Another compelling sign that you're “good to go” with retiring is if you are both financially literate and financially savvy regardless of your stated income. Because with such an arsenal at your disposal, you'll undoubtedly have the ability to leverage your resources (e.g, accumulate equity, maximum usage of cash on hand as well as sensible applicability of day-to-day money management. From an average layman's perspective (like myself-homeowner w/ pension &SS only)), how could one not thrive in retirement?
We are working blue collar l, lower middle class. We have just enough and never seem to really get ahead. Your channel has come to be my go to as we prepare for retirement. Thank you so much.
Your Medicare premiums are based on your income 2 years prior to starting Medicare. Once you've been on Medicare for 2 years, you can have them re-run the figures to lower your premiums. Love your show. :) ang
Yes, thank you for the reminder. I had a bump in the last 2 years of work (severance pay, etc) which increased my income, resulting in a higher Medicare premium... so I'm looking forward to having them lowered soon. Thanks again.
@@martywilliard I found a table somewhere on the internet that shows how much you will pay depending on what you made 2 years before. I was just interested in how much the basic was going to cost. I've been all over the internet checking out retirement stuff. I want to know all I can before I take the plunge. LOL
Be careful before you pull the plug. Once you are sure you can swing it, work another year or two just for peace of mind. If you listen to Susie, you’ll never make it to $5 million in savings. Best wishes and may you find inner peace.
I believe too much is made of being wealthy to be able to retire. Obviously, having a fortune would be wonderful. However, there is a lot to be said for being a mindful and frugal Prepper. Living simply has 'saved my bacon' on several occasions especially during two major medical events. Though I live on Social Security, plus a small pension, by being careful, I manage, though not always easily. Time is far more valuable than money. Time cannot be replaced. I would also say that it is true that two can live as cheaply as one. Very true when it comes to utilites, and housing, and in many other ways. And, if one has a decent relationship, there is a companion to bounce ideas off back and forth. Though it is easy to adjust to living alone, once in a while it would be good to have someone to discuss major decisions with, especially if they need to be made in haste, and family or friends are not always available.
This is brilliant Ronnie, though it's very sad that many people need to hear it, as they're unable to think & work it out for themselves. I realised all this in my early 20's & have since enjoyed a debt free life for the past 20years. Quite simply the only debt I have ever had was a mortgage & that got paid off extremely quick by me prioritising paying it off.
I've watched a lot of encouraging videos about retiring on a modest income and this is probably the most encouraging. My husband, who is 70 and therefore not retiring early, will be retiring sometime this coming January. We have some investments but nowhere close to a million dollars. We fit all the criteria you give here and I think/know we'll be fine.
Thank you. Retiring on a modest income is very possible. Less than 5% of Americans retire with $1M cash and less than 10% of Americans retire with $1M in total assests... so the other 90% are figuring it out somehow. Being mortgage free was a game changer for me. Thanks again.
I was fine when I first retired (62), but then this inflation backed me into a corner(66). So, I had to reorganize my portfolio such that 60% is providing monthly dividends. The remaining 40% is invested in long term growth. The monthly dividends increased my income 38%. Now, I actually have too much income and I need to either reinvest or spend more. My portfolio continues to grow and hopefully, I shouldn't need to take principal until RMD age 73.
Great points and spot on. A very down to earth video. I will add something that seems to get missed in most videos similar to this one. As this video, almost all refer to the married couple. The retiree that is single get missed. And even more so the single person with no children in life which is becoming the trend. From experience it is significantly less costly to be single at retirement as long as the points in this video are followed. So much so that some that live in low cost of living areas that are 65 plus that have a high SS payout can live very comfortably without multiple income layers. Other factors must exist. But, this fact is real if the stars line up.
Very true & accurate. In fact, I've done a video about living on SS alone; that it's very doable, especially if one lives in low cost area. Thanks for commenting; your thoughts are insightful.
How lucky I am live in Sweden. Wouldn't be able to afford the health insurance that you have in the US ,would be more than half my income. 😮 Thanks for your videos.😊
Health care costs in the U.S. are outrageous. While the care itself is generally good, the costs are out of reach for so many people. Another reason to prioritize ones health/fitness & nutrition. Thanks for commenting.
This may not be what some consider early retirement. I retired at age 63 1/2 with 18 months of coverage from my employer COBRA benefits. Then Medicare and a supplement insurance policy at 65. Used the time before retirement to get debt free.
This was a great video. 52, and I've been working for over 43 years. I live a very simple life and don't enjoy costly endeavors, which is why I build wealth faster than my siblings. I think multiple income sources (a part-time endeavor like a YT channel, SS) and ACA might be my focus areas next. 13 years to have healthcare coverage is huge. So ACA may be an option if push comes to shove. Thanks for the info!
I am 60 and will turn 61 in February 4 months from now in 2025. I get a pension and soon survivors benefits, and work. I have a mortgage that will be paid off in 10 years and $60,000 dollars in debt. I don’t have a savings or investments accounts. I’m thinking of selling my home within the next year, rent and pay off my debts, then retire from working and live a debt free life. Or I can continue to work, pay off the debts for the next 3 years, then retire and live debt free. Or finally, continue to work and pay off debts and home for the next 10 years, then completely be debt free at 70. The problem I’m having in deciding is, It’s overwhelming keeping the large home up due to it being just me. And I don’t know if renting should be an option. Plus, I want to be closer to my adult kids who lives in another part of the country and wants me to move in at age 70. But, I don’t know which option is the wiser. This video is helping me in taking a step in deciding.
Yes, it's complicated trying to navigate through these retirement issies. Just consider all your options and choose which is best for you. Trust your intincts. We're debt free, and it's a game changer. Also remember, all considerations are not financial. Our health is should be considered too. It diminishes as we grow older. Thanks for commenting.
Yes, you are so right. Waking up suddenly out of my sleep this morning at 3 AM I decided to go on TH-cam and your video came up which interested me. When I clicked and listened, I felt you were speaking directly to me, so I really appreciate your intake and sharing your videos. Thanks again.
I discovered that I am better off without any of the Advantage Plans which are nolonger accepted by all hospitals. Most larger towns have an office run by one's State Insurance Commissioner, and run by volunteers who are trained to offer free advice, which you may find helpful. Just a thought.
Wouldn't it have been better for you to retire sooner and eliminate that outrageously expensive medical insurance through your employer and instead get one of the other (subsidized?) policies (like your wife)?
If early retirement (for me alone) was the only goal, perhaps. All things considered, no. i.e., We both worked at the same place and were both compelled to retire at the same time. By working those extra 3-4 years we both earned income which easily outpaced the annual insurance premiums, and it quickly piled up in our retirement accounts. Furthermore, since we are mortgage free & 100% debt free, we were able to bank virtually all those extra years of earnings... and those earnings were almost 6x more than the insurance premiums over the same period. Mathematically it made good $ense. PS - Our unique situation underscore the point that everyone's financial/retirement situation is unique, and it's not always easy figuring out a custom plan. Thanks for asking. Hope this helps.
You're probably better off financially than you think you are. (An outline can be found in the description box above).
Another compelling sign that you're “good to go” with retiring is if you are both financially literate and financially savvy regardless of your stated income. Because with such an arsenal at your disposal, you'll undoubtedly have the ability to leverage your resources (e.g, accumulate equity, maximum usage of cash on hand as well as sensible applicability of day-to-day money management. From an average layman's perspective (like myself-homeowner w/ pension &SS only)), how could one not thrive in retirement?
We are working blue collar l, lower middle class. We have just enough and never seem to really get ahead. Your channel has come to be my go to as we prepare for retirement. Thank you so much.
And thank you for such kind words.
Your Medicare premiums are based on your income 2 years prior to starting Medicare. Once you've been on Medicare for 2 years, you can have them re-run the figures to lower your premiums. Love your show. :) ang
Yes, thank you for the reminder. I had a bump in the last 2 years of work (severance pay, etc) which increased my income, resulting in a higher Medicare premium... so I'm looking forward to having them lowered soon. Thanks again.
Cool! Didn’t know that !
@@martywilliard I found a table somewhere on the internet that shows how much you will pay depending on what you made 2 years before. I was just interested in how much the basic was going to cost. I've been all over the internet checking out retirement stuff. I want to know all I can before I take the plunge. LOL
@@angelaland4759 thank you. I’ll look!
Could you share where you found this table? Thanks
Another fantastic retirement video from this channel! Thanks!
Key is limiting fixed costs, stop paying for crap. 😊
What are some examples of fixed costs?
Be careful before you pull the plug. Once you are sure you can swing it, work another year or two just for peace of mind. If you listen to Susie, you’ll never make it to $5 million in savings. Best wishes and may you find inner peace.
I believe too much is made of being wealthy to be able to retire. Obviously, having a fortune would be wonderful. However, there is a lot to be said for being a mindful and frugal Prepper. Living simply has 'saved my bacon' on several occasions especially during two major medical events. Though I live on Social Security, plus a small pension, by being careful, I manage, though not always easily. Time is far more valuable than money. Time cannot be replaced. I would also say that it is true that two can live as cheaply as one. Very true when it comes to utilites, and housing, and in many other ways. And, if one has a decent relationship, there is a companion to bounce ideas off back and forth. Though it is easy to adjust to living alone, once in a while it would be good to have someone to discuss major decisions with, especially if they need to be made in haste, and family or friends are not always available.
Thank you for such an insightful comment & thoughts. And yes, being a mindful & frugal prepper has save my bacon a few times too! Thanks again.
Great channel. I subscribed a few months ago and I feel better already
That was reassuring for me. Thanks, retiring in the middle of next year.
Yes, retiring is doable on a modest income. Thanks for commenting.
This is brilliant Ronnie, though it's very sad that many people need to hear it, as they're unable to think & work it out for themselves.
I realised all this in my early 20's & have since enjoyed a debt free life for the past 20years. Quite simply the only debt I have ever had was a mortgage & that got paid off extremely quick by me prioritising paying it off.
Being mortgage free is a game changer. Thanks for commenting.
I paid off 4 mortgages in 15 years and finally retired this year at 57
Pension, 401k, Roth, house paid for, emergency fund, va healthcare, old car i am good
Yep, you are. Congrats!
I've watched a lot of encouraging videos about retiring on a modest income and this is probably the most encouraging. My husband, who is 70 and therefore not retiring early, will be retiring sometime this coming January. We have some investments but nowhere close to a million dollars. We fit all the criteria you give here and I think/know we'll be fine.
Thank you. Retiring on a modest income is very possible. Less than 5% of Americans retire with $1M cash and less than 10% of Americans retire with $1M in total assests... so the other 90% are figuring it out somehow. Being mortgage free was a game changer for me. Thanks again.
Gold wisdom and wise! Watching you from CA. 😊
Well said Buddy !!
Great Info! Nice tone!
Great video! New subscriber
I was fine when I first retired (62), but then this inflation backed me into a corner(66). So, I had to reorganize my portfolio such that 60% is providing monthly dividends. The remaining 40% is invested in long term growth. The monthly dividends increased my income 38%. Now, I actually have too much income and I need to either reinvest or spend more. My portfolio continues to grow and hopefully, I shouldn't need to take principal until RMD age 73.
Sounds like a great plan. Mine is similar.
Lucky you! I also prepared financially, but life happened, not always in expected ways. I will leave it at that!
I want to be like you when I grow up. (Said with starstruck eyes. Lol)
Good perspective. Thx
Thanks Ronnie!
I can’t retire because I don’t have enough guitars.
I was a lot more confident in my plan before prices doubled.
Hi Ronnie! Thanks for another great video!
Great points and spot on. A very down to earth video. I will add something that seems to get missed in most videos similar to this one. As this video, almost all refer to the married couple. The retiree that is single get missed. And even more so the single person with no children in life which is becoming the trend. From experience it is significantly less costly to be single at retirement as long as the points in this video are followed. So much so that some that live in low cost of living areas that are 65 plus that have a high SS payout can live very comfortably without multiple income layers. Other factors must exist. But, this fact is real if the stars line up.
Very true & accurate. In fact, I've done a video about living on SS alone; that it's very doable, especially if one lives in low cost area. Thanks for commenting; your thoughts are insightful.
How lucky I am live in Sweden. Wouldn't be able to afford the health insurance that you have in the US ,would be more than half my income. 😮 Thanks for your videos.😊
Health care costs in the U.S. are outrageous. While the care itself is generally good, the costs are out of reach for so many people. Another reason to prioritize ones health/fitness & nutrition. Thanks for commenting.
Yes unfortunately the USA chooses to spend money more on the military and on foreign aid to disloyal supposed allies than on its citizens.
This may not be what some consider early retirement. I retired at age 63 1/2 with 18 months of coverage from my employer COBRA benefits. Then Medicare and a supplement insurance policy at 65. Used the time before retirement to get debt free.
Sounds like an excellent plan. Well done. We're debt free too. It's a game changer.
I guess your concept of retirement is very different from that Suze’s. Please give some examples of your comfort of retiring with less than 1 million.
This was a great video. 52, and I've been working for over 43 years. I live a very simple life and don't enjoy costly endeavors, which is why I build wealth faster than my siblings. I think multiple income sources (a part-time endeavor like a YT channel, SS) and ACA might be my focus areas next. 13 years to have healthcare coverage is huge. So ACA may be an option if push comes to shove. Thanks for the info!
You're welcome, and thanks for commenting.
Based! Great video. Question What is “low draw down” rate - less than 3% ?
Generally speaking, I would say yes (less than 3%). However, each person has a unique situation that influences the the exact amount.
please write a book ,we will support you and purchase your book.
old school las Vegas crew.
og
Vinnie
frank Santini
I am 60 and will turn 61 in February 4 months from now in 2025. I get a pension and soon survivors benefits, and work. I have a mortgage that will be paid off in 10 years and $60,000 dollars in debt. I don’t have a savings or investments accounts. I’m thinking of selling my home within the next year, rent and pay off my debts, then retire from working and live a debt free life. Or I can continue to work, pay off the debts for the next 3 years, then retire and live debt free. Or finally, continue to work and pay off debts and home for the next 10 years, then completely be debt free at 70. The problem I’m having in deciding is, It’s overwhelming keeping the large home up due to it being just me. And I don’t know if renting should be an option. Plus, I want to be closer to my adult kids who lives in another part of the country and wants me to move in at age 70. But, I don’t know which option is the wiser. This video is helping me in taking a step in deciding.
Yes, it's complicated trying to navigate through these retirement issies. Just consider all your options and choose which is best for you. Trust your intincts. We're debt free, and it's a game changer. Also remember, all considerations are not financial. Our health is should be considered too. It diminishes as we grow older. Thanks for commenting.
Yes, you are so right. Waking up suddenly out of my sleep this morning at 3 AM I decided to go on TH-cam and your video came up which interested me. When I clicked and listened, I felt you were speaking directly to me, so I really appreciate your intake and sharing your videos. Thanks again.
Yep health insurance is a roadblock
I didn't need a million to retire at 47 years old. Military health insurance TRICARE for life is great, plus VA health care.
There you go. Thanks for commenting.
Great video! I'm good on all but #4. Still trying to figure out the best option for health insurance for me.
Yes, health insurance is really a challenge. Thanks for commenting.
I discovered that I am better off without any of the Advantage Plans which are nolonger accepted by all hospitals. Most larger towns have an office run by one's State Insurance Commissioner, and run by volunteers who are trained to offer free advice, which you may find helpful. Just a thought.
I've been on the ACA for about 2 yrs. Seems like a reasonable choice.
That’s my issue. I can’t figure out healthcare to retire early.
Health insurance is a real challenge. Thanks for commenting.
Your “withdrawal”rate should be 0. Your portfolio should provide sufficient income to cover your expenses.
At 70 you are required to take withdrawals.
@@JBS1987 True but you can reinvest. Your portfolio yield should be sufficient to cover your expenses
@@evansviller , I agree
Wouldn't it have been better for you to retire sooner and eliminate that outrageously expensive medical insurance through your employer and instead get one of the other (subsidized?) policies (like your wife)?
If early retirement (for me alone) was the only goal, perhaps. All things considered, no. i.e., We both worked at the same place and were both compelled to retire at the same time. By working those extra 3-4 years we both earned income which easily outpaced the annual insurance premiums, and it quickly piled up in our retirement accounts. Furthermore, since we are mortgage free & 100% debt free, we were able to bank virtually all those extra years of earnings... and those earnings were almost 6x more than the insurance premiums over the same period. Mathematically it made good $ense. PS - Our unique situation underscore the point that everyone's financial/retirement situation is unique, and it's not always easy figuring out a custom plan. Thanks for asking. Hope this helps.