Retire With 5 Million Dollars: Here’s What It Actually Looks Like

[@ThreeOaksWealth]

How Much Do You Need Saved to Comfortably Retire? Click Here to Take Our Free Two Minute Assessment! threeoakswealth.typeform.com/retirementneeds

[@EmilyEvelyn-90]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

[@Dantursi1]

Most people don’t realise it, but the secret to retiring comfortably is finding a way to make returns while your money works for you. My dad, as I remember, started saving for retirement quite late, but I know he was making more than 10k returns from his investment monthly and it was completely passive.

[@derrickholfman2]

This is really amazing though. I'm curious as to how he did it. Was it real estate? Or he was a market enthusiast?

[@Brucelanham845]

Unfortunately, not all of us were financially literate early, I was 35 when I finally educated myself and started taking steps. I went from $176,000 in debt with zero savings or retirement to now, 2 years later, fully debt-free and over $1000,000 net worth. I know that doesn't SOUND like a lot, but l'm incredibly proud of it. Now I'm fast-tracking my wealth building (investing $400,000 annually) and don't owe a dime to anyone. It's a good feeling! Thanks Wendy Stewart.

[@MrTavis1]

@@Brucelanham845 Ok, Bruce! 😂

[@ttenner9179]

The 4 percent rule works. Just include taxes in your withdrawals. He says it does not work only to get new clients because he has this magic software. Once you hire an “adviser” you can still withdraw 4 percent - 3 for yourself and 1 for the adviser. An adviser will “help” you withdraw more, but the increased risk is on you. He gets his percent of your portfolio no matter what.

[@mandolorian25]

for a $5,000,000 dollar portfolio you'll pay him minimum $50,000 per year for his magic software. They usually charge 1%/year for total assets under management. So 2 1/2 months of these expenses

[@stephentrier5569]

Or hire a fee-only financial planner for only the work you need done. They will have a price list for different kinds of jobs or charge by the hour. it's a good alternative to planners who charge a percentage of assets or who make their money off of commissions.

[@chriscrawford1555]

This is right on. The clever thing is they never include their advisory fees as a dollar amount in your retirement budget because if they did, advisory fees would be more than your taxes and healthcare combined.

[@jameschaves5723]

@@chriscrawford1555your absolutely correct. I’ve never seen their fees included in calculations

[@timmyg000420]

And he can't afford an office lol ​@mandolorian25

[@gazinger]

The comments under this video are also very helpful and meaningful. I have read every single one of them.

[@BakoSooner]

20K monthly expenses? This video is for 1% of the population. Something missed by lot of these videos is the spending fluctuations. Expenses tend to be higher at early stage of retirement due to travels. Then people settle down (sick of airports?) and just live their normal lives. Then comes the medical related expenses as one becomes a food processor.

[@charles3106]

Can you do one with 50million of assets? I really want to feel badly about myself more than I already do. Thanks for the help.

[@gregfisher545]

lol. Dont feel bad; just start small and do what you can. Consider retirement savings a must vs. discretionary

[@reesesha2289]

Right plus a 10 million dollar house🤣🤣

[@墨紫月]

Yes, that will make me feel so inferior 😂

[@MrOsasco]

​@gregfisher545 his office is worth five million cents.

[@winstonwolfe2537]

And throw in 5000/month social security and a 4000/month company pension.

[@dwight_klaus2981]

Joe and Mary have a spending problem. $20K per month? Are they living at the Ritz Carlton? With a little fiscal restraint they can live a comfortable life for much less.

[@mikeflair6800]

Net 4%. Plan on withdrawing 5, and subtract 1 for tax planning.

[@Daniel-b1s3s]

Retirement is becoming increasingly challenging for many people. Low wages, inflation, and high rent costs make it difficult to save, and now, even middle-class Americans are struggling to buy homes-leaving them with fewer retirement options.

[@CarddtReddt]

The rising costs have disrupted my plan to retire at 62, work part-time, and save for the future. I can't help but wonder if those who went through the 2008 financial crisis had an easier time than I’m facing now. The combination of stock market volatility and decreased income is causing me concern about whether I’ll have enough saved for a comfortable retirement.

[@IsabellaJane-r4w]

This is exactly why I value the expertise of a portfolio coach in guiding my daily market decisions. Their extensive knowledge in simultaneously managing long and short positions, leveraging risk for asymmetrical upside, and employing strategic hedging to mitigate downturns significantly enhances performance potential. With their skillset, underperformance is highly unlikely. Having worked with a portfolio coach for over two years, I have realized gains exceeding $800,000.

[@adamtki]

Sounds like my situation. I’m 55 with 5.5m net worth (house not included). When I do retire, I’m aiming for the 5-4-3% approach. I want to enjoy the money early in my retirement. My kids will get anything remaining.

[@MrTavis1]

Retire now!

[@petecheng1]

5-4-3%?

[@adamtki]

@ I start out withdrawing 5% then move down to 4% in my mid retirement years and hopefully will only need 3% when I’m really really old

[@petecheng1]

@@adamtki okay got it, that's good plan, when did you retire? what is your monthly spend now?

[@adamtki]

@@petecheng1 I’m planning to retire by 2026. Monthly expenses now is 14k a month. I’ll probably spend the same amount in retirement. Aim is to save enough to build a custom house when I retire.

[@johnkeith1964]

Who spends $20K a month you ask. We spend 15K after taxes that we get from our pensions. We rent and spend it on normal stuff plus 6 months of snowbird travel while we let our $2million nest egg grow at 8%.

[@BigRed2]

Yah too many think we are all poor, Wife and I bring home $13k and have just over $1Million invested for Retirement plus my military retirement (medical) is $7k tax free a month for rest of life and we are 40 and plan to want to spend $20k a month at 55 when wife retires, of course we could live on less but want to retire having fun

[@carlyndolphin]

I spend 20,000 per month travelling easily.

[@blackhawkteslatech]

@@carlyndolphin yep... we travel for 4 and go to a Disney Cruise in Europe and 20k after tax was pretty quick...

[@rarelycares8416]

Many people spend $20k/month...however no one "needs" $20k/month. It's a want. This profile he gave actually fits me very closely, I have a little more in 401k's and Roth's but less in taxable. I also have no mortgage. I need about $5-6k/month, but I like to spend an extra $100k a year for travel. If there is a big downturn I can easily remove that $100k from the budget for as long as necessary.

[@timlinator]

Retired at 57 with about $5.5 million net worth. Mix of IRA's and real estate.

[@lathminster]

I would like for you to consider go-go, slow-go, and no-go years. They will spend less as they age (mortgage gone, more homebodies), and they can spend more when they are younger, and still be safe.

[@johnkeith1964]

Agree. We have front loaded our spending on the go go years.

[@ThreeOaksWealth]

Good point. I've never met someone in their 90s who spends as much as they did in their 70s. It's inevitable for most people to taper their spending over time. It can also be a little dangerous to assume that in a retirement model though. Health care and other expenses can be wildly unpredictable.

[@davidfuith2995]

It's mandatory required DISTRIBUTIONS, not mandatory required EXPENDITURES. A little self-control might help.

[@johnhaller1]

FYI all - this video is actually "Retire with $6.25mill"... 2 mins in he says that he didn't include $1.25mill of home equity and savings in the $5mill for some reason.

[@Random-ld6wg]

interesting to see an analysis of 5M as i retired around that networth but at 55. fortunately my monthly expenses are nowhere near that and the portfolio has grown since retiring. when they say 20K month, they mean spending 20K/month. taxes are not included there for sure. roth conversions certainly are needed given the large tax deferred bucket. not ideal but given the amount of spending needed, i think they have to pay the conversion taxes out of the trad 401K rather than using the taxable bucket. in order to reduce the 401K balance further before RMDs. i think they should start tapping into the 401K to fill the first 2 brackets for spending and topping it off with their taxable brokerage at ltcgs rates and then do conversions but this means the conversions will be at 22 and 24% brackets assuming current tax rates. their expensive house could be tapped for any shortfall by relocating or downsizing or a reverse mortgage.

[@ThreeOaksWealth]

Yep, lots of ways to draw it up. Taxable accounts can be useful thanks to qualified dividend and long term capital gains rates. That's not always the case though, since some people have taxable investments with very large unrealized gains we're reluctant to cash out.

[@Random-ld6wg]

@@ThreeOaksWealth but you only need to liquidate what you need. in this case they'll get 18.8% rate on the LTCGS and of course principal doesn't get taxed. even for a 5 bagger(80% gains) they will pay about 15% of whatever they withdraw.

[@larryjones9773]

@@Random-ld6wg Those with very large unrealized gains may want to leave those to heirs, in order for the heirs to get the 0% tax rate.

[@Random-ld6wg]

@@larryjones9773 leave what you want for your heirs, preferably in a roth for the extra 10 yrs growth, but if you saved for your retirement then be happy you have investments with a lot of capital gains. i see a lot of people make comments as if they are almost scared of investments with a lot of gains. with a 10 bagger, a good return, liquidating $100,000 of the investment at 15%( assuming below MAGI of 250K) results in a tax of $13,500 for the 90K in capital gains and non on the principal. so 13.5% on the 100K liquidation.

[@surfnbacker84]

If they wanna spend $20k a month, they should probably work a few more years.

[@richardbarry2140]

What analyses such as this one always miss is that they do not assess the meaningfulness of the spending habits of people. Here are some examples of choices. 1. Take the grandkids to Disneyland vs. taking them on a week of camping, 2. five-star restaurant vs. local ethnic restaurant, 3. A luxury car vs. a reliable car. 4. Down-hill skiing in Aspen vs. local hike. The first of each choice is the commercially sanctioned choice pushed by advertising and peer pressure and notably more expensive than the second choice, even though the second choices are the most fulfilling for memories, experiences, and self-improvement. With an expenditure of 20k a month, many of the couple's choices must fall into the first, and not the second category, so they can greatly improve their life fulfillment in retirement and spend much less, too, by assessing the spending side of the equation.

[@ThreeOaksWealth]

Definitely. I'd argue that the goal we should all have is to extract maximum meaning from what you have, or "get the most juice from the fruit." There are tons of opportunities to do this of course. It just depends on what juice you care about and what you don't. For one person Disneyland may be important but five star cuisine isn't. The exercise is to identify what matters to you and optimize toward those values.

[@lordabhikingfisher8087]

When rich folks spend their money, we all win. Let's hope that folks who have resources don't pass it to the next generation and spend it all, on themself quickly. Read about 'velocity of money'. Then you will know why I am saying what I am saying.,

[@teresaalbin-davis4529]

It's about the experiences

[@brianG81]

Anyone who is going to wait till they get 5 mill to retire are not going to spend 20K per month period

[@tt095]

sounds like a lot of work to spend that much, have to make up stuff you need.

[@stonedog1000]

@@tt095 Home, auto and health insurance alone can run 3000/mo

[@Faben202]

Good exercise. This would roughly be where my wife and I would end up if we decided to keep working until age 65, but we're currently shooting for retirement at age 57.

[@bukki07]

I’m 32 years old and I am just starting to invest for the first time in my life. I have started contributing to my 401K and opened a Roth IRA with automatic contributions. My question is, does asset allocation even matter early on, or am I just overthinking this?

[@J.woltz48]

There’s a lot to decide on… How much do you want to carry in international, small value, bonds, etc. Most times it is better to just delegate your day-to-day investing to someone of great expertise

[@justlikekingsolomon]

Couldn't agree more, investing with the help of a financial advisor set me up for life, retired as a millionaire at 55. I worked hard everyday as a teacher for 32 years, and my salary was over 100k annually. But if it wasn't for the covid-19 lockdown, I wouldn't have supplemented my income with stocks and alternative investments.

[@garrickhunter-o4e]

@@justlikekingsolomon good gains! who is this professional that guides you please? enthused about investing for my eventual retirement but dont know how to go about it, for now I only invest in my 401k through my employer and gains are quite slow

[@justlikekingsolomon]

Can't divulge much, I delegate my excesses to someone of great expertise ''Katherine Nance Dietz' preferably you can look her up on the web, her qualifications speak for itself.

[@evelynlukmon]

such an eye-opener! curiously inputted Katherine Nance Dietz on the web and at once spotted her consulting page, she seems highly professional from her resumé

[@daviddavis6876]

Speaker needs to purchase a dress shirt that is form fitting..

[@Raniyanhunter]

I have an Investment portfolio that's worth over $800k, I don't think that'll be enough for retirement. I need an average risk investment strategy in stocks that'll give me more yield. Is buying stocks now a goods idea?

[@garnold-l5p]

As they say, time IN the market is better than trying to time the market. I think you should seek advice from a licensed financial advisor. They’ll give you guide on high risk and low risk investment strategies for your portfolio

[@Anessa-gibson]

I've been looking to get one, but have been kind of relaxed about it. Could you recommend your advis0r? I'll be happy to use some help.

[@jameschaves5723]

$20K isn’t much if your traveling first class

[@dontfighttheriptide4091]

The shame of this scenario is the 401K… withdrawals will keep them in ordinary tax bracket perpetually and lose the low end opportunity of the L/T cap gains treatment 0% and 15% are eaten up by the ordinary tax rates. Have a capital reserve, get out of the ordinary income trap, get better returns with a long-term time preference of investments and MUCH lower taxes!!

[@user-gl9iz1bp1r]

Retired with a positive cash flow of $2-3K a month. Net worth YTD is up $380. Only debt (2.5%) is condo in Sun City, AZ. Middle class who control our spending. We do most of our home repairs (have tools and skills).

[@warrenrobinson1525]

Who’s got a 5 million dollar portfolio? 😢 I would feel better with a 2.5 percent withdrawal rate, that way as their nest egg will grow faster and their monthly allowance will increase over time as well. Advisors always want to tell clients what they want to hear, sure take 8 percent out says, Dave Ramsey. Why, because saying that will attract an larger viewership. It’s not wise to take a 9,999 lbs truck over an investment bridge rated at 10,000 lbs and expect a safe crossing every time. 😊

[@vinyl1Earthlink]

Some well-off retirees don't match the typical rich people profile. They have money because they've lived frugally all their life, spending $40K on living expenses, and saving the rest. People like this are not going to start spending a lot of money in their old age. They'll continue to live as they have been living, and spend very little from their $5 million.

[@BullseyePistol]

What program is this? It’s awesome.

[@JohnBowl14690]

"Retire with 5MM". A new style of weapon I guess.

[@elkcircle7245]

No mention of the fact they appear to have their entire portfolio invested in the stock market, which is not a good idea. They should have a percentage in the bond market. Pimco offers an excellent range of bond ETFs that pay a good yield. I’d fire their financial advisor. And, 20,000 monthly expenses with just 5 million looks like excessive spending for a portfolio of that size.

[@larryjones9773]

No guts, no glory.

[@PorscheSpeedster-kz6nc]

It’s a shame that the PreTax 401k is that high and the Roth is so small. There should have been actions in the decade prior to get that to Roth directly or through conversions. IRMAA and RMD’s are going to be big….

[@larryjones9773]

Yep, they're going to be in Tax Hell, the rest of their lives.

[@墨紫月]

May I know why you don’t recommend this couple taking more withdrawals out of 401 K in their 60s to reduce mandatory RMD amount ? I am in a similar situation.

[@ThreeOaksWealth]

That could be helpful, but depends as always on the circumstances. We tried to keep this video on the shorter side, so we avoided the granular facts that would make those types of withdrawals a good or bad idea. It may be a good idea for you. It may not be.

[@墨紫月]

@@ThreeOaksWealth thank you. Can the software used in the academy help answering specific questions such as the order in which accounts (cash, IRA, brokerage, social security) should be used to fund retirement and the most ideal time given clients age, tax liabilities , etc?

[@jeffstanger88]

Hold up… he only has a $3000 SS benefit and she has $0… And they have a $20,000/mo lifestyle. That is not a fact pattern suggestive of a portfolio this large. A $3000 SS benefit at 65 means income is probably around $75,000/year? This scenario doesn’t pass the sniff test.

[@JohnHines-w7k]

It is a realistic fact pattern because the max social security benefit at 67 tops out at around $3600 per month whether you made $125K per year or $1million + . In other words it maxes out at that relativeley low amount for everyone.

[@bluered3228]

I wish someone would give some advice for people without heirs. I want to leave nothing behind but I also dont want to run out of money.

[@cbdane]

I’d rather retire with 10mm. Closer to 3/8”.

[@BrianAlt]

If they're paying 2500 into their mortgage monthly, what the hell are they spending the 17,500 per month on??? Mortgage and taxes are generally the largest payments people have.

[@geronimorex3608]

Oh no, after years of savvy investing and accumulating $5m I’ve just learned from a vacuous KZbin video that I will have to make RMDs in my seventies.

[@JTBY007-iy1zu]

We didn't spend 20k/month even when we were in our peak earning years and still sending kids to college. I certainly don't begrudge anyone else spending their own money, but I can't think what I would want to do in retirement which costs that much. Golfing at Augusta National? Deep sea fishing for marlin? Private jets to Epstein Island? (I just threw that last one in for the sarcasm points!) I know that many actors, rock stars and pro athletes plow through that much in one day, but there is a difference between spending and simply burning through cash. I think this clip was meant for real people, not celebrities, even if those real people are only 1% of the population.

[@logicae4096]

$20k a month? Really who spends that much...

[@TheBeagle1956]

I do easily. We give about $10k/month to charities. We pay about the same in taxes for income and property taxes. Roth conversions are the majority of our income, with dividends, interest and social security. Medicare costs us about $2,000/month. We help out family when needed, including paying for the two homes our sons live in. We pay another $550/month for long term care insurance. We fund 529 college savings plans for three grandchildren and three nieces and nephews. No, we don’t live a luxurious lifestyle.

[@carlyndolphin]

I do in London easily

[@logicae4096]

@@carlyndolphin I used to live in London but didn't live the lavish lifestyle! You all are at a echelon above me.

[@carlyndolphin]

@@logicae4096 after tax I’m left with 12k. After rent I’m left with 9k. After bills and food I’m left with 7.5k. After car payments and running costs I’m left with 6k. After pension contributions I’m left with 4k. After paying my ex wife I’m left with 2k. I know there’s as easier way to write this! Money just goes

[@ThreeOaksWealth]

It's a lot of money, but not that uncommon. It's all relative too. Some people out there would struggle to keep their spending under $20k / mo.

[@Sh0nuff73]

20k a month in expenses😮

[@Zalen88]

He thinks social security will still be around after 2030?

[@Fatboylo1980-l7n]

This is comical. This is an example of probably less than 1% of retirees

[@dwight_klaus2981]

According to the Employee Benefit Research Institute, only 0.1% of retirees in the United States have more than $5 million saved for retirement. This is based on data from the Federal Reserve's Survey of Consumer Finances. 0.1% of 67 million retirees is 67000.

[@josephjuno9555]

Stupid ExampleS Far beyond most? Someone w $5,000,000 dosnt get advice from Utube

[@MarkPizzini]

This is an infomercial for the financial planner , he is simply using 20k per month to show how much head room they have.

[@dwight_klaus2981]

Hahaha... you would be surprised. I bet there are thousands of multi-millionaires that invest on their own using advice for every source they can find. They didn't become millionaires by paying others to do things they can do themselves. The financial advisor industry is a greedy pack of wolves.

[@Project-OriginalReiteratedHoly]

If you buy dividend paying stocks these guys won´t have to sell 4% of your investments so they can make their money.

[@MrOsasco]

Seriously?

[@princesskaitlinhazelwood4703]

This is not realistic. Most people who follow a 4% withdrawal rate and at least 500k in retirement savings. Even pretax. End up with more than 500k when they die. Seriously people do not need 5 million dollars or even a million on retirement.

[@tfletch9808]

91 percent of people can retire withdrawing 6.5%. Watch the market closely in the first couple year

[@mccoyji]

Why they got a mortgage?

[@ThreeOaksWealth]

Many people still have low interest mortgages - like 3.5% or less. If you can earn more than the rate you're paying on your mortgage (after taxes) it can make sense to make the minimum payments instead of paying it off quicker.

[@PeterMurray-m3r]

If they are sitting on a 3% mortgage from a few years ago, is it possible that investing the mortgage principal in treasuries at 4.6% and pocketing the difference?

[@jimmatteo4592]

20k a month in expenses, still have a mortgage and have a net worth of $5 million, who's your financial advisor? The person needs to be fired immediately. How should been paid off a decade ago and get a grip on your monthly living expenses.

[@gregfisher545]

You have it all wrong. House should not be paid off. It’s a tax deduction at a low rate. $5 million , mostly in tax deferred. If you understand the portfolio you would understand why this is a good balance.

[@danlopez.3592]

Why would you ever pay an asset off when paying such a low rate? You are just throwing away money.

[@johnkeith1964]

Agree. Why pay off a tax deduction when you can make 8% in the stock market rather than 3% in paying off the mortgage creating a 5% extra return vs paying off mortgage.

[@BigRed2]

Stay poor buddy 😂

[@kbmblizz1940]

Billionaires like Musk live on collateralized loans from their assets. It's the loan to net worth ratio.

[@avengemybreath3084]

Let’s revisit after the stock market drops 60%.

[@MichaelBoelton]

you're a donut.

[@larryjones9773]

The chance of a full recovery after a stock market crash is always 100%. My portfolio is 100% stock index funds & 0% bonds. I'm 63 and retired.

[@avengemybreath3084]

@@larryjones9773 100% and always. Love the absolute certainty. But you’ll probably do fine.

[@stephensangalli]

Utter folly. Who the hell needs to spend $20,000.00 per month. This sounds like a recipe for unhappiness. As you grow older you should be reducing your fatuous wants and realize you need less for inner peace. Simplify, simplify! 😂

[@granitemannh]

The title of this video is obnoxious. $5 million puts you in the top 1.5 to 2.0 percent of wealth among US households. Grant acts like this is normal. Far from it. Give advice to mainstream America!

[@dc2778]

Wealth is relative…a video like this is perfect for me and I’m 51…have just as much if not more financial anxiety in some ways now then before, which as I said is relative, as compared to actually wealthy people I’m quite poor. With all of that said, I do hear where you are coming from.