Retirement Risks: 7 Traps to Avoid

Рет қаралды 13,679

Күн бұрын

Пікірлер: 29

@jnewby74 Ай бұрын

This is a great video!!! One of the best I’ve seen. $4M at age 40 is obviously very uncommon, but the risks you discuss and the way to address/think about them applies to everyone regardless of age or portfolio level. Great job!

@M22Research Ай бұрын

Umbrella Insurance for lawsuit risk - smart to have it like this scenario. Umbrella insurance is cheap, often $200/year for the first $1 mil and about $100 per mil above that. Umbrella insurance fills in the gaps in your other existing policies and bumps limits to cover risk. If lawsuit risk is a key risk you are covering, note that 401K’s are already protected at the federal level. Talk to your agent.

@AmandaRenee-z8h Ай бұрын

At 53, I retired, and now I'm in my early 60s. Many of the folks who pushed back against me couldn't quite get the idea of not working if it wasn't necessary. I considered my life to be in phases. Even though I've worked very hard to get what I have now, I owe it to myself to "stop and smell the roses" in this last phase of life. In my instance, I departed the nation upon my retirement to reside in Latin America. I was able to appreciate my new surroundings and distance myself from all the bad things going on in America. Nobody I know regrets retiring, as far as I can tell.

@woodsparker7902 Ай бұрын

James, thanks for keeping us alert to the risks when planning for multiple years. At what point (if any) would a QLAC make sense when looking at such a wide retirement range?

@lindsaynewell6319 Ай бұрын

Excellent video, especially the asset return risk and how to analyze MC simulation - confirmed I’m on the right track looking at trajectory of 25th % and 10th % to see when risk would become obvious and drive changes to the plan. I wish Ari’s recent video on MC had focused on this type of analysis.

@ericgold3840 Ай бұрын

Kudos to James for mentioning health. The topic needs a lot more exposure. I'm less enamored by declarations of 'mitigating risk' without more discussion of the actual mitigations involved. #1 is making small(er) changes earl(ier) on. James implied as much, but I think he soft-pedaled the actual solution and he did not explain why earlier changes are so useful.

@quantarrow Ай бұрын

Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments.

@edwardnilges1675 Ай бұрын

$137k in annual LTC cost?

@brandonc9572 Ай бұрын

Great video. What’s the name of this planning software?

@J-2024-v8i Ай бұрын

Great video! One point to make is that the $529k in tax-deferred may not look like a big problem now but, assuming it is mostly invested in stocks, it could easily triple by the time they can access it, unless they do smallish Roth conversions along the way to avoid having to do much larger conversions later. Without any conversions, or withdrawals once they are 59.5, they could potentially have $2.5M+ by the time they reach RMD age.

@ukymon Ай бұрын

I turned off the video when you said 4.7M. Can't relate. Appreciate your content and expertise. Would love to see some videos on portfolios in the 700k-900k (at 56ish years old). Thanks

@EJJ-EvArms Ай бұрын

If they're retiring at 40, social security probably shouldn't even be a consideration. It takes one's best 35 years, and they're giving away 15 of them, unless they intend to work part-time for a significant part of those 15 years. And that's fine if they're not, they should just know that 15 zeros are going to he averaged in and SS will be a blip compared to the rest. Given their large portfolio, it should be fine, but others should be aware.

@RootFP Ай бұрын

Good point

@墨紫月 Ай бұрын

Can’t include inheritance period

@MichaelToub Ай бұрын

Great Video!

@RootFP Ай бұрын

Thanks!

@richdewitt760 Ай бұрын

This couple will also likely have 15 to 20 years of "Zeros" plugged into the 35 highest years Social Security uses to calculate a benefit $. So there monthly SS amount will be very low. But hey if I could have retired in my low 40s, it would have been a better life well lived. Rich

@danielduchesne8957 25 күн бұрын

Went to the website to check out the root software and saw that financial planning is only for $2m+ portfolios??? I'm there, but that is contradictory to what your messaging is on here or maybe i misunderstood. Lost interest now.

@M2TC Ай бұрын

How to model a long term illness of one of the spouses that would require LTC for one? That has been an issue for people I know. Some having to divorce to keep the healthy partner solvent in their home

@ynAMe6Aj Ай бұрын

Upping your thumbnail game, sort of.

@richdewitt760 Ай бұрын

James, as usual Sir great content and you have the easy speaking manner, and heart of a good teacher. I know SS reduction is a risk, but it should not be! We paid into it, it is an "Annuity" of sorts not a welfare entitlement. If the Government can send hundreds of billions of dollars to allies for wars and relief, fund FEMA natural disaster victims every event, then they can send a few billion to SS fund that we earned. Give Congress no quarter on SS! Rich

@djsnowpdx Ай бұрын

This couple is worried about retiring with a 2.5% annual withdrawal rate? If they can’t do that successfully, no one can retire.

@fr9714 Ай бұрын

Great analysis. $4m at 41 net worth is outstanding. My target is $5m net worth by age 53 or so. Maybe $6m by 60 with at least 66% of that liquid in portfolios. This video is great for folks in their 30s and 40s as you have time to course correct

@fr9714 Ай бұрын

Also if markets return say 15-17%/year then you’ll double your portfolio in every 7-8y. So $2m becomes $4m. Key is to keep adding money into portfolio constantly and rebalancing to get bigger yields.

@RootFP Ай бұрын

Thank you

@alk672 Ай бұрын

The more I look at these risks the more I feel the entire planning framework is kinda useless. Yes, it is the mathematical reality that if return rates and/or inflation is drastically different from the projection - the outcome will also be drastically different. So what's the point to even look at these projections? You can plan all you want, but then if the market is flat for the first 10 years of your retirement you won't have nearly what the projections were showing. Sure you should be invested correctly and not into the latest and greatest tech stock only, but at the end of the day parameters impact the outcome so steeply that the model feels useless.