I'm 61 with $1 Million In My 401(k). Can I Retire?

[@arymniak1]

I have never used a financial advisor and never will. I retired at 62, I will have a very difficult time spending my savings before I die. Debt free is freedom. I don’t need much and my lifestyle is simple. I travel 2-3 times a year. The sadest thing is seeing an older unhealthy person that waited to long to enjoy themselves. No one ever said “I wish I could have spent more time at work” lying on their deathbed. It’s so easy to become a millionaire in the USA, I’m sure our corrupt politicians will make it a law that you can’t anymore.

[@djrychlak4443]

I've worked 20 years in the retirement field. You were correct. Financial advisers are today's version of life insurance salesmen...used car salesmen. They are functionally worthless self-dealing maggots. Not all...I met 1 adviser in my 20 years who added value for the client. The rest....

[@MarkR973]

@@djrychlak4443 nobody needs a planner.. they want your money

[@alanmoore2197]

Most people have very limited ideas about how to plan for retirement - this at least outlines some basic ideas to think about in some kind of framework - you can then play with this yourself. If you have a lot of investments (>$1M) having advisors probably makes sense. For most investors though these costs just eat up your principal since even achieving better earnings isn't going to be enough to pay for the advice. Of course there are many totally useless advisors out there too - perhaps most. Investment advice, tax advice and retirement specific (withdrawal, social security, roth conversions etc) are different fields and even being good at one doesn't make good at all. But advisors can indeed save you money under the right circumstances. But always ask how much? how is it funded? where is the money held? what is their motivation (e.g. what are ALL the things that makes Them money).

[@juanplus3324]

@@djrychlak4443 I'm just gonna echo this comment. You're 100% correct. In today's age of internet, there are so many information out there that you don't really need a FA. Doing some research and evaluate what suits you.

[@TheDrakulie]

Can i ask you how much you had in savings when you retired at age 62 ? I have close to $900,000 and i am 55. Planning to retire at 65 but like to retire sooner. I do not own a house. I am trying to get some good advice on what is possible while maintaining my $120,000 per year income and lifestyle when i retire. But it is very tough to find a good advisor. They all want me to transfer all my money to them before they can give me advice. Please HELP

[@kevin7151]

I feel fortunate that I retired at 57. Am married with two children, who are both in college. Key for my wife and me is that we began saving and investing early in our working careers resulting in multiple 401Ks and IRAs as well as other investments. Set up 529s when my children were born so that I wouldn’t have to dip into savings when they were college ready. Also paid off my home many years ago so our largest expenses now are real estate taxes, healthcare costs, utilities and food. Have family covered healthcare through ACA which is about $15K per year (but not really good). Didn’t have to move to a cheaper locale as we have accumulated enough savings to live comfortably. Another key thing is that we have managed our liabilities, so we don’t have any debt and are conservative consumers. We are not special and feel any individual or couple can have the same end result if they start saving and investing early and manage their consumption habits. Lastly, I manage my own money and have large parts of our investments in index funds.

[@bagsjr1]

Im sorry that your wife had to work. Sounds like it all worked out though.

[@kevin7151]

@@bagsjr1 Thanks for the note. She actually left the workforce when we had our first child 22 years ago and has not returned. She wound up working about 14 years prior to that which really helped us grow our savings. We were fortunate that we could make the choice for her to stay home full-time with our children, as many do not have that option. I hope you and your family have a nice Memorial day weekend.

[@cerbico12]

Good for you. I am in my 70s still work 65 hr/wk live in a 600 room apt and drive a beat up corolla. My retirement plan is to die at work from a heart attack just like my two grand parents.

[@kevin7151]

@@cerbico12 Karl, I recognize that everyone's situation is different. I know it sucks working the hours you put forward. That said, if you are in good health and you have for family nearby, it might be less painful to bear. I want to wish you the very best as you move forward in your own situation. Please stay well

[@GG-wp9zu]

Congratulations on retirement.

[@briangulley6027]

I don't have an IRA and we only have about 185K in ETF's and I retired at 61. I do have a pension from the military and my state job. When I turned 62 I claimed SS. With my pensions and our combined SS we clear over 7K a month. Not bad for a guy with a high school education. We paid off our house over 10 years ago both of are cars are paid off. We have no bills outside of living expenses. We do what ever we want when ever we want within reason of course. Life is good.

[@lifeisshort99]

I retired with $2M at 56 with houses paid off. 6 yrs later I have $2.5M plus properties. My houses and land went up by $0.5M.

[@danpease8395]

Screw working longer. Can’t set the clock back. Go live a little.

[@davidkirk2554]

Getting ready to do that...

[@travelseatsyellowlab]

Due to inadequate planning by some, they have no option but to work longer, unfortunately.

[@jeffm6273]

I did, actually we had $930,000 in our 401k's and about $200,000 in other savings. We're 65 now and we still have $1,050,000 in our 401k's. We get a combined $4,000 month in social security, I didn't claim mine until I was 65 and my wife is on social security disability. We take $2,000 a month from our 401k's and life is pretty easy, but of course we have a low cost style of living.

[@tomscrazyworld9191]

Do you live in NYC or drive super fancy cars? 6000 a month aint no low style living.

[@jeffm6273]

@@tomscrazyworld9191 well, not really. We live in a Houston suburb, we have a 2019 Ford Ranger and a 2020 Ford Escape. I play golf 3-4 times a week (membership is $400 month) and my wife does a lot of quilting. Life seems pretty good for us.

[@hawkeye0927]

@@jeffm6273 I hope y’all budget for Ninfa’s Mexican restaurant!!! That’s worth a portion of my retirement when it comes…!!! Good job guys👍🏻👍🏻

[@nicepokerface3465]

@@jeffm6273 Good for you! Live and enjoy 😊

[@Shadezman76]

@Jeff M, that sounds exactly like my parents retirement except my Dad had a pension from Prudential and he retired in 1993 when I was going into my Jr. year of HS. They moved from NJ to NC and my Dad's membership was about 1k for the entire year. My Mom quilted as well. I can only hope to have the same retirement, minus the pension since I don't have one. Plan B is to qualify for the PGA Champions tour in 5 years. Keep an eye out for me there, lol

[@TalkingGIJoe]

The question is not can I retire... you always can... the real question is what will my lifestyle be if I retire...

[@spinalcrackerbox]

Well, it's always implied that people don't wish to downgrade too much, I would say. Also, the truth is, for many folks out there, if that paycheck stops, they'd be broke very soon. That's not retiring.

[@DougAlesUSA]

@@spinalcrackerbox although I personally agree with your reason axing, when I listen to Dave Ramsey callers, I realize a lot of boomers who have stopped working are broke, in need of help, and hold to the line “but I can;t work, I’m retired!” Then they expect their kids to pay for their lifestyle. If I could take one of those calls, I’d tell them President Tump is 75, President Biden is 78, they are still working and have money. Retirement is a option for people who’s passive income allows them to maintain their chosen standard of living, and you can;t so thats not a option for you. You are not retired, you are broke, unemployed, lazy, and self-entitled. Then add the funny but accurate insult “You are a travel agent for guilt trips.”

[@cisco1dog]

So true, all of this million to retire is folks that want $10 grand a month and ssi. If you work on saving and reducing expenses, you don’t need anything near that. 200k gives you $2k a month for 12-15 years depending on return. That and SSI would be close to $6k a month, with no mortgage, that should be plenty if you have reduced other expenses and bills, most Americans don’t make that much in the working years.

[@jetboat350]

The difference between quitting life and retiring. Being able to sustain yourself.

[@burntblonde2925]

100% agree

[@rajbeekie7124]

Retirement has more to do with how much money one has rather than the age of a person. If you are 50 and can pay all the bills and enjoy a great lifestyle you can retire. If you are 65 and you quit working, but you have a difficult time paying bills and enjoy the good life you are not retired. You are unemployed and broke.

[@mmabagain]

60 years old with $700K in retirement accounts. My company recently sold to a new owner so I am filing for my pension and continuing to work with the new company. Will retire at 62 and start my reduced social security. Hopefully, our 401K's will have grown to $800K-900K by then. House and cars paid off years ago. Being out of debt feels so much better than any shiny new truck, boat, RV, etc.

[@glensmith491]

A friend of mine who is near 60 was so happy his company got bought out because the new company will probably lay him off.

[@alanyoung159]

Congrats on being debt free! I still have a ways to go. Cheers!

[@charlestait5303]

Of course you can!!! Just depends on how you want to live! Thousands live on social security in their RV in Quartzsite!

[@KITLEVEY]

Short answer is that the number of variables make it impossible to get accurate forecasts. It's up to each of us to make their own best guess. i retired when I got tired of working for other people and figured it out for myself. Take charge of your own life and live it.

[@mtadams2009]

I have never met a person in their final days regretting they did not work more. Are we really living longer? Many may live to 90 but the last ten years or so were not really living. I understand some people want to live large and all and that is fine. Many of us simple want to spent time with of friends and family. I love going for hikes, bike rides, beach trips, cook outs with friends and family. If you need nursing care you are screwed unless you have millions. Its to bad our healthcare system is such a cash cow. I am fortunate I invested decades ago and have my health for now. My advise is to treat your body well, don't get sick.

[@Retired-jr3qs]

I retired at 56 and single. I don't own a home. Now 58 years old and life is good. Good video.

[@bgsu5052]

So you are renting your current house ? I am debating renting vs buying right now . I just retired @ 61 and sold my townhouse and received $115,000 to put to another house that I am currently looking for. If I don't find one in 3 months I'll move on and rent.

[@Retired-jr3qs]

@@bgsu5052 Yes I am renting.

[@allenmorgan4309]

I don't know how a 401k works but the historical return on the stock market is 10%. If you had $1million your average return would be around 100k, then if you allow 4% to cover volatility in the market and inflation that gives you an income of 60k per year to live on and allow enough for the account to grow. In theory you could live on 6% returns indefinitely. If you have social security with Medicare and a supplemental insurance you shouldn't habe any trouble as long as you live within that budget.

[@As_A________Commenter]

@@allenmorgan4309 this is pretty accurate, 401k contributions go into the account pre tax and grows tax deferred until you make withdrawals.

[@normhanson981]

Well done mate , I’m the same age , divorced , so renting also . Happily retired . Bought an e bike to try and keep my health bills down , big outlay $5000 , but cheaper than hospital visits . Enjoy your retirement.

[@Batwing2465]

Enjoy the fruits of your labor. "Die with Zero" is the best book ever written on retirement considerations.

[@Sideler74]

This way your family can start from zero all over again and remain broke like everyone else, lol

[@carianin5293]

The government plans for you to die with zero.

[@mjojco]

I'm more of a Proverbs man desiring to be wise by leaving an inheritance to my children and their children.

[@TripleAstyle1]

@@Sideler74 If you raise your kids right they won't be relying on your estate because they will have surpassed your economic achievements already....... But hey if you were handed freebies good for you.

[@767dag]

Said the man with nothing, and can’t understand what happened at 60 and living at poverty level

[@dennisd4027]

54 years old with 1.4 million. Going to work another 3-4 years. I figure that'll be enough "FU" money...it feels good to be in control of your life by being a lifelong saver.

[@robertpowell7172]

Sounds great! You could just spare a part of it and invest with a pro guidance. I practice a subset of Algorithmic trading. I use trade signals from a registered CFA Monica Sullivan Javorcic and tbh it's been a huge relief. Highly diversified portfolio, mind blowing earnings and little to no engagement at all on my part. Check her out online and get in touch. Cheers!

[@ddellwo]

@@robertpowell7172 - Yeah I’m sure he’ll be all over that.....🙄

[@dennisd4027]

@@ddellwo haha, right?

[@alanyoung159]

Good job! All those years of saving will pay off!!

[@wetcake9092]

lifelong savers do not look for 'mind blowing' earnings

[@dougm1985]

why do people think everyone is going to live until 90. MOST don't. retire as soon as you can, take SS as soon as you can. live life now. if you make it pass 80 and are not going to be spending money. the nursing home will take all your money. and your home and anything else you own. i'm 55 , my goal is to quit working at 60. i might have a million in my 401k by then. i might not. i'm going to enjoy life, travel , ect.

[@williamfulk9574]

It’s the corporate class that wants you to think a million isn’t enough to retire. As you get older your spending typically goes down. I say move abroad where it’s cheaper to live and enjoy yourself.

[@lovelife7343]

Totally agree!!!!

[@san209nha9]

@Doug m I wanted to retire at 60 but the problem is the health insurance. You can move aboard for cheaper health insurance and come back to US at 65 for medicare.

[@lovelife7343]

@@san209nha9 you can also check into your states medical insurance . In my state I have 2 friends both went into partial retirement they work 10 to 15 hours a week. 1 pays $70 the other pays $130 a month . Income based insurance you have to earn a certain amount to buy a plan so your not on medical assistance.

[@gardyvastey5190]

I totally agree ...I’m 51 and planning on retiring at 61. Why wait until 67 for social security ....life doesn’t promise. Invest in ETF and Index Funds and live off the interest . You should be fine .

[@paulmoss7940]

I retired similar at 57. Today at 61 I have more than I retired with. Lots of factors to consider. I have everything I want within reason, many toys. It costs me 20k a year to live as a norm. PS I'm not married but will entertain a female occasionally.

[@matthewjackson9615]

It behooves me to throw this in. Financially, retirement's not a problem at all for me. However, the other side of retirement is the mental side. Once retired, Either you create your own world or discover that there is little to do. Those that can't engage themselves with something creative invariably choose to keep on working.

[@Booboonancy]

@@fuzzyboomboom9742 someone with vocabulary

[@hubster4477]

@@fuzzyboomboom9742 Hahahaha

[@hubster4477]

@@Booboonancy more like someone over 70

[@jphickory522]

.... someone that has a higher level of intelligence than you

[@docholiday7758]

@@Booboonancy Superb rejoinder, Nancy. lol! ;)

[@wendellkristofak642]

It’s all about debt. If debt is minimized a million plus Social,Security should be adequate. Depends on life style.

[@jim7297]

Well it seems nobody is asking the real question. How long are you going to live? What quality of life are you going to have? No financial adviser can give you that answer . Everyone has to guess how their life is going to turn out and pray that they made the right decision .

[@CS-ui4qj]

thats literally the first thing he covers if you didnt skip into the video, or not watch it at all.. "quality of life" would be that the couple in his example will be living fairly "frugal" and age prediction 91-92.

[@robstubbs1176]

Did I miss you talking about them receiving approx. $50,000 annually from Social Security, which is the same amount they wanted to live on?

[@markmiller3145]

Your health care amount is wrong. We are in virtually the same boat and will pay about $100.00 per month with ACA subsidies. It depends on your taxable income....we will pull some from savings....some from Roth......some from 401k.....

[@ariefraiser140]

Why doesn't anyone ever mention and go deeper into the ACA healthcare plans in these types of analysis? We're always told how expensive it is but the mitigation from the ACA on that expense is never mention and that's a disservice to the people.

[@aquabliss9194]

A good financial advisor would do just that, it’s critical to success

[@jturner7771]

The analysis may be too complicated and fact-specific for a comprehensive video.

[@ariefraiser140]

@@jturner7771 I'm not asking for an in depth analysis here. But to scare people have to death about $25,000 annual healthcare costs and not even offering just a one or two sentence lin that the ACA may greatly reduce that and to research it is frustrating to say the least.

[@jturner7771]

@@ariefraiser140 I agree. Advisors may not understand the ACA, or may be worried that they could give incorrect advice.

[@jdthompson5778]

They only need $50k to live on but 25k for health insurance and OOP? Makes no sense. On ACA and only 50k after tax income prior to Medicare their premiums should be next to nothing with subsidies.. Or if they are in good health and accepted they could get in a Health Sharing plan for about 8k a year for both of them. Which is my preference (complete freedom of providers, freedom of income and doing Roth Conversions and optimizing future taxation... and only $750 yr deductible) but everyone’s situation is different. 25k per year seems way too high though! Whatever the cost they should just use the 200k funds outside their 401k to fund healthcare for 5 years. They will be in the 12% tax bracket regardless.

[@phathuevos697]

There was a guy at my job retired at 65. Made sure he worked passed 62 to get a bigger social security check told me he had 2 million in the bank was just going to take it easy and relax. He died from a heart attack a year after retirement.

[@TripleAstyle1]

thats why waiting to retire is stupid................. its such a common story its almost fake.

[@rufdymond]

Sat here watching from the U.K. and the big difference is that health insurance figure, something we just don’t have to worry about over here. I do think we are quite fortunate in the U.K. - our retirement accounts allow us to save up to £40,000 per year towards retirement. In addition, our ISA accounts allow us to save/invest up to £20,000 per year....that’s £60,000 per year of tax efficient savings. The beauty of ISA’’s is that they are totally tax free - that’s all gains and withdrawals, so even if you have an ISA with a value of £4 Million there is absolutely no tax to pay on any of the money you take out.

[@5000MikeMaster]

But you only get up to 40k tax free... that’s not much especially if you’re trying to accumulate capital fast

[@SimonEllwood]

@@5000MikeMaster It is above the average income so the 40K limit is not an issue for most.

[@amy2284]

This video was very helpful. I can see now the diff nuances and steps necessary to keep in mind. I will definitly see if your services can help us retirement at the age and have the right expectations to what to expect. I love that process you guys hook the numbers into.

[@longwoodcurrencytrading]

New subscriber and thanks for this and the other detailed videos of yours I've watched. At 24 I figured all of this stuff out, could have retired at 62, but I enjoyed my day job as a software engineer and managing some real estate. Though I retired at 66, I waited until I was 69 to take social security because as you said it's basically free money by waiting - if, of course you can. But the key, as you mention in this and other of your videos, is that the earlier you start - regardless of the amount - the more likely you will be to achieve your goals, and yet still enjoy life along the way. Starting early is the key....

[@1AXMRDR]

Retire when you still are healthy enough to enjoy it. I've worked with too many people that retired with lots of worth and died 3 years later. Sure, they left their kids with lots of money, but when I die I want everyone to be sad LOL. I have been blessed in life and smart with my money so I retired at 58. I don't have to have the newest car, motorcycle, phone or whatever sucks money from my account. Trim the "fat" from your monthly bills and save/invest the money. Planning for retirement early in life makes it much easier.

[@kenmar4009]

Best advice I've heard... This guy thinks everyone is going to live to 94 and still be skiing lol..

[@jeffb1886]

Unless I missed it, he never mentioned Long Term Care. If one of them has a stroke or some other debilitating medical issue requiring nursing care, they'd better both have (expensive!) LTC. Without it, this planning will go out the window as their assets will be drained at warp speed!

[@FulghumCraft]

I retired at 32 with 1.5 mill... im 40 now & life is great!..

[@ladarrencurry9174]

Congrats whats the secret

[@marktheshark2569]

How’d u acquire so much by only 32?

[@nathanmorgan3647]

Depends on your spending problem and how bad the coming hyperinflation is going to be.

[@joeg8391]

Move to Portugal, Spain, Mexico, etc for a 4 years until you hit 65. The cost of living is cheap and private health care is also cheap. At 65 you can stay in your new country and collect your 401k and social security without double taxation. If you don't like it, move back to America and jump onto medicare.

[@boscomac2434]

Interesting scenario…

[@johnnino2755]

Portugal or Spain … Mexico has and will always serious security concerns .

[@satzawesome]

India too, India is one of the top world health destinations due to quality of care.

[@Duke_of_Prunes]

Not sure about moving out of country, but there are plenty of areas in the States where you can set up base inexpensively. My wife and I are set up in the Mississippi Gulf Coast area. It's incredibly cheap, the people are nice, and my wife can afford to travel endlessly, and we can eat and shop in New Orleans when we have time. Her sister is in DC, and still paying on an $800K mortgage -- on an average old house that needs a ton of renovation.

[@genxx2724]

@@Duke_of_Prunes But you have hurricanes.

[@vickybiagini8623]

Considering most live till around 70, I'd say you have plenty. We get old very, very, very fast.

[@vickybiagini8623]

When you reach 45, you'll understand why aging comes fast. Full retirement should be 50

[@vickybiagini8623]

@@rgarri6396 , Not low at all. I can attest being 47 that retirement should be 50. Aging is a fast beast.

[@dc0729]

This is a really professional and helpful representation. I will need to look at it a few times more and digest the essentials.

[@daveincv]

I'am 58 and going to do the same at 60...maybe a small partime job for a while but the full time thing..yeah over it. Navy and 23yrs at this job time to call it quits.

[@OakHarvestFinancialGroup]

Hello Dave. Thanks for your service. Welcome to our channel...

[@daveb5484]

Great information. It would be helpful for the public if you could insert the cost of nursing or in home care impact into this scenario to show nest egg at 90 and 92.

[@TheRealEdStoner]

Mary is already retired. Does she have any retirement assets or her own social security?

[@raylemar2386]

Get rid of that mortgage payment. Eliminate those credit cards. Absolutely no car payments.

[@OakHarvestFinancialGroup]

Debt-free. It helps to spend less than your income, eh?

[@raylemar2386]

@@OakHarvestFinancialGroup Debt free is power. I dont owe anyone anything. It's a great feeling. Keeps like a lot more manageable.

[@santi9359]

Loved your illustrations. Thank You.

[@calbob750]

The investment advisor advice is 4% withdrawal per year. Better have a pension and social security and no debt. Don’t forget the impact of market events like “tech bubble, rising interest rates, Great Recession, RMDs.” Enjoy!

[@no_reply9857]

i retired at 54 with less than a million...and I live in a HCOL. but I am single with no kids and I have a pension that starts in five years and SS in 12 years. So I only have to fund the gap years inbetween.

[@jimcallicoat]

The one thing that I would add is the quality of life at which you are able to spend retirement money. If you come down with cancer at age 70 it really doesn’t matter how much money you have the rest of your life will never be the same and only reason I know that is that’s what happened to my father he’s 86 years old now survivor of stage four cancer he hasn’t been the same sense. He has a union pension with union insurance plenty of Social Security but the ability to enjoy it as gone away the last 15 years.

[@rhena229]

I’m willing to work as long as I can so that i don’t take money out of 401k or taking social security before 67. However, the challenge is to stay employed through 67. Although age discrimination is illegal in employment, it’s hard to enforce.

[@gigi_enItalie]

Truth

[@jwall62]

I'm willing to do whatever I have to to not work past 60.

[@Gilboy64]

A lot of people die between 60 and 67 and get nothing

[@cisco1dog]

I changed my opinion about this last year, cancer has a way of redefining your objectives.

[@jayegan2640]

you are missing a lot of really good healthy years to be active in retirement.... but, it to each his own....

[@kenw5890]

If Jason has an income of 100K he is not at maximum SS. You have him at 2952/mo. the MAX payout currently at 67 would be 3113/mo well above the average SS payout that few would qualify for. The estimated average SS payout for 2021 is 1543/mo or 18516 year, very far from your estimate

[@christopherallen9580]

Very true!

[@coniccinoc]

"Happiness = Health + Freedom." - Scott Adams. Wife and I retired this year in our mid 50s thanks in part to listening to Dave Ramsey. We live a simple life but not having to trade our hours for dollars in awesome.

[@jdthompson5778]

I retired at 56 and boy are you right about trading time for dollars! Simple life for me any day rather than trading my time away for extra money that I likely will never spend anyway! Time Freedom and Health (mind and body) is the way to go!

[@TheDWZemke]

So I am learning to invest.. last year I made 112% on my self directed ira and just at 50% on my wife's ira account... yes I'm over 1 million dollars in total investment. Help me understand why I should focus on anything else other investing is top stocks. In three years.. I should have... ya ..

[@skibum6422]

Sure you did. Everyone made that last year.

[@Me-yw9mi]

On the one hand Jason is healthy and can live to 94. On the other hand the medical expenses are 25k+ per year. I don’t agree with the calculations !!! You can get high deductible (~10k ) insurance for low premium of your income is low. Total annual expense will be lower than the 25k

[@billmartin1010]

"General inflation in this country is still under 2%" Really? Open a financial newspaper. Inflation (including food and energy) hasn't been 2% for some time. By some measures, it may be over 15% right now! The money supply (M2) is up by 26%!

[@Gus-bx8jx]

What country you are living in? We are living US with 20+ inflation.

[@Boarderczar]

Yes, government uses CPI to determine inflation. This let's them cherry pick consumer samples. They say look, TV's only went up 2 per cent. They don't use what we purchase daily, mainly food and energy. Gas is up by 30 per cent, building materials up over a 100 per cent, food up 10 to 15 per cent.

[@billmartin1010]

And even the CPI (without food and energy) shows 4.6% at this point. At the producer level, prices are up over 25%. But consumers . . . how long do you live without using food or energy? (CPI is a rigged number.)

[@ppsh43]

If Bidon plans on blowing up the national budget to $10t/Year, expect high taxes and higher inflation.

[@scinusa]

I think those stimulus checks are to give the illusion that it will help the economy but will actually inflate prices and will eventually take so much from retirement plans, savings and earnings it will push the middle class below the poverty level. Perhaps in just a few more years old man Biden can tell Saint Peter: I did it, I destroyed the U S of A!.

[@katana1960]

As for spending, I would think a 62 year old needs to spend more money than a 72 year old who needs more than an 82 year old. I know there is inflation, but I believe most people get more sedentary as they get older due to heath and age. More home time means less spending except for medical costs. These planners never seem to factor that into the equation.

[@alansach8437]

And yet...those medical costs can rack up really, really fast and be way more than you ever spent traveling and loving life. Unexpected things like needing to pay for help around the house for things you can no longer do, long term nursing care, things Medicare doesn't cover, there are more than you think. If you have kids willing to give up their lives to care for you, great, that can help. If not, expect a lot of unexpected bills.

[@DD-vk5yy]

This all depends on your expenses. However I don’t know why people talk about retiring and always thinking about how much less they’re going to spend in retirement waiting to die. I want to spend more and live great at the end of my life. Saying I think we can get by on only this much is really depressing.

[@JJ-nu8qi]

I look at it that way too.

[@CS-ui4qj]

so, what? never stop working so you can keep living the wild life in your 60's and 70's? or retire, completely spend all your money partying, and then take a quick exit with a bullet?

[@scotchbudmeister9018]

If you have no debt - including mortgage, you can retire on a lot less than that.

[@Gabriellabonanno]

I agree, over 80% of people retiring each each don't even have close to I mil..i don't understand why they make theses videos ..address those 80% of people..smh

[@anthonygambitta6220]

I just retired at 60 with no debt, mortgage with 250K. Health Insurance is the largest bill ($347.00/mo.) At 62 I get SS benefits.

[@OakHarvestFinancialGroup]

Just curious, what state do you live and what is the amount of subsidy you receive to cover the rest of the policy?

[@kenmar4009]

@@OakHarvestFinancialGroup I priced in Ma recently and for me and my wife it was a little over $400. the state kicks in almost the same $$..

[@django1]

The number 1 thing that keeps people working that could otherwise retire is the astronomical cost of HEALTHCARE. You can control many things financially, but if you have no healthcare insurance, You can be wiped out overnight.

[@temizim]

Exactly. I am at an age where I see this happen a lot with my parents generation. Everything is great until someone needs to be in an assisted living facility or an Alzheimer's facility.

[@django1]

@@temizim Hi Max. It's not just that. Suppose you save and scrimp and live well within your means so you can get out of the rat race early. Actually live your life. And you can't afford the $4,000 a month it takes to have decent insurance for you and your wife or husband and still get out of the rat race. And one of you gets a highly treatable cancer. Or lupus. Or you get into a car accident with an uninsured motorist. The list goes on. The fact of the matter is your health care bills are going to be catastrophic to your life accumulation of wealth. And the way some hospitals operate, they can charge whatever they feel like and you are without recourse because you have no insurance. It is vicious.

[@sergiosantana4658]

25k for medical???? Drawing the income from the 401 from age 60 to 65 will reduce future rmd,s (widows tax trap) and still allow them to take advantage of the ACA subsidies. And once Medicare kicks in at age 65 and before social security starts the cash can be used for income and to pay the tax on some roth conversions.

[@akinoshimo]

yup, sounds about right, Example: Anthem Blue Shield plans, PPO HDHP, $7,000/yr deductible. Premiums + a swag at copayments + deductibles + meds can add up to around $25K/yr or more for private health insurance coverage before Medicare (Married couple). One can find HMO plans with lower premiums with higher deductibles to lower the cost. High Deductible Health Plans can be supplemented with a Health Savings Account to offset the deductibles and pharmacy expenses. if one budgets the health expenditures well, then after Medicare kicks in, Sergio's suggestion is a good idea.

[@jimclark5037]

Aren't both high healthcare expenses and sequence of return risk mitigated with a few years of cash ? Then can get high subsidies from ACA (showing no/low AGI) and allow portfolio to grow untouched

[@johnlinn9297]

From the title question: Not enough input to answer. Other assets, debts, lifestyle, age, family size, and health etc also figure into the equation.

[@lichin11]

Congratulations! My wife finally retired this year (age 56) while I retired at age 53; my wife and I have pensions and sufficient retirement savings with zero debt. Our college loans were paid off in 2004, mortgage paid off in 2007, college education for our kids was fully funded in 2009, our medical insurance is provided for free (Texas state employee (ERS) retirement deal) until medicare age is reached. It appears that we took similar approaches to prepare for retirement. Isn't it great!

[@OakHarvestFinancialGroup]

Thank you for sharing that.

[@VinnyBully]

I retired at age 46, best move of my life.

[@Boobtube.]

what did you do for health insurance? I'm 59 and want to retire as well.

[@LoveLondon5]

I call bs, unless you had some massive windfall. That or going to have a rude awakening at some later stage when you run out of money.

[@enjoymymoney6191]

Having some or most of your money left to give to your adult kids is admirable when you die at 85-90, but certainly ridiculous. You’ve planned and invested wisely. Spend and enjoy fully and if something is left that’s a bonus. If your kids are 20 when you are 85 or 90 you only made one foolish decision …at 65 or 70!

[@MartyMeyerdierks]

You guys are supposed to an expert in retirement but how do you not account for ACA (Obama care) subsidiary for medical health insurance premium until they are eligible for Medicare when 65? If they are withdrawing $50k per year from 401k as a couple they more than qualify for ACA where total out of pocket annually would come nowhere near $25k per year. Was there a reason for intentionally skipping ACA when they are eligible?

[@tararochford1737]

Between premiums and high deductibles their annual out of pocket cost could hit over $12K per person with ACA. Might not actually reach full deductible but you have to plan for it. I had insurance thru ACA for several years and this was my scenario.

[@MrMleewilson]

Most of the conservatives here spent the last 10 yrs ragging on ACA; they believed all the crap from their Republican leadership. It never occurred to them that ACA would actually be the enabler of their retirement dreams to get to Medicare age. This is a huge paradigm shift for them.

[@kevinr849]

I've dug into that, it's a game-changer... Turning in the laptop and the phone Dec 3! Will be 62.

[@PJBHolden]

I think many people use/want financial advisors to make them feel like they are making good choices etc. "talk them off the ledge" so to speak. If you can handle a budget for 40 + years you should be able to budget in retirement.

[@OakHarvestFinancialGroup]

Please let me know if there is a particular subject you'd like covered.

[@dagobaker]

im trying to think about spending 13000$ a year on healthcare.... while right now im spending basically dental and eye at age 47 makes me wonder how far downhill my health will go in 13 years

[@richarddombrowski5199]

Check out the ACA it is based on the income for the year you apply for, not your net worth. Be poor on paper and you can get health care for less the $100 per month for a single person, varies from state to state. It might be helpful to find an insurance broker that can guide you in your area.

[@mtadams2009]

I am 61 and fine. I still ski, mountain bike and work out five days a week. I eat well and keep my weight down. Treat your body like a shrine and you will be fine.

[@PatriotSteve]

without watching the video - YES.

[@annabellewood8887]

A new subscriber here 😊❤️. I love your channel. I’m 62 with the net worth of over $2million dollars before my husband’s death we travel the world. I’m a single mother, I have 4 (four) kids and I helped them occasionally with everything but funds for their academics each of them had to decide on how to pay for fees and that really helped me a lot and am happy 3 have advanced degrees and my 2nd works in the Tesla company living very fine with his family, but I eventually lost my 2nd daughter in a Fatal accident. All the same God knows the best.

[@andrew1065]

I’m so sorry for your husband’s death ma’am 😔I know how it feels too. My In-law died earlier this month, and that has been a weakness to me

[@annabellewood8887]

@@andrew1065 you don’t have to be sorry. I’ve loved the FIRE MOVEMENT planned for it and it worked successful

[@OakHarvestFinancialGroup]

Thanks Annabelle. Welcome aboard! Sorry to hear about your losses.

[@anthonymark8890]

@@OakHarvestFinancialGroup This Comment needs a love form Oak harvest financial group.

[@annabellewood8887]

@@olivergarza4398 F.I.R.E. stands for “Financial Independence, Retire Early.” The goal is to save and invest aggressively-somewhere between 50-75% of your income-so you can retire sometime in your 30s or 40s. That's right: You need to save at least half of your income.

[@jlepage36]

Short Answer, it depends on what you want out of your retirement. Everyone's priorities, lifestyle, needs, and family considerations are different. If you were willing to move out of the US to say, Costa Rica, you could easily make it on $1M at about age 40, assuming returns at 0% above inflation.

[@teacheschem]

Costa Rica isn’t as cheap as people think. My cousins moved to Costa Rica and it was too expensive to stay while retired. They moved to Panama instead.

[@fastbladeproductions7961]

Thailand baby.... that's my plan... live like a king ....

[@MrMleewilson]

So between 60 and 65, they'll be using ACA or some other private plan at $25K/yr. That means they'll need $75K/yr until 65 (Medicare kicks in). They'll have to pay taxes on that income, so it'll come up short at the end of the year for at least 5 yrs. Also, the 4% rule says they should only take out $40K/yr on a $1M balance. Looks like they'll come up way short until age 67, and they'll be pulling from the $250K cash account. How much? If they use that for everything, they won't have to worry about taxes, and they could get ACA medical insurance completely subsidized for about 5 yrs. Is that how they're doing it? If so, they'll wipe out their cash in 5 yrs, which is ok, but when it's gone, they'll have to pull from their 401K even if there's a market drop. Will they be living mostly on Social Security by that time, so it won't matter? You don't seem to talk about that, or maybe I missed it. Also, at 72, they'll have RMDs on the money in the 401K. If there's still $1M in there, they'll have to take out about $40K the first year, and even more as time goes on. Of course, I'm probably wrong on my numbers, but it'd be cool if you could show year by year what happens to their cash and 401K balances based on their required expenses.

[@wdeemarwdeemar8739]

RMD will be moving to 75 Congress is voting on it right now as we speak. Phased in from 72.

[@MrMleewilson]

@@wdeemarwdeemar8739 That's good to hear.

[@TheGregWallace]

And don't forget Long term care Insurance.......they will probably need.. they do not have enough to self insure.

[@Boarderczar]

At 62 in retirement they can begin a Roth conversion from the 401k. As long as they stay below 105,000 a year it will only be taxed at 12 per cent. The Roth is never taxed, even for heirs.

[@MrMleewilson]

@@Boarderczar Yeah, but that will cause them to lose ACA subsidies, which could cost them up to $25K/yr to maintain health insurance until they hit 65. Seems like it's always something....

[@rodhoover9158]

Outstanding period of instruction! Thank you.

[@OakHarvestFinancialGroup]

Glad it was helpful!

[@vfrtodd]

Thank you. Very similar to our situation. Quite helpful.

[@franksanderlin3259]

401k isn't the best investment choice or even a means of saving for retirement. They only use your money to invest and make much more and in return they pay you a very little percentage of your money worth as your interest rate. Invest directly into the biggest market in the world and make much more return on your investment. I have made a million plus investing directly in the currency market with the right trader

[@nenefry8502]

My relative just turned 57 and got laid off last feb. He tried to find a job in his field but now that he is out over a year and 57 years of age he gave up looking for a job. His wife fortunately has a very good income job but now they say he will retire at 62 SS (lower payments) and start taking out at 591/2. It's lose lose lose all around. I don't understand why he doesn't get a lower job (50K). He loses his potential 35 years of highest earning social security by dropping out lowering his SS, take at 62 lowers it as well AND you need 5 out of 10 years of minimal earnings if you want SSDI ($5300). That is you can drop off the SSDI eligibility if you quit working. He has met that test for last year but now starts the clock. I am afraid if he gets disabled then he won't qualify for SSDI, if he decides not to take it at 62. His regular ss age would be 67.

[@nenefry8502]

Oh I should mention he in relatively good health. That's why he should continue to work.

[@ingridm3727]

Is there a version of this software that will work in Canada?

[@TravelingTheWorld1993]

Two individuals at full retirement age. They both apply for social security and Medicare benefits. One have 3 million in a traditional 401K and the other have 3 million in a Roth 401k. Will they be taxed the same on their social security and will their Medicare payments be the same? Thanks

[@OakHarvestFinancialGroup]

Both your questions depend on income, not asset level. The person with 3m in traditional IRA will be fully taxed on SS once RMDs begins. Also, because of increasing RMD percentages they will most likely fall deep into the IRMAA (Medicare) brackets as time progresses. The severity would depend on how much the IRA balances grow moving forward (Higher balances equals higher RMDs) Depending on other income sources, the person with Roth could possibly have 0 taxes on SS and not worry about the IRMAA brackets. Not to mention other taxes that the person with IRA will have to worry about such as Net Investment Income Tax. Hope that helps Mr. Bond! Thanks for watching!

[@TravelingTheWorld1993]

@@OakHarvestFinancialGroup , thanks a lot for the response!

[@BearWolf21]

Good job. Lots of info presented clearly and simply

[@hankjeffries2596]

There are several factors about the retirement question that I didn't hear in your presentation: 1. Besides the IRA balance, what other assets/liabilities - mortgage, pensions, investment income/interest, car payments, rental properties income, royalties, inheritance, trusts, etc. With our current pensions + SS + investment income, we don't need the RMD's from our IRAs. The RMD just raises our Medicare expense! 2. Medical expenses may be off-set by medical insurance benefits from your previous employer, perhaps even TRICARE for military retirees. Yes, pensions are getting more rare every day, but some of your clients still have them. 3. Due to the market returns our $1 million IRA balance of 15 years ago is now $1.9 million! We were raised by Depression-era survivors who taught us to "get-by" and not spend unless necessary - now we have difficulty spending our IRA balances. P.S. - It is rather difficult at times to read the screen behind you due to the lighting or your standing in front of it - you might take a look at it yourself and perhaps decide to re-record it.

[@babszollak2512]

Why are all these examples of only couples? I have looked at multiple videos. I have $1MM+ and would like an example for someone like me. Single, money and age 61. I have questions regarding taking Social Security as a single person at 62 or later, not likely waiting until full retirement age at 67. What do you offer in terms of examples for someone like me, never married and I have $1MM+?

[@jonathanmccarthy6126]

Zip it and retire already bud.

[@babszollak2512]

@@jonathanmccarthy6126 Your opinion doesn't count.

[@dr.emilschaffhausen4683]

It's the biggest tip I can make on the same topic: unless you have a significant amount of money for retirement, do not have a house payment after you are retired. This is not to say you should be renting, this is to say you should have a place to live that is paid off.

[@JJ-nu8qi]

That really depends on what your interest rate is. My rate is around 2 percent and I can out preform that pretty easy in most any decent investment.

[@skibum6422]

@@JJ-nu8qi That's how broke people think.

[@ddellwo]

Don’t “diss” renting in retirement. Even a paid-off home has LOTS of expenses associated with it - taxes, insurance, basic upkeep, plus the big repairs that come along from time-to-time that can be real budget busters! Especially as you get towards the end of a 20-30 year mortgage the only money you’re really saving is principal and interest, which by that time may only reflect a modest portion of the ongoing costs associated with being in the property!

[@JJ-nu8qi]

@@skibum6422 Actually it's how smart people think. I've ran the numbers and it's clearly cheaper to pay . my mortgage and invest my money.

[@dr.emilschaffhausen4683]

@@ddellwo So many who rent for years could have owned instead. Depends on the amount of the rent. Having a required monthly obligation that is a large part of the retirement monthly income is a no no.

[@JW-cb2dy]

What is the planning software that you use to create these plans? Is it Emoney?

[@kellanhills1972]

What if you take social security early and invest half of it and spend the other half

[@maryburkholder4439]

Always great information!

[@jimdandy849]

When you retire you have twice as much time to spend half as much money.

[@onlywenilaugh6589]

But by then, you have already accumulated most of the items you need or wanted generally speaking. Of course there are the new gadgets. :)

[@Duke_of_Prunes]

You also have half as much desire to impress people whom you don't know and probably don't like.

[@fuqoff8583]

@@Duke_of_Prunes Exactly!!!

[@FXMAN66]

Only if you have half as much sense.

[@kennethwers]

No payroll deductions.

[@wmgthilgen]

If one is expecting to maintain their current life style on thier retirement program. Gonna take a lot more than they can imagine. If one's current life style is based on their income of say 50,000. And they want to maintain such life style after retirement. They will need a retirement programs that will continue to give them 50,000 and more as the cost of living goes up. Retireing at 65 and maintaining their current life style in addition to making sure their significant partner is covered after their gone at the age of 85 for instance and their significant other at 90. Means they will have to have been able to receive a minimum of an excess of over a 3/4 of a million in bennifits from their retirement plan. An annuity that pays that much means one will have to have invested considerably more than that in their retirement program.

[@jdgolf499]

When I input my retirement info into the many models available, I only use rhe expenses I am required to spend, such as housing, healthcare, utilities, etc. If that works for all situations I'm good to go. Then I run the models with my discretionary spending, such as travel, concerts, etc. Those are the things I can cut back on if needed for a few years.

[@alansach8437]

Medical is what gets most people. You're healthy and feel great at retirement, then something happens. Worse case, one of you ends up in long term care for some reason. Everyone thinks it won't happen, yet it does every day.

[@dr.emilschaffhausen4683]

All depends on how much travel your wife is willing to give up.

[@12vLife]

Two questions... if you retire early and have some passive income, don't you qualify for healthcare subsidies? Also, aren't people in their 80s and 90s a lot less active and also eat, travel and shop a lot less? We are 53 and 51 and we continue to work though we could retire right now, but only because we are super frugal and have passive income. It bugs me that I'm selling some quality years in my 50s and 60s for more money I won't even spend.. IMO I think the one thing to do in retirement is find some semi-passive income and scrape 10-20k a year on something you enjoy doing that keeps you busy and active. I've always pondered the hypothetical question... if you could, would you trade being free and having fun in your 40s and 50s for being alive in a rocking chair in your 80s and 90s? I think I would.

[@MaxPower-11]

Yes, if you retire early and have passive income you do qualify for healthcare subsidies. The question is how high is the taxable portion of that passive income as that would determine the amount of subsidy you will get. Also, many of the Marketplace plans have significant copays and deductibles which could mean a lot of out-of-pocket healthcare costs.

[@edwardthorne7767]

I believe the max spousal benefit is calculated on the FRA and not the max at age 70. Therefore, the spouse does not get an additional spousal benefit if the higher earning spouse takes SS at 70?

[@veronicasommer5513]

What about the affordable health care credit? They could qualify for that credit which would bring down the health care costs

[@WilliamCrumbley-qu4vf]

Yes all this report and gains and loss just like selling your business yes we have to fix this I need this knowledge

[@jeffreylang9812]

Good information. Nicely explained.

[@OakHarvestFinancialGroup]

Glad it was helpful!

[@chillywilly3397]

Great info...thank you

[@Pelemorra]

If someone wants to max out their Roth IRA every year, how do you do the math to see if you get into the next lower tax bracket? I'm unsure if it would help or hurt my budget.

[@MaxPower-11]

Not sure exactly what you are asking. Since contributions to a Roth IRA are made out of taxable income, they have no effect on your tax bracket during the tax year when the contributions were made.

[@johnhansen8272]

3 months from now, 05/31/2021, I am 61 and now have $500,000 in my 401k, how many more years do I need to work?

[@FreakyLynx]

I often wonder how different many of these videos will be once they start taking into account the skyrocketing inflation we’ve been seeing.

[@markcassara]

Thank you for this video! We have some things in common!

[@FakePersonna]

What is the URL to that simulation website? Why blur it out?

[@joefrias]

Great information, thanks for sharing.

[@OakHarvestFinancialGroup]

Our pleasure!

[@normhanson981]

Excellent vid covering all eventualities, many thanks.

[@OakHarvestFinancialGroup]

Glad you enjoyed it

[@jonasrominger3065]

southgatescapital manages my funds, im up 79k

[@jonasrominger3065]

just this year already.

[@garretttodd2182]

@@jonasrominger3065 contact please.

[@jonasrominger3065]

@@garretttodd2182 southgatescapital

[@allenmorgan4309]

This guy is making it sound like you need more than you actually do. I have less than one million and live on 6% of my returns and my portfolio continues to grow. The historical average is 10% as long as you leave 4% for growth you will make it barring some unforseen major cotatrophe that wrecks the entire economy.

[@jeffreylang9812]

Like a pandemic and a senile President.

[@howardiko7156]

Let's talk real world. With interest on cash at .50%. Pension and social security you have to draw down the savings just to pay tax and food.

[@callendarl]

How about high yield dividend etfs paying 8.5 to 9 percent.

[@anonymoushuman8962]

No but you could buy a few Audemars Piguet royal oaks for 22k and sell them for 75k.

[@mattkeikkala726]

I really enjoy your content, thank you!

[@OakHarvestFinancialGroup]

Thank you for watching!