I worked for a home medical company and have met with a 1000 clients. They all were retired living off social security only. Less than 5% had a pension or any retirement savings. So $500K is not a little bit of money.
I really love the idea of retiring on "just" $500k as opposed to the millions and millions other swear by. If you're able to live below your means and plan ahead, $500k seems plenty enough even for early retirement.
@@Morningdwnld Exactly! It truly boggles my mind how most people think they need millions to retire, yet the median savings for people in retirement age is well below even "just" $200k! What a HUGE disconnect!
You do realize that the majority of retirees in America have nowhere near $500k and they seem to be doing just fine. Don't see any bread lines with old people in it, do you? $500k is plenty if you have no debt.
Great video, looking at lean FIRE myself in SE Asia. Goal is a little but more than $500k but $500k is doable in SE Asia but it depends on the persons spending habit.
@@Morningdwnld I would think so, if you're using the 4% rule it would give you around $1500 per month. Some countries like Vietnam would be easily doable.
@@Morningdwnld No I'm still state side. But been going back and forth to Philippines. That's where I'm looking at to retire. It's generally a LCOL, plenty of places to travel to for cheap. Lean FIRE would easily work there.
Excellent video, thank you! I'm a bit over this retirement savings financial mark and started my own YT channel three years ago to both supplement my income and as an expression of my passion and purpose. However, since my channel/client work are quite time intensive, I'm working full time and lacking time for fun and other pursuits. I lived in Mexico for the past year and a half but it's so expensive now I couldn't afford a nicer apartment so I'm back in the US. Maybe I just need to get over a hump? I welcome any thoughts. 🙏
Great job. How's the channel coming along? It's a lot of work. I hope you're starting to make money with it. Is Mexico now more expensive than the US for you?
@@Morningdwnld thanks for your reply! Yes, YT is a lot of work ! Puerto Vallarta housing prices are now close to or similar to the US if you want the same quality. Food is still cheaper but everything takes longer to do there and with no car and working full time, the cons began to outweigh the pros. I'm glad I had the adventure though!
the idea of moving to another state or country at age 65-70, i don't think is appealing. With a $500k IRA, monthly withdraw of $2k, and a monthly $2k from SS, you should be able to retire, provided you have no huge debts and your mortgaged is paid off.
Rural areas always have a lower cost for housing. However, at retirement age MEDICAL is the #1 cost, not housing. And frankly there isn't enough Medical Services in Rural areas to serve the majority of issues. Urban areas, the bigger, the better, are where medical care thrives. So, unless you're putting yourself out to pasture to die at the first sign of trouble... retirement requires a LOT more than $500,000 unless you're retiring at 90.
@@Morningdwnld - You should make an equation to figure that out. The variables are: Housing (Renter vs Equity holder of house with (another variable) X number of years left on mortgage); Your Age (Amount needed at retirement must be adjusted by estimated inflation); Your family history for Health & Life Expectancy; Types of retirement accounts you'll draw on (Already taxed; or yet to be taxed money); Estimated Health Insurance inflation; Estimated Healthcare inflation (Medical Visits; Drug Co-payments); HOA (if applies) inflationary increases; Property Tax increases; Future transportation needs (e.g., 1, 2, 3+ more cars before End of Life). The thing is, the earlier you retire, the less time you had to generate wealth and more time that money has to stretch. It's extremely complicated which is why nobodies number is the same.
@@Morningdwnld - no doubt, no debating need to have budget. My own method of determining what is needed is to use what you're making today as a starting point. If that is ENOUGH to cover your expenses, then this is what your acceptable standard of living needs. Then, adjust it by inflation to know what you'll need at retirement. For example, if you use 2.1% annual inflation and you're 20 years from retirement, then you will need 48% more than that as your income at retirement MINUS what you're putting away in Retirement Savings (e.g., Social Security Wages, 401(k), IRA, Investments). So, if you make $100,000 annually now, you will need $148,000 in 2044. Let's say you're able to put away 12% in savings/retirement on your own. So you will stop saving for retirement when you're in retirement, so that $148K can be reduced by $17,760 so you will need in year one about $130K. The main issue is that inflation continues. So, now you're 20 years later (maybe 87) and you'll need $192K to make the equivalent wage. Of course, it's hard to guess if wages will be enough to cover medical too. When you have medical increasing at 10% a year while inflation is 2.1%, then pretty soon your medical will be too much for the income. You can BUDGET all you want... but, that doesn't mean reality will stay within the BUDGET.
Nice breakdown. It sounds like you’re a spreadsheet guy. I like your methodology and as you said there are a few big uncertainties so I’d ad that being debt free and having a good margin of safety helps reduce the uncertainty. In other words, overshooting your goal in case costs are higher.
I made my retirement plan a couple years ago with the hopes of being able to retire with 500K, I am at 600K and have moved my 401K into an IRA which I have invested in an income based dividend portfolio that I will live on in January of 2025. It is set to generate 57K per year in dividend income.
Please share the name of the dividend fund that will pay you 57k a year in 2025. How much do you believe you will have saved by your 2025 date? At 600k isn't this like 9.5% dividend returns? I am not doubting. I really want to know to help me.
@@wisulliv here are the top 7 dividend aristocrats by yield as of July 1, 2024: Walgreens Boots Alliance Inc (WBA): 12.53% yield Realty Income Corp. (O): 5.95% yield Franklin Resources, Inc. (BEN): 5.59% yield Amcor Plc (AMCR): 5.21% yield Federal Realty Investment Trust (FRT): 4.36% yield T. Rowe Price Group Inc (TROW): 4.34% yield Chevron Corp. (CVX): 4.18% yield It's important to note that dividend aristocrats are S&P 500 companies that have increased their dividends every year for at least 25 consecutive years. While these companies consistently raise their dividends, the actual yield can fluctuate based on the stock price.
Great idea , just add couple of country Turkey , Egypt and ,Tunisa will fit2k budget And i guess you can get 8%retunt to your 500k investment in properties and Vanguards ETFs
I don't believe I said you could get a house in FL for $100K, but in Fort Walton Beach, Florida, the Median housing price is $208,200. There are a lot of other cities around the country where the media price is $100k. LMK if you want a list.
If you retire at 60 and have $500k in your account, you should be ok if you die at 65. After that, who knows? If inflation is running at 3% then in 23 years you should expect your costs to double. Is your income going to double too? What if you need to go into a nursing home when you are older? Where does that money come from. The average cost of a nursing home room today (today) is $120K, so if you retire and face that type of cost, where does the money actually come from? The US government has $34 trillion in debt, so I would not look to them.
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I worked for a home medical company and have met with a 1000 clients. They all were retired living off social security only. Less than 5% had a pension or any retirement savings. So $500K is not a little bit of money.
Thanks for that perspective!
I really love the idea of retiring on "just" $500k as opposed to the millions and millions other swear by. If you're able to live below your means and plan ahead, $500k seems plenty enough even for early retirement.
Thank you! It’s definitely not talked about enough and people get discouraged thinking they can never retire.
@@Morningdwnld Exactly! It truly boggles my mind how most people think they need millions to retire, yet the median savings for people in retirement age is well below even "just" $200k! What a HUGE disconnect!
@@wildfoodietours I've been thinking the same thing. That's why people get so discouraged and also take on more risk than necessary.
You can retire with 500k, in Thailand.
Are you doing it?
You do realize that the majority of retirees in America have nowhere near $500k and they seem to be doing just fine. Don't see any bread lines with old people in it, do you? $500k is plenty if you have no debt.
I retired at 47, too. I also lived in other countries while younger. I now travel with my two little kids when they don’t have school.
That’s awesome. Any travel recommendations? What country did you like living in most?
Great video, looking at lean FIRE myself in SE Asia. Goal is a little but more than $500k but $500k is doable in SE Asia but it depends on the persons spending habit.
Thanks. I’d think 500 would go a long way in SE Asia, right?
@@Morningdwnld I would think so, if you're using the 4% rule it would give you around $1500 per month. Some countries like Vietnam would be easily doable.
@@jeffbradburn3800 Yeah. Is that where you are?
@@Morningdwnld No I'm still state side. But been going back and forth to Philippines. That's where I'm looking at to retire. It's generally a LCOL, plenty of places to travel to for cheap. Lean FIRE would easily work there.
@@jeffbradburn3800 What's LCOL?
Excellent video, thank you! I'm a bit over this retirement savings financial mark and started my own YT channel three years ago to both supplement my income and as an expression of my passion and purpose. However, since my channel/client work are quite time intensive, I'm working full time and lacking time for fun and other pursuits. I lived in Mexico for the past year and a half but it's so expensive now I couldn't afford a nicer apartment so I'm back in the US. Maybe I just need to get over a hump? I welcome any thoughts. 🙏
Great job. How's the channel coming along? It's a lot of work. I hope you're starting to make money with it.
Is Mexico now more expensive than the US for you?
@@Morningdwnld thanks for your reply! Yes, YT is a lot of work ! Puerto Vallarta housing prices are now close to or similar to the US if you want the same quality. Food is still cheaper but everything takes longer to do there and with no car and working full time, the cons began to outweigh the pros. I'm glad I had the adventure though!
@BetsyGutting so glad to hear you had an adventure. I hope you enjoy being back.
@@Morningdwnld thank you so much! I’ve subscribed, and I’m interested to keep hearing what you have to share. ☀️
the idea of moving to another state or country at age 65-70, i don't think is appealing. With a $500k IRA, monthly withdraw of $2k, and a monthly $2k from SS, you should be able to retire, provided you have no huge debts and your mortgaged is paid off.
Having now debts is the key there. Something we should all strive for ASAP.
Rural areas always have a lower cost for housing. However, at retirement age MEDICAL is the #1 cost, not housing. And frankly there isn't enough Medical Services in Rural areas to serve the majority of issues. Urban areas, the bigger, the better, are where medical care thrives. So, unless you're putting yourself out to pasture to die at the first sign of trouble... retirement requires a LOT more than $500,000 unless you're retiring at 90.
How much do you think someone needs?
@@Morningdwnld - You should make an equation to figure that out. The variables are: Housing (Renter vs Equity holder of house with (another variable) X number of years left on mortgage); Your Age (Amount needed at retirement must be adjusted by estimated inflation); Your family history for Health & Life Expectancy; Types of retirement accounts you'll draw on (Already taxed; or yet to be taxed money); Estimated Health Insurance inflation; Estimated Healthcare inflation (Medical Visits; Drug Co-payments); HOA (if applies) inflationary increases; Property Tax increases; Future transportation needs (e.g., 1, 2, 3+ more cars before End of Life). The thing is, the earlier you retire, the less time you had to generate wealth and more time that money has to stretch. It's extremely complicated which is why nobodies number is the same.
@@InfoSecGuardian Yes, you need to have a budget and know where your money is coming from.
@@Morningdwnld - no doubt, no debating need to have budget.
My own method of determining what is needed is to use what you're making today as a starting point. If that is ENOUGH to cover your expenses, then this is what your acceptable standard of living needs. Then, adjust it by inflation to know what you'll need at retirement. For example, if you use 2.1% annual inflation and you're 20 years from retirement, then you will need 48% more than that as your income at retirement MINUS what you're putting away in Retirement Savings (e.g., Social Security Wages, 401(k), IRA, Investments). So, if you make $100,000 annually now, you will need $148,000 in 2044. Let's say you're able to put away 12% in savings/retirement on your own. So you will stop saving for retirement when you're in retirement, so that $148K can be reduced by $17,760 so you will need in year one about $130K. The main issue is that inflation continues. So, now you're 20 years later (maybe 87) and you'll need $192K to make the equivalent wage.
Of course, it's hard to guess if wages will be enough to cover medical too. When you have medical increasing at 10% a year while inflation is 2.1%, then pretty soon your medical will be too much for the income. You can BUDGET all you want... but, that doesn't mean reality will stay within the BUDGET.
Nice breakdown. It sounds like you’re a spreadsheet guy. I like your methodology and as you said there are a few big uncertainties so I’d ad that being debt free and having a good margin of safety helps reduce the uncertainty. In other words, overshooting your goal in case costs are higher.
I made my retirement plan a couple years ago with the hopes of being able to retire with 500K, I am at 600K and have moved my 401K into an IRA which I have invested in an income based dividend portfolio that I will live on in January of 2025. It is set to generate 57K per year in dividend income.
Sounds like you've planned it out well. Nice job!
Please share the name of the dividend fund that will pay you 57k a year in 2025. How much do you believe you will have saved by your 2025 date? At 600k isn't this like 9.5% dividend returns? I am not doubting. I really want to know to help me.
@@wisulliv here are the top 7 dividend aristocrats by yield as of July 1, 2024:
Walgreens Boots Alliance Inc (WBA): 12.53% yield
Realty Income Corp. (O): 5.95% yield
Franklin Resources, Inc. (BEN): 5.59% yield
Amcor Plc (AMCR): 5.21% yield
Federal Realty Investment Trust (FRT): 4.36% yield
T. Rowe Price Group Inc (TROW): 4.34% yield
Chevron Corp. (CVX): 4.18% yield
It's important to note that dividend aristocrats are S&P 500 companies that have increased their dividends every year for at least 25 consecutive years. While these companies consistently raise their dividends, the actual yield can fluctuate based on the stock price.
Great idea , just add couple of country Turkey , Egypt and ,Tunisa will fit2k budget
And i guess you can get 8%retunt to your 500k investment in properties and Vanguards ETFs
Yes and there are now a lot of foreign savings accounts that will pay a good yield.
Show me the house you can buy in Florida for $100,000
I don't believe I said you could get a house in FL for $100K, but in Fort Walton Beach, Florida, the Median housing price is $208,200. There are a lot of other cities around the country where the media price is $100k. LMK if you want a list.
If you retire at 60 and have $500k in your account, you should be ok if you die at 65. After that, who knows? If inflation is running at 3% then in 23 years you should expect your costs to double. Is your income going to double too? What if you need to go into a nursing home when you are older? Where does that money come from. The average cost of a nursing home room today (today) is $120K, so if you retire and face that type of cost, where does the money actually come from? The US government has $34 trillion in debt, so I would not look to them.
What do you suggest?
bitcoin is best long term retirement fund. Long term only.
I'm with you there!
Highly speculative and its future is uncertain.