I met somebody who is retired and has millions in his portfolio. The problem is he is not healthy. It made me think those money doesn't matter if you are not enjoying your retirement. So don't wait until you retire. Enjoy life now as if you are retire. Find the job you like. Retire as soon as you can while you are still healthy to enjoy life.
100% of you short term thinkers all post the exact same story. You don't understand math, actuarial tables, SSA payment cutoffs, and statistics. In your world everyone is dead one month after their 1st check arrives, or unhealthy. Every person you know, is like this. Dead or unhealthy.
For me, it is $35K a year. I live alone. Medical insurance and property tax are my biggest expenses, costing me $15K, and I have no debts. I usually come up with a $12K surplus. I never had to touch any of my other assets, including IRA's. I have always saved all my life and habits are hard to change.
My wife and I took advantage of the real estate crisis and purchased a mansion as our forever home. The Zillow estimate was $1.8 million in 2008 and we bought it for $1.0 million, paid it off in a few years, and now the Zillow estimate is $1.6 million so it was a very good investment. However, owning a big house in retirement can be your biggest expense. We pay $11,000/year in real estate taxes, $5,000 in home owner's insurance, $1400/year HOA fee, and $250 to $400/month utilities. Costs such as appliance replacement, window replacement, tree removal, and heat pump replacement can be expensive. I save money by doing our mowing and yard work. We can afford it and the mansion has appreciated faster than our first starter home, but owning and maintaining a mansion can be very expensive. It's a lifestyle choice and we are much happier in our dream house.
Good video. I agree, retirement expenses are non-linear. Many retirement calculators assume a linear expense output. This is to scare you into working longer and paying fees to their firms. Here is some anecdotal evidence. My 85 year old mother-in-law spends very little, she lives on less than her Social Security income. She does not touch her retirement income or her IRAs. I retired last year at 61 and my expenses have been pleasantly surprising, ~ 25 % less than budgeted. In my opinion, the key to a comfortable retirement is knowing your monthly expenses and debt freedom.
Thank you. Early on I always assumed 100K a year after taxes was my goal. I hoped I was way over in my estimations, but we needed a target to shoot for. Health care coverage is huge, and it is the main reason for staying where I work for 2 more years until 55 for retiree healthcare with my company as well as access to the 401K via the rule of 55. Expenses trump everything in my opinion. If you don't know your spending needs/wants, then it is hard to do anything but guess when looking for the elusive number for how much you need to retire. -Just my 2 cents.
All of you "need" too much money. Single person: Paid off home 300/month taxes Not paid off 1000/month rent or mortgage Food 250 Auto insurance 65 Medicare 150 Gas 25 Phone 15 Internet 55 Electricity 65 Total: 925 to 1625 a month SSA alone covers this at 62. Work at 67+, better. Any investments at all. Even only 25k. And you are far ahead of the curve.
We are traveling now while we are younger and working. This is at the sacrifice of investing more for retirement. It's always a trade. Live now, live later, or both. We are choosing to do both.
Almost every other channel plus the US government say that spending actually goes DOWN (including for health care - especially if you have a Medicare Supplement Plan G or N instead of the horrible Medicare Advantage plan.)
I met somebody who is retired and has millions in his portfolio. The problem is he is not healthy. It made me think those money doesn't matter if you are not enjoying your retirement. So don't wait until you retire. Enjoy life now as if you are retire. Find the job you like. Retire as soon as you can while you are still healthy to enjoy life.
100% of you short term thinkers all post the exact same story.
You don't understand math, actuarial tables, SSA payment cutoffs, and statistics.
In your world everyone is dead one month after their 1st check arrives, or unhealthy.
Every person you know, is like this. Dead or unhealthy.
For me, it is $35K a year. I live alone. Medical insurance and property tax are my biggest expenses, costing me $15K, and I have no debts. I usually come up with a $12K surplus. I never had to touch any of my other assets, including IRA's. I have always saved all my life and habits are hard to change.
Thanks for that feedback!
That’s not bad at all
My wife and I took advantage of the real estate crisis and purchased a mansion as our forever home. The Zillow estimate was $1.8 million in 2008 and we bought it for $1.0 million, paid it off in a few years, and now the Zillow estimate is $1.6 million so it was a very good investment. However, owning a big house in retirement can be your biggest expense. We pay $11,000/year in real estate taxes, $5,000 in home owner's insurance, $1400/year HOA fee, and $250 to $400/month utilities. Costs such as appliance replacement, window replacement, tree removal, and heat pump replacement can be expensive. I save money by doing our mowing and yard work. We can afford it and the mansion has appreciated faster than our first starter home, but owning and maintaining a mansion can be very expensive. It's a lifestyle choice and we are much happier in our dream house.
I wish you were here when I was in the PLANNING Stage. I am now retired for 25 years and could have used your planning style.
I wish I was too! 😃
For somebody in Europe, the thought of having to worry about the cost of medical care in retirement is frightening.
Thanks for making these videos. You are to the point and easily understood without the fluff.
You’re welcome!
Good video. I agree, retirement expenses are non-linear. Many retirement calculators assume a linear expense output. This is to scare you into working longer and paying fees to their firms. Here is some anecdotal evidence. My 85 year old mother-in-law spends very little, she lives on less than her Social Security income. She does not touch her retirement income or her IRAs.
I retired last year at 61 and my expenses have been pleasantly surprising, ~ 25 % less than budgeted. In my opinion, the key to a comfortable retirement is knowing your monthly expenses and debt freedom.
Great perspective, Ed. Thank you!
The Amazon smile of retirement. The smile spending curve seems to make sense. I think the most worrisome is health.
The first such presentation I have found to be highly informative. Excellent presentation. Great advice.
Thank you! Glad you liked the video!
More like a smirk than a smile! Thanks for the video.
Thank you. Early on I always assumed 100K a year after taxes was my goal. I hoped I was way over in my estimations, but we needed a target to shoot for. Health care coverage is huge, and it is the main reason for staying where I work for 2 more years until 55 for retiree healthcare with my company as well as access to the 401K via the rule of 55. Expenses trump everything in my opinion. If you don't know your spending needs/wants, then it is hard to do anything but guess when looking for the elusive number for how much you need to retire. -Just my 2 cents.
Good thoughts.
All of you "need" too much money.
Single person:
Paid off home
300/month taxes
Not paid off
1000/month rent or mortgage
Food 250
Auto insurance 65
Medicare 150
Gas 25
Phone 15
Internet 55
Electricity 65
Total: 925 to 1625 a month
SSA alone covers this at 62.
Work at 67+, better.
Any investments at all.
Even only 25k.
And you are far ahead of the curve.
Great content! Thanks!
we need to know the percent increase in healthcare expenses due to premiums vs actual
medical costs to use this data in any meaningful way
I waited to retire until 70 and am using 95 as a life expectancy. What is a withdrawal rate starting point for 1.5mm when I only need it for 25 years?
I’m retired and I don’t see any expenses going down. My property taxes, utilities, food, insurances everything goes up
James, love your videos….
Thank you
Liked , subscribed, and commented 👍🤪🤑
Thank you, Bruce!
Thank you!
Thanks for watching!
We are traveling now while we are younger and working. This is at the sacrifice of investing more for retirement.
It's always a trade. Live now, live later, or both. We are choosing to do both.
Glad it was helpful!
Almost every other channel plus the US government say that spending actually goes DOWN (including for health care - especially if you have a Medicare Supplement Plan G or N instead of the horrible Medicare Advantage plan.)
Good information but we need numbers and examples. All hypothetical with no concrete examples. Have an average for a single individual and a couple.
Thank you for the feedback! I will look to incorporate more specific information into future videos.
@@RootFP So, is this TH-cam video the answer to johnnyboyvan? th-cam.com/video/6H07CeKviZQ/w-d-xo.html
Never mind as I see the video was posted August 1st, 2021 whereas this one is August 28th,2021.
Really appreciate the clarity of your communication, and your content quality. Keep up the excellent work.
Average expenses for a 65 year old couple in the US is currently 50K a year
👌👌👌
No numbers.
“How much” was never answered in $ terms. You merely explained proportion of spending.
How can he answer that with wildly different incomes? He was looking at trends.
You must know what your monthly expenses are. My expenses in retirement have plummeted, even over what I budgeted.
ima gonna spend all of it. You can't take it with you.
Didn't answer the question. A lot of generic info