Are You Saving TOO MUCH? (Retirement Case Study)
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- เผยแพร่เมื่อ 19 ม.ค. 2024
- Most of the time we think about the traditional retirement risks of running out of money or bad investment decisions, but there is another risk that I have been seeing more and more...
The risk of saving TOO MUCH.
"What?? I thought I should save as much as I can?!"
While saving is not a bad thing, you have to measure that against what you are giving up to achieve those savings.
In this case study, we found that the risk wasn't running out of money. The biggest risk was never enjoying the money they did have.
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#retirement #howmuchtoretire #retirementplanning #rothira #rothconversion #investing #401k #socialsecurity
Thank you, Jacob! You have a knack for explaining complexity simply.🎯
Thanks, David!
@@RetirementAnswers My pleasure, indeed, Jacob.🔥
The real point of this video is that compound interest is huge. The sooner you start the better.
You got it! Time is the most important component.
Too much? Bless others. Generational wealth is never enough
If you need a military case study for your social media, I'd love your feedback.
Jacob. This is a very good video. It’s not focused on accumulating money to pass on but having a reasonable safety net. It balances life, lets them enjoy pre and post funds while they are still healthy. Agree taxes should be looked at. Not sure they are “losing” money but I get your point. Well covered video!!! Will be passing this to others.
Thank you for this feedback! Glad it was helpful.
Well done. Very logical and understandable.
Thank you!
Definitely not our situation! We are behind.😢
Keep going! You got this!
😊 Great video . Insightful.
This couple may be me . I know I'm fungal but like this couple sound like me --fear of running out of money. 😮
Keep up the good work Jacob to help us retiree learn and give hope and clarity too 😅
Thanks, Kim! I hope you are doing well.
If they want to go on 3 month cruises they better have more than $20K a year budgeted for travel! 😃
They don’t have to spend the $20k every year. They can save it for those future large expense years. The point is, they have flexibility to do what they want.
Great presentation!
I recognize that blue and yellow book on your shelf! Ed Slott. I’m currently reading it and am really enjoying it! Are you one of his 1% advisors he’s trained?
Thank you! I’m not “officially” trained by him, but I enjoy reading his work and learning from him.
Great video Jacob! Can you do a video on portfolio construction?
Thanks! I’ll see what I can do.
Would you recommend they only put retirement savings into Roth accounts since most of their portfolio is in pre tax accounts? Also, doing Roth any conversions?
I didn’t get into the taxes on this case study, but it would depend. The benefits of a Roth are directly tied to how long the money can be invested. Given they are in the later stages of their career, maybe it wouldn’t be as beneficial? Also, lowering their income taxes each year while still working might be most important to them. Roth conversions are likely going to be important in the future depending on how much they spend in retirement.
Great question!!
My husband and I (both retired and turning 65 this year) have come to realize we should have started contributing to our Roth sooner. Also, we have an only child who is already successful. If something were to happen to us, the 10 year depletion rule would cause the child to lose much of the traditional IRA portion to taxes. We plan to do some Roth conversions over the next few years to try to lower the tax burden on us and our child.
Question do they have Traditional IRAs/401ks or Roth IRAs/401ks?
Almost all Traditional
That is a nice tool! I want!
Thanks!
The part that throws me off in some of these case studies is the men maxing out their accounts and the women doing much less. For example, he’s doing $30K, she’s doing $9500, and they are putting $30K in a joint account. They could just put $21K of that joint amount into her retirement. Would be interesting to get some context around their decision making. Maybe she got started late cause she was raising the kids, but without that context it’s giving “his account matters more cause he’s a man” which is dumb.
I understand your point for sure. I just use real life scenarios. I can’t change the facts of where their money is or how they saved.
@@RetirementAnswers that’s true!
She'll either spend his savings, or divorce him and take half. His money is theirs, hers is hers.
So this couple is going from $245K a year to an expense of $5K a month? That’s laughable. The 64 yo may have a medical expense of $20K a year. This is why I question financial advisors.
Eh, income ≠ spending. They can make as much as they want and only spend $5k/month, right?