I'm 60 With $1 Million How Much Can I Expect To Spend In Retirement

Do I need a Roth Conversion? How long will I live? Will I run out of money? What if I die before my spouse, will they be ok? These are some of the questions we look at in this case study of a couple in their 60's with $1 million. We take a look at how much they can expect to spend in retirement. We'll also take a look at some of the things that might go wrong while in retirement.
00:00 Introduction
01:06 The “Light Bulb” Moment
02:38 Parameters
03:30 Income Plan
05:54 Inflation and Your Income Plan
07:10 Social Security
08:29 Monte Carlo Simulation
10:43 Sequence of Returns Risk
11:19 Roth Conversions
12:14 Biden Tax Legislation Livestream
13:27 Required Minimum Distributions
15:06 Identifying the Shortfall
17:46 Social Security Income Analysis
21:05 Play Zone
27:53 Your Portfolios and Time
28:27 Contact Us and Subscribe
#incomeplanning #retirementplanning #retirementincome #retirewith1million #retirementat60
Working with a CFP® professional can be an important step toward reaching your financial goals. Not only do these advisors meet rigorous education and experience requirements, but they are also held to some of the highest ethical and professional standards in the industry.
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CFP® professionals must master nearly 100 integrated financial planning topics, including:
- Investment planning
- Tax planning
- Retirement planning
- Estate planning
- Insurance planning
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In addition to completing a comprehensive financial planning curriculum approved by the CFP Board, or equivalent academic coursework, CFP® professionals are required to complete continuing education coursework, including a CFP Board approved code of ethics course, to ensure their competence in financial planning.
Examination
CFP® candidates must pass a comprehensive 6-hour CFP® Certification Examination that tests their ability to apply financial planning knowledge in an integrated format. The exam is notoriously difficult and only 64% of people who took the exam in 2017 passed. Based on regular research of what planners do, the exam covers:
Establishing and defining the Client-Planner relationship
Gathering information necessary to fulfill the engagement
Analyzing and evaluating the client’s current financial status
Developing recommendations
Communicating recommendations
Implementing recommendations
Monitoring the recommendations
Practicing within professional and regulatory standards
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CFP® professionals must have a minimum of three years experience in the personal financial planning process prior to earning the right to use the CFP® certification marks. As a result, CFP® practitioners possess financial counseling skills in addition to financial planning knowledge.
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As a final step to certification, CFP® practitioners agree to abide by a strict code of professional conduct, known as CFP Board’s Code of Ethics and Professional Responsibility, that sets forth their ethical responsibilities to the public, clients and employers. CFP Board also performs a background check during this process, and each individual must disclose any investigations or legal proceedings related to their professional or business conduct.
Are you worried about what you need to do so you can retire with an income? If you have $500K or more and would like a partnership with a firm to help you manage your investments and financial plan as in these videos, click on this link to connect with our advisors:
click2retire.com/im60with1mill
Do you have a retirement plan that goes beyond allocating funds to truly fit your needs? We can help you create a retirement life plan customized for your retirement vision and legacy. Call us at [phone]

[@FelineAirstrip]

Recently, I've been pondering retirement. I've also want to put $800K into the stock market but i need an approach that will align with my risk tolerance and financial goals to secure our future

[@WestonScally7614]

While the stock market is promising, expert guidance is essential for effective portfolio management

[@SaintYvess]

Opting for an inves-tment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 85% since 2022

[@sting_grayl]

Who is the coach that provides guidance for you? I urgently require assistance; my stock portfolio is stagnating, and I need investment advice for retirement.

[@SaintYvess]

I take guidance from *Jennifer Leigh Hickman* to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.

[@SaintYvess]

She goes by *Jennifer Leigh Hickman* I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.

[@Richardcarlett]

With Roth IRA, the money you are contributing has already been taxed. At any time for any reason, you can withdraw your contributions tax-free and penalty-free. Additionally, any earnings on investments can also be withdrawn tax-free and penalty-free, Not sure how much to contribute, I'm still at a crossroads deciding if to liquidate my $338k stock portfolio.

[@jeffery_Automotive]

For the average person, the strategies are fairly demanding. In actuality, most professionals who have the necessary abilities and knowledge to complete such occupations do so successfully.

[@DavidWilliams-qr5yj]

At 69 I retired 9 years ago at 60 years old with 1 million, I have spent an average of $45,000 per year and I still have a net worth of $1.1 million. I'm enjoyed the first 9 years of my retirement I'm hoping for another 20:-) the first 9 years I traveled extensively internationally and went on cruises at least once a year as well as more than a dozen road trips all over the USA and all over Thailand as well as bali, Kuala Lumpur, Hong Kong, Shanghai. I'm loving retirement and enjoying helping out giving to the poor or the disabled

[@info781]

That is what I want to do, you are a role model.

[@randyeilers4061]

In exact situation as you but I have $40k in bills before I even start spending on trips

[@honorhonor3352]

How much is your Health Insurance premium?

[@davidfolts5893]

A positive sequence of return result.

[@DavidWilliams-qr5yj]

@@honorhonor3352 I'm self-insured. In the USA I have Medicare Advantage it is free with my medicare. In Thailand Healthcare is Pennies on the dollar and the Thai health insurance is better than us health insurance. Living in the USA and paying for health insurance premiums is a scam! There are lots of countries that have actually better health care than the USA. America has brainwashed its citizens to believe that their Healthcare is the best in the world. Talk to any doctor and they will dispute that. Healthcare premiums are expensive even in Thailand I don't pay for them I pay for my health care out of pocket it doesn't amount to $200 a year and I go to the doctor often for wellness checkups

[@kevincooper0]

Well here's a food for thought for folks about to retire or plan their future: Place a sizeable portion of your capital/savings in fixed-income securities like treasury bills, corporate bonds, government securities, debentures and let it grow. It will take you far I promise.

[@annMarien]

Have you considered that If one has a problem saving then maybe it's because of a tight financial budget or something else which means there'd be nothing to keep aside to even invest in the first place.🤦🏻‍♂

[@kevincooper0]

@@annMarien I’m not trying to be insensitive, I understand the situation is not the same for every one but it's very important to cut your coat according to your size and find contingent ways to save, then you can find the best options to invest that money. It's possible for anyone.

[@annMarien]

@@callumfrank That idea doesn't quite sit well with me, letting another person manage your money for you plus did I also add it costs money too!!

[@annMarien]

@@callumfrank Most of them I know usually act as glorified salesmen. And they all want your money lol. Since yours is a bit different please can you recommend so I can do my research?

[@schukerD]

Most people live paycheck to paycheck so have nothing to invest. Even if they do invest something comes up and they have to take it out anyway. Most people don't have extra money and those that do waste it on something dumb.

[@robertthurmond8161]

Joined the Navy at 18 with 7k in the bank. I did janitorial and smoked a lot of pot in high school. Left the Navy after months with 40k in the bank. Invested 30k in the S&P stocks. Started working at UPS, Exide Battery and did concrete on Saturdays. Invested 1k a month every month into it with my Financial advisor James Fletcher Brennan, Cashed out 350k from the S&P Cashed out and Semi retired at 31. Took a year off. Traveled. Came home and started working part time just for the insurance, entertainment and pocket change and still investing in stocks with a 3 million net worth, Work isn't work when you don't have to work. Becoming wealthy can be done in few years. It feels like 60hr work weeks. Feel the pain of discipline early or feel the pain of regret later. I wish everyone well!

[@chrisanthony3560]

I completely agree. I'm 60 years old, recently retired, and have relatively little retirement money compared to the value of my trading portfolio over the previous three years. I also have no debt and roughly 1.2 million dollars in other retirement accounts. Actually, the investment advisors may only be neglected rather than rejected. You only need to investigate them to locate a reliable one.

[@jerryscotfield6913]

I’m 50 and my wife is 44 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle in the stock market made it possible for us this early even till now we earn weekly. Thanks to FIRE movement.

[@Encourageable]

My in-laws have 1/3 of that and they are retired and happy. I don’t think they are missing out on anything they enjoy. With $1M you should live as simply as possible - the peace of mind of knowing you have enough for most emergencies is priceless.

[@TheGregWallace]

How old were they when they retired?

[@Encourageable]

@@TheGregWallace about 63 I believe.

[@neomage2021]

If that's what you want. I plan on continuing to travel, have a vacation house, etc. Im going to need 3.5 million or so to retire.

[@DavidWilliams-qr5yj]

@@neomage2021 I did it on 1.1 mil and have been traveling internationally. But living the majority of the time in Chiang Mai Thailand. Which cost about 1/3 of the US costs. 1.1 mil has grown to 1.4 mil in the first nine years of my retirement from 60 years to 69 years. You don’t need 3 million. However I had 3.5 million but I gave more than half of thatTurn the ball and chain to get away and was happy with that arrangement. It worked out well. You can easily travel internationally and go on cruises I can also afford to support my tie wife and her daughter all the way through college no problem :-)

[@johnhankins9073]

You have packed a lot of good information into this. The one thing I think is missing is a discussion of this couple's expenses preretirement. The spending plan does make sense without understanding their current actual expenses and spending patterns.

[@jamesmarsh8707]

Excellent presentation!! One of the best I’ve seen.

[@ronaldjones996]

Good overview! All good points! I am almost for retired 2 years and got these covered.

[@Thomas1954]

Good video. Make a spreadsheet, play with the numbers and assumptions. Thanks for a good overview.

[@jwalkerC21]

Very good - opened my eyes to some things I had not considered

[@patrickchappell5821]

So very helpful - thank you! My wife and I are 54, plan to retire at 60. I'm working but already drawing $5000 a month school pension. Plus we should have close to a million at 60 in retirement - plus a paid for house to sell (we're paying on the condo we'll move to now). This makes me feel good about supplementing our income with 4% or so each year, vs getting some kind of annuity.

[@craigcooley9518]

Thank you, Well done. I love the software you use. Is it available commercially?

[@diane.moore-]

I wasn’t financial free until my 30’s and I’m still in my 30’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made. Great video! Thanks for sharing! Very inspiring!

[@JackBJacobs233]

I just googled her I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.

[@rebecca_burns14]

This reference seems valid.. Just looked up her full name on my browser and found her webpage without sweat, over 15 years of experience is certainly striking! very much appreciate this.

[@rjb7260]

VERY well presented thanks for sharing!

[@hilarykey8189]

Hey, thanks! I’m 47 and n ver quite thought of things this way before. How massively helpful. 🙏🙏🙏

[@schikashap8633]

Why do people look for ways to avoid and eliminate taxes, and then turn around and vote for people that raise taxes??

[@frankm2385]

Some people are just stuck on stupid.

[@brianmeegan6384]

Maybe because they do not want to support the candidate who supports an Insurrection.

[@schikashap8633]

@@brianmeegan6384 BS on your libtard Insurrection nonsense, pit breath

[@robertsleeth861]

Because they're idiots?

[@robertsleeth861]

@@brianmeegan6384 SO vote for the party that supports domestic terrorists that burn down hundreds of businesses, destroy people's livihoods, and harrass and beat up innocent civilians. Got it.

[@billyrayband]

You should do a separate video on how to get a solid estimate of your expenses during retirement. That is step 1, and the earlier you retire, the more important it is. Lifestyle, debt, health varies greatly.

[@jdgolf499]

Best advice I ever got, was that about 2 years before you plan to retire, use a credit card to pay for everything, regardless of how small the purchase. This will give you a record of exactly how much you spend. This is the start of your retirement budget. It is amazing how much people spend with cash, be it a bottle of pop at the gas station, a meal at rhe drivethrough at McDonald's, etc.

[@davidfolts5893]

@@jdgolf499 Don't expect what you don't inspect.😀

[@-0909]

Expect that they expenses will go up! Its retirement why limit yourself? Go out spend money and have fun. Expect higher returns while your saving and into retirement. Start with a investment return that you think will work than 10x it!

[@bobby6310]

Looking forward to seeing your video presentation at the end of September. I’m sure the 8 1/2% inflation rate is going to have a big impact on everybody’s portfolio and retirement plans.

[@GrouchyOldBear7]

Thanks for the video. I enjoyed it.

[@travgirl9197]

I would like to see more videos on single people. I would like to see what extra steps are needed since I don’t have another person to depend on financially

[@MB-uy5kh]

Same here! I am a widow with only one SS & Pension to count on.

[@TheOky777]

I too would like to see a single person scenario .

[@aclassact32]

@@TheOky777 me too

[@janereinhardt4715]

Me too regarding singles, but many retired people are still in the accumulation stage because we are spending less than what we are taking in each year. In this long bull market, it is pretty common. Not forever, not guaranteed, but for the past several years.

[@jamesmerritt3267]

@@TheOky777 If you see that the person will only have 10 million to retire. This video makes zero sense. He can spend that 1 million in a minute if he wanted to. If he has a stroke tomorrow that 1 million will gone the next day. Very few people have a million laying around. At his age he went through the financial crisis and that wiped out many.

[@comeconcon569]

With one mill you can't afford a lavished lifestyle,but a simple lifestyle.

[@rjb7260]

Very informative well done!

[@jeanneeber]

Excellent video! I'm definitely Subscribed!

[@OakHarvestFinancialGroup]

We appreciate it and thank you!! Happy New Year!

[@mayobabble]

Pleases don’t forget about the assisted leaving cost you may have to payout of your retirement account.

[@fonz-ys6xu]

The start of the video, where you have all these important questions about retiring with your hard earned nest egg, is exactly why my wife and I searched for a trusted financial advisor.

[@danielaragon5755]

Thanks for this informative video

[@Bran08Eman]

Enjoyed the insight. Let the financial planner do what they are best , growing your portfolio based on your risk tolerance. When to retire "Distribution Phase" is totally up to you. I like my advisor, but it would be a conflict of interest to ask that question. Compensation depends on my continuing investing and him following industrial norms. With a little arithmatic and self evaluation, you can figure for yourself. Keep in mind, YOU CAN'T TAKE IT WITH YOU....

[@calebmelton5989]

No need to waste money on a planner.

[@mikesilverman705]

I like the information you have for us, but good luck with that low 2.5% and even the 3.5% CPI (inflation rate) in 2021 and moving forward.

[@katana1960]

Agree, I think they make these leaving info out so you'll have to hire them to work out your individual situation.

[@ariefraiser140]

If it's not a stock market crash people are fearing it's something else. Will high inflation be here and continue? Who knows? I just know to make an assumption on 20-30 years of retirement you don't just use one data point.

[@tjtreks7134]

Even if Inflation isn't transitory, if you have $1M+ in investments already, then all that means is that you need to tweak your allocations towards Investments that are more profitable during high inflation and perhaps adjust that your annual withdrawals may not go as far as initially thought. It's all the rest of us that are more f**ked...

[@andyharman3022]

The low inflation rates he was assuming really jumped out at me, too. His slider didn't even go above 5.25%. I remember inflation rates of 18% in the late 70's. Don't think it can't happen again!

[@katana1960]

@@tjtreks7134 I know, I have the one million too, and watch all these shows that say it may not be enough, especially with inflation starting now. But then I see other data that says I'm in the 1.7% of Americans with over one million, so I always wonder about the rest of the country. I have 5 brothers and sisters and I know that none of them have that kind of money stashed away.

[@RobertLinthicum]

Spending less would solve most of this strenuous prediction exercise.

[@nickbargas7352]

Quality information!

[@marshallhosel1247]

Neat tool. Enjoyed the video. Thanks.

[@Lianne459]

Thank you for this video. It makes you think. I think I have too much in 401, but I have Roth as well. Conventional thinking is you shouldnt touch the Roth and let it continue to grow tax free as you age, but that makes you pay taxes on the 401K money should you need it. Lots to ponder, but thank you.

[@ddellwo]

Better to pay taxes on the 401(k) money gradually as you need it than to get drilled later in life once your RMD’s start to kick in! Goal would be to have your 401(k) drawn down enough by 72 that RMD’s are a non-issue - defer your Roth withdrawals (and if possible, Social Security) and use those to fund your later retirement years.

[@looloo6322]

Take the million, go to Vegas, talk to casino management. They will give you one $1million dollar chip. Walk to the roulette table, put it down on red of black. 49% chance you'll win. You'll either double your money, or be entitled to government freebies. A win-win situation.

[@robertdean6222]

Scary that someone would actually do that !

[@aj1918]

This was excellent…..thank you!!!

[@arieltrajano1864]

Great video thank you for sharing

[@ssimpson1485]

Would like to see similar video explaining impact of a $4000 monthly pension at retirement.

[@clagueb3686]

You need an explanation?

[@pathkris2984]

For the general assumptions made in the scenario discussed, what is being expected as the return from the portfolio of stocks/bonds? I know this could vary quite a bit based on risk tolerance and on asset allocation, but checking to see for the scenario described (100K for 10 years, 75K for 8 years and 50 K to infinity) - what's the expectation of average return from the market? Thank you very much.

[@susieq9186]

Thank you. Awhile back I saw a video talking about soon to be retirees being in shock when they realized they were going to start drawing money out of their savings once they retired. This hit me like a ton of bricks. No way did I want to take money out of my savings. I made a new plan. Trying to work to age 70. That said, when my husband passes away, I will probably have to start taking some money from my savings.

[@MichaelToub]

Great Video!

[@peterkimcpams9385]

Move to Mexico!! I own my home outright in a 27 hole golf resort on the beach with 24 hour security (50 miles south of San Diego), and my fixed monthly living expenses is less than USD500. I made a move at 44 and have not looked back.

[@info781]

good plan

[@happyappy19931]

If it’s so great, why are so many coming from MEX to the US?

[@peterkimcpams9385]

IQ< 90, obviously...will not waste my time arguing with you...

[@janibeg3247]

depends on your social security and if you get a pension.

[@williewonka6694]

Retired two years ago. Still in the accumulation mode. Suppose rampant inflation will change that.

[@dennisfrancisco5686]

I wish there were videos like this for the Australian setting/scenario. I’m 62 and my wife is 61. Currently we are talking to a financial adviser and waiting for our next meeting.

[@rogermasadi8856]

Excellent analyses and recommendations. Question are the withdrawals before taxes meaning $100,000 withdrawal will provide $75,000 after taxes for annual spending ?

[@NormanGhali]

Recently, I've been thinking a lot about retirement. It's difficult for me to decide how much I should spend and how to invest my savings. I've heard of index funds and exchange-traded funds (ETFs). They provide diversified stock market exposure while spreading risk. I have over $400K in savings; when should I begin investing in the stock market for retirement without taking too many risks?

[@lisabirkner6212]

Food for thought on long term care. Mom was in a good facility, not the top of the line but good and was on hospice for her year and half so that helped with medicine and equipment. The cost of that stay is now $10,000/month, $120,000 a year for a semi private room. It would have been less at home but we physically could not do the care anymore. To plan, thinking that the big money output is going to be all on the front end is short sighted and could land you at age 88 or 90 in a place you really don't want to be.

[@teams3345]

I retired 7 years ago at 57. I now have a couple of million. Living on about $50,000 a year. Take a couple of cruises a year (first class) and just like doing anything we want. We do not spend much except on vacation and food. We have a brand new house and cars. All are paid for.

[@OakHarvestFinancialGroup]

Hey @teams3345! We're very happy to hear that - congrats on your retirement!

[@KarlGrabe955]

I have been retired for five years now. Although I've been adhering to the 4% rule, things are challenging as I did not anticipate. 30% of the $600K I invested in st0cks is lost to the market. How can I diversify my portfolio for retirement

[@Nernst96]

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.

[@OakHarvestFinancialGroup]

Hey @KarlGrabe955 and @Nernst96, thanks for watching and commenting! If you ever need the help of a financial advisor, we'd love to help - set up a complimentary consultation here: click2retire.com/im60with1mill

[@user-od9iz9cv1w]

I had the light bulb moment at 60. We were in a similar position. I was earning well and enjoying my job, so we deferred retirement till 65 and darned near doubled the savings. That gave enough of a buffer that we have no worries. It is hard to appreciate how much comfort that brings to the party. I don't worry about inflation, market crashes or longevity and that alone makes retirement more enjoyable. I'd rather leave money on the table than worry about it all the time.

[@OakHarvestFinancialGroup]

Great story and thanks for sharing!

[@investgrape101]

👏 I completely understand

[@kbro7484]

How much did you retire on?

[@user-od9iz9cv1w]

@@kbro7484 Basically a nice house in Toronto and a similar value in cash.

[@elisalyles1466]

With 1M how is it not gone in 14 /15 years if taking 100k per year for 10 years? Plus increasing cola?

[@Rushmore222]

Cool. My wife and I are already in the slow go to no go layers and we haven't even retired yet.

[@sfdvr2]

Thats probably whats keeping you going well. The need to get up and stay on track... Use it or loose it.

[@tiago3106]

What an amazing coach

[@bernie9728]

It's your money. Spend it all. To be fair. Set aside money for emergencies. Set aside money for your final expenses. (this can be prepaid) Set aside the amount of money you want to leave to your next of kin to fight over and then spend the rest. You can't take it with you. One more thing. Each of us learned how figure out how long our money will last. We learned it in Grade School. Back then, we called it math.

[@aircvr4175]

Pulling out $100k/year for 10 years seems like a poor way to retire compared to taking that same $1 Million and putting it into a 5 star ETF vehicle like JP Morgan's JEPI (7.1% dividends/year circa Nov 2021) and large pipelines like EPD (7.97% divs) which would pay you $75,350 per year in income while leaving all of your nest egg intact save for any non-realized (because you aren't selling them) changes in market prices for them. Even if the stock market dropped your holdings by 17.5% every year (an absurd worst-case scenario), you'd still be $3,500 ahead of the same retirees who pulled out $100k/year while having no nest-egg-income.

[@xyzbummer3276]

Love watching your presentation. What software you use?

[@toddmick8563]

Fantastic explanation.Thank you!

[@thomasharrison899]

1M is 10x100K so you must be assuming a Steller return to have much left after the first 10 years.

[@joedessenberger2048]

Great video again! I am planning to retire at 60 (wife retires at 56). Your videos really help us in thinking through our plan. Only variable we are watching closely is the runaway inflation that is underway. This is the only thing that could keep us in the workforce longer.

[@NipItInTheBud100]

oh, i dont think inflation will continue at these rates as he explained in the beginning. We have had such low inflation for the past decades it was bound to catch up eventually!!

[@DavidEVogel]

Would your investments cover "runaway inflation?"

[@alcw625]

How are you getting medical care? Medicare isn’t till 65….private insurance is 2k per month or more

[@joedessenberger2048]

@@alcw625 Served a lifetime in the Air Force and Air National Guard. Start collecting retirement and have military retiree medical beginning at age 60.

[@lewisr7700]

@@NipItInTheBud100 this comment didn’t age well

[@scottwilliams1047]

Good video, was wondering if you do fee only financial planning?

[@swright5690]

Light Bulb Moment. An apt and accurate name.

[@basementstudio7574]

Thanks for the video. Makes me feel good about where I am financially. Confirms what my financial guy says. I'm 60 and my wife 56. Between the two of us we have 1 million in our 401K's plus savings. We plan on retiring in 4 years when the house is paid off and will have zero debt so It looks like we'll be ok. Not bad for a teacher and a mid level GS employee.

[@Fornwith]

Whats gs?

[@basementstudio7574]

@@Fornwith Government employee. GS is the government pay system

[@christoomey9890]

You leave out the defined pension and health care benefits you will receive. The million dollars is gravy……….

[@joycewright5386]

Sadly many people do not receive a pension.

[@A.Musa76]

Are you on the new or old system? If you are on the new system the match is great with the 5%

[@flexjay87]

Spend all of it , you cant take it with you, and there is no guarantee your health will always be good.

[@youtubeofficialpoll4542]

I thought Biden or Harris made this comment. Except I didn't see "Screw the next generation" in the comment.

[@andyshires1679]

Good info…thank u

[@rogwarrior1018]

Really good video. I hear the word "math" and I run, but you made this so simple.

[@user-np3qw1ze3b]

Take simple easy lifestyle, take care of your health, that 1 million will last longer. Nowadays everything is expensive, 1 million is actually a small amount.

[@Userqvcqt]

Taking care of health is the best advice for sure.

[@rickstokes2239]

Depends on your definition of ‘retirement’. With the rise of homes, cars, cost of living, it’s becoming increasingly harder. Plus - how much golfing can you really do?

[@hogroamer260]

What a sad thought! Retired 5 years now and golfed ZERO times. Love home improvements, helping others, everyday tasks, bike riding, boating (and maintenance) and a little travel. Never bored!

[@rickstokes2239]

@@hogroamer260 We’re not discussing those already retired, we’re talking about how with rising expenses, high home cost and vehicle cost, taxes, cost of living etc that make it increasingly difficult for working people to save and plan for retirement in today’s market. The median home cost 30% more in just the last few years.

[@hogroamer260]

@Rick Stokes I get that but your last statement asks " how much golfing can you really do?"

[@ddellwo]

I’d rather keep working if I was forced to golf every day in retirement…..😱

[@johncape7992]

Rick, if you already own your home (and perhaps car) you don't need to be concerned about a 30% house price increase or car prices (for a while). I'm with Hog, you can keep pretty busy with out spending much. Also do yourself a favour and calculate how much it cost you to be employed - ie fuel, car wear and tear, clothing, lunch etc. Now apply that to your having fun in retirement fund.....

[@christinemayopowers]

Very helpful. Thank you

[@OakHarvestFinancialGroup]

Thanks @christinemayopowers! We're glad it helped!

[@rhhornbeck]

Good info, thanks. But I’m curious on one thing. Given this particular couple, I would assume they own a home with no mortgage. A reasonable assumption is that their equity could easily be $500,000. Assuming they want to continue living there, why wouldn’t you incorporate this large component of their net worth (they worked hard to build it) in the analysis? Could use the “new” reverse mortgage to avoid sequence risk, cover tax liability for Roth conversion, or bridge the cash flow gap before taking social security? Some combination of these things could be done without incurring a mortgage payment, and likely leave a growing line of credit for unexpected expenses down the road so they would not have to reduce their portfolio to cover such expenses. Thanks for helping so many with your counsel.

[@reveah61]

I very much appreciate your videos. They provide some clarity for someone like myself who is not sophisticated in money matters. However, I’m hesitant to engage in your services when I see you’re asking for about 1% of one’s retirement balance per year. For instance, in this video you talk about spending $100K per year during one’s “go-go” phase and $50K in the “no-go” phase. If my portfolio is worth $1M, that seems to indicate that I’ll be spending up to 20% ($10K) of my money on your services per year. Am I missing something?

[@OakHarvestFinancialGroup]

My opinion- It's all about value. If you don't value expertise in investment, income and tax planning, along with a disciplined approach and long term strategy then it's easy to see professional fees as a cost. Another way to look at it is if you don't personally have that expertise, what are you costing yourself? Oftentimes, the cost you don't see is the most expensive and consequential. For most people, it's a lot more than 10k per year or 1%. The main reason I do these videos is to help those that decide to go their own way. We can't help everyone, but we can open more eyes to some of the most important aspects and costs of making mistakes in retirement. This channel was never started with the expectation anyone would call us. I just wanted to help people see things they way we do and make better decisions. Ultimately, everyone has that decision to make on their own. Either way, keep watching and thanks for commenting!

[@davidfolts5893]

There are fee-only advisors who do not charge an AUM.

[@59isfine]

I think a baseline on minimum required in retirement provides more information than maximum spending. Needs vs wants.

[@THEL0NEARRANGER]

Correct. You are to spend ONLY 3% of your Total Investments value and not some I WANT AMOUNT. That is insane PLANNING.

[@clarifyingquestions]

I plan to pull out of my RRSP first. This is estate planning 101. And keep investing in my TFSA - this is what I will leave in my will.

[@mrasmussen5506]

Had to look those two acronyms up. Learned they are savings accounts for Canadian citizens.

[@stubby145]

Very good presentation. Thank you!

[@kathyradford7187]

I think the better question would be, "How should I live in order to make this $million last me?"

[@stefanrittenbery1850]

My wife started Teaching at 41. She was offered a pension with a 6% match and 401K matching component or a full 401k 6 % match with a shorter 5 year vested point. This seems like a extremely difficult choice. I have found few video's about how to calculate this choice.

[@DanTheManIOM]

what did you decide ? some of the teachers get free heatlhcare in retirement, that's a big benefit if you retire before 65.

[@theodoregibbons4615]

Talk to a financial advisor about an annuity with growth potential. Keep it in the equities market, your subject to volatility riskk, which will kill your assets if you draw them down in a market downturn.

[@gumballanna]

SOOO much to try and figure out it takes a lifetime to manage yeah thats what i want to do when i retire is fight ,bite, scratch, yell and scream about managing retirement throughout the year chasing the changes just to start it all over year after year

[@paintedbird6791]

start at 30 squat, 30 push-up every day. (your thick thigh will prevent you from becoming a diabetic) by 65 pay off mortgage pay off a Landcruiser make your children be independent then no matter how much money you have left over you will die a happy person

[@MrJrnyfan]

BWAHAHAHA. You have a point. Should be a 100. Incorporate calf raises too. The goal is to be bill free before you retire. Then reality sets in when you are staring at a fixed income.

[@1Tomrider]

Old Batman comics had "millionaire Bruce Wayne." Now it's "~billionaire~ Bruce Wayne"!

[@garychristison5773]

There are 2800 billionaires today so at least Bruce Wayne could fly under the radar and not draw too much attention if he were worth a measly $1B.

[@davidfolts5893]

Perhaps he could get investing advice from Tony Stark!

[@user-hg2tk3xj9y]

If you are planning on securities to stay for heirs to inherit then you should take SS at 62, markets over time will give much better returns that that 6% reduction penalty. Numbers game, but markets work out close to 9% over time.

[@westhavenor9513]

I like the variable analysis. The inflation example is basically reality now, so this couple has only a 50% chance of success. Don't even think about buying a new car unless it's a Toyota Corolla and you keep it until you die :)

[@NipItInTheBud100]

Hot digity...This was the best video! This is the closest video I have seen to what the average citizen might have saved for retirement. Im tired of the "I have $2 million can I retire" or the "I only have $500,000.00 can I retire" videos. This was right in the sweet spot for us financially speaking and really addressed many of the concerns that we have been discussing as a couple as we get closer to retirement. Your roth conversion strategy was exactly what I was needing to hear. Thanks for the great content...as always!!

[@ready2roo24]

I need a I am 60 and have zero video.

[@shade0762]

Totally agree .. this is exactly where I am except I hav a bit more and I am a little more diversified.

[@finspiration2666]

1/3 of retiring americans have zero. The percentage who have $1M is very small by comparison.

[@herb7877]

@@finspiration2666 I agree and they made poor life discussions along the way. You can eat an elephant if you take a bite at a time over a long period.

[@johnp9807]

@@finspiration2666 They are usually not watching these videos. They’re watching “how to go to Vegas with the whole family ion a credit card and save 20% on the buffet.

[@chessdad182]

The bad part of this example is it only represents a small percentage of the population. If you get to this point and have this much, just reduce your spending to a reasonable level. And put the money somewhere safe and diversified.

[@4040smokey]

Small % and they're still not sure if they can retire. Does not bode well for the rest of the peasants.

[@Dave-sw2dm]

I would think that their spending was already well below their means which is why they saved up 1 million dollars.

[@1Mannco]

If they'd just spend 15% less [investing that into index funds] in the go-go and slo-go from $100k to $85k and $75k to $63k, keep the no-go at $50k and if at least one of them got a pension which he doesn't mention is this video and others, I believe their success rate percentage would go up from 80% into the 90's.

[@kennethboehnen271]

@@Dave-sw2dm but now they have to spend less because no more paychecks are coming in.

[@Dave-sw2dm]

@@kennethboehnen271 , not if they were already spending at that level in the first place to be able to accumulate that wealth. I’m also assuming that their house is paid off, they no longer have to commute, contribute to SS, etc. pay less taxes.

[@uwepemberton3768]

find myself in a similar situation, retired a year ago at 62, have over 1Mil in a fixed accountb earning 3%, have pension and SSI that covers more than my expenses and over 100k in cash, I know I should be thinking about getting into the market , but have idea when to start , I have a feeling we have at least another 6 months of pain coming.

[@info781]

You have to count the pension, a 40k pension if like having a million that pays 4%.

[@2cartalkers]

Proper positioning when at a white board is to place your body on the other side, so when facing the audience you are on your right, their left. People read from left to right.

[@skimanfree1073]

Its not that complicated. I'll do it myself and keep the 1 to 2%. keep the pretty spreadsheets.

[@aldeiceci818]

Stay invested and budget 36Kper year to live well in Thailand..

[@mdn4937]

I’m 48 and will have some money saved when I decide to retire I am doing all the right things but still worried about having enough Thanks for the video Subbing to get ideas for retirement

[@maritoreyes6392]

Don’t listen to this jerk. If you reading this comment it’s not too late. Don’t be hard on yourself. All these assholes think you have to be a millionaire to retire 🙄🙄

[@gzackerman]

I retired in March. I’m now 68 with a little over a million. My wife’s public school pension is $70K and my SS is about $32K. I live in a state that doesn’t tax SS income. I only have to withdraw about $3,500/month to equal my net pay (including SS) before I retired. Net of withdrawals, I have accumulated $170K this year, but I know that isn’t going to be the norm every year. What are your thoughts?

[@f430ferrari5]

It seems you actually retired too late but oh well. You just have to be content with being in a higher tax bracket. You could take out a loan on your home and then you have interest expense to deduct from your taxable income. With the loaned money you can combine with other savings and buy rental property. You can accelerate the depreciation and take losses then you can perhaps convert some of your pretax retirement fund into a Roth IRA.

[@knottreel]

I have 200K and am doing just fine. For that to work, you shouldn't have any mortgage or any debts. Also it helps not to have kids or a wife.

[@Unitedflyier]

That depends on if your wife has a good job and is worth more than you🤔

[@wineman88881]

@@Unitedflyier So true!

[@benkim2016]

Really?sounds like you have pensions as well:)

[@PH-dm8ew]

would love to see this scenario with a small pension (say 30000) per year starting at 60. How does that affect the outcome?

[@stevencasperson6072]

Huge impact. $30k per year is equivalent to the income stream generated by a $750,000 portfolio (using the 4% rule). I suspect this hypothetical retiree with your hypothetical pension would be close to a 100% success rate after running the Monte Carlo simulation. Obviously, you’d want to consult your advisor with your specific situation.

[@charlesmichael4070]

Nice video

[@cesarhilario09]

What calculator is the one you are using for those calculations? Is very interesting.

[@Blublod]

Retiring with $1M is doable in the present conditions. Retiring with $1M and high debt is another story. If what one needs is truly $100K per year for 10 years in the initial Go-Go stage, so be it. But having that spending as discretionary instead of obligatory makes a big difference because with the former one can easily scale back as necessary, but not so with the latter. So, to me the key is not just having the $1M + portfolio, but actually having low or no debt.

[@tancreddehauteville764]

That's not a clever approach. Spend like crazy guy for 10 years, run out of cash and rely on SS. Bad idea.

[@willcc5074]

I would say you should not spend any of the $1 million for at least 5 years. Invest in assets that throw off income and only live on that for the first 5 years. Or better yet do NOT retire until you are 65. He is giving terrible advice to live on $100K for the first ten years. Huge mistake to draw down that much of your corpus so quickly.

[@dynamicwellness33]

Totally agree, should be investing in cash flow assets. Live on the cash flow and don’t touch the principle investment.

[@suzanneemerson9787]

I agree. It can really hurt your situation to take out a large amount from your savings early in retirement. $1million sounds like a lot, but it really isn’t for two people. Also, my financial planner uses a life expectancy of 100 for anyone under 70 years old. People are living longer and longer, but not always healthy. Long term care is expensive, and the insurance for that is becoming extremely costly, if you can even find it.

[@JustinMarchegiani]

@@suzanneemerson9787 Could easily turn that 1 million into 2 million by age 67. What a different retirement that would be with 2 million vs 1 million. Live on the cash flow and never touch the principal.

[@aspietoo]

@@JustinMarchegiani don’t forget though, that during the go go years if you don’t spend enough, when you get to the slo go or no go years and are forced to take out income, coupled with any rental income etc from above scenarios, you’ll just be giving more of your savings to the government through taxes on an income that’s too large. It’s a bit of a paradigm shift after years of savings…

[@kensporalsky3784]

You are only partially correct. People have different goals. I’m looking at retire at 50 with 1 million but only drawing about 45k a year. Peoples lifestyles and desires very wildly. As long as they don’t go entirely broke. Who cares what they do.

[@bb57365]

New rate of inflation changes this big time. Higher interest rates and market downturn. Amazing how quick the tables turned.

[@saraw112]

I had to replay around the 18:00 minute mark… did he mean to say if they delay retirement until 70 their chances of running out of money go UP? Is the reasoning because they have no income for those 3 years except pulling from retirement? I’m thinking of retiring at 67, using my 401k from 67 to 70 and then start collecting social security. I hope to have 1 million by 67 and only about 30k in annual expenses. Should this work out? (It’s $600 more a month in social security if I wait until 70 vs 67)

[@gregsdates]

All you financial advisors are all prejudice towards married couples. Almost half of retired people are single.

[@craigrodriguez8384]

You may be correct. But a lot of this is still applicable as an individual.

[@rupe53]

being married makes it more complicated because the spouse also has SS and likely has spending issues.

[@MB-uy5kh]

@Ricky Romans6767 No such thing. My sister thought she had one. She lives in Texas

[@DavidEVogel]

Single or married what difference does it make?

[@gregsdates]

@Ricky Romans6767 I just got divorced...

[@bananapatch9118]

4% rule works….don’t make it unnecessarily complicated.

[@marquezbrown70]

It's not this complex. IF you can save 50 times your annual income you can retire tomorrow. If you can save 30 times your annual income you can retire with a high likely hood of success. In either scenario you simply withdraw up to 4% of your portfolio balance per year (and you can adjust for inflation) for the rest of your life and you still have the million dollars in your account to leave to your heirs.

[@reaganviking]

I would like to see a video on how much you need to retire super early, like at 50 or even 40. How much do you need to do that for various lifestyles/income levels? Then of course how much do you need to save depending on when you start saving for retirement?

[@OakHarvestFinancialGroup]

Hey @reaganviking, thanks for your suggestion! How to retire early is a popular topic, we'll add it to the list.