You Don’t Need to Be a Millionaire to Retire

This video tackles the big question: Is $1 million enough to retire on? We'll break down how long $1 million will last and discuss how much you really need to save for retirement.
CNBC released an article where they go through an analysis done by gobankingrates to determine how many years $1,000,000 would last in each state. I was a little surprised by the results so I did a little more digging. What I discovered is that they were leaving a lot of factors out of their calculation which would drastically change the results. So I decided to run the numbers on my end, in a more realistic way, to determine how long $1 million would last.
Whether you're close to retirement or just starting to save, this video will show you how I'd think through figuring out if you will have enough money to last in retirement.
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Original article from CNBC: www.cnbc.com/2024/01/01/how-l...
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Disclaimer: This video is for entertainment purposes only. Everyone's situation is different so do your own research before making any decisions with your money.

[@stargrrl__]

thanks for all your hard work jarrad!!

[@punisher6659]

Great content as always.

[@anantsharma8882]

Superb content as always Jarrad.Always wait for your videos.Lots of respect from India brother!!

[@JarradMorrow]

Thanks a ton!

[@jacobswain6448]

I've been super happy with M1 Finance after watching your walkthroughs/demos with it. I'm definitely interested in New Retirement, any plans to put a video out looking at how to use it/what it does specifically? (do you already have one?)

[@RajReviewsDualSportPhotoGadget]

Hi, Jarrad: Thank you for your videos. Any chance that you might consider producing a video specifically for people who have just retired, or are about to retire within a year, and what their funds and allocation should look like? Thank you.

[@nintendoplays584]

1M should be enough but it still has to 'work' can't just have 1M in cash in a box and spend it lol perfectly explained video ❤

[@michaelandujar8109]

Thank you another good video. What were your base annual % return you were basing it off? 7%-10%?

[@JarradMorrow]

7% for the average, 5% pessimistic, and 9% optimistic. Those returns were of course before inflation since that was accounted for in the expenses.

[@michaelandujar8109]

@@JarradMorrow ok great thank you!!! 😃

[@Jepi369]

Bro, it’s stupidity to retire in America. If you go to Thailand, it can last forever.

[@davidmay2294]

Thats similar to what my plan is. Live on work retirement acct for roughly 20 years while continuing to build roth ira. Since roth ira dont have RMDs they are a great back up plan and can grow very nicely that last 20 years.

[@ffnovice7]

Is your 401 equivalent matching only into traditional? My tsp matches my 5% Roth, which itself will not have RMD, but my match goes into my Traditional TSP which needs to be disbursed, in either two scenarios for me: A) ~90 days after separation from public service, when I'll have near zero annual income that year; I can withdraw traditional tsp, transfer to trad IRA, then convert to Roth IRA. Not sure how low I will limit the contribution. B) As emergency usage for a life saving, private medical bill that can't just be thrown into collections purgatory (I have about 7 grand of medical bills that my PI attorney is letting fester in collections - they don't respond to me often) C) I'm so blinded by love, I absolutely need a 10 grand first time home loan through my tsp D) I retire early and repeat (A) E) I choose to keep working well past RMD (75yo) and will need to include RMD into my annual salary (oh noes worst thing ever XD

[@tankberserkererer]

This isn’t relevant to the video but your hair is looking good this vid 🙂

[@grantzwingelberg8752]

How should teachers and other state employees with pensions invest for max wealth?

[@ffnovice7]

1) employer's 401(§k)||403 match (I'm govt so my TSP matches 5%; my contribution is Roth - the match goes into traditional) 2) HSA Yearly max contribution (4,150) MINUS 12*monthly contributions by your HDHP (mine is 100/mo thus I contributed 2,950 pre-tax - I actually put 2948 exactly to give myself a bit of wiggle room) 3) Roth IRA (if you're making too much where traditional is better, or needing to backdoor your Roth, you wouldn't need advice from a bunch of text on a computer screen). You can lump sum invest all at once with your post-tax money in your bank account. 4) Roth 401/403 again. Rule of thumb consensus as of the 21st century is 15%; if you're a baller who lives on the edge, or likes to think of himself as one, hit the max 23,000 MINUS .05*salary (or whatever your match percentage is). I'm putting 2 kilodollars per pay period into my Roth TSP early in the year and netting a pay of 166 dollars, about 1/12th a grand -I'm living off my emergency fund for fun

[@rickstephan6707]

"...in this world nothing can be said to be certain, except death and taxes." - Benny Franklin (he left out inflation).

[@seandelaney1700]

The government introduced inflation much later. Inflation is created by man, specifically he who benefits.

[@tylersucher8653]

What sucks tho is most ppl won’t even get to a million dollars, so that’s the problem. Love the incite and the videos, but this video is probably more for the small percentage of ppl that can achieve this.

[@kckuc310]

1 million don’t stop there

[@danieldeweerd6752]

If the argument is that it costs the government money to not tax someone on their property then they aren't to be taken seriously for the rest of their argument. But they also don't want the simplest fix, which would be to allow people to invest their 6.2% of FICA tax into a retirement account and forgo half of the SS payout. It's a greater return for retirees and a lower expense for the government. It's the closest thing to a no-lose proposition.

[@joe62845]

Inflation makes me wonder if 1 mill is even enough for someone to retire in the future. Especially if inflation keeps going up the way it has.

[@Username_CC_]

Average rate is 3% just do the math

[@alex182618]

It depends on who you are married to. To spend one mil in 20 years you need to spend 4166 per month without getting any social security or investment income. That is a ridiculous assumption.

[@johnny_blades]

Reality, not counting for inflation...$1,000,000 would last 25 years at a 4% withdrawal rate with no investment at all. 65-90 years old! Making money by investing during retirement is just icing on the cake. 🙂

[@ajrobbins368]

I wish we could just overlook inflation. If only! 1994-2019 (avoiding pandemic inflation) ended the period with prices (inflation) 72% higher. What started at a cost of $40,000 eventually cost $69,000. Not to mention healthcare expenses increase with age. Ignoring inflation is a recipe for disaster.

[@johnny_blades]

@@ajrobbins368 ...depends on the situation. SS increases with inflation and if you're poor on paper (no earned income) with zero debt, you will be fine. This is where Roths and cash play a vital role in a retirement scenario. This applies to healthcare as well. Good luck to you!

[@TheBigShort11]

One million owns a 20 years old today, one million is nothing

[@mattball2700]

Taxes are not 'screwing us over.' Taxes allow us to live in a civilized society, with roads and infrastructure and a social safety net and fundamental research and defense, etc.

[@JarradMorrow]

That part of my comment was intended to be taken as tongue in cheek just like my comment about midwesterners all drinking hose water and shoveling snow. Obviously, some of our tax dollars are put to good use. Don't take everything so literally. It's okay to joke around every now and again so lighten up a little bit when you watch my videos (or don't watch my videos to begin with)

[@OnePermutation]

34 trillion in debt, sending 100's of billions of dollars that we can't afford to other countries, hardly spending anything on our own border, spending billions on illegals here in our own country, not to mention all the general wasteful spending. We are definitely getting screwed over.

[@rickstephan6707]

@@JarradMorrow and the "...closet psychopaths..." comment as well? (It's rhetorical)

[@SpicyBoba7431]

In theory yes, but we are overspending and overtaxing on things that don’t matter. If you did some research on how your taxes were being spend I’m sure you’d be livid

[@RBzee112]

​@@SpicyBoba7431taxes are at a historic low.

[@miamivicefanatic9736]

I would try to become Bill's friend.