70 1/2 and still working, waited to take SS until 70. Dealing with the impact of a layoff and subsequent small pension as a result, working past 70 is the best option for me. I salute anyone who can retire early.
Great cast - The so called experts using fear to sell is the lazy pathway. Also, it negatively impacts Alpha’s brand. Their marketing team may want to talk about this with sales. I may not want to re-up my subscription when it comes due. You are the man Josh! Go Army!!
I retired 6 months ago when I turned 51, It was the best decision I ever made, no more work related stress or worries, As long as you have a hobby or something to do it will fill the vacuum. Life is to short not to enjoy everyday for yourself, The key for me was paying off my Mortgage and adhering to a strict budget, I made a plan 5 years ago and stuck to it, If you can do it then do it, I promise you won't regret it.
Why keep pedaling Reverse Mortgage? Crazy! Worse financial move, anyone could make with ever increasing negative compound interest. Increasing debt as you age and using death as the exit plan to get 50 cents on a dollar of equity is neither right nor the best way to go. Nuts!
But if you have no heirs does it matter? I think about this all the time. No spouse, no kids. No plans to move anywhere. When I hit 65 maybe I should take the money... don't know
@Our Blazing World Doing the right thing has no age or condition. You either do or you don't. No heirs, spouse, or children, leave it to a worthwhile charity. Karma and spiritual laws work at any age. One of the five rules of human stupidity, the book, is to never underestimate the number of stupid people. Another says, stupidity is equal regardless of race, culture, education, experience, gender, age, or political view. We are all equally stupid.
We live in Rural area and have grown up and lived frugally all our lives. These numbers are always higher than we have ever made or had and we have lived a simple enjoyable life I have always figured it to live on SS at retirement and budgeted on that. Have never wanted to chase a dollar. We will live off 32000 SS, Medicare with supplement, no dept, own our home, and do fine. I work part time here and there if I want and we don't need anything. Thanks
At age 62 his 250k home would support a reverse mortgage line of credit of approximately 75k . This line of credit would be left untouched growing at 7.80% for 10 years At age 72 this line of credit will be worth 158k . With the growth rate of 7.80% this line of credit will support annual withdrawals of approximately $15.800 for the next 20 years I was using current intrest rates of December 2022 for this example.
Someone who needs $55K per year will need like $80k or more in 10 years due to inflation. In 10 years, this couple will be in a serious trouble if they don’t come up with any other source of income. Therefore, I don’t agree with Josh 😅
Drop ten years of COLA on that Social Security payment... the deficit at 72 is even less. Thanks Josh. Wish more folks would take a few minutes to get an understanding of Social Security.
This is great Josh! Thank you. I'm watching my parents and their friends retire. A traditional retirement planner would spazz if he saw how my dad is doing it, but it's working nicely. If my dad had to take a reverse mortgage he would roll around in bed every night, and so would many of his friends. Might I suggest a part-time job? 1 day a week per spouse at $12.00 per hr pushing carts earns $768 a month. That's $9216 per year on top of SS. It also gets you out for one shift a week, and you'll be working with young people that need your advice:) plus, you'll still have 6 days a week to do whatever the heck you want in a true retirement. Seems like less stress than a reverse mortgage to me, your mileage may vary.
According to smartasset I, 64/Single, can have combined SSI, Pension and traditional IRA withdrawals totaling as much as $40K AND PAY NO INCOME TAX (neither federal, state nor local)! Is this a great country or what!?
Great video. He is right about spending less in retirement. I think I have done so because of the restrictions that the pandemic placed on everything, and also the area that I live in, which is a very low cost of living area. My mortgage, yes, I still have one and have been retired for 2yrs and 11 months, is very low. I have more now, then I had when I was working because of the lack of expenses, i.e. work clothing, travel, lunches, etc. and transportation to and from work. If I move, I would really have to watch my money outflow, but where I am, my incoming is more than enough. Ms. B. Churchill
Josh you're totally misunderstanding the scenario. They need 58k to cover expenses per year. They have 30k in ss income per year. They're 28k short per year. At that rate their 150k in savings will be gone in 5 years and their 250k in home equity will be gone in 9 years. God forbid they have to replace a roof, hvac, or car for the rest their lives. They will run out of money if they live longer than 15 years unless they work longer, supplement their income, and/or reduce expenses. Give us the source you are critiquing.
No he isn’t. Let the 58k to cover expenses sink in. No mortgage. Itemize this amount. How can anybody be close to spending this amount with only 30k in SS. It doesn’t make sense. Their property taxes can’t be more than 3k a year for a 250k home? Let’s say utilities was 500 per month which seems fairly outrageous. 6k per year. That’s still only 9k spent. How much can food be per month or year. Insurance can’t be that high. Maybe 2k for both home and auto. What’s missing? So it seems Josh is correct in that some vids just trying to scare people with unrealistic scenarios. There are some real struggling folks out there sure but they don’t tend to have 125k in savings. Heck they don’t even have 5k. They just live pay check to pay check. They work part time. Nothing wrong either. That’s what they chose.
@@f430ferrari5 this video was about can this person with assets, income, and expenses documented in video retire. The answer from Josh should be no. You, Josh, I don't know if 58k in expenses for this person is accurate or not. Who knows maybe this person travels alot or has other expensive hobbies. Everyone's situation is different. Josh should tell viewers to define a retirement plan based on their individual circumstances rather than one based on averages and assumptions that don't apply to everyone. Almost every video josh does he tells people expenses go down over time in retirement. Not so. It depends on how much of those expenses are discretionary. My mother is a perfect example. No mortgage when she retired. Very little spent early in retirement on travel, hobbies, etc. 20 years into retirement her expenses are much higher now than when she first retired.
@@jw8578 what person? Josh is explaining this person is “hypothetical” and there is hard evidence to indicate this is the case. You can’t even counter this point. I asked you to list out the expenses in detail. A person in a 225k home doesn’t have 58k in annual expenses. Expensive hobbies now 😂🤣. Those can be cut out. Come on. And it doesn’t make any sense to have higher expenses in retirement vs working. And as far as your mother goes many hit an age where medical costs and living care go up but it doesn’t last long. It doesn’t mean 58k consistently. You’re there to help anyhow. Yes? There are those on one side of the fence who state people need 1.5 to 3 million saved which is just ridiculous. Josh is on the side of reason. Just do the math yourself. Don’t compare to others. Most don’t need as much as expected. This is for the group that decided to save. My parents clearly over saved. They can just live on SS alone.
@@f430ferrari5 correct it's a hypothetical example, a person with 58k in expenses and 30k in income and minimal assets. As I stated before this hypothetical person will blow thru their savings in 14 years unless like I said they reduce expenses, work longer, or supplement income with a part time job. My point is why is josh questioning the 30k ss or he's completely confused about the 58k in expenses. Josh should just do the analysis based on the information provided. And if he did the answer would be this hypothetical person would run out of money in 14 years.
@@jw8578 if you re-watch his vid he is highly questioning the 58k in expenses. Josh is more criticizing the hypothetical person the other vid creator is providing to support their case. Not sure why you’re struggling over this. You still didn’t itemize any of the 58k annual expenses. Even if the mortgage was there it has to end at some point but the person said it was virtually paid off. What other major expenses could there be unless it’s more “discretionary”. You even used “hobbies”. How long can “hobbies” even last. You worry about medical but if health is a concern then most likely there is no longer a cat and maintenance expenses nor car insurance. So things even out a bit. You really have to plot out your expenses and future and consider various scenarios. My future scenario no longer has my cars in it. I will sell them at age 60-62. I pocket the money but save on future insurance and registration and maintenance and gas. Just saying it isn’t right for you to criticize Josh when a realistic scenario wasn’t given. Sadly many vid creators work for investment firms. They scare people to try and save more money so it goes into the 401k or IRA pot. They make money off of it. Josh is just a financial advisor and he’s just being honest and leans more towards not over saving. It’s good to hear both sides.
It’s hard to get anything out of this video because I don’t really understand the information. Don’t know where the 30K in S.S. is coming from, maybe it’s accurate, and I guess you have to assume so, but the other figures are super sketchy. 58K?, 45K?, oh, and then some kind of taxes coming out of the 58K? No clue as to what’s really going on. Impossible to evaluate any decisions that are made by anyone, including Josh.
@@dougb8207 that’s most of the problem. And too often they’re simply not that accurate. There’s very definitely a quality problem. Got tired of wasting precious time determining when the content was useful and when it was not.
70 1/2 and still working, waited to take SS until 70. Dealing with the impact of a layoff and subsequent small pension as a result, working past 70 is the best option for me. I salute anyone who can retire early.
Great cast - The so called experts using fear to sell is the lazy pathway. Also, it negatively impacts Alpha’s brand. Their marketing team may want to talk about this with sales. I may not want to re-up my subscription when it comes due. You are the man Josh! Go Army!!
I retired 6 months ago when I turned 51, It was the best decision I ever made, no more work related stress or worries, As long as you have a hobby or something to do it will fill the vacuum. Life is to short not to enjoy everyday for yourself, The key for me was paying off my Mortgage and adhering to a strict budget, I made a plan 5 years ago and stuck to it, If you can do it then do it, I promise you won't regret it.
Why keep pedaling Reverse Mortgage? Crazy! Worse financial move, anyone could make with ever increasing negative compound interest.
Increasing debt as you age and using death as the exit plan to get 50 cents on a dollar of equity is neither right nor the best way to go. Nuts!
But if you have no heirs does it matter? I think about this all the time. No spouse, no kids. No plans to move anywhere. When I hit 65 maybe I should take the money... don't know
@Our Blazing World Doing the right thing has no age or condition. You either do or you don't. No heirs, spouse, or children, leave it to a worthwhile charity. Karma and spiritual laws work at any age.
One of the five rules of human stupidity, the book, is to never underestimate the number of stupid people. Another says, stupidity is equal regardless of race, culture, education, experience, gender, age, or political view. We are all equally stupid.
Reverse mortgage or take in a lodger in a extra bedroom. Lodger at $550 a month equals is $6600 a year. Traveling nurse? Single man? College student?
We live in Rural area and have grown up and lived frugally all our lives. These numbers are always higher than we have ever made or had and we have lived a simple enjoyable life I have always figured it to live on SS at retirement and budgeted on that. Have never wanted to chase a dollar. We will live off 32000 SS, Medicare with supplement, no dept, own our home, and do fine. I work part time here and there if I want and we don't need anything. Thanks
At age 62 his 250k home would support a reverse mortgage line of credit of approximately 75k .
This line of credit would be left untouched growing at 7.80% for 10 years
At age 72 this line of credit will be worth 158k .
With the growth rate of 7.80% this line of credit will support annual withdrawals of approximately $15.800 for the next 20 years
I was using current intrest rates of December 2022 for this example.
You need to support that whiteboard, my OCD won't allow me to keep listening :)
Reverse mortgage is a rip off , Just sell the house for full amount and down size to smaller house.
If they want to remain in the house. They likely have a extra bedroom. Old school. Rent the bedroom to a lodger. It would benefit both.
Moving sucks- all the memories are in those rooms.
@@timjones8295 When your loved ones are gone,It becomes an empty tomb and virtual and emotional prison, I've seen it happen.
Someone who needs $55K per year will need like $80k or more in 10 years due to inflation. In 10 years, this couple will be in a serious trouble if they don’t come up with any other source of income.
Therefore, I don’t agree with Josh 😅
Drop ten years of COLA on that Social Security payment... the deficit at 72 is even less. Thanks Josh. Wish more folks would take a few minutes to get an understanding of Social Security.
But how can you include COLA and appreciation on the house without including inflation?
This is great Josh! Thank you. I'm watching my parents and their friends retire. A traditional retirement planner would spazz if he saw how my dad is doing it, but it's working nicely. If my dad had to take a reverse mortgage he would roll around in bed every night, and so would many of his friends. Might I suggest a part-time job? 1 day a week per spouse at $12.00 per hr pushing carts earns $768 a month. That's $9216 per year on top of SS. It also gets you out for one shift a week, and you'll be working with young people that need your advice:) plus, you'll still have 6 days a week to do whatever the heck you want in a true retirement. Seems like less stress than a reverse mortgage to me, your mileage may vary.
not sure if it was me, but this is the first time seeing your video in a week. glad to reconnect
According to smartasset I, 64/Single, can have combined SSI, Pension and traditional IRA withdrawals totaling as much as $40K AND PAY NO INCOME TAX (neither federal, state nor local)! Is this a great country or what!?
LIBOR is being phased out in favor of SOFR in the US
Does Medicare cover all medical expenses? I know health insurance is expensive
80%
No. Part D will help with prescriptions.
Great video. He is right about spending less in retirement. I think I have done so because of the restrictions that the pandemic placed on everything, and also the area that I live in, which is a very low cost of living area. My mortgage, yes, I still have one and have been retired for 2yrs and 11 months, is very low.
I have more now, then I had when I was working because of the lack of expenses, i.e. work clothing, travel, lunches, etc. and transportation to and from work. If I move, I would really have to watch my money outflow, but where I am, my incoming is more than enough.
Ms. B. Churchill
love your videos!
Thanks Josh for all you do. These guys just pull numbers from the middle of the Ponderosa.
Somebody else is saying they should buy bitcoin ... that's hilarious!
Josh, where have you been?
Thanks Josh :D . Seeking Alpha, a most excellent contra indicator in all matters.
Time to update your Social Security bend points for the latest values. $960 is the old first bend point.
The first bend point for 2024 is $1024, and for 2023 it is $1115.
If every year is the same you can just divide $60,000 by 12 to get the $5,000 AIME. But otherwise, good job!
Thank you Josh for using the White Board. Great stuff!!
We 💙 the white board!!
Had a big espresso?
I could live off just AIME, in my dream world that would be my awesome SS.., I wish.
Be that as it may Josh, you were well behaved. Stay on a short leash Josh. No more sniffy Joe comments, or you’ll get a utube timeout.
As opposed to sniffing drumpf ?
$27,000 for SS at age 62 from one income of $60,000? that`s $2,250 a month, sounds awefully high
Josh you're totally misunderstanding the scenario. They need 58k to cover expenses per year. They have 30k in ss income per year. They're 28k short per year. At that rate their 150k in savings will be gone in 5 years and their 250k in home equity will be gone in 9 years. God forbid they have to replace a roof, hvac, or car for the rest their lives.
They will run out of money if they live longer than 15 years unless they work longer, supplement their income, and/or reduce expenses.
Give us the source you are critiquing.
No he isn’t. Let the 58k to cover expenses sink in. No mortgage.
Itemize this amount. How can anybody be close to spending this amount with only 30k in SS. It doesn’t make sense.
Their property taxes can’t be more than 3k a year for a 250k home?
Let’s say utilities was 500 per month which seems fairly outrageous. 6k per year.
That’s still only 9k spent.
How much can food be per month or year.
Insurance can’t be that high. Maybe 2k for both home and auto.
What’s missing?
So it seems Josh is correct in that some vids just trying to scare people with unrealistic scenarios.
There are some real struggling folks out there sure but they don’t tend to have 125k in savings. Heck they don’t even have 5k. They just live pay check to pay check. They work part time. Nothing wrong either. That’s what they chose.
@@f430ferrari5 this video was about can this person with assets, income, and expenses documented in video retire. The answer from Josh should be no. You, Josh, I don't know if 58k in expenses for this person is accurate or not. Who knows maybe this person travels alot or has other expensive hobbies.
Everyone's situation is different. Josh should tell viewers to define a retirement plan based on their individual circumstances rather than one based on averages and assumptions that don't apply to everyone.
Almost every video josh does he tells people expenses go down over time in retirement. Not so. It depends on how much of those expenses are discretionary. My mother is a perfect example. No mortgage when she retired. Very little spent early in retirement on travel, hobbies, etc. 20 years into retirement her expenses are much higher now than when she first retired.
@@jw8578 what person? Josh is explaining this person is “hypothetical” and there is hard evidence to indicate this is the case.
You can’t even counter this point. I asked you to list out the expenses in detail.
A person in a 225k home doesn’t have 58k in annual expenses.
Expensive hobbies now 😂🤣. Those can be cut out. Come on.
And it doesn’t make any sense to have higher expenses in retirement vs working. And as far as your mother goes many hit an age where medical costs and living care go up but it doesn’t last long. It doesn’t mean 58k consistently. You’re there to help anyhow. Yes?
There are those on one side of the fence who state people need 1.5 to 3 million saved which is just ridiculous. Josh is on the side of reason. Just do the math yourself. Don’t compare to others. Most don’t need as much as expected. This is for the group that decided to save. My parents clearly over saved. They can just live on SS alone.
@@f430ferrari5 correct it's a hypothetical example, a person with 58k in expenses and 30k in income and minimal assets. As I stated before this hypothetical person will blow thru their savings in 14 years unless like I said they reduce expenses, work longer, or supplement income with a part time job.
My point is why is josh questioning the 30k ss or he's completely confused about the 58k in expenses. Josh should just do the analysis based on the information provided. And if he did the answer would be this hypothetical person would run out of money in 14 years.
@@jw8578 if you re-watch his vid he is highly questioning the 58k in expenses.
Josh is more criticizing the hypothetical person the other vid creator is providing to support their case. Not sure why you’re struggling over this.
You still didn’t itemize any of the 58k annual expenses. Even if the mortgage was there it has to end at some point but the person said it was virtually paid off.
What other major expenses could there be unless it’s more “discretionary”. You even used “hobbies”. How long can “hobbies” even last.
You worry about medical but if health is a concern then most likely there is no longer a cat and maintenance expenses nor car insurance. So things even out a bit.
You really have to plot out your expenses and future and consider various scenarios.
My future scenario no longer has my cars in it. I will sell them at age 60-62. I pocket the money but save on future insurance and registration and maintenance and gas.
Just saying it isn’t right for you to criticize Josh when a realistic scenario wasn’t given.
Sadly many vid creators work for investment firms. They scare people to try and save more money so it goes into the 401k or IRA pot. They make money off of it.
Josh is just a financial advisor and he’s just being honest and leans more towards not over saving. It’s good to hear both sides.
It’s hard to get anything out of this video because I don’t really understand the information. Don’t know where the 30K in S.S. is coming from, maybe it’s accurate, and I guess you have to assume so, but the other figures are super sketchy. 58K?, 45K?, oh, and then some kind of taxes coming out of the 58K? No clue as to what’s really going on. Impossible to evaluate any decisions that are made by anyone, including Josh.
I gave up on “Seeking Alpha” long ago. Their stuff is so wildly inconsistent as to be a complete waste of time.
What do you use for a source? Are you thinking their material is inconsistent because there are many different authors?
@@dougb8207 that’s most of the problem. And too often they’re simply not that accurate. There’s very definitely a quality problem. Got tired of wasting precious time determining when the content was useful and when it was not.
You are always babbling