How Much Money Do You Need To Retire?

[@Kattyol1]

I’ve been trying to figure out how much I need to retire comfortably, but it feels overwhelming. Between inflation, healthcare costs, and potential market downturns, it’s hard to know where to start. I don’t want to run out of money, but I also don’t want to over-save and miss enjoying life now.

[@Larry1-pl2wq]

That’s exactly the challenge most of us face. One mistake people make is underestimating future expenses, especially healthcare and lifestyle inflation. Another is assuming Social Security will cover everything-it won’t. Building a diverse portfolio is crucial, but I’d say avoiding emotional investing and procrastination is just as important.

[@FedrickWhite-jo2ed]

After a devastating hurricane destroyed my beachside business in 2017, I vowed to never again put all my eggs in one basket. I've since diversified my investments and hired a financial advisor to manage my excess funds. Now, as a semi-retired sailor, I spend only 9 hours a week maintaining my yacht, and I'm thrilled to be just 5% shy of my $3.4 million retirement goal, thanks to savvy investments made since rebuilding my finances

[@Franky-j6e]

Thanks for sharing your experience! I've been managing my portfolio myself, but it's not working out. Do you have any recommendations for a good investment advisor? I could really use some help

[@FedrickWhite-jo2ed]

My CFA, Joseph Nick Cahill, is a renowned figure in his field. I recommend researching his name online; you'll find all his credentials and everything you need to work with a reliable professional. With many years of experience, he is a valuable resource for anyone looking to navigate the financial market.

[@Sanchyfab]

Thank you so much for the suggestion! I really needed it. I looked him up on Google and explored his website; he has an impressive background in investments. I've sent him an email, and I hope to hear back from him soon

[@nicolasbenson009]

Most people don’t realise it, but the secret to retiring comfortably is finding a way to make returns while your money works for you. My dad, as I remember, started saving for retirement quite late, but I know he was making more than 10k returns from his investment monthly and it was completely passive.

[@BridgetMiller-]

This is really amazing though. I'm curious as to how he did it. Was it real estate? Or he was a market enthusiast?

[@tatianastarcic]

Haha. Investing enthusiast? Not really. Our family got introduced to a financial advisor about four years before my dad retired. That was what changed things. I've been using the same now and I think my retirement income would be on the right track.

[@berniceburgos-]

I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?

[@tatianastarcic]

Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

[@Michaelparker12]

Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.

[@MablePauls]

if the idea is to build an income stream to use as complement for retirement, or at any given point if needed, then building a dividend growth portfolio always buying adding to it could be a good and peaceful path. On the long run consistency and perseverance could guaranty the desired income stream goal with little worries

[@xlerb2286]

At 35 I had zero (I'd been working for a family business - great memories, not much money), by 40 I maybe had 1x. Now at 62 I'm at 13x our current household income in our investment accounts. It's sure a lot easier if you start sooner because that dollar you invest at 25 is going to earn a lot more for you than that dollar you invest at 45. But you can make up for lost time if you're willing to work at it.

[@johnnguyen4152]

That is what I keep telling to my wife. " Don't walk, just run". At age 40, we had nothing except a condo. Now at 59, our networth is $4M.

[@Panda-gu9wz]

My colleague and I had worked together as a team for 10 years. He and I had chatted for an hour on Friday about the retirement life down the road and then he passed away suddenly on the same day. He never enjoyed a penny of his retirement savings 😢😢

[@markbaldwin4436]

So sad

[@xlerb2286]

I'm sorry for his passing and your loss of a friend. We never know how much time we may have. That's why I've never been a fan of FIRE. To me it's putting too many eggs in the "tomorrow" basket. I'd rather balance my enjoyment of today and saving/investing for tomorrow.

[@kaiman5307]

My colleague's wife passed away at 61 due medical malpractice, never enjoy 1 penny of retirement pension and social security income

[@zackdreamcast]

Father passed at 64. Father in law passed at 63. Live your best life now and retire as soon as possible

[@danielkilgore4683]

I had a coworker die in his 40’s. Then several of my cousins died in their 50’s. I decided to travel and enjoy my life in my late thirties and still save for retirement. I’m now fully retired in my sixties. No regrets and plenty of money for retirement.

[@szvqorwnpstahskypfwmp9821]

American English is the best!! It's everywhere!! Best to understand.

[@hughwhitledge8032]

How much do I need to retire? It depends on the standard of living you want in retirement. Figure any retirement payment. Is it indexed to inflation? If not, you may need to work a little longer to pad it out so you don't run short of funds. Figure any Social Security you might expect to receive. Look at your Savings/401(k) and expect to withdraw at about 3.3% per year (I know that flies in the face of the so-called "4% Rule", but if you might live into your 90's, the 3.3% rule is the right way to go). Will those three things meet your needs? Really? Go back and check again. If so, then consider going ahead and pulling the trigger. If you're comfortable with these three metrics, then you can consider retirement. It won't be luxurious, but it should be comfortable.

[@tonya5468]

Lots of people will never have the amounts of money described here. My suggestion is to cultivate simplicity, gratitude, and personal interests that do not depend on material wealth. There is no need to be afraid if you are willing to do so. In fact, you wil be far happier and at peace than the vast majority of those basing their lives and well-being on money.

[@cueoneful]

Great Advice For Those Who Didn't Plan Well For Their Retirement Years.

[@hanwagu9967]

i'm not sure I gratitude puts a roof over my head and food on the table.

[@josephj7991]

Many studies show that often people under spend in Retirement and end up with More money at end than they began with? I'm single, no kids, do t need to Leave a Legacy? If u want to leave money to kids ect, buy Life Insurance! Your Retirement is for YOU Not them?

[@nobeliefisok9174]

Just passed 10x, only 52. I'm doing great! 😄 And I am definitely not working until I am 67. I have been a very diligent saver/investor since I was 26 years old. That's the difference. Its not how much you earn, but what percentage you save and how early.

[@glasshalffull2930]

AND what you buy with your investments. I am 64 and went 100% S&P500 when I was about 30.

[@nobeliefisok9174]

@@glasshalffull2930 I was about 90% SP500 for most of this time. And I lost badly on a couple healthcare stocks in the mid-2010's. I would have about 10% more total if I had stayed the course.

[@mandypdx]

@@glasshalffull2930i regret doing target retirement funds for 15+ years. I’m 47 with $500k saved and feel sad when i think what it could be 😢

[@hanwagu9967]

@@mandypdx there shouldn't be any regret with target retirement funds since they switch allocation closer to retirement. You should regret which target date retirement fund without knowing the composition. 47yo with $500k and you are said of what it could have been? It could have been $0.

[@mandypdx]

@@hanwagu9967 it wouldn’t be zero. Employer retirement funds dont allow stocks for a reason ;)

[@MrTeff999]

I personally know people who are millionaires many times over and who have enormous monthly income from investments, dividends, rents collected, pensions, etc. It baffles me why they even bother to collect Social Security given the tenuous situation with the Social Security trust fund and the challenging demographic changes that are happening.

[@brianhill4995]

I’m blue collar and did not make 100k year but was able to retire at 58 . It was tuff to pull the pin and retire. I’m two weeks in and very busy taking care of my home, cars and recreational vehicles. Sad I have friends who may never retire because of not saving or divorce etc. Azul you had convinced me to get off the fence to retire THANKS for your advice 👍🏻 Life moves pretty fast. You don't stop and look around once in a while, you could miss it.” Farris.

[@AzulWells]

Congrats on your retirement Brian! At 58, your solidly in the "youth of your senior years" ... I hope you enjoy each and every year. Have fun! 😎 Azul

[@KH-vw9yl]

Fantastic information, thank you for posting.

[@hanwagu9967]

glad you delved into some of the footnotes, which people tend to ignore especially when just reading titles or listening to YTers talking about excerpts from a report. Actually, Treasury came out last week and said 2035 now.

[@semendx]

Financial planning, akin to navigation, requires knowing your destination. James Clark's guidance provides clarity in uncertain markets....

[@seanhibbeler]

I recently sold half my tech stock holdings due to all-time highs, leaving me with $400k. Should I invest in ETFs now or wait for a market correction considering potential inflation?

[@bleedingonthehomestead6643]

Would be nice to see a video on how the housing cost in retirement affects the budget. I'm not talking about mortgage P, and I But taxes insurance and maintenance. Maintenance as percentage cost of house value can add up to an efty bill every year. Please do a video on this I would like to see your point of view Thanks

[@douglasthompson9482]

One thing Azul to also consider is socially. Do you have hobbies, etc. my wife is going to retire within five years. She has been a workaholic for years. I am concerned about her activity level. Me on the other hand has retired years ago and never looked back. I disliked my work and created many many things throughout my entire life.

[@AzulWells]

Great point Douglas. Completely agree. The old saying is true ... "you need to retire TO something (not just AWAY from something). Thanks for watching and taking the time to share your experiences with our community. 😎Azul

[@anriforth2569]

how much depends of place, standards, ability of self maintenance, property tax and insurance, $100 are VERY different from place to place

[@brianlooksaround6125]

Fidelity, as well as all the other brokerage companies, must create a sense of need in order for them to sell their service. I don’t buy it.

[@billygnosis6976]

How do you move past “intellectually” knowing you have enough to emotionally knowing and feeling you have enough. That is our battle, yes a great problem to have but still a problem.

[@hanwagu9967]

he's done a couple videos about preparing yourself 1-5yrs before as well as test driving your retirement. I think there are three major hangups: identity, fear you actally don't have enough, and fear you don't know what you wanna do and be in retirement (which connects to identity). You need to pick a date and take the jump. give yourself a glide path of 1-5 yrs to test out your retirment budget by living on it. Start some activities or not that you are interested in. You don't need to figure everything out, but you have come to terms with you no longer have to respond to what do you do other than you are retired. If it's a challenge, then go to therapy. Nothing wrong with therapy.

[@rickpatterson4495]

We have money to send to other countries, not sure why we would run out of money in S.S, if things are getting that bad maybe we need to stop giving our money why,, we need more imput on how the Gov, spend our money,

[@josephjustice4553]

I’m a bit confused though…how does “household income” equate to what you actually need to live? Expenses vary over the years. For example I won’t be paying daycare for two kids in 5 years so that’s more money saved. I won’t have a mortgage payment in roughly 20 years which is more money saved. I can also live on much less than what me and my wife bring in per month. So shouldn’t a more accurate picture take into account your actual living expenses which should actually fluctuate down over time? Why would I need as much money in retirement than I currently need raising a family?

[@miragexl007]

How about something new.. Perhaps venturing into where to retire and pros and cons of places.. Taxes, Health care, Cost of living in general, weather etc.

[@soundsnags2001]

Watch out y'all, content police showed up

[@marylandmike7655]

How much you need is subjective to your debts, lifestyle and health. For my wife and I, S.S. Will cover all our expenses @62 we’re taking the $$$ and checking out with 900k in savings

[@Martin-og9zg]

How about starting a retirement fund at 43, making $54k and still don't own a home? Any chance of retiring by 75? I'm thinking 85 if my health and stress haven't killed me. If I could I'd like to take part in mega backdoor roth or SEP IRA.

[@harryhankins1338]

If you invest at least 15% until you are 65 to 67 you will be good. It’s not too late for you to have a good retirement. Go for it

[@thatwheel]

Wow. I am blown away by this presentation. I was an insecure 59 year old on SS in January 2018 when I started buying Bitcoin/crypto. Everyone though I was irrational. Most still do. I put my income in every month and watched the value drop each month but for some reason really believed in Bitcoin and alt coins/blockchain even though I don't totally understand. Finally, the crypto market started turning around and I am astonished at the value of my crypto currency portfolio today. I engaged in active trading and managed to grow a nest egg of around 2.3B'tc to a decent 27B'tc....At the heart of this evolution is Linda Wilburn, whose deep understanding of both cryptocurrency and traditional trading has been instrumental. Her holistic approach to investment and commitment to staying abreast of market trends make her an invaluable ally in navigating this new era in cryptocurrency investment.

[@redeyesband]

Productivity is never accidental; it is always the result of careful planning, dedication, and consistency.

[@kay203]

My kids+mortgage which will be gone at retirement is more than 50% of my expenses... If I pay off mortgage+my kids are independent, I can live on 20% of my current income

[@jimhoge3252]

Ugh, I watched parts but really Azul, how many times can this info be used for videos? Let’s get some new material

[@RobertaOrchid1]

Thanks for this video! Very informative

[@bleedingonthehomestead6643]

Here is the title of your new video (how much the cost of the average house takes from the average s.s. distribution after the mortgage is paid off)

[@josephj7991]

Do those studies include Pensions +or Soc Sec? I have modest Pension, if i live 25 ye that is about $500k SS $500k so that is $1 Million not counted in thoss studies?

[@crimsonpearl4686]

I am almost 62, single, no kids, NO debt, with 13.25x times my salary saved for retirement.

[@VioletJessica-]

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

[@covertchannel]

The whole “you need X times your salary at this age” doesn’t track for people with higher incomes. 401ks have caps and you can only contribute up to 23-24k per year. High earners also don’t qualify for Roth IRAs as there is an income cap. Fidelity’s needs to put out guidance for those making more than $150k.

[@hanwagu9967]

Sure it works for higher incomes. Fidelity isn't saying x times salary in retirement accounts, it says x times salary in savings. Perhaps you might opt to actually read what Fidelity published?

[@covertchannel]

@@hanwagu9967 I have read it, but don’t agree with their philosophy. No need to be condescending. Considering 50% of people have zero money saved, I highly doubt people making $200,000+ will have 6 times their salary saved by the time they turn 50 is crazy. Most people don’t earn a lot of money out of college and spend 10-15 years to increase their earnings. Plus the more you earn, the more your expenses are as well. Fidelity’s math may work for those earning 30-50k, but need to be lowered for high income earners.

[@hughwhitledge8032]

I started taking Social Security at age 62 since my medical situation suggests I may probably won't live much beyond 67. My pension makes up about 25% of my income. Social Security about 35% and my 401K, the remaining 40%.

[@mikemiller3428]

Planning on retiring at 55 with just 401k of 900k+ and then ss at 62...no pension. Sounds like you are doing well.

[@TitleWaive1]

Question, when they say you should have 10 times your salary saved for retirement, do they mean just your retirement savings or do they include assets like your home. Basically, your balance sheet? Additionally, when planning expenses in retirement or income needed is it a percent of combined income or one spouses income? If you make combined $175K, we could probably live on 45% of that in retirement or even less?

[@hanwagu9967]

they mean investable assets, not net worth.

[@DP-sh3nk]

@@hanwagu9967 Which though does means if you have say 1M in your home but you plan on downsizing and getting a cheaper home than the difference could be used towards it

[@helomech1973]

Going by salary is dumb. Should be by spending. I literally live on about 25% of my income.

[@dnah02]

I live on half of my income, take home pay. Basically I am saving and investing the other half.

[@helomech1973]

@@dnah02 awesome.

[@SamBalducci]

I agree, for me it is 33% of my salary and that is mostly because I live in a high tax state. I know I can cut it down once I move away.

[@hughwhitledge8032]

I did, too. Until I got married. That's when everything changed.

[@joshhoodrat451]

If it flies, floats, or f..ks, rent it it’s cheaper. Don’t pay for sex pay so they leave when your done.

[@miketheyunggod2534]

You don’t need as much if you don’t have a financial advisor. You need much much more if you have a financial adviser. That crook needs your money.

[@rkw2917]

At 35 I had zero At 65 I had 3 million, enough for a comfortable retirement How ? I finished my education and found high paying employment Along the way I was careful but I never had to sacrifice vacations

[@nogames8982]

I watch these videos and just shake my head. I make $30,000 a year. I will never have $1 million in my retirement account. I’m 54 years old. Thankfully, I don’t have a lot of debt and should be debt-free by the time I retire. But these numbers are intimidating and depressing

[@mrscreamer379]

this doesn't make any sense. If you have 1x your salary at age 30 and get 10% returns, your money is going to double without you doing anything every 7 years. So if you had 1x your salary at age 30 you'd have 10x your salary by age 53 having never done a thing to add to it. In other words the 1x at 30 is mission complete and most people don't need to be anywhere near that. You can save for other things now. I don't think most people realise you can sprint and coast your way to retirement very easily if you start early. Fidelity's hot take is just financial illiteracy.

[@kannermw]

First of all you never make 10% net of inflation. The actual inflation adjusted market return is 7.5%. You thus forget the compound effects of inflation on income required to maintain lifestyle. At 2.5% inflation rate over 30 years that means your income needs to increase 2X. Also, who is content with 8ncome and standard of living at age 30?

[@mrscreamer379]

@@kannermw wut? I don't invest in the S&P500. Its full of junk. Mining stocks, agriculture, insurance companies. They act like a huge parachute on your returns. I invest in global tech stocks and my current ETF has averaged 21% over the last 17 years. My money doubles every 3.5 years. I use the nerfed numbers because the S&P500 is a meme stock at this point, but you have to be doing better than 10%. We are living in inflationary times!

[@DP-sh3nk]

@@mrscreamer379 WUT? I think the word you were looking for is...what. Anyway, please cite your sources .....21%/yr over 17 years.......which etf

[@mrscreamer379]

@@DP-sh3nk Fidelity Funds - Global Technology Fund W-Acc-GBP averages 20%+. And I meant wut. google it.

[@djcoolrule]

Instead of worrying about saving we need to learn about living. Too many people work themselves to death and never reap the enjoyment of the money they saved. There are millions of people living well below the 13x saved from their annual salaries. Make a plan, stop listening to anyone working with this current administration, use your credit cards smartly by paying the balance off before the pay date, and stop comparing yourself to those people on Instagram. Life is tough stop living in fear, live within your means, and enjoy each moment because you never know when your life will end. God bless.

[@patriciamogannam3616]

What are your thoughts on new retirement website

[@zackdreamcast]

I thought the idea that you need 25x your expenses to retire?

[@jeffstanger88]

This country is headed for a serious retirement crisis. The great 401k experiment is about to have its moment and it’s not going to be pretty. In the era of self-saving for retirement, half the country has saved… $0.

[@nobeliefisok9174]

Pensions at their highest participation rate maxed out at 30%, where defined contribution plans maxed out at 65% so far, still going up. If you focus on government workers, they have always been the primary recipients of pensions. As soon as you exclude those, participation in pensions drop considerably. Its simply a myth that most people working 1950-1980 had pensions. A second issue is that with non-government pensions, income replacement rates in retirement for 30+ year employees only averaged 28% of working income. Thats really not that far off from today's savings rates in 401k.

[@jeffstanger88]

@@nobeliefisok9174 Interesting, thanks!

[@untouchable360x]

A lot!

[@ronsmith7594]

I have$2,200,000 saved at age 62 and still don’t feel I have enough to retire on!!!

[@harryhankins1338]

It depends on what retirement looks like for you. With what you have majority of people would retire. You live your life

[@user-iw3mr2lv6f]

Azul great videos! How do you find the time? Love your videos would like to see less of them. Why less repetition 😀 Sometimes less is more. ❤🇺🇸🙏🏻😀

[@miragexl007]

It is quite repetitious now... I guess it's hard not to be.. Once you hear all the avenues are most of them.. And that there are different variables that change it somewhat.

[@JBPNashville]

Any video or article that speaks as a multiple of income, i am leaving. Current income has no value in the conversation.

[@nobeliefisok9174]

The "multiple of income" idea is purely a "replacement income" idea. If you instead have a target income you want to achieve, then use that. Most people have a hard time visualizing exponential growth, especially in the middle years. And nearly all people have a hard time visualizing increasing income with increasing savings rates while exponential growth occurs on expenses and the savings is growing exponentially. This is why the multiple of income method is valuable to many. It automatically takes into account all of these as an approximation.

[@jafo461]

The older you get the closer you are to death. So why does your chart go up every year? When I am 67 I am two years closer to being dead than when I am 65, so I don't need as much?? I have a 'friend' who is an airline captain and he now makes 400k a year. So my friend should have 4 million? Seriously? These numbers are bullshi7 and you should know better. You even said in past videos your 'industry' is responsible for scaring people, then in the same breath you tell them to go see a certified financial planner. Keep churning out the videos rehashing the one size fits all. Retirement is HIGHLY individual, based on you, and your expenses and income. No offense brother but you aren't really helping people, you're making videos based on what fidelity says.

[@mrcmdjd57]

...and he always says that he has been a financial advisor for 20 yrs but can't give financial advice. Worthless!

[@Kayla11113]

@@mrcmdjd57That’s what he has to legally say.

[@Kayla11113]

Those amounts are to replace your current income. If you are going to spend less, you need less saved.

[@derekcox6531]

This guy isn’t saying your”friend” needs 4 mil…fidelity is saying that. Try to keep your eye on the ball…it’s not that complicated.

[@hanwagu9967]

Yes, according to fidelity's x factor, if you are making $400k/yr then $4m by 67 is correct if the assumption is the airline pilot is going to want to maintain some semblance of his standard of living through retirement. 4% withdrawal on $4m only yields $160k/yr or 40% of the pilot's working salary of $400k/yr. You need a large nest egg to generate retirement income. I don't know why people seem to not understand this.

[@MidlifeCrisisManagement]

wow, the natives in the comments are getting restless. unless they're just bots...

[@Suite_dRV_Life]

Fidelity report is a TOTAL joke. You dont't need anywhere near that amount, especially if you downsize and live modestly in your retirement. Fidelity has a perverse incentive of wanting absolute maximum dollars for them to make money off of you. The government also want you to work until you die, so they don't have to pay you social security. Use your own brain and do your own personal financial needs analysis for retirement (downsized and modest), and you will be able to retire a lot earlier than you imagine and enjoy life, rather than being a slave to the corrupt system.

[@kman0074]

Solution get a new job earning less. Makes 10x a lot easier. lol.

[@JPMPS3XBOX360]

I know you have been an investor advisor for over 20 yrs- that’s getting old- what your results!!!

[@joem.7621]

This is a 3rd world country.

[@mrcmdjd57]

You do this same topic about 1x/week. Boring.

[@crimsonpearl4686]

I know, he is probably running out of new material!

[@philc.9280]

Yea it hard to have original content every week. That's what he does as a living. Bottom line: folks that don't save enough will be in big trouble down the road.

[@redsnapper9410]

@@crimsonpearl4686scroll

[@teachccd]

It shouldn’t be boring for the vast majority of people who don’t have enough retirement savings.