How’s Life Different (better?). Retiring With $500k, $1M or $5M

[@Mathew-zs3nz]

My company paid a consultant to provide retirement classes when I was 24 and just started saving for retirement. The class was called "The Kids Table" and basically their advice was go with a target retirement fund that aligned with your 65th birthday. That was 20 years ago. It is the only thing I've ever invested in. How else can I better my finance?

[@DhanaPayar]

target date funds have made me a multimillionaire. i also watched them drop 40% in a very short time and take a long time to recover.

[@Olivia-z5c]

Agreed, when it comes time to retirement planning, following the steps of a well experienced advisor did the trick for me in barely 5 years, turned my $500k capital to 5 figure monthly dividends. If you want to keep it very safe, then Vanguard TDF may be for you.

[@berniceburgos-]

this is superb! Is there a problem sharing details of your financial advisor ? I have my money in a Roth, and I am trying to diversify my investment for better growth

[@Olivia-z5c]

Jessica Lee Horst is the licensed advisor I use. Just google the name and you'd find basic info. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.

[@Agatha.wayne0]

thanks for putting this out, curiously inputted Katherine Nance Dietz on the web, spotted her consulting page and was able to schedule a call session, she actually shows a great deal of expertise

[@chuck_in_socal]

I read this somewhere, not sure where. It doesn't help much, but it's true: You may have a lot of problems, but if you develop a health problem you only have one problem. Stay fit!

[@sheltonmcmillian677]

I can tell you from experience those words are true

[@TonyCuratolo]

Confucius! A healthy man wants a thousand things; a sick man wants only one.

[@james1000]

The more dramatic way to say it is: “A healthy man has many wishes; a sick man only one”

[@ColdRunnerGWN]

@@james1000 - I haven't heard this one before, but I really like it.

[@disengagedsage737]

@@james1000 thats a quote from the Dalai Lama

[@PeggyCrane-l7j]

I'm so happy I made productive decisions about my finances that changed my life forever. I'm a single mother living in Melbourne Australia, bought my second house in August and hoping to retire next year at 43 if things keep going smoothly for me..

[@RLoger87]

Congratulations dear. You're really doing well for yourself, I'm 48 and my financial life is in a mess. Any great tips would really go a long way in shaping my life. I want to buy my own house, that's really a big flex.

[@KurtOsinski]

To be honest, investing rightly today can save you a whole lot of stress in the nearest future.

[@StephenJonas-k5d]

Investing in many source of income that are independent of government paychecks is the prudent thing that everyone should be thinking about right now, especially given the global economic crisis. Good assets and digital currencies are still good investment at this time.

[@JenniferCochran-w5e]

This is superb! Information, as a noob it gets quite difficult to handle all of this, and staying informed is a major cause, how do you go about this are you a pro investor?

[@PeggyCrane-l7j]

All thanks to Alesia Haas with her mind-blowing advice, at least I can afford a good home and also have to retire early.

[@KiwiKela]

It’s recommended to save at least 20% 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 that percentage can ensure that you have enough money to retire comfortably. You can take advantage of compound interest and potentially grow your retirement savings over time.

[@TravelEurope-v1u]

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 positive financial outcome.

[@HarveyHeckland]

This is precisely why I like having a Financial Advisor guide my day-to-day market decisions; with their extensive knowledge of the market dynamics in play, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns. I’ve been utilizing a financial strategist for over a year now and my portfolio has made a killing.

[@AdvikKumar-fi8nr]

I appreciate the implementation of ideas and strategies that result to that sort of progress in the stock market. Being heavily liquid, I’ll rather not reinvent the wheel, thus the search for a reputable financial advisor.

[@BigCheckerC]

@@HarveyHecklandinsightful

[@IanKemp-k4n]

This aligns perfectly with my interest in diversifying my financial portfolio. Could you share the contact information of your financial advisor for further guidance.

[@music-jj2pl]

Allen saved up $500k over 30 years while raising 2 kids and paying for 1/2 their college tuition on 50k/year? This man needs a youtube channel.

[@bobb7918]

They both worked !!!!

[@Jimmyjackfunk433]

Try living within your means. It can be done…

[@Japplesnap]

Invested, not saved. There's a big difference.

[@rarelycares8416]

My first job from age 20 to 28 started at $10k/yr maxed out at about $32k/yr. When I left that job I had $50k in the 401k. Even if I never saved another dime I would have $500k now...but I did continue to save and continued to increase my savings rate. Retired at 55 this year with around $3 million in retirement investments (my wife has another $2 million). Stop complaining and start doing, it's not difficult but it seems to be very hard for most people.

[@poupeth1]

​@@rarelycares8416Congratulations to you. I hope to be in your position one day.

[@alanm500]

We will be retiring in 7 years with about 2M in retirement accounts, each with a pension and about 4-5k/mo in rental income. We’re looking forward to doing some traveling and diving into our hobbies. Thanks for this video!

[@NoRegertsHere]

‘Die with zero’ is an excellent book

[@JohhGaudelli]

How do people manage, manage in retirement since 401ks are nothing to write home about? My 800k turned to 250k in no time. I'm 54, will I work till God calls me?I

[@robertharry6971]

I worked until 62, I was at the top of my income game, liked my work, and we could both go on Medicare. I ALMOST fell into the “only one more year” trap.

[@JohhGaudelli]

How did you apportion saving, investments and expenditure?

[@robertharry6971]

Finances: 35% in 5.25% secure, 40% stocks, 5% cash, 10% gold/silver, 5% Series I Savings Bonds, 5% “play” stocks (TSLA, HD, CCL). Key: NO debt. I don’t need my RMDs, thus, take as QCDs. This is a unique portfolio as apportioned by my fa

[@JohhGaudelli]

Who is this FA? And roughly how much do you pay for this service?

[@robertharry6971]

Glen Howard chester ’ , is a renowned figure in his line of work. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@lordabhikingfisher8087]

Rick's lifestyle is not of 5M but 15M. You missed to account 10M.

[@alk672]

Yup, maybe $10m.

[@smiller8686]

Sounds like a stretch even at $10m

[@pilauopala843]

Allen’s $500k lifestyle would be the same as someone with $5 million living in the SF Bay Area.

[@墨紫月]

Haha, not quite。unless all is in the house. In that case they need to downsize 😂

[@Jimmyjackfunk433]

Complainers. Move!

[@JBoy340a]

I suppose it depends on the person. And having $5 M does not necessarily mean spending big money. And in the Bay Area tech jobs, often a lot of that money is tied up in future stock and other investments.

[@pilauopala843]

@@Jimmyjackfunk433 I don’t need to move. I’m more than comfortable here. It’s the younger generations I’m worried about. It’s not a healthy environment to raise a family or for long term stability of the region.

[@jamespetz4556]

Move

[@wh8597]

No way. I have 5 mil and live like Azul’s 1 mil guy. If I spent like Azul’s last example, I’d go broke.

[@thomaswolf7034]

Correct, the last example is way off, Azul.

[@alk672]

Yup

[@chriscrawford1555]

As a quick check, $5M at 4% is “only” $200k, not the $350k/yr Azul says they budget. I’d be looking for more like 9M to spend at that level…and that’s assuming it’s 350k before taxes.

[@ColdRunnerGWN]

If you only had $1M and spent like the $1M guy, you'd also go broke, and quick. The first thing he has them do is pull $75K to renovate their house - that's simply reckless. Then he has them going to Europe every year, contributing to their grandkids education, paying their medical bills, and finally leave $500K to the kids. This is just utter fantasy.

[@michaeldelrosario9511]

I am in the same situation, with 5 million, and we live like a 1 millionaire. I am 67, will work to 70, and will collect SS at 70.

[@vancoker-t6z]

I’m 55 from southeastern Ohio but worked overseas all my life. I have savings of $1,000,000 and I'm ready for retirement, only concerned about the soaring inflation. Is this enough to retire comfortably, or do I need some sort of money management?

[@justlikekingsolomon]

Glad to hear from another buckeye! comfortable retirement depends on your lifestyle...

[@beautifulpeoplealways]

I would get money management just in case. You’re only 55. I think the average life execting in the US is 77.5 years, but many people live well into their 80s so that $1 million has to last you all of that and the unforeseen. $1m is a great start though. Good for you!

[@chadgriffith1969]

I’m quite lucky exposed to personal finance at early age, started job 19, purchased first home 28. Going forward, got laid-off at 45 just after covid-outbreak, and at once hired an advisor with grit to help stay afloat. As of today, my portfolio has yielded over 300%, summing up $836k. Stay motivated friends

[@J.woltz48]

@@chadgriffith1969 this is huge! your advsor must be grade A, mind sharing more info pleas? in dire need of proper asset allocation

[@J.woltz48]

thanks for sharing! just did a web search on Annette Louise Connors and I find her valid

[@johngalt5205]

I just retired. We have about 700K in investments, no debt, just bought a 330K, 2200 sq ft house in central Florida with cash. We have a nice Class A RVs for trips, I have a 6 year old Tesla, and my wife has a18 year old Infiniti, and bring in 65K a year from various income sources. without touching our investments. I'll get SS in 3.5 years, which should boost our income to 110K a year. We also have gold-plated health insurance since my wife retired from working for the state of Taxifornia. The plan is to let our investments grow. We are simple people who don't care about fancy clothes or cars. We do eat out every other day, but keep it below $50. I think we will be OK.

[@sc100ott]

Very nice 👍🏼

[@dans4900]

I'm just about there. My question is, when you die, where does the principle go? Why not spend it down.

[@johngalt5205]

@@dans4900 The principle goes wherever you want, kids, church, charity. BUT, and this is a full-rounded but. You don't know when you are going to die. It's better to have your money out-live you, than out-live your money. My dad is 91 and still going strong, so I come from sturdy stock, and I've never smoked and rarely drink. You also don't know how much more damage Kamala is going to do to the economy once she gets intalled.

[@E.E.F.]

Same here. I have several income sources and don't need my investments at this point. I am planning to leave some to the kids. 🙂

[@Markrtsoon]

Rick’s case needs a lot more than 5 million.

[@billygnosis6976]

I was thinking the same thing

[@shea455]

350k is 7% of his portfolio. Even 250k a year would be luxurious but 5%. I suspect he still has a lot of debt payments, and a chef. His lifestyle is at least $8m in investments. Inflation might bite on a 7% withdrawal rate.

[@bourbontraveler]

No you can spend more on good years You can spend down to 3 or 4 million and a couple good years your back. Believe me I know. The Newport Beach house is a mistake

[@texasbryan]

Azul said he has rental income so I’m sure that’s factored into the $350k per year

[@墨紫月]

@@Markrtsoon agreed. That Newport Beach house will be expense to obtain and maintain.

[@alexanderlyon]

To quote David Lee Roth, "I've been rich and I've been poor. Rich is better. Totally better."

[@xbalance]

I am 62 and my wife is 60. Our house has been remodeled and completely debt free for 10 years or so. We paid for both of our children’s public college education. We drive our cars into the ground. We don’t go out to eat very often and our vacations have been domestic and usually involve staying with family. We both work, but neither of us is in management. Our lives sound more like Allen, but our net worth is in Rick’s category. I plan to retire in 2025. I might be able to afford a Rick lifestyle, but the Allen lifestyle is also a good life. We all have different approaches to accumulating wealth, but I believe my wife and I have continued to live a modest lifestyle after we could afford to live more extravagantly, and we invested wisely, and that worked for us.

[@vinyl1Earthlink]

Many people with $5 million live way under their income and assets If you saved that much, you don't really want to spend ti.

[@JBoy340a]

Very true. You are creating generational wealth and understand investing for the future.

[@墨紫月]

@@vinyl1Earthlink trust me, their money will run out in 5 years if they fulfill all their wishlist items

[@roberttremayne3114]

@@JBoy340aagree

[@bills1995vette]

Yes. Its hard to learn to start spending.

[@habbadabbado5765]

Maybe. It’s all situational-did they invest it or was it inherited?

[@墨紫月]

To be honest, I don’t know if Rick and wife have enough to buy a property in Newport Beach. A house on the beach will cost between 2-3 M. Their life style is too extravagant….they have a long wish list, better be careful.

[@amymorketter2954]

much more than that! 2-3 mil will get you a small house with no view in Newport

[@墨紫月]

@@amymorketter2954 yes, I was being generous

[@sc100ott]

I assume they finance it. Maybe $800k down? Payments come out of the $350k annual retirement income. Very workable, if that’s what they want.

[@JJS73]

Don’t forget that $350k is taxed at the federal and state level. Not gonna be $350 unless it’s all roth money.

[@philreap]

I know this isn't the point, but Alan not wanting to spend $30 on a gym membership while sweating healthcare costs is exactly what is wrong with American thinking.

[@JC-nh6ud]

Like always, great video. I am 50 now and plan to retire at 55 with about $1.3 million. I also plan to leave the USA and move to a lower cost country. First, I am looking to move to a country where food is fresh, not the TV dinner we eat here. Even if you are eating salads, the vegetables have 50 different chemicals added to them. Second, medical cost is crazy here in the US. Living in a lower cost country will allow me to slow travel to different countries and actually enjoy retirement.

[@gentrybrown2032]

Love this same here. Sitting on 1 mil net worth I also want around 1.3 and moving out of USA. Except I’m 36 so we’re doing it by 40.

[@JC-sw7dv]

So true. The food here is crap!

[@dominic8218]

Similar position. I’m 55 and just retired to Spain - superb and funds are more than enough- good luck 👍🏻

[@jonfloyd1494]

I have close to 5 million in liquid assets in retirement. I would never buy a new car every 2-3 years. I would not take7-8 vacations as year. A second hone is a headache I do not want. Glad I live in the Bay Area . There are so many things to do that I don't feel the need to travel all the time To ne, travel is work even if you fly first class. I plan to leave my 3 children a million dollars tax free but mire importantly my luat of contacts full of people that can help them along the way.I am 66 and the most important thing to me is legacy and being able to develop and maintain real generational weslth.

[@2Rugrats9597]

If you have $5mil why are you still working? I sure as hell would be enjoying life. Is that $5mil include house or house not included

[@墨紫月]

@@jonfloyd1494 what’s your definition of liquid assets? I don’t think create generational wealth is as important as empowering your children with skills to support them selves. I paid for my kids educations thru 529 accounts. (BAs, graduate schools ). I intent to help them with down payments when their are ready to put roots down. By the way; I am also in the Bay Area

[@keekeefries6298]

Amen brother!

[@JBoy340a]

@@jonfloyd1494 sounds great. And generational wealth means you leave a legacy.

[@wzeng02]

Jonfloyd, I have around $3.5mm living in the NY Metroarea at age 45 years young. I don’t fly first class, nor i buy fancy car nor take 5-7 vacation. I live in a nice suburb home, 40 minutes train ride to Manhattan. I work full time and hardly can afford a vacation. Once a year we’ll goto Hawaii. I fly using credit card points. I still drive a 20 year old car but I spend over $1.3mm on a home. Liquid networth is 10%, invested in stock and crypto. Most of my capital is invested in rental properties (70%). My job doesn’t bring me joy, feel like just grinding it to pay for daily expense. My networth grows about $1mm every 3 years. Looking to achieve $10mm networth by 60 years old. Most $5m and $15mm networth people I know are fragual and owes his owe business or massive real estate rentals.

[@joefunk76]

$1m is NOT top 3% wealth for households or individuals. Top 3% wealth for a 50-ish individual would probably be around $5m, give or take a million.

[@mysticaltyger2009]

That's what I was thinking.

[@HooliganBrew]

Azul - THE BEST of ALL your KZbin content! I enjoyed listening to these real life scenarios! I relate. It’s so accurate!

[@scoutandscooter]

Great comments. My stress should be zero. My stress is still 9.9 Left handed, Virgo, accounting systems consultant, no heirs.. I suppose the answer is just get near big water and buy a sailboat.

[@genxx2724]

I disagree with the prospects of the $5 million couple. In coastal Southern California $5 million is not wealthy. If they move to Newport Beach, they will experience a big drop in lifestyle. I do not think they will fit in with the yacht club set.

[@fennugreek-gs5zb]

I agree. The description has the couple hemorrhaging money on multiple luxuries. However, if they cut out a couple of them, it would be feasible (I ignore the Newport Beach topic...too many questions come up).

[@uriassmith4110]

Rick better slow down or he will be broke.

[@mattbleiler7294]

There is a big gap between 1 and 5 million. 😂

[@gentrybrown2032]

Right I want the 2 million lifestyle scenario

[@nokia5359]

Ok. 500K buys short sleeve shirts. 1000K buys long sleeve shirts and 5000K buys 2 long sleeve shirt. Simplified and sensible.

[@AzulWells]

That's funny ... 😎 Azul

[@jesperbjerg3480]

Hello from Denmark, I love watching Azul’s videos even if the American Way is not the same as in Denmark. He come’s up with great exampels of People’s lifes in retirement and these are just exampels. Maybe the geography doesn’t fit perfect, but everyone get’s the picture, right😉 Thanks for all the great videos! I’ll see you in there🇩🇰

[@slyfox909]

Always love your insight, Azul! Thanks for sharing

[@BrianAnother]

Top 3% is not 1 million. It’s 7 million. Among retirees, it’s going to be even higher.

[@rickthompson8122]

I have 3M saved, my name is Rick and I can’t even come close to Rick’s lifestyle…. 5M is not that much money these days, especially for two people.

[@bryantjenks3598]

Who ever has money never has enough. Eccl 5:10

[@lastmanlost]

All these retirement people always talk about high healthcare costs. I live in California in an expensive area and my cost is $70 per month besides what SS pays with max out of pocket for things not covered is around $6,000. Now if you need assisted living, that is expensive. I live in a manufactured home on a very large lot in a park and yearly expenses are around $12,000 all in (including all services). So we can live on only $25,000 a year if we wanted to, proudly much less. I also don't understand the 4% rule as I have been retired for 20 years and only tapped into savings to buy my house for cash as my money was all tied up in a 1st deed note which was paying us way more than 4%.We have always lived on the income from investments, if you spend your investment principle you will eventually run out of money.

[@johnnysimes5082]

I'm not sure that a person's stress level is closely tied to their net worth. Some people have little but have little stress, and other people have a fortune but are not happy and always worried about something else or envious of something more. "All things being equal," more money is better than less. But things are never equal.

[@mjmf1430]

I think he’s referring to one’s personal stress level due to the lack of money.

[@waterdoctor808]

I do not get it - we have #3.000.000 net worth, cannot justify even what the $1million family - we eat out maybe once a month, take maybe a two week vacation a year. We help our grand kids with education at private schools. I have little worries except what may happen the next couple of years due to governmental malfunctions.

[@21stcenturydadd]

Are you retired? Has your nw gone up since you retired? If so, give yourself permission to spend some

[@NoRegertsHere]

$3m invested plus a paid off house? Or does the $3m include a house you live in?

[@waterdoctor808]

Net worth includes house@@NoRegertsHere

[@waterdoctor808]

I am partally retired - yes I can spend more - for what? I have all I need and want@@21stcenturydadd

[@anotherperspective6247]

$350k/year is crazy spending--Rick must've picked up some expensive hobbies like airplanes.

[@Ethan-bu2zy]

Airplanes will definitely do it!

[@NewGuy2024]

Having a $5 million nestegg but happy and comfortable as though it was a $500,000 nestegg is bliss.....

[@gratefullyglorifying9197]

This is encouraging because I’m am totally comfortable not retiring with $5M. Definitely not me. 😂 Thanks for this one! Wonderfully thought provoking.

[@alk672]

Rick is planning to spend $350k on a $5m portfolio? His rental properties better provide some solid income as that’s 7% withdrawal rate before SS kicks in.

[@philipmehl9355]

Mike’s lifestyle seems a little unrealistic for 1MM. 4% rule is 40k plus social security maybe another 40k. That doesn’t pay for too much these days. Almost sounds like there’s a teachers pension in the background

[@scottjackson163]

Calling 4% a “rule” is like saying the speed limit is 55.

[@dforrest4503]

An enjoyable video and comparison. I honestly like Alan’s lifestyle the best, although a bit more peace of mind is always nice. Silver Sneakers health club memberships should be free for most people on Medicare. Also, it seems awfully wasteful what the two more well off couples were spending on cars; there’s no need for that.

[@cueoneful]

Good Health In Retirement Is Priceless...!!

[@tmusa2002]

What are the expenses and debt for each group. That’s key. Do they have a mortgage? Did I miss this?

[@JBoy340a]

A lot of very wealthy people have a mortgage and use that debt instead of tying up cash. For example, Facebook CEO Mark Zukerberg has a multi-million-dollar mortgage. That frees up cash to invest and grow. That is much more financially advantageous than tying up that money in a house where he can only get the money out by selling.

[@tmusa2002]

@@JBoy340a Are you saying that the people in the three examples had monthly mortgage payments?

[@smacfe]

You have no idea just how much it costs to live in Newport Beach.

[@markkao9954]

I’m 45 with a net worth in the mid 7 figures and I’m not sure I’ve saved enough for retirement, at least not to live comfortably

[@21stcenturydadd]

This is just a great video. Using cases that either are or approximate real situations is so powerful. This may be your best video yet.

[@foreignfilmfan]

If the 5M retiree is “tired of taking too many vacations”, why can’t he just “stay home”? Who’s making him get on the plane or make the hotel reservation?

[@allysonlinton1077]

Wow... I think your descriptions are spot on. Your the best, Azul.

[@macca720s4]

IMHO think u lost a train load of audience after your advice against the S&P 500… difficult one to dig yourself out of…

[@roburb73]

I must have missed that one. When was it?

[@AzulWells]

Hope not. My main point in that one was just to remind folks that just 10 companies make up over 30% of the S&P 500. Thanks for watching this one. 😎 Azul

[@ZelenoJabko]

​@@AzulWellscorrect. Everyone and their mother is investing into s&p, of course it is a bubble

[@kchiker]

Interesting. I have savings like the $500k person, but live like the $5M person. But, I don't own a house. live out of my car, and traveling the world, taking cruises. Currently traveling in Europe for the next 6 weeks. It's not how much you have, but how much you spend. Lifestyle matters.

[@mjr7991]

Ha. I’m 53 and have $5M in retirement accts, a pension and healthcare for life and feel I can’t retire. I also don’t consider myself upper class, more like upper middle class.

[@bryantjenks3598]

That is a lot of money for a 53 year old. And if it is all retirement accounts even more unique.

[@Oglulubell]

Do you have to wait til 59 1/2 before drawing off your retirement funds? I’m retiring with 1/3rd of what you have when I hit 59.

[@mjr7991]

@@Oglulubell no. A good chunk is in a deferred comp account that will get paid out once I retire.

[@poupeth1]

@mjr7991 5 millions is plenty of of money in retirement account. I personally have a friend who retired on a million dollar portfolio in his early 50s. He is doing good with a paid off and car help a whole lot.

[@ColdRunnerGWN]

I think you need to check some of your calculations on the last two, but especially the very last one. I have no clue how someone with $5M is going to be able to withdraw $350K a year and be sure to have anything left, let alone $2M. Are they expecting to die really early? Even the second one seems well beyond the ability for someone that should only be able to withdraw around $40K a year. In fact, even $40K would be difficult considering how they're spending $75K right off the bat on a renovation. How are they supposed to go to Europe once a year, take two US vacations, put money into their grandkids education funds and then leave $500K to their kids. Neither of these are going to happen, it's just simply impossible.

[@elizabethandrews4199]

The $5m couple sounds like they are spending too much unless they have income from something else.

[@paulmlemay]

Thank you for showing this to us as stories. Nice

[@user-iw4mv6us2x]

Knowing what cities/states the 3 live in would be helpful. Costs vary widely around the US. How about doing this presentation for single people.

[@Mary-tj5qx]

Allan’s life sounds ideal in a lot of respects. A lot of the problem many people suffer from is comparing themselves to The Jones’s. Living where he lives, the way he lives, he isn’t tortured by any of that. Mike has more, but he’s a a pool of people who have. A LOT more than him. If he’s living a consumer lifestyle, he’s the poor guy in a pool of better off guys, which can come with its own misery if you’re wired that way. As for Rick, sounds to me like he worked too long.

[@SamBalducci]

Summary of video, the more you have in retirement the more you can be on easy mode.

[@ZelenoJabko]

No shit Sherlock

[@mysongdownload]

5M and withdraw 4% is 200K not 350K..........not that 4% is hard and fast rule but I'd get nervous spending 7% per year

[@Cioletta4]

He mentioned they had rental houses they have additional income from

[@InfoSecTangSoo]

He also mentioned that they had $40K each in SS benefits. Also, 4% has been “debunked” as too conservative. Likely that around 5% is sustainable. Still, $350K/yr seems like a lot.

[@NoRegertsHere]

@@InfoSecTangSoo 5% is solely SP500 including the tech boom, not as per the trinity study which was 4%, 50/50 bonds SP500 with annual rebalancing

[@austinburns4213]

Good catch. Separately, I can't imagine spending 350k a year, or paying taxes on that, assuming 37% federal tax bracket with their additional income, plus state income tax and insurances on all those cars and homes. Living that lifestyle feels too much like working, -- but to each their own. After a certain income point, budgeting is more about expenses and money going out than money coming in. 50k income a year in a rural area and no state tax, is living the same as $150k income in city suburbs with high HOAs and taxes.

[@InfoSecTangSoo]

@@NoRegertsHere the Trinity Study was also conducted in 1998 with historical data not counting nearly 30 additional years of returns. But each to their own. My point still stands; they weren't only factoring in withdrawals on the $5M for this retirement scenario. They were factoring in SS benefits and, as another viewer noted, rental income.

[@vickiwest4149]

Guess I won't retire till I get to heaven!

[@teddyruxpin7876]

thats the real retirement. We are all just passing through, well some of us.

[@JohhGaudelli]

Thanks for sharing. I looked up his full name online and found his page. I emailed and made an appointment to talk with him; hopefully, he gets back to me. I like to ask retirees and industry related personnel a lot of questions these days since the market has been a rollercoaster.

[@katz20200]

Just curious,do all these wives have names?

[@stevea8351]

Realistically, you probably need a net worth of $10 million to live in Newport Beach. The median home price is way over $3 million so that plus the cost of maintaining it would hurt them financially. Buying rentals in SoCal today typically results in negative cash flow. They can find much better markets.

[@Jimmyjackfunk433]

Who really cares about California! Geez. Get over yourselves…

[@墨紫月]

@@Jimmyjackfunk433 Rick does

[@dbanka471]

You nailed this one…i am closest to Rick number wise (but still short of the 5 m in investable assets)…but don’t feel financially comfortable at all- i relate to Allen the most and feel more like him-it may be irrational but i don’t think so…i live simply and below my means and that got me to this spot and won’t be changing at this stage of the game

[@terryB4713]

Azul Great video with insight to how others live. I was raised Family 1st stay at home Mom. Then Busted my Butt for 15yr working 2 jobs. Saved $ not in market but secured fund even at this level can't believe the end result! It's kinda Funny the only real difference of the 3 men in this video is how they use their Funds! In the end Azul Money buys necessities & Reassurance as we age. Faith & Family Money can't Buy. Thanks again for your insight.

[@sandrad801]

Great video.

[@angstfree2008]

The second example is definitely not $75k a year in spend.

[@andrewlick1593]

How can a man smart enough to amass $5,000,000 be willing to buy both he and his wife a brand new car every other year? That is unwise no matter what how much you have.

[@墨紫月]

Not necessarily. If the $5 M is not counting real estate, if the cars that they buy is within their budget …..

[@RogerMKE]

Because he knows he can't take it with him.

[@samuelwilliams7331]

Facts. Use it until the warranty runs out. 5 for ICE and 8 for electric.

[@roburb73]

Because$80/$100k isn't that much to someone with a $5M portfolio. They're at the position they want a new car - they get a new car! Good for them!

[@andrewlick1593]

@@roburb73 Using the 4 percent rule a $5,000,000 portfolio produces $200,000 a year in income. That is a nice income but not enough to justify that amount of expenditure. He can waste his money any way he wants....It is just far from optimal and it's worth calling that out on a channel that is dedicated to making intelligent financial decisions.

[@Vankel83]

Under 1200 days to go, looking like Mike's retirement and better.

[@mikeyshouseofbrakes8463]

I could live like the retiree with $500k after accumulating a million dollars. And not worry as much about unexpected health care expenditures.

[@sergiomessina2037]

Wow, you make $1 million in retirement sound like a lot of money. I guess all of your examples don't live in a metropolitan area.

[@erikmcclunie663]

Please do another video with 10mil and then going up from there.

[@dorinatudisco1308]

I’ve not seen a video like this that gives examples of what a lifestyle would look like under the three retirement savings scenarios. Thank you! I’m glad I have no kids or grandkids to consider in my future spending 😉

[@dgaz3057]

Sad no one knows how to sell poor man's covered calls with their invested money. That's solid income.

[@MidlifeCrisisManagement]

the spammers are back with a vengeance, Azul. 😩

[@E.E.F.]

Wow, am in in the top 10%? I thought you would need to have at least 2.2 million for that. With a pension, no debt, and ample savings and investments, I have no financial stress. I just redid all the landscaping at my house, so I am still reasonably fit. 🙂

[@esqu1re]

Agree. Video numbers seem off.

[@roburb73]

It’s videos like these and seeing the numbers that actual people have that make me realize how fortunate we are. I am 27 year retired military member with a pension and I’m 100% VA disabled. My wife is a federal employee who will also have a pension when she retires. if you add all our pensions together and add Social Security in there, we will have monthly income of more than $17,000. Our portfolio is over $1 million and I go back-and-forth on whether I should stop investing because I don’t think we’re ever going to use much of the money.

[@jimcrowley1709]

your va benefits aren't taxed. not too shabby!

[@roburb73]

@@jimcrowley1709 No, they sure aren't. It's a great benefit. However!! As I tell everyone, I'd give up the cash to be pain free when I wake up.

[@JareBear-vx8nn]

It depends on your goals…but there isn’t a reason to invest if your income far exceeds your expected expenses. I may be in the same boat; the VA made a massive U-turn during GWOT and will need to start retightening its parameters before it outspends social security!

[@roburb73]

@@JareBear-vx8nn I believe I could stop but honestly, our W2 income provides enough that we can heavily invest and still have left to do what we want. I don't one person who got to retirement and said they had too much! We'll keep doing what we've done!

[@michellewinkler3985]

When you speak about these "tiers" of 500,1 mil etc, are you speaking just about money in the bank or assets like a home or other property also? How does a pension factor into these figures if one will receive one? Thx!

[@dantheman6607]

I think the guy in the middle has the best retirement.

[@KH-vw9yl]

great look at 3 different lifestyles

[@alecdrummond9226]

A shot of Patterson, NY!

[@maggie4834]

Always great videos, and this one’s included 😊. Of course every video has a theme and this one focuses on size of portfolio. Total net worth would also be a good focus. Allen’s $500k portfolio maybe surpassed by his currently $600k residence. And, while in this scenario he doesn’t have a pension, perhaps in another scenario he has a great pension and a maxed out social security benefit. Then Allen has a $300k sailboat as well. So that stock/bond portfolio is just a piece of the pie 😉

[@phd_angel4192]

Thanks for the video. When you say so-and-so has 500k or 1 million, is that the individual or the household? This is important as most middle-class couples are dual income earners.

[@jjmca2024]

This video was really enlightening to show what retirement could look like at these various levels of retirement savings. One question: how old are each of these people?

[@robertharry6971]

How do people manage, manage in retirement since 401ks are nothing to write home about? My 800k turned to 250k in no time. I'm 54, will I work till God calls me?

[@robertdylan8029]

I worked until 62, I was at the top of my income game, liked my work, and we could both go on Medicare. I ALMOST fell into the “only one more year” trap.

[@robertharry6971]

How did you apportion saving, investments and expenditure?

[@robertdylan8029]

Finances: 35% in 5.25% secure, 40% stocks, 5% cash, 10% gold/silver, 5% Series I Savings Bonds, 5% “play” stocks (TSLA, HD, CCL). Key: NO debt. I don’t need my RMDs, thus, take as QCDs. This is a unique portfolio as apportioned by my fa.

[@vidoloco4647]

Really enjoy your videos. Very informative. Pls keep it up 👍🙏🙏. Rick& spouse must have way more than $5M in investment and Social Security income to be able to spend $350k/ yr net of taxes and investment expenses (eg. real estate). Otherwise, they would be dipping into their capital to the tune of $100k/ yr to support their spending target. No?

[@abreug2]

Dang my savings is sbout what Rick has but my lifestyle is a lot lower😊. I retired in April at 60, wife retired 1 year ago at 58. Although high NW close to 6MM I still worry about finances and medical (Thanks for ACA health care)!

[@ElvisSirinBo]

If you've achieved any financial security, savings, owning a house, a pension.... you'll find these are going to be a financial burden around your neck..... they'll tax you to oblivion..

[@ErnestZDodson]

In light of the global crisis, rising inflation, and economic instability caused by inadequate governance, stocks, ETFs, Mutual funds, and REITs, assets can serve as a viable path to achieving financial independence.

[@collinsmack]

One lesson I've learnt from billionaires is to always put your money to work, and diversifying your investments.

[@Grey-y6u]

Investing is the key. So you need to earn enough to save enough to invest enough to stay ahead of inflation and later live on interest, while always keeping the principle growing faster than inflation.

[@ErnestZDodson]

@@BrentJ.Sanchez 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 673,000k

[@Pfluegerr]

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.

[@mfranquemont1884]

Azul, Another great video. What books do you recommend (money related or not) Thanks.

[@enubisgaming6829]

Would have been nice to know their hypothetical ages of retirement. But great video!

[@kckuc310]

Sad part is I saved but my health sucks

[@christopherlynch3314]

Good video. Sounds pretty accurate.

[@cstuartdc]

Great job "humanizing" the different subsets. I don't understand the obsession with travel - airports, TSA, tourist traps. Travel is NOT an enrichening experience - it's just something people who travel say to be pretentious.. The mechanic guy sounds like they have it right - local community. We'll be somewhere between the 2nd and 3rd guy. . .I may want to travel to peddle my book. . .but to be a tourist? No way. I'd rather garden, cook and give the food to my kids/grandkids and charity. So I'd rather choose to be like the mechanic mostly. That said - women do put out if you take them someplace. I get that.

[@Buckaroo801]

the thumbnail has it backwards…

[@nancymize4390]

Why is this podcast about 3 men?? Their wives don't count, I guess.

[@alanm500]

🙄

[@dorinatudisco1308]

And it assumes there are kids and grandkids.

[@DanSvoboda-hg5mm]

I find the 50k retiree’s lifestyle not believable. Mike either. How can a couple live like that on 75k a year? Do a remodel? Europe? Are you kidding me?? B*llsh!t.

[@esqu1re]

Theres no such thing as a new Taurus. ;)

[@keekeefries6298]

With all due respect my wife and I have $5m put aside for retirement and there is no way we would feel comfortable living the life you described. $350k a year is way too much to withdrawal a year at that level. We are working on a plan for next year when will both retire at 60, and we are planning on around $200k to 210k per year, and waiting until 65 for adding social security. I feel like your $1m scenario with a few of the things from that $5m scenario sounds accurate. Just sayin…

[@teddyruxpin7876]

Completely agree w/ this. This will be our situation w/ a tad bit higher numbers in retirement

[@jeffwhite3021]

Fewer than 10% of Americans retire with 1 million or fewer than 10% of American retirees retire with 1 million?

[@HookemPNW]

If the first is true, then the second(global retirees) is definitely true.

[@daveholt0]

If 500k median savings gets you near-median 50k per year to spend (inc ss), why does 1m 97%ile savings only get you 75k 75%ile spending?

[@michaelkearney7923]

Using the 4% rule, the $500k will give $20k per year. The other is presumably social security. So in this scenario, the $1m will give $40k per year with another $30k in SS for a total of $70k.

[@AzulWells]

Thanks Michael. Could not have said it better myself. 🙏 Azul

[@mikemiller3428]

How old was Mike when he retired

[@jasonbroom7147]

Alan does NOT represent "half of all Americans". In fact, 46% of Americans have ZERO dollars saved for retirement! Roughly 10% of Americans have $500,000 (or more) in retirement savings. Your video is talking about the top 10%, the top 2% and the top .5% of all Americans. Please choose your words more carefully, lest you come across as an elitist who is largely out of touch with the average American.

[@MeganGrant-s9j]

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