Why You May Need Less Money Than You Think to Retire
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- เผยแพร่เมื่อ 27 มิ.ย. 2024
- How much does it cost to retire? This video discusses why you may need less money than you think! The video also discusses how people actually spend in retirement versus how they spent during their working years, as well as taxes and other deductions that workers pay that retirees do not. The video concludes with a discussion about the accurate cost of healthcare in retirement versus the scary numbers that you some might want you to believe.
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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.
Check out one of our most popular videos - *4 Major Social Security Updates for 2024: What You Must Know* -> th-cam.com/video/zBCmA5Xx7U0/w-d-xo.htmlsi=UKlzbdkAe1kuk20O
Most people don’t realise it, but the secret to retiring comfortably is finding a way to make returns while your money works for you. My dad, as I remember, started saving for retirement quite late, but I know he was making more than 10k returns from his investment monthly and it was completely passive.
This is really amazing though. I'm curious as to how he did it. Was it real estate? Or he was a market enthusiast?
Haha. Investing enthusiast? Not really. Our family got introduced to a financial advisor about four years before my dad retired. That was what changed things. I've been using the same now and I think my retirement income would be on the right track.
I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I really don't like making such recommendations, because everybody's situation is unique. But there are many freelance advisors you could check out. We have been working with Tenley Megan Amerson, and she's really, really good. If she meets your discretion, then you could go ahead with her. I endorse her.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
How can I reach this person?
'Carol Vivian Constable’ maintains an online presence. Just make a simple search for her name online.
Thank you! I entered her full name into my browser, and her website came out on top. I filled her form and i hope she gets back to me soon.
51 years old. I have $295,588.25 in my Fidelity retirement account. I cranked my contributions up to 35% and I do all the investing on my own. Fidelity just holds my ETFs/stocks. I made that change earlier this year. I'm hoping to end the rat race by 60 but it's looking more like 63-ish. I want to have $1.5M and bring in about $60k in dividends each year. Pedal to the floor! Thanks for the video. Great content.
I agree, having a portfolio-advisor for investing is genius! Not long ago amidst the pandemic crash in March 2020, I was really having investing nightmare prior touching base with a license portfolio-advisor. In a nutshell, i've accrued over $550k with the help of my advisor from an initial $120k investment thus far.
Thanks, I just googled her I'm really impressed with her credentials. I reached out to him since I need all the assistance I can get.
For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.
This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
STEPHINE KOPP MEEKS she is whom i work with look her.
Being a CONSUMER is the biggest issue facing Americans. We want stuff, lots of it. We dont need it. Not being a consumer is FREEDOM.
Unpopular opinion but times are tougher than they used to be in some ways. Back during the depression a man could support a household on just one income. These days? Both parents can have good incomes and still struggle better health care, inflation, child care, rent/mortgage. Things are harder now economically than they used to be
*That being said,* yeah some people are definitely broke because of their own spending habits
We all aspire to financial independence, attainable through savvy investing and a frugal lifestyle. Inspired by Warren Buffet, my wife and I, despite a middle-class income, aim to retire at 58 with a $1.7M stock portfolio, never having sold a single share.
People don't really know this, You need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.
I fully agree. At 66, recently retired with about $800k in external retirement funds, I'm debt-free. My retirement funds have significantly grown in the past three years, thanks in part to a financial advisor. Having one is crucial, particularly for those nearing retirement, making it the best way to navigate the stock market.
@@mariaguerrero08 This is exactly how i wish to get my finances coordinated ahead or retirement. Can you recommend the financial advisor you used to get ahead?
CAMILLE ALICIA GARCIA maintains an online presence. just make a simple search for her name online.
I just googled her I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.
I've been retired for 7 plus years and my wife has been retired for 5 plus years. So far we haven't used any of our retirment money. We are having no problems living on just our SS. Being debt free is what makes that happen.
Sounds dreadful. What is the money for?
That’s very interesting. (Certainly not “dreadful.”) Were you surprised by this result, or did you have a good sense of your spending prior to retirement?
Good for you!
When you have zero debt it is mindboggling on how little you need to live. I try to explain that to everyone I care about.
Same here. We actually paid our home off and bought reliable cars and paid them off before retirement. I have been retired for 8 years and husband for 6 and we have actually saved money because we don't have a lot of expenses. As to those who think we should not be saving...For one thing, I can't think of much I want and if I do, want something I buy it. For another, your home even if paid for, always has maintenance issue to deal with. For example, just last week we had to replace our water heater. Last year a new frig. That never ends. Eventually wewill have to pay someone to do lawn care and home maintenance that we currently do, etc. When that happens, we will have the money to do it.
As voices in my head always remind me. “There’s not enough time in the world to do all the nothing I wanna do. There’s no material possessions that can replace time you can spend for yourself.” Money, things come and go. Time only goes. Retire. Be free. Live. Reinvent. Engage with yourself.
No truer words were ever spoken
Here are some truer words, schmidt, mon ami. Don't be selfish by engaging with yourself. Engage the next generation.
@@DrSchor Retirement time is our time to live. If one can help others, fine. But this is our time.
I am living on nothing but Social Security, and my check is less than what I've been told is the average. I don't pay for Medicare, because I made sure to get out of the US before my 65th birthday. I get much cheaper healthcare where I am.
I live in a comfortable flat, within walking distance of everything I need. Also, it's near a beach and several amazing hiking places. I can take a bus, for free, to anywhere else I want to go. So I don't need a car.
I have never lived so well before. Freedom is everything. Get it as soon as you can.
@@tinabraxton4906 OK, just don't try to come back into the country and get healthcare. No one will insure you and you will have to pay your own medical expenses.
Covid wasn't kind to me. I lost my spouse and my employer went bankrupt. I ended up retiring several years earlier than planned. I've discovered jobs, for people my age, are few and far between even if you are willing to work for a much lower wage. Thankfully, I am debt free except for a mortgage. I'm living a frugal retirement but the house has to be sold. The mortgage is almost 60% of my income and future property tax increases will drive it higher. I'm actually looking forward to life after the house. It's just a ball and chain, at this point. I will have enough from the sale to buy, free and clear, something much smaller, in a lovely area, with enough left over to pad my emergency fund nicely. I haven't had to touch my retirement accounts. My advice is to re-assess what your true priorities are. You can make it work on far less than most financial advisors would have you believe. New places to live mean new friends, new activities and possibly, a new, lower, budget. Don't stay stuck. Choose an adventure.
👍
BRAVO. We are not descended from meek and weak ancestors. YOu did it! You are surviving well.
Very true. I am retiring in Colombia.
Best wishes to you 👍
In retirement if you don't have children, is there any point in owning a house with all the worries that come with that, maybe it's best to cash in your chips and rent.
Institutions like Fidelity scare us into thinking we need millions to retire. The truth is you don't and these financial institutions are trying to scare you into building a larger account with them. The bigger account, the more they make.
Sincerely, I'm genuinely moved by what you said about early retirement. And yes i equally agreed with you It's the FREEDOM from being able to make a conscious choice, each and every day, in terms of how you’re going to spend your time… I have about 40k that I am willing to invest if given the appropriate knowledge and I am highly interested in investing. My greatest concern is losing money on a bad investment. I'm open to hearing your advice on how to make sensible investments as a result.
no time to look back! avoid unnecessary spendings, you can move to wealth by increasing your investments and as far as i'm concerned, advisors are ideal reps for the job
Right, using an invt-advisor is ideal especially for near retirees and newbies that barely understand how the mkt works, my portfolio used to be up and down like a seesaw, not until I hired an advisor around March2020 amidst the lockdown. This is how I've been able to scale up tremendous 7figures in ROl, after subsequent investment as of today
who is the professional guiding you?
Mrs Marisol Cordova is the Consultant in charge of my portfolio. With over three decades of service, she's earned a reputation and internet awareness, so finding basic information should be simple.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
I have enough. Retired at 64 due to health. My house is paid off and I have no debt. I live very comfortably on a thousand a month. It's all the choices we made through out our life.
Thank You 😊 this comment is helpful
I’m only 51 and you’re one of my favorite TH-camrs
Too kind
The biggest problem I’ve had in retirement is switching from saver to spender, I spent decades saving as a normal routine, not comfortable spending for pleasure.
Same. Our financial advisor planned for us to have 75K a year in retirement and we find we only spend 15K. We have no debt and the stuff we enjoy doing is free. We moved to a smaller house so don't need anything.
Excellent news. I’m 10 years from retirement and this is good to hear since I’m already getting worried. 😱
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.
While the current market offers short-term profit potential, it's crucial to note that executing such a strategy requires expertise and skill.
You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 9%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an analyst.
impressive gains! how can I get your advisor please, if you dont mind me asking? I could really use a help as of now
NICOLE DESIREE SIMON is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
The same is true for achieving financial independence (early retirement). You can need a lot less than when you were actually working for money.
Never have been so happy with my wife’s choice to be a lifelong government employee as we now enter into our mid-fifties and look forward to a pension that is almost her full pay.
Listening to you is so reassuring and hopefully for those of us waiting for this next exciting (scary) chapter to unfold...
Take it slow and steady
Great video and looking forward to the retirement budget video. Thanks 🙏. Keep them coming.
An essential video. Some expenses and costs of working go away when retiring. Most people and systems miss this fact.
Thanks for the continuing advice on important tax and retirement topics. I spend a lot of time working to optimize my financial decisions and am always glad to find things I may have otherwise overlooked.
Thanks Jeff
Love your CALM, Detailed presentation... Spot on with REAL LIFE Income. .... Well Done.
I realized that the secret to making a million is making better investment. I bought my 1st home at 21 for 87k sold for 197k, 2nd home 170k and sold for 320k, 3rd 300k and sold for 589k and buyers paid all closing costs expenses etc Not making up to a million before retirement is unfulfilled retirement.!!
I started out with a financial advisor called *"Rochelle Dungca Schreiber"*. Her honest approach gives me complete ownership and control of my positions, and her rates are incredibly affordable given my ROI. However, do your due diligence before contacting a financial advisor..
This comment thread is highly suspect. This looks more like market (or worse) folks
I admit that I have more cash flow now than when I was working. I track all my expenses. Gas prices rise, I don't care. I only fill the truck once a month. Still investing in a non IRA mutual fund. Health costs are higher but once I take into account what has gone down, I'm still way ahead. I really enjoy being retired. Glad I'm was prepared.
Take care of your health when you're young and you probably won't have many health care costs when you're old.
We retired from Florida to Mexico this year.
Even with a paid for home, rapidly rising costs, especially on homeowners insurance-$9k a year had us doubting we wouldn’t have to work forever.
Sold the house.
Now 4 months into retirement and we wish we’d done it 5 years earlier.
Nice one
I had friends just retired to Mexico, the big place on Mexico west coast that the Love Boat used to stop at
yeah, in Colorado, property taxes are doubling, County raise the value of my house $175,000, i fought back, they wanted to raise it $250,000... and the State of Colorado wants County's to raise property taxes, are County by 49% next year, are insurance $2,220 more a year, last month, with the Lawyers and Roofers doing this rip off now, that's why Insurance Company's are leaving some States... talked to one guy about it, while trimming my tree, his In-laws are selling there house for those reason, and of course, those things rising, lower the value of house... wanted to sell, when prices were ridiculous the year before, but the wife didn't want to, she is still working, and she wished she would have retried before, now, when we could have gotten a lot more for the house... so i figured we lost about a $100,000 or more, when we sell in a year or so... and move next to the kids... Timing!!!
But you are living in Mexico. I hope you are fluent in Spanish.
@@jameshardin4895sadly, Colorado has been Califorincated by the California exodus.
Once again a great video full of good info. Mostly it told me what I already know but it is nice to have it confirmed.
Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?
as most investing-related questions, the answer is, it depends.. my best suggestion is to consider advisory management
Agreed, the role of advisors can only be overlooked, but not denied. I remember in early 2020, during covid-outbreak, my portfolio worth around 300k took a slight fall, apparently due to the pandemic crash, at once I consulted an advisor in order to avoid panic-selling. As of today, my account has yielded big fat yields, and leverages on 7-figure, only cos I delegate my excesses right.
@@KarlGrabe955 this is huge! mind if I look up the advisr that guides you please? only invest in my 401k through my employer for now, but enthused about diversifying my investments for a prosperous financial future
I've shuffled through a few advisors in the past, but settled with “Vivian Carol Gioia” her service is exemplary. I'd suggest you research her further on your browser, sure you'll find her basic info.
@@KarlGrabe955 very much appreciated, your response suggests a person of benevolence.. just inputted her full name on my browser, and came across her site, top-notch qualifications! she seems well-qualified
You always have such great information! Thanks again.
Could you please do a video focusing on childless singles planning for retirement.
Thanks for the suggestion
Yea please! We are DINKS both have great jobs and will have our home paid off. Thanks!
Childless singles please.
Yes please
There’s a lot more of us singles than there used to be.
I appreciate you covering topics that are to me true to what people want to learn about. I am 6 months out and thank God, am in I believe a good place.
Excellent video , new to retirement and helped ease some of the concerns I had. Thank you!
This is very accurate I am amazed at how little money it takes to live on with the kids graduated from college and out on there own and having the mortgage paid off.
Excellent review! Appreciate the information.
I'm grateful to have a roof over our heads and enough to live on but we still need to be frugal.
I couldn’t imagine retiring in the US with my giant property tax bill, and I did not want to be a renter so I sold my house, everything in it, and my car, got residency and moved to Mexico where I paid cash for a house and a new car. I retired at 62, took my social security, and am living my best life. It felt great to shed all the stuff and stress and start over with a clean slate. I was able to engineer exactly the life for myself that I wanted. I could not have done it in the US. This is a great video that made me feel even better about my decision to retire “early.”
Hi what state did you move to
@@maricarmenmendez593 Yucatán. I love it here!
@@MJA5 Such a rude comment. Yes, I have Mexican friends and I speak the language. I feel very much a part of the community. They definitely have a constitution.
I retired from Florida to Mexico 4 months ago.
Same scenario, but I’m going to rent the first year until I pick my perfect neighborhood to buy in.
Absolutely love it!!
@@MJA5 Thank goodness it’s not for everyone. You especially.
Great video. Ive been watching for a few years and they've given me a lot of information on how to glide into retirement and what to expect.
I became financially retired at 54 and just went to semi retired at 56 a few weeks ago. My portfolio generates many times my monthly expenses and have no debt period. Im sitting by my pool at my paid off home in Florida writing this.
I still have an aluminum manufacturing and leasing company that ive been "gliding" out of. I was one of those " I'll never retire, i love my work" yeah well, there's more to life than work. Work is a default familiarity when we don't know what to expect going forward.
Thanks Geoff for all you wisdon and guidance.
Stellar content as usual. Retired couple of early 60s. One car and two e-bikes.
Sounds perfect
Not watching this because it is the latest video but watching it because it is a good topic. Covers both deductions experiences you have while working and typically more expenses while working. Have heard vacations are less money a year out and also right before a few days or weeks before which is more possible when you have more time when retired to do a last minute vacation.
Hi Geoff, I hope you and your family are well. Thank you for your videos. They have been very helpful.
You are very welcome
My primary concern is how to grow my reserve of $300k which has been sitting duck since forever with zero to no gains, sure I know the risks of short term gains are much greater but if well managed one'd make a killing, am I wrong?
These strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
I’ve been on both end of the spectrum, I was lnvesting on my own for about 3years, did my own study and analysis before actually buying, things became rather difficult after the pandemic which was right about when I reached out to a portfoIio-advisor for guidance, It’s been over 2 years and I’ve scaled up a stagnant reserve of $280K to $700k in just about 24months.
@@africanboi4542 Interesting. I've a lump sum doing absolutely nothing at all in my bank account, i wanna gets something started with it. You seem to be doing excellent for yourself, how do you achieve this?
@@anniezeng4587 Mrs Marisol Cordova is my portfolio-coach, I found her on Bloomberg where she was featured and at once, looked up her name on the web.Thankfully, I came across her site and reached out to her.
@@africanboi4542 Thanks, I found her page immediately I researched, I read through her resume and seems pretty interesting, I just reached out to her
Flew back yesterday from a scouting trip to Spain and Portugal. Although I speak Spanish, I really enjoyed Portugal.
Portugal seems to be very popular; nice people, I found.
one of the more economical countries to visit in Europe. Spain is awesome, as well.
Great point Geoff I forgot about SS withdrawals in. Figuring your base income. Thanks very helpful
Good method to help analyze retirement income! Definitely food for thought.
Thanks James
What a great video! And your manner of presentation and voice are calming. Whew!
Looking forward to the budget video. I am so close to retirement and trying to figure it all out.
My daughter and step-daughter each have jobs, houses and spouses and a college education paid for by me. Why should I scrimp on my retirement to leave them additional money? They have 30 more years to work and save, I don't.
What's the problem ,start spending on yourself, you've already given your kids too much,unless that's what you want to do..its on you
My husband and I just run with the 4% rule to keep it simple. Save up enough that 4% of your total retirement savings would cover your expenses in retirement. As an example, $1 Million allows you to withdraw $40,000 per year (dividends on investments often pay about half of that).
It's a simple rule of thumb, and we don't bother calculating things like Social Security, only what we save ourselves. We consider that as "extra" if we need it, rather than absolutely necessary.
I, too, think the 4% rule is still a good guideline...
You will work longer than you have to
I'm going with 3% as a general rule, but I'm highly risk averse.
How much you need to retire on is all relevant to your situation. I moved to France at 46 (and retired) and bought a run down 600 year old house to renovate. It’s not the way I used to live and probably isn’t the way you live either but I’m happy living in less than I’ve ever had before. But then I have no debt and I can only spend what I get each month and when it’s gone, it’s gone.
I love this. Most people move to Latin America so this is very interesting.
I watch all of your thoughtful videos. I am an exception and a bit fearful. No family, single woman and an awesome nurse at age 70. Working for a large insurance company and own a home in S Fl. Scared to retire. But I think I will pull the trigger as the average age is 78. No major medical problems right now. Thanks for listening. Don’t like drama but support is always welcomed. 😊
I, too, am a single woman, and I can relate to your fears. BUT I retired early when I realized how miserable I was at my job with new administration (had loved it for 20 years), had an ill mother and a child who potentially needed help. Three years later, absolutely NO regrets. I realize every day how wonderful it is to have complete control of my time. I am wealthy by some measures, not by others; I can say I have always lived modestly and have no plans to change, owe no one, and am confident that barring a catastrophe that affects everyone, I will be able to live comfortably until my death. If you have not talked with a financial professional, that might be reassuring for you. Life is too short to spend all of it working! You have fought the good fight; now it is time to enjoy the benefits. I encourage you to not allow fear to make this decision. You can do it!
QUIT! You don’t want your “retirement” to be the ambulance ride to the hospital……..!!!!!!
If the work is stress free continue till you are absolutely ready to retire. Sounds like you do telework, working from home can’t be stressful.
Don’t be scared. Do it and enjoy.
You will wish you did it ten years ago!
Spend a few of your bucks on therapy.
Also once retired you can avoid travelling peak season, no longer need to flight on weekends, usually better fares are on Tue, Wed and Thu.
Yes, and you can finally take advantage of specials when they are offered during off season.
Not retired and i already do this. Im doomed as there seems to be nothing to cut. Food maybe? 😅
It's the energy.
Yes.
At age 71 I don't have the energy anymore.
Thanks for the comment skippy
Take some vitamins and cut out carbs.
At 73 I am all still all go-go 😊.
Find out what is wrong. Fix it and live.
@@HolySchmidt You're welcome.
@9:00 I agree with what you said about how it was a family first period. I miss that now that I’m back commuting to work, etc…
Thanks for the informative videos! They really help my wife and I in preparation of retirement! We are looking at April 2024, and all of your videos have helped us with a better understanding and support our financial discussions. I look forward to the video you mentioned in the beginning of this video! Thank you, keep up the excellent work.
Thank you Schmidt... ✳️
You are welcome
Even though I'm not American, I enjoy watching your videos :)
Planning for retirement when you are a caretaker for your special needs child is a particular challenge. Would appreciate you doing a series on this topic or being directed to someone you know who is covering it well.
I’d appreciate that topic too. I’m a widowed single woman raising my grandson since he was born, alone. He’s 6, I’m 69. I’ve adopted him. I retired from Nursing when he started kindergarten. For now, we’re able to live on Social Security, but I have to stretch my dollars. I do have a tiny pension from my late husband that I get monthly which also has health insurance with it that is my supplement to Medicare and covers me 100%. However, neither Medicare, nor my late husbands health insurance will cover my child. I have a little in investments, I started saving late so there’s not that much there, but it’s invested. Right now I’m not touching my investment money. When I finally do I’m going to use it for little quarterly “bonuses” for things like some local trips. I did my “ big” travel ( Europe, etc..) when I was young, and have no desire to go back to those places. If you are not retired yet there are a couple things you can do to prepare: First, build your investments as much as you can. Now is a good time to buy into the market as the market is down so it’s like everything is on sale. Learn for yourself, don’t just hand your money over to someone else. Next look on th Social Security website and see what your proposed monthly amount is. This will give you an idea of how much SS will help. If the amount is low. Then make these last earning years some of the best in your career to raise that monthly amount up. Social Security uses a formula to determine your monthly amount based on your 35 Best earning years. If these last earning years are better than earlier years those lower earning years drop out of the equation. Next, go over your budget and expenses, trim everything possible off it. Doing this now will help you find money to save. Become an expert in frugality. Watch ever You Tube video read every book you can find on it and implement what you can. Next what kind of supplemental income can your child get? SSI? Find out and maximize it. Can your child qualify for other things? State health care? Food stamps? Take advantage of those things. Next, how is the cost of living in your area? Can you move to someplace with a better cost of living during retirement? (Moving is my next step) Keep written records of budgets, savings, expenses, proposed places to move to. Make a written plan. That’s a start. My plan also takes into consideration my developmentally challenged daughter who will, eventually, probably, move back in with us. Best of luck.
I bought my rural acreage retirement home many years ago, retired in 2019, debt free, moved and sold my two story house in the city beginning of 2020. My expenses for housing are about 1/3 of what they were in the city. No water/sewer bills, lower elec/gas bills, as my retirement home is only 1k sq ft. Since I don't live on, or near any coast, my house insurance premium is low, and my property tax is just over $600. a year. I save money monthly, out of my SS alone, so haven't had to use money from my pension, or what's in my IRA yet. The employer I retired from reimburses me monthly for all my medical premium's, including Medicare, and supplemental. Even though I planned for my retirement, it's working out to be even better than I expected.
The Transamerica Center for Retirement Studies estimates that the average Baby Boomer has $202k saved up for retirement and own 43% of the stock market. According to the 4% Rule, this would result in a $8k annual retirement income. Judging by this I feel under pressure to get the most out of my $300k in savings. In order to increase my yields, I am in desperate need of guidance.
A financial advisor can help you properly estimate your retirement income. It's really difficult to get into the stock market that I would have suggested as a mere investor and understand how profitable stocks work.
I stopped listening and taking financial advise from these TH-camrs, because at the end of the day, I end up with a bunch of confusing stocks without knowing when to take profit, In reality, all I needed was professional advice to take advantage and make profits.
I envy you, I’m still trying to recover from losses I incurred in 2021/2022, who is this investment adviser you work with, I’m intrigued and I could use some quality guidance.
This reference seems valid.. Just looked up her full name on my browser and found her site without sweat, over 23 years of experience is certainly striking! very much appreciate it
Clip coupons, seriously live a cheap high quality life
Saved $250 per month not commuting. Saved $260 per month on lunch. Saved $$$$, not shopping as a hobby. Recouped $$ by selling stuff. Only being on SS, pension, IRAs, 403b means a 12% income tax rate. We are living on less than what we bring home every month.
I've done distributions and gave most of the cash to my family. Use it now. See the money used wisely. Money is a tool. Cheers!
I hope.
That is why I wanna retire ASAP.
Great information. As far as cars goes. If you own one to get around town, that's all good. Respectively sir. Lots of seniors that are low income no savings use the OATS bus. Many senior services programs give a free ride pass to anyone on social security that makes under 1k a month. To larger towns if you live in Rural areas. Great video
Thanks for the video. I feel better about the calculations I have done for the future. Obviously a lot of people tell you that you need much more. Well I live in rural Indiana. My family of 4 lives on less than 4k a month. In retirement I could see eaily living on (the equivalent based off inflation) of only 2000-2500 a month. The fact that I (should) have around 500k saved by the time I retire, which means, with SS we should be able retire very comfortably.
I learned how to hotwire cars back in the 1980's. If I need a ride, I'll get one. Can't wait to retire. Thanks for the car advice. Everything old is new again!
🤣 im retired with $1400 social security and i draw $0 to $300 from 401k about 5 times a yr. my house is paid off and i drive an 2012 Prius. Many months i have money to save $500 a month. No pets. 1 son that is totally independent. I vacation with friends every 2 to 3 yrs out of state. I eat very well at home. I never feel i miss anything. Keep it simple.
Just stay in your home as long as you can, because it's when people migrate to apartment living is when finances dwindle. Too many are being sold on "retirement community" living, which is becoming very very pricey!
Your “house” must be a tent or a pop up camper.
That’s amazing.
My house was paid off too.
But real estate taxes and homeowners insurance came to almost $1000 per month.
Utilities- water, electric, sewer, internet another $500.
After that I’d be in the hole if I lived on $1400. And really skinny. Lol.
@@abrahams.lincoln6749They propably has a very nice home. They just made wise decisions throughout their life.
I just learn that some states doesn't have you pay property taxes once you reach 65.
@@Mexicobeanpole500 for internet?
I'm going to work deeper. Good luck on your planning people.
You always have such a calm way to explain everything, and therefore make me feel calm, thank you so much! I have been retired for a little over a year and have been enjoying it very much. My biggest bills are money I put aside each month to pay my house taxes, and the monthly budget utilities bill, which went up each and was unexpected. Still, I eat well, almost no eating out which I prefer anyway, less beef than I would like, but peanut butter sandwiches have been a favorite since childhood, so I always have plenty of that.
Many people do not live in major metropolitan areas. Our parking costs for a 2nd car, just like the first one, are nothing in the driveway of our paid-off house. The car itself is paid off and maybe we do most repairs ourselves. An older car in such an area might only cost $400 or $500 per year to insure. My old camry costs less than $600 per year just sitting in the driveway and to the extent it is driven, it takes depreciation off of the other car and running costs (gas, oil, tires, etc.) are there whether you are using one car or two. If you have two cars, then it is easier to maintain and repair them yourself.
I'm still quite far from retiring, but having helped manage my mother's decision by collecting information her financial planner wanted when planning to retire a few years ago, I was already aware of most of these things. The one big difference I have from my mother though is I assume I'm not going to have any children (there are many reasons for that which I won't go into). I'm currently seeing how much time my mother spends taking care of her mother, and up to a few years ago her father as well, and I'm scared about the costs of having to hire people to do these things for me, and that's assuming they can even be reasonable replacements for children in terms of actually caring about you. I don't want to die alone from some minor injury or being unable to get to a doctor because I can't afford someone to look after me when I'm older. Given the trends in health care in general, I have absolutely no idea how I'm going to budget accurately for that.
Seeing the deterioration of my grandparents has also made me much more aware of the utility of exercise, and I hope keeping good care of my body will make life when I get to their age a bit more livable without constant help.
Get long term care insurance
I e joy your videos. You should bump your volume up a bit though
Thank you.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market
Stocks are pretty unstable, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks|couple months, so I think there are alot of wealth transfer if you know where to look.
One thing that hit me a few months ago, I was using my current income as my expected costs in retirement. I was also including how much I saved for retirement monthly. I finally realized that "I wont have to save %30 of my income in retirement!" that was a huge awakening.
more like a huge mistake than huge awakening. better look for the rest of your mistakes before you have another awakening.
Jonathan: Depending on your age, you could be looking at a 30 year retirement. Even in retirement you should continue to save a percentage of your "income." Not the amount you saved before retirement, but some savings. One man's opinion.
Age 77, retired 4 years here and I enjoy your videos which are quite useful and generally predict much of what my wife and I have experienced. The big gorilla is healthcare: Medicare part C ("advantage" plan) or a Medigap insurance and a drug plan (part D), whichever path you choose - and those "donut holes"!
Before I retired I went through the income exercise at the beginning of the video. That let me know my pension and SS were enough to give me at leafy as much net pay as I had my last month of work. Of course, inflation is the big unknown. If it averages out the same as the last 10-20 years I’m fine but if it’s like 2022 for an extended time I may have issues late in life. Thanks for you very informative videos!!!
My pleasure
I found that I don’t buy anything except food once retired. No longer interested.
I even sold, & donated most of my clothes, jewelry, and handbags.
I’d be retiring or working less in 5 years, and considering this financial recession, I’m curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $250K per year but nothing to show for it yet.
Do you have a 401k? you should contribute to your retirement diligently, or better still look into financial planning
Very true, I find myself lucky enough exposed to money management at an early age. Worked full time when I was 19, purchased first home at 28, fast forward time... I'm 50 now, got laid off March 2020 amidst lockdown, a blessing in disguise. At once, I consulted an advisor to stay afloat and with subsequent investments, I'm only 15% short of $1m as of today.
this is huge! would love to grow my reserve regardless of the economy situation, my 401k has lost everything accrued since early 2019, at this point, i'm in need of guidance, can you point me?
I’ve shuffled through a few experts in the past, but settled with ‘LOREN LENA WALKER’. The strategy they use is recession-proof, more specifically profit-oriented, and most likely, you'd find her basic info on the net, she's a renowned advisor.
thanks for info! curiously copied and pasted her full name on my browser, spotted her page easily, she actually looks very distinguished
Moved to my retirement home many years ago well before retirement; 2-5 more years before I plan to retire.
I'll either keep my house and get an oceangoing sailboat or sell my house and most of my belongings and get a bigger oceangoing sailboat and live aboard.
I plan to spend part of each year sailing the southeast US, Bahamas (700+ islands) and the Caribbean.
I think it all comes down to lifestyle. If you have a paid off home and like to stay home most of the time, retirement can be cheap. Of course eventually we will face rising health care costs as we age, but this is nearly unavoidable.
Retiring next summer at 64, not taking my SS till least 67, will have a pension of 4200 per month, have no payments of any kind. Also have a large sum in a HSA , do not feel I need to touch my portfolio, but if i do, its there if needed.
These high pensions mentioned in the thread blow my mind. I have a good salary, but I will be lucky if I walk away with 2,200 per month.
Congratulations.. regards from Athens Greece...
Hi I’m retired getting $2500/month, a $1000 pension/month, and draw $500 from my retirement account. I have a mortgage, HOA, and my other bills. I have no credit card debt. I do fine.
wass there a question here?
Thank you for sharing Mary Ann. It helps others to see that it's possible to have a good retirement on $4,000. There are people doing it on $2,000 and still take trips & cruises and owns a house.
Many Finanical companies wants people to believe that you need so much more money and it may be true if you are the type of person who has expensive taste & wants.
Wow, you are getting more than I was when I was working! Bravo and enjoy!
Is $2500 from SS?
@@kristinab1078 yes
I sure hope so! I spend a lot
Thanks fish
I practice "unbudgeting," which is studying how I spend my money to better predict how I will need to. I have an annual average for all categories.
My utilities have doubled over the last 3 years. Homeowners insurance went up 50 percent. Food expenses climbed 30 percent. This kind of unanticipated price spiraling can cripple a retiree trying to make retirement savings stretch, yet these aren’t getting a mention in your planning scheme.
I recently discovered your videos and now they ❤️consume my evenings. Thank you! One question - iPhones! Are they are a necessity or luxury? I am not referring to flip phones with talking capability only, but the fancy-schmancy iPhones with texting, Internet, and other services at 3x the cost of a home landline. Whatdayathink? 😊
Thanks for a more realistic health care cost figure. I had previously heard over $200,000 just for the female so $318,000/couple sounds better! I agree it’s not all at once and May mostly fall at the end. Hopefully a do not resuscitate will help prevent destroying life time savings for the last days
Thanks for the info. As everybody is, I am worried... do I have enough? This helped me realize that I probably do. I think I could walk away and retire today if pressed and be OK. I commited to my employer to go to a certain date and I will do that. But my date is not far off!
My mom paid into LTC insurance for 35 years at a cost of a few thousand each year. So the total expense was around $70k. She was a very healthy lady so the insurance didn’t kick in until later in life. Many don’t understand that LTC doesn’t pay out until the person is incapable of seeing to their own needs on a variety of items, such as bathing themselves. So this might seem like it’s not worth it, and many never need the insurance because they go quickly, heart attack or similar. Mom’s in a memory care facility. In just the first year of insurance paying out, we’ve already recouped the entire investment. A few thousand a year for this insurance is a lot easier to afford than a nursing facility that runs $6-10k per month or higher. I always tell people to 1) get it before major health challenges (usually mid-late 50s); and 2) you don’t need to have enough insurance to cover the entire expense. Even a few thousand each month may make a difference to the care you can afford when your need is greatest. Medicare does NOT cover this expense.
5%+ interest on fixed income is helping this saver. 40/60 AA and interest on fixed income + dividends > my expenses. Still have Social Security coming between 4 and 7 years from now. However inflation is definitely having an impact on everyone’s living expenses. My Auto insurance nearly DOUBLED in the last year. I was able to get a reasonable rate for Homeowners insurance but I’m hearing horror stories from many of my neighbors. Thank goodness for the ACA my health insurance is reasonable even though I had a health scare last year and met my maximum OOP. My biggest accomplishment is getting my daughter through college debt free. She is now making more than I ever did 😊.
Nice work!
I am disabled and 60. I get subsidized housing limited to 38% of income, get free tuition for grad school and free meds, free rides to appts and free bus fare
I'm worried about the cost of healthcare, Medicare premiums are actually higher than what we were paying for my husband's union health insurance plan a month. His union is giving him a Medicare Advantage plan at 65 with a fairly high deductible compared to the $600 family deductible for both of us we had before and I have no idea which doctors are going to be covered under the Medicare Advantage plan. bc he hasn't gotten his new card yet.
In the UK much of this is also applicable. I'm at the low end for a pension pot but compensate by making that smaller pile work as hard as possible. My retirement date is next spring but the combination of less deductions, less expenses and making my money sweat for me (plus state pension) will carry me over the line. Maybe a side hustle but hopefully not. The video is great Sir! It's a challenge for sure but a potentially enjoyable one with more self determination and independence than I've ever had in my adult life.
If you are debt free, own your home, own your car, have health care, and a modest and steady income you should be fine.
do you think should is a plan?
@@DrSchor If you have everything I said in my post taken care of you will be fine unless something extremely horrific happens. No plan is ever 100% which is why I said should instead of would. As an example: Most people that die unexpectedly in the middle of the week probably had plans for the upcoming weekend. However, you should absolutely plan on having your debt paid off before you retire. I did. I retired at 59. You can't retire if you have a lot of debt no matter what your age is.
I agree this is a solid general principle for most. Works for me!
Retired now for over two years, retired at 68.5 with two pensions and SS is now 70k combined for myself and my spouse. No significant debt. We are in good financial shape, able to help our kids and set up education accounts for our five grandchildren. I enjoyed my high risk demanding job but am happy to be retired. I do sometimes miss the challenges of my workplace.
Hi Geoff,
Thank you for all the work that you do Jeff I am a US Air Force disabled veteran and I can’t tell you how difficult it has been. I really appreciate your informative, helpful videos that help all levels of retirees get the most out of their life. Hope someday I can have you as my accountant and/Financial advisor I know you’re a CPA if you do have room, please add me on to your client list… Peace be with you and have a wonderful week🇺🇸✈️🙏☮️💜😇⭐️
You too Jimmy
MODERATOR...Be sure to watch your comment sections...I'm seeing LOTS of spam comments that give the names of commenters financial advisors. These are obviously spammers. Might want to delete them. @@HolySchmidt
Very good, I think the most important thing is your debt load going into retirement, it must be 0 and like you say downsize on housing and cars. Healthcare is still the wildcard for me
I lead a very laid back lifestyle. Everything I own is paid off. I dont need to spend money to be happy! I live on my $4,000 a month income. Really I live on half of that. Do plan on some travelling. Nothing extravagant. Im happy with museums. local sightseeing, ect. Im very happy and content. I just turned 71.
Some people aren't ready but their health will force them to retire, be prepared.....especially in America.