I Have $1.5 Mil, How Much Should I Spend, When Should I Take Social Security and How Should I Invest

[@lw9936]

Can we have more single presentations for age around 65? thanks a lot! You have provided lot of valuable information!

[@solarguy22]

I don’t comment on many videos, but your content has been very good for a long time. This video was no exception. Well done!

[@thomasjaszewski6898]

One of your better ones, explaining many options!

[@MtbStoat]

Wife & I are 59 with $1.5m, we're retiring now, we're early activators, took my corporate pension at 55 ($2k/m), and SS will be at 62. We got rid of all debt at 55 (no mortgage, house worth $500k). No kids, parents loaded. Get out and enjoy your lives, people, don't fall for that live to 97 stuff😂

[@OakHarvestFinancialGroup]

Hi @MtbStoat, congrats on you and your wife's retirement! Happy to hear your plan is working for you. :)

[@rayanderson3164]

This was a fantastic video. Thank you. Real scenarios and Comparisions are so helpful.

[@paulfogel5000]

These videos are priceless. I’ve learned so much listening to Troy. He can explain complicated situations in a simplistic way that someone without a degree in finance can easily follow along. As always Troy, two thumbs up. 👍 👍 This is why I am a client of yours. I also like playing with the software you use in your videos too. I like changing the scenarios, in the software, it gives me a percentage success rating instantly. I have so much more confidence in when I can retire and what the outcome should be. Please don’t stop producing your retirement videos. The world needs them!!!

[@randolphh8005]

Very good data about different reasonable scenarios. As a geriatric health care provider, I would make a couple points. Most people don’t live to 90, and couples rarely have both alive at 90. Couples often spend multiple years with only one person living. So survivor benefits are important to consider! Having the high earner delay SS is a good strategy for all but the wealthiest couples, to give the surviving now single person a larger single check. It is also rare for both husband and wife to have a low life expectancy. Certainly the lower earner could take early with less adverse impact. Another general point is that in today’s dollars a check of $3500 or more will improve your chances of getting adequate care when old and frail, say in senior living, whereas $2000 won’t cut it.(Florida). Also most people don’t have large uninsured medical costs in their last months. Those at highest risk of having to pay large amounts are those with the largest portfolios.

[@philmarsh7723]

I view SS as a guaranteed annuity that's inflation -indexed. To have a balanced approach, one needs an income source they can rely on should their portfolio go through periods of low value i.e. low P/E ratio. You don't want to withdraw from a portfolio after a large market decline. I plan to defer my SS until age 70 because I want that check to be as large as possible. Under current market conditions, I anticipate a high probability of a crash near-term. I will continue working to account for that and I have a cash buffer to make it to age 70 so, hopefully, I could cover my living expenses without selling until I reach 70. If this is you, you should consider waiting until age 70 to start SS.

[@OakHarvestFinancialGroup]

Thanks for commenting Phil! No one has ever told us they get tired of really high guaranteed income payments being deposited monthly in retirement! More guaranteed income helps people feel secure later in life from my experience. Also, means you need to withdraw less from savings.

[@rgray3340]

He might be a vampire or he got a way to take it with him

[@swright5690]

True dat. Waiting until 70, if possible, solves so many problems.

[@ariefraiser140]

Sequence of return risks is less likely to be a big factor almost a decade after retirement. I also don't think it's a given someone who takes social security early will be taking a bigger amount out their portfolio later in life.

[@geoffreymurphy72]

Like the other videos this is another well done presentation. I have enjoyed all the videos. Early in the video you mentioned an upcoming presentation that is normally only for existing clients but will be open to others as well but I see no information as to how to sign up. Am I missing something?

[@OakHarvestFinancialGroup]

Thank you for commenting. You can RSVP on our website top banner: oakharvestfg.com/

[@paulfogel5000]

Another priceless informative video Troy. I have learned so much from all your videos. Two thumbs up as usual.👍👍.

[@Just_forfun9140]

Any presentations for singles. Couples may have double income from various sources and lot more options, they save a lot on housing, transportation, care, taxes which are normally a huge portion of the budget. Singles retirement is challenging.

[@OakHarvestFinancialGroup]

Yes, we do have videos for singles if you peruse the library of videos. The main points are often the same. I think a lot of people look at these videos for situations similar to their own to feel more comfortable with their finances, but that's not the point. The overall concepts and strategies and relationship between choices and outcomes is the purpose. All of these videos are just a snapshot in time and the decisions that need to be made can change from year to year. Thanks for watching and do check out the singles videos I've done!

[@dalebenson6304]

Good and relevant video and discussion. Agree that spouse age variations add complexity to the analysis since social security is impacted. Looking forward to the tax implications in next video since that is what I am trying to figure out. A previous video on ACA subsidies also helped on my plan. Thanks for the videos

[@terrywalker8857]

Thank you for your great informative videos. You truly break down all the different variables relative to retirement in a most simplistic approach. I’ve learned so much.

[@OakHarvestFinancialGroup]

You are so welcome, Terry! Thank you for your kind words. Let us know if there's ever any idea you'd like us to do a video on in the future!

[@Csmonk848]

It seems counterintuitive that taking ss early in a bad couple of initial years would turn out worse. You’d think that if the market was bad turning on ss then would limit the amount of draws from a nestegg while returns are negative??

[@larriveeman]

If you have a good pension then your have more options, I have a great federal pension, and the wife has one also

[@Nobamaable]

Exactly... I'm taking my SS at 62 and invest all of it since I don't need a dime of it now or ever. I have a fat pension!

[@janeenerbaneener]

What is missing, from all the KZbin videos I've seen and my ex-CFP's calculations, is AUM fees, which are quite a chunk to cover. I'd love to see that addressed. To me, in many cases, those fees easily cover bad sequence of returns decisions and/or taking social security at the wrong age. I'd love to be proven wrong.

[@OakHarvestFinancialGroup]

Hi Janine, we account for them by showing all returns net of fees. While I agree many financial firms charge fees and don't provide the value, a good, experienced financial advisor that provides tax, income, investment, insurance, health and estate planning services should earn their fees multiple times over throughout a client relationship. There are numerous studies by Vanguard, Russell Investments and others that quantify the value of a good advisor. The studies show that the most likely outcome is somewhere between an additional 2-3% compounded returns annually over time increase to the client's wealth. Every one has to make their own decisions and choosing the wrong advisor can be very costly as well. In most instances, if you find a credible, honest, competent advisor they will provide tremendous value to your finances and life. Thanks for watching!

[@janeenerbaneener]

@@OakHarvestFinancialGroup thank you for the thorough response. I'd love to see it full transparency. I have seen the studies. I'm not afraid of the market drops therefore not at risk of bailing, which was indicated to be one of the most valuable reasons to have a human advisor. I have considered switching from robo to human upon retirement, the truly good ones are hard to find. I'm not convinced but your videos are the rare ones I've seen that tip the scale slightly.

[@michaelmccafferty7341]

Great insight about claiming at FRA

[@benmccarty4598]

Great video, a little different perspective from your others, thank you! I have a new scenario for a future video: Husband and wife are 11 years apart in age, wife is older retiring in 4 years at age 59, and the husband plans to retire in 10 years at age 55. Wife will have a $50,000/year pension and $500k in mutual funds (normal growth rate). Husband will only have a $36,000/year pension and $600K in 457 Plan at time of his retirement. Proposed spending in retirement: Wife spend $60,000/year until husband retires in 10 years. Both retired spending rate jumps to $120K/year. Can the husband retire at 55???

[@4040smokey]

It would be challenging IMO. Pension $86K plus 4% withdrawal on $1.1M of $44K totals a pretax $130K. Pretty tight. That's a pretty high spend rate.

[@Donkeyearsa]

There is one question you need to answer that has the biggest affect of when is it best to start collecting S.S. That is, how long do you think you will live? My father put into the SS system well over a million dollars over his lift time and he did not live long enough to collect much of anything as he died at 66. My mother put into the SS system about a million dollars her self and died not collection much of that as she died at 67. Since my family is not long lived I plan on starting to collection SS on my 62 birthday as I don't expect to see my 70th birthday. Now if I live to be in my 100s oh well I went with what was the most logical answer with what information I had to work with.

[@traceybaldwin6509]

Not sure it’s possible to pay $1 million in social security taxes as it’s capped each year.

[@alanrussell6678]

@@traceybaldwin6509 I, too, thought those numbers were suspect ... perhaps it included the employer contributions..even then though?.

[@traceybaldwin6509]

@@alanrussell6678 if he earned more than maximum taxable social security wages each year of his working life, he still wouldn’t have paid in a million. Combined with the employer contributions, I guess it’s possible.

[@davidfolts5893]

The 4% rule is often mentioned but rarely used...😀

[@michaelvadney5803]

Enlightening, thank you.

[@JCC487哇喜逮丸郞]

I am 58 with 5.4 million and I am still working.

[@OakHarvestFinancialGroup]

Hi @JCC487, thanks for sharing your experience! Do you plan to continue working?

[@johnhitchcock5989]

Why would one not have long term care insurance risky move?

[@dancasey9660]

You should do a hybrid social security withdrawal strategy, where the lower earning spouse takes it at 62 or FRA, and the higher earning spouse waits until 70. I'm thinking about laddering I-Bonds to handle long term care or end of life expenses. Kind of a self insurance. It's currently paying 7.2% and you can put 20k per couple, 10k as a single each year. If this interest rate holds up over the long term, then your investment doubles every 10 years.

[@OakHarvestFinancialGroup]

Hi Dan, thanks for watching! In most cases, that SS strategy is not optimal, but it could be based on someone's particular circumstances. Regarding I bonds, I'll do a video soon. The rate is only good for 6 months until the government resets the rate for the next 6 months. Highly unlikely we will be dealing with 7% inflation for the next 10 years. If so, there are much bigger problems. We will be addressing inflation and some of the leading indicators for what's next in our livestream Market Summit, Wednesday 2/23 at 6pm EST . Can go to our website to register or find the replay on our channel.

[@davidfolts5893]

@@OakHarvestFinancialGroup, I respectfully disagree. Many people viewing these videos are likely high earners considering waiting until age 70 to claim Social Security with their spouses beginning at age 62.The numbers for those waiting until age 70 are slightly over 5%. How does that stack up to what your analytics tell you about who is watching these videos? Please reconsider. Thank you very kindly. 😀

[@f430ferrari5]

@@davidfolts5893 there are two issues here that don’t have anything to do with “investments” of monies: 1. Most people are deciding 70 one spouse vs 62 for lower earning spouse based on “age gap” factor. If the spouses are 8 years apart then why not both take at their resort or ages of 70 and 62. The older spouse will most likely die first and the lower earning spouse will get half survivorship benefits. Or 2. Are you saying both are same age or close? Also you didn’t state how much the low earner is getting and are they in the half of higher earner spouse category. You only get half up to FRA when both are alive and one cannot get half until the other files? One other note. If you think the scenario works out then perhaps lay it out yourself and try to explain in comments or make your own vid.

[@terrigalinato6801]

I liked the video.

[@4frmhat]

Good video but I am willing to bet that the number of activities I can do at age 70 is more than when I am 90. I am spending my money while I have my teeth and can eat pretty much what I want.

[@davedeboy5726]

you fail to mention if taxes were taken out of that money you pull per year. Is it pre tax or post tax. UNGH!

[@drewbaughman7129]

I disagree, for my situation anyway, as I have a federal pension and also a lifetime federal employee health benefit largely subsidized by the federal government. In any case, I think that sequence of returns risk is more important in early retirement than in later retirement because studies have shown that as you age into your 70s and 80s, you spend less. I would rather take SS early (I did at 64 years, retired at 63)--there's no guarantee of tomorrow--let the market ride early in retirement, and have all my retirement plan money grow without as much dependence on it.

[@NipItInTheBud100]

You're welcome for paying for your retirement!

[@drewbaughman7129]

@@NipItInTheBud100 I worked hard for you and the rest of the US taxpayers. You'll have to trust me on that one.

[@NipItInTheBud100]

@@drewbaughman7129 maybe you did, but it’s not very classy to come on bragging about how great your taxpayer funded retirement will be to a bunch of people just trying to maintain their standard of living and retire at a relatively decent age to be able to enjoy it!

[@hsingholee1058]

Absolutely, take the money while you can still enjoy it.

[@herculesrockefeller8969]

@@NipItInTheBud100 Maybe YOU should have gotten a job with the government instead of ragging on this person who did.

[@c.espinoza528]

I like this

[@kaoyang435]

I do too

[@swanlk3961]

love this point : leave more $$ for investment from 60 to 70 yo, let the $$ grow...when u are still having brain power to invest !!

[@quartytypo]

It's not how much money you have. It's how much money does your money make?

[@sookythehousecat]

It stood out to me that when you were mentioning the investment summit, you gave the men’s full names and referred to the woman as just “Jessica.”

[@OakHarvestFinancialGroup]

Hi June, Jess and I were married for many years and now just really good friends so it just comes natural. Not sure what you meant, but hope that helps.

[@markochipsmarkochips3866]

The Democrat Party taking control has delayed my retirement by a # of years... Thanks a lot ..democrat voters..thanks. Never Vote democrat

[@alanrussell6678]

I had to retire early due to their contribution to higher rates which was going to whack the payout on my lump sum pension option if I waited to take it later.

[@johntirish]

You're welcome

[@markochipsmarkochips3866]

The dumb respond revealing their dumb@@johntirish

[@jennifercullen5952]

I’m sorry but “Jessica” is the only employee contributor that doesn’t have a last name? Really? 2022 boys.

[@JC-br9km]

I noticed the same too (really??)

[@13Voodoobilly69]

He addressed this earlier in the comments. Jessica was his wife’s name so he inadvertently didn’t say her last name as it seemed redundant.

[@markguitarlfk]

Nothing would be more terrifying to me than if my plan was to earn 4% from investments!

[@andre1987eph]

Duh