"$2 Million Is Nothing...It's Pennies In Today's World"

[@stemikger]

I'm a 60 year old man retired with 1.3 million and I live in Staten Island, New York. My number one advice to you is do not listen to Suze Orman. I'm having the time of my life

[@michaelt2974]

Wow! I’ve been asking here and there if successful retirees might reveal their asset allocation. Any chance you can reveal that. I am going to be forced to retire early and I am so worried it won’t work out

[@swu1199]

​@michaelt2974 2/3% in an index fund and 1/3 in a growth fund resulting in an average rate of return of 8% over 20 years, including some very bad years.

[@craigs.t.3321]

Sure You’re having the time of your life now at 60…. We’ll reevaluate when you’re 85 and that 1.3 mill has been dwindled down to ______. Not saying you won’t be fine - you probably will be - but people shouldn’t be short sighted either.

[@ivanvarykino8202]

Glad to hear that. 60 myself and just retired in the midwest. All the best to you!

[@alistairrobinson3865]

Awesome work my friend 🙏

[@Faben202]

$100M? That is nothing in today’s world. What if your Gulfstream 3 needs a major overhaul or you need to upgrade to a newer jet? You’d be screwed!

[@bvoyelr]

Ironically, even Gulfstreams are cheap for a 100 millionaire -- it looks like they cost under $10 million used. I get your meaning, though ;)

[@Ethan-bu2zy]

@@bvoyelrbuying the airplane is just the beginning. Maintenance, hangar, insurance and pilots will cost you the most over time.

[@a012345]

@@bvoyelrUsed? What are we, peasants???

[@JBoy340a]

@@Ethan-bu2zy Yep. It is the reason that there are only two happy days in airplane (RV, Boat, ...) ownership. The day you buy it and the day you sell it.

[@guillermogouldburn763]

It's nothing if your name is Elon Musk.

[@Qpitmaster]

She's worth $75M. Her perspective is naturally warped.

[@EvanKnightIsGood]

She is out of touch. In fact most of these financial influencers that have been successful for a long time are out of touch and should not be listened to anymore. Money changes people and warps perspectives.

[@Jim1971a]

Just because she is in the 1% doesn’t mean she doesn’t know what she’s talking about. She’s a personal finance expert and has looked over the finances of people in all income brackets during her long career. She knows how to advise people in all levels of wealth.

[@moleahy6880]

A $2MM net worth puts you in the top 10% of the US so that is hardly pennies.

[@sambira]

Orman doesn't really know how people live. $100k a year to just live is huge for almost all Americans. That is not realistic at all. Most folks haven't made that much a year in their entire lives, why would you need that in retirement where you need less? Makes no sense.

[@laughoutmeow]

My inheritance is more than that so I guess I'll be worth a little more than a penny 😂😂😂

[@montyi8]

Top 3-4% is correct

[@Valmontst]

And if you don’t include the equity of your house, it puts you in the top 8%!

[@t0dd000]

It's not enough to safely retire if you are, say, 40. That's her point, and she's not wrong.

[@dforrest4503]

Giving up the healthiest years of your life by working until 70, or you have over $2 million, is not a good trade for most people who will be less active the older they get.

[@ColdRunnerGWN]

Exactly. There are three phases of retirement - the 'Go Go', 'Slow Go,' and 'No Go'. The 'Go Go' phase generally ends in your early to mid 70's, so waiting to 70 just to have $2M is a horrible trade.

[@eddiemalvin]

When I was younger, I used to view retirement as an all or none pursuit. By the time I reached my late 40s, I realized I was able to do almost all of the things I plan to do in retirement (beach house, travel, dining out, low stress, debt free living). I still plan to retire in a few years in my mid 50s, but I no longer view working later in life as "giving up my healthiest years" or "waiting". I'm already doing most of the things that I've been waiting for.

[@Anonsense-w5g]

@@eddiemalvin I’m 46 now and we’re planning to sell the house and move somewhere cheaper when our youngest finishes high school in 8 years. If she goes to college we’ll keep working another 4 years. So I’m looking at 58 at the earliest. Scary.

[@paulschulz5956]

If Suze thinks $2 million is worthless, I'd be happy to take it off her hands!

[@floydestelle6242]

@@paulschulz5956 the point of retirement is to live at a similar standard of living as if you are working. U need to be able to replace 80% to be close to the same, higher the better. This is with all sources, SSN, IRA, 401 OR 403, cash savings, CD

[@leftwingersareweak]

Lololol. Me, too!

[@almontoya5703]

It depends on lifestyle

[@tkdevlop]

Do you ever see a rich people giving money?

[@xaldath4265]

​@@tkdevlopregularly

[@Fscmco]

Good video, I retired at age 54 with 800k in retirement accounts. I’m 78 today with most of the original amount.

[@FIRE_DrNinjaTurtle]

Well done.

[@TheFirstRealChewy]

What's your annual expenses? Are you living on just your $800K investment or do you have other sources of income (social security, pension, side hustle, business, etc)? I'm curious because I tend to see people say they are comfortably retired with less than $500K invested but when you dig deeper you find out that they have a government pension and rental property that they didn't include in that number.😊

[@GAFB1122]

I'm more interested in what you've done for the last 20 plus years. I'm 51, make a good salary and I didn't want to retire and be lost. I recently went 4 days per week (32 hours) and reduced my salary by 20% and I still receive holidays and vacation. It's been great. Plenty of free time, lower stress, and I still have one foot in my career that interests me.

[@FIRE_DrNinjaTurtle]

@@GAFB1122 many of start later in life. Catching up was hard, but retiring early is worth it. Now, my money makes more money than I did when I was working

[@Scott-be1cq]

I love to hear this, I am 54 now and have a little less than that but pretty close. I have not had work since last December thanks to the horrible job market and economy. I was thinking about doing something part time or just hanging it up entirely. Good know that the retirement option is workable.

[@murraypassarieu9115]

People need to stop giving Suze oxygen. She’s unhelpful and if people ignore her she’ll go away.

[@cniht]

She is indeed 'dumb', point blank.

[@a012345]

Honestly, she’s a grifter and doesn’t know shit about finance. She is the product of marketing. Majority of people eat up anything from they think might be an authority on a topic without thinking about things logically.

[@jdyork69]

She's the Dave Ramsey of Suze Ormans.

[@OurRetireEarlyJourney]

Amen

[@Coast_to_Coast]

Ya. She’s useless.

[@tressalewis7004]

You are right, Erin. We need to be prepared. I had to retire early due to a progressing disability. Five years ago, I lost my ability to walk. We always think we will live a healthy life, especially if we eat healthy foods and get some exercise. But that is not always the case. We need to prepare for all possibilities. Thank you for the awareness that you bring.❤

[@pengmagno7395]

Been listening to Orman for close to 25 years, more so for entertainment value than sound financial advice. She used to cater to the little man with real world advice about real estate, debt and education. Nowadays it seems like she’s back with a whole different message and of course a much higher net worth. She used to end her show with “People first, then money, then things.” Looks like priorities have changed.

[@cniht]

Suze, to me, has always been 'money first, her money' then everything else.

[@jaynelson8304]

Suze Orman is nuts!! She also suggests we all work to 70. Fine for her and her occasional TV appearances but a bit more difficult for those of us making a living with our back.

[@floydestelle6242]

Maybe she would fall asleep in her chair and fall, a break a bone! Don't you know

[@randymillhouse791]

"Splurge for that hip replacement surgery. They can perform the operation as you are fixing a tool for a metal stamping machine these days. NO LOST TIME!"

[@mysticaltyger2009]

Honestly, it's hard even for people who work in office environments. Lots of companies get rid of people in their 50s and most of those people can't find jobs with the same incomes as the ones they lost.

[@randymillhouse791]

@@mysticaltyger2009 I hear you. Here's your strategy: Apply to EVERY JOB OPENING in your field. You will get calls to interview. Before and after the phone screen, look up the people in the company. I did this and found that older people were the norm at my current company. I am 59. A lot of people in high level positions are older than me. There are companies out there that don't discriminate on age. I have responsibilities unlike those of a younger person that can just job hop every 8 to 16 months. I show up every day and do good work and make errors that I ring the alarm bell on. This is called trust and maturity. You need to find the companies that value this.

[@mbrum3230]

She isnt nuts...she is a complete fraud.

[@katana1960]

I retired 4 years ago with $1.1 million in the 401K. I get $2850 in SS, $1400 from a rental, paid off my house and have no debt. I've withdrawn $25K every six months since retirement. I still have a little over one million. The SS and rental pay all my monthly bills and use the 401K for vacations and large purchases. I don't spend like an idiot, a million is plenty.

[@t0dd000]

Ormand wasn't talking about you. She was talking about the 40-something early retiree. And at that age 2 million is taking a risk: no social security, no Medicaid, and many many years of inflation and economic uncertainty to stretch that money.

[@rbaker3557]

I used to believe in Suze Orman and I even read her books from the late 1990s/early 2000's. She's disappointed me in that she has fallen into the trap of some people who have grown wealthy and have been wealthy for a LONG time - she's lost touch with the realities people in the lower income classes deal with. Suze, those of us who have been grinding it out day in and day out for many years can't wait until we're 70 to retire.

[@emilyL1239]

I like this content so much! It is funny that as a super savvy reached over 1M invested in late 30s, I found it rather frustrating that there’s always topics saying even with this much at 30s you will be doomed at retirement. Well, it is truly hilarious that most of people in US can’t even spend 500 dollars on emergency, yet they have high expectations on their retirement nest egg. They spend all they have for a car, a bag, a drink ware you name it, yet they cry out loud saying inflation kills them and now they think net worth over 2M is considered rich. I would say the only thing that is inflating is the compulsions of consumption.

[@dsvillalva]

Erin I love your advice. Not only is it intelligent but you deliver it with humility. You are an inspiration.

[@VictorAlves-pu4sq]

Quickly becoming one of my favorite finance channels on KZbin - right up there with the Money Guys and Caleb Hammer. Keep up the good work!

[@ErinTalksMoney]

Wow, thanks!

[@nwj03a]

You shouldn’t plan on the worst case, that’s insane. The worst case scenario is a nuclear apocalypse, or aliens invading, or some other bonkers thing. Plan for what’s reasonable to expect. 250k to take care of a disabled child or spouse you don’t have is nonsense. If you have one of those, sure, but if you don’t have a chronically disabled kid, any disability is likely very temporary. Planning for that is like taking a sick day 6 months ahead of time because you think you might be sick that day. It’s guessing and planning on a guess isn’t a plan.

[@marknuetzmann4935]

She is right. If something serious happens, $2M will NOT be enough.

[@robertryan3490]

According to 4% rule, 2 million will get you $80,000 per year.

[@spacecoastsurffishing1726]

My wife retired at 52 and I retired at 56. We had 2.3 million with 8/10 years to SS. Now at SS ages we have 3.2 million and have a retirement income of 150k per year! With free medical for life and we don't pay property taxes. I think she might be wrong about the retirement numbers!

[@mocheen4837]

Trying to hold out until age 60 to retire. We both switched to part time work at age 50. We have about the same amount as you did when you retired. Hoping to grow it to $3 -$4 million. I also have a pension, but want to delay collecting social security.

[@hamilton7012]

What state do you live in and what’s your state income tax rate?

[@Robert-z8z1z]

Why do you get free medical for life?

[@dewilson55]

I appreciate your willingness to share your story of having brain surgery. As the mom of a teen who has had two brain surgeries this year (epilepsy) watching your channel brought me a lot of comfort as we went through all of that. My biggest worry was that surgery would change him but seeing you express yourself with intelligence and simply explain complex concepts showed me what the other side of brain surgery can be like. Of course, as someone who has loved personal finance since an early age as well, I also love your content for that reason. Thank you!

[@ErinTalksMoney]

I am so sorry for what you and your teen have had to go through. It can be unimaginably difficult at times. The removal of my meningioma left me with epilepsy, which, as you well know, is very difficult and frightening. I hope your teen is able to make a quick recovery from the surgeries. And that the epilepsy is well-managed. and most importantly, I hope they live a very fulfilling life. my mom was my rock through it all, I know it was just as difficult on her, watching me go through everything, and that whole process made us incredibly close. My heart goes out to you. ❤️

[@terry_willis]

Orman is correct. If you want to live like you're worth $20MM and "only" have $2MM . . . you are screwed. 😄

[@MrTimbo17]

Retired early little over 2 years ago. Portfolio and Net Worth have increased approximately 25% during that timeframe, even while drawing from it for expenses. Glad I didn't listen to Suze Orman

[@rayanderson3164]

How out of touch Suze has become. She has quoted those numbers over the years. She is regrettably serious. By her definitions almost no one would even retire.

[@BlackMan614]

She's a shill for the financial services industry. They want you not to withdraw money - just keep contributing. It's all about THEIR bottomline.

[@searchersearcher8286]

I trades a million dollars of income for 15 years retirement Freedom

[@rayanderson3164]

I do know it isn't stopping us. We're retiring next spring at 55 for employer retiree medical, 401k access and pension income. Although we have more than enough, I hope "The Suz" will forgive our folly. How dare we....lol.

[@patty109109]

I can’t remember the last time suze orman *wasn’t* a joke.

[@ssing7113]

Well I was a multimillionaire at 25 What she says is correct The cost of living will only go up every year when retired. She also spoke of something happens. If there is a fire and insurance pays half your house what are you going to do…. Go live in a Minnesota studio now? If someone has above and beyond medical bills well kiss your whatever monthly money goodbye Also she’s talking from a point of view of not eating canned beans. She’s talking a quality retirement of travel. Good doctors. Not driving your 30 year old car So yes don’t listen to her if you want to be in denial. Just map if investments are in a depression for ten years. Unexpected medical bills. And now second see how long you’ll last and how poorly unprepared for hits you are. I say this as 37% of people don’t have $400 dollars in their bank. AKA most people never over calculate ( which her whole point is ) so instead of mocking her maybe there’s some truth in there. Can you take a hit if there was a 150k medical bill? There was someone sharing their story of being bite by a poisonous snake. I believe the bill was 200k as it wasn’t covered so can you afford a 200k accident. I bet not so when she says this maybe listen and realize you wanna wear a protective suit and start replacing parts with robot parts if you think under 2 Mill is enough for a quality life. I expect to stop the investment game at 20-30 Million as I know for sure I’m not going to be scraping by. I’m going to travel. I’m going to keep up my 250k lifestyle and only increase it with age as we’re the ones in charge of our life. So why not. Why not get what you want. You have one life!

[@SWGpittsburgh]

Thank you for sharing your personal health battle … it made your financial suggestions even more grounded in real life.

[@damienbates]

Health Care is the biggest roadblock when retiring early in the US. These days quality health care can be found in many other countries and 60k would allow you to travel to get said care and pay out of pocket.

[@darylfoster7944]

Obamacare isn't that expensive, especially if your income is moderate. The premium is heavily subsidized.

[@darylfoster7944]

Obamacare is heavily subsidized if your income is moderate.

[@darylfoster7944]

Obamacare is heavily subsidized if your income is moderate.

[@MaverickFJR]

Everything is relative…even in retirement. Where you reside in retirement is extremely important! I retired at age 55 with a $2M net worth (and zero debt). I also relocated to Tucson, AZ, which is not considered a high cost of living area. All I pray for is nothing catastrophic happens, namely a market crash or a serious health setback. 😊🙏🤞🍀

[@mocheen4837]

Hoping to retire at 60 with $5 million. It seems as though everybody has more. People all have nicer cars and clothes. I just assume that everybody around me is wealthier.

[@MaverickFJR]

@@mocheen4837 Unless you’re living in a high cost of living area and have kids you’re still supporting, $5M should be more than enough. Just gotta know how to live within your means and you’re golden. 😊👍

[@Reedtechnology]

Great video. I love the style of information presentation and your pace is excellent! Keep up the good work.

[@ErinTalksMoney]

Thanks so much!!

[@glasshalffull2930]

Only 0.1 % of retirees have $5 million in their retirement account. Susie is off her rocker.

[@a012345]

She thinks you need 10 million now lol.

[@gauravipal5691]

She was referring to early retirees.

[@glasshalffull2930]

@@gauravipal5691 My point is that ALMOST NOBODY who has retired has $5 million, but somehow they still managed to retire.

[@pytube777]

@@gauravipal5691if she means retire at 40? Then sure you might need 5M if you still have a 2M mortgage and a Lamborghini 😂

[@trevor6607]

She's a joke.

[@thirdman1228]

Erin, your is easily one of the best Personal Finance channels on KZbin. Keep up the good work!

[@BrianK-zz4fk]

Also depends on lifestyle. I retired at 38 8 years ago with net worth of a million and a 3% mortgage. I have a net worth of 1.7 mil now. I live frugal, drive an 11 year old car and cook 99% of my meals because I enjoy it and know what ingredients are in it. I still splurge on things I want to do like $400 for a recent concert but if my goal was to travel the world I would def have needed way more.

[@Reload77725]

Sounds like hell. NO THANKS

[@BrianK-zz4fk]

@@Reload77725 Why? You dont like to cook?

[@NicknamePending]

Congrats, ignore the naysayer. Everyone's vision for their retirement is different and therefore how much they need will be different too.

[@mysticaltyger2009]

Actually, lots of people travel the world on $1M as well. It turns out going on vacation for a week or 2 weeks and hitting the tourist highlights is the most expensive way to travel.

[@mysticaltyger2009]

@@BrianK-zz4fk I know, right? I like cooking, especially when I have the time. It's so much healthier than eating out (although I like that, too, from time to time).

[@JoeSmith-jd5zg]

Ridiculous, if those expensive things happened, but you still have your $40K job, you are basically just as screwed.

[@ErinTalksMoney]

Very true!

[@a012345]

Probably more screwed because you don’t have to time to focus on the problem while having to deal with the work stress.

[@gauravipal5691]

You would have disability insurance from work. Remember she said this in 2008 before Affordable Care Act was the law.

[@ViggsPR]

@@gauravipal5691she said this in 2018 not 2008 (Erin misspoke as shown in the asterisk on 0:56)

[@thehomeless_trucker]

​@gauravipal5691 this was done in 2018.... pause the video when she shows the podcast.

[@sailor123ize]

$2M can give you $120K return (6%) in stock market, together with $50K from SS. You can survive.

[@darylfoster7944]

The S&P 500 has historically returned 10%.

[@Zeldasmojo]

Suze said don’t take vacations as well. I stopped listening to her after that.

[@grateful.]

Worst case scenario is I ask my boss for Sunday off for my own funeral and he doesn't approve my day off 😂

[@DavidWadleigh]

The reason Orman is correct is that in America, with our for-profit healthcare system, one major accident or health issue requiring Long Term Care and that $2M will evaporate very fast. For those in the rest of the developed world with humane cradle-to-grave healthcare systems, a $2M treasure pile is overkill.

[@taurusthebull76]

Funny thing is most people in the US wouldn't have made nowhere near $2M during their working years.

[@TheNotimprezed]

Sad thing is every full time worker pays enough in SS taxes to retire a multimillionaire but few people achieve that.

[@hugohabicht9957]

Made? Yes. Saved? No

[@KJFC388]

Thanks Erin! One thing I’d like to hear more about is the belief that your costs go down 20% when you retire. People normally attribute this to less gas, fewer clothes, less lunches out. I think in fact , your costs go down 20% because: A) you no longer pay FICA ( Social Security) and. B) you are no longer contributing 15% to your 401K. What do you think?

[@Novaximus]

Nobody owns a home anymore, especially on their own to recommend paying one off before you consider retiring. Isn't it more reasonable to suggest being able to retire with the budget of being able to pay rent into and through retirement. Cause listen, If you retire at 60 and are luck enough to live to 85...that's only 25 years worth of rent you'll need. So if you have 0 equity in a house or even 30% worth, and a house is 500k to "own" You would only need 250k in reality to still have a livable space. You don't need to have a 500k house paid for and at this point most people won't. The amount of people around me that I've seen die 3 years after they've retired is pretty staggering. There's value in not spending your unknown years left of life not spent at work despite not being in the perfect financial situation.

[@johnurban7333]

You are so much wiser than Suzi Orman. I never listened to her advice because I knew it was bad. I relate to what you say because it speaks to the average person. I was also healthy most of my life than off work for 8 months because of health. Fortunately I was prepared and also tell people they need to be prepared

[@AanyaDarika_]

I am 53 and retired at 50. 1 thing I did do to retire early was to get out of the 401K and IRA programs. Bought rental real-estate and I am now a Limited Partner in about 3500+ units. I do not work.

[@FranciszekPawal]

I only contribute 5% to get full company match, that’s it. The 401K plan is designed for you to work until you are about dead. Also, the government does not have their hands on it yet either.

[@AnkurYo]

Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.

[@xavier_lucas]

The decision on when to pick an Adviser is a very personal one. I take guidance from ‘ JenniferMackimmWesley ‘ to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.

[@tarikviaer-mcclymont5762]

​@@FranciszekPawaldo taxable brokerage then SBLOC

[@mrb552]

Who collects when they don't pay their rent? Is that you or do you pay someone to muscle them up?

[@Omikoshi78]

I modeled my expense retiring at age 45 until 85 and it was quite eye opening. For a couple with no kids I couldn’t make it work with 2M when I factored in healthcare, eldercare, dental care, insurance premiums, eventual Medicare supplements, long term care, medications, home repair, car repair, new cars when cars become unrepairable, food, modest entertainment, property tax, hoa dues, etc. It sucks but at 4% withdrawal rate and a paid off home/condo I realized I still need 2M for a very modest retirement, 5M for a comfortable one. We should all try modeling what is needed to sustain life as our needs changes across our lifetime.

[@jglee6721]

If you have no kids then consider retiring overseas. 50% lower cost of living is easy to find. Just learn the language.

[@angelasoWA]

$2M at full social security is different than trying to FIRE at 45. But $5M net worth seems reasonable at 45.

[@iceman498747]

Erin, I retired @ 55 years old in August with less than 1 million in my 401k & I made 48k in dividends this month. I won't touch the money until I am 59 1/2 or if I need some. Even with a 10% penalty I can still live comfortably. Your videos are great & very informative. Wish I would have found you sooner! Thank you for all you do!

[@CraigandMandy1]

I retired six months ago at 55 with around $1.5m. I guess I'm doomed..😉 we will see. 🤷🏻‍♂️

[@rriqueno]

Me too. Im 51 and I plan to retire in seven months aprox 1.5m no debt. Good luck

[@ariefraiser140]

But at least you'll have fun heading to your doom!

[@mateobaysa2055]

Need to dole out or give away some of that money, Craig. As when die that money is no longer yours and could cause your family to fight amongst each other. Sharing is caring, Craig. 💯

[@michaelt2974]

Any chance you can reveal your allocation? I am going to be forced to retire next year too early at 59 I am scared crapless I won’t be able to make it work

[@jayholiday256]

I’m retiring this month at 63 with a couple mill, I think we’ll be fine

[@edwardgh57]

Excellent talk Erin, When test driving retirement, I use percentages , So our total yearly spending is $100k. The retirement income from 40 year pensions ,social security is 123 percent of our spending, positive 23 percent of in income. Don’t need millions, just no debt, and hard work made this possible .

[@scott-gy6fe]

i am glad I had enough sense to know when Sue and Dave Ramsey are full of baloney...

[@blktauna]

Ramsay is great for getting out of debt. After that... run away.

[@kevinjlynne]

Thanks for doing these videos consistently!

[@ErinTalksMoney]

Thanks for watching!!

[@jonathanfoster2263]

Suzy Orman has become detached from the reality of every day people. My father in-law retired with a paid off home and no debt at 62 with only social security. he did that for 31 years and died with 10K cash in his pocket.

[@thehomeless_trucker]

@jonathanfoster2263 On that extreme side, everything you do has to be free or low cost. Zero traveling around the world on that budget. If he needed LTC, he would be moved to the nearest open Medicaid bed, even if it's hours away from family.

[@lesgrossman9492]

Sounds awful

[@xlasvegan7x]

Same here 800k savings for emergencies plus my home and two rental properties owned outright..I think I’ll survive.

[@mysticaltyger2009]

*Suze

[@mysticaltyger2009]

What your father-in-law did was skating on thin ice, IMO. But I get your point. Even if you retire in your 30s, few people will need $5M if thy manage their money reasonably well.

[@leftwingersareweak]

Love the outakes at the end! So funny.

[@autumnfragrance6326]

I largely agree with Ms. Orman. If you don't have an income, You need at least $3.5 M to retire early.

[@Valmontst]

I agree. Especially with the cost of everything consistently skyrocketing.

[@autumnfragrance6326]

@Valmontst Agreed... many of the people disagreeing received a significant inheritance.

[@aall6216]

Many disagreeing have not had a disaster.

[@Robert-z8z1z]

Why not $30.5m? Where do these arbitrary numbers come from? You just randomly settled on this amount?

[@Robert-z8z1z]

@@Valmontst Stocks will be going up in the next year or two to make up for the lower interest rates on CDs and bonds. That's income.

[@robertd..17]

Most of the retired people I know have nowhere close to 2 Million. If you were making 60,000 a year. It would take you 30 years to make 1.8 million. Probably only bringing home 1.5 million. If you were able to save the 2 million or get it in an inheritance. Invest it. If you average 5% a year that would be 100,000 a year. Of course you would pay taxes but you paid taxes on the 60k. Retirement is different for each of us but don’t work until you drop listening to unrealistic expectations.

[@annarakannan6620]

Suze Armon’s best grade in school was a C. She said this herself. He had severe learning issues and quit school. She found a niche back in the day when Americans knew nothing about money. Just keep this in mind and come to your own conclusions.

[@pauls6677]

There is a saying that many A students work for C students

[@streetstroller]

​@@pauls6677That saying comes from Robert Kiyosaki and makes no sense, much like most of his financial "advice."

[@randymillhouse791]

Suze loves the poorly educated...

[@randymillhouse791]

@@streetstroller That guy is in a long line of joke hucksters like Suze.

[@ivanwyatt6069]

Thanks for all you do.

[@Redneck_Ed]

3:19 her assumptions don't match reality. Maybe if you had long-term care needs for 1 year or so, ok. Otherwise, what happens is that the nursing home gets everything, lol. If you have a 2M estate, a 3M estate, doesn't matter. If people are worried about extremes, spend your time looking into asset protection techniques and Medicaid strategies to cover long-term care. Gotta plan early though. At least 5 years prior to your long-term care need.

[@KenLaing-u7u]

Appreciate the practical breakdown with actionable lessons. Also loved the bloopers at the end 😊 (enticed me to subscribe @ErinTalksMoney)

[@ErinTalksMoney]

Welcome to the channel! 😊

[@michelem226]

I've noticed that the early retirees on social media aren't really retired. They are actually content creators. Some of them also make money as landlords or house flippers, etc.

[@hanwagu9967]

Agreed. It's annoying to read and hear about these so called FIRE people who claim they are retired but aren't. Redefining the word retirement doesn't mean you are retired.

[@ihaveadreamformykids4400]

Take care of your health now and $2M will take you a long way.

[@joe62845]

2 mil maybe nothing in the future when I actually retire if inflation keeps going nuts. Although I'd think 2 mil now would be decent at a retirement age. Retiring a little early it might be ok too if they live frugally.

[@Novaximus]

Suzie Orman Show..."Hi, yes. First of all I think you're awesome. So I was calling to see if you think I can buy a Soda. I've really been thirsty and wanting a nice Diet Coke." Suzie..."what are your bills and how much do you make? ...mmhm...ok..." "NOOOOOOOOOOOO!!!! OF COURSE you can't afford to buy a soda. Are you nuts!? You only make 80k a year!!!! You have a cell phone bill. Haven't paid off your car yet so you still owe 6k on that. You haven't prefunded your next 25 years of rent. And you just want to go out and drop 2 dollars you don't have on a soda?! Listen to me Honey. If you're wife ever found out you bought that soda, she'd be out that door by days end. You're going to drink water. It's free. It will quench your thirst and instead you can put that 2 dollars towards my new Suzie Orman financial planning organizer kit"

[@seccat]

Most people don’t need to support a disabled family member, COMPLETELY OUT OF POCKET. If you do, retiring early shouldn’t be an option if you only have $2M. That is why you need some level of insurance.

[@vinyl1Earthlink]

Suze makes one mistake - people who "retire" at age 45 with $2 million don't really retire. It's called FINE, not FIRE - they go on to some sort of work that they find enjoyable, after working 12 hours a day to pile up the $2 million in the first place. Sure, the antique store or woodworking shop won't bring in the income they made at Google, but they can take some investment income to make up for it. And instead of paying the rent in SF, they're out in the boondocks. If you are 65 and retire with $2 million, you'll do fine. SS + investment income will float you very nicely.

[@TheFirstRealChewy]

Yeah, it's simply called changing jobs. You're still working.

[@a012345]

@@TheFirstRealChewyWorking a hobby job that you can quit anytime is vastly different than having to work to make the most money at a corporate prison. If your goal is to retire and just stare off at a wall, you’re better off working. You’ll get sick of travel after the first year and will eventually find something to occupy your time.

[@Valmontst]

With the current administration, and the likelihood that it will remain for four more years, I’m not putting much hope that Social Security will be helpful a few years from now.

[@tomjensen618]

Suze Orman is selling her seminars, plain and simple.

[@Chet_24]

Start working when you're 16. Skip college after high school, work full time, and have a part-time job so you get 55-60 hours a week. Put $20k a year into an index fund and then retire overseas when you're 30 and enjoy life. Move the funds from index to dividend stocks after and live off those. I wish i knew that 20 yrs ago. Instead, I'll be working until im 55.

[@AQuestioner]

What investing platform do you recommend?

[@mysticaltyger2009]

I mostly agree. I'm 54 and If I'd just gotten my act together 2 years earlier, I'd be retired by now, probably with more money than I currently have. As it is, I'll have to work at least another 9 months until I'm 55 before I can retire. That liberal arts degree I got was useless in terms of earnings/career. Might as well have started working earlier.

[@Robert-z8z1z]

@@mysticaltyger2009 What do you say when neighbors or relatives whisper about "how can he be retired this early?," "he must be a bum," "what a loser," etc? That, and medical insurance are my primary worries about a very early retirement at 55.

[@robertsykes3242]

Well said your video. Great advice. It comes out to personal risk / benefits. Time is key to any investment life style…..with risks ie health.

[@GAFB1122]

Health insurance premiums and unplanned medical expenses are key components to consider. Thankfully, I served in the military, and I utilize the VA for all my medical issues. It's a benefit that I never thought of when I enlisted at 18 but so thankful that I have now.

[@robertbalian9144]

What a very smart lady. And your explanations are fantastic. Thank you!

[@ErinTalksMoney]

Thank you so much! I’m glad you enjoyed the video!

[@stevemaggs6781]

I retired at the age of 56 with $2.4 million in my nest egg, excluding my home. 14.5 yrs later, at age 70, my nest egg is 81% more in nominal terms, and 27% greater than inflation over this time. Our home is mortgage free and we have no outstanding debts. IMO, retirement isn't only about how much is in one's nest egg. It's all about one's income while in retirement and how good their medical insurance is. For some lucky enough to look forward to a great pension and medical benefits, they may now need less in retirement savings to live a good life. For others lacking sufficient retirement benefits, they will most certainly have to rely far more on their retirement savings.

[@patty109109]

Well done. Please treat yourself. My parents had more a year ago than when they retired. Father dead now, mom will be soon, and still refused to ever fly anything but economy, even though he travelled a lot and endlessly complained about how uncomfortable economy was.

[@mikeconnell4067]

Agree I started the year at a net worth 1m it’s now 1.2m. Just have personal ETFs and 401k I cannot touch yet without taking a tax hit.

[@mikeconnell4067]

Sorry to hear that.

[@mocheen4837]

Great job. I hope that I will be able to retire one day.

[@stevemaggs6781]

@@patty109109 While we have a budget, it includes ample funds for vacationing with family, taking family and friends out to eat, attending the theater, etc. Just this Summer, we took our grandson to Washington DC. He may join the military after high school. Also vacationed at a New Hampshire lake side home. I'm mindful that we'll need funds in our future no-go years for home aids, etc, but try to do things now, while we can.

[@user-gl9iz1bp1r]

Retirement is all about cash flow. We are retired and have a monthly positive cash flow of $2-3K. Net worth YTD is up $380K. We are middle class, do our own home repairs, cook at home, and winter in AZ.

[@ericnelson1283]

Let them eat cake - Suzy Orman

[@channelrtrsupercharged6218]

Also please consider health care. Many people I know spend well over $2000/each/month for healthcare. Essentially $50k per year for a couple….this will only increase regardless of administration

[@Harvest717]

It's a matter of perspective. Suze Orman is so wealthy that 2mils is pennies to her while 2mils to most people is a dream. Her advice does not apply to most people.

[@ariefraiser140]

The problem is she's giving advice to most people. The show she went on to say this had a huge audience of average working folks who likely will never see $2 million in their life. If she wants to offer that advice to her ultra rich friends that's ok but to try and scare normal working people is not ok

[@robincaldwell2068]

why do you prefer 5% withdraval versus 4%? I am 67 and retired and will need to decide which percent to use - thanks!

[@lotsaspaghetticodejr.6488]

If I had $2,000,000 I would put it into a mildly attractive interest bearing account at just 4% and live off the $80,000 annually in addition to my current job.

[@mrjuvy49]

Split it up, put 1m in a 6 month CD , and 1m in an S&P index fund, this will boost your income substantially..

[@snakeonia7542]

@@mrjuvy491 year cash, 1 years expenses in 1 year CD. 1 year expenses in 2 year CD. Other 1.7 in s&p. Withdrawal from the larger gaining account. Refill when you can.

[@hanwagu9967]

Where are you counting on CDs generating 4% in perpetuity for you to live off of? For example, where were CD rates in 2020s. CD rates don't stay at 4%.

[@mrjuvy49]

Keeping both with equities are better than investing only in CD's. My stocks have done very well this year. Did not say perpetuity, no can predict that. You learn as you go along. I know a lot more about investment that I did 30- years ago ,and it is paying off now.

[@Robert-z8z1z]

What if you unexpectedly get laid off at age 55 after a quarter century of working at one very taylored specific job that isn't particularly transferable? Would it be immmoral to just retire, if you have $2m? That's literally my situation. I'm not worried about money per se, but 1 medical insurance and 2 neighbors and friends looking down on me as a bum if I don't work. Should I care?

[@beth3535]

A challenging goal for most, especially if home equity isn’t considered. The only people I know who are confident are those who expect to inherit. My own situation (with equity of $350K) is $1.6. I still work part-time and contribute 30% to my 401K. My social security covers everything, not because it’s so high, but because my budget is closely managed and I eliminated my mortgage and car loan a few years ago. Other changes put $300 to $400 back in my pocket each month. But that took planning and patient execution. Takeaways? Investing carefully is very important. Earning as much as you’re able is too. Managing your home budget is, however, every bit as important as the other two musts for long term financial security.

[@lightbrightconnect]

Can’t stand Suze 😂

[@Robert-z8z1z]

She makes Dave Ramsey seem like a charming lovable teddy bear.

[@ld5714]

I liked the out takes, especially "I think I"m broken" - I laughed out loud on that one 😉 As for Suzy Orman, I have absolutely zero respect for her. All flash and show to focus on herself and validate her feeling of importance and self worth IMO. That aside, you did a nice job having a balanced and informative discussion around some of her comments and made very valid and important points for your followers. Your comments on unforseen disabilities was spot on and I appreciate you sharing your experience to help make the point to everyone. I too was blindsided, when in 2008 I suffered a tramatic brain injury in a freek accident. I survived it and the surgery but it took me out of the workforce in excesss of a year for healing, rehab and therapy. Ultimately, I retired earlier than planned. Erin, we have both been blessed as God had additional plans for us in our lives. Have a blessed week and keep up the great content Erin. Larry, Central Valley, Ca.

[@rarelycares8416]

Starting my career in the late '80's I ran the numbers myself and determined I would need $2.3 million to retire comfortably with a 99% chance of success at 55. This seemed to be a huge nearly impossible number especially since I was only making around $5/hr at the time and had maybe $1000 in the bank. So I buckled down and made saving a priority. Retired this year at 55 with $5 million in investible accounts. I don't consider myself rich because I never made huge amounts of money (my last year before retiring was my highest paid at just over $150k/year, my take home was less than 70k because of all the savings), but I know I will be very comfortable and will leave my heirs with a substantial inheritance. You need focus, you need discipline, but it is not impossible...it actually wasn't that hard at all.

[@darylfoster7944]

Don't forget to spend some money. It will be useless when you're 85.

[@rarelycares8416]

@@darylfoster7944 Oh, don't worry, living the life I want to live. I don't spend a whole lot day to day, but projects go first rate and vacations go first class.

[@geldan]

I tend to agree that 2 million is too low, my number is 3.5 in a vhcol area

[@justinmcnally5395]

The first Presidential candidate to propose capping full time elder care will be elected EMPEROR...The cost of senior care is absolutely criminal.

[@gordonschiff3621]

If they do that there will be no care. Lol

[@Robert-z8z1z]

In fact, they have no plans to do ANYTHING about it. This is true, even in the "socialist" countries like Britain, not just here. Basically, they are going to continue to let them drain people's money to nothing if they require long term care. I don't know why, but they think that's fine.

[@mikeg3439]

Depends on where you live. I'm 3.5M net worth but live in So-Cal. Even with 300K household/year, my wife and I don't see me being able to retire unless we leave So-Cal. It's SUPER expensive here and getting worse.

[@JB-kx9bx]

$2 million is plenty if you have a paid off house and that doesn’t matter where you live. On average if you have $2 million in assets it’s growing in equity between 150k and 200k a year.

[@Robert-z8z1z]

How the @#$% is it "growing in equity" by anywhere near that much????

[@frankoh3193]

I appreciate the clarification. I've read this article and clip before and initially thought it was ridiculous. However, after hearing your perspective, it makes sense now. (My wife and I are in our 50s and retired, with all three homes paid off, passive income covering our monthly expenses, VA covering our health insurance, and a half million dollars saved in investments for the future.) Again, thanks again. BTW, I love your channel. 🙂

[@larriveeman]

Orman is an elitist and clueless

[@gregkloe]

Since my FRA is 67-ish, I guess I'm retiring "early" since I'm retiring this year when I turn 65. 😊 My financial advisor told me to stop listening to those that say we need portfolios in the millions. With what I have, I will be able to put off taking SS until I turn 70. And at that point I could live on SS alone and let my portfolio grow. I have way less than 1 million if you don't count my home equity. It mainly depends on what kind of lifestyle one wants. For us, living in rural Indiana, owning one modest home and a couple of low cost automobiles with little desire to travel internationally, our money will go far.

[@floydestelle6242]

Oh, well i guess with no debt, house paid off, with 1.5M, i guess i still have more work to do

[@FIRE_DrNinjaTurtle]

I retired at 58.5 years old. I still have a side hustle and a pension and rental income. I have a higher net worth than when I retired

[@marlon82mc]

Exactly. Investments and assets can, and typically will, continue to appreciate. If you're also living below your means, your net worth will only grow.

[@RichieRich-pn3gg]

Exactly, thats how it works.

[@keithfrasier]

Great video Erin. How is your dog Peanut doing?

[@ErinTalksMoney]

He’s doing great! Had a big play date with his puppy friends while I enjoyed a little vacation 😊

[@kleindropper]

A disabled family member requiring $250k in help likely isn't going to survive more than a couple of years

[@seaborn7023]

I don’t disagree with Orman, especially today with the inflation of the last several years. It doesn’t seem extreme, even though $2.5 million today is about $1 million in 1980 dollars. So, $2.5 million today does make you a ‘millionaire’ decades ago. If you’re 65 or over you’ll be fine on that amount. But, Orman is right - $5 million is really the minimum if you’re retiring early, you want to consider yourself ‘rich’, and you want to live with no worries for the rest of your life.

[@Mojaveknight17]

I don't even have 50k 😢

[@Melior_Traiano]

Well, get going then.

[@mikeh5629]

Suzy is somewhat right. If you have $2M invested and are going to retire and start withdrawing from your 401k or retirement accounts you will have to pay taxes on your withdrawals. In addition , other taxes (property taxes) will take a bite out of your next egg. Our property taxes are increasing rapidly. My property tax is more than my social security and I only have a 2400 square foot condo. Also, inflation has been eating away at our investments. Shoot for between $5M to $10M.

[@comicus6769]

My condo is worth between 900 and 950K and my property taxes are less than my cable bill. I didn't have 2M (or even close to that) when I retired 13 years ago (age 54) although I have more than that now. I doubt I will be able to spend anywhere near my RMD's when that time comes. SO is an idiot. Live you life now and don't buy crap you don't need.

[@MrHandyDad]

$2 Million Is Nothing ??? Well then I'll take one order of "Nothing" LOL

[@tommiller3695]

She is crazy, I retired over 4 years ago (57). My only question to my financial advisers (i had 2 from diff companies) was can I retire and maintain my current lifestyle. They both said yes, 4 years later my net worth has grown 400k while putting our son through private college, moving to a new state and purchasing a home.

[@AnOldGuy164]

My wife and I are 75. A bit late to retire early, but The 4% rule or the 3% suggested are just stupid rules. Many people take those rules as an obligation to spend that much. Susie Ormand made her comments a rather long time ago. If one was invested 100% in stocks, one made out much better than the "worst case". More like the expected case. It should also be noted that the issues she considers are dealt with everyday and families get by spending much less. Susie was much more competent in the past when her investment advice was S&P 500 funds. My wife and I spend what we need to spend. As long as our wealth continues to grow faster than the 10% I set as a goal when we were young, my wife can spend the excess over 10% on whatever she wishes.

[@Robert-z8z1z]

How does it grow by that much when the stock market has been largely stagnant for a long time?

[@nareshgolla]

Someone has commented something and other is responding to it and I am watching. I am commenting on it and spending my time wisely. Lets forget talking about millions and start talking about billions soon.

[@mikezhou3650]

Even you only have $ 500,000 saving with a pay off house and $2,000 social security, you can retire at age 65, but keep a simple life. The problem is when you lose mobility( let’s say around average age 80, you can not afford assistant living or nursing home. In American society, you usually won’t get hands-on help from your children 24 hours a day if you have one or more, because of variety of reasons. So you may have to go to assistant living house or nursing home.

[@QUEENSBRIDGE_10TH_ST231]

Retiring early is not in the cards for most people, but working until the day you die is a tragedy. Save and invest your money as much as you can and retire as soon as you comfortably can. I retired relatively young but I’m fortunate enough to have a pension and some other passive streams of income.

[@gordonschiff3621]

Suze Ormond has a point but you can mitigate these risks with long term care insurance and very low debt. If you own your home and your cars etc and/or live in a less expensive location you can retire with less savings.

[@sfperalta]

If you're living Suze Orman's lifestyle, $2million IS peanuts. For everyone else, you can live on a lot less money. I retired semi-early (58) on 4% withdrawal of $1mil-ish, plus Social Security at 62 and a paid-off house (no debt). And I have other assets (house, stocks) not directly part of my income. Since mortgages are often as much as 30% of your monthly expenses, having a paid off house is a big thing, even if it means moving to another area or downsizing. Given that, the IRA & SS together are actually quite comfortable. Also, expect to pay more for healthcare once the employer plan stops. And like others, I wouldn't listen to much of what Suze Orman says. Years ago, she was actually pushing pre-paid debit cards as a way to "re-build" your credit rating in a kind of pyramid scheme. After that I stopped listening to anything she says.

[@mirofur8489]

Everyone’s situation is different. For Suze those numbers are her truth with her lifestyle. If you have social security and enough money saved to take out 4-5% for income and that is enough for you to live on then you are fine. The best thing I’ve done since retiring is to pay if you have to, someone to run your numbers and see if your plan is on point. I felt much better afterwards knowing I was good to go. The advisor might tell you that you need more saved but at least you can make an educated decision on how to proceed