How Do I Know When I Have Enough Money to Retire?

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[@dianesullivan5338]

I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $450k gains with months, I'm really just confused at this point.

[@HildaBennet]

diversifying your investments is the safest way to handle it. One way to lessen the effects of a market crisis is to distribute investments over a variety of asset classes, such as international equities, bonds, and real estate. It's critical to look for expert advice.

[@FinnBraylon]

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.

[@JosephineKenney]

That does make a lot of sense, unlike us, you seem to have the Market figured out. Who is this coach?

[@FinnBraylon]

Sharon Lee Peoples is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@JosephineKenney]

I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her

[@TS-rd7oy]

Geez his baritone voice! He was born to be on radio with that fetching tone.

[@Deadflush]

he got fired

[@shawnshelt3824]

The ladies liked too much.

[@luccianoblock5127]

@@Deadflush sadly 😥

[@Deadflush]

@@luccianoblock5127 agreed, I really enjoyed him on the show

[@fightingfluent8079]

@@Deadflush what was he fired for?

[@justliberty4072]

Chris Hogan... what a voice!

[@DevinSmith1486]

he is gone now. lol

[@vanguardvaluist2614]

Some people can't be satisfied until they are the richest person in the graveyard.

[@PInk77W1]

“Some people are so poor, all they have is money.” Bob Marley

[@InvestToLive]

@@PInk77W1 That is such an amazing quote. Never gets old

[@PInk77W1]

@@InvestToLive I’m guilty

[@InvestToLive]

@@PInk77W1 Aren't we all sometimes.

[@kirkout7366]

Lol

[@avid580]

It depends on how you live through your retirement. Some people have been able to live off $500k retiring at 45 yrs old. Some only had $300k at 70 and have been able to live off their social security checks. While others gave trouble living with $10k per month! The amount is different for every individual.

[@chadd587]

500k but you'll be in a 37% tax bracket. And if you don't spend it and your kids get it in their highest earning years, they have to withdraw every penny in 10 years. Blowing up their finances.

[@tims4677]

yes, that avoids reality... burn rate... I've done at least 300 financial plans with people... about 1% clearly know what they spend and waste money on

[@bantizzle79]

Better to overestimate then underestimate your goal. I have never heard someone say they wish they have saved less for retirement.

[@too-da-loo]

Yes.. but you have to balance retirement vs. enjoying life when you can. Don't want to cut back during the best years of your life waiting to travel when you retire, only to either drop dead at 66 or struggle to move around due to other issues.

[@bantizzle79]

@@too-da-loo I agree there should be a balance. Unfortunately many people dont save for their future. Then when retirement comes around they are living off what Social Security pays.

[@blackworldtraveler3711]

D T I known and met a lot of people that enjoyed life but on borrowed money and spending every cent they make on things like credit card vacations, including trading houses,spouses, and cars for 30 years.....those best years. They had their fun I guess. The problem now is they are over 50 and still alive unfortunately. Those best years forgotten and if not many regrets.

[@bantizzle79]

@sage With my career the majority of our customer base ages between 60 and 70. Many of them rely on Social Security for their income in retirement. Yes you can over save, but their are a small percentage that fit into that category.

[@judymckee5992]

@sage , I lived in a 55+ community, in my condo block of 24 units, 5 has a mortgage at 65 years old still working, 1 renting, 4 inherited condos, 4 social security, and the rest 2nd home owners.

[@lifeinoklahoma6723]

I used to work at a nursing home. Rich and poor people stayed in the same exact room and attended by the same nurse 🤷‍♂️ with that being said enjoy your hard earned money if not someone else will.

[@michaelsullivan3553]

Dont wait to late to slow down

[@coloursoftherainbow8399]

Are you saying that it might all come to naught because you might find yourself in a nursing home at the final stage of your life?

[@blackworldtraveler3711]

Strange nursing home you worked at. It's all about the journey not a few months or days before end of life.

[@JiggyC]

I use to work at a nursing home as well. I'd say the nursing home I worked at were the middle income. There are rich people nursing homes as well which were much nicer!

[@nathancook8325]

Retirement could be no joy if you didn't save enough before retiring.I retired at 56 and have saved $ 1.11 million over the years of my investment. and I'm grateful to God that at least I retired in good health

[@NarinEmre-dc5up]

>When you read articles about financial freedom, you may hear people drone on and on about how they are spending practically nothing so they can retire at a younger age, like 30. Conversely, they may have already achieved financial freedom and are bragging about how frugal they were so they could retire well before the typical retirement age.

[@Ame_rodri]

Planning for retirement, or even financial freedom, is a marathon and not a sprint, as the saying goes. Breaking up your financial independence goals into small chunks can help keep you on track while making the process a bit more manageable and, hopefully, a little less stressful. Even if you are starting small, the important thing is to get started. Investment creates a safe haven for the future, Everyone needs it so you don't go bankrupt when you stop working

[@kk_G2]

investing is a perlimary decision to be made for the future.

[@Smith.ash2]

Would be nice if you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.

[@Ame_rodri]

I really don't do recommendations, I only invest make my profit and mind my business but i would do it for one reason and that's for the betterment of everyone.

[@Ame_rodri]

>< Sherman Williams Trading

[@overlandecuador8893]

As encouragement for youngsters. I started late to get serious about my future. After a first marriage where my ex spent 10% more than I earned every year. I put blinders on to it. I married again, this time to a person who had the same goals as I. We stayed focused, lived below our means, found savings where we could like growing a huge garden and preserving the food, worked nights and weekends on small homes we built on the side with our labor, bought and sold small items because the return percentage wise was much larger that 10% which supposedly is real good etc. My message, marry smart, stay committed, find humility be happy for the Joneses, don’t be like them. Result: we retired at 60 and have income that exceeds the average working household’s yearly intake. Dave Ramsey approach is solid. We support his message.

[@RogerPack]

Interesting. That's kind of like the "hard work" version of retirement, versus the "long term build up", I like it.

[@Getmooga24]

The Dave Ramsey show literally changed my life, great channel!

[@Getmooga24]

@Beelzebot 28 years of wasted time working for someone else great job lol

[@eckankar7756]

me, too

[@The3baddogz]

Yes!

[@stevensmiddlemass2072]

I admire the financial independence of people, But you can live better if you work a little more. After watching this I think there are people out there, on the extreme, who plan to die early just to be able to retire early. To each their own but to me retirement isn't just about not having to work, it's about having the freedom to do whatever you might reasonably want, such as travel, buying things, enjoying life, etc. I don't think I could retire with less than $3m in income generating investments, maybe $2m at the very minimum. I plan to work until I'm at least 45.

[@TeresaBrickle]

Good for you. However, it would be EXTREMELY hard for you or anyone else to accumulate this type of money making the average American salary, about $60k a year. I’m just throwing that out there. Many people could not do what you can do for that reason. I just invest and make these calls through a financial advisor, generating respectable returns and avoiding taxes with little effort, but only because I hate making regular decisions.)

[@DanLeahfort]

@@TeresaBrickle I've been doing this same thing myself. Can't get into trouble with the IRS when I have no income and all my money is in stocks. I don't like doing any sort of work. Lol. So I just invest through an advisor who does the stock picking. My money grows, and I'm tax-free.

[@velayuthman]

@@DanLeahfort I've been thinking of going this route of using an advisor. Could you recommend yours? And also, how do you prevent capital gain tax?

[@DanLeahfort]

Do you know who "Stacie Kristal Weber" is? She frequently appears on CNBC. I keep my investments in tax-deferred accounts. I can evade capital gains taxes in this method. Your advisor could brief you on further possibilities.

[@velayuthman]

@@DanLeahfort Thank you for this amazing tip. I just looked the name up, wrote her and scheduled a call

[@krogdog]

I’ve watched hundreds of Dave Ramsey‘s videos and I got to say that this is probably the best explanation for how to retire a millionaire that he’s ever said 👍

[@emilsisorganizandote2688]

THAT IS RIGHT. I have been looking for this type of explanation from him. It gave me hope!

[@EzRiffs]

Focus on becoming a minimalist, you really don’t need much. Physical & Mental Health are much more important.

[@JAMANIJAMANI]

chicken and egg ....poor mental and physical health is largely linked to low socioeconomic income. Money is darn important.

[@EzRiffs]

JAMANI I would argue that it’s more frame of mind & relying on less. I know plenty of well off people who are miserable & unhealthy

[@NeoAndersonReloaded]

yup

[@JAMANIJAMANI]

@@EzRiffs Ouch on the 'frame of mind' comment. Food deserts, stress, damp living conditions, child poverty...the endless list of actual health inequalities is not 'in the mind'. Yes rich people can be ill but low income is statistically linked to poor health outcomes. Sorry for long ans but this is close to my heart. Anyway here's to Health and Wealth!!!

[@EzRiffs]

JAMANI my initial comment said “minimalist” not “destitute”

[@detailpeoria]

These withdrawal rates are insane! You need to be thinking 2.5% to 4% not 10%!!!!

[@jacobg8640]

Agreed. You can only make that much interest if you're in riskier investments. By that age you want more of a safe fixed income through bonds. 4% is a much safer number to avoid ever running out of money.

[@JoeGarofaloII]

@@jacobg8640 Dave's mutual funds average about 12-13% return, minus your inflation gives you 10%...

[@JoeGarofaloII]

@Austin Duke I don't know but heck, even the good ol S&P will get you at least 8% usually. Dave doesn't even pick his mutual funds, he has a mutual fund guy pick from the 4 big categories. Nothing's stopping anyone else from doing the same

[@jacobg8640]

@@JoeGarofaloII I wouldn't have wanted to live off of interest of the S&P or a mutual fund during 2020. Odds are too great of one bad year destroying all of your savings. That's fine when you are investing since you have time to wait for recovery, but not when you need the money to live.

[@JoeGarofaloII]

@@jacobg8640 If you have millions in your investments and you're living off a couple hundred a year and the market takes a dip for a few months, you're not gonna die

[@zeake13]

Chris Hogans's voice is like smooth caramel and chocolate syrup. Rich and strong......I have got to get working on retirement.....

[@Suntz_u]

The rich are money minded. That is one thing I learnt from the start. I have always wanted to build wealth. I have set out $167k that I had been saving since 2020, and I want to put it in the stock market so I can grow my wealth. Any recommendations?

[@Americanpatriot723]

It is really good that you do. I know a lot of people who have made a lot from the stock market. But you need to spend a lot of time studying the market if you want to be a pro, or you use a stock broker who really knows what they are doing.

[@CynthiaByrd648]

For real, people underestimate how much they can rake in from the stock market. Started with $87k just before the pandemic hit. Many people's portfolios tanked, but I rode through with my financial advisor, and even made more than $150k within just five months of starting, and it's been an awesome ride since then.

[@Americanpatriot723]

@@CynthiaByrd648 This is something I've heard of severally, but I just don't know how to find an advisor. If you'll be kind enough, can I ask who your financial advisor is?

[@CynthiaByrd648]

The thing is that I really don't like making such recommendations. But there are many independent financial advisors you could check out. I have been working with ''Jill Marie Carroll'' for about three years now, and she's made decent returns. If she meets your discretion, then you could go ahead.

[@Americanpatriot723]

@@CynthiaByrd648 Thanks for the info, found her website and its really impressive.

[@PotBellyPete69]

I have been retired for five years now. Although I've been adhering to the 4% rule, things are challenging as I did not anticipated. I have another $460K to put into st0cks. How can I profit from the market's resurgence.

[@AddilynTuffin]

Now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.

[@Redwood4040]

This is really nice. I worry that I have a couple more years before retirement, and I want to switch to using a financial advisor, I could really use the expertise of this advsors.

[@Redwood4040]

I just googled her name 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 call.

[@ecgodsmack86]

Get Rid of the stupidity and the brokenness in one family tree. Respect

[@fog137]

After our financial advisor told us we had enough to retire on, I retired. Then upon reaching social security age for my husband and myself they sent us a list of other assets from previous employers we didn't know existed. That amount was equal to 40% of what we knew we had. Our financial advisor as well as ourselves were delighted with the news.

[@smithersrob]

Simplest rule of thumb, when you have twenty times your forecast annual expenses saved. That allows you to pull out a pretty safe 5% per annum without touching the capital. So if you are a minimalist spend thrift who can live on 20K then you need ~$400,000 saved, if you want to match the average annual income of $60k then you need a $1.2 million dollar nest egg and if you want to live it up on $200k/year then you'll need to put away ~$4 million for retirement. Of course that's not your net worth, its nest egg invested in income and capital growth assets.

[@hillaryrowland1]

I want to invest roughly $70,000 in stocks since I've heard that even in challenging times, investors may turn a profit which could help me to gain financial stability during retirement. Any excellent ideas for stock?

[@RhondaLawson014]

It's crucial to have a well thought-out strategy and not make impulsive moved based on short-term market fluctuations. Patience and a long-term perspective are keys. you should consider a market expert to guide you

[@EricMoore158]

That's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2 years+

[@stephenbates6]

One of my goals is to employ the service of one this year. I've seen some off LinkedIn but wasn't able to get a response. Could you recommend who it is you work with?

[@Queenbrenda989]

Important of investing cannot be overemphasized, that's the only way to gain financial freedom

[@EricMoore158]

​​@@stephenbates6Timothy Eric Meek is licensed fiduciary I use, just research the name you will fine necessary details to work with a correspondence to set-up an appointment

[@pyzik200]

Anyone else just want to hear this Chris Hogan tell you a bunch of advice? Dude speaks with authority.

[@0neofthem]

Just max out 401k and Roth IRA. Don’t be like millions of Americans with pitiful retirement savings for their age. Live below your means at any income level.

[@thecatnextdoor12]

I’m eyeing a luxury assisted living facility which costs $6,000. I’m saving into three retirement accounts to hopefully afford the place when I’m old.

[@ariefraiser140]

For the vast vast majority of people who start saving early enough that will be enough.

[@samspraguefinanceformula3519]

Agreed. Pay yourself a % of your income and cap out your retirement accounts for life and you will be fine

[@bluetech7128]

The Cat Next Door just $6000?

[@sjhdfbasndf986]

Convert 401k to Roth. one account will grow faster than two

[@melrosehawkins8294]

Chris has an awesome voice for radio. Deep and clear.

[@BradColemanisHere]

Honestly, if you do what they say and save 15% of your income into retirement funds you will retire 10 years early, debt free, and live financially stress-free the rest of your days. They can't say that in a big public forum like this, but that's what it really means. Now, you have to do the rest of the program to protect yourself from LIFE but if you do that, you're golden.

[@aimsforasl3534]

I dearly want a copy of that sticker on Chris's computer..."Focused and not finished!!"

[@AudraZapoticky55]

investing requires good experience and knowledge to carry out a good and successful trade, I have lost a lot trying to trade all by myself May I ask which investments are good??>>>>>>.

[@Annis-co7vu]

I understand your concerns, my friend. I recommend exploring passive index fund investing and expanding your knowledge in this area. Personally, I experienced both successes and challenges when initially seeking a reliable passive income......,

[@Madlyn55]

how do I get in touch with this consultant that assist??>>>>

[@Annis-co7vu]

STEPHANIE KOPP MEEKS, that's whom i work with look her

[@Madlyn55]

Thanks for these recommendations.....,,,

[@Lion_McLionhead]

So different than 20 years ago, when you were supposed to be out of the stock market by age 60 & making money on interest. Now, the stock market is your golden goose.

[@baxakk7374]

This can't keep going on. The growth of 12% every year is insane if you compound it.

[@motoguy3574]

@@baxakk7374 You are so right. This house of cards will come down and lot of people will lose a lot of money.

[@darcyfox6674]

Add up your current expenses while working and then subtract the additional cost of driving to work, lunches and clothing to estimate what you will need to retire. If you are near retirement this is easier to do. We do not have 500k and we have enough sources of income from social security and pension to make ends meet.

[@sethbender2863]

I did the RIQ and honestly felt it to be a little under on questions. Like it told me to pick one, travel, or relaxation, or giving. Etc. but I want to relax and travel 2 or 3 times a year. Not every month. So it’s a little hard to make that adjustment but it is a good tool to start out with.

[@makethepenniescount]

I did wonder about that too. There should be a way to select more than one. I want them all! 😊

[@BRunner12]

R IQ tool is just about collecting personal information to sell you something

[@maryrobby7134]

This is the best concept 👏

[@schawnettarobinson8584]

This is an excellent question.

[@francescadelight]

I regard myself a lucky woman, I retired at 62 with very little saved up due to bad planning & foresight. Good stewardship and good luck has grown it to about 750K. I told my money guy, “I don’t know if I’m retiring for good, but I’m retiring for now.” Haven’t looked back since.

[@callumfrank]

Health insurance is still a big issue for seniors. How have you handled health insurance ?

[@francescadelight]

@@callumfrank Medicare 🤷🏻

[@callumfrank]

@@francescadelight okay thanks

[@weicaihon]

What type of money guy do you use Franca? ( I am new to this situation )

[@francescadelight]

@@weicaihon I started out with 'Klaus Cassius'. A while ago, my guy there went out on his own. I got very lucky, & consider him a good friend, but interview several, make sure the one you settle on is a fiduciary and not a glorified salesman. Have a list of specific questions to be answered.

[@fhuber7507]

When your guaranteed income exceeds your desired retirement lifestyle costs.|That is when you have enough.

[@parler8698]

Yeah. Keep it simple.

[@Tailong]

Holy I really need to learn which mutual funds Dave is talking about that keep beating the market year after year, those returns are insane....

[@The3baddogz]

Thank you!

[@drunclecookie216]

based on my current yearly expenses I would need at a minimum $1 million to retire comfortably... my parents retired in their early 60's with only 700k and travelled the world, went on cruises, and built a big house in florida... now they only have 100k left and aren't even 70 yet

[@acruzro95]

Thats because they didnt use the income generated by the mutual fund but the base itself. They shot the goose laying the golden eggs

[@manwork6545]

Exactly. Instead of burning this money they should use it to generate incomes...(mutual funds for ex but not only. all depends on the people's risk adversity rate)

[@wjb4578]

@@acruzro95 Aha, they shot, plucked, fried, and devoured their goose. And at $700k at retirement it sounds like only one of them was working. Good thing they have a nice house in Florida but I think the commenter will be fronting their parents' lifestyle when they go broke in a few years and/or one of them will have to get back to work

[@feartheturtle9618]

The retirement money needed is always dependent upon your expenses. So there is no magic number until you can estimate your yearly expenses.

[@robertharrelson5024]

There are many variables.

[@karenwallace5855]

I totally agree! And the moment someone asks how much do I need, the next question should be well how much do you need to live on? Sound pretty elementary but they conveniently leave that out and try to make it all complicated. It isn't that complicated.

[@captainfailtv]

Retirement is self choice. Don't look at age. Some people retire then go back to work after a few years off just cause they're bored.

[@hasnaat3026]

@Evop Fx ye tgats y it would be great to do something u enjoy

[@mt.n5427]

Remember to budget for healthcare cost. It’s insanely expensive to go into a long term care facility or hire help at home..

[@meatball4409]

Yeah in America sure, but in Canada our Healthcare is free 😉

[@DandyFinance]

Stock market gives on average 7% annual return. So that is your yearly spending. Check how much expenses you have in a year and out of it you will get how big the goose needs to be. If you want to be on safe side, leave 3% towards inflation. That gets 4% of the goose growth than can be considered as your expenses.

[@RichardWalls]

It's going to depend on alot of factors (lifestyle for one as Chris says) but i think in general people underestimate how much it takes to retire. Good to max out all retirement accounts for starters, but should have more in other investment accounts. Also depends when they want to retire - if it's many decades from now, have to consider inflation so that the final amount needed is very different from those retiring today.

[@makethepenniescount]

Absolutely! I agree entirely. It’s fine to have a ball park figure, but it’s assuming your situation doesn’t change very much until you retire. I think the pandemic has shown that nothing is guaranteed and you could find yourself in a pickle through no fault of your own.

[@bighands69]

DIvidend paying stocks can also provide an income that could be used. It does not have to be an extremely large number a couple of thousand dollars every quarter could go a long way.

[@stephenlyons8717]

That dude should go in to radio. What a voice

[@tinlidtoo6615]

Staying healthy is more important than any thing else. Three million in the bank is meaningless to someone who died of heart disease at 65.

[@waterheaterservices]

True, but that million could feed a lot of hawngry kids.

[@mannyjeanpierre4062]

Health is wealth!!!!

[@jaymzbristol9057]

You're 100% right on that one

[@chrisf1600]

Note to self : don't catch cancer

[@God.Almighty]

still better to die rich than to die broke. at least you leave something behind for your kids or for charity.

[@myaparker]

Thanks for the great content im 13 Years Old and you inspired me to create a channel on finance and entrepreneurship as a teen. Thank You so much and thanks for always giving me inspiration and knowledge to secure and fulfill my dreams as a Teenager.

[@waterheaterservices]

Hard work brings prosperity

[@emilsisorganizandote2688]

God bless you!!!

[@BrendanEvan]

Planning on using the 4% rule principles but taking it more conservatively to the 3.3-3.5% rule. It is more conservative than what Dave specifies here because he’s talking about spending the entirety of the annual return.

[@motoguy3574]

What does Dave recommend you spend in retirement when your investments lose money in a year?

[@JKinLVN]

How about using a 7% rule? The stock market goes up on average 10% per year, so only taking out 7% should be ok. For people that are scared, 4-5%.

[@July.4.1776]

Wow good to see Chris I still have the coin he gave me! 👍👍

[@jeanlenor1858]

When your monthly cash flow exceeds your living expenses, you can leave the rat race. I don't like the word "retire". I'm 35 and I will finish up an 8 unit apartment building which will produce about 5k/month. That will be 7k/month total for me with other rentals. I have no mortgages on them. I can then stop driving for Uber and doordash. I won't be sitting home at 35 but will find other things to do.

[@thecatnextdoor12]

TheCoffeeNut711 True. All those FIRE KZbinrs claiming they are retired while doing KZbin full time.

[@Sinful_Survivor]

I work at a Warehouse and I do Doordash on the weekends lol Making about 4k a month. Right behind you Jean ;)

[@lindalentz5093]

Congratulations

[@jeanlenor1858]

@@Sinful_Survivor You need to start looking into cheap rentals so you can get out of the rat race.

[@realestateinvestor9169]

When did u started investing in real estate?

[@Soljarag5]

That RIQ website is useless... Just a ploy to get your email address

[@thecatnextdoor12]

Of course, I knew that as soon as I heard Hogan saying to go to his website.

[@ChrisMFlorida]

I've used it.. gave me a decent number but it's very vague on the information it provides.

[@Soljarag5]

Chris Vandernaald, exactly.... Useless.... I bet it took less than 5 hours to program....

[@taylormoak2002]

I mean it provides VERY ballpark numbers. But for free thats a solid tool. Of course its an upsell. No shame in that game.

[@Soljarag5]

Sponge Bob, the issue isn't the email .... The issue is there are plenty of better ones online for free, that don't even require an email

[@princesslamour1985]

Awesome. Im 35 I want to retire at 55. I started at 34 saving 20% of $100k salary.401k maxed and roth maxed and personal brokerage. Good to hear I will have more than enough.

[@tomdrummy4984]

2:45. Exactly !!!!!!! Very simple

[@BadMannerKorea]

Except he’s wrong. You don’t earn 300k on 3 million.

[@bright9677]

Depends on life style because someone might spend a million a year while someone might spend 100k a year

[@StFreeUSA]

Simply put, enough money for retirement is enough to withdraw earnings to support your current life style without touching the principle. This is true for everyone. If you decide to dilute the principle, then the 2 - 4% rule would apply over a 30 - 40 year period.

[@DD-vk5yy]

If the majority of people pull 10% out of their retirement nest egg each year they will quickly run out of money.

[@miketheyunggod2534]

Pension.

[@novenebainter6866]

Thanks

[@kage-fm]

left dude has an amazing radio voice

[@dianer8881]

If you are unable to save enough, calculate the fact that you'll need to spend the principle as well. Thereafter, apply for welfare, fuel assistance, food stamps, rental assistance, property tax relief, a reverse mortgage, etc. Some people have no choice. It's very difficult to keep up with inflation. Learn to go without.

[@JoeGarofaloII]

Dave: "Don't shoot the goose" Me: Got it! *starts unloading 3" shells and taking camo off in the blind*

[@gsquared2394]

Well, you tried Joe, and that’s what counts.

[@sallyjones7596]

The person that called in with this question knows they are doing just fine.

[@LaGuera1313]

Mr. Ramsey I will like to see a movie about your life or a documentary at list 😁

[@Jason-uw3wn]

You can retire when you can sustain all your bills plus some with just interest off your retirement. Goal is to live off the interest of your retirements.

[@waynemiller6070]

That's it right there, in a nutshell.

[@ariefraiser140]

The amount most financial advisers recommend you pull out is anywhere from 3.5% to 5% depending on your age. I've never seen anyone financial advisor suggest 8-10% withdrawals less you deplete your principle and you don't leave any room to account for inflation.

[@BadMannerKorea]

Yeah I have no idea how he got 300k. You make around 35k off of 1 million without dipping into the 1 million.

[@Bob-yh7ir]

@@BadMannerKorea I make lot more than that off mine, but I keep most in aggressive and growth. You are of the mindset that you pull off every month or quarter and you should have a cash buffer of 2 to 3+ years so you only take off on market upswings and gains. And those gains have been tremendous over the past 10 years and allow you to backfeed your cash for another 3 to 4 years or more... :)

[@BadMannerKorea]

Bob You will most likely dip into your principle over the years if you continue to withdraw that much. The Trinity study goes over this. And also high wealth accounts that are managed by brokerages like Morgan Stanley also suggest a 3.5-4.5% rate. The reason it is 4% is due to inflation, the years in which you will be withdrawing, and market fluctuations.

[@Bob-yh7ir]

@@BadMannerKorea I understand where you are coming from and the conventional wisdom on this, but we choose to do differently than the "status quo". I will not need to pull money off the accounts for long periods of time. With 4 + years of household expenses in cash, We will withdraw only when there are gains and backfeed the cash accounts during those nice little upticks in the markets, which as of now and certainly in the future as those portfolios grow to new heights, will be even more gains than what I have been seeing. Our yearly household expenses in retirement will be around 37,000 without trips. 47 to 50 with multiple cruises or international trips. So in any given quarter or year when gains will be 200K, 300K. Pull 100K or 150K off, Voila. 2 to 3 years more living expenses in cash. Also, when we get to claim SS and most likely a bit early, it will be icing on the cake !! Pocket change for anything we want to do and will cover about 70% of our household expenses ( minus the big trips ) . That will then mean we need to pull even less of the gains when we do. People who try to live off the 4 or 5 % return yearly without any cash to cover the downturns just seems like flawed thinking to me. I have been running this scenario side by side with our current budget and tracking the investments monthly over 20 years to "mock Play" what that would be like in retirement and at some point in our mid 60s or so, I will not be able to spend all the money we will me making. I mean, We can and probably will want to start and pull down on some principle in the larger accounts before getting to the 72 RMDs because then, we will be forced to pull out way more than we need and pay the extra taxes, etc.

[@motoguy3574]

@@BadMannerKorea Need to get out of debt and build an emergency fund? Use Dave. Need to invest and plan for retirement? Don't use Dave.

[@GTRrocker84]

These projections are nuts. People are spending way too much money to need multiple millions in retirement

[@lbruegge]

@2:39, planning for an 7-8% draw from your principal in retirement is completely misguided. Look up monte carlo simulators and plug in the numbers, save is 4% draw down. That means even if you make 10% in a year, you only take 4%, because another year you will be down, so if you took the 8% the year before, you are way over budget

[@dougm1985]

i hear these crazy numbers, 3 mil. Most don't need more than 500k to live a good retirement. i'm hoping to have 1 mil. , house paid. bills paid . travel a little , and just live a simple life. no big boat, fancy car , giant house. just not needed.

[@andrewlucky1038]

You can actually get that when you work with an expert trader in forex and Stock who would guarantee your Profit when he handles your trades. By that you can attain a great height towards achieving you dream. I recommend you try

[@andrewlucky1038]

Andycali924 @ yahoo. com

[@thehomeless_trucker]

I want to have the ability tolive on more than 20k annually.. so I will definitely not stop at 500k..

[@TheRandomeez]

You have to consider inflation. Don't forget that.

[@dougm1985]

@@thehomeless_trucker are you forgetting the money you will be getting from SS?

[@dryoutube]

Spend humble!

[@jordanaubrey-realestateinv334]

You have to look at expenses to look at your money. But get your some real estate pay it off 10 house paid for will cash flow alot

[@randyboss1221]

Chis Hogan is awesome! 👍🏻

[@s.flanders]

No idea what kind of math gets Dave to ~$8 million from saving 15% of $60k for 40 years.

[@CarbsLVR]

Starting at $50k, saving $750/mo at 10% return for 40 years = $6.4M.

[@s.flanders]

@@CarbsLVR Ah ok, I see. $50k head start is not insignificant, as that would take a few years to save up at the same rate. Starting with 0 and saving $750/mo would only get you $4.1 mil 40 years later. And I guess 10% return is Dave's go-to, but perhaps a tad optimistic for such a long time horizon.

[@joshallen8668]

He is calculating it as contributing $750/month with 12% annual returns and monthly compounding. That gives about $8.8M. Annual compounding only gives $6.5M. Long-term historical annual returns of the S&P500 is 10%-11%. Annual compounding at 10% only gives about $4M.

[@anythinggoodproducts]

Depends on how you live and how badly your health becomes

[@makethepenniescount]

Absolutely!

[@darylfoster7944]

Medicare covers 80% of major expenses. Even if you had a half million dollar medical bill, you would only pay $100k out of pocket. That's easily affordable if you have $3M.

[@KP-us1ld]

Only if you live in the US where health care is not guaranteed.

[@darylfoster7944]

@@KP-us1ld Health care isn't guaranteed anywhere. You're referring to medical insurance, which isn't the same thing. Having insurance doesn't mean you have access to care. Price controlled systems always have shortages and rationing.

[@KP-us1ld]

@@darylfoster7944 my relatives in Europe would beg to differ.

[@janayialove4414]

Miss Chris wish he still worked with Ramsey!

[@rina99910]

Interesting….so Dave does know how to NOT be rude by interrupting people🤔 good job 👍🏽👍🏽

[@jackjack4412]

Look at the size difference. When one gorilla is smaller than the other, the typical dynamic is respect.

[@greene363]

I ain't waiting till 70, Im Done at no later than 55

[@dougm1985]

i wish. 62 and i'm out

[@charlieodom9107]

At 55, you'll need to have a non qualified account to span the time between retiring age and withdrawal age, unless you intend to take the penalty for early withdrawal.

[@matthewkuzma1548]

Research 72t

[@arizonagal4966]

Good for you

[@ZCAR355]

Charlie Odom Are you aware of the rule of 55?

[@davidfoulk3078]

Do like I did....walk in and say to yourself....”self, I’m done” and turn right around and walkout, going to the liquor store at 9:00AM like I did is completely optional and totally up to you!

[@lydiaanderson582]

@Hello David how are you doing?

[@genxx2724]

You should sprite a movie!

[@rodrigok1220]

I’ve done what he’s said and have no where near 8 million. Granted, I’m only 52, but in next 18 years, I’ll still have no where near 8 million dollars. He needs to live in reality.

[@blueboy3303]

I would research the mutual funds before you purchase them. Not all fund's manger for mutual funds do their due diligence. I found this out the way and when my father pasted my father had some poor performing funds.

[@justinacase2623]

Absolutely! I told my guy, I follow Dave let's start there! So no alpaca farms in Belize for investments please.

[@PositiveMommaLife]

Working on call only at 50. Four years to go!!!!

[@cryptoflippodcast]

*Produce cashflowing assets* Rather than Thinking about a retirement lump sum

[@triad6425]

True, but it is good to have a goal to hit. Ie I want to have 6k/month of cash flowing assets when I hit retirement

[@dete503]

Cringe

[@ariefraiser140]

I want the lump sum. Besides....a huge lump sum invested in the market and other investments like REITs are cash flowing assets.

[@bransoneubanks]

Please Google "Safe Withdrawal Rate Series" by ERN. The 4% Rule is NOT a rule but rather a rule of thumb. Historical simulations point to a fail-safe withdrawal rate closer to 3.25% (30.8x annual expenses).

[@bransoneubanks]

@reshi p I don't care what you do. By all means, withdraw 4% or even 8% as suggested in this video. If you read the series I suggested then you may change your tune. But you're not going to do that and I'm not going to withdraw 4%.

[@MegaDiddlemaus]

It depends on each lifestyle. If you are spending an average € 5,000 monthly then do your own calculation.

[@Thurgor_Supreme]

If your dividends can pay your monthly bills, that's probably good enough. Go ahead and call it a day.

[@joefunk76]

Dave’s return estimates are consistently too aggressive. 10% per annum? Too aggressive for an average. Also leaves nothing extra to account for inflation.

[@charlieodom9107]

8-10% is NOT aggressive. That is proven to be sustainable. What he doesn't say here is there will be a few times where you won't have 10%. If you limit yourself to 10%, and not spend it all, then you'll have some in savings to use when you can't withdraw that 10% on those few occasions.

[@Teamshmo]

Also he doesn't mention tax when you take the money out.

[@dontworry1568]

Im up 13% so far this year

[@justinacase2623]

@@Teamshmo ahh ole uncle Sam. The idea when one retires is your income goes to zero! And only take out minimum amounts to live on, not go crazy. So ones tax rate will drop significantly.

[@joefunk76]

Don't Worry I’ve been up more than 30% annually in some recent years. I’m talking about an average return over a lifetime. This includes recessions and depressions. 8% is conservative, at best. 10% is aggressive. You cannot responsibly plan your retirement on a 10% assumption. Assume 8% and consider any excess of that to be gravy.

[@billybobjohnroane1692]

When I'm tried! I'm retired.

[@angstfree2008]

I think the calculator is under by 25-35%. Plan to save more, especially if retiring in the next 10 years or so.

[@tomy]

Just use the 4% rule.. Decide how much you'll need yearly for the lifestyle you want to live then make sure it's 4% or less of your nest egg

[@triad6425]

THANK YOU, Idk why they just don't say 25x your income. Considering they always do the math and discuss ratios I am always surprised by this non-answer.

[@ariefraiser140]

@@triad6425 It's 25x annual expenses not income. Most people who are saving enough to retire by definition means they're not living on 100% of their income. If you're putting away 15-25% of your income for retirement that means you've been living on about 75-85% of your income and that's what you need to base your calculations on.

[@Green__one]

@@ariefraiser140 Many professionals quote 70-80% of your income, but you're right, they're looking at the wrong thing. Always look at expenses, not income, that's the only relevant number. I think though that the reason professionals talk based on income, rather than expenses, is that most people know how much they make (and if they don't they can wait for the tax slip at the end of the year which tells them!) but many people have no clue what they actually spend. It's never a good habit to be clueless about your expenses, but for far too many people that really is the case.

[@willieboy3011]

He is planning on having $3 million by 62, and he is worried about not having enough? Some of these callers are terribly insecure. This is a psychological problem, not a financial one.

[@Teamshmo]

Depends where he lives. I'm in Toronto and the cheapest house today is $1 million. In 30yrs the same house will probably be about $5 million. The price of a single lime here is $1 where a cheap area a bag of them is $1. If you're in an expensive area you need a lot more than you think to survive.

[@willieboy3011]

@@Teamshmo My house cost

[@joefunk76]

$3m is not what it used to be, which is “rich.” $3m will let you retire with an upper middle class lifestyle somewhere cheap and with a subsistence or perhaps middle class lifestyle in any second tier city. Forget about cities like NYC/SF/LA - it will buy you a subsistence level of retirement at best. The real estate prices, tax levels, and general costs of every day goods and services will leave you high and dry. All of this assumes a low dividend/withdrawal rate. If you want to be risky and invest in stocks that pay really high dividends, that could work, but that involves taking undesirable levels of risk.

[@willieboy3011]

@@joefunk76 You are absolutely nuts if you think $3,000,000 is subsistence living. You have no idea about what you are speaking about. The median income for the average working American is

[@Teamshmo]

@@willieboy3011 he is saying the same as what I was saying. Having $3 million is a lot, but only if you live in a regular area. Very expensive areas you still have to watch your spending with $3 million. It sounds insane, but it is true. I needed a new roof and the people wanted $20k. That same roof in a regular area would be $5k. Expensive areas cost a lot for everything.

[@michaelferrarini4832]

Chris Hogans voice is made for radio

[@laurah6381]

What if you have a hubby who doesn’t want to save because we will have 3 pensions to live on in retirement? One is military that will be 2,000. The other two will be almost 4,000 combined. We have no debt and 100,000 in the bank. About 7 years from retirement, but will be drawing the military pension in a year.

[@thinkforyourself9334]

Y'all will be fine then..Most people won't have anywhere close to do that coming in monthly.

[@Daniel-from-Texas]

The famous Trinity Study says to plan on withdrawing 4% in order to never touch the principle. 8-10% is ridiculous lol

[@BusterDarcy]

Not if you’re making 10% a year at the same time, which you should be

[@John3.36]

"And he spake a parable unto them, saying, The ground of a certain rich man brought forth plentifully: And he thought within himself, saying, What shall I do, because I have no room where to bestow my fruits? And he said, This will I do: I will pull down my barns, and build greater; and there will I bestow all my fruits and my goods. And I will say to my soul, Soul, thou hast much goods laid up for many years; take thine ease, eat, drink, and be merry. But God said unto him, Thou fool, this night thy soul shall be required of thee: then whose shall those things be, which thou hast provided? So is he that layeth up treasure for himself, and is not rich toward God. And he said unto his disciples, Therefore I say unto you, Take no thought for your life, what ye shall eat; neither for the body, what ye shall put on. The life is more than meat, and the body is more than raiment. Consider the ravens: for they neither sow nor reap; which neither have storehouse nor barn; and God feedeth them: how much more are ye better than the fowls? And which of you with taking thought can add to his stature one cubit? If ye then be not able to do that thing which is least, why take ye thought for the rest? Consider the lilies how they grow: they toil not, they spin not; and yet I say unto you, that Solomon in all his glory was not arrayed like one of these. If then God so clothe the grass, which is today in the field, and tomorrow is cast into the oven; how much more will he clothe you, O ye of little faith? And seek not ye what ye shall eat, or what ye shall drink, neither be ye of doubtful mind. For all these things do the nations of the world seek after: and your Father knoweth that ye have need of these things. But rather seek ye the kingdom of God; and all these things shall be added unto you. " - Luke 12:16-31 KJV

[@troycarpenter3675]

Accept Christ as your savior, THEN save responsibly.

[@susandemuth8060]

My husband has a hard time enjoying life because he worries to much about if we have enough to live on when he retires. We have zero debt. All we talk about is ssi, health insurance and investments. I'm happy we're going to be okay in retirement but when do we get to enjoy life instead of worrying about life?

[@wjb4578]

I assume you don't work from the statement "when *he* retires". I'd say be grateful you have a partner that is considerate enough to be thinking of ways for you both to be comfortable later in life. If his lack of life enjoyment worries you, then perhaps you should get a job to lessen his burden of caring for the both of you.

[@DrSchor]

tell your husband to read dale carnegie

[@privateprivate8366]

I think they’d better keep coroners on staff, at most workplaces.

[@andyarteaga2649]

After taxes, asset management fees, 10 percent consistently idk where you get that. Dame Ramsey over promises alot

[@Matzes]

Asset management fees? For simple etf/index funds? No need. Taxes yes, ramsay seems to forget about them always

[@ThinkMoneyBenny]

3M is not enough for retirement? must be living in the Hollywood Hills

[@lt.generalofsalt4273]

I could make 3 million do backflips ..... currently at 100g cash and 209g in investments... got out of jail 3 years ago with nothing

[@Big-Government-Is-The-Problem]

@@lt.generalofsalt4273 so you make like 90-100k post tax? what do you do as a job?

[@lt.generalofsalt4273]

BIG GOVERNMENT IS THE ISSUE AND NOT THE SOLUTION plumber

[@lt.generalofsalt4273]

BIG GOVERNMENT IS THE ISSUE AND NOT THE SOLUTION but I also own a landscape company

[@Big-Government-Is-The-Problem]

@@lt.generalofsalt4273 nice, congrats on your transformation. i figured you were probably self employed. thats certainly the best way to get a great income.

[@olegsacha9695]

I'm 48, sad to say I made terrible money decisions growing up which I'm presently paying for, been dedicating every waking hours towards my retirement and I'd really love to retire to Portugal with atleast $3million by, the market up and down is not helping at all.

[@bohemianchic638]

Reinvest dividends to buy more shares to get higher returns from ETF’s and index funds

[@Linda-bj3bb]

Oh my word Chris Hogan your voice is so masculine.

[@waterheaterservices]

I am an expert on this subject. It depends on the cost of the tires.

[@angryarkie1642]

At a ten percent return and assuming there is no employer match and salary increases keep up with average inflation.. that is about 5.1 million in the timeframe with that salary and contribution.

[@dontworry1568]

RETIREMENT QUESTION!!!!! HELP!!!! My wife has a 401K ROTH. Her employer matches her contributions into the ROTH account and on her paystub it say the employer match is PRETAX. When do we pay the taxes on the employer match (assuming it has to be after tax for ROTH)?