5 Years Away From Retirement: Turning $1M Into Security

[@jerrypollo65]

I had problem comprehending trading in general. I tried watching other KZbin trading channels, but they made the concepts more complicated. I was almost giving up until when i discovered content and explain everything in detail. The videos are easy to Follow ..............

[@silver45q]

I think what you need is a financial advisor assigned by a brokerage company that will trade for you and handle's your capital professionally and give you weekly returns of investment without any extra fees attached.imagine I invested $14,500 with a WOman you recommended some time ago and got profits of $200,080✊✊✊ ... .......

[@Alfred-pm9ox]

28k a week? Amazing! how did you get started?

[@Francisco-287]

This is huge! Your advisor must be grade A. Mind sharing more info, please? I'm in dire need of proper asset allocation.

[@phelps078q]

Trading on a demo account can definitely feel similar to the real market, but there are some differences. It's important to remember that trading involves risks and it's normal to face looses sometimes. One piece of advice is to start small and gradually increase your investments as you gain more experience and confidence. It might also be helpful to seek guidance from experienced traders or do some research on different trading strategies

[@silver45q]

I signed up for a 1-on-1 trading session. It's like copy trading, but with personalized guidance

[@garnold-l5p]

As an investment enthusiast, I often wonder how top-level investors are able to become millionaires through investing. I have a significant amount of capital to start with, but I'm unsure about the strategies and direction I should take to help me generate substantial profits like some people are this season.

[@tanyabischoff]

I’m not in a position to offer financial advice, but given the significant amount of capital you're working with, it would be wise to consult a financial advisor who can guide you in developing a strategy tailored to your goals and risk tolerance.

[@Mlanderos-t9e]

A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.

[@StephenRobello]

This is incredible. Could you recommend who you work with? I really could use some help at this moment.

[@Mlanderos-t9e]

I'm very cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like Laurel Ann Watkins I've worked with her for some years and highly recommend her. Check if she meets your criteria.

[@StephenRobello]

Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.

[@educatedwanderer9293]

This applies to a lot of people in the USA. Each of us has our own challenges and we don't know what changes will be coming so we have to be prepared to make a new plan on short notice.

[@TheNoobTker]

Glad you actually referenced the Trinity study for 6%. Wish the guy would've used some of his 550k home purchase into investments, a single guy doesnt need a 550k home and that wouldve been a major improvement in the numbers.

[@jjred233]

Yeah. Total agreement. He has kids who are likely full adults so I see why he wants another home. A mistaken belief that the family might stay with him at some point. Not a good idea.

[@avengemybreath3084]

In this universe a $550k home is very basic.

[@tancreddehauteville764]

@@avengemybreath3084 No it's not, unless you live in NY or SF.

[@avengemybreath3084]

@@tancreddehauteville764 or any other major US city, or their suburbs or exurbs. Even someplace like Columbus Ohio, a 550k home is modest today. Five years ago the point would be correct.

[@dstevens518]

You rule Erin, good discussion, good suggestions. For anyone following Erin that's still figuring how to get from now to comfy retirement, listen to Erin. If her well on her path success in her 30's isn't enough to convince you, take a look at all the posters that comment on her videos. So many in agreement, so many with life experience and $2-5 million+ in net worth. Save/invest/diversify, and optimize for minimal taxation during decumulation.

[@MattPrice2023]

When there's no blooper reel I just assume Erin nailed the entire thing in 1 take with no restarts :D Right? Right?

[@BadPhD777]

Exactly! 🙂

[@DPS-Runner_Cyclist]

No bloopers….I love the bloopers. Oh and the content too😊

[@andrewdiamond2697]

This one has MY NAME on it!!!! I turn 60 next month, will retire in 5-7 years, and am at over $1 million saved. I'm trying for a 2nd million by 2030-2032. My income is in his neighborhood and I'm currently putting away $54k per year away for retirement. Great video.

[@FIRE_DrNinjaTurtle]

Me too. I want to double my net worth in the next 5 years

[@hogroamer260]

Andrew Diamond: A million is enough. Time and good health are worth more than a second million. I retired st 56, paid off $80k of debt and converted $500k to Roth and my portfolio is right where it was when I retired. 64 and delaying social security to 70. If I had an extra million, I'd just be giving it away.

[@andrewdiamond2697]

@@hogroamer260 It would be with a substantial cut in lifestyle. My wife is 54 and she wants to retire at 60. There's not much sense in her working while I don't work. In 5-7 years I'll have my house paid off (market value today is $1.6 million) and $2 million in my 3 buckets for a total of $4 million. Then I'll sell my house and downsize away from the city, reducing my house to $1 million in 2030-2032 ($750k house today, roughly). Work is fine for me. I'm a contractor/consultant and have the flexibility to cut to and average of 30 hours or 20 hours or even 10 hours a week, should I choose to do so. And yeah, I'll be giving it away when I pass. I'm lining up my charities and family members in my final plans.

[@PADiscJockey]

@@hogroamer260not true. It’s personal. Your number, is unique to you, and mine to me…and so on.

[@ralphbuege9693]

You can't beat the distributions on the monthly income funds thanks for the info

[@METVWETV]

Another Excellent and detailed analysis! One suggestion, and it's not for everyone, Why not rent for 5 years or so? Find the nicest one bedroom or studio you can and plunk that cool Half a Million down and watch it take off! Since it is in essence "found money," ie: Money that was allocated for housing and wasn't going to be invested, If it were me, I'd roll the dice and invest it aggressively, anywhere from an 80/20 to even 100% Equity Portfolio! At that rate, assuming a 10% return, he'd turn that pile of cash into $1 Million in about 7 years.... When we fail to plan or have a financial downturn, regardless of the reason, it may be prudent to think outside of the box. Another alternative would be to purchase a home with an apartment and rent out the main portion of the home..... Thanks Erin!

[@ErinTalksMoney]

I think renting can be a great option. The reason I presented this in this way, because the article said that this gentleman was taking his portion of funds and that he wanted to buy a home outright. So I tried to stick with what people say their goals are. But you are 100% correct, that renting can open up a lot of doors. Or buying a space that you can rent out a portion of Can absolutely make a huge difference! And that could make it so he didn’t have to save as aggressively and give him an additional stream of income in retirement!! Great addition!

[@billb7636]

Well spoken, well reasoned, well presented video.

[@papster33]

Great video! Very well thought out and full of useful, and very realistic/honest information. Love the specifics - which is often left off of videos from other channels. Also appreciate the various options and things to think about that you discuss. Thank you!

[@MyName-ql7iw]

7:21 It's a airport in my hometown, Lviv. Unfortunately no one flying now to/from Lviv

[@fredswartley9778]

A 6 percent withdrawal rate is reasonable for a shorter retirement, especially if he works part time. Remember that the 4 percent rule is based on a worst case scenario.

[@METVWETV]

And 30 years

[@mplslawnguy3389]

I'll take a lower withdrawal rate over being destitute and elderly any day. For example, the information that Dave Ramsey spews about retirement is both irresponsible and dangerous, because there are people that follow that guy like every word out of his mouth is gold.

[@METVWETV]

​@mplslawnguy3389 I wonder though? While Ramsey is the go to Guru to get out and stay out of debt and his wealth building advice is relatively sound, I'd be suprised to see someone take an 8% dispersment in the years the Market pulls back 18%! It's easy to say it. A thousand times more difficult to actually do it!

[@gorgthesalty]

It really is a variable rate, because anyone with half a brain will adjust their withdrawal to match returns in economy. If economy is down, time to tighten the belt and maybe even pause and life frugally. If economy is up, perhaps even an 8 percent rate may be okay. I mean, we've had 3+ years with sp500 returning over 20%. I was getting an average 33% return over 3 years during that time and was exceeding my salary in portfolio returns. More than doubled my money. If I was withdrawing, maybe I'd be pulling 10+%. And then we had 2-3 years of down economy and my money did not make much at all. During such time, if I was withdrawing, I may settle with just SS and a little bit more (1-2%), curbing travel, tending to a garden or just finding ways to have fun cheaper (maybe a longer visit to a set of countries with less pricy life -- eastern Europe?). Bottom line, the average may be 4 or 6, but in reality it will vary and one SHOULD have a plan for years with very little. Like a plan to trip to cheaper places and/or downsize in US.

[@WoJackHorseman24]

If I were him, I’d move to Spain, Gibraltar, or another country with a much lower cost of living, like Italy, Greece, or Montenegro. Gibraltar would be the easiest in terms of residency. Since he works as a freelancer, work doesn’t affect his location. By reducing his cost of living significantly, he could accelerate his savings. Instead of buying a new home, he could sell his belongings and rent a cheap flat. By renting, he could focus more on traveling and activities, and less on staying at home. With that approach, he could start with around half a million and focus on generating yield from it

[@bdtn342]

Boom

[@gorgthesalty]

Indeed. And he could "bounce" between non-EU countries (EU stay is limited to 90 days in a 180 days period, necessitating going elsewhere for the other 90 days). Europe is cheap to travel through, and eastern and some of southern Europe (EU and non-EU) is cheap to live in. Also, if more daring, some southeast Asian countries are cheap and pretty good to live in (lots of expats, English-spoken areas).

[@ld5714]

Hi Erin! Great analysis and discussion of Mr. Gills' situation. When properly motivated that would be very doable IMO. Have a great weekend Erin and I'll see you on the next one. Larry, Central Valley, Ca.

[@michaelb1369]

I like your stock retired guy. He looks like a distinguished gentleman.

[@brucestiles6477]

A comfortable retirement? "Comfortable" is a relative term. Considering the much more expensive home he left and the fact that he and his former wife were spending his entire $200,000 income plus his $28,000/year pension (unless that just started) (and maybe his wife's income), I'd be hard-pressed to think that he would find any on-going standard of living that he will be able to achieve in the net five years to be "comfortable." He'll need a paradigm shift on what is "comfortable."

[@METVWETV]

People are adaptable. Many of us came from nothing and the "shock" wouldn't be all that severe

[@gorgthesalty]

I make as much as this dude, but the best places I have most fun in are actually some of the cheapest. I love IHOP, for example, as well as many of the noodle/ramen small eateries, all much cheaper than average in my town. Same goes for travel. I have most fun in places considered cheap for US traveler. Yet beautiful. I think it is quite possible to downsize these expenditures and maintain most, if not all, fun in life. Just have to discover fun in places without snobbishly looking at their cost as a measure of their quality (not calling the guy snobbish, but just saying).

[@RanjeetKumar-oi9rr]

Hello Erin, Even We follow your program. We are indian and you are simplifying a common problem for whole world.

[@JuanMartinez-kn2qs]

Like always great information. Thank you…

[@charletfoster8917]

Thanks for sharing this man’s experience, ppl must invest for retirement, being secure in retirement is the Goal🙏🏿😊💯💎

[@DK-pr9ny]

Sad story. 65 loses half in divorce and has to keep working..

[@karennz1099]

Hi Erin. I appreciate the American version to try apply to most of your listeners. Two observations: at age 65 difficult to catch up as it appears he had difficulty putting money aside, which at a $200,000 salary is hard to believe. I’m thinking he will have a hard time adjusting to meet that change. And secondly, due to his age, health concerns could cut his working the full five years difficult. I guess for me, which is not Mr Gill situation, it goes back to how much traditionally is needed to have to retire. I know that’s subjective and I’m sure you’ve done videos on this. I guess though it would be helpful based on different levels of standard of living, bare minimum, medium income level and higher standard of living. I recently stopped working and know I’m probably too young, 57, to most to retire. But I’ve recently moved to a new state, my husband, 62, has a pension and is currently working and have health insurance from his previous job. I’ve saved close to $500,000 in traditional ira. Our $600,00 home almost paid off, small HE loan remaining. I’m still trying to figure out what our yearly expenses will be with so many changes but thinking around $60,000-70,000 a year. I’m not sure we’re we’d fit into low-med-high and if our savings, hopefully growing over next 5 years and So Sec for both probably at full retirement age. I’m hoping that we might do a little traveling in the next five years, hence not looking to find a new career at this point. Also, wanted to say Erin, loved your recent videos on Social Security. Really appreciate your insight.

[@bdtn342]

Mr Gill needs to move in with one of his kids for 5 years and bank All his cash. Retire in 5 years to Thailand and it's a wrap.

[@jimclark5037]

Weird case! Most people in the U.S. would say if they were going to retire at 70 they'd be maximizing their social security and if they had a guaranteed lifetime $28k pension on top of that AND a mortgage free home they'd be all set! This is the "Lifestyles of the Rich and Famous" version of retirement to need a lot more than that!

[@thomaschew2191]

A good question for Mr. Gill and those in his situation to ponder is what is more important: being retired and having a full schedule of leisure activities and entertainment or having a solid financial base that would last decades but with less free time? I think we all want both worlds, but some want one of the options more than the other.

[@victorbaird8220]

I love every video 😊

[@willpbmd]

Great video, thanks Erin.

[@ErinTalksMoney]

Thanks for watching!

[@topofmindwithterri]

Great content. This was "Americanized" minus healthcare. Living in a country with nationally run healthcare means he does not have to consider costs for insurance coverage. That's a big omission here and a big variable for Americans retiring in a similar situation.

[@SpookyEng1]

Well, it makes planning easier when the NHS decides not to treat your illness because you are too old. You won’t need that money if you die 5 years earlier!

[@mikesurel5040]

As an American that works with a lot of people from European countries, we collectively romanticize existing socialized health care systems. After talking with the people I know personally it feels like we are all screwed, just in different ways.

[@topofmindwithterri]

@@mikesurel5040 Truth! I know it is not ideal in other countries. I was referring strictly to monetary costs for insurance.

[@topofmindwithterri]

@@SpookyEng1 100% valid point!

[@richardcohen9103]

We have Medicare although not free seems good. I hope so I just started on Medicare

[@stevebishop3796]

I wonder how much of his income was allocated to making house payments (until the house was paid off) and if his spouse was fully dependent on his income (hence he would have had higher annual consumption during marriage). He should do a bottoms-up needs v/s wants budget to see if he can retire.

[@rbkahuna8192]

I need a case study lol. I’ve went from worse than broke over the last six years. I paid off a mountain of debt and managed to put back about 75k into a retirement fund. Still looking at around 32k of debt and about 10-12 years left on the job. It’s not all bleak. I own my home and some agricultural property. I make about 120k a year b4 taxes. Is it hopeless? Any help is definitely appreciated 😊

[@ErinTalksMoney]

I’ll do a case study on you. Send any relevant information in an email to me, [e-mail] 😊 put case study in the subject line

[@rbkahuna8192]

@ oh that would be great! Thank you so much!

[@sergiosantana4658]

Mr Gil can use a reverse mortgage to purchase his 550k home ,he will need to come in with approx 330k this will get him in the 550k home with no mortgage payment. This will leave hime with 220k from the sale of the home that he van invest for any future income needs.

[@Joshkt87]

Erin, that £228k income becomes £132k here in the UK ☹️ He can put £60k a year into a SIPP (similar to your 401K). Also £20k can go onto an ISA post tax and that can grow tax free. Think the UK wins on tax advantages accounts.

[@ErinTalksMoney]

Thank you for sharing! I definitely am not familiar with how personal finances work in the UK. And thank you for sharing about the SIPP account 😊🙏

[@christiansailor2880]

What made Mr. Gill so great?

[@codycabral8267]

Love this video Erin❤

[@ErinTalksMoney]

So glad! 😊

[@codycabral8267]

Hi Erin I have 1 question please

[@codycabral8267]

If I’m already maxing out my 401k should I also start an Ira?

[@codycabral8267]

That’s my question

[@codycabral8267]

Do u suggest to put your money in a cd or a high held savings which I already have

[@tscoff]

One very important factor when we’re investing is that reduces how much we’re living on. For example, if someone is earning $100,000/year and is investing $20,000/year of that in their IRA and/or 401k that person only needs $80,000/year when they retire, not $100,000/year.

[@bdtn342]

Remove the 20k for taxes, you only need 60-65k

[@damienbates]

I wonder if he has to pay alimony. If there’s no clean cut he may be forced to work even longer.

[@OmaticFever]

Thank you, Erin, I really appreciate all your videos. In this video, you mentioned around the 6 minute mark a possibility of using a Roth IRA as an investment vehicle, but wouldn't he be limited to the amount he could put into a Roth? Regular contribution of $7500 plus a catchup contribution of $1000 per year? I guess I was wondering if there is a method for adding more money to a Roth than the traditional contributions. Cheers.

[@heidikamrath1951]

Yes, there is a method for contributing more. Are you self-employed? I can contribute 31,000 (23,500 + 7,500 “Super catch-up”) to my Roth Solo 401K this year. As far as tax-advantaged savings go, I can also contribute 5300 (4300 + 1000 catch-up) to my HSA.

[@OmaticFever]

@@heidikamrath1951 Thank you for the response. I am not self-employed. I'm still a W-2 worker.

[@OmaticFever]

@@heidikamrath1951 - Thanks heidikamrath! I am not self-employed, rather I'm still a W-2 wage earner. I max out my HSA, 401k, and Roth IRA contributions every year. I was hoping there is a "better" method for moving 401k money into a Roth IRA without having to pay extra taxes - that I didn't know about. Currently I'm thinking about performing Roth conversions but am in a relatively high tax bracket without much room to perform the conversions without getting into the 35% tax bracket. (I know, first world problems...).

[@bradfigiel2203]

Why not invest the 550k and invest that in the market shooting for 10% return and take mortgage at 5%. The mortgage will outlive him so let the estate take care of remainder.

[@martinyeager7948]

We focus on saving early for retirement. But, the last dollar saved is the last dollar used. In this case the final $1,000 saved at 5% for 20 years is going to be worth $2,600 in twenty years.

[@SiemcoMS]

Love your vids.

[@ErinTalksMoney]

Thank you!

[@larryly3613]

Wait, how does one pay 25% tax rate when making 200K plus in USA? I make way less. I estimate at around 35% tax rate or 40% when you factor in state taxes. Erin, i think you forgot he will be filling as single after the divorce, so he will be paying drastically more in taxes.

[@wanbrother9242]

from 103k to 197k its 24%; below 103k is 22%. So she's 100% correct he will pay about 25% tax rate at $200k income

[@thehomeless_trucker]

Federal with no state taxes has me under 11% effective tax rate with 90k/yr and single as a w-2 employee

[@larryly3613]

@wanbrother9242 i guess there is more "taxes" because i take home way less. I guess there is also Medicare and disability that often are not counted as taxes. Plus, social security. Maybe that is how I get to 35% or more. Regardless, I think that should be calculated because it is effectively a tax you have to pay if you are working. Maybe once you stop working, then you don't have to pay those.

[@thehomeless_trucker]

@larryly3613 You also have to take into account if you receive a tax refund every year. That just means you overpaid.

[@stocksxbondage]

I think you read your chart wrong or used the wrong chart in video. Whether your allocation is 100% stocks, 75/25, or 50/50 stock/bond, a 6% withdrawal rate has an 80% success rate over 20yrs, not 95% as stated in the video. Still relatively high, but significantly different.

[@hogroamer260]

Erin, you always get a thumbs up from me for your videos, but two things. He's going to lose $30k - $40k to closing costs on selling and buying a house so, he's getting a $485k house, not a $525k house. Second, please abandon the conservative investing approach for people with 20 - 30 years or more of retirement. People, especially those with meagar portfolios, need to be more aggressive. 1 to 2 years of expenses in a high interest bearing account and the rest in an index fund. They are going to need the bigger return, and the one to two years of savings will carry them through any down turn and most bear markets.

[@kirklandphil]

Great information, Erin. There is no way I will touch my Traditional IRA or my Roth money until I reach 73, so looking at 6% sounds kind of nice.

[@jerrym3261]

Please look into RMD calculator before you don't touch your traditional IRA until age 73. That money has a way of growing and RMDs can have you in a higher tax bracket, pretty certain you'll have to pay tax on 85% of your SS and paying IRMAA. I certainly wish I had started Roth conversions earlier.

[@Brian-nb6fb]

@@jerrym3261 People miss the growth of the traditional IRA over time and they will get hammered at RMD. At age 60 I am watching everything I can about IRA conversions and doing it. Potentially my traditional IRA would be triple its value when I hit RMDs and I'll be paying IRMAA and SS taxes and ??? Rather move it now for a soft landing later

[@southbound1969]

Suzy Orman says he should work until he's 97 years old.

[@METVWETV]

Who cares

[@buyerclub2]

Erin, my sister married someone who is British, so I know a little about English Real Estate. Basically most of their laws on purchasing and selling Real Estate are differernt than ours in US. One reason, is that the taxes are different. For example, I was amazed how much capital gains taxes they would have to pay on property they inherited. And they did not have the primary home capital gain exclusion. Another is that land tends to be owned by either the Crown, or "Lords", so most are mainly leasing the land that their property resiides on. This impacts how you can evaluate Real Estate in retirement. I will let true Brithish people elaborate more, or tell me I got it all wrong. 😁

[@parryzazu]

The only issue I have is the social security. You mentioned 13K for the year. If he is making 200k and starting at 70, his S/S will be in the 38 to 40K rang.

[@DG-yp6bl]

Might be better to give examples for people with reasonable incomes...50-60K....would relate to many more people. I easily did it making about 80 over my work life. Retired at 54 with a family.

[@melli-yelli-i8i]

This only works if he’s physically and mentally able to work 5 more years, one slip and fall or illness can change everything at 65+. It’s not always a matter of willingness to work. I think he should invest a good portion up front now, too risky to wait.

[@joethecomputerguy1]

Gotta listen to Erin. We both think alike! I am retired now over 7 years. Love it. The next 6 weeks I am on a cruise :) And it only cost me $2,331 total for everything including parking at the port. Love searching out cruise deals!

[@PatrickFugate-qk7ev]

That’s very reasonable on the cruise… what cruise line?

[@joethecomputerguy1]

@@PatrickFugate-qk7ev NCL and MSC

[@kevinkanter2537]

a 6-week cruise - wow, that is more than "reasonable" ---- Like Patrick - what is the line and how such a deal?

[@codycabral8267]

Hi Erin can I ask one more question

[@jerrym3261]

In some ways Mr Gill and I share similarities but, spending is vastly different. I would suspect you can't teach an old dog new tricks and he will continue to spend every bit he can. My suggestion, he learn happiness, in particular Destination Addiction.

[@Probablyshouldnthave]

you say he could use a roth ira but he has an income of 200k this is over the income limit allowable for participation in a roth 401k

[@TheMurrblake]

Mega back door roth

[@MemoryKasu]

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 determines a lot of things, my parents both spent same number of years in the medical profession, my mom was investing through a financial advisor while my dad through the 401k. On retirement, my mom retired with about $5million, while my dad retired with roughly $3.8million.

[@DeclanJoseph-c4j]

You are right. 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 profits over the years, but at least I’m earning more. I’m making money even before retiring and my retirement funds has grown way more than it would have been with the 401k.

[@Saraphina-i6z]

You are completely right, Advisors have information and paths that are not disclosed to the public.. I profited £560k in 2022 under the tutelage of my Fiduciary-counselor. Am I selling? Absolutely not.. I am going to sit back and observe how this all plays out.

[@patricia_657d]

I've been thinking about going that route. I have a lot of stocks that I have maintained, but they are beginning to lose value, so I'm not sure if I should hold onto them or sell them. I feel hiring your investment coach would make it easier to restructure my portfolio.

[@Saraphina-i6z]

Research and choose someone with a plan for consistent portfolio growth; “Jessica Dawn Walters”has done well with my investments, and I believe she has the qualifications and expertise to help you meet your goals.

[@Tony-t6h5m]

I've proactively looked into “Jessica Dawn Walters”, checked her credentials, and am impressed with her expertise. I've contacted her to discuss my detailed financial market goals.

[@davidburrus9813]

Enjoy your channel, Erin! Fascinating that he is "...buying a modest home and buying it outright..." for $550K?!? For a single person? Holy cow. If that's modest then I'm Amish. I know it's 2025 but over half a million for a single family home for just one person? I'd be thinking apartment (lower maintenance, utilities, insurance) especially at age 70, and especially with his desire to travel, rather travel than maintain a home. With $550K liquid at a 5% annual withdrawal rate ($27,500), that would cover a $2,291/month apartment, likely nicer than a $550K home in the same market.

[@JerryTobinUSMC]

I would be curious to see if his ex had income and if so how much. Maybe she was spending a great deal of his money? His 80k or so income may be look a lot better than expected.

[@brandonblahnik6002]

This is a very good plan to retire comfortably, given the described scenario. Unfortunately, I doubt Mr. Gill would actually follow the plan. Based on the fact that he lived in a very expensive house, spent virtually all of his $200,000 income every year, had only $30,000 saved at 65, and wants to pursue a bunch of potentially expensive hobbies and activities in retirement, I strongly doubt he will do the things necessary to achieve a comfortable retirement. Instead, he will probably work as long as he possibly can, spending his entire paycheck every month, and only retire when it is impossible for him to keep working (probably due to health issues). He will then live the rest of his days (uncomfortably) living on his modest pension and benefits or being a burden on his children.

[@Kornheiser10]

He's in GB, so he will not have the future health-care costs that so many in the US have to worry about.

[@chrisforker7487]

Very aggressive behavior change needed for this gentleman! Very doable, but most Americans have little willpower to make such drastic changes. Great educational video! Thanks for all the great content!

[@METVWETV]

Completely Untrue! Most Divorced men adapt and rebuild!

[@jerrym3261]

@@METVWETV He has 30k in savings and wants to use all he gets from the sale of the 1.1M home to buy his new home. I think he's an outlier in the Most Divorced men adapt and rebuild group.

[@brianfp5712]

Healthcare???

[@DavidDLee]

8:32 best case for 6% withdrawal rate for 20 years, which is already 5 years less than the default (95 - 65 = 30), is 80%, not 95%. Also, this person is not going to be able to save 90K/year and live off 55K when he got used to spending 145K.

[@markhellie6837]

Big difference between dollars and pounds.

[@richardhartland3637]

the advice being given is definitely relevant for someone in the US. However, it is stated that the subject is in the UK since you mention the finds are in pounds several times. So..... the IRA/401K Roth , T-Bills etc... are simply not available. and the Tax situation also completely different. So. good advice for a completely different case study. totally useless for the subject.

[@nattydred2593]

First thing he should do, if he hasn't already, is go to the doctor, and dentist, get a complete health check and make a plan for being able to be independently healthy at 70. Then he should consult a trainer and dietician, in order to maintain, if not improve, his health and fitness.

[@tothra]

I must have missed something. I'm trying to wrap my head around the idea of having a take-home pay of about $150,000 a year and no retirement savings. In fact, little saved at all. Just what did he spend his money on??? Lamborghinis? Bi-yearly super expensive vacations? Yachts? Paid out of pocket for all his kids to attend an Ivy League school? Yeah. I had to have missed something.

[@gregcautrell1259]

There are a lot of people who never give a thought to saving for retirement until it is too late. Spending $150,000 a year is very easy. For them, having that money and not spending it is a challenge. It takes a certain amount of discipline, and they lack that discipline. They feel like they have to have every new shiny thing that they see.

[@BadPhD777]

Before I retired, I had a co-worker who had an annual income of $157k and lived paycheck to paycheck. He lived in a modest house, but did many other financially stupid things. Another co-worker and I tried our best to get him to change his ways and eventually gave up.

[@alexanderpierre8539]

You missed the part about him having a wife

[@thorsrensen3162]

sounds incredible if he has used 200.000 $ per year inall his life and now expect to be able to save a million in 5 years.

[@chrisforker7487]

He’s not going to spend all that in a year or two, he should put most in stock, 70-80%.

[@whatsinanamethatthecaptive577]

Since his ex-wife was spending all his prior income, he should have no problem cutting his expenses to 50%.

[@thomasreedy4751]

Where did that information come from? When you are married you have lower combined expenses, income and domestic responsibilities. If your assumption is correct, and his wife did not contribute financially to the house and instead just managed the household - then he is either going to have to fork over a lot of money to pay for someone to do those tasks … or learn how to maintain a 500k property on his own while being a high earner - living a lower middle class lifestyle. I think a lot of people aren’t aware of how much they depend on their mates and the true cost of being single.

[@user-no2ei6dp2q]

In 5 years bitcoin will conservatively be 500k if not this year. He could buy over 5 at the price today. By the time people wake up, it will be too late unfortunately!

[@JohnFleming-b6g]

Saving close to 50% of his income. That is essentially what people in the FIRE movement do.

[@sergiosantana4658]

And now for the rest of the story.The reason he has no money is because this isn't his first divorce.

[@Larry-d1c]

He is talking pounds, you talk dollars. I think pounds are something like 1.2 dollars so he's 20% better off.

[@jerrym3261]

A pound is $1.24 so 24% better off.

[@thehowards6]

This guy sounds like he's in real trouble.

[@tancreddehauteville764]

This smug guy is pretty well off, not sure he actually needs much advice. $200k a year is big money in the UK (a country with a per capita income of Mississippi).

[@drleesharon]

L.M.A.O! Let's be real here. 98% of ALL upper low and lower middle class retire with savings under $50k.

[@will1122]

willing to work 5 more years??? He'd be lucky to only have to work 5 more years probably more like 10-15 if he wants to travel and what not rather than a farther modest retirement.

[@WealthyChronicle]

I feel for Mr. Gil, but honestly, spending almost every dollar when earning $200k a year? 😱 You'd think he would have learned sooner.

[@randylester8274]

200K of income with only 50K in taxes? HA!!!!!

[@benjaminchaston7202]

My uneducated thought with him having very little in retirement I'd want about 70-80% in stocks, 10-20% bonds, the rest money market or cd's.

[@TheMurrblake]

Fuzzy math

[@Rogue_Money]

2 words…Bit, coin. Full stop.

[@TheFirstRealChewy]

Does he not pay into social security and medicare? If so that's another 8% or so.