How to Retire Luxuriously with $1,000,000 (This Will Change Your Life)
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- เผยแพร่เมื่อ 26 มิ.ย. 2021
- How to Retire Luxuriously with $1,000,000
$1,000,000 isn't nearly as much as it used to be due to inflation but how can you optimize your income and spending so that you can stretch that money? If you make wise decisions, you'd be surprised how far that amount of money will actually go. By being strategic with your spending, you could easily reduce some of the major draws on your income. Furthermore, optimizing your investments could allow you to earn, two times, three times or even more as much annual income. Find out how you can live the millionaire lifestyle throughout your retirement.
You absolutely have to retire with no debt. No credit cards, mortgage, vehicle payments or anything.
Definitely a good idea 👍
Just rent till you can cash buy home with your investment.
Simple solution, move to countries with cheaper cost of living.
Not that simple but most but in principle yea
This is one of the most succinct, accurate, informative retirement presentations I have seen. And really appreciate your advice on healthcare really great - get and stay healthy. I look forward to seeing more of your videos, Chris.
Thank you, Paula 🙏😊
Killing it bro! Love this!
Property taxes are one of the biggest reasons I moved from NJ to FL. I like how you pointed out living a healthier lifestyle to reduce healthcare costs. Excellent video as usual Chris 👏👍
I think NJ is one of the highest property tax states? Thanks for watching, Rob 🙏
Hope you don't go to FL and vote Democrat as if Dems take over FL, taxes will be just as high as NJ. Anywhere Democrats have control, taxes and cost of living is the highest. Just saying.
I am 42 years. living in California I'm hoping to retire at 50 if things keep going well for me. Bought my first house last month and I can't be more proud than I am right now. I am so glad I made good decisions about my finances that changed me forever.
I'm a single mother too, got divorced 2 years ago from a toxic marriage and it's really not been that bad for me. Am trying to put my finances in shape.Every month I invest 50% of my income in crypt0-currencies and stocks, I really thank God for passive income.
@@juliedeborah2651
🤣🤣
You lost me with the *"investing"* AND *"crypto".*
I'm pretty sure that's actually called _GAMBLING._
☀️☀️
Bringing points I don't hear elsewhere, good job keep it up made me reconsider some things!
Thanks for watching!
Great video man! Can’t wait until I hit that 1 million mark! 🔥
Thanks Steven! 😁
I see the attraction to and value in real estate, but landlord life can be enormously stressful. There are many terrible tenants out there. There are also many laws on the books that favor tenant rights over landlord rights. People who go into real estate for passive income should go into it with their eyes open.
There are many things to consider for sure!
You are correct. It is hell and costly if you get the wrong tenants in.
$1 million today will be $1.8 million in 20 years with inflation of 3%. Longer you have to retirement need to save for larger amount due to inflation. Regarding real estate investment, remember 3 things: location, location, and location!
An investment should double in value every 7-8 years as long as you don't touch it and it earns 10%.
I know this might be a little bit of a different video for you but can you make a video talking about the potential inflation we might see do to printing all this money and what your thoughts on it are?
I thought about it but I don't want it to become political 😁
Nice video. You make the basic steps to financial independence simple and straightforward. As a longtime saver, I have taken many of the steps you propose. As I have aged, I have gone through three financial advisors with each stage of life. I really appreciated your comment on taking your investments seriously. Most financial advisors have hidden fees that can cost your investments multiple thousands over the years. Recommend a fee only advisor that openly discloses all costs in an invoice format.
Thanks for watching 🙏
The minute you start renting is the minute you stop living luxuriously. Renting is a nightmare. If you don't need to work, you can move anywhere. So find a place that's desirable, has low housing prices and low property taxes. Buy a $200-300,000 house in cash. Some areas have great homes in great areas for this much. Invest the rest and live off the returns. If you have no house or car payment, your bills should be low. So you could easily live on $40K plus any social security income if you've retired. And pull money out for necessities or fun purchases as need be. No reason to keep $700K+ locked up forever.
Note that if your retirement savings are tax-deferred, then part of that 4% will need to be saved for the income tax that will become due the next April. $1M may be more than the net worth of most retirees, but it will not support a retirement that includes any luxury, and much less so with our current inflation rate. My bare minimum is $2M, which is nearly achieved, but I may work until we have $3M.
I don't think many financial videos of this type would do well telling folks they need $2-3M, rather than $1M. I agree with you entirely though, we're in the same boat, and don't feel like we can retire comfortably today, even without debt and living a modest lifestyle. Three to four decades of retirement life to subsidize with inflation, unforeseen costs, and end of life health expenses, and folks think $1M is enough?! Uhm, I think I'll keep saving...
$1 million today is worth 70% less in 30 years
Keep that in mind when setting your retirement targets.
I could live on $1 million today.
So I'm targeting $3.5 million in 30 years.
Got LOTS of money to save and invest to get there.
Anyone holding bonds should sell them all now before interest rates increase. They are no safer than an index fund or rental real estate.
Thats why I only invest in bond index funds.
Does the Trinity Rule factor federal and state taxes into the 4% withdrawal rule?
No
Great video amazing content and your channel is something that I can learn so much about investing. Please I hope you don’t forget about my request about the video of Geraldine Weiss is a great story that I don’t see in youtube that people talk. Many don’t know about her and many are missing her way of investing and many can learn about dividends in a deep way thanks again
Thank you Luis 🙏 I will do that video if I can find more information on her
Yeah no can do in California even with zero debt, mortgage or car payments. I mean sure, if you are 75 with zero encumbrances, you and your wife can BARELY survive through 90 with 1,000,000. But I can imagine this in other states, sure. It's a great video in any case, like your content.
1. No one cares about California
2. House hacking is still a valid option
Graham Stephen was house hacking in California. Eliminating or reducing housing costs really makes a difference. However, I'm not sure if the market is conducive at the moment. Thank you for the feedback, Mike.
@@jasonsanders8623 Actually I not only agree with 1., I think more people should think this way. My own state has betrayed its tax payers so badly, it should be shuffled off into irrelevance at this point.
Great video man, I currently make $17/mo from dividends. I can’t wait to see how much I’ll make when I get to $1,000,000.
I'm already there. I get about $9000/year from dividends.
@@RK831 how much do you have invested?
@@jonthecharismagod6996 Dividends are the way to go due to taxes in the united states. Most people don't factor or explain that if you are married you pay no taxes on up to 80k per year of dividend income if it is your only income. Also, this is before you factor the standard deduction. My wife and I have 1.13 Million in taxable brokerage we have built up to retire early. It currently yields (2% Dividend Yield) $22,000 a year. So we are still quite a long ways off the goal. We still have more than 20 years till we can access our 401k funs which are not currently factored in this income. Showing the dividend income and reinvesting buying more and more forward dividend income is my passion.
@@DividendDogo With regard to not paying tax on up to 80k: generally speaking, not true on dividends from high yield assets like REITs, MLPs, foreign bonds, etc. These are taxed at ordinary income tax rates. You are talking about long term capital gains tax rates of 0% on first 80k for married couples filing jointly. That applies to qualified dividends typically from US corporations.
@@slomo4672 Correct it applies to qualified dividend income. Which is why you try to hold MLPs, and non-qualified things via a Roth account if you want to hold them at all. But for 2021, standard deduction is $12,550 for singles and $25,100 for married couples. So if your non-qualified dividend income isn't above 25k for a married couple it still won't matter. So either way you just make sure you are not over that 25k for non-qualified dividends and such.
If you want the worst part time job you’ve ever had in your life, become a landlord and spend your retirement chasing late rent, fixing leaky faucets, touching-up trim and fascia that needs painting, etc…..😱
Or hire someone to do it for you
@@ChrisInvests - Although unless you have enough scale that’s usually the difference between a decent profit or simply having a poor-paying side gig.
Gas price is high, tax twice as high.
What if your 37 and no mortgage anymore and 1 million could the age work still? With that money
I would recommend researching the 4% withdrawal rule to get a good understanding of if that method will work for you
The 4% rule is way too conservative. If you are making 10% and inflation is 2%, you could withdraw 8% on average and never touch the $1,000,000.
The Trinity Study isn't that simple. It takes into account many market scenarios.
As Chris said the trinity study shows that over the course of 30 years using 4% you have like a 99.9something percent chance of not running out of money or something like that.
So I’m just going to safely assume you have never heard of “sequence of return risk “ and that you have absolutely no clue what you are talking about. Wow 😳
I definitely plan on doing a reverse mortgage.
From what I understand you would do better financially selling your home and putting that money in blue chip dividend stocks. The banks do funny things with your equity, take more then what you would think and you will lose out on alot.
@@cheynebest7028 If i sold my home then where would i live?
You would rent a house or whatever you would want. Just a 5% return would usually result in enough to pay your rent and anything above that would be fun money. 5% is not hard to obtain.
@@cheynebest7028 Okay, So why on earth would i leave my house and rent? If i did a reverse mortgage then i would get a check from the government and stay in my house until i die. Then give my house to the government after i pass. Thats the whole point of a reverse mortgage.
You would miss out on alot of cash forfeiting to the banks/government.
For single people who own their home, would you recommend a reverse mortgage as a decent option?
If you don’t have a healthy retirement savings (like the million dollar portfolio) and your SSI is not high, often times the only option is reverse mortgage to supplement expenses. However, it depends on location. If your property is not appreciating, it would be hard to find a lender willing to loan you money. In high appreciation location, your chance is better. Be very clear about the terms because many reverse mortgage lenders are predatory.
I'd rather sell and rent than get a reverse mortgage
@@ChrisInvests I agree with Chris. Reverse mortgages are essentially loans. You are far better off either downsizing or selling and renting.
Being a landlord is a lot of work.
@@kennethwers Yes and it makes you wealthy. Get to work. 🙂
I had paid off my home in NJ, but my property taxes were $12k.....that and income taxes is why I moved to Florida
Hopefully you like florida politics?
@@jasonsanders8623 You mean like being free?
@@BloodySoup74 and a reasonable cost of living. I don't know why but people have a tendency to flee areas with bad politics only to bring them with them. How stupid is that?
I live a luxurious lifestyle without $1000000 through credit cards.
🤔
Word up?
With inflation or a crash u r screwed
Not necessarily. The stock market typically rises with inflation and crashes present opportunities.
@@ChrisInvests yes but when it crash u better have the $$$ to dump in to it
But of your income is from that then u r fucked bc now it's value is way less
The fire that retire in 2007 they where shitting there pants a little bit
thats why you have an emergency fund and try not to withdraw when the market crashes, id get a part time job in that scenario and have an emergency fund of a year expenses as a rule of thumb.
@@bradturner7678 So you need a $1000000 share portfolio to withdraw 4% a year, PLUS an emergency fund, PLUS extra opportunity fund to take advantage of market corrections? How much money do you need all together?
So how do you retire luxuriously on a $1,000,000?
You'll have to watch the video