Can I Retire Before 60 With $2.2 Million? | Early Retirement Case Study

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$2 Million Might seem an exciting number for retirement, but that's not true in every case!
It all depends on what you want to spend and how much you want to allocate, pay, and invest. So, in today's video, we will review the case study of a couple who wished to know if they could retire with $2.2 Million before turning 60.
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Time Stamp
00:00 Intro
00:18 Prologue
01:00 Diagnosing Early Retirement Requirements.
02:18 What every financial advisor should ask.
04:16 Current Income they are bringing in.
04:40 Retirement Analysis where they can retire immediately.
07:09 Retirement Analysis where they will work one more year.
11:55 Number one mistake people make while they plan early retirement.
13:15 How to choose an optimal withdrawal rate.
14:40 Conclusion
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Ari Taublieb, CFP®, MBA, is the Vice President of Root Financial Partners (Fiduciary) and host of the Early Retirement Podcast.
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⚠️ "DISCLAIMER:⚠️
All content is not to be received as financial advice, and each individual should consult with their dedicated financial planner, tax preparer, estate attorney, etc., before making any financial decisions.
This video contains content I created and got permission from its creators to use. This Channel DOES NOT Promote or encourage Any illegal activities; all contents provided by This Channel are meant for EDUCATIONAL AND ENTERTAINMENT purposes only.

[@jameschaves5723]

Arguably the best early retirement video EVER and I’ve been watching many!!! Great work Ari touching on so many aspects and variables. That software is next level stuff. I love how you can even add something like “a big purchase” into the equation. I love what you and ROOT provide. My only reservation is being someone with considerable assets I’m hesitant to what I assume is AUM costs. It’s a difficult pill to swallow when you’re paying a firm 1-2%.

[@earlyretirementari]

Glad you enjoyed it!

[@markbernhardt6281]

Great one, lots of people in this situation!

[@earlyretirementari]

Glad it was helpful!

[@markb8515]

Thanks Ari for the great case study! It's always good to see the thought process you go through in your planning process....it helps a lot.

[@earlyretirementari]

You are so welcome!

[@voodoodrug]

I just got sick of my industry at 48 and retired. Did some casual on call that maxed my ss out. Then real estate hack that brought all my bill even food to zero. Dummy down approach with a million in the bank. Travel as far as my MC will take me. Avoid complex big pain in the ass toys except a couple awesome bikes😎. Basic psychology and finances. Lost my crappy insurance so went on my wife’s crappy plan. Stay healthy and getting the best gap plan in a few years. I see people retire with millions that are miserable. Less is more

[@earlyretirementari]

Powerful message! Thanks for sharing

[@CalmerThanYouAre1]

Great case study!

[@earlyretirementari]

Glad it was helpful!

[@HildaCV]

Excellent training. Thank you!

[@earlyretirementari]

Glad you enjoyed it!

[@janethunt4037]

Our situation is very, very similar to this except we're a little bit older. I've spent hours playing with our numbers with a retirement software. I've also inserted all of the one time expenses I can think of for the next 15 years. I'm trying to figure out how to spend more $$ so we don't leave a lot at the end. Don't worry, I'm coming up with great ideas.

[@7SideWays]

It would be great to know what we want to 'do' in retirement but sometimes it takes step back and relax time for purpose and hobbies to evolve. Got the nest egg? Do it and figure 'it' out as you go👍

[@charlielipthratt7291]

Thanks, Ari! I really appreciate you showing the variety of market return options without including her pension and their social security funds during your scenario.

[@earlyretirementari]

Glad it was helpful!

[@MichaelToub]

Great Video!

[@earlyretirementari]

Thanks!

[@earlyretirementari]

Superhero! You are in a good spot :)

[@andywang4495]

Great video. I'm thinking if I should retire early and this gives me a lot of food for thought

[@earlyretirementari]

Excellent!

[@deirika0613]

Love your videos Ari! I am 63, retiring at the end of 2024. You’re young but sharp! Keep making these great videos!

[@earlyretirementari]

Thank you very much!

[@andrewulrich6612]

They have a significant brokerage, they retire early and go on an exchange to get Healthcare so that brokerage income isn't really affecting pre medicare Healthcare costs. They get significant premium credits.. Probably just some reportable dividend income and interest income showing. Their Healthcare cost will actually increase at 65. You can literally be paying 500 bucks for two people in early retirement living off a non qualified account and when you hit 65 that probably doubles as you both begin Medicare premiums.

[@richdewitt760]

True that! Great observation! The Super Hero Brokerage Account is my plan to go out at 58 1/2 , so long a Politicians do not tank the ACA.

[@chrisniner8772]

500 bucks per week, month or year?

[@andrewulrich6612]

@@chrisniner8772 a month. Remember, its about income. We show 57k a year in income. That gets us a gold plan for both myself and my wife for $511 a month. If you do a Roth conversion up to 100k then you lose $1300 in credits per month.

[@earlyretirementari]

Month!

[@andrewulrich6612]

​@@chrisniner8772thats per month for a gold plan. For two people, with a $750 per person deductible and a $7500 per person total out of pocket.

[@johnlittle8267]

Seems like they have major sequence of returns risk taking so much out in the first 10 years and hoping there is much less when they get to 70 years old. There could easily be 3 double digit negatives years in the next 10 like 01-08.

[@Bob-yh7ir]

Going out in our late 50s on a lot less than that. But our spending is a fraction of this example. Glad you went into the various or dynamic withdrawals and that you can take a higher % off every now and then. We came to this conclusion a while ago when planning early retirement as we looked at what our estimated SS will be even if claiming a bit early. My SS alone more than covers all our household expenses and leaves some left over for entertainment. So the need to pull off investments becomes much, much smaller after that point. Like your example here, somewhere around 2 to 3 % And that is sustainable in almost any market. Projections show we will also have a larger portfolio in our 70s and 80s then when we retire. Gonna have fun trying to spend some of it. :)

[@earlyretirementari]

Great point and glad it was helpful. Go have FUN. Health is wealth.

[@arh1234]

Love the idea of varying withdrawal rates over time!

[@earlyretirementari]

Glad that resonated!

[@davedeboy5726]

many forget you can write off that health care insurance expense too.

[@earlyretirementari]

Yes!

[@thienthan324]

I am just wondering how people spend less as they get older. Hiring caregiver or paying for a nursing home is very very expensive.

[@ttangent69]

Thanks for the videos. 55 and thinking about retirement. Is it possible to discuss getting one of your ‘rough drafts’ to see what our realistic monthly ‘income’ could comfortably be?

[@earlyretirementari]

You got it!

[@ttangent69]

Great. What’s the best way to connect?

[@earlyretirementari]

@@ttangent69 I have a new video coming out that should help show you a sample. If you want to work with us, apply here: vwo3759x8i7.typeform.com/earlyretirement?typeform-source=www.youtube.com&fbclid=PAAaarFyyhhb44pmTIkMnDwDnU_MFG2XkbcQxTK7qAHfgxyu4VDORlf8Eq758_aem_AftLw61pqlOhMDnF5peZMVr8Ja1ailgRHeu9MZqqiTGfccZdtRl-MH1Pi9cVWRhSE50

[@davedeboy5726]

I retired on 500,000. I invested all of it into nvda 10 yrs ago. I now have over 27m in the bank/investments and live extravagently.

[@earlyretirementari]

That was a smart call!

[@carlenec1625]

Wow. All of it. Good for you. I have most in AMZN, some in NVDA. Lol

[@johnsamson798]

B.S.

[@davedeboy5726]

@@johnsamson798It's true. I don't care if you believe it or not.

[@kenleith473]

Great videos. Question, did you adjust the 10-12k a mo for inflation in your calculations? The other thing is the 2 ish mil left at end isn’t going to be a true (today’s value) amount. 2mil 20+ years from now in purch power will be way less. Can you address these in a future video? How does someone factor these items into the plan? Great job!

[@earlyretirementari]

Yes, all adjusted for inflation:) I toggled on future dollars to understand present value :)

[@gizmobowen]

Nice video Ari. Sure wish I had my portfolio with such a diversified location. With a portfolio made up of mostly pretax, I was expecting to see a big spike at RMD age, like I"m going to experience. That brokerage account sure has super powers.

[@earlyretirementari]

Thanks for sharing!

[@mikehall4879]

Love a good case study but did I miss it? Did you disclose what the proposed average rate of return your plan is based on relative to their investments? Without that, the case study you present is somewhat meaningless on how realistically it is achievable or not.

[@earlyretirementari]

6%

[@guillegadea]

In Argentina you can live well with only 1500 dollars a month.. And it's a great country!

[@earlyretirementari]

Indeed its a great country!

[@joesph9748]

Is the example of spending $12k a month before or after taxes. I am assuming given their total savings that they will need to take taxes out of the 12k. So what is the actual number they actually need to hit their goals?

[@earlyretirementari]

After taxes and adjusted for inflation!

[@joesph9748]

@@earlyretirementari thank you. BTW, you do an excellent job in clearly reviewing the scenarios. Well done

[@earlyretirementari]

@@joesph9748 I appreciate that!!

[@Tincupping]

The answer is yes, no, maybe. It all depends on what you spend each month.

[@earlyretirementari]

You’re correct.

[@AlexBradford-hk6bg]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.

[@AmeliaJohnson-ow6ew]

Keeping some gold is usually a wise decision. You would be better off keeping away from equities for a bit or, even better, seeking advice from an expert given the current market conditions and everything that is at risk with the current economy.

[@earlyretirementari]

Consider a financial planner before taking the step and ensure that your investments aligns with your retirement goals!

[@johnhicks1754]

Wearing a bathrobe and appearing unshaved and unbathed reduces credibility. Are you serious? You seem to know what you are talking about but not sure I can take you seriously.

[@dnk4559]

lol, I totally thought he was wearing a sweater but honestly was thinking more about what he was saying!

[@leeluna6495]

He'd be well-served by refraining from saying "he's like..." when he means "he said."

[@7SideWays]

I didn't even notice! LOL

[@claude6254]

Lol, its not a robe its a sweater with a belt. I was too busy listening to the content and determining its value rather than his appearance playing any role in that determination