RETIREMENT EXPERT: The 3-Point Checklist You MUST Have Before Retiring Comfortably

[@saskysilverman1459]

I Am Retiring At 63, Because You Don't Know What My Be Around The Corner. I Have Missed So Much As Work Took Hold Of My Life And Family Took A Backseat. For However Long I Have Left I Want To Enjoy It. I Love Your Video As It Offers So Much Content, Thank You

[@csick11]

How much do you have saved up for retirement?

[@Iffy50]

It's so tough to spend a nest egg because you never know what the costs of medical problems are going to be. I would love to live well and die in my sleep, but unfortunately that's rare. This is a great channel with high level data and strategies. Great video!

[@dstevens518]

Agree that hoarding money in retirement isn't just about getting out of the mindset of saving and into spending, it's also about balancing today's needs/wants with tomorrow's concerns. But hey, we all need something to work on in retirement, right? lol

[@hogroamer260]

Medicare has maximum out if pocket costs. Other than long term care, what's the concern? Here's another reason to delay Social Security. With a bigger monthly check, the reliance on a nest egg is diminished.

[@aolvaar8792]

@@hogroamer260 ????????? There is no maximum out-of-pocket on Medicare. >>This means that there is no limit to the amount you can pay in medical bills. You CAN contribute 20% of any number of costs after meeting the deductible. With Medicare Part A, there is no out-of-pocket maximum.😱

[@AK_AF_LB]

Tell me you are an American without telling me you are an American?

[@randolphh8005]

@@aolvaar8792a poor argument. With Medicare A and B, and then a supplemental policy there IS a max out of pocket. Now with the new rules on Part D plans, even the max drug costs are limited. Medicare Advantage is also ultimately capped, although more variable and difficult to navigate. The ONLY unknown is Long Term Care. Even that is relatively easy and affordable to hedge against. Running out of health and life is the major risk for over 90% of people, before running out of money.

[@nevrock1]

I retire 2/19/25. I’ll be 57. You helped make that happen Erin. Thanks!!!

[@johngrubb5486]

That is awesome!! I retire next year, age 64. I agree the information is excellent!!

[@ErinTalksMoney]

That makes me so happy to hear!!!

[@nelsonvermilyer8941]

Congratulations 😂

[@JerryTobinUSMC]

I love your videos!!! Some of the most useful information I have come across that is hard to find all in one place. This is one of my go to channels each week. Love it!!!

[@pchygrl17]

Loving this social security series! Much needed info, thank you

[@cchannel66]

Being a single mom who has grown-up children, I downsized 2 years ago. It saves a lot of money, I used some of it for traveling instead of waiting until I retire. However, I still have a good saving plan for retirement. Love this video 😊

[@ErinTalksMoney]

Thanks for sharing!!

[@MatthewAidan4ns]

Investments are the roots of financial security; the deeper they grow, the stronger your future will be."

[@JamesOliverr7s]

The deeper your investment roots, the stronger your financial security will be in the future.

[@SebastianNoah5e]

Exactly! With my adviser, I’ve cultivated deep investment roots, strengthening my financial security for the future.

[@JosephGodwill9h]

I would love an introduction to an adviser who can help me strengthen my financial roots.

[@SebastianNoah5e]

My CFA Julianne Iwersen Niemann a renowned figure in her line of work. I recommend researching her credentials further.

[@JosephGodwill9h]

Thank you for this amazing tip. I just looked the name up and wrote her

[@brucef1299]

Mercy....82. She must live to work vs. work to live. Checklist is on point. Discussing these topics with an expert back in June 2024 illuminated these potential retirement potholes and a plan was put in place for retirement in Q4 2025. General comment from me is the more you've saved, the greater the flexibility you give yourself in your checklist options. Still not sure how I will mentally adjust from saver to spender, but that's on me to work through.

[@summitsusie]

The mental adjustment from saver to spender is soooooo real. Working through that myself. It is not easy.

[@nikij.6058]

My home is very special to me and my family. It’s a modest 1560 sq ft brick one story ranch built in the 50s on five acres. I’ve lived here for 27 years and love what it provides me. Peace, solitude, closeness to nature. It’s also at the end of the road and close to town. The thought of not living here is not right. To give up on all of this once it’s free and clear and mine? No thanks! The original and previous owners that built this house lived here until their LATE 90s. I plan to do the same- if I’m lucky to live that long! I do understand there are a lot of folks that don’t have a special home like this so it’s easier to let it go and take the equity as part of their retirement income. This just isn’t my situation. 😊

[@johngrubb5486]

You are in an awesome position!! Sounds like it best to keep your home!! There are still ways to make money from your property!! Maybe rent one small space and rent one stall for a traitor a boat...$150 bucks, or if you have some extra income, build an out garage with an apartment above or to the side!

[@gregorygerbrandt6812]

Love the bloopers, Erin! And, of course, your great content and insights😊

[@ErinTalksMoney]

Yay, thank you!

[@jdgolf499]

One of the best video's you've done. I don't think people really look at some of these things ahead of time. The biggest mistake I made ahead of retirement was not getting into the roth 401k at work, at the right time. When the kids were in college, I was getting tax credits and deductions, which means in the end, I had an effective tax rate of 5 - 8%. That's when I should have been in the roth. In retirement, I am definately paying a higher tax rate than what I saved with the traditional 401k. Second point is, while all the information provided is excellent, the number 1 planning tool BEFORE retirement, is to track every pennybyou spend for at minimum, two years before retiring. Knowing how much you spend makes all the other decisions so much easier!

[@shawnbrennan7526]

We made a few “tighten our belt” budget changes when I retired earlier than planned. Some of those moves we should have made years earlier.

[@summitsusie]

Me too. What is done is done. For me, aside from taxes is how it impacts your medicare costs if you go with traditional medicare. #IRMMA

[@dorinatudisco1308]

I think it’s a great checklist! My husband and I live in San Francisco and rent. I will be semi retiring from a higher paying job next year. We will be moving back to the Midwest and will live in our paid off two bedroom condo which is currently being rented out. Before we do, we will update the bathroom and kitchen and live very inexpensively in a nice area near my family and friends. I am planning to pick up another job and work for another year or two before fully retiring. 😊

[@googtv1]

Your videos are so very helpful. Thanks Erin.

[@ErinTalksMoney]

Glad you like them!

[@nelsonvermilyer8941]

I find your videos to be very informative and helpful. Thanks and please keep it up.

[@zeldyrrolorin9962]

When you mentioned downsizing and reflection I was reminded of a video topic suggestion for you. This might be niche but I have a visceral negative reaction to the idea of selling a nice house, moving into a condo, and giving up all that freedom. My reflection points me towards more land, serious gardens, maybe a few animals. "That's so much work!" I hear you say. But that's the point. It's the opposite of have a cup of coffee and do a daily suduko puzzle kind of dreaming. So maybe a video on non-traditional housing choices in retirement and how to accomplish them responsibly? Say your job required you to live in a particular location and retirement allows you to move. Not to the traditional retirement community but to somewhere and something you find exciting. It might not be cheaper. It in fact could be more expensive. Instead of dreaming about extensive and expensive travel what if the dreams are of something more permanent?

[@davidstephens6458]

I'm not giving up my little slice of heaven and my horses. I may have to live on rice and pinto beans but my horses stay. I would die early if I had to move to a condo. So I understand you.

[@wmb9419]

Yeah, I had the same sort of reaction to the downsizing idea. I have been looking lately, and don't get me wrong, I would love to have single level living, but the only way I see to get that is to either live in a condo complex very close to other people, which wouldn't work well for me, or to move further away from the city but then I give up the access to quality medical care that I benefit from now. Truly my biggest concern is taxes. I am starting to look closer at Hanover, NH. It puts me close to a quality medical care and I can avoid state income taxes. Combine that with municipal bonds, I can reduce my federal rate as well. I have calculated the property taxes up there, but that will still be better then paying my current rates.

[@steveshow-tos5394]

If I won the lottery, I’d build a 55+ community with interesting, well built, modest/smaller sized houses. There would be four arms of the community: (1) mid-century modern style (think Palm Springs) with a tiki bar at the end of the arm; (2) a Victorian arm with wrap around porches and a haunted mansion style restaurant/bar at the end; (3) Spanish style housing (think Santa Fe) with a great Mexican food restaurant/bar at the end; & (4) an outdoorsy log cabin arm with a Yellowstone lodge type restaurant/bar at the end. Id include community garden areas and a cool rec center with all the good stuff from typical 55+ master built communities. It wouldn’t be super huge and sprawling. Maybe 20-30 houses in each design style. But all really well built and interesting.

[@jerrym3261]

What I would like to have is not legal here. I would much like to have a tiny house. That's illegal on its own. I would like to live in a community of tiny house people, kind of like a condo situation where there's one parcel of land and owners buy a share and have their space and there's community space. Buyers or heirs would have to be approved by a vote of the owners. I'm sure there would be legal issues with that. I don't know about other places but here, church properties come up for sale often. The small churches own land because they pay no property tax. People choose mega churches because they have amenities the small churches can't compete with so, the small churches are closing. So, we have a good size parcel of land, 2 or 3 acres is common, with at least one building, a parking lot and they're commonly in a residential area. They don't sell for much, businesses don't want them because of the way they're zoned and developers don't want them because the parcel isn't as favorable to subdivide as other parcels are. I see them come up for sale and I could buy them but, after that, I can't legally do the rest. I think my answer is going to be ex-pat, Ecuador. I can have a tiny house in Ecuador. There are a lot of advantages to living in Ecuador beyond having the freedom to live in whatever type of dwelling you want to live in.

[@laurae65]

@@davidstephens6458we love our horses too. They bring us joy and giving them the best life is part of our retirement plan.

[@LoriThantos]

Yay! Good advice and the return of the bloopers 🎉

[@gatordeen2528]

Erin, Another great video. Looking forward to your social security videos.

[@mikesmolinski6982]

I enjoy your videos. Planning on retiring at 60 next year and your channel reassures us that we are on the right track! All the best in the future!

[@ErinTalksMoney]

That is awesome! 👏

[@hamradioeconomystyle48]

That point about weather to pay off the house or not is important. When I was able to pay off my house some people told me not to because of the tax deduction I had. I ignored them. I paied off the house. Then set up an account where I automatically transfered the same amount my monthly payment were from my checking account to that new savings accout. It grew quite fast and I didn't miss the tax write-off at all.

[@k5sss]

It all depends on what your mortgage rate is; if it’s 2-3%, there’s a strong argument to keep it and invest the money instead. It wasn’t a big win on paper in my case, but I sleep much better at night, and that’s worth something too. Also, my fixed bills are lower now, which means I could shrink my emergency fund and invest even more.

[@dstevens518]

Excellent video as usual, thanks Erin. "Save more, cut back more, or just delay retirement." Well, another retirement expert, Dr. Teresa Ghilarducci, has studied retirement for decades, and she notes half the folks retired were done so involuntarily, earlier than they wanted to. So really, you only have control of two of those three variables. This suggests you should plan on getting "retired" earlier than you expect, and therefore save more NOW. Either you end up grateful you did cause you have enough if you get retired involuntarily, or you end up grateful cause you have the option to retire earlier on YOUR terms, or work longer and have a cushier retirement when you do decide to leave. Finally, as for your concern that retirees hoard money in retirement out of fear, if you've saved LOTS, then that fear should be easier to get over.

[@hogroamer260]

Good subject and excellent commentary. I'm hoping to leave a legacy so I love that I'm not tortured with the concern that I'm not spending enough. I give generously to family and church, do Roth conversions and am maintaining my nest egg until I begin Social Security in three to five years. Everyone has different goals. I hope they are enjoying charting their course as much as I have.

[@recoveredconservative]

Love the outtakes 🙂

[@nhsamurai8733]

absolutely love your videos!!! can't wait for the SSN content!😊

[@joethecomputerguy1]

I think retiring at 52 is a better choice. Many will not live to 82. Love the 11:37 mark

[@k5sss]

Most people can’t afford to retire at 52, so that’s moot.

[@williamfrench3796]

Check list is on target along with your addition about having a transition plan that gives you purpose and fulfillment in retirement. I would think that you may also want to: 1) Remain physically active, 2) Make sure you have properly designated your beneficiaries on your accounts, and 3) Be sure to have updated estate planning documents. All good Erin-keep up the good work!

[@andrewjones1119]

Really enjoy your excellent articles

[@ErinTalksMoney]

Glad you like them!

[@stevenobrien595]

This was excellent Erin thanks!

[@ErinTalksMoney]

Thank you!!

[@brycegardner6171]

In California, downsizing would likely significantly raise property taxes so requires some extra considerations.

[@johngrubb5486]

That makes total sense, however, isn't there a new law that allows you to build an extra building on your property. You own the property, so the nex building would cost less, and possibly be another income. Just thinking out loud!!

[@chuck_in_socal]

The government doesn’t want me to down size. That’s very clear.

[@brycegardner6171]

@ Yes, that is a good point and would provide a way to downsize. But given our lot size it might be a big downsize.

[@johngrubb5486]

@@brycegardner6171 I totally understand. Be well my friend!!

[@stevegrantham1711]

Always love your content and presentation. Very organized!

[@ErinTalksMoney]

Thank you so much!

[@ronbrock2871]

Erin, Thank you so much for your channel. I am 64 and will be forced into retirement at age 65 (Airline Pilot). I cannot express how helpful and reassuring your video's are to me and my wife. They have solidified many of our thoughts and actions we have taken in preparation for my retirement. Also, they have pointed out a few areas in which we could use some professional advice. Where we have an issue is WHO to get this advice from? Tax Lawyer for retirement tax implementation or should we look at paying an hourly rate for a CFP?

[@michaelfortney7510]

Great information as usual. I like easy common sense advice. I don't want a course written like I have a Phd from MIT while working on another Phd in economics from Harvard just to retire. You keep it simple , honest and just right.

[@ErinTalksMoney]

Thank you so much! 😊

[@miked5357]

Great video! Hindsight is always 20/20. Nobody is perfect, and everyone will make mistakes. The goal is to minimize those mistakes as you get older!!!😂😂😂

[@papashuk26]

Great tips as always. The elephant in the room is the stability of our SS as it stands today and a projected reduction in the next 10 years. We have to be prepared to fill that gap with our own money and waiting to claim is not the sound advice it was previously with a projected 15%-25% reduction. The decision is now more complex than just a straight 8% annual return delaying.

[@Rayjack-m9o]

If Congress passes the So-called Fairness Act increasing the Social Security benefits for those who have contributed for less than 30years insolvency will only get worse . Our leaders need to fix it not make matters worse for political gain.

[@jimb1073]

So much great information in this video thanks Erin

[@RJN82]

Learning more about retirement after retiring can be a full-time occupation. I regularly watch about four KZbin retirement related channels and I just subscribed to yours as your topics are always relevant to my situation and I've found your videos to be well researched and presented. Thanks!

[@ErinTalksMoney]

Thank you so much!

[@papster33]

Great video as always! Would love to see more information on strong decumulation strategies. I am very near that point. There is a lot of information out there about not taking out too much, or too little, but I am not finding great tools for how to find that balance. Specifically in my situation, I have a plan - but as I move forward there does not seem to be a good set of rules for how to monitor that and recognizing when you are risking having too little money (and making adjustments) or could be spending more now based on current balances vs what the original plan was. That would be helpful.

[@DavidKnicks]

Another awesome video!

[@tomblanar2592]

I retired almost 3 years ago and at 68 I'm fortunate enough to be able to maintain our lifestyle without SS. Since we're not sacrificing lifestyle now the thinking was to wait to claim SS until 70 to maximize income for later in life when we might need it for assisted living or skilled care. I view this approach as almost creating an annuity. Given the current talk about modifying/scaling back/eliminating SS I am beginning to wonder if I need to rethink this plan.

[@MrGrumpy1]

I think any changes to SS would have to "grandfather" those of us who are close to or are receiving SS. I think any changes would be for the youngsters. So I wouldn't worry. You can always start SS as soon as the change details are announced but before they take effect.

[@bryanwhitton1784]

@@MrGrumpy1 I think that you may find that no one making those decisions will really care about whether a person is receiving SS already or not. The guys at the top of DOGE are not voted on, have no need for SS and have no expressed capacity for compassion. They are talking about getting rid of $1.5T in the annual budget for the USA. If they removed EVERYTHING in the US budget other than SS and Medicare/Medicaid they could cut $1.5T. That isn't going to happen. So they are planning on cutting current recipient's SS or Medicare benefits in some fashion immediately. Be prepared as best you can. Perhaps just as importantly they say it will be possible for the cuts to be executed via executive order. Thus bypassing the House. The guardrails are falling apart.

[@laurenwhitaker17]

Would love to see a video on reverse mortgages: details, considerations, etc.

[@richardgannon8292]

Very nice Video. Also very true about making mistakes.

[@ejames6431]

Hi Erin - Good conversation. I just subscribed. I am retired. 60 years old on SSD. My wife is 57 still working as a VP at a bank. No debt, mortgage or children. We are trying to figure out 🤔 when is the perfect time for her to retire. We do not want to take SS for her until she is around 66 but would like her to retire around 59 years old. As of today we are worth around one million.

[@PB4Y2]

When magazines or websites quote statistics about how many people expect to lower there standard of living in retirement, I often wonder how that is calculated. Sometimes it is simply how much money they spend each year in which case downsizing (to a smaller, cheaper house) would be considered lowering you standard of living, while going into an expensive nursing home might calculate out as a rise in your standard of living. All depends on how it is calculated. Erin, enjoyed the video but I did notice that in the intro thumb-nail, I think the Socail in Social Security is mis-spelled.

[@russlavalle]

Hi Erin, Alicia Munnell sounds super sharp. Is there a book by her you'd recommend relating to this checklist? I see she's written on many subjects.

[@TravisFisher]

Retiring at 55, claiming Social Security at 62, but I'm hoping to leave an inheritance for my kids. I think not spending enough is a great problem to have since my kids & grandkids will directly benefit from it.

[@SaintCuthbertoftheCudgel]

Great video. Additional point to add is educate yourself. Don’t blindly trust wealth managers (accumulators).

[@H2R5GSXR]

We enjoyed life and retired at age 52. We are now age 74 and still enjoying life. Still spending less than we bring home, it has worked for us.

[@bikerTR]

Guardrail . I’ve been retired for a year going into my 64th year and feeling comfortable so far. But I really look at it like when I worked, sometimes have to squeeze wallet for the unexpected, at times the wallet gives you te green light. Regardless being debt free so so much helps and having paid for home is huge as a last resort financial rescue option for the unexpected. But as for now all is good and looking forward to 2025!!

[@trackguy4038]

Erin - Can you do a video on real estate? When those retiring, they often want to downsize to a place without steps and without a yard to take care of. I have a townhouse and would like to get to a condo or a one story place.

[@martinyeager7948]

I agree I wish I had paid more attention to Roth iRA or Roth 401K conversion earlier. That is a hard choice because of the uncertainty of tax rates. But, I am surprised at how high my taxes will be in later years once Required Minimum Distributions take place. Fortunately that surprise is because my initial saving and corresponding investment have done well. It is a nice problem to have.

[@davidstephens6458]

Its not just taxes that get you when the rmd kicks in, its the IRMAA on Medicare.

[@martinyeager7948]

It made sense for me to take Social Security at 68 when I stopped working. It reduce the drawdown on my investments which and allowed me to maintain the capital in my investment. Maybe waiting until I was 69 would have been better but I would have stated then for sure so that my wife could start taking spousal benefits at 50% of my benefit at my Full Retirement Age. But as you say having a plan and executing are required.

[@martinyeager7948]

I am happy staying in my home during retirement. However, even though it is paid for, I have lots of maintenance expenses (time and money). Roof, HVAC, interior paint, floors, yardwork, etc. that are cost that offset most of the capital gains on my house. To me it is a cost of a happy retirement and not an asset of retirement. Of course in time that may change.

[@lint2023]

I would love to hear more discussion on decumulation. Q: is there a tax advantage to convert a traditional IRA to a Roth if one wants to withdraw a large amount? Does a Roth conversion have the same tax brackets as normal income. If not, convert then withdraw without being pushed into a high tax bracket.

[@ErinTalksMoney]

I can certainly do more videos on decumulation!

[@lint2023]

@@ErinTalksMoney Thanks. I should have included the term strategies but maybe you understood this.

[@shawnbrennan7526]

“Does a Roth conversion have the same tax brackets as normal income?” Yes. (I’m not exactly sure what your first question meant, but I think the answer is no.)

[@christiansailor2880]

Thank you!!!!!

[@effwitt]

I was thinking about doing a Roth conversion over the next few years, but with the market so high right now I think I'll wait until we get that inevitable correction. For me, the conversion didn't seem beneficial before a correction and a subsequent recovery.

[@shawnbrennan7526]

If the market goes up 15% and then corrects 10%, you’ll regret that you waited. I’d run the numbers and do it over a few years. At least fill up whatever marginal tax rate you are already in. Even with Trump 2.0, we don’t really know what the rates will be for 2026+

[@ron9665]

7:50 We are doing this with my Wife's SS as it will most likely be 9 or more years before I retire. We already have a ROTH account for her and our intent is to put her reduced SS amount away for the next 9+ years at which time she will step up to Spousal Benefit Amount. By then her amount could be around $100k. This amount will be used in conjunction with my pension and our other retirement funds. It would be more per month if she waits a few more years, but if anything happens during that 9+ years, SS will not pay out to myself or our kids (both are adults). We don't expect to retire at Millionaire Acres, but hope that we are doing enough to continue with similar lifestyle.

[@NkeonyeSochima]

Thanks for the perfect update. Your videos have been great!! I am one of your viewers and have been watching your videos lately. I would like to invest but I still can't seem to find the right investment to commit to. How do I properly invest in the market and what strategies do I employ to make significant gains and stable cashflow?

[@solacemusic242]

Thanks Erin, always informative! The biggest thing I have done to relieve "retirement anxiety" is to keep a decent pre-retirement budget AND an estimated post-retirement budget (house paid off, more travel...). I know what I need to "keep the lights on" now and when I retire. Any extra is fun money. This has helped me visualize what retirement will be like with SS, taxes and so on. I am about 1 year out and right now I am trying to decide if I want to pay someone $1000 per month (using $1M in 401k and 1.25% fees as example) to store my retirement money. Even if they are "managing" it for me, is it worth the extra $1000 per month vs if I just put it all in an indexed fund(s)?

[@Iffy50]

What options are you considering for your $1 million? Where is it now?

[@davidstephens6458]

My answer would be no it is not worth it. Just decide what percentages you are comfortable with and invest it yourself in low/no cost indexed stock funds. I do 75% in total market index, 15% in total market bond fund and 10% in total market International indexed stock fund. I feel very comfortable with this and it has done very well this past year. I started 30 years ago with a well known investment company and I paid high fees for low returns. Didn't take but a couple of slow years for me to realize that wasn't the way to go. And it easy to invest yourself now without a stock broker adviser.

[@SpookyEng1]

B

[@solacemusic242]

@@davidstephens6458 that is the way I am leaning. Yes 30 years ago all the financial advisors were getting away with pretty high fees. They count on people being nervous and unsure so that they will put their money somewhere that they feel they don’t have to worry about it and with someone they can trust. fine, but as I said $1000 per month is a lot of money! Having experimented with a small brokerage account ($75k) with a few stocks in it for the last 20 years, I am almost wishing that my whole 401(k) had been in that! With that said what you mentioned above, with the relatively low cost index funds available now, you can count on a reasonable growth, and a reasonable risk and manage it yourself.

[@jnewby74]

@ErinTalksMoney Another great video, I love your channel! One thing I would love to see in your SS series would be age gap when the younger spouse is the higher earner. My wife is 9.5 years younger than me and she’s the higher earner. All the videos I see about SS just assume the older spouse is the higher earner. How does the analysis change when it’s the younger spouse?

[@petestandley2690]

I have found that the calculations typically show that the best plan (most net Soc Security dollars for the family over their lifetime) for your situation would be for the smaller earner to claim when they can on their own benefit (often as soon as one can at age 62 or depending on the numbers any other age like 65 might be optimal) and to let the higher earner delay until FRA or even 70 to claim, to maximize their benefit. When the higher earner starts claiming, look at the numbers and either stay with the lower earners' benefit or the reduced benefit of a spousal claim if that becomes larger. (50% of the spouse's benefit adjusted for when the other partner first claimed if they did so early for a reduced personal benefit.) This also should set up the couple to ensure that if the higher earner passes first, the spouse will get their benefit instead of their own reduced benefit. Of course, this also can depend on how much of a difference there is between the two income histories and your expected lifetimes. A family longevity history generally makes those differences even more pronounced than the nominal averages. The generic calculation can also flip depending on the sex of the two earners as well do to average expected remaining lifetimes.

[@jnewby74]

@ Great insights, thank you!

[@sherylhelmkamp6452]

Could you please do a video on how to choose a certified financial planner? I love your content, and I find it helpful, but we need professional help, and I distrust FP because they are always trying to sell you a product. Help! Thanks for all your fantastic content!!!

[@ErinTalksMoney]

kzbin.info/www/bejne/r6WXYYGFn9aXbbMsi=OC6a52g9kxHkDb4T kzbin.info/www/bejne/n5mkpKtsg72Ye9ksi=lzeu_jvIvBEW23a_

[@ErinTalksMoney]

Here are two videos I did on that subject, hopefully they can be helpful 😊

[@fredswartley9778]

I agree with you about downsizing. I don't know why retirees live in such big houses. Having a small home means less work and more money accessible. It makes sense to me.

[@aolvaar8792]

My 2000 sqft home cost $50K in 2011, That's why. now $500K

[@apineda27]

I like your explanation, although a person with those characteristics and that type of job is almost impossible not to do things in order to have a good retirement. They almost don't even need to be receiving a check because they have enough saved to live the remaining years. It's better to use an example of a middle-class person with a regular job. Mechanic, nurse, etc.

[@brianbieron4733]

I have read about the retirement "expert" you highlighted. She is the worst possible example with her government paycheck followed by a low-impact, academic-style "job" into her 80's. Even then, she is drawing money as a "consultant". It would be hard to find a less relevant "retirement" example. Maybe a lottery winner?

[@TheDannyHamilton]

@8:11 I love the fact that when you say "or if I invest it and it captures a higher rate of return" the video is showing a cryptocurrency exchange website. 🎉 😁

[@kentonb-1]

I don't think being "restrictive" on spending in retirement is a bad thing. Some people (such as myself) genuinely enjoy keeping as much money as possible and watching it continue to grow. As I'm close to retirement, I plan to continue my frugal lifestyle as much as I can reasonably, with the hope of leaving a nice inheritance for my 5 kids. I honestly enjoy that more than travel or buying more "stuff". My dad was the same way. And as others have noted, you don't know what the future brings... Long Term Care in a nursing home? Major medical problem? Lawsuit? I'd rather have a nice sum of money to draw from than just hoping those things don't happen.

[@livingunashamed4869]

Ideally the longer you wait to retire the richer you should be due to compound interest. And the less money you'll need due to a lesser life span left.

[@nikij.6058]

And the time you have to “do” and spend in retirement. Don’t wait, you will not be able to do things if you’re too old!

[@toantruong7901]

I see your point, but I also think tomorrow is not promised. Time is getting shorter and health is getting decline. You worked all your life and so enjoy while you can in go-go years, unless you are super healthy and can afford to wait. It is just my thoughts though.

[@paulseidel5819]

Personally, I like the flexibility of having Roth, Traditional and a taxable account. Being able to draw from each, as needed is good.I love being retired, but always tweaking things.

[@kathymills1959]

Love the info but stay for the BLOOPERS!

[@julieg.5718]

Working until semi retirement at 82 is, I think, selfish-not admirable. There are talented folks in their 40s and50s who are ready to be promoted within her organization but can’t because “she loves her job so much she doesn’t want to retire…” I’m 61 and will be retiring in 14 months because a) I have ‘enough’ to do so and live comfortably for next 30 years, 2). I’m ready to be the master of my daily time, interests and destiny and 3). There are talented people on my team that our organization is in jeopardy of losing because there are no internal promotion opportunities (until I leave!) So my thesis: once you hit 70, you really need to think long and hard about others and what’s best for your organization/company and those talented people working for you

[@stevek7068]

I believe Erin made a video that touched on this, but in light of the mistakes made, even by a retirement guru, it bears repeating. The RMD on a large traditional IRA or 401K is a death trap for your retirement. The RMD starts out pretty small with only minor tax consequences. However, as you age, it grows putting you in a higher tax bracket than anticipated. This is made even worse if one spouse dies, leaving the other to make the withdrawals at the generally higher individual rates. Converting to ROTH (or simply contributing to ROTH from the beginning) reduces or even eliminates this problem.

[@marksutton8504]

I spoke with SSA, they stated SSA has a rule that if a person has not worked 5 years prior to collecting SS that person could NOT be insured and may not be able to get the benefits! Could you explain this.

[@thomashenkler4969]

Downsizing for sure. Less upkeep, taxes, utilities and free up capital that can generate passive income. Add transitioning to a home that is optimized for life in latter years. It will be sad to leave the home we raised our family in but maintaining a big house is getting harder as the years go on. New home, new memories to make.

[@mikeg9b]

Video suggestion: There are so many articles and videos about retiring overseas, but they never seem to mention investment accounts. Explain how someone can keep their US investment accounts (I have a Vanguard and Fidelity account) if they retire in Mexico to escape high US prices. Assume the person is a US citizen that will live entirely off their savings, US federal pension, and social security -- in other words, no Mexican assets or income. My (hopefully wrong) impression is that you need to give Vanguard/Fidelity a physical US address to trick them into thinking you are still a US resident. Also, I don't want an International Vanguard/Fidelity account. I want to keep the same accounts with the same S&P500 index funds that I currently have. I also have a TSP account. Is there any hope?

[@ErinTalksMoney]

Great suggestion!

[@ron9665]

1:34 ok I'm a bit lost here.... "As Home values have increased..." Unless a person is planning on downsizing at retirement, increased home values only serve to create more taxes for the retire person(s). Now if you found a reverse mortgage company that would treat you fairly then this may have some potential; however, you would still be paying far greater taxes. My house taxes have increased by 300-400% since I bought it.

[@ron9665]

OK - you hit it at 4:42 (I write as I listen)

[@chrisforker7487]

No such thing as an honest reverse mortgage company! They are a scam for the poor.

[@nikij.6058]

True. I bought my house 27 years ago and the taxes can only go up 3% per year, so taxes are relatively low if compared to neighboring houses. If I sell (which I won’t!) I’ll have to buy a home and pay more for something less, effectively resetting my taxes much higher than they are today. So I really lose any benefit from downsizing. Pencil it out, and you’ll find in many cases it doesn’t pencil out!

[@aolvaar8792]

increased home values only serve to create more taxes???????? I pay $750/yr property tax AND it is Capped by Law, 6%/yr AND it is less than when I bought 15 years ago. Bought for $50K, Now $500K

[@davidboyd7494]

People frequently talk about $1 mil but when you think about this it’s really not much.

[@dstevens518]

Depends on your expenses, obviously, but agreed, in today's world of unpredictable inflation, volatility, and longer life expectancies, I'd say $1M is on the low end of "enough".

[@TheDannyHamilton]

Live for 40 years (55 to 95), and (without interest) a million is only $25k per year (a bit less than $2100 per month). Obviously the investment returns earned each year will help, but sequence of returns risk can be scary for the first decade or so.

[@byrrongardner]

I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my goals?

[@markwestcotts]

keep contributing to your 401K, remember you are in for the long haul, but I'd suggest you consider financial advisory

[@byrrongardner]

Noted and can you pls direct me to a financial adviser? I’m in dire need of one

[@markwestcotts]

My financial adviser is Gabriel Alberto William , he is not just a broker, he is a financial adviser that gives advice on any financial

[@byrrongardner]

I ran an online search with his full name and came across his website, pretty well educated. Thank you for sharing

[@shawnbrennan7526]

@@byrrongardner ^^^^ Trolls

[@thomasmoshier3920]

It all starts with SS. As much as 60% of seniors take it before their full retirement age. This limits the amount of income you can make in what for many are their maximum earning years. Not only that, but by retiring early, you now have more years and less money to fund your retirement. When in doubt, work an extra couple of years. It can make a huge difference. I would say she made the right decision regarding her pension. Unlike SS where you should wait as long as possible, pension should be taken earlier. This is because you want to live long enough to at least achieve your lump sum amount. As a young man, I always told myself I’d take my pension lump sum and invest it. However as I got older, it became apparent that a monthly income stream along with SS left me less worried about market fluctuations and sequence of returns. And I could still be moderately aggressive with my IRA. Overall not a huge fan of Roth. I’d rather spend down my portfolio on the kids in my 60’s when the kids are still relatively young and can use it the most. Rather than spend massive amounts in taxes.

[@gregkloe]

I am going to downsize so I can have no mortgage. I may invest all of my equity into the next home, but if I can get what we want and have some leftover, I won't be sad. Current plan is to spend down assets from age 65 to 70, then collect SS. If the market drops significantly during those five years, I may start sooner.

[@dbest4755]

Retired at 30, and will never take another W2 Job, reclaimed my time...

[@brandonblahnik6002]

I plan on selling my house and moving after I retire. My house has a lot of stairs which is not ideal for an older person. I would like to live somewhere I could live independently for as long as possible in retirement.

[@randolphh8005]

ABSOLUTELY! Stairs without an elevator is a recipe for disaster in old age!

[@mspock7]

Very hard to find a nice, small home in a good neighborhood.

[@alphaomega203]

I am not onboard with the home being a source of income. For me, if that becomes a player then you may not have enough saved. Most retirees I've known prefer to stay in their home throughout retirement for these reasons - comfort, familiarity, and the sense of being home. To downsize is not always a solution even for income, and, again, I see plenty of retirees not only regretting this but after downsizing to the retirement community die shortly after as they have lost something that the home maintained. As we age, downsizing becomes a solution not for financial reasons but for maintenance reason and that is where I see people recognizing they need help. I am currently looking at real-time retirees, family and neighbor, in their 80s struggling to maintain their own for their own wellbeing. Of course, there are plenty of variable concerning home ownership.

[@educatedwanderer9293]

Four years to go although I'm ready if I need to go early. Middle class millionaire!

[@kevincross1240]

Then go now

[@timp2663]

Do it. Things at my work were starting to go South and toxic. Im 62 and wanted to work till 67. I hired a financial planner Jan 2024. At our Feb 2024 meeting he said I was good to go and could retire that day. Told him I’d like to stick it out till the end of the year but I might call him at any time and tell him I’d pulled the pin. He said OK, just let him know. Well by August I’d had enough. Plus I had talked to a friend of mine who hired me part time for his company in July (started August 6th after retiring from my FT job Aug 2nd). Working 1-2 days a week and 99% of my stress has evaporated! 👍

[@educatedwanderer9293]

@@timp2663 I plan to taper down my hours and retire in 4 years when my employer will cover health insurance from age 60 to 65. If things get toxic or too challenging, I can bail early but that would require me to find health insurance to bridge the gap.

[@hogroamer260]

I'm looking to "same size" my home but upsize my property. Fences make good neighbors.... but not as good as property!

[@dlg5485]

I don't care how much you think you love your job, 82 is WAY too late to be leaving the workforce. I think this tendency to cling to one's career is more about self-importance than a love of the work. People in high profile jobs tend to believe they are irreplaceable, but everyone is replaceable, so put the ego aside and accept it. You will get so much more out of life if you put your job in its proper place and prioritize building a meaningful personal life.

[@BooleanError]

Just a friendly FYI: your thumbnail says "Socail Security"

[@ErinTalksMoney]

Thank you! Fixed!

[@teekay_1]

A home is not a retirement plan. It's a place to live that costs far more money over your life than you believe. That's not to say it's not nice to have a house. But liquidity is more valuable in retirement than a non-liquid asset like a house. If you're going to base your retirement around a paid-for house, what you should do when you retire is spend a lot of time getting rid of the junk and clutter to avoid your children just throwing it away when you die. Your children will appreciate that just as much as any money you leave them.

[@shawnbrennan7526]

I’d love to downsize to a smaller home, but the smaller places in our city are either poorly build new homes or 80+ year old homes that aren’t much cheaper and have maintenance issues. And many of the other towns we’d like to move to are more expensive for less house.

[@drz400sy8]

I agree. Downsizing seems to be getting much less for just a little savings. The costs to move are not cheap either. It use to be people kept their homes so their kids and grandkids could visit.

[@maymey]

You used the term "partner" when talking about Social Security. While it's helpful for "partners" to discuss their claiming strategy, it's FAR more critical for "spouses" to do it. When the spouse with the higher benefit passes, the surviving SPOUSE will keep the higher SS benefit, a surviving PARTNER in the same situation wouldn't. Also, regarding Roth conversions and future tax brackets, married couples need to realize that WHEN one of them passes, the surviving spouse will be taxed as a SINGLE filer, with a lower standard deduction and likely a HIGHER tax bracket.

[@shawnpatton3795]

What’s the gap between “retiring comfortably” and “meeting basic needs”?

[@SpookyEng1]

What are your expenses? My essential expenses are 3k a month. My retirement budget is 8k a month. So for me $5K a month is the difference.

[@shawnpatton3795]

@@SpookyEng1 thanks. Was there a gap between pre retirement and post retirement budgets?

[@mateoboschify]

A reverse mortgage is not a good idea at all. Planning ahead for retirement will get you a comfortable income without tapping into home equity.

[@shockwave1126]

You could also rent out a room, if worse comes to shove.

[@shawnbrennan7526]

I have a friend with little savings and no heirs. A reverse mortgage for them makes sense, but the devil is definitely in the details.

[@randolphh8005]

See my post above. We have a Reverse and it has been a great decision. We are making money on it!

[@Joshua.Carrasco]

Social* Security

[@11Hammers]

Home value increases mean nothing. Sell your house and pay more for less. No thank you.

[@Tesssa-r1t]

The process of trading can be complicated when you have limited knowledge. However, with the right strategy and setups, you can be successful. That's the whole point of investing.

[@SanJose-n6l]

Assets that can make one successful in life

[@SanJose-n6l]

I. Forex 2.Stocks 3.Shares

[@SanJose-n6l]

forex is profitable and lucrative investment online

[@Flower-z7h]

​@@SanJose-n6lYou are right.

[@Flower-z7h]

But I don't know why people remain poor due to ignorance

[@phuongha3113]

I'm downsizing to another country. America is too expensive...

[@dstevens518]

There's a ton of videos about ex-pat retirement abroad on KZbin. Everything from informing you about the process required to locate elsewhere, to reviewing the options (different locales, cultures, weather, food, costs), to experiences of folks who stayed and loved it vs. those who came back and why.

[@trackguy4038]

Can you do a video on buying a condo in Florida? That is a nightmare now since the condo collapsed on Florida. Now condo owners can get hit with 20K for repairs to the building

[@randolphh8005]

This is 100% true for OLD condos in multi unit buildings. It is not true for newer or most townhomes.

[@User31084]

Wow, erin. You're way too old not to have a wedding ring, yet. Did you damage your husbands retirement by dragging him through divorce court???