RETIREMENT EXPERT: Signs You're Doing Well Financially (Even if it doesn’t feel like it)
ฝัง
- เผยแพร่เมื่อ 17 มิ.ย. 2024
- ✅ FREE RETIREMENT ASSESSMENT ✅ www.foundryfinancial.org/reti...
In this episode, Kevin discusses a trend he’s noticed: many people are better off than they realize. He outlines five key indicators that suggest you might be richer than you think and explains how recognizing these signs can significantly improve your retirement plan. Join Kevin as he delves into these indicators and provides actionable advice to help you make the most of your wealth during retirement.
0:00 - Introduction
2:10 - Why Baby Boomers Aren’t Spending Their Wealth
3:20 - Key Indicators of Being Better Off Than You Realize
3:48 - Indicator 1
4:07 - Indicator 2
4:53 - Indicator 3
5:27 - Indicator 4
6:10 - Indicator 5
7:00 - Impact on Your Retirement Plan
7:50 - Spending More in Retirement
8:50 - Giving Money a Purpose
9:40 - Conclusion
Free Retirement Assessment // foundryfinancial.org/get-started
Private Facebook Group // / retirementforum
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ABOUT ME
I’ve always been passionate about personal finance, investing, real estate, and helping people find the freedom to live their life with purpose. But when my dad died in 2015, I tried to help my Mom find an advisor to sort out her finances. Instead of a helping hand, I found an industry of financial advisors dominated by glorified salespeople working on commission - pushing products that were not in my mother’s best interest. Or advisors with minimums that shut-out all but the ultra wealthy. Disappointed with the options, I took matters into my own hands and launched Foundry Financial, a wealth management firm with transparent pricing that specializes in helping provide clarity around money - so you have the confidence to make smart decisions.My goal is to help a million people retire without worry!
📅 THE BASICS OF RETIREMENT PLANNING
Retirement planning has several steps, with the end goal of having enough money to quit working and do whatever you want. Our goal is to help people master retirement and retire without worry.
Step 1: Know when to start retirement planning. When should you start retirement planning? The earlier you start planning, the more time your money has to grow. That said, it’s never too late to start retirement planning. Even if you haven’t so much as considered retirement, don’t feel like your ship has sailed. Every dollar you can save now will be much appreciated later. Strategically investing could mean you won't be playing catch-up for long.
Step 2: Figure out how much money you need to retire, The amount of money you need to retire is a function of your current income and expenses, and how you think those expenses will change in retirement.
Step 3: Prioritize your financial goals. Retirement is probably not your only savings goal. Lots of people have financial goals they feel are more pressing, such as paying down credit card or student loan debt or building up an emergency fund.Generally, you should aim to save for retirement at the same time you're building your emergency fund - especially if you have an employer retirement plan that matches any portion of your contributions.
Step 4: Choose the best retirement plan for youA cornerstone of retirement planning is determining not only how much to save, but also asset allocation. It can make a massive difference in your retirement plan.
Step 5: Select your retirement investments. Retirement accounts provide access to a range of investments, including stocks, bonds and mutual funds. Determining the right mix of investments depends on how long you have until you need the money and how comfortable you are with risk. It’s often helpful to talk with an adviser to discover the right mix of stocks and bonds.
❣ SPONSORED No, this video was not sponsored.
⚠️ "DISCLAIMER:⚠️This is not financial or investment advice. This Channel is meant for EDUCATIONAL AND ENTERTAINMENT PURPOSE only. None of this is meant to be construed as investment advice, it's for entertainment purposes only. #retirementplanning #retirement #passiveincome
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....
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😀
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.
Great Video!
Indicators you are better off than you think
1. No interest in status
2. Live below your means
3. House is paid off or nearly paid off
4. Have an emergency savings & a non-retirement nest egg
5. Sizeable amount of Social Security (delayed)
Good breakdown!
Wah there! That sounds a lot like common sense. Be careful, pal. I'm pretty sure that's illegal in America.
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.
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
In my last 5 years of working, I was saving almost all my income and living on my wife’s modest teacher salary.
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 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!
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
@@kinggeek1960I’ve been spending $25-30K a year on travel and it is more than enough travel!
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.
I am beyond caring what my neighbors drive. I love my 21 years old Toyota SUV that I maintain (bought it new, so I know its state)
@@WangOChon You're wise.
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!
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.
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.
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…
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.
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.
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.
Another sign you're doing pretty well is you watch Kevin Lum's videos. I doubt many spenders do.
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.
Great video, thanks. So many points that apply to me.
Really excellent advice. "Have a purpose for your Money cause you can't take it with you. "
Very well thought out and delivered message. Thank you for your content.
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!
Amazing channel. I’m so glad I found it. It’s the first channel that talks about enjoying life. Thank you. ❤
Great video and really spot on...thanks!
Thanks, Mike!
*“She restored my finances.”*
The first step to attaining wealth is figuring out your goaIs and risk toIerance - either on your own or with the heIp of a financiaI pIanner, and foIIowing through with an inteIIigent pIan, you wiII gain financiaI growth over the years and enjoy the benefits of managing your money.
I am fortunate I made productive decisions that changed my finances (gathered over 1M in 2years) through my financiaI planner. Got my 2nd house in Feb, and hoping to retire soon.
Great information thank you for sharing it
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.
Glad to hear it! Thanks for taking time to leave a comment. I appreciate it.
I'm afraid to retire, currently 60 with 800k in savings, mortgage free home, 18 monthe emergency fund and working 50 plus hours weekly.
Soon to slow down to 40 long term then more slowdown to 30, I drive commercially so my job is extremely secure, hard to back away from a 35 year career.
Blessed and thankful.
Get out while you have time & health on your side. You will be 70 in the blink of an eye.
@@Lookup2Wakeup My husband is much younger than me and we constantly argue about what constitutes a vacation - not only that, but his company of 25 years did mass layoffs. So what do we do? I don't want to wait til 70 because longevity isn't in my family.
I worked a career job, indoors, from age 24 to 62. By then I had enough to delay SSA retirement until I was 66. You will know when it's time to give them your notice.
He's right. Time is the one rsource you can never get back, it doesn't matter how much money you have.
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.
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.
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.
Excellent, useful advice and relatable video! Thanks, a boomer here and set to retire 🎉
Thank you!
Interesting video ... I've always wondered how I'm doing ... I guess I'm doing pretty good because I checked all 5 boxes.
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!
This video made me smile with excitement. 😊
Thanks, Jeff! I’m excited to help you spend some money. :)
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. ❤
Retirement planning can be quite overwhelming, especially when it comes to choosing the right investment options.
Great tips!! Thanks so much for sharing. 💗 Die with Zero is a great book to help balance out making wealth along with enjoying it!
Our parents lived through the Great Depression. My mom would freak out if we spent our 25 cent allowance money. We had frugality drilled early!
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
Yes life is too short.
The fear comes from being raised by depression era parents, which they had no control over, yes you are right. If I didn't know better, I would have thought that you were and/or have been watching me, Ha, HA. Everything you have said is spot on. The fear also comes from hearing the financial gurus, in the media constantly telling people, that they need 1 million dollars to retire and spreading fear about everyone running out of money. This fearmongering has crippled people to inaction, which is a shame.
I've worked with people who have this fear. I decided to retire 4 1/2 years ago, and many of my co-workers are still working. It was the best decision I ever made, and I realized that I didn't need as much money as the 'money gurus' say that I needed. If you change your lifestyle, then maybe you will need more money, but if it is relatively the same, with just a few changes, you will be fine, but no one tells people that. They do the opposite, and scare them to death, which is criminal.
Good idea 💡
Take the whole family to Hawaii.
🤔😉
There's a mental side to this that no one talks about. Have you ever sat down and tried to explain financial management and retirement planning to a millennial? As soon as you start talking about it, their eyes glaze over, they start to get nervous and Mumble something about anxiety. I don't know what happened but I'm pretty sure America stopped making real men back when they stopped making real trucks. Financial management is about making tough decisions. Weak people don't do that.
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.
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.
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.
Yeah I'm too young at 52 to spend more. It's saving and investing for me so I can leave as much as I can to my children while teaching them how to do much of the same and give them the assurance that they can enjoy life more than me.
Inheritence is possibly there for me but i like to consider it as a "distant uncertainty". Not worth the gamble when planning 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.
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.
Yes
I will reach my FRA (66 & 8) this fall and I'm delaying taking my SS benefits until 70. My spouse is 3.5 yrs younger than I am and is receiving SSDI. Can I collect from her SSDI while I'm delaying and then switch to my benefit, which will be considerably higher, without reducing my benefit when I switch to mine 3.5 yrs from now?
I have to admit, I hate those people who at the end of life give away all of their money to charities. Let’s put thought into it. How horrible of a person were they in life that at the end of their life they have no family and no friends or no human beings that they like enough to gift their money to other than giving it all to charities.
Some charities do great work. But I do find it horrible that a billionaire will give away all their money to charities in the end.
I’m no billionaire but I have no kids by choice and most of my friends will likely die at the same time as I will. Giving to charity is a way to reward the cause that gives you joy or would help the most people. I plan on doing that, as I don’t want what’s left of my estate to go to the state’s unclaimed property roles. Of course, I also plan to give to needy friends while I’m alive. It’s a balancing act.
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.
Us "Boomers" are NOT "lucky". As a generation we learned well from our parents generation. We worked hard, sacrificed, saved and invested. We didn't pi$$ away every cent we earned on stupid toys, trying to impress people we don't know and who don't give a crap about us.
If it was not about luck, then the boomers failed to financially educate their children and pass all that financial wisdom...
Unfortunately I have many many friends (other boomers) who live exactly like that. Not me!
You're "lucky" that you did those things in a time period with unprecedented economic growth. Your peers in Argentina may have had the same work ethic and behaviors, but their economy didn't pan out as well.
@@JL10007406 unprecedented growth? I was very poor. It taught me to work hard and save. People complain about mortgage interest but my first mortgage was 9%.
@@JL10007406 Yeah boomers acting like they deserve to be praized while calling all subsequent generations entitled.
Will be interesting to see what happens when this boomer generation, who are said to be amassing all this money, has passed on having left their wealth to their kids and grandkids. There’ll be a name for that process and those spenders 🤔.
It will all be wasted on video games.
I am 47 and I think I fit most the criteria
Thank God I'm Asian
Hey Kevin, I just watched your video and I must say that it was really informative and well-made.
I was wondering if I could help you edit your videos and repurpose your long videos into highly engaging shorts? I can also make high CTR thumbnails for your channel
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.
I spend the required distribution of my 1.4 mil IRA. 74 and I still do not want the tax hit.
It's silly to spend less than you take in during retirement. If you have a pensions that covers basic needs , you need to plan to spend most of the equity in your house. A HELOC for the first 10 years to finance your small luxury spending, then either a reverse mortgage or downsizing will provide the cash for the next 10-15 years and that's it.
I appreciate what your saying but really the cause of this problem is the government and banks. Nobody wants to spend their retirement on the leash of the gov, banks or utility bills.
Best retirement for the 95% is get any government job period!!!!!!!!!!
the fear is running out of money and Sequence of Returns Risk impacting retirement in the first 5 years - perhaps those people would be better served with income annuity?
What difference does it make? In the end you’re dead and won’t care. You’ve already done what you want to do and you know you can afford to go on that trip but do you really want to? You may do tax planning or you may not but you still have plenty of money to be comfortable. Worrying about any of that is just not worth it if you don’t have to.
It sounds like you spoke to my folks ...LOL! My folks retired 5 years ago with about $500K in savings. Their monthly income is about $5K (SS and a small pension). They take 2-3 nice vacations every year, drive a nice car, etc. They have never taken a penny from their savings! So essentially their savings is a BIG emergency fund that will keep growing every year. How do they do it! Simple, they have ZERO DEBT! With no mortgage, no car payment, no credit cards, etc. they have an amazing retirement! Who needs $1M to retire? Their savings continue to grow every year WITHOUT additional contributions and it generates about $25k/yr in dividends which they re-invest. Also, since their joint taxable income is less than $80k/yr. they can take cash dividends any time they want TAX FREE! Yes, they are better off than the know!
The reason for boomers hoarding money is the fear of needing professional care at the end of life. And sometimes that’s valid. My parents had a very nice nest egg until their health crashed. Assisted-living is expensive, and they’ve just about burned through all their savings. 😢
2.8% 🎉
The uncertainty about what the government will do about social security and the growing government debt don't help.
Baby Boomer here from 🇬🇧
This is so true & is 99% me.
I revamped my Will recently & found out that my nett worth was £1.1M....😳
#1 sign of doing well financially is having a TH-cam financial advisor... ;-)
Sorry to say but this video doesn't sound like great financial advice. With the US debt continuing to climb, de-dollarization, inflation - it is not safe to spend without a significant reserve to keep up with the poor monetary and excess spending by the government.
That's why casinos are increasing in different states. Trying to capitalize.
The main reason for people not spending more money is worrying about the future. Whether its their own future or the future of their next generation.
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.
Traveling has become a hassle with airports. Better to stay home.
no
This is a great video. Sitting along side my fear of not having enough in retirement is the fear of being overly focused on savings and building wealth and missing out of living while I was young enough to live. My wife and I have enjoyed our trips and though we took them without taking on debt, the expenses did stunt the growth in retirement assets. I don't regret them especially since my wife has already started pulling back on some of here hobbies because of health. Won't get those times back. There's got to be a balance.
I agree. We are both 70 now, took an amazing trip to Iceland this year and afterwards I convinced my husband that "we're not getting any younger" and to take A LOT more trips while we have our health. Going on our first cruise in a few months.
@@daryld.johnsonartist2179 Iceland is on my bucket list. Would encourage checking out the desert southwest, AZ UT, NW. All were a blast.
This is simply the way Dave Ramsey's teaches to become wealthy. It works.
I’m 61, will turn 62 in August. I left America for The Philippines eight years ago, at 54, with $1,557,000, all invested in a small list of high-quality stocks, Apple being the largest holding. I’ll be returning to America next year to buy a home in North Carolina and then split my time between there and overseas travel. I currently have, through growth in my investments, $4.7m. I’m budgeting $700k as the upper limit for a home, and another $100k for furnishing and vehicles (Mazda CX-50, a couple motorcycles, bicycles) and then I’ll be set. My remaining capital can continue to remain invested, throwing off $80k in annual dividends.. social security will add $30k+, depending upon when I take it. $30k is if I take it at 63 when I initially get back to America next year. So this single, youthful and fit boomer intends to continue to grow his wealth while also enjoying travel and a comfortable luxury home.
Wow. So you retired with 1.7 Mil but has it grown to 4.7 Mil even after retired?
My $2M retirement account grew by only 2% last year due to rebalancing driven by fear and uncertainty. What are the best alternatives to ensure a financially secure retirement and achieve peace of mind after 22 years of hard work?
At a point like this, when the pressure is already on you to retire, its best recommended you seek the services of an advisor, as this allows you make smarter investing decisions.
2 million? Please
Even with your eyes shut you should be achieving 7%. It seems difficult to believe you now have 2 million without having a bit more savvy with investing.
@@jerrypedrick6206He's a poor next door multimillionaire.....😂
I'm stressed; I have zero dollar on my name saved, no retirement fund, no 401K; my only saving grace is a military pension, healthcare, and a passive income on two properties @ 45 years old. I would like to think I'm in good shape; but, it keeps me up at night. 😅😅😅.
I started saving 20-25% of my income when I was 23 yrs old. I retired from the military after 20 years. I continued to invest and keep debts to zero besides home. I retired at 46 yrs old and have been retired for 4 years. 2.3 million net wealth.. with $6,700 a month income streams monthly. My wife's income is 55k a year. We live a great life...
There are more people over 65 living in their cars than ever before.
Good observation!
2008 proved that you can loose 50% of your wealth overnight. Pensions are a thing of the past for most of us. Politicians keep telling us that social security is going bankrupt. So the only leg of the 3 legged retirement stool left is your 401k. The worst of the 3 legs. Subjects to fees without a guaranteed return. And subject to overnight wipe out. So yeah. Not feeling frivolous on my spending
The numbers never added up for me. I recognized this early and determined it is unaffordable to live in the United States. The number one issue as I have aged is health care. My solution was to leave the country!
I maxed out on my 401K because republicans have been trying to get rid of social security my whole life and I assumed they would eventually succeed. I also knew that I would be getting no inheritance.
I have lived my whole life assuming that my SS would be stolen, and they still want to kill it, so my concerns were valid.
Described me to a tee…
Yeah its me. But, I think you are missing something. Spending is just not something I need or want to do. I take all the vacations I want to. (about 6 a year) I do what I want, live where I want, gift what I think is reasonable. drive 2 nice cars. But still only am able to spend less than 2%. So I know the portfolio will grow. I accept it. I am not going to change from someone who has for over 40 years, lived below my means. To someone who has a goal of spending money. Yeah, I might add a first class ticket once in a while, (but probably not.) No I am not going to buy a boat, or a silly expensive car. (yeah I will continue, as long as health allows to go to nice places and experience nice things.)
And if people are wondering how. Simple, besides living below my income. I invested. From my 20s. And when I received a bonus from work. I Didn't spend it. I saved and invested it. I bet a lot of readers of this, make more $$ than I ever did. (I think my top was around $140K, and many many years it was below $100K. (The first one was $10.5, although I suspect in todays dollars that is likely close to $60K) Also about 15 years ago, I came to realize my portfolio was making more than I was. So I let it. And continue tp let it do that, and lived on less than my salary. And yeah among other things I did have roommates in my 20s. And for those who think mortgage interest rates are high now. I bought my first condo at an 18.5% mortgage.
One thing that I tell people. That Charlie Munger saying is true. That first $100K is the hardest And you should do Anything you can (legally) to get there at as young an age as possible)
I had a two prong message. Someone people need to spend more, but others - like you - need to give your money a purpose. Meaning, you need a plan for what you plan to do with it - so you can be strategic, especially from a tax perspective.
@@foundryfinancial LOL, I didnt watch it all until I wrote the comment. You are right. I am aware of DAFs and likely will do some to combine with IRA conversions. It was a good video. If you lived near me, would love to talk over a beer. (my treat 🙂)
@@buyerclub2what general area are you in?
You’re missing the point. The point is, you grew up in an economic environment where you were able to amass a large amount of money. College was cheaper, housing was much cheaper, and overall life expenses are cheaper. It’s your generation that changed that for all following generations. Housing markets are way higher compared to wages, kids can no longer work their way through college with a summer job which means they start out their adult life already far into debt and overall expenses have gone way up! So thank you for that! Enjoy your wealth while future generations continue to struggle!
@@NipItInTheBud100 Sorry, I call BS. Yeah if you don't have the money you should not go to a University that costs over $50K a year. Instead start off at a community college, and then work on scholarships. Many ways to get of of school without debt. And FYI I do agree that the cost of higher ed is crazy and goes up faster than inflation. And I also agree that it is crazy that those loans are not bankruptable. And kids make these decisions frequently at too young an age. BUT it is also true that the value of that diploma is also reduced. Lots of ways to get a good paying job without a formal degree. And don't forget there are ways to get the loans forgiven.
Don't lose hope. YOU can do what I did. I started out I think with about $1K. I did work throughout high school and college. But I don't think that is required if you make some of the compromises I suggested above.
Finally I did write a book for your gen. It is called "Lessons from your Rich Uncle: Life Strategies to help you with your money" You can find it on Amazon in both paperback and Kindle.
Many people think about themselves and family only and yet know they live in a world of privilege but don’t give. You’re clever and lucky nothing outside your control went wrong. Be generous and sleep well 😊.
There is no we. My husband died from high grade metastatic prostate cancer in 2013. Glaxo Smith Kline paid and settled out of court. Save as you will but use hyperbaric oxygen therapy and IV therapy of myers cocktsil and glutathione, sauna and for gods sake exercise by swimming and walking. It’s no good to work and save and end up dying to support a drug manufacturer.
If you want to leavs a Legacy, why not nust get Life Insurancs and Spend your Retirement money on your Retirement?
My portfolio is only one or two bad days in the stock market away from being 50% of what it is and that is reality.
And they think we’re all millionaires. The stock market has such huge drops that it can make you ill watching your portfolio drop.
It has always came back and continued to go up. Don’t check it every day or every week. Monthly is fine and if you’re invested in good companies have faith in those companies to weather the storms that eventually arise. Think Visa, Costco, Nvidia, Apple, Ford, Microsoft, meta, etc.
@@joetruth7823 last time it took over 2 years just to get the lost money back. Can’t always wait that long when you need the money now
I have relatives over 65 with $0.00 in retirement. You are meeting with people with money. SS is not from the Government. They are paying us back what we put in. No way do I want to leave any money to anyone.
I’m still saving 60%+ of my income. I’m retired
It’s better to take social security at 62 and let your investments grow instead of withdrawing from them.
It is not that simple...and I see it as a "it depends". If most of your investments are in a tax deferred account (401k, TIRA) and those accounts are substantial, it probably will be better to draw on those tax deferred accounts (or do Roth conversions each year), so that when you do start taking S.S. later, your tax liability will be less. Remember, your S.S. may be subject to Federal Income taxes, which will increase your taxable income, and if you are pulling from your tax deferred accounts, which are larger because they have grown, you might have a large tax liability. But it depends on your financial situation. One size does not fit all when it comes to income taxes.
If you draw SS @ 62 then you can only make round 20k wo affecting your SS, Most folks I know make much more than that at age 62, a better plan is to wait til FRA to draw, so you won’t be dinged on your SS, plus you will be on Medicare and won’t have to pay medical insurance premiums, there are other reason to wait, such as spousal SS benefits and survivor benefits! To me those far outweigh drawing SS at age 62. I would only draw SS at age 62 if your health is declining or you quit work and you have a higher earning spouse still working!
@@markkile8215 I am in total agreement and I think that make sense for most people. And if you do stop working early, you can draw down your 401K or TIRA account(s), so that when you do start drawing S.S., your RMDs will be smaller, which will keep you in a lower tax bracket. Or spread out Roth conversions so your tax deferred accounts will result in smaller RMDs. It is a case by case scenario, though, so it depends on each person's own financial situation.
That's only true if you have a retirement portfolio big enough without needing social security and you are not doing Roth conversions at that age. Larger social security payments (85% of which is taxable) combined with RMDs in your 70s can lead to higher taxes and Medicare premiums.
But if you need social security money at retirement, delay it as much you can (up to 70).
Boomers reaped the benefits of their parents enduring the Great Depression and WW II
They were handed golden opportunity for peace and prosperity
I find it hilarious as a millennial that baby boomers are the "most concerned" generation about their retirement. I can only surmise that's because my generation has simply accepted that we don't get to retire at all, so we're not concerned about it.