How Much Can I Expect To Spend In Retirement with a $2.1 Million Portfolio?

[@VishalFaucet]

Planning ahead can really minimize taxes! I’ve been in the crypto/stock markets for half a year now, and it’s been a game changer. I was able to reinvest my RMD strategically, and I’m now pulling in about $25k a week, despite doing very little trading myself. It’s a nice cushion against financial stress. Best of luck with your RMD decisions!

[@RamzanBarysheva]

25k a week? Amazing! how did you get started?

[@VishalFaucet]

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

[@VishalFaucet]

the session was secure and a supportive way to improve your trading skills while earning, the best part is there's no upfront payment required at all

[@StevieSmithO2]

Honestly I really need help learning to trade. Seeing my portfolio low makes me very sad.

[@VishalFaucet]

I suggest consulting with Dave for guidance, This way you can get strategies designed to address your unique long/short-term goals

[@ddenuci]

Enjoyed the video. A few comments/questions: 1) At 17:00 , the inflow/outflow graph is presented. You would expect the outflows to increase each year because of inflation. The dip in the year 2028 is due mostly to the mortgage being paid off, so that dip is understandable. But why is there a dip in the year ~2044 ? 2) Even in those scenarios where they appear to run out of assets, such as what appears to happen toward the very end of the graph shown at 16:25 , they would still have their home. At $1.2M in today's value, that house would be worth a considerable amount more in the 2050's. So in the unlikely scenario they were in need of liquid assets, they could always sell their home and downsize (or use the reverse mortgage).

[@onedegreeadvisors]

Appreciate you watching! The outflows do vary because of several moving parts. They had wanted the extra travel budget from 65-80, so that increased budget for travel drops off in 2044 (and they would then expect lower travel expenses, and pay from normal cash flow as needed). In other years, income taxes vary. Like we referred to in the video, broad tax projections are shown in this plan. In other videos we often refer to that "tax valley" (low tax years) aim to optimize through such strategies as Roth conversions, harvesting capital gains or just taking income from IRAs within the lower tax brackets. Alex talks about that in this video around the 11:00 mark. [kzbin.info/www/bejne/i5zHnJVrnbdqmK8si=arkE58WRe3IYWtqs]. Yes, the home equity provides a nice backup!

[@scottbaker9066]

That projected rate of return range of 6% at 16:10 to 7% and then briefly to 4.5% really shows that the 20 years from 65 to 85 need to be INVESTED for results, not locked into a CD for security. How early could they retire if they invested in equities ie 60% VOO and 30% QQQM which would produce returns of about 10 or 12%

[@leonadams1053]

Totally agree. Pre-retirement investing way too low risk. If they want to retire early or more comfortably, charitable giving is way too high.

[@onedegreeadvisors]

Appreciate you watching!

[@METVWETV]

​@@onedegreeadvisors I think the OP was asking you a question??

[@METVWETV]

​@@leonadams1053 Charitable giving is what YOU want it to be! You cannot tell others that they are giving too much, especially since you likely don't give at all, which would explain your conviction

[@leonadams1053]

@@METVWETV you know nothing

[@biskit7]

You gotta add the $2,000 a month lease on a beautiful Mercedes Benz.... Now that's a great retirement :)

[@debilish8451]

I’d like to see how wealth management fees play into plan. I think very valuable, but it doesn’t seem the approximate 1% is ever taken into consideration when I watch retirement videos. If you go by 4% rule, isn’t it really 3%?

[@rickarmstrong3944]

I have always thought the same. It is only logical if 1% is being taken out as fees that only leaves 3%.

[@davJanko8052]

Or is it really 5%, you get 4% and they 1%.

[@onedegreeadvisors]

Thanks for watching! We factor in assumptions such as fees, inflation, rates or return, taxes, etc. but again, they are assumptions, which is why a financial plan should be monitored and adjusted. The 4% w/d rate is a solid place to start, but Alex talks about the 4% rule vs. a dynamic guardrails based withdrawal approach in this video: kzbin.info/www/bejne/i5zHnJVrnbdqmK8si=LFxyy0cLxgjWPyob

[@METVWETV]

​@@onedegreeadvisors I LOVE GAURDRAILS!! I'm a fan of Hebeler myself, who doesn't seem to get enough love IMO

[@MichaelHallGray]

What is the point in identifying the value of the home? It is an asset. Are you thinking of a reverse mortgage down the line? So what if it is $1million or $2 million or $5 million?

[@tedlaurvik3765]

Did you include IRMAA for the first two years of Peter’s Medicare coverage?

[@MichaelToub]

Great info and great production values (annotations, zooms, animations.) !!! Do you offer hourly-fee-only services?

[@onedegreeadvisors]

Thanks! Michael, you can visit our GET STARTED webpage: onedegreeadvisors.com/getstarted/ - which has a few questions to help ensure we can help with what you would like. Currently, we only work with people over the long-term through a consistent and ongoing process due to our capacity and how we do our best and most thorough work. Appreciate you watching!

[@Bluebell-n2q]

Wouldn't it be better to do the charitable giving from a traditional IRA?

[@onedegreeadvisors]

That will be a good strategy for them once eligible at age 70 1/2. Not quite there yet! Thanks for watching!

[@hejiranyc]

…or they could sell the house, move out of California and retire TODAY.

[@ddenuci]

The thing about selling houses and moving is that it's expensive. As a seller, you have real estate commission expenses, lawyer's fees, and much more. And if you're selling your house, you still need a place to live. So are you suggesting buying a lower cost house in another state? Now you have all sorts of expenses associated with buying, including the lawyers again, and a bunch of expenses the banks may you go through. BTW, the property taxes shown on line 40 at 5:57 seems incredibly low. A $1.2M house in most sections of NY/NJ would be at least 3 and maybe 4 times that amount. So if you're moving from CA, avoid NJ/NY if you're trying to reduce your living expenses. And probably look at one of the nine states, as apparently many Californians have done, with no income tax. The other issue with moving out of state is separating from family, which is shown at 2:26 as being one of this couple's priorities in retirement.

[@stuartclubb4302]

@@ddenuci Yup - this is a "not unusual" example of a moderately high income Californian couple who bought property a long time ago and are now "locked" to their low property tax because of Prop 13. Prop 13 mandates that property taxes can be no more than 1% of the assessed market price at purchase (plus voter measures) and that the assessed value can not increase by more than 2% per year. Naturally in a market like CA, this means the assessed value rapidly falls below the assessed value and people who have lived there for decades are sitting quite comfortably paying little in the way of "their fair share" for the government services their taxes pay for. Somebody could pay $1.2M for an identical home next door and easily pay triple.

[@ddenuci]

@@stuartclubb4302 Thanks for the explanation.

[@onedegreeadvisors]

Many people do move out of CA in retirement to take their equity and pay cash for a new home elsewhere, often with money to spare. We work with retirees across the states often due to this. Thanks for watching!

[@dianeclark-sutton8430]

All my family is in California, so we have no plans to move. It's not always about money.

[@samuelwilliams7331]

Isn't the 401K max 23K in 2024?

[@wyzyguy726]

Over 50+ .. 30,500 this year

[@FIRED13]

​​@@wyzyguy726and 50+ also get a bump up in annual IRA contribution limits as well

[@Bobventk]

3.7% inflation??? My god that’s like 85% higher than the feds mandate 🤣

[@jasonw8497]

both videos I have seen from you has the client having *more money at the end of plan. (nominal) why not up the withdraw rate? If there's anything we've learned is that people spend less age 75+

[@onedegreeadvisors]

Hi Jason, Good question. Short answer is the projection depends on person's unique financials, their spending goals and how aggressive or conservative they want to be. One may want a bigger cushion and another to aim to die with zero. This video here helps break down the dynamic withdrawal method we use to better illustrate that income approach: kzbin.info/www/bejne/i5zHnJVrnbdqmK8si=gklLVROm5VBUg06l. Thanks for watching!

[@jasonw8497]

@@onedegreeadvisors Gotcha, sounds like legacy was important to those clients. If you want a Case study for a video, I'm a inuque one. Focused on FIRE for the last 15 years. Now have too much in 401k/IRA and life pressures have us wanting to pull it.