The Downside of Working "Just One More Year"

Рет қаралды 23,257

James Conole, CFP®

Күн бұрын

Пікірлер: 65

@striperkid Ай бұрын

I'm retiring in 3 days. I'm definitely leaving money on the table but sometimes, it's just not about the money.

@rbeberman5296 Ай бұрын

I’m 63 and a half, my company offered voluntary severance, 9 months pay plus 18 months subsidized cobra. I’m taking it. I’ll be stressed about living without a paycheck coming in, but i’ve got few mill saved plus a pension and hopefully ss on the horizon.

@Mary-tj5qx Ай бұрын

The book "Your Money or Your Life" lays out 3 or 4 things money means to people. For some of us its freedom, for some it's safety and security, for others its status or power, and so on. They go on to say that we can understand what money means to us by looking at the way you use money. I mention this because it's the loss of this particular value we assign to money that likely stalls our decision to retire. For me money is freedom. Because I recognize freedom diminishes as health declines, I am aware of the cost/benefit of continuing to work and will retire early in my mid-50's for this reason, next year. If money represented power to me, the calculation would be completely different. Another good one, guys.

@nunuvyurbiz123 Ай бұрын

I'm in my sixth "one more year." Bonuses, RSU vestings have been repeating goalposts. I'm 56. I have enough - $6.45M invested, plus ~$750K in net home equity which I will liquify (sell my home). I have a plan for what I will do in retirement. There are two things that have been holding me back (1) the fear of regret of walking away from my large income. Over $500K. It's a lot! i can imagine being retired, telling someone how much I made, and being called a damned fool for giving it up. (2) financial needs of my parents, as I don't really know how much they have, just that they definitely don't want to go in an "old age home." But time is running out. Even a best case scenario means my remaining time is dwindling fast. So I'm out early next year.

@robertkelly6189 Ай бұрын

Rule of 55 kicks in on Jan 1, 2025. If I'm still working in 2026 please save me!

@arh1234 Ай бұрын

7:50 "It's all in Bitcoin" about gave me a heart attack. James, you've got to acknowledge the good jokes!

@bridgetgruich Ай бұрын

I don’t need to replace my (current) income. I need to cover my expenses.

@user-bs1lj3kv7h Ай бұрын

Love both of your channels. Retiring at 55 at the end of 2024. Feels amazing!

@RootFP Ай бұрын

Congrats!

@julieg.5718 Ай бұрын

I loved this hypothetical role playing between you two! I subscribe to each of your KZbin channels and enjoy your different personalities/styles-and I’m always learning and picking up strategies from you. I’m 61 and will be retiring in 15 months, thanks so much!

@michaelkastning8150 Ай бұрын

I'm guilty of the goal post relocation exercise. It's super hard to take the leap, no matter how many times the math says its ok. Great video guys!

@TheAzmountaineer Ай бұрын

Just as I was getting ready to retire, I made the sale of a lifetime. It was a three year contract, paid yearly in advance. I stuck around two more years to collect my commissions and max out my 401K and IRA, and then retired. It was definitely worth it in my case. When you're in sales, no matter when you retire, you're leaving money on the table, plus there's always a big deal getting ready to close. I could easily see many sales reps doing one more year again and again until one day they die at their desk. I'm lucky it didn't happen to me.

@eddieloujones2673 Ай бұрын

I'm literally doing the wait thing right now. I don't know what I want from retirement so I'm postponing it. I'm fairly confident I have enough.

@paulshepherd2289 Ай бұрын

Thank you for the video. I watch both of your channels and love the content.

@damansarajaya88 Ай бұрын

Great episode, just in time as I walk onto my first 1 more year cycle. Work isn’t overly difficult, pay and working environment is good, I have balance to spend time with family, the push is weak but the real reason is most prob the pull to retire early is too hazy as I haven’t work out how my life routine would be when all my friends are still working. At 50 there’s some time to go a few rounds of 1MY and happy to watch more videos until 1 sparks me to get cross the line. Keep up the good sharing.

@mm669 Ай бұрын

I once got upgraded to first class on Christmas day flying from SFO to Colorado. It was magical! Thanks Santa!

@mymusicalsons Ай бұрын

We're in this mindset. Glad to have this video to help us decide.

@circus14 2 күн бұрын

I'm 61. After being RIF'd 3 times in 6 years, my "waiting for" has been needing the stock market to get back up to or past what it was in late '21. And one more bonus this last December. I haven't yet figured out life without work besides golf in the summer, but with my wife I'm sure I can figure things out including PT work. I can cover our expenses with private pension, two SSs and a high yield portfolio to minimize capital withdrawals. So - 4 months.

@Aortadetroit Ай бұрын

Right there. Right now! Wanting a middle class retirement looks SO expensive right now. Thinking 200k income after taxes.

@thebigguy Ай бұрын

My company has an "ease into retirement" program where if we commit to a retirement date not more than two years out, we can go part time until the end. I'm going to sign up for that soon and will plan it so I get "one last bonus" right at the end. The commitment to a "no later than" retirement date will mean that I can't stretch it out "one more year".

@FIRE_DrNinjaTurtle Ай бұрын

I almost stayed for the summer bonus at a college, but I quit and I am so happy. I went down from 4 colleges to 3 colleges and I am OK

@tcwaz Ай бұрын

James, you answered one of my questions on your podcast a few years ago on lump sum investment from a house sale and an early retirement plan. Since then I have done two "One more years" and might do one more next year. I just turned 46, am FI but suddenly high income has caused me to move the goal post a few more times. Ugh... great topic and discussion, I always appreciate the good advice and strategy. I really think this next year will be my last.

@igodexter1 Ай бұрын

Name of podcast should be: Roots of Retirement

@donaldlee6760 Ай бұрын

I worked for Continental Airlines. I have flown many, many times in first class. I enjoyed paying $50 to fly first class international because the seats recline almost flat so that I can sleep, but domestic first class seemed wasteful to me even though it only cost $20. My only regret was that I didn't pay the few hundreds of dollars to fly on the Concorde because you ended up sitting next to politicians, movie stars, and other interesting people. I'm no longer an airline employee and I would not pay for first class unless it was a small extra cost.

@spinnetti Ай бұрын

I struggle with this... I guess being goal driven for my whole life, its natural to have a goal... I have nothing to retire "to" either, so may as well keep going. The more I make, the less need I have for status items - I could care less about flying first class. I fly as cheap as possible, because its just a few hours. Why waste money on something that isn't an experience?

@matttijan4048 Ай бұрын

"Getting to the ROOT of Retirement" podcast

@TFINDLAY86 Ай бұрын

Good topic. Exactly where I am right now.

@gchow6009 Ай бұрын

We ease into full retirement by going part time for a year. In the meantime we look for volunteer work at church and non profit organizations that can use our skills.

@jaurouze Ай бұрын

For the name, I liked the “Roots of Retirement” suggestions the best, incorporating nice branding for the podcast 👍

@jdial68 Ай бұрын

I haven’t said the one more month, one more year thoughts yet.. up until this last year with watching your videos and working with the academy I didn’t think I would ever be able to retire because of the you have to have so much, or you have to do this information.. The academy and your videos allowed my wife and I to see a potential to actual retire earlier than planned.. as we get closer the picture gets clearer obviously..

@dlg5485 Ай бұрын

I am impatiently anticipating retirement, so I won't have a hard time quitting at all. I would literally retire today if I could. I think most people who are financially OK but are still scared to retire just don't have a financial plan that gives them the confidence they need to quit. I have a plan that tells me roughly how much I will need and that's how I know I can't retire yet, but as soon as my numbers look right, I will give notice that day. Also, it's not just about the money. You also need to have a plan for what you will do with your time in retirement. You can't just go into it blindly expecting everything to fall into place.

@pglover19 Ай бұрын

Ari & James.. Could you please have a Part 2 and illustrate this case study in the RightCapital retirement planning software.

@mike-e4e4e Ай бұрын

The difficult part is the lure. For us: every extra year we work adds roughly 2k a month to our budget in retirement. For me, it's worth one or two more years to have more money than we can actually spend and not have to stay on a strict budget. The fact that I won't sweat a "bad month" or won't have to wonder "did we go out to dinner too many times this month?" or "yes dear that's a nice cruise but it's $15,000". I think we'd rather retire with a better lifestyle than a lesser one. Watching every dime isn't for us.

@firstbikeisascout9103 Ай бұрын

I’m enjoying working when I don’t “need” to (ie we have enough money). Like my job, the people, benefits (medical, et al). My parents, in their late 80’s, say to put retirement off as long as possible. Working keeps the mind sharp they tell me.

@joeskwara5823 Ай бұрын

For me a lot of this as a 63-year-old has to come down to two things. One is I don’t work a job where I have no flexibility so many times I can go golfing or do something else when I want to so why do I need to stop making money? The other thing has to do with my brain and I know that I cannot shut down my brain to sit in my recliner and I am better off healthwise keeping the work brain juices flowing with that little bit of stress which is actually good for people as opposed to a lot of stress, which is bad for people.

@GeraldMiller-g4c Ай бұрын

Yes, I have worked another year.

@mm669 Ай бұрын

I'm just terrified to retire now because prices have gone up 21% since 2020. I know inflation has stabilized, but this rapid increase made my daily expenses very stressful. I now have to watch every penny and always shop the grocery sales. Next step down the elevator, will be having to go to the food bank if we get another bout of pandemic aftermath type inflation.

@chicarbiomed Ай бұрын

OMG both at the same time? Is this the best timeline?

@timduffin5600 Ай бұрын

How about "Ready for EARLY Retirement" Colab?

@edhcb9359 Ай бұрын

In the spring my wife told me if I didn’t win another President’s Club trip at the end of this year that I could quit my job and retire. So I phoned it in the last six months. I threw in the towel. No extra hours of work every week, and no stress at all. It’s been nice. Here we are at the end of the year and despite all that it looks like I am going to win the trip and it happens at the end of April. 😂 Here’s to another six months of work!

@timhaerr4327 Ай бұрын

Double Trouble, not..... maybe 'DOUBLE keep me out of TROUBLE'. Maybe Double down on Retirement. Thanks for your podcasts, lots of great information and thought starters.

@gnazare1 Ай бұрын

Great videos. I am thinking about starting to plan and I came across your videos. The retirement software you use - is this the full version that I will get access to after payment? How long will I have access to this software?

@Cindy-ee5ou Ай бұрын

Asked myself - “if I won the jackpot tonight, would I quit my job?” The answer is no. So will work until the company kicks me out, or something emerges itself that I prefer to do.

@garonfoster9090 Ай бұрын

Name for the podcast: Rooted in Retirement

@finned958 Ай бұрын

Context matters with one more year. If you’re 62, you’re probably financially ready. If you’re under 59.5, you likely aren’t going to use retirement accounts since there’s a penalty for taking a distribution. So you need to have a lot of money available in savings and investments to bridge the gap. Early retirement before Social Security doesn’t make sense for most people, but plan for early retirement at 62.

@2dodger2 Ай бұрын

What’s PTO?

@jeffgehman8344 Ай бұрын

Do you two have retirement plans, as in a specific age you intend to retire? Or do you have a specific nest egg total you need to hit, or a monthly expenditure target that once you hit that it will let you know you can retire? (I'm not asking for the actual $ figures, just if you have nest egg goals). I've watched a bunch of your vids but don't remember if you either said.

@briantheoakbrookpicker578 Ай бұрын

“Finance Bros” - the younger Cali version of “The Money Guys” 😂👍✌️

@copernicus00 Ай бұрын

I'm 52 with 525k in my 401k. I looking at 10 more years to retirement, and it feels so far away.

@pglover19 Ай бұрын

If $60k per year in pension income is worth $1.5M, what would $93k per year of non-cola pension income be worth?

@Aortadetroit Ай бұрын

I really appreciate you guys. If you were fee based, I'd probably hire you in a second. We all know the gig. For some people it's probably worth it, who know nothing about finance but otherwise fee basedis just a loser.over time.