I'm 62 With $900K Can I Retire Now, When Should I Take Social Security and What About Taxes

Retirement Planning: Can I retire at age 62 with $900,000 in savings? When should we take social security and what about taxes? In this episode, Troy Sharpe, CFP®, goes through a hypothetical situation of John and Jane. They're married and want to retire with $75,000 a year in income. They have $700,000 in an IRA and $200,000 in a Non-Qualified account. Should they do a Roth Conversion and how will that impact their taxes? When should they take Social Security and how will that affect their probability of not outliving their money? Watch this episode to find out.
#incomeplanning #retirementplanning #retirementincome #retirewith900k
00:00 Introduction
01:09 Understanding John and Janes current situation and their goals for retirement
04:12 John and Janes Monte Carlo simulation - Probability of Retirement Success
05:21 What Happens if We take Social Security at a Different Time?
10:45 Conversation about Long Term Care and How it can effect Your Accounts
12:28 What Happens if We have an Extended Market Downturn to Your Accounts
13:23 How Does Your Portfolio Look if You Average 7.65% per Year
15:11 Taking a Look at Social Security and How Taking it at Different Ages Affects Your Overall Probability of Success
17:25 What Happens if We Change the Life Expectancy Age to Our Overall Probability of Success
19:59 Looking at Different Taking Social Security at Different Ages
21:55 Let's take a look at the Tax Analysis
22:33 What do the Taxes Look Like on the Roth Conversion
29:51 The Oak Harvest Retirement Process and Why it's so Important
30:30 Taking a look at RMD's Required Minimum Distributions
31:40 Why a Roth Conversion is Important for Legacy Planning
33:12 What's the Tax Impact at a different Life Expectancy
34:58 What happens when one Spouse Predeceases the other
36:27 Why we look at Roth Conversions
Why we look at Roth Conversions 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. Education CFP® professionals must master nearly 100 integrated financial planning topics, including:
- Investment planning
- Tax planning
- Retirement planning
- Estate planning
- Insurance planning
- Financial management
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 Experience 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. Ethics 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/im62with900k
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]

[@Raymondjohn2]

Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.

[@hogroamer260]

Look at your family history, eat sensibly, maintain a healthy weight, exercise. Play the odds and stop worrying about what's out of your control. I retired at 56-1/2, now 63, and planning to wait for S.S. until age 70. If you know your numbers and you're comfortable with them, just go for it!

[@briangc1972]

I'm a contractor and I am amazed at how many people in their 50's and later in life move into a new home with a new large mortgage payment. That could be a bad financial decision. I paid off my mortgage 8 years ago and will not take out any new loans. Once you are debt free, that changes everything in your financial life. Too few financial advisors discuss the importance of being debt free. My total cost of living is under $10K per year. That is a game changer.

[@mrg1911]

Agree 1000 percent….. Debt free including no mortgage, moderate taxes, a single car for retired couple. Retire at 65 or 66, then begin SS for married couple at $5k per month. A million in 401k then only withdraw $2k per month; not 4% example. Should be doable if no debt.

[@seetheforestthroughthetrees]

@brian G Great point. As a certified financial planner™professional, I find that most gurus and media pundits overestimate what a couple will need in retirement. Silly rules of thumb like 80% of your pre-retirement income are so misleading to people. Once you retire you no longer have FICA payroll taxes, commuting costs, no longer are saving a portion of your paycheck, you have reduced or eliminated life and disability insurance, and potentially no mortgage payment. Many retirees need much less than they think. Cheers to you!

[@marlinejoseph8314]

.i9 😊

[@pacfan1456]

These guys with charts all over the Internet talking about when to retire are nuts, with 900k stock market averages 8%, retire at 62, collect your social security, be careful with your money and you will be OK, enjoy your life while you are young and energetic, I would suggest another advisor if you can’t make 900k work!

[@user-gc3yi3xq2k]

I agree

[@christopherkennedy3911]

Love it keep doing the scenarios!!

[@cherylhuger8447]

We are a retired unmarried couple (we own our manufactured home) with a total (both of us added together) of less than $24,000 a year in social security retirement as our only income and zero in the bank. We live very comfortably with our beloved cat and dog.

[@sasbeachs]

I am single (widower) own my land and manufactured home. 24k/yr. live comfortable in upstate NY.

[@bruced.370]

@@newhampshirelifestyle4233 it most surely is. It's all about expenses....not what you have.

[@macclark4112]

That is until hyperinflation eats your Lunch.

[@mfamily3301]

Ma'am, you're happy and healthy, no money can buy that.

[@colemant6845]

Meager means indeed! What happens when the car dies, or health issues... or LTC is needed? You must be counting on the Free Biden Bucks coming your way? Hope you are not White ... because, YOU WON'T QUALIFY for financial help. Good Luck

[@mikehenry4743]

I retired in 2016 at 52 years old. I get $4k a month from my retirement and had about $175K stashed away. Now all I do is hike, hunt and fish. If someone can't retire on 900K something is wrong. Of course it all comes down to lifestyle and debt.

[@billsmith2915]

where does the 4k a month come from?

[@mikehenry4743]

@@billsmith2915 I retired after 30 yrs in law enforcement, and the 4K a month is what I receive from why lifelong retirement account. My house, property, vehicles etc. are all paid off, so I have no monthly mortgage or other major payments. As a matter of fact I have never even had a bank loan my entire life.

[@joserizal2868]

@@billsmith2915 State employee pension fund .... they can usually retire after 20 or 25 years of service and if they are in the high income bracket they can get more than 4k a month pension....

[@4040smokey]

@@billsmith2915 Betting some type of government pension no doubt.

[@bruced.370]

@@4040smokey or union job.

[@joecolbert62]

Another excellent video. You always cover the information in great detail and it really helps me understand why your service is so important.

[@OakHarvestFinancialGroup]

Thank you. We're happy that you enjoyed the content.

[@war47war]

Thanks for sharing

[@wardwalker30]

It is surprising how complex preparing for retirement can be. I wish I had access to your web tool to think through scenarios myself!

[@McElvinn]

You cannot cut your way out of recession you've got to invest your way out of recession, the Conservative party are in the dark ages on policy they've got to think again. My primary concern is how to maximize my savings/retirement fund of about £170k which has been sitting duck since forever with zero to no gains.

[@daleholler8277]

Roth conversation strategy .good information thank you

[@OakHarvestFinancialGroup]

Glad to hear you enjoyed this episode.

[@mikehaberlack9896]

Great video

[@viaggi3945]

Great case study. Good job.

[@OakHarvestFinancialGroup]

Thank you and Happy New Year!

[@larryusagmail4751]

Short answer: Yes No need to listen after 0:12

[@marshallhosel1247]

The trick is balancing the negative “what ifs” with enjoying your life while you still can.

[@wasatchpowder]

The flaw of your plan is that you didn't discuss health care. At 62, the couple will need to go on the ACA. Doing Roth conversions will up their income which will reduce any subsidy they would qualify for. From age 62 - 65 they will need to show as low of income as possible to get the greatest subsidy. They should take an IRA distribution this year that will carry them through to age 65 and combine with SS now. They will essentially be in a zero percent tax bracket until they can take Medicare at 65. At 65, they can then start doing Roth conversions.

[@marknowak]

Makes you wonder why you'd pay someone a fee who misses something so important.

[@gloriaford2221]

If you own your home, have a decent monthly income & have good health insurance, you do not need all that money. My parents retired early, & died with $20,000 in the bank. They lived a fine life! These numbers just scare everyone.....it's not true.

[@DestinationRetirement]

Do you have a single person scenario? Not all of us are married. :)

[@E20Launderette]

Seriously! All these so-called retirement advisors talk only about married couples. Completely useless.

[@mikehenry4743]

As I commented above, I retired 6 years ago at 52 and I am single. It is do-able.

[@fashionstyles2061]

Add a single scenario

[@lindahilliker6020]

Now I know how much money my future husband has to have, in order to retire at a means to which I’d like to become accustomed…🤣😂😜🍀

[@granthill2980]

You people go way overboard on your projections!! I'm 64, retired at 62 with my house and everything paid off. With my SS and Pension, i come within 400 bucks of what i was getting paid. Got 200k in various things also. My standard of living is great! Just as good as when I was working. I see alot of you guys that say, Oh, you need a million bucks to retire or 1.5 mil to retire!! HOGWASH!!!

[@jimfarmer7811]

I agree. I retired at 62 and living on my savings and a small pension until I get to my full retirement age. Mean time I'm doing roth conversions to minimize my taxes. Once I reach full retirement age I can live comfortably on just social security and a the pension. I have a $million in investments and right now I don't know how I could ever spend it all.

[@Diego-fb5fq]

Good job! Yes, it's complicated, but just your ability to juggle marginal tax rates in your head is a key gift to your clients. Just the factor of keeping taxable Social Security off the return is something that hardly anyone recognizes until they see a surprising tax amount due. Yes, you're pointing to the output of a complex software simulation, but I can tell that much of it is percolating in your head already. Congrats! Don't worry about taking people down the rabbit hole just a little bit -- it's the reality you live with every day. The system is insanely complex. Not your fault. Happy Oct 15!

[@bhershman1447]

Thanks Brother, I'm 62 and I plan on retiring in a few months this was so timely and beneficial

[@xpicklepie]

I stopped working full-time 9 years ago at 48. I have a 1.6 mil net worth. I have no medical. If/when I get terminally/seriously ill I'm just gonna let it take me or off myself. I hate doctors/hospitals, the whole U.S. health care apparatus is a scam. I have no family or anyone to leave behind so that's my plan. 'Til then it's muscle car projects, guitar licks and road trips.

[@johnsonajayi7846]

Please write a will to leave your money to a non profit company that you like in case you passed away. I wish you long life.

[@stevenpaul5540]

You so crazy

[@babszollak2512]

Could you do a video for singles at 62?

[@danitzm]

Two big things he doesn’t mention. Most 62 year old with $900,000 will have home equity. So what happens if they trade in 4 bedroom house for a two bedroom house in a retirement community or they stay in 4 bedroom house and have the option of a reverse mortgage if they run out of money. The other big omission is ACA subsidiaries which will increase in 2022. The Roth conversions don’t make much sense until they hit 65 and qualify for Medicare.

[@ramonmarrero2001]

You only need a 9% to 10% annual return in your investment. You can run a MonteCarlo simulation as I did with at least 85% survival rate or more. I did with several pimco fund and other high yield investment like IEP, PHK, PCI, ARCC etc.

[@nysaxman]

If you have $900k saved and you think you can't retire comfortably, you have problems. The first problem is to downsize your lifestyle and live fiscally conservative.

[@briangc1972]

Amen brother!

[@nysaxman]

@@newhampshirelifestyle4233 well, if your standard of living is high and $950k isn't enough for you to retire on, then by all means continue working until you're 70+.

[@yankinwaoz]

Not true. I’m 57. I have $1.2m saved. But I don’t think I can retire until 68. I’m basing this on many retirement calculators such as fidelity and AARP. We don’t live extravagantly. I think the reason is that my wife gets no SS. So she will only get 50% of my FRA amount. So we have to fund more from our own savings that other couples.

[@bruced.370]

@@yankinwaoz it's all about expenses!!!!

[@michaeldavis5775]

The money goes faster than expected. my friend sold his Motel at age 59 and decided to retire with 780, 000 in the bank. At age 62, he began to collect 1100 a month in social security. Now 14 years later, he's almost out of savings even though he lived modestly in a paid off house he inherited.

[@2coryman]

Yes❤❤ and be practical, hopeful, optimistic, and know the difference between being unwise and Wise

[@toddboden972]

I'll save u time. Yes u can! I retired at 53 with $500k doing what I want and gaining more money from investing. Collect SS early you're never guaranteed tomorrow. This sounds like a government video to deter so they keep more of your hard earned money. Everyone's different think of your health when making the decision. Tip stay invested!!

[@briangc1972]

Retire early is the best advice; especially if you are debt free. Only if you live past 80 does it make a financial benefit to delay collecting social security. Working longer benefits these advisors. Retiring early benefits YOU.

[@dc76384]

These Financial Advisors are always doom and gloom.

[@garyxyz4400]

What about health insurance?

[@Jane5720]

Obviously you’re not dead yet so you really can’t answer that

[@TheFirstRealChewy]

How was that 500K split into the different type of investments, and how much do you spend per year after taxes? A lot of it comes down to how much you need and want to spend in retirement and how it's invested. $500K might be more than enough for some people, and not enough for others. Afterall, the amount you get for social security depends on how much you paid into it prior.

[@akwolf1434]

One thing that you don't take into account, and some other channels as well, is do these folks own home and how much equity is in that home to perhaps use later on in life. Maybe you have a $300,000+ home that can be sold later in life and move into an apartment that is going to give you access to more money.

[@ariefraiser140]

I know some people get very very attached to their home but to me downsizing and using the home equity is the logical step. I sure as heck don't want to be worrying about house maintenance and replacing a roof at the point in my life where I'm living on a fixed income. In any case even if you sell and rent it's not like you will blow through the entire equity in one or two years. If 5 years down the road you find you must buy a home you should still have a large portion of the equity left to buy the home.

[@angelmelendez2468]

Sure but you are now adding another expense with rent . The reason why they don’t talk about it is it should be given owning your home outright ( no mortgage no rent ) = no outflow . It would be a bad decision at 65 to sell your home in exchange for a rent expense that never goes away . You should stay in your paid home as long as possible . Just like owning a vehicle outright vs the payment with interest.

[@yankinwaoz]

I agree that living cheap and dying with a ton of equity is not smart. But selling and then renting is not the answer. A reverse mortgage is. I’m giving this a lot of thought myself. I estimate that we will have $3m of equity when we are in our early 80s. But we have no intention of moving. So I’m trying to see if there is a safe way to leverage our equity to fund our retirement after age 85.

[@bruced.370]

@@angelmelendez2468 well....if you sold your $300k home and used that for the rent money you would be renting free for about 20 years. Not a bad idea

[@andyYoutubeEmail]

The main reason one should sell would be to downsize to a smaller home. Yea renting is risky since you don't know what the future holds in regard to rental cost. We have a friend who just sold their home (2700+ sq feet) and bought a small 2 bedroom in SC where property taxes are low and they will be paying around 1/2 what they sold their home for. In that scenario it might be wise to sell but not selling to rent so much.

[@jgallone]

Apologize if this was already covered and I missed it but...have you modeled the scenario in which lets say December rolls around and the market for that year has done quite well, so you take extra out of your retirement and put that aside to use as a buffer for the years that the market is down? So, in this $75K/yr example - come Dec, you're up 15%, so you withdraw an extra ~$20K. Just curious if that type of strategy makes sense.

[@markguitarlfk]

Hi Troy, excellent work as always. Here's a question: what is the impact of taking money out of your nest egg in a down market? Does it make sense to rotate a year's worth of money into a CD in up years so you're less likely to take money out of your nest egg in a down year? Starting every year, does sacrificing some earning potential in this secondary CD almost guarantee that you only spend your winnings, not your principle?

[@toddwarmbrodt8087]

I am retired with $ 400 thousand. Living good 3 bedroom house , challenger srt8 in the driveway, 20ft Thunderjet towed by a 1ton Ford living on $3800 hundred a month and still making money . The longer I live the more I will have as long as the government/ democrat party doesn't crash the system

[@JJoeisCooking]

I certainly could.

[@merickel1]

Dude. 95? Really. I don't think so bro. My mom & dad died in his 70s. Wife's grandparents died in their 70s. What you aren't taking into consideration is the fact that age is a gamble. I'd rather retire early than die the year after I retire. Never plan on 85. Truth is, 80 is a blessing.

[@markdean1984]

You can never retire in USA, or stop working. It doesn’t matter how much money you have, you are one hospital bill away from bankruptcy. The only way to beat the system is to get out of the country.

[@LIENLE-eg6hn]

AGREE

[@elliottschertzer876]

Sadly true

[@UnCannyValley67]

Portugal

[@johnsonajayi7846]

Get out of the country and if you go to a country without a good health care system, you will die on time, that is the deal breaker. Think about that.

[@Scottyh1110]

Oh that's BS. Hospitals can only charge you if you are in one. Nursing homes can only charge you if you are in one. No one can get around death, and it don't have to be expensive.

[@richardrojas6306]

If your home is paid off, you're okay. What i did before I retired is I bought all brand new appliances, replaced my house heat system, bought a brand new car. This gave me more flexibility to go into my retirement. Plan ahead on your purchases. Good luck with your retirement.

[@robertdascoli949]

Why did it matter if you bought all that stuff before or after you retired?

[@moblack5883]

@@robertdascoli949 and why didn’t they wait to buy it when those things went out? Seems like a waste to replace something working. No business is ran like that.

[@maxw576]

@@robertdascoli949 I can't speak for the OP, but I did similar. Also paid off mortgage. My goal was to minimize expenses in the early years of retirement. This reduces withdrawals from 401k which count as earnings. This helps with obtaining obamacare subsidies keeping costs lower, which in turn reduces taxes due to lower 401k withdrawals. I wanted to reduce the cycle of increasing tax/Healthcare costs. I also like to reduce stress related to emergency situations, so I am weird and do a lot of preventative maintenance.

[@bruced.370]

@@maxw576 Right on!👍

[@seetheforestthroughthetrees]

@richard rojas. That is a great point to make. "investing into the home you plan to be in during retirement while you are working lessens the chance a major cost shows up in retirement. As a Certified Financial Planner™professional, I believe Retirement success is as much about reducing the chances of big unexpected costs as it is about anything else... especially in the first five years of retirement. Cheers to you and great advice to others.

[@markbajek2541]

You mention the scenario of not having a "guaranteed" return of around 7 percent per year. Couldn't some type of insurance product with an inflation rider provide a "guaranteed" 7%. Then what's that outcome like?

[@bobgarrell8242]

Great video / information. One thing isn't clear. When you say $75k in spending, is that total (IRA withdrawls + Social Security) or $75k from retirement accounts + what you (and spouse if applicable) draw? Thx

[@OakHarvestFinancialGroup]

Yes, in today's dollars. It's the inflation and taxes which cause the long term need to be a lot more than 75k. To spend 75k in today's dollars, 20 years from now, you will have to withdraw somewhere around 150k give or take depending on taxes and inflation.

[@chessdad182]

According to the most recent data from the U.S. Census Bureau, divorce rates were highest (about 43%) among both sexes, aged 55 to 64. It would be funny if the Monte Carlo simulation also simulated the chance of a divorce. John and Jane look at the screen and see Monte Carlo said they would be divorced in three years. Jane smiles, John cries.

[@robynnichols1695]

Unless I missed it I wished I knew if the couple, when they delayed SS to FRA, continued to work until FRA or started withdrawing at 62 then delayed SS.

[@dorinatudisco1308]

Without even watching this video, the answer is Yes.

[@jwall62]

Not if they want to spend 150k per year

[@dorinatudisco1308]

@@jwall62 of course. But one could have a very comfortable retirement with $900k.

[@jwall62]

@@dorinatudisco1308 yes, but my point was you saying without even watching the video. You can’t make that statement without seeing how much they want to spend. If they wanted to spend $900k a year , the answer is no they can’t. I’m just being extreme, but it makes a big difference

[@jwall62]

@@dorinatudisco1308 100% agree. As long as expenses are not crazy. This was a great video btw.

[@tyroneshoelaces9742]

@@dorinatudisco1308 Comfortably? Not really. Very modest living, yes. 20 years ago, for sure.

[@edmhie1]

Some people retire w/ only social security w/ them.......abroad!

[@custardflan]

yes

[@stefaniamcmasters9034]

my grandparents just recently retired with only 300k in savings and they receive 72k in social security a year. they live comfortably and they’re about to travel europe for a few months

[@keithwiebe1787]

Huh? How is that even possible? Are you sure they that much in SS and pensions? They don't have much saved compared to their incomes they must have had to have that high of SS.

[@tyronmegawatts6580]

The max a married couple can get in 2021 is $66k, and that is rare.

[@stefaniamcmasters9034]

@@tyronmegawatts6580 idk what you’re talking about. my grandparents began collecting SSI when they were 70, so they received more benefits. maybe you have the wrong numbers.

[@yankinwaoz]

@@stefaniamcmasters9034 the are not collecting SSI. SSI is a means tested welfare plan. You mean that they are collection SS.

[@stefaniamcmasters9034]

@@yankinwaoz yes, i made a typo.

[@viaggi3945]

Would be great if you do a scenario were there is SS+Pension 0f 5K per month + 1 million in 401K. Lot of people also have pension.

[@tessprovencher4395]

If an individual is no longer working for the last 3 years and plan to take social security at 62, your SS $ doesn't changed since we are no longer contributing to ss system. I retired at 57 with $500k no debt and spend minimal. How long does my $500k will last? I'm healthy with $50k in hsa. My annual expenses is $ 50k. My only income will be ss and $700 mo pension

[@sailingelectricgitana1286]

Dude! You can retire overseas and live like a king with 900 large. Thailand, Cambodia, Vietnam, Philippines, Malaysia. That's if you are a travel novice. More skilled travelers can look to Kazakhstan, Uzbekistan, Indonesia, China, Mongolia. It all depends on what you like to do in your free time, health, language ability, etc.

[@jocunningham]

True! we are retiring to the Philippines in a few years!!! Only need $1500 a month to live a decent life. Can't wait!!!

[@ariefraiser140]

Not everyone wants to do that. Especially at that age They may want to stay close to family friends and grandkids with what little time they have. I personally would love that type of retirement but I know a lot of people wouldn't. Heck most people hate change and having to adapt to a new culture.

[@DestinationRetirement]

Thats my plan. Merida Mexico baby!

[@syrentertainment135]

@@ariefraiser140 well then they gone live a stressful retirement if they stay in the US. You will get more bang for your buck leaving the US and actually live comfortably…It’s just facts… hell with the money u save living overseas u can fly home and check on and visit family whenever u want

[@syrentertainment135]

@@DestinationRetirement Dominican Republic for me 🤗

[@charlieporal1126]

My wife and I were just reviewing her SS statement. She paid a total of $11,981 in SS taxes. If she waits until her FRA, 67, she will collect $2,135 per month. That is $25,620 per year. Why should she begin collecting at 62? Look at your statement before doing something foolish like collecting at 62.

[@THEL0NEARRANGER]

If you invest the SS monies (in SWPPX) at 62 until you turn 65 or 71 or 81, YOU come out ahead as the monies grow at 9% a year. And if you happen to die before 81 .... you will thank me on your death bed with you LAST breath maybe. Ha Ha Ha

[@bigpapi101]

My question to you is whether you have a lifetime defined benefit or just funds from a 401k that’s been fleeced for years?

[@Think_pls]

900k at 62 , can't still retire , what kind society we come to, it's scary

[@bruced.370]

Fictional

[@lunarluna]

I am 57 and my primary calculation is world is going to hell and I want to enjoy my life as much as i can now.

[@moblack5883]

You can easily retire. Both my parents retired with less than that. Sent me to college cash and live comfortable.

[@limrosemary8536]

When I was 37 with $100 000💰 & $20000pa rental income i quit the corporate to do things tat i really like ... now 30 yrs later I hv $50000 cash & $

[@wbuck926]

How do you factor in a pension from a government job with these scenarios?

[@sct4040]

Yes! Unless, but still need to budget.

[@colemant6845]

Really good presentation! What is the Software Package you use at Oak Harvest?

[@colemant6845]

Well? No Response Oak Harvest?

[@user-pl8gl2cb7r]

Finally seeing a relatable scenario. Can’t relate to the multi-million examples

[@OakHarvestFinancialGroup]

Hi Mike, we're glad you found one that fits your situation a little better! We're constantly adding to the list of case studies to try and cover every type of situation as much as we can! Thanks for watching.

[@VistavisionMike]

I retired at 63 with way, way less than 900,000. If you can't retire on this kind of money you need to acquire a much more simple life. Scale back on materialism. You can be very happy with a lot less.

[@andyYoutubeEmail]

Wow they need $75k a year to live? This would have to include a large mortgage payment or somewhat high medical bills. My wife and I live on $3k a month easily and retired at 58... I have no mortgage of course. My largest bill is property tax. I suppose if you eat out a lot at expensive places, take more expensive vacations, etc. it could require more per month but not much. With the $3k per month I am setting money aside each month out of that for potential medical expenses, property taxes, a future auto replacement, etc. Plus if I started taking SS at 62 this alone should cover 2/3 of what I'm currently spending per month dropping me down to $1k/month. So yea baffling his numbers.

[@stevezoleski8844]

As the video points out, there are multiple moving parts to the retirement process no matter how much you have saved. Good luck with your calculator!

[@theultimatetowerofterrorre301]

I know it is very simplistic, but if a person at 62 has perhaps double the amount of savings as postulated in this video (ie 1.8 million) would it be way off to assume that I could take very roughly twice the amount in retirement calculated here, minus the increase in taxes (assuming you are drawing on pre-tax retirement savings) as you go through in the video?

[@lbowsk]

If you live alone and in a trailer, in Arkansas, you can easily get away with it. If not, good luck, and I hope you don't get sick.

[@OroborusFMA]

The back-breaker in the US is healthcare. If we had health-care as a right, it would be a total game-changer for tens of millions. Heck, if they just included vision/hearing/dental in Medicare I would probably retire at 65. Right now I probably won't until 70 because my employer plan is the only peace of mind possible.

[@edhcb9359]

“Healthcare as a right”? Like in Canada where they are taxed to death but still can’t get operations causing over 50,000 Canadians to come to America and pay cash for surgeries every year? 😬

[@dfoster1999]

@@edhcb9359 As a Canadian I will attempt to explain our health system. It is available to all Canadians and yes our tax system is higher than the US, but all Canadians have healthcare and the wait times in my personal experience are minimal to non existent. I would rather pay more taxes and know my neighbour ( yes that is how we spell neighbour ) does not have go bankrupt to pay for healthcare.

[@edhcb9359]

@@dfoster1999 In America about 8% of people do not have health insurance. Because our poor and our elderly are provided with free health insurance, it’s really mostly people who CHOOSE to roll the dice and go without it that end up in trouble. My 18 year old has a job flipping burgers while going to community college and it includes health insurance if he wanted it. So personally I’m glad I don’t pay outrageous income tax rates just so that a handful of Americans don’t have to worry about paying anything.

[@bruced.370]

Socialist

[@sct4040]

Vision checkup, glasses and hearing aids are more reasonably priced at Costco. Well worth the $60 membership. My hubby saved thousand in the hearing aid ($2800) instead of $7,500 purchased five years ago. The private audiologist wanted 10k for a new pair, what a crook. Progress glasses was $235 a pair. Eye checkup betw $90-120. Dental Save Basic plan is $50 per month PP. Hope this helps.

[@anthonyjohn4380]

Yes..........................

[@TheVineOfChristLives]

In the Philippines you can and even live like a King

[@curtissharris8914]

Yeah but you're in a strange country and everything you know is a 14 hour flight away

[@cjswa6473]

The macro View is we have had mostly tremendous stock returns because of tremendous debt creation and artificial low interest rates. What are the odds we can continue this? Less than 10% ,,I believe... building like a volcano 🌋. It will blow

[@davesivirn2283]

all fine and dandy but these are crazy numbers. most people have about 170k if they are lucky. But yet millions of people somehow manage survive, and even have great retirements. This is all geared to something like top 10-15% of people.

[@davidcox2197]

I would say that right off the bat the only way to retire is to be debt free beforehand. That is what we did.

[@alanrouse1]

There's another strategy worth consideration: Live on less income in the early years. You could delay withdrawals from retirement accounts and take Social Security + any other pensions early. Better yet, live on that budget for a few years before you actually retire, and aggressively save the surplus (paying off house and any other debt before you retire). It worked for us. We're 7 years into retirement and still haven't touched retirement savings. Our Monte Carlo projections show 100% success, because we're doing jus fine without touching the nest egg.

[@gregschaust4298]

You are exactly right. This guy is trying to sell a service.

[@bidkarsalazar626]

Any brunches in los angeles?

[@kenskaer4311]

Current inflation rate is 5.39% and given the unprecedented inflating of the money supply and huge exponentially increasing US debt, I think it’s dangerous to guesstimate a 2 1/2% inflation rate over the next few decades.

[@keithwiebe1787]

That could be but investments and SS will probably go up a substantial amt too.

[@keithwiebe1787]

@JOYA MAHAN the SS is separate from the tax breaks given to rich people.

[@bjbhehir]

@@keithwiebe1787 the Democrats could've increased taxes on Corporation years ago!! They're all crooks and they're all 1%ers!!

[@andyYoutubeEmail]

@JOYA MAHAN SO true... why taking your SS early might be the best choice one makes. Break even age when taking it early (at 62) versus at 65 is around age 76. Plus SS lasting in its' current form is suspect at best... most likely will become some sort of needs based retirement form in not that distant future. If you have much in the bank you might not get to pull SS if you wait.... will go to those who never put anything aside.

[@jimmycarter9099]

I am not depending on that for retirement

[@lordabhikingfisher8087]

The answer to this question is very simple - assuming his SS will be $1.9K /month + $2.6K from 900K @ 4% = $4.5K/Month. If that amount is sufficient then the answer is 'YES' or else 'NO'.

[@bruced.370]

Yup

[@mfkhometheater7742]

Based on my calculations I should be able to afford to retire approximately two years after I die. Well, actually I'm 63 and plan to retire at 67, maybe a few months beyond 67. I plan on taking SS at my full retirement age of 66 and 10 mo so I can collect both SS and my job income at the same time for a bit. I hear a lot about the benefit of waiting to take SS and the videos I see on this never seem to take into account any gains on the money received from taking it earlier. Yeah I know that's hard to predict but let's say you take it at 67 instead of 70 and you invest that three years of income. If you invest well, that could easily out perform the wait until 70.

[@sunnylee7233]

I assume the couple have paid their house in full. Is property tax taken into account with 75K/yr income, and what # of property tax was used?

[@georgeedwards3284]

If you save money after a Roth conversion tax wise you still lose on the compound interest you would have made on that additional investment. That has to be looked at.

[@gngdunn]

Good point and I charted that out once to understand it. As long as I am paying the tax with after tax money from another account it is a wash. The after tax account compounds less while the IRA compounds more, but you loose all that IRA benefit by paying more taxes when the minimum distributions start. My conclusion was to move all the ira to roth at a rate to keep away below the 32% tax bracket in any year, and after that I am done with taxes forever.

[@jdbucha]

Don’t need social security. Plan to start drawing as soon as I retire. It’s $2,100 of free money every month.

[@andyYoutubeEmail]

That is my plan as well... getting an extra $2k a month for free (that gets adjusted each year for inflation) can really help. That is $24k extra a year for life. So that should be removed off the top each month. Plus $75k a year is blowing a ton of money... so better management of expenses seems warranted here. Do a spreadsheet of current bills... reduce some bc you won't be driving so much or eating out at work or replacing vehicles because they wear out driving so much, etc. Don't add "wants" such as that 3 week European vacation you "need" to do every few months but "true" expenses. Then do the math. For me even with small trips.... maybe FL or MI or places like that for a few days to a week I'm still around $37k/year and that is before SS reduces things further.

[@georgeedwards3284]

I made a few phone calls. Unless your employer offers a Roth 401k, the fees for an individual are expensive. Fidelity charges a minimum $8500-$14,000 annual fee depending on deposit, Merrill Edge annually charges .52 pct of assets plus a $240 fee. Merrill Lynch, Schwab, and Bank of America don't even offer Roth 401ks. If anyone has heard of other companies offering it cheaper would love to know.

[@christiwilliams4027]

I believe there may have been a misunderstanding. You would open an individual Roth ‘IRA’ (as opposed to a Roth ‘401-K’). There should not be additional fees…unless you are paying them to manage your accounts. In that scenario, fees would be identical whether traditional IRA or Roth IRA.

[@christiwilliams4027]

Fidelity phone representatives are very helpful. Just be clear that you are interested in Roth IRA (I believe Roth 401ks are typically only offered thru employers).

[@juanplus3324]

Just retire and be frugal. If you don't owe any mortgage anymore why not? Don't overthink, enjoy your life.

[@donnafrflorida56]

Well geez house insurance is 400 a month. Property taxes 400 a month. Car insurance 120 a month. Electric 300 a month.

[@sct4040]

Yes, and immediately collect SS. That's what I did. How do you know when you die? It's enough money. With 900k, you should not be spending 75k per year.

[@deloresredman4792]

Retire early enough that u still have some health to enjoy it.....stop playing russian roulette with your luck.

[@andyYoutubeEmail]

Yea $75k a year is a ton of money to be spending in retirement... unless you have maybe a large mortgage or a winter home in FL I can't imagine spending that much $$ per year. They say many ppl "live on SS" which means the average person gets $1400/month or almost $17k a year and this guy wants to spend $75k a year??

[@Joseph-fr1rs]

But maybe the government makes the gains in the roth Ira fully taxable and not the contributions? could that be a possibility in the future?

[@janetmcgrath8426]

According to that $3.5 trillion debacle they are trying to push through right now, it could. The government is really going to screw over Roth IRA users in that bill.

[@robertlee7332]

Yes, in Vietnam.

[@asandrik3124]

Can you do one like this, but with a defined benefit of $30K/year and $750-1,000K 401K? Asking for a friend! :-) More seriously I love your videos but don't recall one with a defined benefit, SS and 401K.

[@KMarik]

Being old and not very rich is rough in America. Will we ever do something about the horror that is our “healthcare system”?

[@briangc1972]

Only when and if people stop re electing these same politicians every election cycle. Changes in the system only occur when we change the people creating the system. Vote the rascals out!

[@sct4040]

Agree

[@markguitarlfk]

@@briangc1972 In fairness, one party wants health care for everyone and one party does not.

[@briangc1972]

@@markguitarlfk The question is whether I should pay higher taxes in order to subsidize other people's healthcare. My question for you is "Should I have to pay for liver and kidney transplants for all alcoholics?" I think I should not. "Should I pay for insulin for obese people who eat too many donuts?" I think I should not. Yet that is what health care for all means. I don't think anyone should be forced to pay taxes to cover the bills for other people's poor choices. In the UK they started kicking people off universal healthcare if they smoke or are overweight. That is a good start.

[@TRACKERV]

If this is my scenario and I never take more than 4% out and have no debt, can I retire? I assume if I never take out more than I earn, I never use my principal.

[@Wayneman50]

I find your example severely flawed because you are using a live to age of 95. The US historical data does not support this and not even close. The average death age of a male is approx 80-81yrs old. The approx death rate of females is 83-84yrs old. Run the numbers at 80-85 and i think you will have a super positive outlook for this couple.

[@tyroneshoelaces9742]

A lot beyond 95? Nooo. Some? Yes.

[@jerry-cw9yw]

depends on how bad you want to " work and be differently free".

[@robedmund9948]

Like CCWs, it's better to have it and not need it, than need it and not have it. Plan for a long life after retirement folks. You won't be sorry!

[@WhateverItsanOpinion]

This makes me feel so much better.. I am 57 years old with 1.7 million dollars 401k and 2 rental properties that generate 2300 per mo

[@Honestly__now]

You are doing pretty damn good!!!

[@igibon8]

Wow you must be set aside a lot money in 401k when you are young.

[@bruced.370]

Golly keep on working because it is never enough for some...I know people with over $3M still working...crazy no life people I feel sorry for.

[@WhateverItsanOpinion]

@@bruced.370 sorry that you are a loser.. I started saving when I was 26 years old. Is I never bought a new car.. I never bought a boat I never bought a motorcycle. Is I always saved money.. But unfortunately people like you are losers. you made bad decisions. I have no bills no credit card debt. Because I acted like an adult. Unfortunately you did not act like an adult you wanted everything now. You are a loser. I will live the best years of my life because I saved.. I can have a $100000 per year is per year for the rest of my life because I did the right thing.. Sorry that you are a loser

[@WhateverItsanOpinion]

@@bruced.370 Keep voting Democrat someday someday they might give you free money because because you are a loser.. You made bad decisions and you want to blame everyone for is everyone for your bad decisions. meanwhile people who sacrificed their entire life to save money you want to punish them

[@jimmycarter9099]

Good advice start early

[@donkemp8151]

It depends. How much will you need each year?

[@kennyhart2699]

Yes sir you're right it's all about expenses

[@bruced.370]

Yes!!!! You win! Right on!

[@kungdu]

If it was me. Take that 900k can make that person at least 80k to 90k/year. Take 20% for taxes and put 10% back into the account to let it grow to account for inflation. Never eat your money by cash.

[@philmarsh7723]

When to take SS. At age 70 or when you're near running out of money, whichever comes first. I'm going to consider SS a backup plan if all else fails, and I want that backup to be as good as possible.

[@flexjay87]

If you average 2000.00 dollars per month from age 62 to age 70, that you do not take, you are leaving 200,000 dollars on the table , that big brother gets to use, for God knows what. But if you have enough cash to hold out, good for you . But, can you guarantee you will live well past 70 ?

[@alexg2915]

With all the inflation we’re going to have in the future I wish he would trade SSI payment to “ the money the Gov sends you to HELP with your electric bill” . That guys $900 is going to have $450 of buying power in 5 yrs !

[@aces926]

Go where you treated the best!

[@bruced.370]

Heaven?

[@maehouse1366]

I did. It's what do you plan to do with yourself? 🤠 Ask yourself do you work for money or does money work for you?

[@dopeyone4697]

I know you have done many videos based on a couple. Can you focus some on a single person never married with no children.

[@bananapatch9118]

Will $36,000 plus your social security pay your bills and what will you do for health insurance for 3 years. Move abroad….SE Asia, Eastern Europe, Mexico, parts of central and south America….live VERY WELL….in some areas you’ll live like a king.

[@edhcb9359]

Most people have at least some family and friends that make that strategy unfavorable.

[@marketbuy]

$900K is reasonable but have you paid off your mortgage? Pay it off and live off social security income at full retirement

[@larriveeman]

if one has a pension of 68K yearly that would mitigate most of the risk

[@Chris_at_Home]

I retired at 66 and with SS and pension I get a pretty good income. I am using some of it to finish a duplex out of pocket where we already live in a finished half. When that is done and rented we will get a winter home somewhere. Now to go shovel snow that fell last night.