I'm 59 and turning 60 soon. I got laid off with a bunch of other people at my firm. I was a little down (for about a day) because I was one of those people who did the right thing over the last 30 years. I'm now retired and love it. I say that because over those 30 years I was a personal finance junkie and listened to all my mentors (John Bogle, Warren Buffett, David Bach, sometimes Dave Ramsey) "use your job to finance your retirement goal"
Having a great savings and more streams to earn makes life goal’s easier but our way of life needs better alternative, at the same time, people also need to be more responsible. I know for a fact that there's a lot of people that simply don't make enough, I make roughly hundred plus a year and in California, rent inflation alone eat up almost all of what I make, with dependents and other obligations included, it's easy to end up with zero. however it’s a good time to add to existing asset holdings as follow -on opportunities how did you go about touching base with yours, kudos on your growth so far
you only have to put in the simplest terms to help you understanding tax, mortgage, emergency funds for cashflow interest. If you're looking for nest egg options or if you have any questions about financing your next property or assets building.
Then feel free to write Deron Cirillo his incredible earning interest will support you in making your home buying and benefits journey as smooth and stress-free as possible. Good luck staying debt free as much as possible in the future.
I like the reward tip My wife and I are working on paying off our mortgage fast, and I think that will help motivate us. I can't wait to be mortgage free! We have a plan, and should be able to get there in 5 years or so, with extra effort.
Retirement is now more difficult than it was in the past. it's all about balancing your risk tolerance with your long-term goals. Maybe consider speaking to an advisor to help in diversifying your portfolio to spread out the risk.
Financial planning and retirement strategies are crucial, especially in today's economic climate. With global economic fluctuations and uncertainties, it's essential to have a solid plan in place to protect your financial future.
Agreed, I've always delegated my excesses to an advisor, since suffering major portfolio loss early 2020, amid covid outbreak. I'm now semi-retired and only work 7.5 hours a week, with barely 25% short of my $1m retirement goal after subsequent investments to date.
My CFA, Joseph Nick Cahill is a renowned figure in his field. I recommend researching his name online; you'll find all his credentials and everything you need to work with a reliable professional. With many years of experience, he is a valuable resource for anyone looking to navigate the financial market.
Excellent share, curiously inputted Joseph Nick Cahill on the internet, spotted his consulting page ranked top and was able to schedule a call session. Ive seen commentaries about advisors but not one looks this phenomenal
A former colleague said he was afraid of running out of money at 85. I am fairly positive he is financially sound, so I told him that if that occurs, either the world went totally to hell, or he had a great time getting there.
If you have equity in your house, you can't run out of money, you have that as a last resort. If I should be so lucky to run out of money when I'm 90, I will accept that.
Very well stated. I am retired and have done pretty well. Just living frugally we have amassed quite a bit of money. It took us some time, but we have learned to spend. We have a $50,000 annual travel budget, and we enjoy our cruises..
Good for you! I'm trying to figure out what I need to retire. We are saving because of confidence as he said. Should I expect a 3% or 6% ROI on my savings (401k, etc)?
$50k !! wow - we're were thinking $20k for our international travel budget. Based on your travel experiences are we shooting too low? I was thinking 4 main trips a year (just the 2 of us)
@@Mooneypilot101WOW there's actually someone like me out there. I have been saving 80 percent of my pay for the last ten years. I am debt free. I have 3 years and four months left but I'm thinking 16 months at age 65.
You ae describing me. This am, I paid off the one credit card as is done every morning - $7.46. The new house on the corner is listed for $4 million. My parents were raised in the depression. I wore hand me down clothes/shoes until I was in junior high. I went through the economic downturns raising a small child, being widowed and had to have the life style of living below my means. I don't need to spend big bucks to enjoy life. I have 13 fruit trees on a conventional city lot and fresh tomatoes for salad every day.
I just retired a month ago. My pension and Social Security equal $78K per year. I have zero debt and live in Arkansas (low cost of living). I think I’ll be ok.
Same here but my property taxes are $20k a year which is why I’m still working at age 70. Fortunately have a nice pension and haven’t needed SS until now when I have to take it.
Retiring next week at 48. Completely debt free. 1.5M in savings, and plan to be productive and earn some money in early retirement. My wife loves her work, so she will stay self employed.
Not quite sure I understand this comment because it doesn't sound like you're actually retiring if the wife's working and you're also still earning an income. Sounds like you're just changing careers. LOL
I applaud anyone who can delay taking SSA until 70, but if you have health issues it may behoove you to claim early. My dad had 3 heart attacks by the time he was 60. He stopped working at 62 to claim SSA and was dead at 72. He had no regrets of stopping early to enjoy life while he still could.
Parent a lived to 71, parent b to 73, and only sibling to 50 (cancer). I’m taking mine as soon as possible. 1) longevity is a long shot …. Lol 2) remember go go, slow go and no go. I’ll take it when I can spend it with a healthy body and mind.
If...IF someone retires at 62 and does not have enough put away to make it to 70 living on their savings or living on their savings supplemented with a part-time job...they don't have enough saved to retire..
Any of us who have had to clean out our deceased parent's homes and all the "stuff" that went straight to the dumpster KNOW we don't need more STUFF because we know where it will inevitably end up!!
I always wondered if it was just me that got rid of 99% of my parents stuff - into the dumpster. I just didn’t have a need or want for but a few things.
It’s so true, I just dealt with my mother’s stuff ( so much of it was donated or to the dumpster) very emotional though , I have a small apartment so could only keep a few key things unfortunately. Big lesson: use the fancy dinner plates and flatware everyday and put it in the dishwasher otherwise we know where it’ll end up
It’s a good reminder, too-almost nothing you buy retains significant value, and that which does generally takes a fair amount of effort to turn into money. Clothes, kitchenwares, and housewares are basically scrap the second they leave the store. You might spend weeks trying to sell a 5-year old TV or a 10-year old car for peanuts.
We had a weekend to clear out my parents apartment after they both passed, just me & my sis, the majority of the stuff got taken, we knocked on everyones door in the building and asked them if they would like to do a walk through and take stuff, couch, coffee table, kitchen table, all the rooms got cleared out within 2 days! Clothes we donated and only thing we took was the food in the cabinets, whatever the neighbors didn't want. Felt good that zero went in the landfill and got reused.
@@lindahughes9207 Great work! I’ve had to clean out SFHs so resorted to a professional estate sale. The end effect would have been the exact same as if I had opened the door and asked people to take what they want.
I'm one of those boomers. Parents were born in the 1920s, lived through the depression with absolutely nothing. My upbringing was very modest. We lived in a trailer. I never had money so now I value what I do have and I don't squander money.
Retired at 58. No debt. Easy formula. 1: Save 15% of your income. If you make $100k, pretend you only make $85k. 2: Make your own coffee and pack you lunch. Run the numbers. It is truly staggering
I think living below your means is totally key. My wife and i live like we make 2/3 of what we actually do and that cushion for unexpected expenses helps us sleep at night
@@apnira10 Life is too short to go through it on the cheap. The key is a balance between spending to enjoy life and saving a bit for the future. For many, a nice car is not a "splash."
Here is the deal, when we Boomers reach our retirement years we almost always have everything we need, and we no longer need to buy stuff. What many of us will spend on is traveling.
It's too hard to earn to spend it down rapidly. It took us 50 years to build a 2 million dollar portfolio and it is a great relief to know you can have anything you want but have the discipline not to waste it on things that only cause you more grief when they require maintenance and up keep. We bought a new Tesla last year and it has been great, we prefer to leave what we don't spend to our kids. It's nice to know you don't have any more deadlines or are required to fight the traffic to get to work everyday. A steady income that grows every year is worth a lot more than collecting junk that no one wants when you die. Our parents collected a lot of things that I am sure meant a lot to them for semimetal reasons. However we had very little use for all of the cut glass, silverware, dinner china or antiques that they collected. We did keep some items but in the end it was only a small part of what they collected. We can travel and do what we want to do now and have money to repair anything that could go wrong with our 17 year old home. We sleep well at night knowing we are secure and happy with the time we have left.
I’m often chided for not spending my wealth. I just tell those folks that I do spend my wealth. I spend every single dollar every day. What do I buy with it? A good night’s sleep.
@@CarlWithACameraPrecisely how I feel!! I get to use each dollar twice - once for the good night’s sleep today, and then again someday far in the future to buy something I need or want. I feel no shame in double dipping like this, the ultimate 2-for-the-price-of-1 deal!
Agreed, though I don't have kids. We have a small house now and that acts as a limit to the amount of stuff I can accumulate. I kinda like it that way.
I’m 82 y/o now and I count my blessings every day. Without your health, you have nothing. If you’re rightly advised to plan early for your financial future then, you should rightly plan early for a healthy future. If you don’t do one of these, you might just as well not do either. I’ve seen relatively poor people financially AND poor health people who are just as happy as the wealthy/healthy ones. Happiness is not measured by the number of zeros in your bank balance. Your way of living your life should be commensurate with what you expect to get out of life. If those two things are opposite each other, you’ll most likely be an un-happy person blaming everyone else for what went wrong. In the final analysis, you must be happy with the choices you made and never ever compare yourself with anyone else.
There was a saying i read from a men's fitness magazine , from an elderly bodybuilder "do what you can when you can as there may come a day when you can't". While he was talking about fitness and health , i think it applies to.your retirement too.
I have no interest in spending more. Traveling greatly annoys me and I have a house full of stuff that feels suffocating. What I really want is a quiet space to enjoy in peace, which I've already built. Nothing is more satisfying to me than spending an entire day in my fruit tree orchard either relaxing or maintaining/improving that space. To heck with spending more.
We are the saving/help generational wealth gen... Many of our conversations (my cluster) relate to learning about wealth management from credible resources. I have learned that elderly folks like: To be safe To be comfortable To be financially secure. Not much they need (they have it already). Ironically, they eat out less - waste money less as they have time to cook, and plan travel. Just my observations.
That's exactly it--switching from accumulation to spending is a difficult transition. It's especially true when financially comfortable due to many years of living below one's means. I've always enjoyed traveling, but I now do so at a higher level. Good info and makes sense. 👍 Haha, just continued watching, "yep, that's me". 😊
4 years ago my friend and I had 25k to put towards a replacement car. He went into BMW dealership intending to buy a nearly new but instead got a high spec brand new M3 on lease and paying £500/ month. I put off for two years because of COVID and continued to use my old 2009 Insignia until mechanical issues (head gasket gone) and water hoses perishing meant I needed to replace. I bought a top of the range 3yr old 10k miles Volvo S90 Inscription with a load of additional extras for 25k. Friend is on second BMW but has now spent all his deposit equity in the vehicle and will need to get either another deposit or a loan for his next car. Me I'm happy to run my car for as long as I can. No debts, no mortgage in receipt of a company pension. Working again after 3mth break and also paying 15% into Company pension which they contribute 30% will be going half time in 2025 and earning about what I was on pre retirement full time. Investing fully each year too maxing the ISA. Wife is currently working part time already 2 days a week. I'd say save early in life and make that saving a pain to access as you learn to live within your means and don't keep up with the Jone's as too many of them live on the never never and credit cards. Just one missed salary payment from ruin.
Yeah, that's us. Just starting to upgrade to the "Club Level" on certain cruises and fly Business Class if/when it's "only a little more" (NOT when it's 75% more). Tough to teach a moderate- spending dog new tricks.
Our patents lived through the depression and we saw the effect on them. But we, in Ontario anyway, lived through 20% interest. So, we are leary of the future financial liabilities. We may have had cheaper home prices but the interest rates would have rotted your socks off! Plus, many homes were single earners, managing one's money was an important term.
If you make smart choices with the Medicare and your supplement, it limits the annual amount that you will spend on deductible and maximum out of pocket. IOW, don't sweat the health care costs. LTC is costly. However, I saw my mother not enjoy her money only to have it all go to the nursing home, then she went on Medicaid (welfare). The difference in care between self pay and Medicaid is minimal unless a person is a millionaire. Enjoy your money, and let your kids earn their own.
Both my parents grew up during the Depression, and I grew up with their frugal habits. Even though I am a multimillionaire with no debt, I still wash out and re-use plastic bags, and try to reuse aluminum foil🥴
Even though I am a deca billionaire , I replied to your comment. I agree to what you said. I even cut my toothpaste tube into half to get the last ounces.
We didn't wait and retired at 53 and 51. The money still grows because we don't need anything, are debt free, and really only spend extra to travel....especially South during the Winter.
Simple. Don't try to keep up with your neighbors with their fancy lifestyles and most importantly live bellow your means. In our society, we are unfortunately judged by the car we drive. At the end of the day most of those folks won't be able to retire and are saving nothing (I'm always blown away at how little my neighbors and friends are saving/investing.....if at all). I feel good knowing that I'll be able to close up show in my mid 50's, simply because I put together a plan in my 20's.
I agree with you 100%. Especially on the car thing. It blows my mind to see this idiotic behavior of trading in a car every few years to continue having this NEVER ENDING monthly payment just because you want to impress folks.
While I don't have a goal to leave a lot money to anyone, I'll happily do so before spending for its own sake. We know our values by now, so it's not a fear of spending but rather an immunity to romantic consumption.
Thanks, Kevin. I needed to hear this. Im in the same position, plus a few things more. I'm not frugal or stingy but at 60yo I have everything I need. Could buy another fancier car but it doesn't interest me. I could have a newer kitchen but happy with my fully functioning 70s kitchen. I love travelling and that's where the money will go 😂😂😂😂😂😂 thank you again ❤❤
After accumulating wealth for so many years you become conditioned to saving, investing and frugality, then decumulation is hard and it can even bring about sadness…
I’m 71, own my home, have pension, social security and a hefty brokerage account after saving and investing 20 % of my gross income since I was 25 years old…I have a $30,000 year international travel budget… health is good too!
I find that the big question, spend on what? I am by nature a minimalist and have never wanted things or travel etc. I'm basically quite content. I can see the likelihood of dying rich (which I don't want) but how to avoid it? Even buying a nicer home isn't really spending the money, it's just locking it up in real estate as opposed to stocks etc., it's still not gone.
I support poor and suffering people in Uganda. There's nothing like knowing every dollar you give is easing the pain of real people who otherwise couldn't help themselves.
@@adm58 life is short..support others trying to create value (ie a start up business) that is something you are passionate about? Give to search and rescue or other local volunteer organizations? I think that's what I'd do if I were in your situation.. how cool and congrats to you!
That's pretty much me. Grandfather was a banker, dad was a stock broker/ business owner. I was a lowly union guy😁, but I was able to bail when I was 49. I enjoy making $ more than spending it. I know I'm weird...
We meet all the indicators and we know we’re well off financially. We’re even growing our wealth in retirement, but we don’t have desire for material things. We love the peace of mind of knowing that we don’t have to worry about running out of money. If we leave most of our money to our children, that’s great too. The most important thing for us is financial security.
I'm not a Boomer (1966) but I am retired and I took a 20% pay raise in retirement. I maxed out my contribution to 401K and HSA and I was used to living on about half of my income after tax.
My wife and I are retired baby boomers. Low interest rates you say? When we were looking for our first house in 1982, the mortgage rates were 18%. We waited until early ‘83 and our first mortgage rate was 12 3/4%. We built a ranch house when we retired and carry $140k mortgage; we can afford the monthly payment. We bring home more now than when we were working but not drawing down any investment principle. About $2.4MM in net worth. All good.
I am 27 and i just started my ROTH IRA and deposited the max for 2024! I feel stupid for how long it took to get my life straight. The problem here is, what is the best way to invest the money to grow for retirement?
This is almost 100% exactly what Dave Ramsey says, Financial Peace, and the 7 baby steps! I already have that smile watching people drowned in their status crap! Live like nobody else, so someday, you can live like no one else!!!!!
Many boomers have multi generations that we are helping financially! Aged parents, children, and grand children! Now add the fear of future cuts and cost of living its hard to splurge!
I don't have a lot. But what I do have is good health, a decent pension at $70k a year, no debt, medical insurance, about $200k saved, and a couple of properties mortgage free. I take in more than I spend, and yes I save too. I just keep flipping the $200k in short term CD's and use the interest earned for major purchases and maintenance on my properties. Works for me.
Yupp, that's me/us . . . . All you said and all your recommendations with one caveat: Many of us have less than 100% surety that SS will pay out in the future as it has paid out in the past e.g. - "means testing" or higher taxation of Meanwhile, I am converting IRA => Roth IRA to the top of the 24% bracket.
HA!!! Since I was 5 and my parents took me to the bank to open a passbook savings account. If I got a dollar for my birthday I would save half of it. A $5 bill from my grandparents at Christmas? Save half of it. (For the youngsters in the audience, $5 in 1956 had the purchasing power of $57.44 today.) And compound interest is one of the wonders of the world.
We paid off two houses. The one we live in and the one my office is in. I had to retire due to fibromyalgia and I plan to ( and learn to ) spend my money that we accumulated over the last 40 years. Plan to collect social in two years. Getting 3900 a month. He is right in that when you learn to live below your means all these years you tend to live below your means in retirement.
You just described me perfectly. I don't need or want anything. My home is 70% paid off at 2.4% mortgage (why would i pay that off?) It doubled in value in the last 5 years. I averaged 9% returns while maxing savings with company match 401K for 40 years. I am up 17% this year in my investments. I am flush. I still work and make a high end executive salary-- because I like working. It is where my friends are. No idea what else I would do with myself. Now I don't want anything lol. And the last thing I want to do is travel. I have been traveling for business since 1988. I wear jeans, go to Costco, buy in bulk, and have two brand new paid off vehicles. My social security and medicare are just sitting there and I am 67, so 100% eligible. I have two small retrirement pensions I collect as well for walking around money. Not complaining, I am very lucky, but here i sit, commenting on your video. Maybe I should buy a smart TV, but I don't think I could work it. Can't play golf, my elbow is bad. Ride my bike, workout at home (not even a gym membership), and my credit cards are zero. I still mow my own lawn and do most of the work around here myself. But I did get my wife a housekeeper, probably our only luxury. My kids are both exceptional professional people, doing great in their careers. If I die, they don't need my money. Just for fun, I bought 4 bitcoin at $2500 each. It is now $60,000 each. So--what would you do?
My sister often repeated that since she had no kids she didn't care about leaving money to anyone. Which was her right. The problem was she was a spendaholic. And she didn't time everything to have her last dime in her last hour. She ran out of money 10 years too early spent her last decade on the social security at the 62-year-old level, scrabbling for food, and not really able to run a car. Keep a fat cushion if you can. No one's coming to bail you out and a lot of people have their hands out to take what you have.
*I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone's that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.*
A good sign someone is NOT wealthy is they drive a flash car (financed), they wear designer labe clothes (credit card) and they eat out a lot or get home delivery food (credit card) and post lots of pictures on social media about how “happy” they are.
6:55 With each age there's a break even year for the larger amount. For me starting at 67 would take 13 years and starting at 70 would take 12 years. This does NOT account for the fact that delaying in either case would keep my wife from drawing her full Spousal Amount. It also assumes that the person has nothing better to do than to sit in their cubical pushing buttons (or whatever they do). I plan for 20 years in retirement, no more. This is my plan, not because I want to check out, but due to family history and because even if I would run out of money by 85 years of age, I would still have my SS and my pension.
Later Boomer here. I plan to wait until 70 to take social security. In 3 years my house will be paid off. I may work until early 70s (my family lives into late 80s and 90s -- my 91 year Aunt still drives and travels), I enjoy my work and am in good health. I'll make the decision when I hit 70s. With my house paid off and no debt, I an easily cover basic expenses with social security, so I would have more than enough saved at 70 to retire then. Freedom is when you can make choices!
It's really gratifying knowing that I can fully live off my modest projected social security amount easily. This gives me more freedom to start spending down my nest egg in early retirement.
Kevin, THANK YOU for your videos. We've learned a lot from you. As much as anything, your information has helped ease our minds about having enough money.
Happiness is a well kept secret but, I think as people get older, they figure some things out on there own. People figure out that the key to being unhappy is focusing on what you don't have/aren't getting. You learn to live in the now and to ask yourself, what do I need to be happy in this moment. Sure I have "financial experts" telling me I'm doing it wrong, if I had your money, I wouldn't have it very long. Happiness is a choice but, it has nothing to do with money or what you buy with money. It's being able to say, there is nothing I need to be happy in this moment.
@@Eric-Marsh I found Buddhism in my teens, stayed with it long enough I trained myself to "find my center". I was in my 60s before I found the scientists that study happiness, Dr Robert Holden, Dr Laurie Santos (free Yale Happiness course) and there are others. Learning happiness is huge.
Haha you described me. No debt, paid off house and my financial advisor keeps telling me I need to spend 40K more a year then I told him I will busdget for. I also have a full brokerage account outside my retirement funds. I feel great with my position.
Once frugal always frugal. I have always been frugal my whole life. I still enjoyed travelling in luxury (exotic places, first class flights etc). This allows me to build up retirement savings and I'm planning to retire in 2 months. The thing is I will never my frugal way to live my retirement life. I prioritize 'value for money' and I will always be that way.
My money keeps growing and I have more than I ever dreamed of having. I traveled so much when I was younger that I am done with travel. My lifestyle doesn't cost much and I am still working on spending more money. The crazy thing is in 8-10 years it will double in size at the present rate of return. I went to the doctor and it cost $365 for 15 min. visit. That means they charge over $1200 an hour. If you are concerned about losing wealth fast poor health will do it.
So true about living below means. In order to determine if i could retire early, I tried living on what I thought I could manage and invested the rest. Having seem my parents barely manage through the 18% mortgage, grand parents who lost everything in war, I am glad I learned to live frugally. I can make my own coffee and despite 6-figure salary, could never justify the cost of a pizza. Instead, i used some money to travel, jelp family.
I'm 52 and paid off my mortgage 5 years ago. I think it's easier for some people to be frugal. I usually cook at home. Dining out causes weight gain. I think dining out is where most people waste money. I drive a 2010 Altima. I love the car. I like Corvettes but it would probably be in the garage most of the time. I clean my own house. I would be embarrassed for a stranger to see my house dirty. I mow my owm lawn. My neighbor has a zero turn and cuts one side because it only takes a couple of minutes. I have a small vegetable and fruit garden. I worked part-time at the golf course when I was a stay at home Mom. I love the people but I wouldn't even golf when it was free for me. Trips would be nice but its hard to find someone to go with. People my age are either broke or sick. Hoping to change that.
I just stay at my local shopping centre for half the day nearly every day, that way l don't have to use up electricity etc at home. Plus, staying at home is boring! I just love my retirement years of hanging out there, watching movies on my phone while it's plugged into my power bank in the food court. The shopping centre is my 2nd home. My multi-million dollar mansion 😂
I’m one of these baby boomers with a tiny issue. We have autistic daughter and my concern is having her taken care of when we pass or no longer able to take care of her. Any suggestions?
So after taxes and medical covered (I'm fully medically covered by VA, my wife by Tricare). Our first year of retirement at age 62 (for me), we will take home just over 100k. I won't take Social Security till sometime between 65 and 67 years old. 100k is roughly 80% of what we take home now and we will still be able add to our savings. I feel this will be a decent amount for us, and not having to pull from our savings or her TSP (401k) will be nice too.
When we downsized last year, we could have paid for the house without taking a mortgage, but that would have in essence tied up most of our wealth, just to leave it to our children. So we took out a $100,000 mortgage, and are now able to splurge on some of the small things.
Wife and I married in college 50 yrs ago. We started with zero, living paycheck to paycheck. Oftentimes, we had nothing left between paychecks after paying rent and bills. Once I got a job after graduation, we tried to save what we could and later funded our 401(k) the max each year. We did all our own home and vehicle repairs and used grocery coupons. We took very modest vacations with our kids perhaps every 3rd year. We never smoked, drank coffee or bought alcohol and rarely ate in restaurants. Wife did not work outside our home. We also made significant (for us) charitable and church donations each year. We retired with a 7 figure IRA, substantial savings, zero debt, 3 nice vehicles, 2 power boats and a large home. We are enjoying traveling and spending time with family and friends. We never expected to retire in such good financial shape. It can be done. It takes planning, discipline, buying what you need and not everything you want, shopping for deals, not trying to keep up with the neighbors and not throwing away your earnings at Starbucks, bars, restaurants and expensive vacations. Spend less than your net income.
I have plenty of money but find it difficult to spend it. Thats where my wife comes in and she will spend it wisely and always looking for value. Im always looking at the crab legs that Costco has for 10.99l.b but I find it hard to pull the trigger. Im your typical millionaire next door.
Now a days I don't think too much when spending on food. It not going to make any diff in my life style and I am savings quite a bit by cooking at home than eating out.
I know exactly "where I stand." I have detailed records of every cent for over thirty years, pretty much ever since PCs were invented. You can too. Just start now.
Yes, my parents grew up in the Depression. I very much remember stagflation during the Carter presidency. I first entered the job market in the early 1980s, in the midst of a recession. I remember recessions in the early 1990s. I remember dot bomb and was laid off after 2001 (but found another job right away). I remember the real estate crash of 2008. We have no debt. Our house is paid off. We have significant savings both in retirement plans and outside our qualified accounts. We do spend money -- we have nice cars. But we rarely eat out. We don't do a lot of travel. We will be retiring in the next couple years.
We are the quiet, millionaires next door, settled exactly where we want to be and have finally realized we have plenty of money to spend now, while we are retired with no debt or heirs at 63. Just took a $30k vacation, four times more than we’ve ever spent before, and it didn’t hurt our bottom line at all. Enjoy today the results of your hard work and past frugal living! You never know when your situation may change.
Spending too much vs too little is a fine line. I don't want to spend money just to be spending money. And we have LTC risk, market risk, etc. so don't blame us too much for holding on to it a little too tightly. However, I'm trying to find that boundary, that fine line and make sure I'm doing what I want to do and not wasting the gift that God has given me (us). It is not a pick a spending rate and forget it. When you are trying to ride that line, how much you spend has to be watched and managed.
This video relates to me! I am too scared to spend and I think I am good shape. My financial advisor says I am worrying too much and can retire now or work just one more year till 63. I just turned 62, single, no kids, ZERO debt, healthy, with a bit over $1 million in retirement savings and I projected my monthly expenses in retirement to be right at $4000 a month. I have a added bonus that my current health insurance covers continues in retirement, for life. I do NOT plan to leave money so it will be spend down. If I take SS at 62, it is showing as $2100 a month. Can I retire now or very soon and not run out of money till early 90's or so?
Also... there is so little 'stuff' worth buying. Even experiences have become disproportionately expensive, to the point where you question the value. I try to compare the value of something to the true cost in hours worked... rarely do I find things that provide more than the associated costs.
30yrs ago my wife and I started having $ 100 mth taken out of savings automatically and put in 4 mutual funds with a well known mutual fund family. It alternates and goes into 2 funds per mth.($50 each)Over the yrs I have switched funds acouple times but basically let it ride and have not paid a lot of attention to it. This has nothing to do with our retirement accounts and we have never touched it although it was there just in case. As we speak it has $115,000 in it and we have never missed that $100 mth. True testiment to dollar cost averaging. Now, could a more savy investor turned that $36,000 into much more. No doubt , but for us it is like found money since we just let it ride.
This is helpful. There is a lot of fear mongering out there, and overly simplistic rules of thumb like the 4% rule can create a lot of unnecessary anxiety.
Thank you, for sharing this information. Think there are two groups of people here, the first group does not have a pension large enough to pay their current and projected in retirement monthly bills. The only way, they earn money is through their investments and nobody knows what will happen in the future. The second group is like myself, we have a pension to cover our monthly bills but, we just do not want to spend more than we bring in each month. Sorry financial planner, no investment commissions for you (smile...smile).
@@joetruth7823 I keep hearing that most people today, even working in office jobs no longer have a pension plan. However, whenever I ask on You Tube. So, please tell me the type of plans that are being offered in detail, I get no replies. In my 30's, I worked for a private firm that provided all employees a pension along with a 401(k) with a 2 percent match. From the age of 43 to 63 (20-years), I worked for a City where, you had to pay a portion of each paycheck into the pension plan and, they also offered a 457 plan with a 3 percent match. Please let me know, what type of retirement is being provided or offered in 2024, for newly hired office workers.
@@joetruth7823 My neighbor is a teacher, he was shocked when I told hin no one at our company had a pension. He literally did not know what a 401k was.
@@johng4093 While, technically your comment is 100 percent correct. Guess that, I just have a "pet peeve" whenever, someone says that a 401(k) or 403(b) is a replacement for a traditional pension plan. This is because, I worked in the private sector for 15-years and had both a traditional pension as well as a 401(k) with an employer 4 percent match. Then for the next 20-years, I worked for a City which, again had a traditional pension and also offered an optional 457 plan. Now in my early 60's, I retired last year with the following monthly sources of income: private sector pension, public sector pension, IRA, 401(k), 457 plan, social security, and my personal savings (smile ... smile).
I retired two years ago and meet all of your criteria although I notice you don't put any numbers on it. Most of my wife's and my wealth come from our house in addition to 401Ks over the years. But you don't really mention the two big unknowns for every older American - health costs and long term care costs. Our private health care system seems designed to suck all our savings before death. If we have a decent Supplemental insurance plus Medicare, what is our likely total expense if we get a serious long lasting disease? And if we survive into great age, how much do we need to save for our long term care? I'm happy to spend some money on foreign travel but the rest can go to our kids. They could use some now but we don't know how much to hold for these uncertainties.
I waited until about 49 to get serious about saving and have managed to save 1.2 million at age 66 still working but want to call it quits at 67 in 10 months. I have lived on less than what my SS will be for many years now in fact some years saved over 70% of my income. I have no children to leave anything too so I could just spend I guess but being frugal is so ingrained in me now it will be difficult! Deciding where I want to live on planet earth for retirement is my big problem now.
I just stay at my local shopping centre for half the day nearly every day, that way l don't have to use up my electricity etc at home. Plus, staying at home is boring! I just love my retirement years of hanging out there, watching movies on my phone while it's plugged into my power bank in the food court. The shopping centre is my 2nd home. My multi-million dollar mansion 😂
I'm 59 and turning 60 soon. I got laid off with a bunch of other people at my firm. I was a little down (for about a day) because I was one of those people who did the right thing over the last 30 years. I'm now retired and love it. I say that because over those 30 years I was a personal finance junkie and listened to all my mentors (John Bogle, Warren Buffett, David Bach, sometimes Dave Ramsey) "use your job to finance your retirement goal"
Having a great savings and more streams to earn makes life goal’s easier but our way of life needs better alternative, at the same time, people also need to be more responsible. I know for a fact that there's a lot of people that simply don't make enough, I make roughly hundred plus a year and in California, rent inflation alone eat up almost all of what I make, with dependents and other obligations included, it's easy to end up with zero. however it’s a good time to add to existing asset holdings as follow -on opportunities how did you go about touching base with yours, kudos on your growth so far
you only have to put in the simplest terms to help you understanding tax, mortgage, emergency funds for cashflow interest. If you're looking for nest egg options or if you have any questions about financing your next property or assets building.
Then feel free to write Deron Cirillo his incredible earning interest will support you in making your home buying and benefits journey as smooth and stress-free as possible.
Good luck staying debt free as much as possible in the future.
I like the reward tip My wife and I are working on paying off our mortgage fast, and I think that will help motivate us. I can't wait to be mortgage free! We have a plan, and should be able to get there in 5 years or so, with extra effort.
Retirement is now more difficult than it was in the past. it's all about balancing your risk tolerance with your long-term goals. Maybe consider speaking to an advisor to help in diversifying your portfolio to spread out the risk.
Financial planning and retirement strategies are crucial, especially in today's economic climate. With global economic fluctuations and uncertainties, it's essential to have a solid plan in place to protect your financial future.
Agreed, I've always delegated my excesses to an advisor, since suffering major portfolio loss early 2020, amid covid outbreak. I'm now semi-retired and only work 7.5 hours a week, with barely 25% short of my $1m retirement goal after subsequent investments to date.
My CFA, Joseph Nick Cahill is a renowned figure in his field. I recommend researching his name online; you'll find all his credentials and everything you need to work with a reliable professional. With many years of experience, he is a valuable resource for anyone looking to navigate the financial market.
Honestly this cannot be overemphasized, helping people mitigate unforseen circumstances and mistakes .It's always good to have a financial plan,
Excellent share, curiously inputted Joseph Nick Cahill on the internet, spotted his consulting page ranked top and was able to schedule a call session. Ive seen commentaries about advisors but not one looks this phenomenal
The problem is the fear of running out of money is greater than the fear of not using it to its fullest potential.
Often a solid financial plan with a strong contingency plan will help with that.
A former colleague said he was afraid of running out of money at 85. I am fairly positive he is financially sound, so I told him that if that occurs, either the world went totally to hell, or he had a great time getting there.
If you have equity in your house, you can't run out of money, you have that as a last resort. If I should be so lucky to run out of money when I'm 90, I will accept that.
perfect post....
@@tudvalstone But what if you live past 90? I guess Medicaid will be around, but your inheritance will not.
Very well stated. I am retired and have done pretty well. Just living frugally we have amassed quite a bit of money. It took us some time, but we have learned to spend.
We have a $50,000 annual travel budget, and we enjoy our cruises..
Good for you! I'm trying to figure out what I need to retire. We are saving because of confidence as he said. Should I expect a 3% or 6% ROI on my savings (401k, etc)?
@@globalfamily81724.5%?
$50k !! wow - we're were thinking $20k for our international travel budget. Based on your travel experiences are we shooting too low? I was thinking 4 main trips a year (just the 2 of us)
Only spend what is left after saving. I spend less than 25% of my income. 3/4 goes into savings and investments
@@Mooneypilot101WOW there's actually someone like me out there. I have been saving 80 percent of my pay for the last ten years. I am debt free. I have 3 years and four months left but I'm thinking 16 months at age 65.
You ae describing me. This am, I paid off the one credit card as is done every morning - $7.46. The new house on the corner is listed for $4 million. My parents were raised in the depression. I wore hand me down clothes/shoes until I was in junior high. I went through the economic downturns raising a small child, being widowed and had to have the life style of living below my means.
I don't need to spend big bucks to enjoy life. I have 13 fruit trees on a conventional city lot and fresh tomatoes for salad every day.
Can I come over for lunch? I love fresh tomatoes! 🍅 Thanks for sharing!
Must be California with a $4 million house. Thats why people hate boomers.
@@bills1995vette People hate boomers because they worked hard, saved much of what they earned, and invested wisely.
I just retired a month ago. My pension and Social Security equal $78K per year. I have zero debt and live in Arkansas (low cost of living). I think I’ll be ok.
Same here but my property taxes are $20k a year which is why I’m still working at age 70. Fortunately have a nice pension and haven’t needed SS until now when I have to take it.
I live in Arkansas too! It's a great place to be! My sister recently said that I am stealth wealthy.🎉
Congrats..
Pension? What's that? 😉
Yep
Retiring next week at 48. Completely debt free. 1.5M in savings, and plan to be productive and earn some money in early retirement. My wife loves her work, so she will stay self employed.
Enjoy your retirement! I hope Cede and Company 😮does not own your assets and you only have claims against them.
@@Etron49😂😂
Not quite sure I understand this comment because it doesn't sound like you're actually retiring if the wife's working and you're also still earning an income. Sounds like you're just changing careers. LOL
Congratulations
Then you actually won’t be retiring. If earning money doing something else you are just changing jobs. But, good luck anyway!
My best "asset" is a low maintenance and frugal wife!
In a restaurant:
Yes, I’ll have the champagne.
She’ll have a water please. Tap.
😂
That’s awesome-you’re a smart man to have a wise wife! Be nice to her and treat her like the treasure she is!
Hope you're frugal too.
I applaud anyone who can delay taking SSA until 70, but if you have health issues it may behoove you to claim early. My dad had 3 heart attacks by the time he was 60. He stopped working at 62 to claim SSA and was dead at 72. He had no regrets of stopping early to enjoy life while he still could.
It depends on the situation. My case, wife doesn't work. So if I claim early and die, she gets very little. If I delay to 70, she will get the max.
Parent a lived to 71, parent b to 73, and only sibling to 50 (cancer). I’m taking mine as soon as possible. 1) longevity is a long shot …. Lol 2) remember go go, slow go and no go. I’ll take it when I can spend it with a healthy body and mind.
Next day is not guaranteed for anyone! Claiming as soon as I can!
If...IF someone retires at 62 and does not have enough put away to make it to 70 living on their savings or living on their savings supplemented with a part-time job...they don't have enough saved to retire..
@@bobby350zif you claim early and then die, your wife will get 100% of what you were collecting.
Any of us who have had to clean out our deceased parent's homes and all the "stuff" that went straight to the dumpster KNOW we don't need more STUFF because we know where it will inevitably end up!!
I always wondered if it was just me that got rid of 99% of my parents stuff - into the dumpster. I just didn’t have a need or want for but a few things.
It’s so true, I just dealt with my mother’s stuff ( so much of it was donated or to the dumpster) very emotional though , I have a small apartment so could only keep a few key things unfortunately. Big lesson: use the fancy dinner plates and flatware everyday and put it in the dishwasher otherwise we know where it’ll end up
It’s a good reminder, too-almost nothing you buy retains significant value, and that which does generally takes a fair amount of effort to turn into money. Clothes, kitchenwares, and housewares are basically scrap the second they leave the store. You might spend weeks trying to sell a 5-year old TV or a 10-year old car for peanuts.
We had a weekend to clear out my parents apartment after they both passed, just me & my sis, the majority of the stuff got taken, we knocked on everyones door in the building and asked them if they would like to do a walk through and take stuff, couch, coffee table, kitchen table, all the rooms got cleared out within 2 days! Clothes we donated and only thing we took was the food in the cabinets, whatever the neighbors didn't want. Felt good that zero went in the landfill and got reused.
@@lindahughes9207 Great work! I’ve had to clean out SFHs so resorted to a professional estate sale. The end effect would have been the exact same as if I had opened the door and asked people to take what they want.
He's right. Time is the one rsource you can never get back, it doesn't matter how much money you have.
Then use your time wisely throughout your life not just in old age!
I'm one of those boomers. Parents were born in the 1920s, lived through the depression with absolutely nothing. My upbringing was very modest. We lived in a trailer. I never had money so now I value what I do have and I don't squander money.
Retired at 58. No debt. Easy formula. 1: Save 15% of your income. If you make $100k, pretend you only make $85k. 2: Make your own coffee and pack you lunch. Run the numbers. It is truly staggering
I think living below your means is totally key. My wife and i live like we make 2/3 of what we actually do and that cushion for unexpected expenses helps us sleep at night
Retired at 55 no debt. Saved 10% or more pa throughout my career. Invested plenty. Didn’t splash on cars or nonsense. Life is good.
@@apnira10 Life is too short to go through it on the cheap. The key is a balance between spending to enjoy life and saving a bit for the future.
For many, a nice car is not a "splash."
@WangOChonUs too, lived on one salary last eight years. Truly life changing for the better now.
@@jerrylundegaard2592 "For many, a nice car is not a "splash." Indeed. "Many" are broke because of confusing want with need.
Here is the deal, when we Boomers reach our retirement years we almost always have everything we need, and we no longer need to buy stuff. What many of us will spend on is traveling.
and in the USA overpriced medical expenses.
@@COOLARULgo to Canada or the UK and sit in an emergency room
@@zuhalterei4090my 8yr old niece tripped on a step & broke her nose while we were traveling in Germany. Cost was 40 euros, even saw a plastic surgeon
@@zuhalterei4090 If you are a member of the working poor. the UK and Canadian system is better than the USA
@@zuhalterei4090 absolutely -- much, much better than here in the US. The NHS, badly underfunded though it is, is an absolute godsend.
It's too hard to earn to spend it down rapidly. It took us 50 years to build a 2 million dollar portfolio and it is a great relief to know you can have anything you want but have the discipline not to waste it on things that only cause you more grief when they require maintenance and up keep. We bought a new Tesla last year and it has been great, we prefer to leave what we don't spend to our kids. It's nice to know you don't have any more deadlines or are required to fight the traffic to get to work everyday. A steady income that grows every year is worth a lot more than collecting junk that no one wants when you die. Our parents collected a lot of things that I am sure meant a lot to them for semimetal reasons. However we had very little use for all of the cut glass, silverware, dinner china or antiques that they collected. We did keep some items but in the end it was only a small part of what they collected. We can travel and do what we want to do now and have money to repair anything that could go wrong with our 17 year old home. We sleep well at night knowing we are secure and happy with the time we have left.
I’m often chided for not spending my wealth. I just tell those folks that I do spend my wealth. I spend every single dollar every day. What do I buy with it? A good night’s sleep.
Some might also say that you're throwing away a lot of money!
But you earned it!
Stay healthy!
@@CarlWithACameraPrecisely how I feel!! I get to use each dollar twice - once for the good night’s sleep today, and then again someday far in the future to buy something I need or want. I feel no shame in double dipping like this, the ultimate 2-for-the-price-of-1 deal!
Agreed, though I don't have kids. We have a small house now and that acts as a limit to the amount of stuff I can accumulate. I kinda like it that way.
I’m 82 y/o now and I count my blessings every day. Without your health, you have nothing. If you’re rightly advised to plan early for your financial future then, you should rightly plan early for a healthy future. If you don’t do one of these, you might just as well not do either. I’ve seen relatively poor people financially AND poor health people who are just as happy as the wealthy/healthy ones. Happiness is not measured by the number of zeros in your bank balance. Your way of living your life should be commensurate with what you expect to get out of life. If those two things are opposite each other, you’ll most likely be an un-happy person blaming everyone else for what went wrong. In the final analysis, you must be happy with the choices you made and never ever compare yourself with anyone else.
There was a saying i read from a men's fitness magazine , from an elderly bodybuilder "do what you can when you can as there may come a day when you can't". While he was talking about fitness and health , i think it applies to.your retirement too.
I have no interest in spending more. Traveling greatly annoys me and I have a house full of stuff that feels suffocating. What I really want is a quiet space to enjoy in peace, which I've already built. Nothing is more satisfying to me than spending an entire day in my fruit tree orchard either relaxing or maintaining/improving that space. To heck with spending more.
We are the saving/help generational wealth gen...
Many of our conversations (my cluster) relate to learning about wealth management from credible resources.
I have learned that elderly folks like:
To be safe
To be comfortable
To be financially secure.
Not much they need (they have it already).
Ironically, they eat out less - waste money less as they have time to cook, and plan travel.
Just my observations.
The cost of a medical crisis and or long term care is the number one reason for our age groups bankruptcies.
Because boomers are bad at caring for your health.
That's exactly it--switching from accumulation to spending is a difficult transition. It's especially true when financially comfortable due to many years of living below one's means. I've always enjoyed traveling, but I now do so at a higher level. Good info and makes sense. 👍 Haha, just continued watching, "yep, that's me". 😊
Thanks!
@foundryfinancial I've watched a lot of videos about retirement financial strategies, but this one is spot on!! Thanks for pointing this out.
4 years ago my friend and I had 25k to put towards a replacement car. He went into BMW dealership intending to buy a nearly new but instead got a high spec brand new M3 on lease and paying £500/ month. I put off for two years because of COVID and continued to use my old 2009 Insignia until mechanical issues (head gasket gone) and water hoses perishing meant I needed to replace. I bought a top of the range 3yr old 10k miles Volvo S90 Inscription with a load of additional extras for 25k. Friend is on second BMW but has now spent all his deposit equity in the vehicle and will need to get either another deposit or a loan for his next car. Me I'm happy to run my car for as long as I can. No debts, no mortgage in receipt of a company pension. Working again after 3mth break and also paying 15% into Company pension which they contribute 30% will be going half time in 2025 and earning about what I was on pre retirement full time. Investing fully each year too maxing the ISA. Wife is currently working part time already 2 days a week. I'd say save early in life and make that saving a pain to access as you learn to live within your means and don't keep up with the Jone's as too many of them live on the never never and credit cards. Just one missed salary payment from ruin.
Yeah, that's us.
Just starting to upgrade to the "Club Level" on certain cruises and fly Business Class if/when it's "only a little more" (NOT when it's 75% more).
Tough to teach a moderate- spending dog new tricks.
One missed detail: Concern about unexpected health costs or long term care needs.
Our patents lived through the depression and we saw the effect on them. But we, in Ontario anyway, lived through 20% interest. So, we are leary of the future financial liabilities. We may have had cheaper home prices but the interest rates would have rotted your socks off! Plus, many homes were single earners, managing one's money was an important term.
Parents not patents!
If you make smart choices with the Medicare and your supplement, it limits the annual amount that you will spend on deductible and maximum out of pocket. IOW, don't sweat the health care costs. LTC is costly. However, I saw my mother not enjoy her money only to have it all go to the nursing home, then she went on Medicaid (welfare). The difference in care between self pay and Medicaid is minimal unless a person is a millionaire. Enjoy your money, and let your kids earn their own.
Long term health care at age 60
Both my parents grew up during the Depression, and I grew up with their frugal habits. Even though I am a multimillionaire with no debt, I still wash out and re-use plastic bags, and try to reuse aluminum foil🥴
Even though I am a deca billionaire , I replied to your comment. I agree to what you said. I even cut my toothpaste tube into half to get the last ounces.
Same situation with my parents. I learned to live within my means and enjoy life with this strategy.
Same here,but not rich😀
Same
My dad
I'm an Xer (albeit on the older side of GenX!), but this totally describes me! Every one of those markers.
the greatest sense every day is knowing that you got it covered, that feeling is better than any car, boat, or plane those feelings are short-lived.
We didn't wait and retired at 53 and 51. The money still grows because we don't need anything, are debt free, and really only spend extra to travel....especially South during the Winter.
How much did you retire with
Really excellent advice. "Have a purpose for your Money cause you can't take it with you. "
Simple. Don't try to keep up with your neighbors with their fancy lifestyles and most importantly live bellow your means. In our society, we are unfortunately judged by the car we drive. At the end of the day most of those folks won't be able to retire and are saving nothing (I'm always blown away at how little my neighbors and friends are saving/investing.....if at all). I feel good knowing that I'll be able to close up show in my mid 50's, simply because I put together a plan in my 20's.
I agree with you 100%. Especially on the car thing. It blows my mind to see this idiotic behavior of trading in a car every few years to continue having this NEVER ENDING monthly payment just because you want to impress folks.
@WangOChon You're wise.
@@IamGroot786😮
While I don't have a goal to leave a lot money to anyone, I'll happily do so before spending for its own sake. We know our values by now, so it's not a fear of spending but rather an immunity to romantic consumption.
Thanks, Kevin. I needed to hear this. Im in the same position, plus a few things more. I'm not frugal or stingy but at 60yo I have everything I need. Could buy another fancier car but it doesn't interest me. I could have a newer kitchen but happy with my fully functioning 70s kitchen. I love travelling and that's where the money will go 😂😂😂😂😂😂 thank you again ❤❤
After accumulating wealth for so many years you become conditioned to saving, investing and frugality, then decumulation is hard and it can even bring about sadness…
I’m 71, own my home, have pension, social security and a hefty brokerage account after saving and investing 20 % of my gross income since I was 25 years old…I have a $30,000 year international travel budget… health is good too!
I find that the big question, spend on what? I am by nature a minimalist and have never wanted things or travel etc. I'm basically quite content. I can see the likelihood of dying rich (which I don't want) but how to avoid it? Even buying a nicer home isn't really spending the money, it's just locking it up in real estate as opposed to stocks etc., it's still not gone.
Excellent!
Kids? Spouse? Pets? Random acts of kindness? What a gift to find a cause and be a philanthropist..
@@redonionsyummy no kids, no spouse, no pets, but, yes, gifting would be a good use.
I support poor and suffering people in Uganda. There's nothing like knowing every dollar you give is easing the pain of real people who otherwise couldn't help themselves.
@@adm58 life is short..support others trying to create value (ie a start up business) that is something you are passionate about? Give to search and rescue or other local volunteer organizations? I think that's what I'd do if I were in your situation.. how cool and congrats to you!
That's pretty much me. Grandfather was a banker, dad was a stock broker/ business owner. I was a lowly union guy😁, but I was able to bail when I was 49. I enjoy making $ more than spending it. I know I'm weird...
Not weird at all. 😊
Sounds like you did well. Congrats!
We meet all the indicators and we know we’re well off financially. We’re even growing our wealth in retirement, but we don’t have desire for material things. We love the peace of mind of knowing that we don’t have to worry about running out of money. If we leave most of our money to our children, that’s great too. The most important thing for us is financial security.
I'm not a Boomer (1966) but I am retired and I took a 20% pay raise in retirement. I maxed out my contribution to 401K and HSA and I was used to living on about half of my income after tax.
Amazing channel. I’m so glad I found it. It’s the first channel that talks about enjoying life. Thank you. ❤
My wife and I are retired baby boomers. Low interest rates you say? When we were looking for our first house in 1982, the mortgage rates were 18%. We waited until early ‘83 and our first mortgage rate was 12 3/4%. We built a ranch house when we retired and carry $140k mortgage; we can afford the monthly payment. We bring home more now than when we were working but not drawing down any investment principle. About $2.4MM in net worth. All good.
Another sign you're doing pretty well is you watch Kevin Lum's videos. I doubt many spenders do.
I am 27 and i just started my ROTH IRA and deposited the max for 2024! I feel stupid for how long it took to get my life straight. The problem here is, what is the best way to invest the money to grow for retirement?
Research, research ,research. Dint listen to what your friends do.
@@valbushon8392one thing Dave Ramsey said, ( before he went all a**hole MAGA) was to not take advice from broke friends or broke advisors.
Keep putting into the roth ira and max it every year.
Diversify. Spread your savings into several different Roth funds. Consistency is key.
@@margaretr6847 I have one ROTH fund, but that fund is diversified over several ETFs.
This is almost 100% exactly what Dave Ramsey says, Financial Peace, and the 7 baby steps! I already have that smile watching people drowned in their status crap! Live like nobody else, so someday, you can live like no one else!!!!!
Many boomers have multi generations that we are helping financially! Aged parents, children, and grand children! Now add the fear of future cuts and cost of living its hard to splurge!
I don't have a lot. But what I do have is good health, a decent pension at $70k a year, no debt, medical insurance, about $200k saved, and a couple of properties mortgage free. I take in more than I spend, and yes I save too. I just keep flipping the $200k in short term CD's and use the interest earned for major purchases and maintenance on my properties. Works for me.
Thank you. I really appreciate you sharing your knowledge and wisdom. It helps. 😊
Yupp, that's me/us . . . .
All you said and all your recommendations with one caveat:
Many of us have less than 100% surety that SS will pay out in the future as it has paid out in the past
e.g. - "means testing" or higher taxation of
Meanwhile, I am converting IRA => Roth IRA to the top of the 24% bracket.
Thanks for sharing these insightful indicators, Kevin!
Baby Boomers have been SAVING since we cut grass and had lemonade stands to raise money, when we were young kids!!
No, you boomers have used your political leverage to run up asset prices.
Amen! And selling crocheted ugly nylon potholders to rich neighbors!! At age 11!
Wow, you were so lucky. Lawnmowers, lemons and a nice neighbourhood
@@SimoniousB Everyone has a reason for not succeeding.
HA!!! Since I was 5 and my parents took me to the bank to open a passbook savings account. If I got a dollar for my birthday I would save half of it. A $5 bill from my grandparents at Christmas? Save half of it. (For the youngsters in the audience, $5 in 1956 had the purchasing power of $57.44 today.)
And compound interest is one of the wonders of the world.
We paid off two houses. The one we live in and the one my office is in.
I had to retire due to fibromyalgia and I plan to ( and learn to ) spend my money that we accumulated over the last 40 years. Plan to collect social in two years. Getting 3900 a month. He is right in that when you learn to live below your means all these years you tend to live below your means in retirement.
You just described me perfectly. I don't need or want anything. My home is 70% paid off at 2.4% mortgage (why would i pay that off?) It doubled in value in the last 5 years. I averaged 9% returns while maxing savings with company match 401K for 40 years. I am up 17% this year in my investments. I am flush. I still work and make a high end executive salary-- because I like working. It is where my friends are. No idea what else I would do with myself. Now I don't want anything lol. And the last thing I want to do is travel. I have been traveling for business since 1988. I wear jeans, go to Costco, buy in bulk, and have two brand new paid off vehicles. My social security and medicare are just sitting there and I am 67, so 100% eligible. I have two small retrirement pensions I collect as well for walking around money. Not complaining, I am very lucky, but here i sit, commenting on your video. Maybe I should buy a smart TV, but I don't think I could work it. Can't play golf, my elbow is bad. Ride my bike, workout at home (not even a gym membership), and my credit cards are zero. I still mow my own lawn and do most of the work around here myself. But I did get my wife a housekeeper, probably our only luxury. My kids are both exceptional professional people, doing great in their careers. If I die, they don't need my money. Just for fun, I bought 4 bitcoin at $2500 each. It is now $60,000 each. So--what would you do?
My sister often repeated that since she had no kids she didn't care about leaving money to anyone. Which was her right. The problem was she was a spendaholic. And she didn't time everything to have her last dime in her last hour. She ran out of money 10 years too early spent her last decade on the social security at the 62-year-old level, scrabbling for food, and not really able to run a car. Keep a fat cushion if you can. No one's coming to bail you out and a lot of people have their hands out to take what you have.
*I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone's that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.*
That's awesome!!! I know nothing about investment and I'm keen on getting started.
What are your strategies?
You're not a boomer
A good sign someone is NOT wealthy is they drive a flash car (financed), they wear designer labe clothes (credit card) and they eat out a lot or get home delivery food (credit card) and post lots of pictures on social media about how “happy” they are.
I do all of those 😅 and i retired at 53. Oh, apart from the social media 😮
Template for the $ drain hole for sure
6:55 With each age there's a break even year for the larger amount. For me starting at 67 would take 13 years and starting at 70 would take 12 years. This does NOT account for the fact that delaying in either case would keep my wife from drawing her full Spousal Amount. It also assumes that the person has nothing better to do than to sit in their cubical pushing buttons (or whatever they do). I plan for 20 years in retirement, no more. This is my plan, not because I want to check out, but due to family history and because even if I would run out of money by 85 years of age, I would still have my SS and my pension.
Later Boomer here. I plan to wait until 70 to take social security. In 3 years my house will be paid off. I may work until early 70s (my family lives into late 80s and 90s -- my 91 year Aunt still drives and travels), I enjoy my work and am in good health. I'll make the decision when I hit 70s. With my house paid off and no debt, I an easily cover basic expenses with social security, so I would have more than enough saved at 70 to retire then. Freedom is when you can make choices!
nothing in life is guaranteed.. spend now… do what you want to do now.
It's really gratifying knowing that I can fully live off my modest projected social security amount easily. This gives me more freedom to start spending down my nest egg in early retirement.
My wife and I drove used cars while our friends upgraded their automobiles every 3-4 years.
Now, we're both retired, 😊and they're still working.
Perhaps they enjoy working. I found when I reached the point where I did not have to work, work actually became enjoyable.
Kevin, THANK YOU for your videos. We've learned a lot from you. As much as anything, your information has helped ease our minds about having enough money.
Glad to hear it! Thanks for taking time to leave a comment. I appreciate it.
Great video and really spot on...thanks!
Thanks, Mike!
Happiness is a well kept secret but, I think as people get older, they figure some things out on there own. People figure out that the key to being unhappy is focusing on what you don't have/aren't getting. You learn to live in the now and to ask yourself, what do I need to be happy in this moment. Sure I have "financial experts" telling me I'm doing it wrong, if I had your money, I wouldn't have it very long. Happiness is a choice but, it has nothing to do with money or what you buy with money. It's being able to say, there is nothing I need to be happy in this moment.
Hindu/Buddhist way!! I am happy for you
That sounds kinda like Buddhist philosophy. :)
@@Eric-Marsh I found Buddhism in my teens, stayed with it long enough I trained myself to "find my center". I was in my 60s before I found the scientists that study happiness, Dr Robert Holden, Dr Laurie Santos (free Yale Happiness course) and there are others. Learning happiness is huge.
Haha you described me. No debt, paid off house and my financial advisor keeps telling me I need to spend 40K more a year then I told him I will busdget for.
I also have a full brokerage account outside my retirement funds.
I feel great with my position.
This describes both my parents (and my wife's parents) exactly. We've mostly inherited these tendencies.
Once frugal always frugal. I have always been frugal my whole life. I still enjoyed travelling in luxury (exotic places, first class flights etc). This allows me to build up retirement savings and I'm planning to retire in 2 months. The thing is I will never my frugal way to live my retirement life. I prioritize 'value for money' and I will always be that way.
My money keeps growing and I have more than I ever dreamed of having. I traveled so much when I was younger that I am done with travel. My lifestyle doesn't cost much and I am still working on spending more money. The crazy thing is in 8-10 years it will double in size at the present rate of return.
I went to the doctor and it cost $365 for 15 min. visit. That means they charge over $1200 an hour. If you are concerned about losing wealth fast poor health will do it.
So true about living below means. In order to determine if i could retire early, I tried living on what I thought I could manage and invested the rest. Having seem my parents barely manage through the 18% mortgage, grand parents who lost everything in war, I am glad I learned to live frugally. I can make my own coffee and despite 6-figure salary, could never justify the cost of a pizza. Instead, i used some money to travel, jelp family.
We also worked second jobs and OT hours to save for our future.
Excellent, useful advice and relatable video! Thanks, a boomer here and set to retire 🎉
Thank you!
Retirement planning can be quite overwhelming, especially when it comes to choosing the right investment options.
I'm 52 and paid off my mortgage 5 years ago. I think it's easier for some people to be frugal. I usually cook at home. Dining out causes weight gain. I think dining out is where most people waste money. I drive a 2010 Altima. I love the car. I like Corvettes but it would probably be in the garage most of the time. I clean my own house. I would be embarrassed for a stranger to see my house dirty. I mow my owm lawn. My neighbor has a zero turn and cuts one side because it only takes a couple of minutes. I have a small vegetable and fruit garden. I worked part-time at the golf course when I was a stay at home Mom. I love the people but I wouldn't even golf when it was free for me. Trips would be nice but its hard to find someone to go with. People my age are either broke or sick. Hoping to change that.
I just stay at my local shopping centre for half the day nearly every day, that way l don't have to use up electricity etc at home. Plus, staying at home is boring! I just love my retirement years of hanging out there, watching movies on my phone while it's plugged into my power bank in the food court. The shopping centre is my 2nd home. My multi-million dollar mansion 😂
@@carerforever2118 Great idea!
I’m one of these baby boomers with a tiny issue. We have autistic daughter and my concern is having her taken care of when we pass or no longer able to take care of her. Any suggestions?
"You should get busy spending your money..." - that's fun to hear.
So after taxes and medical covered (I'm fully medically covered by VA, my wife by Tricare). Our first year of retirement at age 62 (for me), we will take home just over 100k. I won't take Social Security till sometime between 65 and 67 years old. 100k is roughly 80% of what we take home now and we will still be able add to our savings. I feel this will be a decent amount for us, and not having to pull from our savings or her TSP (401k) will be nice too.
When we downsized last year, we could have paid for the house without taking a mortgage, but that would have in essence tied up most of our wealth, just to leave it to our children. So we took out a $100,000 mortgage, and are now able to splurge on some of the small things.
Wife and I married in college 50 yrs ago. We started with zero, living paycheck to paycheck. Oftentimes, we had nothing left between paychecks after paying rent and bills. Once I got a job after graduation, we tried to save what we could and later funded our 401(k) the max each year. We did all our own home and vehicle repairs and used grocery coupons. We took very modest vacations with our kids perhaps every 3rd year. We never smoked, drank coffee or bought alcohol and rarely ate in restaurants. Wife did not work outside our home. We also made significant (for us) charitable and church donations each year. We retired with a 7 figure IRA, substantial savings, zero debt, 3 nice vehicles, 2 power boats and a large home. We are enjoying traveling and spending time with family and friends. We never expected to retire in such good financial shape.
It can be done. It takes planning, discipline, buying what you need and not everything you want, shopping for deals, not trying to keep up with the neighbors and not throwing away your earnings at Starbucks, bars, restaurants and expensive vacations. Spend less than your net income.
I need a CFP for retirement purposes; how do I go about finding one?
I have plenty of money but find it difficult to spend it. Thats where my wife comes in and she will spend it wisely and always looking for value. Im always looking at the crab legs that Costco has for 10.99l.b but I find it hard to pull the trigger. Im your typical millionaire next door.
HA !!! I remarried 6 yeara after I retired and now her son has two boys, 5 and 8. Grandma plus grandsons = SHOPPING.
Now a days I don't think too much when spending on food. It not going to make any diff in my life style and I am savings quite a bit by cooking at home than eating out.
Nope
The possibility of Social Security having problems in 10 years is a major reason to not squander a/o spend less now.
63 still working saving 23 percent, go on great vacations.
I am personally scared. I am SAHM with MS. Talking about future retirement is scary especially with my health.
Great information thank you for sharing it
I know exactly "where I stand." I have detailed records of every cent for over thirty years, pretty much ever since PCs were invented. You can too. Just start now.
Love your encouragement. Thank you. I will start today. ❤
Personally, I do not care how many cents I spent in 1994.
Yes, my parents grew up in the Depression. I very much remember stagflation during the Carter presidency. I first entered the job market in the early 1980s, in the midst of a recession. I remember recessions in the early 1990s. I remember dot bomb and was laid off after 2001 (but found another job right away). I remember the real estate crash of 2008.
We have no debt. Our house is paid off. We have significant savings both in retirement plans and outside our qualified accounts. We do spend money -- we have nice cars. But we rarely eat out. We don't do a lot of travel. We will be retiring in the next couple years.
Very well thought out and delivered message. Thank you for your content.
We are the quiet, millionaires next door, settled exactly where we want to be and have finally realized we have plenty of money to spend now, while we are retired with no debt or heirs at 63. Just took a $30k vacation, four times more than we’ve ever spent before, and it didn’t hurt our bottom line at all. Enjoy today the results of your hard work and past frugal living! You never know when your situation may change.
Spending too much vs too little is a fine line. I don't want to spend money just to be spending money. And we have LTC risk, market risk, etc. so don't blame us too much for holding on to it a little too tightly. However, I'm trying to find that boundary, that fine line and make sure I'm doing what I want to do and not wasting the gift that God has given me (us). It is not a pick a spending rate and forget it. When you are trying to ride that line, how much you spend has to be watched and managed.
This video relates to me! I am too scared to spend and I think I am good shape. My financial advisor says I am worrying too much and can retire now or work just one more year till 63. I just turned 62, single, no kids, ZERO debt, healthy, with a bit over $1 million in retirement savings and I projected my monthly expenses in retirement to be right at $4000 a month. I have a added bonus that my current health insurance covers continues in retirement, for life. I do NOT plan to leave money so it will be spend down. If I take SS at 62, it is showing as $2100 a month. Can I retire now or very soon and not run out of money till early 90's or so?
Great video! Appreciate the info you are sharing!!!!
My pleasure! Appreciate the comment.
Also... there is so little 'stuff' worth buying. Even experiences have become disproportionately expensive, to the point where you question the value. I try to compare the value of something to the true cost in hours worked... rarely do I find things that provide more than the associated costs.
A nice review..I'm feeling pretty righteous right 'bout now.. ;-)
TBH I was nervous to hear the list. It boils down to self discipline. I'm still working on #4, but I feel a lot better about retiring. Thanks Kevin!
Great video, thanks. So many points that apply to me.
Thanks Kevin
30yrs ago my wife and I started having $ 100 mth taken out of savings automatically and put in 4 mutual funds with a well known mutual fund family. It alternates and goes into 2 funds per mth.($50 each)Over the yrs I have switched funds acouple times but basically let it ride and have not paid a lot of attention to it. This has nothing to do with our retirement accounts and we have never touched it although it was there just in case. As we speak it has $115,000 in it and we have never missed that $100 mth. True testiment to dollar cost averaging. Now, could a more savy investor turned that $36,000 into much more. No doubt , but for us it is like found money since we just let it ride.
This is helpful. There is a lot of fear mongering out there, and overly simplistic rules of thumb like the 4% rule can create a lot of unnecessary anxiety.
Thank you, for sharing this information. Think there are two groups of people here, the first group does not have a pension large enough to pay their current and projected in retirement monthly bills. The only way, they earn money is through their investments and nobody knows what will happen in the future. The second group is like myself, we have a pension to cover our monthly bills but, we just do not want to spend more than we bring in each month. Sorry financial planner, no investment commissions for you (smile...smile).
You are fortunate you had a career with a pension. Most people don’t have that option any longer.
@@joetruth7823 I keep hearing that most people today, even working in office jobs no longer have a pension plan. However, whenever I ask on You Tube. So, please tell me the type of plans that are being offered in detail, I get no replies. In my 30's, I worked for a private firm that provided all employees a pension along with a 401(k) with a 2 percent match. From the age of 43 to 63 (20-years), I worked for a City where, you had to pay a portion of each paycheck into the pension plan and, they also offered a 457 plan with a 3 percent match. Please let me know, what type of retirement is being provided or offered in 2024, for newly hired office workers.
@@joetruth7823 My neighbor is a teacher, he was shocked when I told hin no one at our company had a pension. He literally did not know what a 401k was.
401k plans are the pensions of today, and can generate as much or better than a pension if you max out contributions over a long period.
@@johng4093 While, technically your comment is 100 percent correct. Guess that, I just have a "pet peeve" whenever, someone says that a 401(k) or 403(b) is a replacement for a traditional pension plan. This is because, I worked in the private sector for 15-years and had both a traditional pension as well as a 401(k) with an employer 4 percent match. Then for the next 20-years, I worked for a City which, again had a traditional pension and also offered an optional 457 plan. Now in my early 60's, I retired last year with the following monthly sources of income: private sector pension, public sector pension, IRA, 401(k), 457 plan, social security, and my personal savings (smile ... smile).
I retired two years ago and meet all of your criteria although I notice you don't put any numbers on it. Most of my wife's and my wealth come from our house in addition to 401Ks over the years.
But you don't really mention the two big unknowns for every older American - health costs and long term care costs. Our private health care system seems designed to suck all our savings before death. If we have a decent Supplemental insurance plus Medicare, what is our likely total expense if we get a serious long lasting disease? And if we survive into great age, how much do we need to save for our long term care?
I'm happy to spend some money on foreign travel but the rest can go to our kids. They could use some now but we don't know how much to hold for these uncertainties.
Was with you until the end when you mentioned having to be a millionaire so now back to living below my means and not spending any money
Interesting video ... I've always wondered how I'm doing ... I guess I'm doing pretty good because I checked all 5 boxes.
I waited until about 49 to get serious about saving and have managed to save 1.2 million at age 66 still working but want to call it quits at 67 in 10 months. I have lived on less than what my SS will be for many years now in fact some years saved over 70% of my income. I have no children to leave anything too so I could just spend I guess but being frugal is so ingrained in me now it will be difficult! Deciding where I want to live on planet earth for retirement is my big problem now.
I just stay at my local shopping centre for half the day nearly every day, that way l don't have to use up my electricity etc at home. Plus, staying at home is boring! I just love my retirement years of hanging out there, watching movies on my phone while it's plugged into my power bank in the food court. The shopping centre is my 2nd home. My multi-million dollar mansion 😂
Thanks Kevin 🍻