I'm 60 with 1.4 million saved can I retire

[@Will67267]

I retired at 55 with 1 million in stocks and 200k cash. Now I’m 67 still with 1.3 million and 250k cash . My expenses is $5000 a month.

[@pathkris2984]

Have you taken SS benefits yet? What was your asset allocation over the past 12 years? Thanks.

[@Will67267]

@@pathkris2984 I took my social security at 62. I have 80% VTSAX the rest in Cash/CD(4-5 years cash/CD)

[@frankcarone6]

you have done great

[@johnd4348]

5000 a month in retirement. I dont make that working now.

[@RetirementBudgetCalculator]

John that is not good. What kind of work do you do?

[@aviewer9516]

@@RetirementBudgetCalculator I don't think many people do make $60K/year or $5k/mo.

[@RetirementBudgetCalculator]

@@aviewer9516 Really? Do you think they make more or less?

[@davidpetersen1]

Man.. if you can't live 20 years on 1.4 million you need to seriously need to re-evaluate your priorities.

[@slmunney7760]

The couple is fine, but the model is critically flawed. The model assumes a 3% nominal return rate, which is equal to the assumed spending inflation rate in retirement of 3%. Any reasonable projection would assume a rate of return of at least 3% above retirement spending inflation over a 30 year period. I also don't understand how they are going to pay off a $100k mortgage in two years with $1k/month mortgage payment.

[@cgong415]

The model is too simple, need to use Monticalo simulation

[@stevewright9340]

Ya, me either. The mortgage math didn’t add up

[@Carnegiered52]

Most of these “retire early” videos are ridiculous.

[@tedstidham]

How can you pay off a 100K mortgage in 36 months @ 1000/month?

[@scr82566]

It seems like when you added the reduced spending after 10 years it was done in today's dollars. Should that no have been inflated for the 10 years?

[@LizRichardson-c8q]

If at age 59, they have a $100K mortgage left, and only paying $1,000 a month. They are not paying off their mortgage in 2 years. So, huge mistake in his assumptions.

[@sportsman1237]

1:33 With $100K balance in their mortgage and 2:39 paying $1000 a month. How will they have it paid off in 2 years?

[@RetirementBudgetCalculator]

Good catch. This was just a very quick example and I should have thought a bit more about the accuracy of the scenario. This was a mistake on my part.

[@Binatasj]

Mistake like this makes you look less credible

[@frankcarone6]

i am 63 and my wife is 64 we have 2.2 million ,we are not taking social security until 67 , and we are retiring this month i hope we have enough

[@RetirementBudgetCalculator]

Your spending determines what is enough.

[@frankcarone6]

@@RetirementBudgetCalculator very true

[@susanrushin7002]

One of few videos that factors in taxes! For those approaching retirement, do also factor in large ticket items like autos and long term health care.

[@cgong415]

I wonder what one can buy with SS money of $3000 10 years from now. Maybe enough to pay the utility bill for the house one lives in?

[@willtwain1383]

Don't expect to be living the high life, but you can retire.

[@bigjohnson7415]

To me, it's stupid to "Retire" with a mortgage. Pay off everything then consider retirement.

[@RetirementBudgetCalculator]

Forrest Gump said it best. "Stupid is as stupid does." :)

[@davelangley6304]

Do you really need to ask such a dumb question

[@RetirementBudgetCalculator]

You might be surprised.

[@wdeemarwdeemar8739]

I am 51 with 1.4 saved even after the down turn makes me want to retire now,

[@Rottingboards]

I'm with you on that..

[@gwarlow]

Go for it! :-)

[@Rottingboards]

I am now retired at 57. I hope you are also retired.

[@ksmit0111]

Uh, this is kinda silly. Well for your average individual without an unusual circumstance, of Friggin course you can retire. Dudes really

[@RetirementBudgetCalculator]

You would be surprised. Life is getting expensive.

[@BRunner12]

I am guessing these guys take home about $9k w month and they need $8k a month in retirement with a paid off home? They are not saving much and they have spending problem…they should continue working.

[@jimmywalters3071]

It sounds better if they had 1.3 million with no debt, paid off home. What is wrong with getting a part time job you like doing .. many a few thousand $$ to get out the house .. with flexiblity to travel and work when you wish or seasonal job.

[@jimclark5037]

interesting, but with the couple both retiring at 60 I would have loved a word on where healthcare is coming from and how much it will cost them.

[@RetirementBudgetCalculator]

Hi Jim. One nuance that a lot of people don't understand is that affordable care act credits are based on your modified adjusted gross income. So if you retire early and lets say you are taking all of your income from accounts that have already been taxed its possible to have very low income from a tax standpoing and still qualify for the ACA credits and pay very little for health insurance. If that does not work then some people will look at COBRA if they qualify for a time and then others will look into high deductible health insurance plans. But I agree with you that many people continue to work to age 65 so that they have health insurance coverage. Age 65 is the age that many people people become eligible for Medicare.

[@Davek111]

Nicely done!

[@joetambascio4697]

Great video. Best one I’ve seen so far and easy to understand. Thank you

[@RetirementBudgetCalculator]

Thanks Joe.

[@michaelmontana0804]

The simple answer is yes.

[@chucknorris5141]

Not sure if I missed it but where did the money come from to pay off the 100K mortgage in 2 years?

[@RetirementBudgetCalculator]

Good catch Chuck.

[@marcboutin9555]

I was asking myself the same thing. It’s gonna take many more years to pay this mortgage off

[@billw5231]

I noticed this mistake too. Lost confidence in anything else he was saying and stopped watching.

[@nickwest1476]

All I have is 96 acres with nothing saved. I'm screwed.

[@gwarlow]

Start planting your food garden. Good luck.

[@PH-dm8ew]

Is that 5000 spend in 2033 at curent dollars or inflated future dollars?

[@RetirementBudgetCalculator]

In the Retirement Budget Calculator you can set a unique inflation factor for each expense. This way if you have a loan that will be paid off you would not set an inflation factor on the loan. You might want to assume higher inflation on medical expenses and average inflation on groceries.

[@weddingdancemadesimple]

Sorry if I missed the answer some how... How can one access the Retirement Calculator?

[@RetirementBudgetCalculator]

retirementbudgetcalculator.com/

[@josephj7991]

Yes. NEXT?

[@kevinbeardsley3618]

I like this little video because it shows how you click thru the model and ask/answer questions. I have the new pro version....and I am clicking thru......and I have not used Finn yet....and I am able to ask/answer questions.....but a little video like this with the Pro version would be nice. Specifically how create/save base model and the use the scenario and save other models would be helpful. I think that I got a little ahead of myself and did not work hard enough on my base models before doing scenario things.......and things got confusing. This video helped me with the pro version....now I am going back and doing things better. Seems like in your older model you make changes and click on "Future View" to see the results. With the Pro....you click on "Retirement Optimizer"....and that is not crystal clear...and then you need to make sure that the "Strategy eyeballs" are turned off to see the conservative strategy estimates of the model (which is very helpful).That is not crystal clear. I think that I am now going to go back and ask Finn what to do. Just some feedback! OK...Finn is very helpful....I still think that a short video like this ...only using Pro....would be helpful.

[@yankinwaoz]

I noticed that the calculator didn’t factor in medical expenses. They have 5 years of expensive heath insurance premiums between 60 and 65. Then at 65 they have Medicare insurance, deductibles, copays. Two people paying part B plus part D plus medigap plus OOP is easily $1500 to $2000 a month out of their budget. Medicare is on track to go bankrupt in 2026, so expect huge premium increases. I’d assume double premiums plus increases in deductibles and copays. So budget $3 to $4k a month for health. SS is on track to go bankrupt in 2032. So expect a 25% reduction in benefits after 2032. Congress seems completely uninterested in fixing either program and seem to be okay just letting them run out of money. I don’t think I’m one of those chicken little guys who claim that SS and Medicare will go away. They will be there. But they will not be what what retirees get today. My assumptions are a doubling of Medicare expenses (premiums plus OOP) and a 25% reduction of SS benefits. This couple may be better served by moving overseas until age 65. They can buy far cheaper health care and insurance. They can rent out their house to cover their mortgage. Or sell it now and buy when they get back after 5 years of living overseas.

[@johngill2853]

Expect a 25% decrease in Social Security benefits? Didn't Congress in 1983 fixed Social Security the last second And for most seniors what would happen if the 25% cut happened? This scenario will not happen. There may be cuts or tax increases of course but it's not going to be a 25% cut across the board, that is not going to happen

[@feartheturtle9618]

If you plan correctly and hoard cash years before retirement, the ACA is fairly inexpensive. We paid a $0 monthly premium for an HSA plan. And folks should retire debt free. And Medicare and SS will never go “broke”.

[@pattylovesneal]

@@johngill2853 If they cut 25%, 70% of all Americans would be almost living in the street....it cannot happen! They will raise taxes on the ultra rich or not give them SS at all.

[@jacobside2656]

I don't know how this is even a question. Yes you can.

[@leesteggles6367]

Only the middle and upper classes can afford pension schemes .for the lower paid earners in the uk who are being opted in to pension schemes ain't worth the paper its written on. And as only 18% of people in the uk reach pension age . So for us pensions is a false economy..

[@prancer4743]

Yes you can listen to Ramsey 7 baby steps put your money in 8% bank shares fully franked 😃👍😉

[@nicholasrunowich371]

That drop in year 2033 - what thought of in today's dollars - because that is how one thinks of it-- yet it left it as $60K ($5K per month) for year 2033 - that is Wrong !!! You need to adjust that $60K for the inflation of all the years before 2033 - to be apples for apples . Am I right or am I wrong ?

[@RetirementBudgetCalculator]

The calculator adjusts future expenses based on the inflation factor that is used. Because $5,000 today will not have the same purchasing power in 10 years. You will notice in this example that we said "What if" we drop the expenses to $5,000 per month. And then I also created a scenario to say "What if" expenses were $6,000 per month. In this example we also lower the budget when the mortgage is paid off. Principal and Interest expenses on a mortgage payment do not increase with inflation. No one knows what the future holds. But the calculator is designed to give you the flexibility to enter your "What if" models so that you can test and see if you have saved enough to retire. It is always a good idea to have a financial advisor double check your work.

[@Delta922]

Can you adjust for a divorce midway into retirement?

[@RetirementBudgetCalculator]

I'm sorry to hear about the divorce. The Retirement Budget Calculator allows you to make changes to reflect the divorce.

[@bernie9728]

You can retire with zero dollars. All it takes to retire is to stop working. The definition of "Retired" is literally "no longer working". That said, you have worked your whole life. You already know what expenses you have. You already know what it's going to take to pull it off, so why ask the question in the first place?

[@RetirementBudgetCalculator]

@bernie9728 People want to have confidence to know they have saved enough to retire. If their guaranteed income does not cover all of their expenses they will need to dip into their retirement accounts to cover the difference. People don't want to make a mistake and retire too early. So it makes sense to take a little time upfront to crunch the numbers.

[@bernie9728]

@@RetirementBudgetCalculator I understand that. By the way, we all learned how to calculate this when we were in grade school. Back then we called it math. If you have to ask the question, you are not ready. When you know, you know. It really is not that comlicated. The only way to make your decision easier would be to know, in advance, the date of your death. If you don't have that you are just guessing. For the record, I retired 8 years ago at age 62. Here's how I made my decision to retire. My wife told me one day that she thought I was working too hard and that she wanted me to retire. So when I went to work the next day I gave my 2 weeks notice. 😁

[@kirk8429]

Does this take into account the annual cost of a financial planner?

[@RetirementBudgetCalculator]

It could. When you build your retirement budget you want to account for all of your expenses.

[@sbkpilot1]

1.4 with house close to paid off, silly question.. next

[@RetirementBudgetCalculator]

Is it? You might be surprised.

[@chucknorris5141]

It's not silly. If people have a certain lifestyle that they would like to maintain in retirement it is a great question. Everyone's situation is different.

[@TheFirstRealChewy]

It all depends on your monthly expenses. However, it's safe to say that someone with $1.4 million invested, without factoring in social security benefits, has options. It would be more about what lifestyle you want in retirement.

[@fmzghazi]

I am sorry.. I cannot see the 'Future view' or other 'orange' high-lighted' column as they are for premium package. Can I just get the premium package for one month?

[@RetirementBudgetCalculator]

Hi FMZ. You can sign up for the monthly subscription and cancel at any time.

[@fmzghazi]

@@RetirementBudgetCalculator Thank you so much! This is probably the best retirement calculator I have seen. One item I am still unsure about is the Roth Conversion that I would like to make each year (starting from 2023) and the tax implication . I like to be in between12% to 15% range. I shall make AS MUCH conversion and by the time RMD kicks in, my total income would stay in 12% tax range!

[@RetirementBudgetCalculator]

@@fmzghazi Be sure to watch this video regarding ROTH conversions. kzbin.info/www/bejne/m6ukdYyrfK2cY9E

[@johnadair6108]

Great! Thanks

[@RetirementBudgetCalculator]

You're welcome!

[@MartyMeyerdierks]

Calculator seems buggy. Signed up and started entering my data but some tabs to enter next data are non responsive. And I was saving data, at least I thought I did when I clicked on "save", in the middle of entering data I got a message saying I got logged out. When I logged back in none of my data was there and have to start all over.

[@RetirementBudgetCalculator]

Hi Marty. I am unable to re create these issues. Which tabs are non responsive? RBC requires an internet connection to save.

[@MartyMeyerdierks]

@@RetirementBudgetCalculator It seems #3 Budget tab is not responsive. Eventually after selecting other tabs then coming back to it it does finally respond but I can confirm that that tab is not working properly at least on my end using Chrome browser on PC. And yes my PC was 100% connected to internet the whole time when I was clicking save unless my log-in was timed out for some reason while entering data.

[@RetirementBudgetCalculator]

@@MartyMeyerdierks Thanks for letting us know about this experience. I am unable to recreate this bug. Have you updated Chrome? Let me know if you continue to have this experience.

[@MartyMeyerdierks]

@@RetirementBudgetCalculator Just gave it another go and same result. So many unresponsive buttons on this website. I dont know it's because I didnt sign up for RBC premium but this RBC is unusable on my end after entering all applicable data to my best ability. Well that was my last attempt. After trying several times over few days I think I learned my lesson.

[@irishrover1417]

Good video !! For the slow-go years might be good to adj the spend of 60K inflated to the first slow-go year. Also should they not have a large outflow in 2024 to pay off the 100K mortgage. The monthly payments of 1K for the next 2 years wont clear that off :) I like all the functionality here to play around with investment return. One thing that sometimes gets looked is the option to sell the property to downgrade later in life.

[@RetirementBudgetCalculator]

I was wondering if anyone would notice the mortgage payoff. Good catch!! There was one other small mistake I noticed. See if you can find the other error in this hypothetical scenario. :)

[@irishrover1417]

@@RetirementBudgetCalculator ok I’ll check later. I was very surprised when expenses went from 6 to 7k per month they ran out of money but need to look a little close at that later this evening :)

[@irishrover1417]

Because when social kicks on the withdrawals are way lower right

[@RetirementBudgetCalculator]

@@irishrover1417 It is true that when social security kicks in the portfolio withdrawals are reduced. But that is not an error.

[@RetirementBudgetCalculator]

@@irishrover1417 Remember the spending starts with 7k per month but increases with 3% inflation each year.

[@TheRedDevil_NC]

Im 54 with my home paid off and about 1.5 mil in cash. No debt.. I dont think I can retire. Income slowly drying up though as self employed person. Your money goes away quick even with boring life like I lead. You pretty much need to work just to pay for health insurance which goes through the roof as you age. Nobody knows how long they will live either. Life is a catch 22.

[@mozerm]

I complain about my taxes here in Canada but the one blessing is that I never have to think about healthcare costs in retirement.

[@terrybrown3486]

1.5 mil with a 5% interest rate on cash is 75K a year. Be a bit more adventurist with your money and invest it.

[@schallrd1]

McDonald's is hiring.

[@RetirementBudgetCalculator]

😀

[@Markrtsoon]

Very good piece. At age 61, we are in the process of planning for retirement. Current we have no debt, a paid for house of $620,000 and about $2,500,000 saved. We will have about $1000/ month pension and my FRA SS will be about $3500/month. Will use your calculator to see when could we retire. Thanks.

[@tomwalsh4592]

Not knowing your monthly expenses, my bet is you are in fine shape

[@premchettri7170]

Yea and wait for a day to die !! I will never retire coz I retirement is basically you are being obsolete , condemned by society and made you unworthy of any kind !!

[@RacerX1672]

Congrats!💵💵💵

[@sentfromgeemail302]

My wife and I are 55 year old Australians dearly wanting to retire but scared we don't have enough. We have a net worth of $1.7Mil Australian dollars invested in the stock market, plus a paid off home, and have been spending $55K AUD a year on expenses in recent years. We realise you may not be across Australian rules, but do you have a sense for whether we can retire now, not run out of cash, and leave our home as inheritance for our 2 kids? There are so many variables it seems impossible to know.

[@terrybrown3486]

If I were you, I'd save 6 to 12 months living expenses (27.5 to 55k) in cash, then go for it. Drawdown from your investments that have gained. Use your cash reserve when markets down and no gains available. If you have a good mix of investments, that should be doable.

[@sentfromgeemail302]

Thanks Terry.@@terrybrown3486

[@teams3345]

How much of your net worth is your home?