Retirement Planning: I'm 58 Years Old With $1.4 Million, Can I Retire?

Troy Sharpe, CFP®, recently read an article online where a 58-year-old man with $1.4 million saved up asked if he had enough to retire. He had $700,000 in a 401(k) account and $700,000 in a non-qualified account. In this episode, Troy looks at 1,000 different scenarios looking at the probability of successfully retiring without running out of money, given the current economic situation.
#dontrunoutofmoney #successfulretirement #enoughtoretire
The analysis is part of what we at Oak Harvest call a Oak Harvest Retirement plan, a customized solution aimed squarely at your retirement needs. Oak Harvest Retirement Plan Instead of trying to fit you into a box, Oak Harvest builds the box around you. So, no two plans are exactly alike.
We tailor investments, income, tax-reduction, safety, long-term care and legacy solutions around your retirement vision and goals. It starts with a discussion about your retirement vision. A retirement vision is the most critical element of a Oak Harvest Retirement plan because it allows us to clearly identify specific goals, allowing our team to get to the root of what is important to you.
Once those goals are identified, we explore and educate you on the strategies that can make your vision your reality. When the appropriate strategies are agreed upon, it’s time to discuss which tools are appropriate to complete the plan.
Stocks, bonds, CDs, annuities and mutual funds are nothing more than financial tools that can be used inside your Oak Harvest Retirement Plan to accomplish your vision and goals. As independent fiduciaries, we don’t care which tools are used. We care only that the best tools to accomplish the job are implemented.
When your Oak Harvest Retirement Plan is complete, you have a clear financial path that can help provide peace of mind. We will build each component that you may need for your specific circumstance:
- You will have in front of you a simple, easy-to-understand retirement income plan.
- You will have an investment strategy appropriately fitting your investment objectives and risk profile.
- You will have a Social Security strategy that’s designed to maximize your life savings - not just your Social Security benefits.
- You will have a long-term care strategy that’s designed to maximize and protect your retirement against future medical costs.
- Your legacy desires will be addressed by a CERTIFIED FINANCIAL PLANNER™ professional who coordinates and works with attorneys who draft the appropriate legal tools, if needed.
Once complete, your Oak Harvest Retirement Plan flows into a monitoring process where adjustments can be made when the investment, tax or legal landscape change. It’s reviewed frequently with you by your dedicated team, which includes your advisor, the investment team, and our services team.
Are you worried about your investments and 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: Click on this link: click2retire.c...
Should you consider building a customized Oak Harvest Retirement Plan that goes beyond allocating funds to truly fit your needs and your retirement vision? Call us at [phone] and schedule a free consultation about you and your financial situation.

[@drewsbenmad]

I retired at 56 thanks to my wife. It wouldn't have been possible without her company stock plan because it far exceeded the 401k we both have. She is six years older than me and was sick of the day to day grind but we had no clue if our savings and investments would be sufficient, we finally went to a financial management meeting and they gathered all our paperwork and prepared a plan for our early retirement. We should have done this years ago but never considered that we might ever have enough to retire early and I thank God and my wife for the ability to do so. We are not rich but everything is paid for and we have crappy health insurance but we are free to roam! Don't wait time is something we have in short supply and no amount of money will buy you more.

[@JoeSmith-nu8oo]

True that money can't buy you more time, but if the money runs out before time, then what??

[@drewsbenmad]

@@JoeSmith-nu8oo Joe that's why you have a long term financial plan. You still need to be careful but don't be afraid. Also pay off everything.

[@tedpark6814]

If you're doing what you want, and have enough money to live, you're ahead! My inlaws retired early and it's good that they did, they had a few years where they could travel and explore, but sadly Theo had a stroke and died while on vacation. You never know how much time you really have, so it's important to live your life as fully.

[@sred5856]

If you are thanking your wife, you are having a great life.

[@snterp]

If you need serious health care, just hop on a plane to almost anywhere else besides the US.

[@jimjensen9139]

You never addressed the home. If it is paid for or close to paid in full that will be a huge difference.

[@nmtumbleweed]

That would be part of what the couple said they would need monthly or annual. It was not spelled out but was included. Just like car payments...so on...

[@jimjensen9139]

@@nmtumbleweed Just run some quick numbers for me. At a 4% withdrawal rate how much money do they need to cover the mortgage payment. Then how much money would it take to pay off the mortgage. And finally if you don’t have and don’t need to make a mortgage payment how much do you save in federal income tax? How much does this reduce the amount of social security subject to federal income tax. For my household it changes the total nest egg needed by about $200,000.

[@andymacmac9151]

@@jimjensen9139 Jim, this wasn’t a client, it was taken from a letter to a financial editor/newspaper, so they are just using the figures that were published as an example.

[@themountainwanderer]

The health insurance prior to age 65 is really a wrecking ball. That's not even considering costs if actual medical issues arise. Makes me want to consider going abroad to bridge that time...

[@stellasatterlee7332]

Where would you go?

[@joyblevins8712]

I agree

[@DillyPutty]

If you have 1.4 million in savings, there are several ways to generate a modest "income" which qualifies you for substantial ACA subsidies.

[@kastrobudiman]

@@stellasatterlee7332 How about Bali,Indonesia?

[@sct4040]

As one get older, you want to downsize due to raising real estate taxes, and you don't want to spend time cleaning and maintaining your house. A small Condo/Co-Op apartment with elevators is ideal, you have a Super to take care of issues, and management to take care of paperwork.

[@DougAlesUSA]

In some of these videos, they break retirement into three stages that apply to most people. The early retirement years, when you still have decent health and energy, they call those the go-go years. Then you move into the slow-go years, and finally the no-go years where you’re traveling is limited. As someone who is planning this process now, we upsized our real estate dramatically. We now own a resort in a touristy part of the country called Door County Wisconsin. We have plenty of room in our 3,000 square foot ranch for adult children, grandchildren, family, and friends to visit for a day or a week, hunt and fish on our private land with spring fed stream and private pond, ride side-by-sides on private trails, work on hobby equipment in our own mechanic shop, split cords of firewood, use a compact utility tractor (some call these a hobby farm tractor) with a gaggle of attachments, build wooden items that are simple with the younger grandchildren to more involved with the adults, host gatherings and more. My estimate is we will be able to self maintain this resort throughout our 60s, then downsize once it becomes too much. Until then, we love hearing about our grandkids begging to go to mamaws and grandpas place, and they often win.

[@Peter-td3yk]

condos have a real problem with dues..Read articles, they can go way up if major work needed to be done..but a regular home you can just limp along..

[@Rottingboards]

@@DougAlesUSA My last vacation was in Door County Wisconsin. It was beautiful in that area. I loved the lighthouses. We stayed in Ephraim. Walked a lot in Peninsula State Park. We will be going back to kayak.

[@MWS1960]

I took an AXA Annuity and I was told that once I annuitize I would not be charged the annual fees, but once I die the balance goes to AXA. The agent did not put spousal support on the investment. Never go with an annuity ....if I had the cash in the market I would have made an additional 200k over fifteen years. Annuities are very complex

[@johnjaco5544]

Never getting annuity you can never get your Principal back if you need it. Annuities are a bad idea Learn everything you can about them.

[@farshimelt]

When I asked an accountant about annuities, he said, "If it were me, I wouldn't do it." I didn't.

[@Lawdog1523]

Michael, annuitizung and using an income rider or joint income rider are 2 very different things.

[@Lawdog1523]

@@johnjaco5544 that's not accurate. Usually principal is tied up for the contract length (5 to 10 years), but has some free withdrawal percentages and a surrender penalty schedule. At the end of contract entire balance e is available to move. However in this example, if a client has allocated the funds for income, the client should be less concerned about principal and more on the income stream.

[@beautyRest1]

I get sick when I already read the headline: can I retire with 1 million.? Do you know how many people have to make it on a small social security check? My answer is if you got all this money and you are not sure if a million will last you, just live within your means, cut back and be CONTENT,!!

[@nphotodotorg2690]

You are absolutely correct! This video is made to scare average people. I will have between $400-500 max (everything added) when I retire and I think I will be fine. I still plan to go for an early retirement at age 62. I want to enjoy life than keep working and saving hoping to use it when I can hardly walk.

[@TalkingGIJoe]

The question is not can I retire... yes you can... anytime... the real question is can I maintain my current lifestyle if I retire...

[@thomasmaduro6107]

Automatically you're expences will drop like not needing transport to work, working clothes, eating in the restaurant on your lunch break etc. So if you want to retire you're lifestyle will never be the same and much cheaper

[@Rottingboards]

@@thomasmaduro6107 I'm going to disagree with you Thomas. Not during the go-go years. You are spending more for travel, sports, eating out, and exploring the new you.

[@squirrelcovers6340]

I did it at 49 years old with 1.1 million. Everything paid for. If you can't make it for 35 years on that, you'd have never accumulated 1.4 to begin with

[@ddenuci]

Roughly what are you medical/dental insurance bills?

[@StevenGSafran]

Easy to retire at 49 with 1.1 million if you have no kids and don't plan on living past 55.

[@arturtoth3185]

I have no kids and don't plan living past 55.

[@Duke_of_Prunes]

@@carlkpsplucky5554 It also largely depends upon locale. $50K per year is quite generous in a small town, but you would end up living in a box van on that income in San Francisco or Palo Alto.

[@rayce36]

@@arturtoth3185 The problem is your plan, you will to 81 yrs of age.

[@BusyBeeCompany]

Everything depends on your lifestyle and willingness to downsize it if needed to live on what could quickly become a normall average wage.

[@redsoxwinagain2007]

Good advice based on this use case. Anyone can retire at anytime. Lots of variables and risks. No matter how you crunch it, there are factors that circle back to nothing more than luck. Some are forced to work well past the average age and some continue to work because they like what they do. I am aiming for the middle. I’ll keep working but only when and as I want to with no dependency on work based income.

[@57054]

you have to have both social securities, you and spouse, to supplement a 1.4 mil nest egg if you want to retire at 58 or 60. In year 2023 and beyond, and assuming you'll live until 88 or 90, 1.4 mil alone won't get you through 30 years of retirement, 20 maybe but definately not 30

[@nerad1994]

Can you Retire at 58? Bro you can retire at 38 with 1.4 million.

[@TT-fq7pl]

@@ccc-qo6ls of course you can, if you are genuinely frugal and not frugal by the ridiculous North American definition.

[@cheynebest7028]

If you have a below average at least in my terms 5% return a year... thats 70K a year. Many people don't even make that with a mortgage and family to raise.

[@bruced.370]

@@cheynebest7028 amen. Yes!

[@ebutuoy5088]

Of course you can.

[@CharlesAPetitjean]

How do y’all justify your all-in cost to the client? The annuity you’re placing them in has to have an internal expense of at least 1-2%; assuming you’re charging an additional 0.5-1% given AUM. Why can’t you responsibly place your client in a diversified mutual fund/ etf portfolio where you can easily pull levers to meet a client’s changing risk tolerance / goals, be in control of their asset allocation should the client want to take on more risk/ take risk off the table or make a change if a certain fund/ sector is consistently underperforming. What strategic value are you providing to the client as their advisor to justify your fee?

[@billb7794]

Don’t want to speak for him, but to me, the value of the advisory is in the building and maintenance of the holistic financial plan, including the tax planning using asset location (not allocation, but what assets are taxable and which aren’t). For me, working with an advisor now for the “decumulation” phase of my life, has given me the piece of mind to sleep much better at night. I’ve been working with my advisor for a year and I’m 56.5 and will retire at either 58 or 59. I did a good job during accumulation, but I know enough to know I don’t know enough to maximize my retirement years without the help of the advisor. I think if your half way savvy and disciplined, you can handle the accumulation phase by your self, but decumulation is quite different and handling it in the most efficient manner, is the key and where the advisor earns his 1%. As to an annuity, I put a good amount into a variable annuity with a living benefit 10 years ago. It has tripled in value over that 10 years (Jackson National is the only company that can get those kind of returns for you for what its worth). It’s now about 1/3 of my total Investable assets (no real estate used, I don’t include it in my conservative plan) and between it and SS, I can have 80% of my retirement needs taken care of for my life and my wife’s. My portfolio only needs to cover about 20% of my spending needs and its 2/3 of my investable assets! So to me, the annuity helped me create my own pension and move up the minimum retirement “floor”. Take all of this what you will but annuities for 1/3 of your investable assets and a good financial professional for the rest has provided me with the piece of mind to know I will make it very easily in retirement when it starts at 58 or 59 and helps me sleep at night. Cost is only an issue in the absence of value, that’s not the case for me!

[@flashoflight8160]

Agreed 1000%. I think AUM of 1% is a lot unless he has tax planning, estate planning, and real estate knowledge on top of the financial stuff. Hard to find a guy that truly knows it all and not just stringing me along thinking I'm a dummy. I know intermediate level tax, estate, and real estate. I need someone that knows more than me. Probably better to hire a separate CPA and estate planning lawyer a-la-carte and I'll DIY the investments.

[@cfh3395]

This guy is trying to scare you to sell you a crappy annuity

[@CharlesAPetitjean]

@@billb7794 I’m not a big annuity guy myself and don’t incorporate them often into clients plans. I also don’t think they’re bad in every instance. I just don’t like them as a “general prescription” to retirees due to their high internal expenses/ surrender charges and (somewhat) limited flexibility. I’m an Associate Advisor at a WM firm btw. That last sentence you mentioned is a big one. One that I’m constantly reminding myself of and I’m glad you’re experiencing that with your current professional.

[@testodude]

Charles, I ask myself this question every time I watch these videos. Where is the value? Is this guy just an annuity salesman? Maybe his value is in tax planning?

[@bigjohnny5280]

Doesn’t this assume the you put this plan in place and never change it for 30+ years? If your FA doesn’t advise you to make little changes based on what happens over the years. If your FA does not do this, find a better FA.

[@ticleve2]

The financial institutions want you to live off the interest of your investments while they can continue to make money off the principal. It's your money, use it.

[@Stephen_567]

Chances of both of them living till 90 are very slim. Also, when you don't have large income health insurance isn't expensive because of the obamacare.

[@bruced.370]

I noticed he doesn't mention that....He's not focused on details

[@BCS2023]

first of all, realistically there’s an age at which you should let the rest of the world worry about you. in other words, start living now while you can and quit worrying about being really old and broke.

[@dking1362]

​@@BCS2023 Seriously? I plan to take care of myself. It's not "the rest of the world's" job to take care of me or you. And as part of "the world", please don't count on me to worry about you. Not happening. Make a plan. Live on less than you make.

[@JimmyTheGreek2000]

Because only the RMD is taxed at normal tax rates (tax bracket!) in the year it was withdrawn the remaining capital assets can grow tax deferred in the future. Remember the humour: " There is a penalty for early withdrawl ! " This factor has to be taken into account !

[@schadlarry]

1.4 million, no debt and 36K/year incoming in 4 years, yes you can retire, if not you will never be able to retire. Have a large cash balance for living expenses, keep your "income" low before you hit age 62 and qualify for medicare. The program typically doesn't look at assets, just annual income.

[@slomo4672]

You mean Medicare or Medicaid?

[@schadlarry]

@@slomo4672 Oops medicaid.

[@OakHarvestFinancialGroup]

Thanks for joining in on the conversation...

[@TheGregWallace]

good luck with that plan.....

[@schadlarry]

@@TheGregWallace Been working so far.

[@MWS1960]

I was told that my wife should take Social Security at 62, and I should wait until 67. Why you might say……well when I take my SS at 67, my wife’s SS then increases to 50% of mine. Is this correct ? How do I have a consultation ?

[@danemoll4065]

I’m surprised that equity in a home or property weren’t included as I believe that would help if included in assets. The other item is that as a person ages their spending would naturally taper off a bit.

[@chrisp3913]

How so? You have to sell your house to get at the equity or take a HELOC which creates another debt and monthly payment

[@brianmills4891]

@@chrisp3913 equity in your primary residence can be a big help in the later years of life. You do still need a place to live but that mortgage free home can be sold when you no longer want or need it. Those proceeds can fund a lot of rent for the last 10-15 years of life and leave a lot left over to live on. It's just another asset that can be pulled from, but you do have to be honest with yourself about the fact that you will still have a dwelling expense of some kind. Some are living in a much nicer/larger house than they need or want to maintain. In those cases a downsize can produce some nice low tax income early in retirement that can be invested for future use.

[@DanielPanuzi]

I'd like to retire or work less in 5 years, and I'm curious how others split their pay, how much of it goes into savings, consumption, or investments; I earn roughly $250K per year but have nothing to show for it.

[@jeffraines414]

The flaw in your analysis, just like 99% of financial planners and tools, is that it doesn't take into account a decrease in spending as we age. I've written my own financial planning software to allow for a decrease in spending and the rate at which one "runs out of money" is considerably decreased. This too with 1000 Monte Carlo analysis. Not to mention a mortgage payoff, other debt payoffs, etc. To the person who's data is being presented, you can 100% retire at 58 with a 1.4 million. Go for it

[@chessdad182]

Nothing in life is 100 percent certain. Except death and taxes. Probable yes. 100 percent certain no. He might retire, then next week find out will be raising a grandchild. Or his investment in DogeCoin went down the toilet.

[@jeffraines414]

@@chessdad182 True, but he could also win the lottery. Anyone who's 58 and amassed 1.4 million in retirement accounts isn't dumb enough to put a bunch in dogecoin. Obviously you're not familiar with retirement planning, multiverent analysis, and Monte Carlo simulation. I would bet $100,000 that he'll be okay if you want to take the opposite position....

[@chessdad182]

@@jeffraines414 I guess you are a genius. Give yourself a pat on the back. And anytime you want to play a game of chess, let me know. I would like to see your genius in action. And oh by the way... I bet my earnings are far beyond yours.

[@closecatapult8472]

don’t play chess against a guy with chess in his screen name..also, is your software available somewhere?

[@bigtoeknee11]

Would like trying out your software if available, and Thanks

[@johnpschwartz]

Really? 1.4 Million and you're asking this question? This pisses me off!

[@livinglucky9158]

1.4 millions is enough to retire at 58 if your house and car is paid off but u have to consider health insurance as well because at that age it’s not cheap and it’s gonna keep going up. The older you get the more health insurance you gonna need because if you ever get seriously ill that 1.4 millions will be wipe out quickly.

[@farshimelt]

@@gregh7457 That's what I did.

[@pigbenis2812]

That’s why you bury some untraceable gold

[@jamesalias595]

I am not going to watch this video, but just based upon the headlines of the video, the answer is HELL YES YOU CAN RETIRE. The real question is what life style do you want to maintain in retired, where do you want to retire too and do you have any debts that determines everything. Don't even need to worry about healthcare as we have a safety net called Obamacare and last of all Medicaid if you are really poor.

[@The52victor]

You won’t qualify for Obama care if your on social security…. Why do folks keep saying that…

[@jamesalias595]

@@The52victor The person is 58, so until 65 you don't get medicare but use Obamacare.

[@DillyPutty]

In some states you cannot get medicaid unless you are under 18 or pregnant. ACA is definitely worth considering.

[@DillyPutty]

@@The52victor If you are not old enough to get Medicare, you can get ACA depending on income.

[@anthonydooley224]

I could have answered the question and explained it in less than 5 minutes. Running out of money is not even an option because before that happened, you would return to the workforce or start a business.

[@TheGregWallace]

What?

[@merickel1]

These financial advisors want 2 things always. Work longer, invest more. Nope. I'm 43 with a around 800 between my wife and I in investments and cash. 2 Roth IRAs, 401k and a STRS plan. I'm ot working past 50. At least not in a career. If I'm working somewhere it's because I want to.

[@dking1362]

Sure hope you're right, but if you end up with $1 million and retire at age 50 and there are 2 of you - you better plan on living very, very simply or dying young. A single individual close to me retired at 58 with $1 million and no debt (house paid off) AND has a small pension. FA recommend he live on $35k/year...tougher if there are 2 of you and you plan to stretch it another 16 years (age difference at retirement x2 people). Would make me very uncomfortable, 'cause I don't know what job I could get if I run out of $ when I'm 75!

[@mwscuba]

seeing the medical costs makes me thankful that i live in a country that has free at the point of use health care. its fascinating watching retirement planning for other countries.great video by the way

[@JM-io4vb]

this is an age old debate. I'm an American who has worked with many Europeans over the years. The "free" healthcare in Europe is paid for by taxes that are 20-30% higher than they are in the U.S. So it isn't really "free". Personally, I find that the government does an awful job with everything they touch. I'd much rather keep some of that tax money and spend/invest it the way I want. That includes saving money for retirement and for healthcare during my retirement years.

[@mwscuba]

@@JM-io4vb i never said it was free. That’s what I love about social media people not actually reading and understand what they are commenting on.

[@JM-io4vb]

@@mwscuba Hi Mark. I wasn't slamming you. Sorry if it came across that way. In my defense, you did said it was "free at the point of use health care", so it does kinda sound like you're saying it's free. Of course, nothing that any government provides to its citizens is "free". My European colleagues were very unhappy about their tax rates (which is used to fund things like the medical and education systems), and this is something that most Americans don't understand when they complain about having to pay for medical insurance.

[@mwscuba]

@@JM-io4vb in the UK it is “ free at the point of use “. I go to hospital and don’t get a medical care bill 👍🏼 but it is funded through tax, so any UK tax payer ( so basically anyone earning over 12.5k ) will fund health, they also fund other stuff like schools, road, benefits for people and the old.

[@jameschaves5723]

Yeah you can keep your European healthcare!

[@jodyt.9651]

Don’t forget... as people age spending goes down and I think this video should reflect that.

[@vincef7487]

Exactly.

[@joseperez1085]

So true...

[@christinelu7949]

I keep spending more...😂😂

[@geralddery1060]

I don't see myself at 78 needing 60K a year to live. So yep, it always seems like they are always forgetting to mention that the older you get, the less you will need!

[@dresser6135]

Not necessarily. At 72, & retired, I find that I spend just about what I did when I was working. Just on different things.

[@tomdrummy4984]

It’s not that complicated. No mortgage, no car payment.......yes, that’s enough. I retired at 55.......seven years ago. I still have the same amount of $. Actually, a little more.

[@joaocolen7768]

Please check the cost of living in João Pessoa Brasil. With $2000 a month you leave like a king.

[@wwrussell180]

Annuities benefit the advisor more than the client so you must not be a fudiciary.

[@TheGregWallace]

Wayne you are incorrect. You need to do more homework.

[@jerryjoeholland2397]

Very Easy to keep a great lifestyle. Leave the USA for a better life with a fraction of the cost!

[@rmh691]

They can sign up for AHA until Medicare and since they won't be working it will be heavily subsidized so where in the world are you getting that $23k per year healthcare cost?

[@frankish5314]

Exactly. We live on about 40 to $50k per year in retirement and that includes a 7 or 8 week trip overseas. Anyway we spend about $10/month bronze plan premiums and our average out of pocket costs are around $2000. Now we are in great health and can afford the "risk" of a bronze plan. I think $23k/year is a bit overkill even if you had poor health and a higher level HC plan.

[@DillyPutty]

ACA. If you have your retirement investments well positioned to generate modest income you can likely purchase a silver plan with reduced or no deductibles for minimal or no monthly premium. If you understand how ACA subsidies and cost sharing work it's an excellent early retiree financial hack.

[@frankish5314]

@@DillyPutty Yes that is mostly true and I know others who have done exactly that. However when I looked into the Silver plans (with cost sharing reductions) in our Zip code, the price jumped from $10/month to $231 and the max OOP fell from $7000 to around $5k. In other words it wasn't worth the extra cost. Now if we lived just 40 miles North of where we do now then the Silver plans dropped to $91/month and the deductibles were much lower.

[@frankish5314]

@@DillyPutty Note also in Jan 2022 the ACA is being improved such that you can go to any out of network hospital in an emergency and ONLY be billed at your in network rate (i.e no out of network "suprise" bills). Thus its reasonable for us to buy the SILVER (CSR) plan and travel 40 miles to see our primary, knowing our local ER is out of network.

[@DillyPutty]

@@frankish5314 Yeah, your milage may vary based on personal and local factors. Took me a bit to figure out the best options for our situation. Also going forward who knows what will happen with ACA. With our current overpriced healthcare, unsubsidized coverage could run a couple near retirement ~$2K/month.

[@wildflowerwind6941]

So I guess this is just a sales pitch for annuities.

[@TheGregWallace]

@@jasonjmarchi Jason the first part of your answer makes no sense. If 200k is all some has when they retire........they have no business retiring. This vid is about retiring not how much money you have.

[@wesb8159]

I really don't know what to think when I see these things. 58 with 1.4 million and don't know if he can retire? At first, i thought how ridiculous. But then I thought he might be used to driving Lamborghinis, not Toyotas, and he might be used to 5 million dollars home instead of 159,000. And he might used to eat out every day at 100.00 a plate restaurant, instead of Olive Garden once a month. He might be used to vacation at the French Riviera instead of, say, Gatlinburg. So, yeah, he might need more money. The rest of us retired at 62 with social security and 60K. And yes, some investments. Am 65 now and doing fine.

[@erickphillips8507]

This scenario does not take into effect that as you age, you spend less. It’s not a straight line upward.

[@MartyMeyerdierks]

Nailed it even with increasing healthcare cost as you age

[@farshimelt]

After I retired, all my costs went down. It all depends on where and how you live.

[@theextendedfamily4215]

This sounds like a fear mongering financial analysis. Just a few flawed analysis that I have observed from this video: - TAXES: If this couple only draw $60K/year passive incomes for living expenses, they will not have to pay federal taxes ($60k income - $25k standard deduction = $35k taxable income). State taxes based on $35k taxable income would probably come in under $2k/yr (0-7% effective rate for SC). - MEDICAL INSURANCE: $60k/yr incomes would definitely qualify this couple with subsidies from Affordable Healthcare Act that should result in less than $500/month (

[@michaelrp88]

Exactly! This is we're at and agree with your point. Also; If you carefully invest a portion of the funds through a an IRA you can fight inflation, Roth is optimum.

[@sred5856]

Good analysis and strategy. I agree with most of what you say. The only issue I would say is getting 6% return is fairly high (it is certainly not conservative) and can be inconsistent year over year. A 20% correction is not unheard of, and can (and will certainly) happen in the first 4 years (58-62). Expecting a +30% return on the other side in the NASDAQ for example is simply playing with fire -- even if they are happening over the last decade.

[@theextendedfamily4215]

@@michaelrp88 _ Yup. My retirement plan is simple: - Home mortgage paid off before pulling the plug on my 9-5 job. Without the mortgage payments, $60k/yr would be very comfortable for us. - Delay collecting SS until FRA. The SS annuity payments increase roughly 10.6% each year from 62-67 (8% increase + 2.6% inflation adjustment every year). Based on the SS calculated payments for my wife and I at FRA, we will only need about $12k/year of supplemental incomes from IRA/401k accounts. Of course, ROTH will be best to avoid being taxed. - Maintain a 5 years of annual expenses in cash values/money markets and/or CDs "bucket" to allow the market to recover (if needed) without touching the investment amounts. - Park my investment amount in a S&P500 index fund (FXAIX or SWPPX). The strategy is to ONLY draw funds from investments if the market is in positive returns. During the negative return years. Leave the investment amount untouched allowing time to recover. Hence, the 5 years of expenses bucket is reserved. After collecting SS incomes at FRA, we only need $250k in the S&P500 index fund to make up the $12k/year supplemental incomes for the next 30 years. Worst case scenario, we can always sell our house & use the gains for additional retirement funding.

[@theextendedfamily4215]

@@sred5856 _ If we use the "bucket" strategy in which 5 years of expenses are reserved in cash values/money markets/CDs to allow the market to recover during down years, we should be somewhat shielded from market volatility. I ran the numbers starting from 2000 when the markets (using S&P500 index) were down 3 consecutive years (-10%, -13% & -23%) and then down again 9 years later in 2007 at -38.5%. To generate $32k/yr supplemental incomes from $1million invested in a S&P500 index fund with a 5yrs cash values bucket would be a solid plan not to run out of money before reaching 100 (which I doubt we would get there).

[@i-postm4943]

@@theextendedfamily4215 , what is your rationale for only having funds in the S&P 500? If you choose more and diversified funds, they may not all experience similar losses, if any. For us, a 2.5% withdrawal rate wouldn't be enough to accommodate our desired travel.

[@michaeldemarillac9992]

$60,000 USD is very comfortable for Australian's who own their own home, as rent is a major expense, but medicine is heavily subsidised, just a few dollars and we get free medical/dental/hospital but same service/doctors (except you get to pick the doctor) if you go private so not worth paying for additional coverage unless you like private rooms.

[@Rottingboards]

This is why I shake my head when one of my American friends boosts we are the greatest! LOL. Way to go Australia! Taking care of the older generation.

[@leathers2]

I really enjoy your videos. Very informative.

[@OakHarvestFinancialGroup]

Thanks Lorrie. Glad you enjoy them...

[@rds990]

OF COURSE you can. Don't overcomplicate this stuff.

[@monicasworld]

Great video and incredibly valuable information. People hear the word annuity and run away. HOWEVER, they are great vehicles for those who want the peace of mind of a guaranteed income stream NOT dependent on market conditions.

[@estone9612]

I would be curious how this played out with the same $1.4 million and younger spouse retiring at 59.5 while the older spouse is 61. Older spouse has a pension of $53k per year, which continues for the life time of either person when one spouse dies; health insurance for both is currently $160. per month until medicare age. The older spouses pension does reduce at age 62 by $1000. per month with S.S. estimated to be $1650. per month. The younger spouse plans to wait to 67 for S.S.

[@kevinhaggerty3643]

It plays out with you being set for life. If you don’t need too much monthly cash flow.

[@joseduran7010]

Thank you for the videos.

[@KB-ke3fi]

I'm 63 and lost my job during 3 oil and gas downturns in 5 years. I had 180K and a 80k year job at 55. Then my house was destroyed in a flood. Then my wife divorced me for nothing, lied to the court, and left with the gardener and took the rest. My parents got old so I take care of them. Nobody will hire me at 63 when they can pay 20 year olds $15 an hour. I have 18K in an IRA of what's left of my old 401K after raiding it when I was laid off before 59.5, had to sell my car, then my kid got sick. I have no insurance. I live out of a suitcase in a garage. I have an Ameritrade account with 5k, that's about it. How much should I take out of my IRA for the rest of my life at this point? I figure 20 bucks a month...enough for a sandwich and a beer every week. Maybe some new shoes would be out of the question. My point is, sometimes, you can work and plan for 45 years in a great career and it can all end within 3 years of retirement due to things you can't control. Just make sure you brush your teeth and take vitamins and buy 4 bullets. The end.

[@iamsuzit96]

If you can drive do food delivery with DoorDash and Uber eats. You can easily make $100 or more in 5 hours a day.

[@hejiranyc]

Sounds like you could write an album of country songs based on the story of your life. Seriously, I hope things look up for you soon.

[@davefoster2962]

Don't get married. If you are already married "unfortunately", best hope not to get divorced. I'll stay as a single, happy and $1M in my bank acccount

[@TheGregWallace]

All you can do is plan for the worst and hope for the best. Not everybody's plan works out. It is what it is.

[@paulk9985]

@@davefoster2962 Same here.... DO NOT MARRY !!!

[@peteclarke]

You have 1.4 million dollars and you don't know if you can retire? SMH

[@jimmycarter9099]

700000 last me a lifetime

[@millerforester6237]

If I had lots of cash, the last thing I would do is tell anyone about it.

[@andrewy4761]

That is probably the case. With his wealth, he has done everything he wanted to do. This is the last thing.

[@FFE-js2zp]

Exactly. And certainly not a Financial Advisor who needs your commission to survive his own mistakes.

[@FFE-js2zp]

@Haary Jing Girls can finally cash-in on dudes oogling her, worldwide. Every hot girl is going to get rich just for existing. Its a new world.

[@RNinja1224]

@@FFE-js2zp this is the most real truth I've read in quite a while. You are absolutely correct.

[@GrnXnham]

That's the problem. Most people are natural motor mouths. They absolutely MUST brag about having lots of money!

[@memm7846]

if a 58 years old wonder if he can retire with 1.4 USD million, that bodes fn well for the rest of us..... #BIGGESTunderstatementEVER

[@MisterMister5893]

/sarcasm

[@bruced.370]

Haha 🤣

[@JonSollenberger]

If they are pulling out 60k a year they would qualify for the affordable care act and probably only pay a couple hundred a month

[@johniboz1]

I'm 72 and I have 3.5 million and I don't know if I'm ready to retire just yet!

[@deasttn]

What is your question?

[@Booboonancy]

To each his/her own I guess. It also greatly depends on your circumstances, like whether you have children you wish to leave most of your assets to, how much do you need to maintain the lifestyle you want, how important is money to you and how important is it for you to really enjoy your life while you still have your health. Many have worked hard and scraped for decades to end up dead within a year of retirement, only to leave a wad of cash to entitled kids.

[@tedpark6814]

If you enjoy what you're doing, why retire? If you love what you're doing, you're better off them most people!

[@Faben202]

If your annual expenses exceed $140k, then you’re probably right, you’re not ready.

[@Booboonancy]

@@tedpark6814 that is very true but sadly most people don’t love their job.

[@calbob750]

Hold off for a few more months, 7% CDs and 14% mortgages are coming soon. I Bonds now at 9.5%?

[@墨紫月]

Why not adding annuity at the start of retirement ?

[@trc4760]

This is the second video I've watched from this channel. Both VERY hard to read due to light font color and light glare down screen.

[@OakHarvestFinancialGroup]

Thanks for letting us know.

[@TheGregWallace]

you need a new computer and monitor.

[@cjirikowic]

If he is making a 100k a year he must have a job where he is working all of time. Would it be a huge impact to social security benefits. If he or a person in this situation, were to take a less time consuming job, with a lower salary, that could also provide health care?

[@davidcampbell7831]

Predicting anything right now involves a degree of faith that the political and financial system will remain as it has. It won't.

[@farshimelt]

It never has and never will. Faith doesn't enter in to it. If you plan your financial health on faith you're not to bright. Knowledge is a better source.

[@therealbuba]

So do nothing then lol

[@happyjustasiam]

$23,000 for health insurance? My God America has gone crazy. I retired to Bali 10 years ago, lovely people, beautiful country, low government debt. Nationalized health care ( like a civilization country) is $120 a year, guaranteed bank cd's currently pay 5.75%. Get out if you can.

[@jjohnston6645]

$23,000 is a little high, me and my wife full coverage low deducts medical and dental is $17,000

[@farshimelt]

Before you think about moving another country, check that countries immigration website and find out what is required, read and watch every video you can about that country. Learn the pros and cons. Check several sources for cost of living. google; cost of living in .......... and look at several websites, read blogs by people living there. In the beginning, it will cost more than you think it will. Are you willing to learn the language? If not, don't go.

[@Wooduck]

Depends on where you live.

[@CB-nd9ki]

So buy and hold AMC, got it.

[@wahiawamang6622]

So the insurance company gets my 600k to invest and pays me back my own principle at 6 to 8 percent a year. Seems pretty good.. for the insurance company. 🤔

[@chillintm]

And gee I wonder how they can afford to do that and remain profitable while markets are suffering those losses seen in the previous scenarios. They must have super smart and secret investment methods to beat the market despite it being proven nearly impossible to do long term.

[@michaelrp88]

@@chillintm They make option calls/contracts in the market and make a killing. You hear about the "shorting" in the market and that's where the $ is made by them. You get a "guarantee" but they make plenty on your money over 10 years. Do that yourself or just invest wisely and you can do well.

[@davefoster2962]

More like 5% as net into your pocket. 6 to 8% is sales pitch. They'll go bankrupt if they pay that much

[@agates9383]

wrong - the 6-8% is the DISPERSAL rate which is made up of principal and interest, think 1.5%- 2% actual interest, the rest is them returning principle.

[@johnradice4235]

Are you kidding I could have retired at 25 with that kind of money 😂😂😂😂😂

[@bruced.370]

I know right 👍👍

[@luv2bbq]

If you can’t retire on 1.4 million you really need to re-evaluate your spending. I could retire today on 200k!!!!

[@OakHarvestFinancialGroup]

Thanks for watching and commenting.

[@superblump87]

Many people aren't accustomed to such a limited lifestyle.

[@MisterMister5893]

Sure if you want to live out the fear of your days eating like a monk and live in your car.

[@giorgospapadopoulos7709]

@@MisterMister5893 which car? :P

[@markm4496]

200k to retire? thats the funniest thing i have ever heard

[@mmhodler5753]

$100k guarantee income each year. ok. but what if hyperinflation hits and the US currency becomes very much devalued. The Fed is printing Trillions and no sign of stopping. How does that play into todays retirement planning?

[@markm4951]

In that case we are all screwed

[@mmhodler5753]

@@markm4951 not if you own Bitcoin

[@YarblekRW]

You lost me at annuity

[@David-hm4vh]

What financial planning software do you use? Looks very user friendly.

[@Rottingboards]

I also love that software. I know the statistics is called Monte Carlo but I would also like to know which software package he has...

[@Rottingboards]

He blurred out the websites... :-(

[@MichaelHallGray]

Here is a salesman trying to sell a high priced annuity with a fat commission.

[@brocklanders6969]

Yep. Lots of these "wealth management" groups on FB. Mailing out tons of "free dinner" flyers. All pushing the same crap -- fixed index annuities. There is a reason no A++ insurer sells this crap.

[@chillintm]

And it’s almost disguised as free advice. The tone and demeanor were my first clue. To be fair how else do you make money in this line of work? It’s nearly free for anyone to read about money management and know everything there is to know. So these businesses have to concoct products to sell.

[@velodjk2975]

I would ask out of the gate if he is a fiduciary.

[@davidgrant9132]

Right? This advice plans to be poor, never understood a plan that assumes using up your assets by death. Why not arrange tax free or tax advantaged income and leave the assets alone? What are the odds if you never sell your principal in the S&P 500 not in directly held real estate? Think rich, not poor, and you can do this at 55 w 2 million. If you line frugally, maybe even less. Nothing I this video explains how this could be accomplished. Just fear of loss and a pitch to buy an insurance product.

[@johngalt2340]

@@velodjk2975 It's a good question. I'd rephrase it to "is he only a fiduciary or a fee only fiduciary". A lot of these "Advisors" can legally claim to be a fiduciary, but wear multiple hats. They just simply take off the fiduciary hat and put on their insurance salesman hat on and its disclosed in the many documents you sign.

[@philipbuckley759]

I never understood this question.....I retired with two life time incomes.....and if it is not enough, to be in the USA....I am sure there is someplace, in the world, where it will suffice....

[@FFE-js2zp]

1.4 million will last at least 5-7 years for most people, assuming its 100% liquid cash. If you want to travel or buy luxury items, or if you do not own a house outright, then it might not last even that long. If your house is pretty nice, then you'll pay that 1.4M just to property taxes and maintainance. Since T-Bill / Note rates are basically 0%, just divide your cash pile by the years you need it to last and the annual income you want to take out. Put it in a US Treasury COI account so you are not lending it to a stupid bank or giving it away to some other high risk financial corporation.

[@farshimelt]

As if you can know how many years you'll live. What kind of plastic ball are you gazing into?

[@FFE-js2zp]

@@farshimelt Thats your decision, not mine. I have woken up every day of my life just like the Sun rises, so I do not believe in death.

[@DRM-nb1fg]

Only 5-7 years for $1.4 million of cash? That type of cash would last me at least 20 years, maybe 30+ years.

[@FFE-js2zp]

@@DRM-nb1fg If you have no expenses and no taxes.

[@sred5856]

Just curious. Do you think the stock market is not the place to invest. Because if the market is doing horrible, then we are all messed up anyways!

[@maritoreyes6392]

I know plenty of people who’s never saved for retirement and just live off social security, and there doing just fine. You make things so complicated and not everyone retires a millionaire 🙄🙄

[@nolanrizzo3812]

😂😂😂😂Guess he trying to make the whole world a millionaire 🙄 and he's doing, a great job at putting fear in these jerk on KZbin!

[@OakHarvestFinancialGroup]

Hi Marito, thanks for watching and sharing your perspective! You're right, everyone has unique circumstances and in our videos, we try to show what might be possible for just one of many different situations that could be out there. Even then - there are still so many nuances and we always recommend booking time with a financial advisor to find the most effective route to the retirement you're looking to have. If you ever find yourself wondering, you can book a free consultation at this link here - click2retire.com/58with1mill. Take care!

[@user-fr3hy9uh6y]

I think you need to update the medical numbers. A few years ago, on a party line vote, the age adjustment factor went from 3 to 5 making a silver plan in Florida $1,500,per person, a Month. To quantify for subsidies you have to live on a budget well below what I was willing to. This was the single factor that forced me to delay mine.

[@nielvanzyl2299]

Thanks, very informative. The video makes it clear that there are so many possible scenarios that it is impossible to make clear predictions. The answer is work as long as possible. “Life a little” was true in a non covid world, now this mean watch a bit more TV. What a terrible proposition!

[@OakHarvestFinancialGroup]

Hello Niel. Thanks for watching. Yep, investing is like life: there is no crystal ball. But there are tools that can help make more informed decisions.

[@jimh4167]

Depends in spending habits

[@miriamvianaesilva1118]

Tenho 54anos de idade e 4,5 milhões. I posso retirar? Depende de can ou May

[@gfysyoutube]

Me: I'm 58 years old with $1,400, I know I can't retire.

[@Maxumized]

Of course you can…just cook beans and rice and live in a van. You’re welcome

[@curtissharris8914]

be nice to your kids then

[@maritoreyes6392]

You can retire at 62 and get social security big deal you’ll survive

[@hagakuru]

The fact that he has to withdrawal $186k a year to just be equivalent to today's $60k is pretty alarming.

[@allbaugh04]

Man i wish inflation was 2%... Even considering increasing inflation i would bet on being safe to retire with 1.4mil, pretty easy decision. You're going to spend less in the late years, chances are your health will decline to the point where you aren't spending any money other than healthcare anyway. It's not like you're going to starve to death. People retire with far less and govt takes care of them.

[@curtissharris8914]

they move in with relatives , live in a trailer park.

[@88JohnnyB]

My lordy inflation is disgusting...

[@clarice4426]

Why does he think the market won't be as good in the next 10 years?

[@DaystarHiker]

What is that software?

[@az21bob666]

i find these intresting but in never see stuff for the fire moment, like say it was the same 1.4 million, a single guy but he 30, and is willing to live on 35k a year.

[@anonymoushuman8962]

I was 42 when I retired. I worked overseas for 20 years, straight out of university, for a multi national oil and gas company. My net worth was usd3.9 million at that point I was making good money with a slew of rental properties which I owned outright. I am now 49 and still retired. Now my net worth has even grown plus I have not had to work. I domt rely on anyone else and am able to live in a lovely house and folllow some of my other interests. My suggestions are, work as much as you can when you are young, don’t get married, don’t have children and get yourself educated in a STEM subject. Work in an industry like oil where the margins are massive. Sometimes I was gettting bonuses bigger than my salary. I flew business class everywhere and stayed in a beautful 3600ft2 condominiums. It was astonishing.

[@mucusofwanderhome6945]

Dude you missed all the great possible things over 1/2 of your life and now that time is all gone. Money isn’t everything

[@anonymoushuman8962]

@@mucusofwanderhome6945 It’s not everythibg button it’s close to it. It’s certainly better than being married with two kids. That sounds like a living nightmare to me if I’m honest. You essentially are signing a contract that is so far remove from reality I.e in so much favor towards the wife and kids you wil end up with nothibg whilst they live in your house that you have paid for plus paying alimony too. Marriage is a big risk in itself financially. That contract is set up against all men and is always for the woman and guess what, they know it too. That’s why you see so many down trodden middle aged men working every hour that’s available just to stay afloat whilst the ex wife is sitting in your house eating your food and using your energy Marriage is an insane institution and it certainly isn’t a good financial move.

[@secretagent86]

short answer: yes.

[@neo_prime6531]

Thank you

[@OakHarvestFinancialGroup]

Thanks for commenting.

[@andrenguyen9787]

Can't bring with you when you die, might as well retire early!

[@XYtotheZ]

Piss poor planning. Most of their net worth should have been in ROTH IRA and triple tax free munis by now. They need to live in a no tax state, keep spending low and live off the tax free interest only, not draw down any principal. If they can’t do that then they are retiring too early. They need to start a business if possible, convert everyday expenses into business expenses and work until 65. Don’t take SS early. They is no way they are going to make it into their 90’s with their current portfolio and amount of taxation that is going to occur. As I said it was piss poor planning on their part.

[@guycapilli546]

Annuities have the highest cost to the client. No wonder why he is waving the flag for annuities. Just follow the money!!!

[@TheGregWallace]

you have no clue what you are talking about after watch this one video.

[@MattB787]

Do all of you early retirees have taxable investments? I'm wondering how you all retire early without any early withdraw penalty. Sure, I have enough to retire in my Roth and employer 401k, but with those, I'm limited at 6k per year withdraw with no penalty - anymore and I'm taxed and/or penalized.

[@dirtyharry2534]

You can set up a Roth IRA conversion ladder. Essentially, convert some 401k money into your Roth IRA, pay the taxes now, and in 5 years you are allowed to withdraw that money from the Roth IRA without penalty.

[@ericlanning608]

Ask your advisor about 72(t) distributions.

[@chasjacks9378]

If you need to ask then you can't retire. You tell yourself when its time to retire.

[@alanwinquist5002]

Long term care expense...for two??

[@richpickard1680]

These financial planners are crazy they want you to give them all your money while you’re working so you do nothing and then when you retire you have tons of money but your life is habit-forming and if you do nothing when you’re working you usually do nothing when you’re retired so then you end up giving all that money to your kids and you know the old saying if your kids need it they don’t deserve it the kids don’t need it usually are successful on their own merit because you raised them right

[@SurpriseMeJT]

Longest run-on sentence.... ever.

[@farshimelt]

You can raise them as right as you like and they will do as they see fit and they should. They are not here to live your life.

[@mccoyji]

A way to avoid the medical costs. Eat only once a week until you skinny. Then maintain.

[@SanePerson1]

Health care: that’s the big one. Because Americans put up with world’s most expensive health care system. BY FAR.

[@tchen8124]

Also, the most advanced, by far

[@SanePerson1]

@@tchen8124 What does “advanced” mean. By most metrics, American health care performance is mediocre.

[@tchen8124]

@@SanePerson1 technology

[@Brutushungwell]

What if you’re a VA patient? No medical cost

[@j4ever41]

@@gregh7457 lol, that could be true, i am a vet and get all my care from the private sector, when i was in the military and got injured those f n clowns screwed me up.

[@bretcampos9048]

He lost me when he pitched annuities. Term life insurance is the way to go.

[@OakHarvestFinancialGroup]

Term insurance and annuities are two different products for two different purposes. Buying a term life policy after the age of 60 is typically incredibly expensive and does nothing to protect against running out of money. Term insurance is designed for young people. Fixed annuities and indexed annuities on the other hand often have no annual costs and are designed specifically for those over the age of 60 that want moderate growth, safety of principal and options for guaranteed income to mitigate longevity risk. From my experience, most of the general public is woefully educated on annuity products in general, especially today's designs. Keep watching to learn more, we'll be doing a series on annuities soon.

[@johnd4348]

Annuity is not the same as term life insurance. Annuities pays you monthly while your alive. Term life only pays someone else if your dead. Unless you plan to take out a bunch of term life policies on other people then wait till they die.

[@tumbleweed4185]

@@OakHarvestFinancialGroup What is your personal annual income from annuity sales commissions??? You thieves make me sick.

[@CharlesAPetitjean]

@@tumbleweed4185 yeah, I work at a fee-only RIA. Have never jived with annuities. They’re generally quite illiquid, subject to surrender charges, usually provide a huge kickback to agent, generally have high internal expenses (1-3% ish) and the whole appeal of guaranteed income isn’t all that poignant if you’re working with a competent professional who knows how to properly pull money from your different investment buckets in a tax efficient manner.

[@raybassman5992]

I am 61 y o with -$15,000 can I retire?

[@malaybasu961]

There are so many things wrong in this analysis.

[@jeffreyhigel1818]

Why couldn't you is my question.

[@frankthetank5013]

My head hurts! 🤦🏻‍♂️

[@CT-gj1ou]

I would hope so, unless you are one of those people who lives beyond their means. 1.4 millions, over achiever. I’ll be lucky to have $200,000 by the time I retired.

[@dking1362]

Not really....if you live on $30k per year after retirement, your $200 will last you just over 7 years! Then what?

[@dbloyd2]

I can't retire as rent is just too high. Got to keep grinding.

[@keanemclaughlin8182]

You lost me at differed income annuities

[@marcsherman4862]

Yup. The old annuities stuff. On target comment.

[@robertjohnson4401]

He gets a big commission on selling annuities.

[@terencefield3204]

Never mind thicko. Keep waiting tables.

[@ariefraiser140]

Same.