The FOUR Financial Levels of Retirement - Which is Yours?

This video discusses the four financial levels of retirement and shows you how to move up, even if you are already retired!
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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.

[@HolySchmidt]

Check out one of our most popular videos - *4 Major Social Security Updates for 2024: What You Must Know* -> kzbin.info/www/bejne/sHOmnnRrjd1qi5Isi=UKlzbdkAe1kuk20O

[@cathyspiegel6765]

Not making up to a million before retirement is unfulfilled retirement.!! I’m 50 and my husband 55 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. No longer putting blames on FED for our misfortunes. Saving and investing lifestyle in the stock market made it possible for us this early, even till now we earn weekly.!!.

[@cathyspiegel6765]

What I think everyone need is an adviser, who can help you get in and out of any investment at any time and you'd sure be in Profit. With this I feel anyone can basically achieve financial freedom.

[@tVideoUTube]

lol... Spam thread folks!

[@user-wt6zf4ek9k]

I'd be retiring or working less in 5 years and I'm only curious how people split their pay, how much of it goes into savings, spendings or investments?? I earn around $265K per year but nothing to show for it yet

[@EmilyMoore-n7n]

damn! get rid of any unnecessary purchases, especially things that cost you monthly, you should look at financial planning.

[@AdamGreene222]

@LofgrenMark How can I contact your Asset-coach as my portfolio is dwindling?

[@AdamGreene222]

@LofgrenMark I just looked her up on the internet and looked into her credentials. I wrote her a letter outlining my financial objectives and planned a call with her.

[@dac545j]

That's a huge salary isn't it. Is your post "a humble brag"?

[@TheDjcarter1966]

Yeah if you make $265/yr and don't have anything you not smart enough to make that... Simply live off of about $100k then putt the rest in an index fund.

[@kortyEdna825]

Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.

[@Justinmeyer1000]

Yes i agree and right now the markets are going berserk right now but the bear market has contributed significantly to the growth of my investment. I was able to quickly increase my portfolio from $180K to $572K. Essentially, I was just doing as my financial advisor instructed. You're good to go as long as you get competent assistance.

[@shannonsally455]

@@Justinmeyer1000 That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?

[@Justinmeyer1000]

My Financial adviser is ‘’JULIE ANNE HOOVER’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market

[@shannonsally455]

@@Justinmeyer1000 Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.

[@dubiousinvirginia1123]

I am Financially free in retirement by these definitions. I checked off a lot of my bucket list before retirement. Traveled extensively, lots of education both for career and fun, some luxuries in furnishing my home, all bought to keep a life time. So, now attending more to family and friends is my bucket list. Applying money to projects and hobbies at home that I could not enjoy before because I was seldom at home. I am good with this, I am now very resistant to ever stepping on a plane again.

[@blchandl2]

My parents instilled the notion of living well within your means. I was able to retire at 58 and consider myself in the financial freedom retirement category. That is because I am able to do what I want and spend basically what I did when working. I was not a big spender when I was working so to some, I would only be in the secure category. I have always watched what we were spending and made sure we were saving. All said, I am happy and that is all that matters.

[@bob_frazier]

Absolutely. Quality of life and retirement income are not tied to each other beyond a certain level.

[@DrSchor]

@@bob_frazier give us a hint: where is the level?

[@jmsl_910]

@@DrSchorave you read The Millionaire Next Door? it's a bit dated, but the author explains living BELOW your means & investing the extra money you make when you get raises

[@bob_frazier]

@@DrSchor I've heard $70,000 but realize it's completely subjective.

[@jmsl_910]

is that a typo? maybe you mean *below* your means?

[@lauraarnold8117]

My ex husband left be broke and in debt 75k plus a mortgage. My "secret" is that I worked 2 full time jobs for 5 years, paid everything off, refinanced my mortgage, put all my old 401k accounts into one spot (IRA at my credit union) in a CD paying more, then made sure that I have 6 months savings in the bank. I will work 4 more years to FRA while paying off my mortgage in total, while saving more. I wont be rich but with no bills other utilities, insurance and taxes, I will be comfortable. Bottom line. Strict budget.

[@dking1362]

Way to make lemonade from lemons. So glad you didn't let him/your situation ruin the rest of your life. You go, girl!

[@janelandry6584]

My rule from my first credit card has always been that I can’t charge something if I can’t pay it in full when the bill comes in. I told that to a friend once and he took it to heart. He was able to get out of debt fairly quickly after that.

[@DrSchor]

you left out the rest of the story; how did you buy your house? by the end of the month?

[@xlerb2286]

Agreed. Using it as a payment (but not credit) mechanism is the only good way to use a credit card. Charging something and incurring interest is just giving money to the bank rather than to your future self. And by paying just the minimum payment you're being a cash cow for the bank. I've got better things to do with that money.

[@goldstandardaviation1667]

Just to be clear, you aren't retired if you work a part time job, you are semi-retired. Retired means you no longer work for a paycheck. 🙂

[@DrSchor]

who made you a lexicographer?

[@penelope5500]

Why do people get so hung up on this? If someone leaves their full time employment but then has some kind of a p/t gig why is that any skin off your nose?

[@garychristison763]

Agreed, if I have to work a part time $15 an hour job, It's not a gig, it's a part time job and I'm not fully retired. I also get the rental property investment and that has worked out well for a lot of people, but managing rental property can be a lot of work and stress. If a person holds on to their rentals, I would say they aren't fully retired.

[@dforrest4503]

Honestly, I think the difference is if you still HAVE to work, you’re semi-retired. If you’re working part-time by choice and can quit at any time, then I’ll give you the retirement card.

[@scottschultz7645]

I don’t agree, I consider myself retired but still work 2 part time jobs. Not because I need the money, and not because they pay me a lot. I consider it volunteer work with lunch money. Also I take off whenever I need to. My “employers” understand that if they give me a list of more then 2 things to do I just go home🤣.

[@reebeeable]

I have the financial freedom retirement. No debt, very low six figure Roth and 401k, but a comfortable pension and will be even more flush when I take social security at 70. In 2014 I had $125,000 in debt including my mortgage. I used a free app to track my debts and to figure out how much extra to pay each month to be debt free by the end of 2020 with a goal to retire in 2021. I was not a high income earner so this was a challenge. The app helped me see progress, face reality and avoid new obligations. Many times I’d alter vacation plans or not buy a new whatever because the app showed that doing so would delay my debt free date by x number of months. Too often people think some magic windfall will make everything okay in the future…I know that the only magic is having a plan and sticking with it. I became debt free in January 2021 and am now happily and comfortably retired. My only regret is not maxing out my Roth contributions.

[@marcorocci-ct7kw]

We made the decision 23 years ago to live off one salary and invest the other. After having three children, it was difficult, but we worked extremely hard and made significant savings. With our teenagers, we have been touring the US for the past two years. We are currently 47 and 48. FI was significant. Although we're not quite ready to retire early, we do have the choice. We have roughly $1.7M.

[@ConradGosling]

@AlexanderWebber I concur. The downtrends disheartened me when I first entered the market in 2019 and I sold off. With advice from an investment advisor who was suggested by a friend of my wife, I returned in 2020 this time. In my first year of working with her, I earned more over $230,000.

[@SlParkerlee]

@@ConradGosling I actually subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your advisor?

[@ConradGosling]

@@SlParkerlee There are many freelance advisors you could check out. I have been working with “Stacie Kristal Weber’’ for four years now and she's really good. If she meets your discretion, then you could go ahead with her. I endorse her.

[@SlParkerlee]

@@ConradGosling Thank you for this tip, Stacie appears to be quite knowledgeable. After coming across her online page, I thoroughly went through her resume and I must say, it was quite impressive. I reached out to her, and I have booked a session with her.

[@markshuell3198]

We’ll done sir. I’m a retired Certified Financial Planner. Back when I was in practice I told clients “If I could tell you any mathematical formula, it would be this: DEBT = RISK”. Best Wishes, Mark Shuell CFP, (retired)

[@ourblazingworld]

At 43, i left my high paying job with a 401k that was less than lack luster and went to work for a state university, so i could take care of a terminally ill parent. I thought it was short term, but after my dad died, my mom was diagnosed with dementia so i stayed. Well, it worked out to be the best decision i made for many reasons, but also, now i will have a decent pension for life. Maybe the same would have happened with my 401k.. i dont know, but im glad to be with a state with a stable pension. I am very grateful to God. I won't be swimming in money but I will have what i need and some extra for travel etc.

[@MJA5]

I’m rich in spirit 😂

[@Leftists_are_Losers]

I’m planning on legally changing my name to Richard. It may be the only way I can be Rich in retirement…

[@husseinabd6937]

Actually This is the most important part of retirement. Approach it with spiritual richness

[@resourcefulqueen]

This is a way to experience fulfillment. Peace 🕊️ and blessings. 🙋

[@gofigure4920]

When you are rich in Spirit you have everything. 🎉

[@Leftists_are_Losers]

@@gofigure4920 that settles it. When I get to my 60s, I’m changing my name to “ Richard N. Spirit” … so I can be rich in spirit when I retire … Snicker

[@bookmagicroe9553]

Recently I checked the interest rate on one of my credit cards: 29.9% plus $41 if late on a payment. I always pay in full each month, but this interest rate shocked me. That used to be called usury.

[@DrSchor]

i am shocked, shocked that you did not know that when you signed up for the card. that used to be called stupidity

[@Julies-in-a-mood]

@@DrSchoroooh, not necessary.

[@bookmagicroe9553]

@@DrSchor " I've had the card for years. The interest rate was much smaller then. I pay in full each month, so never bothered to check the rate. Try to refrain from judgment and name calling.

[@sidedoor38]

@@bookmagicroe9553Name calling and general bitchiness seems to be this doctors specialty.

[@davepaturno4290]

I don't think this is too uncommon.

[@michaelfortney7510]

Thankfully I’ve learned 3 very important things in life. One is be happy with what you’ve got. Two be happy and excited for others when good things happen to them and tell them your happy for them in person. It’s hugely rewarding for both. And three is no matter how much money you have, live like your living paycheck to paycheck. If you really need something then that’s fine, but often times if you wait and sleep on it you’ll be happier in the long run.

[@DrSchor]

too bad you did not learn a 4th: never trust anyone who can't spell you're

[@MB-uy5kh]

@@DrSchorSpam bot Incel go crawl back to your mom’s basement

[@bigjohnson7415]

​@@DrSchor🤣🤣🤣

[@bigjohnson7415]

It's not getting what you want, it's wanting what you got!

[@dforrest4503]

@@DrSchor I’m going to say that you’re piece of advice isn’t as good as there’s. While good punctuation is nice, its not as important as the valuable ideas stated. - a person who nose how to spell and use grammar but is a pour typist.

[@a.phillips6892]

The plan was to retire at 62 and continue to work part time, and put money into savings. It worked a few months, then the price of EVERYTHING got so ridiculously high, it has messed up my plan severely…😒😒😒

[@lilblackduc7312]

Sometimes, "it's always something"! I've seen this happen to retirees for decades. Stay strong...

[@lynnhensley4326]

Look for items to cut in your budget, ways to live a simpler but a happy life, look for food bargains and free events. Use the public library and get everyday clothes and house hold items at thrift shops.

[@shinelands782]

I love your advice. I paid off my credit cards. I paid off the truck and the car. Then I started saving for my retirement. I have a little cushion. I sold my house and moved to Tennessee. I saved enough money so I can wait till I’m 66 1/2 to start Social Security which will be in May of next year. I love the information you provide. I feel like you’ve helped me a great deal to help me get ready for my retirement.

[@richardc488]

Went out at 61. Wife was mad at me for 25 years I was putting so much in 401K. I kept the bi-weekly constant from the 90's until 2017 when I retired. When I retired I actually had a 50% increase in weekly income from pension and SS than what I brought home. I still save at least $600 a month into savings to pay for taxes and insurance. Life is sweet if you plan when you are young and save.

[@pegmrsh]

My husband and I are lucky in that we both have pensions in addition to our social security. We are able to continue to put money back as well as not having to withdraw from any of our investments until we reach the age requirements where we have to start withdrawing. We started out as newlyweds with absolutely nothing and we haven’t inherited anything from anyone. Very grateful. Our hard work has paid off.

[@BW-kv9wj]

Does Social Security penalize your SS payments because you have a pension?

[@SedA2027]

love the great relaxed look and background!

[@TableForOne2025]

Love being able to work for convenience and not necessity ❤. Thank you for the awesome video!

[@Hawkeye2001]

Getting out of debt early and living below our means put us somewhere between the Financial Freedom & Financial Abundant level. All with less than that six figure income many others think they need.

[@toddfoster828]

That is key. I had a small condo and I paid it off. And I stayed there and I saved. Only then did I move up, paying cash. Here I am today at 59 at a solid level 3. Just live below your means and pay off your debts as soon as you can.

[@noreenn6976]

Love the new background!

[@chadparks9810]

Keep preaching these no-nonsense facts of life! Absolutely Love them, and your straightforward approach without sugar-coating anything! People need to realize that spending everything you make is really, really a continual lapse in judgement throughout your life. My wife and I (now at 53 and 54 respectively) both started saving early, years before our marriage in the late 80's...almost to the point of lunacy over the years, more or less making a game out of it. Not going out with friends, buying generics, shopping at Goodwill or Salvation Army, clipping coupons like crazy, second or third hand cars, garage sale tools and yard equipment, off-season trips, always ordering water if we do go out for dinner and no appetizers...and 10% max on tips...and that's only if they really "earned" them. Neither of us were ever "given" anything in life and knew that hard work and determination was the magic key that everyone can put to use. For many, many years we made it a goal to save/invest at least 50% of our monthly pay. I retired at 45 and she retired at 46 (neither of us ever making more than $70K/yr). Now trying to make it worth our while for all those years of sacrifice. Hang onto your hat though, as this is where the irony in this story comes out, and you'll find this part "nonsensical"....we have a little over $2.6M in savings and investments that we should never have to touch the principal on....YET, we still go to Goodwill/Salvation Army, clip coupons, drink water if we go out, drive secondhand cars, and basically still do all the stuff we did during our earning years, and still make a game out of it...and even still put money into savings every month! I can't imagine ever, ever, ever paying "retail" for goods the rest of our lives....what a waste of money! Get ready, even more irony....we never had kids, and as such, have no grandkids to leave anything to, so trying to identify which nieces or nephews we'll leave anything to. By the way, none of the relatives on either side of our family know we have anything saved or invested and they just think "we're just scraping by monthly"....they just see us as the Aunt and Uncle who live "modestly" in a small home and keep to themselves...but they all know we love them to pieces. And as the experts have always stated over history....."NEVER tell any of your family or friends you have money"....we heard this story continually over the years, so we stuck with that mindset. So to stay in this context, all our relatives think we still have jobs, as we always plan visits around theoretical "vacation time", just so they don't get to wondering "how do they get by without working". Yes, we know, not exactly being straight up with them, but it should "keep fences up where they need to be", as my grandad used to say. Getting on the Savings & Investment train while still young helps immensely while developing those first spending habits. Our grandparents on both sides who had been through the depression as kids themselves, taught us that putting money in a "Passbook Savings Account" (not sure if these even exist anymore) and then only using it for emergency purposes will help keep you happy and safe. We had both started jobs in our early teens (that paid minimum wage at $2.75/hr) and started the savings train early on in life...this was the catalyst in the whole deal, because once you save actual "cash"....this mindset rubs off on just about everything else in life you come across by always thinking about where you can "save money", and you're constantly on the lookout for "deals" and "where you can save"....and those "well-worn jeans, T-Shirts, Jackets...and all other Goodwill & Salvation Army finds" are still the rage around our place! Just a few tidbits of info. on us "unemployed 50+ year olds" here at our homestead...and still saving for that "rainy day".

[@sactopyrshep]

To each his own....

[@SurpriseMeJT]

Nicely done, however at this point I wonder if you are making it a game to see how much money you will have when you die? The issue there is that when you're dead, you won't be able to appreciate what you've done. There also a possibility that giving money to relatives, even if it's after you've passed, that they will take it for granted and waste it all the same. So all that work you did to stay frugal might just be spent frivolously because once it's in their hands, they can do whatever they want with it - not just how you would prefer they spend it. They nieces and nephews might get married, have kids and get a divorce, wasting all that money away.

[@suen5006]

So you should tip more now. There's no reason not to be generous since you have plenty of money. If you don't want to tip then don't go out!

[@darcysalmon7781]

Ditto... great job, and yes, it is fun... Enjoy!!!

[@firehorsewoman414]

Like another poster replied, “to each their own”, and I am in the same age bracket and we followed a similar path of saving for retirement, but with children, so college and weddings etc. as well. I agreed on the overall game plan but for two items. First, live a little or a lot. It sounds like your lives are a little too extreme. You worked hard for those savings, so enjoy it while you are still able to do so. We didn’t have extravagant things, or trips or new cars (total waste of $$), but we still enjoyed life and also have a nest egg that the principal will remain untouched if need be. We also earned in the same neighborhood as you given what you stated. Second, although I despise the tipping culture we have here where employers get away with paying servers less than $3.00 / hr because the server gets tips, it is how they make a living wage. Except apparently not if you are their customers where they can expect less than 10% more often than not since you say “they really have to earn it”. Being stingy with yourself is one thing but shorting others of an accepted amount is just plain wrong. Good for you on no appetizer /drink only water - saves a ton on the bill, but shame on you for shorting your server on their tip. Do them a favor just don’t eat out so they can focus on others.

[@daveclark6324]

Jeff, here is a non-financial question... What happened to the Holy Schmidt animated ink blot intro? It has been missing the past two videos and I don't get to say "Holy Schmidt!" along with it. 🙃

[@HolySchmidt]

Lol. No just on vacation. That will be back next week!

[@lilblackduc7312]

Maybe the replacement ink was coming over on a "Slow Boat From China"?

[@stephencullum8255]

I am in level four by your description . Been retired 7 years. No debt and netting more money than when I retired. That has enable me to work on my bucket list and up my giving.

[@AevnsGrandpa]

I fortunately was able to be employed at a company that still offered a fully funded pension and a good 401k program. So after 35 years, things are in a placed where I can retire well. Now add to that after the passing of my father-in-law, his estate afforded us enough to pay off all our debts and actually pay cash for what will be our retirement house in Florida. So good planning and steady increase plus a huge blessing has us in a good spot. (I actually retire next April and I'm 62)

[@suzanneemerson9787]

Love “I Will Teach You to Be Rich,” by Ramit Sethi. Also love his Netflix movie. Thanks for your channel.

[@paulbrinkman952]

This presentation is golden. TY!

[@pamelahoward543]

Best background you have used. 👍

[@howellwong11]

I'm a simple man. I did not retire until my pension and SS benefits equaled my living expenses. That occurred when I was 68 years old, 23 years ago. It worked for me.

[@bob_frazier]

I think a lot of us retirees transition through a couple of these levels from newly retired to our golden years. For instance I will probably never be as "poor" (on paper) as right now, but I'm plenty comfortable. Later I'll have excess money to do some good for others. It's not a static thing.

[@irenatrulove]

We don’t have a mortgage, husband is now retired and wants to travel. We don’t splurge or anything like that. Inflation has hit hard and we want to relocate while growing his 401k which is minus 2 M atm. I'm cautious than ever with rising costs. What is your opinion? Happy to discuss.

[@PurvisTwiggs]

Travel is a small but important part of that overall puzzle. Start with an annual budget for socializing and travel - $10,000 per year is a figure I picked out of the sky - and see how you get on with that over time. Agree to remain open to further conversations about adjusting that figure upwards or downwards.

[@PurvisTwiggs]

@@marcoerrett I agree marcco. Hiring a financial adviser means having someone look at everything from cash flow to investments and risk management to estate planning and legacy. Fixed income and treasuries may work for you while you try to figure out the next entry point for stocks.

[@irenatrulove]

@@marcoerrett The ones I find are young and I feel may not be experienced working with us. They also tend to charge as much as 1% AUM which I am not comfortable with.

[@PurvisTwiggs]

Yeah, the problem is finding a reputable one, the ones that have passed the exams qualifying them to be financial advisers. Who is this person that guides you? Can I get a number?

[@irenatrulove]

​@@marcoerrett Thats impressive. Currently I have less than 3 million put together after his company allocation, despite the markets new highs we are finding it difficult to grow past the 3 million threshold after the entire portfolio depleted December 2021. We need some of the funds for our kids college and the rest to last us the next 15-20 years. This advisor Loren Lena Walker we will with and find out if her approach favoritizes achieving goals which will be a good bias to us. Thanks a million.

[@chinchorrero]

Great video (I am in my second year of retirement) Always learning and adapting

[@jamesrogers9747]

Definitely a level 3, I think. This is a useful thinking exercise.

[@BW-kv9wj]

The most important thing you can do is own your own home in retirement and have zero debt. The Dave Ramsey method.

[@xlerb2286]

I got a chuckle out of when you were talking about avoiding places selling financial "secrets" the video was interrupted for an ad - by some guy selling a secret options trading strategy. I know you don't choose the ads that run or when they run but the timing and content on that one was perfect. And I agree, those "secrets" are always snake oil.

[@DrSchor]

they are never snake oil... snake oil is for better health, not money

[@jimmyamico4713]

Hi Geoff, You are a GENIUS! JimmyUSAF 🇺🇸✈️

[@Super4speed]

I lived in a cold water flat in Paterson for the first 12 years of life, now I’m living in the 12th house I own

[@transcend3145]

Let me guess you too have a "secret" to sell? 🤣🤣

[@barrybearman3511]

I have taught my kids…. Credit cards are the devil. Avoid them for a happy life.

[@dogsarefun2]

Credit cards are ok if you use them for your benefit.... #1 never charge more than you can pay off every month. #2 Get the highest cashback card, charge everything and get the cash back.. Using card for gas for 3 months and getting 5% CB...Using another card for 2% cash back on everything... Another benefit is some cards extend warranty on purchases for another year after manufactures warranty.

[@DrSchor]

i feel sorry for your kids; you did not teach them how to get rich on other people's money. credit is how generational wealth is created. too bad that won't happen to your family.

[@dogsarefun2]

@@DrSchor FLMAO....DR Dimwit

[@davidroush1224]

@@DrSchor Not necessarily true - being debt free allows more free cash to invest decades earlier, thus seeing the benefits of compound interest faster. We never had debt and retired mid fifties with millions simply working good jobs and agressively saving/investing. We taught our children the same and each had a net worth of about $500k by age 30. Their goal is to also retire early as multimillionaires and are on track to accomplish it. Our family has started the chain of generational wealth with out borrowing money.

[@johnurban7333]

@@dogsarefun2exactly

[@JBoy340a]

Good point about credit cards. We have never carried a credit card balance.

[@DrSchor]

good boy!

[@dschofield7636]

Great background!

[@earlvittitoe758]

I have enjoyed your videos and have found them both informative and reassuring to me as someone that has been retired for 8 years. I consider myself financially literate, and have been successful growing my retirement income every year do to my skills and research efforts. I just finished a "what if" scenario for the expiration of the TCJA legislation at the end of 2025. My results have been shocking. In addition to my personal tax impact (140% increase) in 2026, I also found a profound negative impact to retirees at multiple income levels. With one election cycle left, I think you could do retirees a great service by providing similar analysis in a video.

[@DC-rd6oq]

The "Getting Ahead of Your Bills" tip is a great one. I've never heard it described that way before, but it is probably the biggest reason I was able to retire earlier than planned. I started off by setting aside a small portion (usually around 10%) of my monthly budget. When items that I regularly purchased were on sale at a good discount I purchased them before I needed them. I was then able to set aside a larger portion of my monthly budget because I didn't need to purchase certain items. After that, the account with the additional savings grew pretty rapidly. I'm now retired and continue with this practice. The additional savings don't put me in the Financially Abundant Retirement category, because I'm in my mid 60's and it isn't enough to fund that abundant/extravagant lifestyle for 20-30 years. It is, however, enough to take a couple of extravagant vacations if I wanted to. It also makes me feel very secure because I can use those funds for living expenses rather than drawing from my brokerage account when the market is down.

[@xlerb2286]

People don't realize how much those "little savings" add up. My parents did the same thing, I thought a well stocked pantry was normal (it should be). Our pantry is also well stocked :)

[@DC-rd6oq]

@@xlerb2286 A well stocked pantry is key. It provides piece of mind, the ability to effectively meal plan, and really does save a lot of money. By having what you want/need on-hand you avoid impulse purchases, don't need to buy items when not on sale and never have to go shopping just to pick up a few items you're missing.

[@karenjensen2345]

1. Move to a retirement area thats cheaper than where you are from before you retire, if you can work from home. 2. Have no debt. 3. Have no mortgage 4. Downsize expenses. We were able to go to one car due to walkability of our community and Golf cart ability and 2 bikes. We spend less on gas and less on clothes... I am 59. My goal is to retire at 62. My husband is already retired. We are in the last level you described however, we don't live extravagantly, small house, we spend most of our $ on travel.

[@sherrylewis6932]

1. Stable- 3-6m expenses & ins needs met. Still need some income. 2. Secure- not working. Basic needs met only. Not great, not bad either. 3. Financial freedom- no longer have big expenses to pay for, only regular, daily expenses. 4. Financial abundance- spend more now, bucket list, adventure & plenty. Financial engineering= look at spending & plug leaks in cash flow. Get ahead of bills=pay monthly & still have some cash left. Use to get further ahead. Book 'I will teach you how to get rich'

[@pnkbiankii]

My mom had planned to work until 62, then retire, but I sent back her very first social security check with a copy of the death certificate.

[@wjb111]

Sad. If we only had a crystal ball.

[@fvvfvbbbb]

Sorry for your loss.

[@suen5006]

That's so sad. We never really know how much time we have.

[@danbgt]

There’s really not a “secret”. It just called common sense. In 1997 my wife and I had just sold our small business and my wife had just graduated from nursing school at 45 years old. I had just gone back into the work force in my old career as a draftsman. I was 47 years old and we were approximately $300,000.00 in debt! In 2014, shortly before my 64th birthday, I retired. Not by choice but by circumstance. At that time we were debt free and had a net worth of approximately 1.75 million. You have to pay off ALL your debt first and then not buy stuff you can’t pay for! Save and invest wisely. Get a good financial advisor that knows what they are doing.

[@alexanderlee6509]

Had extensive spine surgery 12 years ago which was only partially successful. Made me realize I would not be physically able to work to full retirement age. Lived well below our means because of that and as a result, am in the third category at 51 years old today. Still nervous about health care and inflation. Recently took on a harder job for less pay so I could brush up on my skills set in hopes of doing part time consulting when I quit full time work in a couple of years. Without my health concerns I would not have saved as much as I have.

[@lesterczocher3576]

I took SS at FRA and worked part time (80%) at my career for 4 years to pay off kids student loans, credit cards, etc. I quit working, sold my house, and now living in a 2BR apartment in an upscale complex. I collect SS and RMD and living well. No worries!

[@billh4285]

Retiring in a few months and will be in the Financial Freedom Retirement category. I make a lot of money but only live on about 1/3 of what I make. I've never been a spender and I see no change in my lifestyle when I retire. The 2/3 that I've been investing will stop but my money will continue to grow since I don't really need it. Being content with little is a blessing.

[@pwu8194]

A few people I know profited from real estate investment. Real estate investment is a rare opportunity that one must grab it when he sees one. It doesn't come often. Real estate is a limited resource. You can build one trillion cars, but you can't increase land available on earth. So, by its nature, its value tends to go up as population increases. So, when you see a good deal on land, buy it.

[@herb7877]

EXCELLENT info. You can eat an elephant if you take it a bite at a time. A little planning 40+ years ago put me somewhere between your last two levels. Sure helps the stress level!

[@kwilliams2239]

We reversed our situation in fifteen years, from maxed credit cards and not exactly out of money by the end of the month but little left. I did have money going into a 401k but could have done more. After getting laid off and selling a home, moving to three jobs and two more houses, we managed to pay off everything, including a too-big house and two newish cars. When I ran the numbers, it turned out that between the income and costs I no longer had, the difference between working and retiring was a couple of thousand a year. That was easily covered by the expenses needed for work. I have enough shirts and jeans to last a lifetime. 😁 We're easily in the third tier of retirement and turned it around in that fifteen years without denying ourselves anything important. It can be done.

[@pensacola321]

I started out life pretty poor. Now I am an "abundance" retiree. It can be done. Nothing brilliant, just keep your eye on the ball.

[@bigjohnson7415]

A "Secret" is living long enough, paying off your house, vehicle's, and everything, work enough years during your "Peak Earnings/Savings" years, and hopefully have your health.

[@bob_frazier]

Absolutely correct.. Well, I work at my health, so more than just hope, you know what I mean.

[@pagosabob10]

If you use a CC, pay if off often and before any interest accrues. CC with interest are one of sure ways to poverty.

[@Adair9800]

Definitely agree with the “engineering” concept. One year prior to retirement, I finally accepted the reality that keeping the second home was not ideal. Fortunately the rise in real estate prices 2 years ago during Covid allowed a better than expected sales price. Thank you Zillow!! One month after exiting the workforce, the home was sold. This dramatically increased the financial margin of safety. Won’t bore you with any details. By the way Geoff, thank you for not using the loud bell.

[@davepaturno4290]

Please keep in mind that Medicare cost is based upon your income, two years prior. I stopped working, two years before age 65 (Medicare age).

[@KathleenMcNe]

I'm very fortunate to be enjoying a financially abundant retirement. I started IRA and non-IRA brokerage accounts in my 20s and always worked full-time-plus, lived frugally, and saved and invested aggressively and consistently. I never earned a spectacular salary or worked for a firm that offered a 401(k) or pension. I retired three years ago at age 63 and have zero debt and a net worth of $13+ million (mostly in stocks and mortgage-free residential and commercial rental properties). It can be done, but one has to start early and make many sacrifices.

[@nikkil764]

So much of retirement planning seems to be really estate planning, what if you don’t have heirs? No kids or grandkids to worry about. We are both the youngest children so our siblings will probably not outlive us. Nieces and nephews are all taken care of by their parents. So then how do we make sure we have everything we need for old age but don’t leave anything behind?

[@jimmyhvy2277]

Four Types of Retirement . 1 . Not Retired 2. Not Retired 3 . Poor Retired 4 . Wealthy Retired .

[@Penny21691]

😂

[@DrSchor]

that is only 2 types

[@johnwietfeldt6238]

We are retired about 7 years and financially comfortable. Before retirement I was the more frugal and didn’t like to spend but now it has flipped. My wife has gone miser just as I am more willing to spend before I expire!

[@pubmeatman]

Finances in retirement is different. I am fortunate to have a nice nest egg and no debt. If I told people my investable NW most people would say that’s a lot. But I generate my income from my investments and it’s not like I can blow money on frivolous stuff. I’ve always lived comfortably but well under my means. That’s a hard habit to break. I did treat myself to a 5k vacation this year and really enjoyed it but that 20k remodeling project I can surely afford I just can’t pull the trigger. BTW I retired at 58.

[@bob_frazier]

Same boat here. I tell myself "Will having my bathroom remodeled really make any difference in my life?" And so we're still kicking that can down the road.

[@1drummer172]

Not sure which level I’m at. I sold my home and cars and hit the road traveling for fun. I really hated having the home and having to deal with upkeep, etc. It gave me no joy. My after tax monthly income exceeds $6k, I have no debt, I have several years of emergency savings, and I’m traveling the world knocking down my bucket list. I sometimes wonder if There’s something else I should be doing financially.

[@garychristison763]

You make me think of the youtube Sailing Uma couple. Their philosophy is that you can have many relatively inexpensive adventures by following the motto, Don't Buy a Couch.

[@Ev3_6]

Why does no one ever mention military pension plus va disability pay? And add social security to that - golden!

[@pensacola321]

And don't forget Tricare. Golden+.

[@Ev3_6]

@@pensacola321 That really does help.

[@alanschaeffer8769]

4 levels: 1. Stable retirement 2. Secure retirement 3. Financially free retirement 4. Financially abundant retirement

[@drumsnbass]

Divorced, early 60’s. In approximately 93rd percentile. Don’t work, live off dividends. Consider myself financially free.

[@Nernst96]

I’m currently retired, and considering the current rollercoaster nature of the stock market, I decided to stay on the sideline for awhile, now I’m worried with the numerous bank failures as of late, am I better off reinvesting my savings in the stock market or do I wait?

[@sherrylewis6932]

Thank you for your videos! If I may give one technical feedback, it would be correct pronunciation of Stephen Covey.'s last name. It's not a long O. It is the 'o' sound as in the words cover, coverage, covenant, covet. Thanks.

[@vinyl1Earthlink]

There is actually a level above abundance. I only know one retiree who has reached it, but it's out there.

[@bob_frazier]

I know of multi-millionaires in their 90's whose biggest worry is how to pass on generational wealth without giving it to the tax man. That kind of wealth?

[@davidroush1224]

There are more than one might expect and living in average homes in low cost of living areas - super savers. My wife's parents were farmers and mine grew up in the great depression. Those humble backgrounds led us both to be focused on becoming financially secure from the time we graduated high school. We chose difficult college majors that would produce solid income, We then saved agrressively and built our home ourselves with cash over a few years. We never had any debt, and by our mid thirties we could bank all of one salary then part of the second. A couple decades of that and we retired at 56/54 and are now enjoying the benefits. We know others in similar situations - saving and investing produced multimillion dollar net worths and retirement income streams of a couple hundred grand a year . The Midwest was a great location to accomplish this with low cost of living and decent jobs available. It also is centrally located and a good home base for international travel - about mid way between HI and Europe. We never plan to leave though we could easily afford to live anywhere - the ability to live normal lives in plain site without sticking out makes staying put a good plan.

[@SeattlePioneer]

I have no criticisms to make of this video. Just sound advice and useful concepts that most people can find useful. Personally: 1. Secure retirement 2 Financially independent, retired early. (age 57) I was a tradesman working for a utility, and later self employed as a repairman. Mainly, I swore off marriage in 1969 at age 19 as being a huge risk of social and financial disaster for men. Aside from that, I wasted very little money, saved and invested money in the stock market and rental real estate.

[@susancook1448]

Sounds lonely though…

[@leticiawhite2747]

Sounds lonely! I can't imagine life without my kids, grandkids, and husband!!

[@SeattlePioneer]

@@leticiawhite2747 For a man, losing his wife, children, home, assets and future income to divorce, child custody and child support is a definite risk any man must consider. My decision was that the risk was greater than the possible satisfactions. I can certainly understand that you needn't consider that, since women are the typical beneficiaries of such laws, while men pay the bills and suffer the consequences. Now, at age 73 ---- BEST DECISION EVER!

[@nikij.6058]

I’m a woman who has supported herself her entire life and other people and need no money from a man! That’s the way I want it…all women are not what you describe is my point.

[@SeattlePioneer]

@@nikij.6058 > Great! You are doing what social norms suggest every man should do, and beyond that lead and support a family. And indeed, you and I are a pair. In 1969, at age 19, I swore off marriage and children after observing the PLAGUE of divorce that was blighting the lives of so many. Now, at age 73..... BEST DECISION EVER! And over the decades, I had quite a bit of experience with single mothers who were failing in being self supporting for themselves and their children. They were often desperate for whatever help I handed out to them to get them out of financial and other troubles. YOU manage to carry off the "I don't need a man" anthem of feminists. But many other women do not, and that goes especially for single mothers, and most of all it goes for the children who lack material support and a father who is an example to sons and daughters on how to live life. How old are you, and do you expect to live a child free life, continuing to live without a man? A lot of women who chanted that mantra seem to change their tune in their late thirties, deciding that they want children after all.

[@williewonka6694]

My secret is 40 years of long work hours, thrift and savings.

[@DrSchor]

you should have learned a better secret

[@williewonka6694]

@@DrSchor Still made it, unlike a large portion of the population.

[@pensacola321]

"When you get to the fork in the road, take it"...Yogi

[@whatsup3270]

Please don't associate me with the FIRE crowd, we called them bums when I was young. FYI- I could actually take home / afford more in retirement than I took home or could afford while working. That was not designed however a lot of us have had career interruptions and heavy family expenses. Thus about age 60 the heavy expenses drop, and the decades of generating high cash flows means we quickly flip from slightly under funded retirement plan to over funded retirement accounts. I hit that right at age 60 so if I were to work until ages 67-70 I will likely be over target by a substantial amount.

[@SeattlePioneer]

[@whatsup3270]

@@SeattlePioneer A typical American worker makes right at $2 million in their lifetime. Their house hold makes about $3.5 million. See the problem? If you want to retire halfway through .....you cant do it in a normal way. If you have 100% of "your" earnings who paid your bills, if you pay your bills there isnt enough money. Thus the bum who lives off mommy until age 40, no wife, no kids......and then frauds a disability claim.

[@davidroush1224]

Bums ? My wife and I planned for this for decades and saved agressively working jobs in stressful 60+ hours a week jobs. On call 24/7 and late career we traveled all across the globe supporting multiple time zones. Nothing like conference calls before work, evenings and occasionally during the night. Once we had several million saved, why work longer and let the job kill us ? After 9 years of a luxurious retirement so far, our net worth is double the day we retired. We could draw double our final salary, but no need so we are now donating more to charity and gifting noney to family members. Now the driver is to avoid the net doubling again and hitting Federal estate limits. Bums indeed.

[@SeattlePioneer]

@@davidroush1224 After ten years of having zero earned income, I compared my net worth in 2007 with what it was in 2017, m to see how much it might have declined after ten years of living off of it. Like you, I discovered that rather than declining, it had doubled.

[@whatsup3270]

@@davidroush1224 how about addressing the FIRE issues, how "early" did you retire? You saved millions, so how quickly? Most FIRE people claimed to have saved millions by age 32, others say age 40.

[@MILGEO]

It's hard to believe that people need to be told of the dangers that carrying credit card dept brings.When I hear video's stating the saving's or net worth for different age groups and find them surprisingly low, I can't help but wonder if they're living the credit card lifestyle! A couple of weeks ago one of the other people working on the job mentioned how several credit card companies were caught charging a higher rate than allowed by law some time ago.This brought up the habit or way of life that some people fall into which is a lose lose situation IMHO. I could tell by looking around that the majority of people there don't pay off there credit cards in full every month! 🥺

[@DrSchor]

i can tell by looking that you cant spell their or debt

[@MILGEO]

@@DrSchor It's hard to be accurate all of the time using a wireless keyboard in a dimly lit room. I should proof read my comments more closely, although I didn't' misspell They're (they are) in this case.not their! I'm surprised that the spell check didn't catch debt! I think this is the 1st time that I've ever received a remark on my spelling. You must have a lot of time on your hands! 🧐

[@Paul-GrnHil]

The first step to planning for your retirement is to take out a 15 year mortgage. First of all it gives you spending discipline to avoid lifestyle creep. That is you learn to maintain a lifestyle with less discretionary spending. Then, once paid off, you have more years to turbocharge your retirement savings because your mortgage is paid when you are in your 50s instead of your 60s. There are many financial advisors that say you shouldn’t prepay a mortgage at say 5% interest when you can get 8% return in the market but I have yet to meet someone who has the discipline to invest every dollar of the mortgage deferred by paying over 30 years.

[@DrSchor]

that is the second step paul, of course the first is to train for a job that pays enough for you to afford a 15 year mortgage, dont you agree

[@Paul-GrnHil]

@@DrSchor good point. My wife and I are accountants. When we bought our home the interest rates were 10% and a 4 bedroom colonial cost $205,000. The discount on a 15 year vs 30 years was 1/2 percent. Since interest was such a big part of the monthly payment, the difference in a 15 yr vs 30 yr wasn’t huge.

[@ellenk9604]

At age 67, I need to work, at least part time. I started SS at 62. I've been working part time, but am looking at getting a full time job for a few years. Will that increase my SS payment eventually? it's only going to be about $16/hour. Thanks for any input.

[@dmang0]

I will become a monk.

[@transcend3145]

01:07 I ask the same question!!! 😁 Recruiting to the ponzi scheme! Welcome to the american economy at large! Or maybe they just want to share wealth out of the pure joy & greatness of their hearts! 😁

[@Chasing72]

The secret is “you send me your money and I’ll be rich, not you…” 😂

[@gmale6556]

At the beach, I see.

[@mimisugarmilllink2530]

Is that anyway to convert 401k to Roth IRA, paying the income tax. Any limit per year？thanks in advance.

[@beautyRest1]

It’s all about money, money ,money! The most important thing is your health! Draw early, enjoy your life while you still able too. Freedom from work is wonderful! Tomorrow is not guaranteed! I took SS at age 63 , and never looked back. I have no debt, my condo is paid off. I don’t have a lot of money, and my 401k has not even $140.000 in it, but I don’t need it right now. Why would anybody work until the age of 70, unless YOU LOVE YOUR JOB,!

[@DrSchor]

i am very worried about you. you dont have to work to 70 to get the larger check for life. did you screw this up?

[@beautyRest1]

@@DrSchor the only thing that’s screwed up IS YOU!!

[@mikeeastman4009]

How do you factor SS and military pension monthly payments in net worth calculations?

[@djscra89]

i take the monthly amount you receive and see how much an annuity would cost to buy that benefit. This will give you a dollar amount you can list in your net worth calculations. For instance a 2000.00 per month annuity would cost about 432000.00 for us.

[@mikeeastman4009]

Thanks. It is an approach that I hadn't considered.

[@miketracy9256]

ANYONE CAN RETIRE WITH FINANCIAL SECURITY IF THEY INVEST 10% OF THEIR INCOME FROM AGE 18 TO AGE 78 AND DELAY TAKING SOCIAL SECURITY UNTIL AGE 70. 10% OF TODAY'S MEDIAN 50k/YEARS IS 5K/YEAR AND INTO A ROTH IRA FOR 60 YEARS WILL GIVE YOU WELL OVER 50K IN TAX-FREE INCOME/YEAR FOR 30 YEARS.

[@AntonioBianh]

Retiring in 20 years? Due to inflation, you may need upwards of $2.6 million to maintain your existing lifestyle, with the ongoing effects of high inflation, lower forecasted stock market returns, and stagnant wages, achieving a secure early retirement could be more challenging than ever before.

[@MarkFreeman-xi3rk]

I suggest you offset your real estate and get into stocks, A recession as bad as it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advice but get buying, cash isn’t king at all in this time!

[@AntonioBianh]

@@MarkFreeman-xi3rk I agree. I have pulled in more than $435k since 2020 through my advisor. It pays off more in the long run to just pick quality stocks and ride with those stocks.

[@cythiahan8455]

@@AntonioBianh Mind if I ask you recommend this particular professional you use their service? i have quite a lot of marketing problems.

[@AntonioBianh]

“Laurel Dell Sroufe” is the coach that guides me, She has years of financial market experience, you can use something else but for me her strategy works hence my result. She provides entry and exit point for the securities I focus on.

[@cythiahan8455]

​@@AntonioBianh thanks for sharing, After locating her, I composed an email and arranged a phone conversation. I'm optimistic that she will reply, and my go

[@memelc5655]

I have a fear of poverty. I’ll always work somewhere

[@SeattlePioneer]

Perhaps you should consider therapy to free yourself from burdensome and unreasonable fears. A fear of poverty is certainly reasonable. But if you are financially independent, with ample resources to live out your life without paid employment that fear may be unreasonable and burdensome, preventing you from making good choices in life.

[@bookmark692]

I've got all the money I need, providing I die tomorrow

[@Donkeyearsa]

I don't know if I'm different. If I wanted to I could retire now and spend as little as $1,500 a month. But I know that I will become bored out of my skull so I have no real desire to quit my job. I dont actually like the people i work with but I like what i do and the benafits the job offers are really good. I right now spend around $4,000 a month with $1,500+ helping a friend who is 12 years older than me who is of retirment age who basically deserves where he is by making really bad choices in life. I like hanging out with him and it's not like supporting him is really hurting my finances and since being gay having a wife and children don't exactly works since you know guys can't get pregnant and as such I have no one to inherite when I die. The agreement between us is when he dies I inherite his house which I'm paying a good part of the mortgage and other expenses. My actual monthly budget is $6,000 which is quite sustainable as I still work dispite that I'm quite well off as I inherited my parents estate which was enough to let me retire somewhat comfortably.

[@SeattlePioneer]

Nothing wrong with working if that's what you want to do. > Interesting plan for your life and finances. I hope you have taken steps to legally protect this plan from being changed unilaterally by your friend.

[@cavandavidson1185]

Do retired people really have credit card debt? Jeez.

[@CheckThisOut77]

The hand movements are a bit distracting. Nevertheless, good comments.

[@davehope9144]

Funny when I was told to invest early for retirement nobody factored in a World wide pandemic and the biggest war in Europe since WWII. Go figure.

[@Stonescreamery]

My portfoliio of $750k is down to $492k, How can I profit from the present market" , I mean I've heard of people making upto $250k in couple weeks during this crash and I'd like to know how.

[@kellyyork3898]

Find a job that still has a pension.

[@davidroush1224]

Yes indeed - they are still out there inspite of what many think. Particularly common in government jobs now.

[@georgezahorcak7764]

Are you at the shore again?

[@HolySchmidt]

I am!

[@davidroush1224]

@@HolySchmidt Which shore ? We are heading back to Maui in December and taking our adult children. We like to spend a month or so snorkeling there (Airport beach our favorites spot) but haven't been there for a few years due to Covid. Now we are are traveling again - next month we will spend 10 days hiking in Utah - Bryce canyon and other beautiful nearby parks. Hopefully Italy again next spring - Florence is our favorite there. Good to be getting back out while we still have the health and ability as time slips by quickly and at some point we won't want or be abe to do this. I still need to finish one last car restoration project (XKE) but too busy doing other fun things, projects with friends (building a log cabin with one buddy now) and volunteering. I've always said a happy retiree says they don't know how they ever had time to work - my dad said that and now my turn and glad I also fit that description. After decades of being supersavers we hit your mentioned top level in retirement and retired at 54/56. We successfully switched to spending mode, yet still our net worth has doubled in the 9 years of retirement so far. Always looking for a new/good ocean view to try out. Enjoy your time on the shore !

[@davidchicoine9209]

Hot tip: marry a traditionally minded ethnic Chinese.

[@ralphnabozny8494]

DONT believe it

[@johnfloryan8535]

Your hand movements are very distracting.

[@owenpeller6471]

everything you say is true but it's pretty worthless for anyone other than the unsophisticated