I’m 61 with $1.7M How Much Can I Spend in Retirement?

[@1Phedre]

Everytime someone has a pension, it makes their situation diverge from mine instantly 😢

[@rachaelwolf3966]

So glad you reviewed a portfolio with a single women, tsp, pension, and her others!! Would love to see more of those. Thanks!!

[@beattyj8]

Love this, and am in a similar boat but am still 10 years out. Would love to see if it made more sense to have Robin pull from social security at 62 for a lower benefit but also less withdrawal rate strain from her portfolio in the early years of retirement. Yes, taking it later means a greater guaranteed amount, but she's effectively causing sequence of return risk by having a higher withdrawal rate early in retirement. Would love to see pros and cons of that and how to weigh it, knowing the uncertainty of lifespan/healthspan.

[@daveslomski]

$71k/yr?? Maxing out the 401k and housing costs are already more than here salary. This cannot be real.

[@rustykatt3870]

Great job James! Great job Robin! Just remember, no one would have guessed 4 years ago that our food costs would have gone up 100% by 2024. All these to us all ✨😊✨

[@280zone]

Let's just take a moment to applaud Robin for getting to where she is with a 70K salary!

[@jacquelinetakacs8829]

Thank you!!! Oh the memories that brought back! Please do another one!! I hated being married and this hit home! I am so much happier and at peace now!!!😂😂

[@noelrutherford6321]

Nice to see. My situation is very similar. $50k Pension, $2900 monthly SS and investments at $1.8 million. No home equity but I need less for monthly expenses and for medical. Thanks for sharing.

[@dsvillalva]

You lost me at the pension. Granted, a lot of retirees now have that option, but many of us in a younger workforce do not.

[@mindyfrohlich6187]

Thank you for this example. It is similar to my situation since I am widowed and plan to retire in a few months when I am 62. I have a pension, which I know I am luck to have, but it does not have a cola.

[@JohnSimpson-r5d]

James’ comments/insights are excellent Recommended book: “Die with Zero” by Bill Perkins.

[@gshew1871]

Robin did well working as a teacher.

[@bathilda1]

Something is off. She makes 70k now, maxes out her retirement accts now, and has a 2k/mortgage. She doesn't have enough left over to pay for her current lifestyle (5k). Is she increasing her monthly living expenses in her retirement?

[@Whatishappening-u3b]

Hi James I love your videos! If I purchase the Retirement Planning Academy do I need to give the software access to my actual accounts to track returns? I know some software does and I am not comfortable with that so just wtd to know before I purchase?

[@dumoon99]

Another great practical example! I wonder why the software counts RMDs in the withdrawal rate. I would think those would exceed her expenses and she could reinvest that money in her after tax account which would no longer be a true withdrawal. Or maybe it is doing that but the bump up is from the extra taxes required?

[@JohnSimpson-r5d]

Good analysis (except housing maintenance is too low). Note: Start your cases with her personal situation (marital status, family, career, siblings, parents).

[@jameschaves5723]

I’m not sure why you separate “her expenses” from mortgage and healthcare. It really should be all included

[@greenlantern1986]

Is it like another 5 years of videos that include pensions? Looking forward to that day.

[@jayplays568]

Hi James, thanks for all your videos. Am I correct in thinking that in this specific scenario, she is in a very very strong position since she has quite a high chance (78%) that her portfolio will be enough, but she also has a large margin of safety because she has social security and her pension (as well as the ability to decrease her expenses) if something goes wrong?

[@scottgets7637]

Wait, who buys a $600k house on a $70 salary

[@NYCLeeL]

Wouldn't it make more sense to add all monthly expenses including housing and have two line items for sinking fund and personal fund which varies and could be cut back?

[@Larry-yb7zl]

Pensions are not guaranteed. Known multiple people who lost theirs or the payment was chopped. When she hits RMD's I would bet the late year withdrawals will be substantially higher than her expenses. At that time the excess funds can be held in her brokerage. Wish he would have shown how much she is required to withdraw vs. how much she needs to withdraw or spent some time on tax strategy of converting to ROTH for a few years.

[@datbio7302]

$5000 / mo of expense = $60,000 / yr on top of housing. But her annual salary was only $70K. What, is she operating at a deficit annually? I don't think she will need that expense currently and in retirement. Something does not add up here.

[@pmok7541]

Can the retirement software be used multiple times with different scenarios?

[@mokshshah9305]

I see that you put tax payments as a separate expense. How were those annual taxes calculated and couldn’t you use tax strategies to minimize those annual taxes?

[@scottbaker9066]

Wouldn't taking the pension lump sum be a better choice? She has shown that she can keep assets invested for 20 years. Could you expand on the impact of a safe (Savings Account & CDs) or an aggressive (S&P500 & NASDAQ) portfolio? My parents SAVED (in a bank) for retirement ... I know that my investments equal parts Real estate, S&P, NASDAQ 100, and TQQQ has grown far more and will better fund my retirement. Please keep pensions in your examples, that's relevant to my situation.

[@jihongwu8291]

With pension should be shown in the title so I would not have started watching this video with hope!

[@angelolamantia]

Robin had a nice government job. If her SS is that high she was making more than $70k during her career.

[@elizabethandrews4199]

How much independent contractor income can you earn and still collect social security security?

[@scottlehner7237]

Pension?

[@keithwilmes4946]

Sounds a little light on healthcare cost. I am retired and remain in my previous employer’s plan. It is $683 per month currently and increases about 10% per year not including any other out of pocket medical costs. Also long term care projections seem low…i know people that are currently spending $10,000 per month.

[@МЕГАПоЗиТИВ-й2е]

HOUSING ($36k) & HEALTH CARE ($7300/Yr.) make perfect sense , but what's the living expense of $63k for? I mean groceries, gas and cell phone/Internet come out to a total of $1k per month max...not $5k 😂

[@Larry-yb7zl]

Hands up for everyone who has a $650k house and their insurance and HOA combined is only $1,032/yr........

[@datbio7302]

there is no need for any sort of analysis. If you have a pension that can cover half of your current salary, you can retire for sure.

[@miragexl007]

Oh crp... How much does she own on the mortgag? Oh...she has a pension... On top of the 1.7. No comparison for most.. Sorry.. Not much benefits for me to watch. Teachers government people with pensions, People with almost full medical coverand retirement Besides social security. I consider myself normal. None of that Bonus stuff. Lol

[@janethunt4037]

Thanks James. I was able to follow this well, and I need to run Monte Carlo on our plan. I’m wondering why she’s not waiting until 70 to take social security.

[@scottgets7637]

Off the cuff calculation of her pension, unless her salary was much higher in the past she has been working for the federal govt for 56 years. Meaning that she started at the age of 5. 😂

[@lifestream4191]

That reads like she's a widow. I hope not...

[@beanbean321]

What investments would you put Robin in to get 6 percent ? HYPOTHETICAL

[@scottgets7637]

TSP millionaire on a $70k salary 🤔 only if she is currently opting to work part time

[@tommyg6178]

Teamsters 135 💪

[@silverbeastoftheeast7139]

I was led to believe every $100,000. You save is equal to $400.00 a month income. Is this true?