4 Mistakes Poor Retirees Make Which Rich Retirees AVOID

[@james1787]

We chose to pay our house off early (we eliminated all other debt first, lived below our means, didn't touch retirement to pay it off). Retirement was kept on track throughout the process. There is something to be said for peace of mind, and opens our options to either invest more or to enjoy life a little fuller. I have been working with a CFP for several years. Still another decade or so before I'm at the age I'd like to retire at.

[@earlyretirementadvisor]

You are killing it!

[@dstevens518]

Good insight, especially the fear mindset stuff, sure that's very common.

[@earlyretirementadvisor]

It definitely is!

[@rickdunn3883]

Good video. Some thoughts: 1. A large distribution can also apply to Medicare Part D premiums. 2. Most insurance products are High Commission and inefficient. Buyer beware. 3. Yes, Social Security can be thought of as a "supercharged annuity" without a commission. 4. Investment costs are much more important than most people realize. "Money Doesn't Grow on Fees". 5. Fear Mindset: yes, I note that many financial advisors use fear to sell services and products. Not good. Folks: learn this stuff and buyer beware.

[@HighCountryRambler]

Very true statements, and why I do my own investment planning.

[@earlyretirementadvisor]

I hate fear based selling. The classic advisor tactic is to dig a hole and push you into it by scaring you with everything that could possibly go wrong. Then they let down the rope to pull you out by saying, “don’t fret little one, I’ll take care of you”…Gross. Both my ongoing traditional AUM clients and my flat fee DIY clients hire me for a combination of expertise and delegation, not because they are too stupid to figure things out.

[@HighCountryRambler]

I chose to pay off my rental properties years ago, and keep my 2.6% home mortgage. Been paying down the mortgage but keep asking why not use their money at 2.6%. Especially when the IRA is doing 16% currently.

[@earlyretirementadvisor]

Yah I totally agree! Worst case scenario to investing more rather then paying down the mortgage is if you change your mind and want to pay off the mortgage sooner, you’ll have a pile of money from investing to use. Probably better to open a brokerage account to do the extra investing instead of into your existing IRA to have more flexibility when you take the money out someday.

[@HighCountryRambler]

@@earlyretirementadvisor Not getting why I'd want to open a brokerage account when I'm managing my own IRA successfully? I tried two brokerage accounts previously and made more sense to manage a IRA myself after a decade of unanswered questions.

[@earlyretirementadvisor]

You can own the same investments in an IRA as you can in an Individual brokerage account. It’s not so much about the investments but more about the flexibility for taking money out. Maybe let’s have a quick chat to make sure I understand your question correctly: calendly.com/earlyretirementadvice/free-retirement-assessment

[@stevehutchinson8935]

What’s the cost of a CFP?

[@earlyretirementadvisor]

earlyretirementadvice.com/services/

[@earlyretirementadvisor]

To find a CFP who does not accept commissions go to NAPFA.org. Also here’s a link to my website

[@pdxmusl1510]

I mean i do agree you need to evaluate the situation. But... Unless what you owe on your house is still an insane amount or you already earn a ton of money. This is NOT a problem. There's litterly 500k gaps in some of these bracket. I mean yes. You do need to consider the financial ramifications of this. All angles. But... 15 years on 100k @ 6% paying it off early saves you 50k. If all your elevated taxes is less than this....paying it off early could be advantageous. Also your payment is around $900. Which means as long as you don't withdraw more than maybe 270k. You will likely come out ahead.

[@xelnjare3945]

I'll work with a flat-fee FP - no way I'm paying 40k plus per year (today) for someone to use software that costs them $150-200 a month to run projections.

[@earlyretirementadvisor]

Flat-fee planning is a great! I do flat-fee planning for DIY investors. And I totally agree with you about paying some clown to run projections with a piece of Software. Real planning goes way beyond that.