3 Ways Seniors DESTROY Their Retirement Savings (The 70% Rule) 😱

In today's video from Medicare School, Marvin Musick focuses on key strategies to avoid common mistakes that can DESTROY your retirement savings. He focuses on the right timing for retirement and the importance of managing your Social Security Benefits effectively. If you're wondering how much money is needed for a comfortable retirement, this video has all the details for you.
Marvin also explains how delaying Social Security benefits can lead to higher monthly payments. Watch this video from Medicare School for valuable tips on protecting your retirement finances.
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[@bobnoll8719]

Marvin, I must tell you as a CPA who has practiced for 40+ years, Your videos are excellent. Thank you for taking the time to put these together.

[@hongs8867]

You need to know what your monthly expenses are to determine your monthly financial needs… people being told they need millions of dollars Is not accurate. KNOW YOUR MONTHLY EXPENSES, then plug in your sources of cash flow and go from there. You may be surprised you don’t need millions to have a good retirement.

[@tombkk1322]

What about the elephant in the room? Healthcare and Long Term Care is something most people don’t plan for.

[@donreinholz8121]

Stay on original medicare with a full supplement. LTC insurance is pricing itself out of average people's affordability much like homeowners insurance and property taxes in FL. Advantage plans are private insurance. Watch Marvin's videos. He does a great job. Being debt free and living below your means is the most important thing you can do.

[@GandGblast]

Retiring at 65 and glad that I am.

[@robskully3539]

another great video … I myself just applied for SS today and glad I waited until 70 because I will be soon getting a check each month just shy of the max SS you can even get :-) Also … I am still working and have no plans of retiring anytime soon because I love what I do and the pay and the benefits are so worth it. I made sure I enjoyed my live all along so not retiring is no big thing to me and I don’t see just sitting at home waiting until the end ;-)

This is a great video. One piece missing is to keep in mind that typically, in retirement, taxes are much less.

[@dianahooper1537]

I am so happy I started watching your pod cast. The last few years. I feel like I have over fed my brain on this topic. But boy did it help my understanding of the process.

[@tintin5038]

Love your videos Marvin. You were discussing the PIA and how retirees reduce their Social Security benefit amounts, by applying for benefits before “full retirement age”. Another factor that decreases the amount retirees actually get transferred into their checking accounts, from Social Security, is Medicare obligations. Medicare fees are withdrawn from Social Security payments before the money ever hits your checking account and this can easily be another few hundred dollars per month. This should also be considered when choosing to begin receiving Social Security payments prior to full retirement age. Granted, if you begin claiming Social Security benefits at 62, you aren’t subject to Medicare withdrawals, until you reach 65, but then-surprise! Hope this helps, I think I portrayed this correctly, let me know if I didn’t.

[@scottc3029]

You show that between 62 and 67 a social security increase of 6% a year and a 8% after 67 to age 70. After looking at my tables I find that the percentages are not as flat. My percentages are as follows: 63-4.6% 64-6.6% 65-8.3% 66-7.6% 67-7.1% 68-2.0% 69-7.8% 70-12.7% Notice the dip at age 68 of +2%, and the big jump at age 70 of +12.7%. Just something to consider.

[@seagypsy2762]

Good break down. So helpful.

[@bruceeigsti5274]

the most important thing is having NO DEBT..the amount of money you have saved is the second most important thing. the 3rd .is your health..all 3 go into determining when you should take ss

[@jhorton4329]

Actually, great health is the most important. Focusing on great health will allow an individual to make choices.If an individual is in poor health, with no debt they will not have a high quality of life.

[@williamrogers1219]

If married, you must consider survivor benefits when selecting the best strategy for applying for SS since the highest earner's benefits will be the single SS check for the survivor.

[@scottc3029]

@bruceeigsti5274 Owning your own home should count as well. Since renting is a kind of debt.

[@jonscrivner9087]

Great example of real financial needs in retirement. Thank you.

[@iczemi]

62, retired this year. Zero debt. Living within means. All investments are in safe vehicles. Living very frugal.

[@jimfarmer7811]

It's a mistake to have all your savings in "safe" investments.

[@philmarsh3859]

Congratulations. I hope you have some investment real estate in an appreciating area. Cash is not risk-free.

[@barbaraebner5889]

You work your whole life only to be frugal. Not me. Go, do and will let the government support me when the money runs out.

[@jimfarmer7811]

@@barbaraebner5889 my uncle died in poverty. He died in a Medicaid nursing home covered in his own filth. If you saw that you would never want to end that way.

[@philmarsh3859]

@@barbaraebner5889 What if the government won't support you? What is the backup plan? I don't want to go begging to my family and friends. We already have a family member who's near doing that - and the government isn't looking like it's going to save him. Also, why does one have to spend loads of money to be happy?

[@jwall62]

I believe salary doesn't matter, it's expenses. I made more than 150k for many years, but never spent more than 60.

[@Duke_of_Prunes]

Salary means nothing without context. My salary in the Bay area would barely pay for me to stay off the streets. In Mississippi, I live in a 4-bedroom house and live well.

[@timelston4260]

Exactly. I'm investing 50% of my net income, so in retirement I need only 35% of my net income, let alone my gross salary, but actually even less. Like you said, expenses determine what we need, not income.

[@Duke_of_Prunes]

@@timelston4260 Sounds like you're going to have one heck of a nest egg at retirement! 🥚 50% of net income is incredible!

[@tombkk1322]

Great video Marvin. A very nice breakdown.

[@jimmesser2025]

I would like to see the numbers if you’re home is paid for and just before retirement you’ve purchased new car,appliances etc. and retired completely debt free and lived a comfortable lifestyle without extravagant spending that’s my retirement plan and I’m sure I won’t need such large savings

[@bigd3104]

Same here. Debt free and don't owe a dime to anyone. Whenever I do retire (67 now) I can't see needing that large of a savings account either.

[@jwall62]

Yep, it;s all about expenses.

[@tombkk1322]

It’s all about healthcare and long term care later. Things we have no control over.

[@jwall62]

@@tombkk1322 healthcare insurance is relatively cheap, long term care is a big unknown. But, hopefully, you own your home too and that can take a lot of that burden away. Sell or reverse mortgage.

[@LinhHa-sd4zf]

Well, what about the critical part of cutting apx 25% by year 2034?

[@teams3345]

Retired at 57. SS at 62. No regrets. All is good and on financial plan with extra reserves. I still do not want to leave any when I pass. I know I am not in charge of that. God could take me any time.

[@Carol_Sews]

It used to be commonly stated that expenses decreased during retirement. I don’t think that’s true any more. If you live a frugal life without much discretionary spending during working years, expenses will not decrease, and may actually increase, when you retire.

[@ksbury9818]

I don’t have that kind of savings…I am lucky to have 30,000

[@ela111961]

Great video. I learned additional stuff than what I already know. I wonder if these examples of having this much total $$$ to play around. Does it include your home ex.valued at $650k with $170k mortgage balance?

[@pauljohnson1885]

I keep getting into arguments with my wife about the FRA year (January 2025) MET and continuing to work. Even retirement professionals and most lay people have no clue how it works. She thinks I'm being arrogant. I can't get her to sit long enough to view your great videos on the subject.

[@Calventius]

I have no nest egg, but Army pension, OPM pension small, and 4 rentals. Am 66.5 and am waiting until 70 for 4k of social security☺️Goal is to pay off residence lien and one rental by 70. Other rentals no lien. I calculate no nest egg but 130k income at 70 in pensions and rentals.

[@lisaveta8565]

My husband retired at 70 with max ss he could got. It is also because he worry about me and would like me to get his ss if something happen with him

[@tombkk1322]

Good man.

[@paulnovello1393]

Life is too short to chase after dollars. Factor in the the years of not receiving benefits and calculate how long the extra monthly benefit increase takes to recoup the years of not taking your money. I’m going to 65.

[@tombkk1322]

The problem with the income bucket the last few years is are Bonds are now losing money. I think Bonds are still a good hedge against a market downturn but not always making money.

[@randolphh8005]

Hold bonds to maturity! Get out of the bond funds.

[@BossTweed-mj7jp]

​@@randolphh8005 You mean sell at a loss? 😮 How about collecting the interest income instead?

[@randolphh8005]

@@BossTweed-mj7jp no, I mean don’t buy a fund. Buy actual bonds and hold to maturity. Some pay at the end and some pay along the way. That way you don’t have to sell a bond that is down in values. Generally by having a bond ladder.

[@williamrogers1219]

Fixed income includes Money Market Funds, which currently pay more than 5% and some online FDIC banks are paying 5% for high-yield savings accounts.

[@williamrogers1219]

@@randolphh8005 Bond funds by law are required to mark to market. Holding a separate bond subjects you to the same issue if you have to sell the bond when interest rates are rising. Holding the single bond to maturity subjects your interest payments to inflation, while the bond fund income will increase over time when interest rates are rising.

[@hoseamatavao1208]

👍👍👍 62 and I hope I got enough when I retire so if i want more retire later i don't know bout that 🤔🤔🤔🤔🤔🤔🤔🤔🤔 got my mind set at 62

[@tombkk1322]

Think long and hard about that. If it works on your spreadsheets great! 👍

[@cometcal2]

The more time you devote to working - the less time you devote to spending.

[@dknowles60]

Many people who retire only just live on Social securty alone some will save. the bigest problem is a lot of them will not stay home and save money

[@jimfarmer7811]

I retired at 62 but waited for my full retirement age to collect social security. Since SS is basically an inflation adjusted annuity I wanted to maximize my retirement income that was adjusted for inflation.

[@tombkk1322]

Smart move.

[@Carol_Sews]

This video did not make clear that you were talking about an individual and not a couple. Many people are automatically attuned to thinking of earnings and expenses as a couple.