Fidelity's Rule of 45% | Save This Much To Retire

Fidelity's Rule of 45% | Save This Much To Retire
Fidelity's Rule of 45% | How Should You Save?
🔥 Sign up for Azul's Newsletter:
www.azulwells....
🔥 Follow Azul on Twitter:
/ azul_wells
More info on Fidelity's 45% Rule
www.fidelity.c...
www.fidelity.c...
💲 NEED FINANCIAL ADVICE? 💲
1) Google "fee-only financial adviser" or visit www.NAPFA.org (largest association of fee-only financial advisers). NOT an affiliate link
2) The first question to ask any financial adviser is, "Are you a fiduciary to me 100% of the time". Get the answer in writing
3) Please note that some people call themselves "fee-based". This is NOT the same as fee-only. Fee-only advisers have committed to being fiduciary to you 100% of the time.
4) Personally, I would only hire an adviser who is a fiduciary to me 100% of the time. This is not a suggestion on what you should do. Just sharing my personal preference.
⚠️ Azul's "Scammer" Warning ➡ PLEASE READ! ⚠️
Be careful of scammers. In the comments section, I will NEVER ask you to contact me, offer any investment products, recommend a stock broker, or anything similar. Some scam bot commenters 'ask' for investment help, and later, other comment bots reply with "how great X idea/investment/person is" in the replies. These are scam threads. Do not fall for them.
🚨 Azul's VIDEOS ARE NOT FINANCIAL ADVICE (Disclaimer) 🚨
This information is only provided as an informational resource and should not be viewed as investment advice or recommendations. To get professional financial advice from a fee-only financial advisor near you, please visit www.napfa.org.
The decisions on how to invest, when to retire, and other financial planning topics are some of the most important financial decisions you will make in your life. I urge you to seek professional financial advice as you make this decision. Ideally, from a financial adviser, AND a CPA AND an attorney. Having the perspective of all three professions will help you make the right decision for you and your family.
This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and may NOT be suitable for all investors.
This information is NOT intended to, and should NOT, form a primary basis for any investment decision that you may make. Always consult your own legal, tax, and/or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.
Spoiler Alert: There are no "get rich" programs. Rather, just basic blocking & tackling and putting in time and care. Do your homework, choose wisely and (IMHO) work with experienced professionals who are fiduciary to you 100% of the time.

[@NicholasBall130]

So far I'm doing good, approaching retirement with about 800k in savings. Transitioning from building wealth to spending can be scary, especially with soaring inflation. My question is, after maxing out my tax-advantaged retirement accounts, what next?

[@StocksWolf752]

In my opinion, some financial situations can be handled on your own if you research enough, while others are best navigated in consultation with a financial advisor

[@TylerJamestown]

Agreed, the role of advisors an only be overlooked but not denied. I was shocked that I made more money with investing than hard work, not even my CEO income. Earning ''return on investment'' fetched me millions within a space of 5 yrs.(But I still enjoy working)

[@StacieBMui]

How do I reach out to a financial advisor, my portfolio has been struggling since 2022 and I’ve been holding on by the skin of my teeth.

[@TylerJamestown]

There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Sonya Lee Mitchell’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

[@grego6278]

I just checked her out on google and I have sent her an email. I hope she gets back to me soon.

[@miamivicefanatic9736]

As you approach retirement, carefully track your expenses for one year. Make adjustments as to which expenses will be going up and which will be going down after you retire. That is the best way to figure out how much money you really need.

[@BusArch42]

I would go one step further. My husband is retiring in 18 months. I reduced our budget to match his estimated income three months ago. We will live on his pension plus my income until I retire two years later. Prior to my retirement we will reduce to that estimated level.

[@laurelharper123]

51 years old. I have $295,588.25 in my Fidelity retirement account. I cranked my contributions up to 35% and I do all the investing on my own. Fidelity just holds my ETFs/stocks. I made that change earlier this year. I'm hoping to end the rat race by 60 but it's looking more like 63-ish. I want to have $1.5M and bring in about $60k in dividends each year. Pedal to the floor! Thanks for the video. Great content.

[@harperjune-b2m]

Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.

[@maryHenokNft]

I agree, having a portfolio-advisor for investing is genius! Not long ago amidst the pandemic crash in March 2020, I was really having investing nightmare prior touching base with a license portfolio-advisor. In a nutshell, i've accrued over $550k with the help of my advisor from an initial $120k investment thus far.

[@maggysterling33254]

@@maryHenokNft wow ,that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio

[@StellaMaris-lv2uq]

Thanks, I just Googled her name and her website came up right away. It looks interesting so far. I'm going to book a call with her and let you know how it goes.

[@ThurstonConsulting]

I am glad to hear that dividend income is part of your strategy.

[@ernestmccutcheon9576]

Hey Azul, glad you’re enjoying Brugge😃. Remember that KZbin is international and Americans living in Europe are also watching (as well as Europeans)!

[@nicolasbenson009]

I’ve been diligently working, saving and contributing towards financial freedom and early retirement, but the economy so far since the pandemic has eaten away most of my portfolio, what I want to know is this: Do I keep contributing to my portfolio in these unstable markets or do I look into alternative sectors.

[@keepitreal1547]

The only thing that matters in planning for retirement, is planning to make sure you have enough money to live the life you want in retirement. Simple, there's no other rule whatsoever that matters.

[@davey3770]

First, Second, and Last - don’t vote for a Democrat!

[@SandraDave.]

Just try to diversify your portfolio to other market sectors, that way your investment is balanced and you don’t get to make so much losses.

[@KarenLavia]

It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.

[@Miakate-f3l]

this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

[@CarrieHutton-o6y]

Fidelity has most of our retirement assets. Their tools operate using an algorithm for a life lived to mid and late nineties. We have hit 10x at 60 and consider that a good place to retire. I couldn’t imagine working until age 67. One would lose so many healthy, active years in retirement. Another great video, Azul. Thank you!

[@BusArch42]

We use that one. I also ran a separate excel tool and they agreed shockingly well

[@tancreddehauteville764]

10X what?

[@LashellRadke]

For me, I believe 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 determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.

[@sandra65823]

This is true. 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 her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.

[@MargaretMargaretKarjala]

It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $760k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.

[@mark75700]

I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.

[@MargaretMargaretKarjala]

I definitely share your sentiment about these firms. When I was starting out, I checked out a couple of freelance investors online, so you could do the same. I personally work with “Stephanie Kopp Meeks ”, and she's is widely recognized for her proficiency and expertise in the financial market. With a comprehensive knowledge of portfolio diversification, she is acknowledged as an authority in this field. Most likely, her deets can be found on the net, so you can confirm yourself.

[@mark75700]

Insightful... I curiously looked up her name on the internet and I found her site and i must say she seems proficient, wrote her an email outlining my objectives. Thanks for sharing.

[@NotTheSharpestKnife-mh]

Good for you! I have watched a lot of KZbin advisors on this subject and you are the first one to talk about expenses rather than income. That is such an important point. Also, your point about the income tax on money taken out of non-Roth retirement funds is very important. (I thought it would be taxed at the capital gains rate and was very surprised.)

[@hogroamer260]

Those big increases in networth are mostly real estate appreciation. Throw in inflation and they're no further ahead. Real estate for the single family homeowner does nothing for you since you have to have a place to live.

[@AlanJohn-z7c]

Hi, I’m a 60 year old Aussie, and planning on retiring shortly. I have a great financial advisor, who works well with me. Im dropping this note to say I really enjoy your advice, it’s balanced, and interesting. You always share other advisers views, which gives a mixed of views. Thanks for good smart info, it’s helping me make decisions, at a very important time. Well done

[@dxtorrey]

Love the content. I was distracted by the surroundings and was thinking it looked familiar. As soon as I saw the bell tower I knew you were doing your video from Bruges Belgium!

[@denis888red]

Nicely and concisely put.

[@ericfino5684]

Hi Azul, looks like you’re traveling Europe. Perhaps Brugge the Venezia of Belgium. Great videos keep em coming.

[@saturninosanchez-j6b]

BUILDING WEALTH INVOLVES DEVELOPING GOOD HABITS LIKE REGULARLY PUTTING MONEY AWAY IN INTERVALS FOR SOLID INVESTMENTS. FINANCIAL MANAGEMENT IS A CRUCIAL TOPIC THAT MOST TEND TO SHY AWAY FROM, AND ENDS UP HAUNTING THEM IN THE NEAR FUTURE. PUTTING OUR TIME AND EFFORT IN ACTIVITIES AND INVESTMENTS THAT WILL YIELD A PROFITABLE RETURN IN THE FUTURE IS WHAT WE SHOULD BE AIMING FOR.

[@obreque-i8w]

Assets that can make one successful in life

[@obreque-i8w]

1...forex 2...stocks 3...shares

[@kathleen-n5i]

But i don't know why people remain poor due to ignorance

[@kathleen-n5i]

Forex is profitable and lucrative investment online

[@nelliehill-32]

Natural, there's a lot of math involved in forex trading. but this is often presented in forms of daunting technical charts, indicators, patterns.

[@tomra01]

Thanks Azul. Bruges is lovely. Hope you get to Ghent too on your travels, super pretty

[@briankirkpatrick9628]

It looks like you're filming from the square one block over from the Brugge Belgium town hall.

[@GillerHeston]

It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.

[@rogerwheelers4322]

Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.

[@joshbarney114]

I completely agree; I am 60 years old, recently retired, and have approximately over 2 million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.

[@FabioOdelega876]

This is exactly how i wish to get my finances coordinated ahead of retirement. Can you recommend the financial advisor you used to get ahead?

[@joshbarney114]

My Financial adviser is ‘’Colleen Janie Towe’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

[@FabioOdelega876]

Colleen has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.

[@ToddMosley-z9j]

It's one thing to figure out how much you need during retirement, how much you need to save, and what account you will use to do so. But the primary challenge is finding the extra funds to put toward savings, especially if your budget is already spread thin. For many, this means changing spending habits, re-budgeting, and redefining needs vs. wants.

[@WalshWalsh-fy5zh]

Exactly my thoughts...Separating your personal budget between discretionary and non-discretionary spending helps create a baseline in terms of what you need versus what you want.

[@VikaFerran]

Setting aside part of your monthly income to your savings is vital to your journey. You need to think about investing those amounts. Investing puts your money to work for you and usually gives you the benefits of compound interest.

[@VikaFerran]

Many overthink the process of saving for retirement. Let me suggest simple guidelines that can be started today by anyone and which has most certainly helped a few. First, start setting aside some money each month. A good goal is 10% of your monthly income. It may take years to achieve that goal, but any amount of savings is better than none. Automate your saving and invest with Bianca Harley Doran-that way, it happens without you having to remember, and the minimum needed to open a mutual fund is often lower if you automate your investments.

[@ChristopherNewman-fo4ie]

Don’t over-manage your investments. When some of your mutual funds are not performing well, be patient and invest more. Buying low, being consistent, and exercising patience are the hallmarks of successful long-term investors.

[@NikaBedi]

​@@VikaFerran It's wonderful to see Bianca mentioned. As I got closer to retirement, working with her gave me opportunities to recoup any losses that I had incurred on some certain investments I made earlier.

[@bobromphf9644]

At the end of the day do a budget of your expenses in retirement and what source of income generates your monthly/yearly income. Adjust accordingly.

[@timmoerman2694]

Thanks for the videos. I wish people were clearer, when talking about doing something with an amount based on your income (saving per year, portfolio, etc.) if they're talking about gross or net income.

[@meatpiman224]

Brugge is nice city to visit

[@PauliMoffatt]

I appreciate your thoughts. I think you have picked a good theme for your channel. I personally do not plan on retiring. I run a small business and can't see packing up :). I will say that all my friends want to end their working career at this point.

[@TeIegram-_couchstarsip]

0:10 Thanks for responding I've got something new 📩.

[@TeIegram-_couchstarsip]

@investazul.

[@bsetdays6784]

Since watching this video I have really put the pedal to the floor on retirement savings this past year......set my automatic withdrawals for 2023 to max my 401k and ROTH IRA accounts. I make under $150k a year.....paid off our vehicle and my wife is babysitting 1 child from church which has helped me pull the trigger to max everything out.

[@selenajack2036]

Most newbies either do not understand the power of compound interest, or are just impatient. For the average Joe, however, I think it is just best to invest and just wait, which is reliable, albeit extremely long-- lots of years. Or just use a professional analyst and speed up wealth creation. Most people underestimate the power of the later.

[@roddywoods8130]

I agree with you. I started out with investing on my own, but I lost a lot of money. I was able to pull out about $200k after the 2020 crash. I invested the money using an analyst, and in seven months, I raked in almost $673,000

[@kaylawood9053]

I'm happy to have stumbled upon this discussion. If you don't mind, could you tell me the name of the financial adviser who helps you with your investments and how I might contact them? It Intrigues me to keep learning

[@roddywoods8130]

Finding financial advisors like Mrs Marisol Cordova 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.

[@adenmall7596]

excellent share, just inputted her full name on my computer and searched online, top-notch credentials. Ive seen commentaries about advisers, but not one looks this phenomenal

[@AEVMU]

That 4.5% is not 4.5% of their income as verbally stated, its 4.5% of their total savings assuming those savings are invested in stocks and bonds.

[@kmilton1593]

Unlike some of the retire-early commenters; I am low income, self-employed, and still working at age 75 1/2 . If I quit working, might kick the bucket: so will continue working as best I can.

[@HughJass-313]

I'm tracking to hit my *'5x'* just before I turn 50 🔥🔥🔥 I'll need some luck... but in theory, it should compound to 10x within the following decade 😜

[@karrelaw]

This has never made sense to me. According to this rule, If I were to leave my current job, and get an new job that paid twice as much, I would suddenly put my retirement in jeopardy? What? Basing it on expenses makes so much more sense!

[@AfterDeath1986]

Yep I have accelerated debt repayments set up... to were I'm living on 30%~ of my income. Which if I use traditional guidance I'll have over double what I need right now in retirement... makes no sense.

[@brianmcg321]

But if your living expenses went up with your pay, then you would need to save more.

[@AfterDeath1986]

​@brianmcg321 aye that's why you keep savings in line with expenses ^^

[@soldierhobby2038]

Expense-based is best but that needs tracking one’s expenses diligently over a year or two (at least). We did this. However, for those who haven’t or are having difficulty doing it, income-based estimation should be the next best thing.

[@keepitreal1547]

The only thing that matters in planning for retirement, is planning to make sure you have enough money to live the life you want in retirement. Simple, there's no other rule whatsoever that matters.

[@tancreddehauteville764]

The Fidelity chart assumes people will want to retire on a given percentage of income, which isn't necessarily the case. If you make $200k a year you don't need $110k as a pension income, you can probably live pretty well on $80k a year. However, if you make $100k a year then you'll be keen to get a pension income of at least $55k, let's say. What matters is your expenses - and when you retire you can take action to reduce your expenses by moving to a cheaper state, get a smaller house etc.

[@Juju-wk7yv]

Excellent video.

[@titolovely8237]

im not exactly in your target audience (age 33) but i find your rational views and experienced advice extremely helpful. my parents are retiring this year and it's really put me into the mindset of retirement planning. you've helped me understand more about what and where i need to be and so far im on track at a little under 3x my income saved. in fact youve really helped me spend more as i was so worried about money in my 20s that i developed a really bad habit of not spending any money ever, which is miserable. now that i know im on track to retire comfortably, it's fun to spend!

[@AzulWells]

Thanks for sharing your experience with money. That is the power of a plan. It gives you the freedom and "permission" to spend money without feeling guilty. I thrilled you are on target at 33. Frankly the hardest thing is to get onto that target path. Once you are on it, it oftentimes feels effortless to stay on. Thanks for watching and for commenting. And congrats to your parents for their upcoming retirement! Azul

[@nikij.6058]

Beware. You likely don’t need this much money to retire…

[@tancreddehauteville764]

That's a very good start. At 33 I only had $40k or so in savings, now it's $900k at age 57.

[@adamp6320]

I hate rules of thumb based on income, not expenses. Income can change drastically year on year. Expenses are generally in your control beyond the basic food/shelter/utilities to keep you alive, above and beyond that is discretionary in the main. If I get a 50% raise in my income by a job move how am I supposed to retroactively save that much?

[@MrGus.1]

Azul, this is all great, but what about inflation? How about a couple of years of hyper inflation after you retire? One is not retiring on present dollars, but on "future dollars", or perhaps future Yuan if Biden is re-elected.

[@Riggsnic_co]

I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.

[@TheJackCain-84]

Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.

[@martingiavarini]

This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.

[@LisaEgan78]

Mind if I ask you to recommend this particular coach you using their service?

[@martingiavarini]

"Carol Vivian Constable " maintains an online presence. Just make a simple search for her name online.

[@martingiavarini]

'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

[@dawsondanny990]

I’m currently retired, and considering the current rollercoaster nature of the stock market, I decided to stay on the sideline for awhile, now I’m worried with the numerous bank failures as of late, am I better off reinvesting my savings in the stock market or do I wait?

[@blissds-gi3mb]

Given the prevailing market conditions and the potential risks associated with the current economy, I would recommend refraining from investing in stocks for now. Instead, it would be prudent to consider retaining a portion of your assets in gold.

[@NancyFranciss]

Just because there are opportunities in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth

[@MollyShorters]

Right now the markets are going berserk right now. This is the best time to watch them, get to know them better, and strike when the opportunity presents itself. I learned that from my mentor, ’Betty Sue Blanchard’ she's seen dozens of market cycles over the past few decades, and she has a feel for how they move, why they move, and what comes next.

[@dawsondanny990]

Fantastic! can u share more details?

[@PhilipMurray251]

She’s a hlghIy-sought out advlser, so I’m not certain she’s acceptlng new intakes

[@le9051]

Anytime I watch a video about how much you should save for retirement I always forget about the value of my home. And I'm wondering if I should take that into consideration or literally we are talking about just savings and not include the equity of the house?

[@celtics2008champs1]

Thanks for all the great info !!! Could you in the future tell us what country or location you are in. Thanks !!

[@sallyprzybil2404]

In looking at the Net worth chart, remember Net worth takes into account any property you own also, not just money invested in the market.

[@Green__one]

Which means it's actually much worse than it appears, because someone's primary residence isn't really a liquid asset they can spend in retirement

[@sallyprzybil2404]

@@Green__one true.

[@annahopp]

We only spend about 50% of our income now. if I take 45% of that (no house, one used car, no kids, no saving), we could retire comfortably by 59 1/2.

[@shellywhite2145]

I am new to the stock market. Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks.I believe having 275K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a FA) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities..

[@shellywhite2145]

Hi , please who is the expert assisting you and how do I reach out to them?.

[@shellywhite2145]

Thanks for sharing, I just looked her up online and I would say she really does have an impressive background on investing,

[@Donkeyearsa]

Picking stocks is a 60 hour a week job. What I do is I invest in a low fee S&P 500 index. It's boring but you are in the position to profit in the good times but have more safety from a company going down the drain. A company will be removed from the index long before it becomes a penny stock. It's boring but it will get you where you need to go.

[@morganss71396]

Do not listen to the above BS people recommending advisors…..SCAM. Just buy these 3 ETF’s and leave them alone and watch your money grow. MOAT, COWZ & JEPI

[@StephanieHana69]

Question… should these numbers (7x expected, 10x expected, etc) adjust as your income changes over your lifetime?

[@alvaroaguado3]

I never understood this chart. At your 30s and 40s you continue to increase your salary. What’s the target of a moving salary?

[@Donkeyearsa]

I'm doing quite well. I'm 53 and I have 90% of what I need for my expected expenses in retirement at the age of 62 and starting to collect social security at that same time.

[@scootertooter6874]

Wouldn't start collecting Social Security at age 62 in any circumstance except one: You don't think you'll live much past 67 (Full Retirement Age). You are throwing away a HUGE amount of money for life if you start drawing at 62.

[@FantmVirus]

current income = base pay only or base + stock + variable bonus?

[@ChristopherAbelman]

Increasing tax rates are the reason I rolled over my 401k to a Roth. I don’t want to be 59 paying taxes on current income on withdrawals made from my retirement account.

[@FinnBraylon]

Effective personal finance management matters more than the income source, whether from a job or investments. A certified financial advisor can offer tailored guidance to reduce expenses and boost income, optimizing your financial situation.

[@PennyBergeron-os4ch]

I completely agree; I am 60 years old, recently retired, and have approximately $650k in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglected, not rejected. Just do your due diligence to identify a fiduciary one.

[@HildaBennet]

This is exactly how i wish to get my finances coordinated ahead or retirement. Can I get access to your advisor?

[@PennyBergeron-os4ch]

Her name is “Sonya lee Mitchell” can't divulge much. Most likely, the internet should have her basic info, you can research if you like

[@HildaBennet]

I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.

[@2023Red]

At age 75, we have no money worries. Our pensions cover our meager bills to include PITI and Honda pmt. We have in excess of your table savings and do not to tap into it. My fico is 846. Our trick is to spend less than we make and never eat out in a restaurant. And exercise twice daily. It clears the mind.

[@etiennedevignolles7538]

Are you in Bruges? Edit: LOL, yes, you are deffo in Bruges! :)

[@kruracing5260]

Does this rule include if you have a pension as well? In other words, would I add my pension with my 401k?

[@andrewrivera4029]

In a way average and median really doesn’t apply across the country (US) evenly, you mentioned taxes if you live in a high tax state while working then move to a low tax state in retirement then wahmo you’ve save a lot and that money has grown in your fund. By moving from Connecticut to Wyoming I’ve save 20k in tax alone per year which has allowed me to increase my take home amount significantly. Having the right blend of before and after tax is also important as you’ve said on other videos too.

[@robertsieb9466]

Does that median net worth include the value of the persons home.?Real estate has gone through the roof. That does not help the average person retiring unless they plan to sell their home and live in a less expensive area.

[@donh8833]

If the market maintains 7% then 20% savings from 25 to 65 is reasonable. But if you don't want to count on social security put 25%

[@mplslawnguy3389]

I invest 30%, and I have a pension. A lot of recommendations I see out there seem very low to me. I just don’t see how you can get to where you need to be investing just 15-20% like a lot of literature and finance talking heads suggest.

[@donh8833]

@@mplslawnguy3389 @@mplslawnguy3389 it's very sound. Let's say you are making 100k. Well if you are contributing 30% then you are really loving off 70k. Next go to the " social security estimator" on SSA gov. multiply the answer they give you by .75 to be safe. Then subtract that amount from your 70k/year. That is how much you have to take out per year. Take the remaining about multiply by 1.05. (Stocks gains) also give yourself a cost of living raise. (Inflation)....so repeat for 25 years. Run monte carlo on it and it will tell you how many times it fails to reach your target. All very easy to do in a spreadsheet But if you are really putting away 30% plus pension, Roth 401k is your friend. Putting away that much and you for sure enter a higher tax bracket and hit RMDs

[@Marcia-e2u]

Are these numbers per person or per household? If it is per household then a single person vs married can blindly skew these numbers a great deal as well. Very interesting information, but just need clarification to further benefit from it. Thank you

[@jasonholman5171]

What if you have a pension? How do you factor that in?

[@greensombrero3641]

Belgium is a lovely country with lovely people and beautiful and old architecture. So much history and great beer and belgian fries and chocolate and great beer did I mention? Duvel!

[@AzulWells]

Agree with everything you shared. Beautiful villages, people, etc. In addition to Duvel, I'd add Bruges Zott! 🍺 Azul

[@greensombrero3641]

@@AzulWells bravo

[@davidriley9621]

“Current income “ pre or post tax ????

[@jamminjh2419]

You left out social security and pensions which can compensate for a savings that short of the 45%rule.

[@reellove6710]

Good video.

[@lostinmyspace4910]

In our sixty's now, we were able to achieve the 10 times rule. Notice, I said "we". My wife and I always considered what we have combined.700,000 in ROTH, 850,000 in non IRA investments with Chas. Schwab, and a house worth maybe 300,000. Does a person divide all that by two as individuals, or is it ok to consider it combined to meet the threshholds you mention in this video?

[@kimmiele6011]

👍Make money keep growing is harder than controll in spending money, thanks for sharing your thoughts🤟

[@papablue5665]

Well.... income is misnomer.... especially if living UNDER means. Wage was significantly over expenses. No mortgage, no car loans, efficient household utilities, etc.

[@garypyong]

where are you? The scenery is beautiful

[@lalva2024]

I recently retired at age 66. I’m divorced and took a big hit on my 401k and pension because of court ordered QDRO, in which large portions of these funds went to my ex wife. When it’s all said and done, I will have $700k which is far short of the one mil I was hoping to have. I’m considering to relocate outside the US in order to maintain the lifestyle I deserve. Wanted to get your take, but I know it’s impossible to answer all the inquiries. Thanks for the info you provide

[@kevincross1240]

Do these figures include or exclude social security income?

[@tbam994]

Hey all .... how does a defined benefit plan factor into this calculation?

[@ChristinaDeAngelis-b7g]

Great intel Azul. I recently had a retirement insight report done for my still working husband through Fidelity. Extremely helpful and useful exercise.

[@keepitreal1547]

The only thing that matters in planning for retirement, is planning to make sure you have enough money to live the life you want in retirement. Simple, there's no other rule whatsoever that matters

[@MJHiteshew]

Another great video! What if your retirement portfolio consists of both investments and a pension? Would you divide then pension by 0.045 to get a rough idea of what the comparable investment value is? Or is it more complicated than that?

[@DoubleTFishing]

I wonder how much the inflated housing market has to do with the increased net worth from 2019 to 2022?

[@ReflectionTool637]

I wish yt knew how to stop all these scam posts regarding "financial advisors". You DO NOT need an advisor if you are smart enough and willing to learn a little (most people are!). Consider the 90/10 rule that Buffet used for his wife circa 2013. That way you don't ever get beat by the market and you can live on more like 5% instead of 4% as long as you are flexible enough to turn down the spending in an extended market downturn.

[@HughJass-313]

😂

[@Olsontim21]

As a soon retiree, keeping my 401k on course after a rocky 2022 is top priority. I have been reading of lnvestors making up to 250k ROI in this current crashing market, any recommendations to scale up my ROI before retirement will be highly appreciated.

[@michaelwiebeck3]

The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner.

[@Derekhoffman312]

Having an lnvestment advser is the best way to go about the market right now, especially for near retirees, I've been in touch with a coach for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I netted over $220K so far, that made it clear there's more to the market that we avg joes don't know

[@SteveEstrada-js9nu]

I’ve been down a ton, I’m only holding on so I can recoup, I really need help, who is this investment-adviser that guides you?

[@Derekhoffman312]

I've shuffled through a few advisors in the past, but settled with “Vivian Carol Gioia” her service is exemplary. I'd suggest you research her further on your browser, sure you'll find her basic info.

[@SteveEstrada-js9nu]

very much appreciated, your response suggests a person of benevolence.. just inputted her full name on my browser, and came across her site, top-notch qualifications! she seems well-qualified

[@sew9068]

If I go by my gross salary, i am behind the 45% rule. However, if I subtract all of the money I save for retirement, I am close to what I need.

[@DerekEskens]

You mention that the 45% rule is just a starting point and expenses are more important than income, but what's a good rule of thumb to use when you're retiring early? Example: I'm 50, my income is $250k, I have $2.5M saved. I want to retire *today*. I'm going to assume, just to make things easy, that my expenses are $100k/yr. Do I have enough?

[@lorneserpa5888]

Can you talk about how much you need in relationship to also having a pension. I have a pension and still working, but I don't have as much as many in the bank. I don't have a feeling for what I need in investments to "supplement" my pension. Thank you.

[@gerardmoran9560]

Back in my parent's and grandparent's day, they would pay off their mortgages soon before they retire. Lately, as soon as someone's home is worth another 20K more they pull out a HELOC. It doesn't work that way! To me, a big part of the calculus is how debt are you carrying? If you've retired the debt you carried in your working years, you'll be fine with less income.

[@claragandolfi106]

Was this filmed in Krakau Poland?

[@richardh6964]

One of the problems I have with the classic 10x rule is that it is based on what you make not what you spend. If you make 100k a year but put away 40k and live off the rest comfortably debt free than should you consider the number you want at 65 as being 1 million or 600k? After all once you retire you won’t be saving money anymore unless you have non job related income streams. Most people don’t put 40% of there income in savings or anything close to that but for those that do the 10x rule can lead to overestimating how long you need to continue working.

[@msk3905]

Ok I’ll be that guy, is Fidelity saying this for us or for us to put more in our accounts because the more there the more they make off of us?

[@rozaliapapp1743]

My advice, become debt free, including mortgage, 5 years before retirement. Save the mortgage extra for 5 years as a cushion/savings/emergency and observe your money habits and monthly needs, meaning budgeting. It will teach you and make you understand what you need for retirement. That's what I did end to my surprise, I need less money than anticipated. One thing is important, again: discipline.

[@Muskiehunter4841]

I’m 51. I have $3.2 million in retirement. I need between seven to $8000 a month after taxes. It seems like enough but if the government continues to print money and spend and inflation is not tapped down to below 3% won’t that play a massive role in predicting what I need for a retirement? Fidelity’s conversion factor seems flawed if it doesn’t take that into account inflation.

[@BLaw707]

And again if you have some portion of your retirement in a fixed pension how is that factored in?

[@shanedavison7473]

I don't think that 45 percent rule will work for people with below average income or where people plan to live in expensive areas.

[@scottwilbanks9888]

So when that say 10x your income. Is that gross income or taxable income? Most people still working put at least 15% in retirement. So that won’t be the case when retired.

[@Philliesgirl]

My question also but can’t find the answer.

[@helomech1973]

Is that in Rothenburg?

[@dylanmoris6211]

We experienced the peak of our era, and now it is gone. Recession is tanking everything including 401K. My retirement equities portfolio of $750K is in the reds. I keep losing because of inflation. This world will fall to the corrupt rulers in the same way that Rome did. I'm sorry if you're thinking about retiring and you're worried that your pension won't be enough to meet the rising cost of living. Horrible foreign policies everywhere, bad regulatory policy, bad fiscal policy, and bad energy policy.

[@williamsbrown4026]

For retirees and those close to retirement, I believe it's particularly challenging. All those years of labor only to lose it all to a problem you weren't responsible for, my regrets to everyone retiring during this time.

[@LionTowercoporation]

I'm very worried about the future and where we're all heading, especially in terms of money and how to get by. I'm considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?

[@KelvinWallace]

After the pandemic, things became extremely difficult, which is precisely when I sought a Financial advisor. I've been investing with the help of my FA for nearly 3 years and have built up a stagnant reserve of $280K to $570K in just over 24 months.

[@UshnicYuvnikof]

@@KelvinWallace That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?

[@KelvinWallace]

My Financial adviser is ‘’Colleen Janie Towe’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

[@HelloHello-yb1rl]

One thing i didnt realize is how your income changes throughout your career. I will probably be making double my current salary of 130k in 5 years. I started my career making 50k but will be making 250k when i retire. It is hard to know what tour life will be like when your 20, would definitely recommend putting away 20% in your 20s before kids come witht all that expense.

[@samuelcarpenter1407]

How much do i have to have to retire at 36?

[@DaveT0818]

Net worth increase doesn't mean anyone they are saving... most I suspect was home equity increases.. means nothing... you still need to live somewhere

[@florencioaviles408]

Just to be clear, is income gross or net pay?

[@LaGorda43]

Net, gross pay is money you will NEVER see, so clearly that is not calculated as being available at retirement.

[@davidtennyson4908]

Does, for instance, the 45,000 dollars a year income include 20,000 a year in SSI? 😊

[@titibluesg]

Before or after tax?

[@r2bach]

I'm sure this has been addressed somewhere in the comments, but what is the definition of income? Gross or "take home?" I assume it's "take home," given the context of some of the sources I've read. Is this correct?

[@Philliesgirl]

I was wondering the same thing!

[@Mc-eq9zf]

This is a great video, very informative. Good job. It was easier for me to get rich when i learnt the modus operandi of diversification investment portfolio. Spreading my investments across different asset classes to manage risk. I focused on capital appreciation through high-risk, high-reward assets. Income-oriented strategies target regular income from dividend stocks and bonds. Used the value strategy to seek out undervalued assets for potential long-term gains. Worked like a magic!

[@shihata253]

Building wealth involves developing good attitudes, like often putting money away at intervals for solid investments. Instead of trying to forecast the stability of the market and precisely when the change is going to happen, a better strategy is simply having diversified portfolios that’s well prepared for any eventuality, that’s how some folks been averaging 20K every week.

[@MarkusAkims]

It is always good to have a financial plan. I work with a portfolio manager and fixed income planner in the USA. The fixed income portion of your portfolio won’t simply serve as a buffer to the volatility of the equity portion of your portfolio, but will provide legitimate income. That's awesome right ✅️?

[@ZahraRashid-ys2by]

This is really not as difficult as many people presume it to be. It requires a certain level of diligence, no doubt, which is something ordinary investors lack, and so a financial advisor often comes in very handy. That is how most people are able to make such huge profits in the market.

[@gavinjeo]

The US-Stock Market had been on it’s longest bull-run in history, so the mass hysteria and panic is relatable considering we’re not accustomed to such troubled markets, but there are avenues lurking around if you know where to look. My wife and I are retiring this year with over $7,000,000 in tax deferred investments. up until 3 years ago we were 99% in the S&P 500. During bear markets we had a perfect plan. We got an investment manager in our corner and didn’t look at our portfolio for nearly a year.

[@LillieMae57]

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does pretty much well.

[@Prag11]

What if i dont have enough money to retire and im old? Is there a homeless camp out there? Not sire what to do at this point, my body is breaking down. Just keep showing up to work until i drop i guess

[@Powerz00]

I've been keeping a substantial amount of my savings in cash. It feels safe, but I wonder if it's the right approach for retirement. I want to invest roughly *$400,000* in stocks since I've heard that even in challenging times, investors may turn a profit. Any excellent ideas for stocks?.

[@EthanMaloney-qp4lh]

With the current low-interest rates, your cash is losing value due to inflation. It might not be the best way to grow your retirement fund You don't have to put all your savings in the market either. It's about finding the right balance between safety and growth. Consider consulting a financial advisor to create a retirement plan that aligns with your goals

[@WestonScally7614]

When you hold cash, you miss out on potential investment opportunities in the stock market, bonds, or other assets that could yield higher returns over the long term. Having an advisor assisted me in saving up to $3 million for retirement.

[@Christine-wp2bw]

I get it, but I'm concerned about risk. What if I lose my savings in the market? Please who is this advisor that guides you?

[@WestonScally7614]

*Sharon Louise Count* is my advisor; she can help tailor your retirement plan to your specific needs and risk tolerance. Look her up online to get in touch

[@Christine-wp2bw]

I looked up her full name online and found her page. I emailed and made an appointment to talk with her.

[@TheFirstRealChewy]

Its actually happening. This is the beginning of the end of social security benefits. It was widely held that social security benefits covers 40% of pre-retirement income for those making an average income. It was also assumed that you'd need 80% of your pre-retirement income. Hence your investments would need to cover 40%. Now they are saying your investments should cover 45%, hence social security will now cover 35%. Social security benefits won't keep up with inflation this year and maybe next year.

[@jonathanfisk3572]

When we say "income", are we discussing gross income or net income? If my gross income is 100,000 but I pay taxes, and I put 20% into a 401K, I am not bringing home anywhere near that gross income amount. I am living on quite a bit less than that 100,000 amount. So what number should I use to base my calculations on? Should I be calculating based on my take home numbers?

[@Green__one]

If you're talking about fidelity's numbers, use whichever you want, they'll be completely inaccurate either way. If you're talking about actually calculating how much money you need in retirement, you should completely forget the 45% rule, and figure out how much you actually spend in a year, try to estimate how much that will go up in retirement, and then you use the 4% rule to figure out how much money you need. There is zero correlation between income and expenses, it is impossible to calculate one from the other, and any financial advisor that pretends it is possible should be avoided at all costs

[@elimcjones7722]

Every time I get a raise, I think about how much more I now I need to save that much more to catch up

[@fearlab]

multiple of income doesnt make sense with the timeline. Say you make 7.2% on your 401k, then your doubling time is 10 years. So if you are saving to 10x your current salary, you need 5x your current salary at age 57. Yes, I know inflation will kick in but if you have 5x at age 57 and you put in more every year until 67, you'll have more than 10x your salary by 67. The fidelity graph says you need 7.5 times at age 57. Please explain that to me.

[@TheFirstRealChewy]

The 45% rule is the same as the 10x your salary rule and also the same as the 4% rule. Its also the same as living on 80% of your income. This is all based on social security paying 40% of your pay.

[@Green__one]

You are confounding two things, yes the 45% rule is the same as the 10 times your salary rule. But they are very different from the 4% rule. The first two are trying the impossible task of correlating to completely unrelated numbers, income and expenses. There is no world in which they will ever provide a useful answer. The 4% rule on the other hand is looking exclusively at expenses, which can be estimated, and then comparing to the entire documented history of the stock market to decide how much can safely be withdrawn from retirement account over a 30-year time horizon. This is actually a useful method.

[@matthewdimeola7540]

It seems that most of commenters on this channel seem to be saving decently. However, people from 55 to 64 only have $365K! of Net Worth! I do live in California and have concepts of what is needed to live in other states. ( Researching what state to retire to, like everyone else in the state.) I am not sure how these people are going to make it. Am I wrong? This is a little scary to me. I do like this guy! Like the rest of you, I watch many KZbin investment shows, he seems more honest than most and gives out solid information. Enjoy reading all your comments. I didn’t realize how many people use financial advisers. Guess I don’t trust people enough to have them run my money. It does take a lot of reading and research to invest yourself? Probably paying a pro would have got me more.

[@Paul-hl4ck]

when you say a multiple of income do you mean pre-tax income or after tax, that is what is available to spend? Since tax rates decline after retirement, I am assuming net income rather than gross, is that correct?