tips would be greatly appreciated!
Building a successful retirement requires discipline and strategy. Our journey's key takeaways include starting early, living below our means, diversifying investments, creating multiple income streams, planning for taxes, prioritizing relationships, and maintaining an active and healthy lifestyle.
Additionally consult with a fiduciary advisor, who can help grow your funds, Create a personalized plan and better prepare you for a successful retirement. we are with Tracy Britt Cool Consulting a US-based fiduciary. Check online if she meets your requirements.
Building a successful retirement requires discipline and strategy. Our journey's key takeaways include starting early, living below our means, diversifying investments, creating multiple income streams, planning for taxes, prioritizing relationships, and maintaining an active and healthy lifestyle.
Additionally consult with a fiduciary advisor, who can help grow your funds, Create a personalized plan and better prepare you for a successful retirement. we are with Tracy Britt Cool Consulting a US-based fiduciary. Check online if she meets your requirements.
An increasing number of people are likely to face challenges in retirement. Low wages, rising inflation, and high rental costs make it difficult to save adequately. Now, even middle-class Americans are struggling to afford homeownership, putting their retirement plans at risk.
The surge in living costs has disrupted my plan to retire at 62, work part-time, and continue building my savings. I can't help but wonder if those who weathered the 2008 financial crisis had it easier than what I'm facing today. The volatility of the stock market, paired with a decrease in income, has raised concerns about whether I’ll have enough funds to secure a comfortable retirement.
This is exactly why I rely on a portfolio coach for my investment strategy. Their expertise-managing both long and short positions, capitalizing on asymmetric risk, and strategically hedging against market downturns-makes it incredibly difficult for them to underperform. Over the past two years, working with a portfolio coach has helped me generate over $800,000 in returns.
I agree-having an advisor manage my investments has been invaluable since my work schedule doesn't allow time for in-depth analysis. Thankfully, my portfolio has grown fivefold in just four years, reaching nearly $1 million today.
Would you mind sharing the name of your coach? I’m very interested in exploring this service.
I consistently recommend Rebecca Lynne Buie as my top choice. She is well-known for her expertise in financial markets and has an impressive track record. I highly endorse her services.
#20 is one of the most important. Thankfully my parents will specified the IFA to use for advice. An addition which would have have been a big help would be to specify "The house will be sold". That avoids any conflicts of interest. Most of my inheritance is being lived in by a sibling.
I thought the link at the end would be to a video about annuities which I'm sure can play a part in retirement planning. In the U.S.A. they have "deferred annuities" which sound to be a great idea but are far less common now.
Finally regarding retirement ages they seem to be going backwards especially for women. My Mother retired at 55 in the mid 1980s. Her normal retirement age would have been 60. I am convinced she drew here defined benefit pensions for longer than she paid into them.
£900k saved up in my SIPP, will be 58 next March, will retire at some point in the next 12 months. End of.
I am 58 and have that and a bit more saved and am looking to exit soon, just stepping down to 4 days a week as of start of 2025 to begin my glide path. However, two close family members (not wife) seem very concerned at the idea I could finish this side of sixty which I find a bit odd. Still might not have a choice if I get 'right sized' in the expected AI revolution! 😂
@@fruitloop3733 If you have £1M or more I would suggest retiring immediately. Ignore family members, it's your life and your decision. Every additional year of retirement is one more year of freedom. My parents both died before 80 - I'm not waiting any longer.
@@fruitloop3733
It all depends on what regular income you require from your DC pension pot.
Whilst a £1M pot is considered to be a big pot, this will provide a sustainable annual drawdown of around £30K or £2.5K/m assuming an average investment portfolio growth of 3% in excess of inflation (so 6%/yr overall growth) for an equity/bond/cash mix
For those used to a high employment income of say £5K/m, and who wish this to continue either a larger pension pot or additional income streams will be required.
I would retire now mate..f*** 12 more months..your money will still be growing..if I was fortunate enough to be in your situation..
@@JohnFord-c5l Trust me, I would love to retire, but having large sums invested also means seeing gains and losses of thousands daily! That's not great for your blood pressure, trust me!
I stopped working at 46 for medical reasons and I'm now looking to retire in April at aged 55. I am lucky that my pension fund grew quite a bit over recent years (self managed) and i moved to France for cheaper housing costs and have altered how i live to manage on less whilst still not going without. Despite the Hargreaves Lansdowne drawdown calculator telling me I'll never run out of money it is still a huge worry as i am likely to find myself on my own in later years with no one else to rely on.
You keep mentioning factoring in care costs, but never discuss options for avoiding them like a trust. Can you please do a video on these options and the benefits/risks associated with them.
Be healthy.
Thank you James
Excellent as usual, thank you James.
All makes perfect sense, thanks for your information, very current, Happy New Year to you,have good un'
Our plan is to structure retirement around the 4% concept, and in the years where investments exceed expectations, use the excess funds to experience new things. I don't view retirement as vacation, just the simplification of life. I still want the memorable events within retirement. Whether they are a weekend getaway, or a 6 month getaway. The markets can determine which one we choose.
Good idea to have a cash buffer of several years worth of cash to draw on when market returns are poor.
Use the excess or high returns to build and then maintain this cash buffer and any excess over and above that can be assigned to additional one off expenditure.
Excellent advice James. I'm 66 and find spending down is incredibly challenging after a lifetime of saving. I know that I'm very unlikely to live more than another 25 years maximum so can use that as the zero point but, nevertheless, despite my logical mind knowing that fact, there is still, deep down, the completely irrational idea that I'll just carry on as I am way, way, way, beyond that! We all know we'll die but somehow don't quite believe it will happen to us
Living to 91 puts you in the minority! Spending money at that age is even less likely to be significant.(other than LTC)
@randolphh8005 yes, I know, I'd very likely be safe working towards zero at 20 years max. In the financial sense, at least, the prospect of death is quite liberating as we can spend with abandon after a certain age.
Some good advice, my only question would be who can build £1500 a week care home costs into their retirement plan.
thanks for the videos, it's always insightful!
Lesson #10 - I describe this as "test driving the future"
Happy new year james. My go to guy on the TH-cam finance. Ive invested in funda for 15 years from nothing so i know you talk facts amongst alot of nonsense out there. Haopy new year buddy from south wales!
Funds*
Hi James
I just realised that being married to a non uk domiciled partner means I cannot pass all my estate to her inheritance tax free if I die. I’d never heard about this rule in years of learning about financial planning 😱
It would be amazing if you could do a video covering this and any other rules that are specific to mixed domicile marriages please
Thanks
1. Health is definitely the most important, but:
2. Preparing for tax implications when selling assets or drawing from a pension is an absolute necessity in the UK.
Do some research early. All those years saving and investing and now the government are going to rob you of a big chunk of that as well.