Your retirement plan is WRONG. 4 ways it will fail. How to fix it. What do I do?

A perfect retirement plan is a myth. What is needed is a great process. What do I do? Examples. Can I retire now? Retirement Planning. How much can I spend?
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PLEASE STOP USING Spreadsheets! It falls way short optimizing every retirement factor
Retirement Tool Link I reference and highly recommend -- New Retirement. Free 2 week trial. $120/yr after. You will buy this after trying (I have purchased for 3 years).
www.newretirem...
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DO NOT GO IT ALONE!!!!!!!
Money Pickle - FREE! use link to set up a FREE 45 minute dialog with a Financial Advisor
No obligation. Get answers to your questions. Get an expert to look at your plan.
moneypickle.com...
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Need help from a CFP to create your retirement plan for a one time fee? My Recommendation: Neil Fortwendel 812 471 2492. Neil created my plan. Plan updates as you wish (1, 2, 5 years) for a smaller fee. Check Neil out on Facebook and LinkedIn.
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RECOMMENDED FINANCIAL ADVISOR - Assets under Management or one time plan creation
Neil Fortwendel with Northwestern Mutual ph: 812 471 2492
Video by Lean Driven Reliability LLC
This is not investment advice. For entertainment ONLY. Seek professional help to understand your unique situation.
#retirement #retirementplanning #retireearly #retireearlyandtravel #financialfreedom #financialindependence #retirementincome #retirementstrategy #findingpurpose #keto #ketodiet #ketovore #hiit #hiitworkout #healthylifestyle #howmuchcanIspend

[@joekuhnlovesretirement]

*_PLEASE STOP USING Spreadsheets!_** It falls way short optimizing every retirement factor* Retirement Tool Link I reference and highly recommend -- New Retirement. Free 2 week trial. $120/yr after. You will buy this after trying (I have purchased for 3 years). www.newretirement.com/?nr_product=NRC&nr_a=35&nr_medium=affiliate& -------------------------------------------------------------------- Need a CFP to create your retirement plan for a one time fee? My Recommendation: Neil Fortwendel [phone]. Neil created my plan. Plan updates as you wish for a smaller fee. Check Neil out on Facebook and LinkedIn. ---------------------------------------------------------------------- *DO NOT GO IT ALONE!!!!!!!* *Money Pickle - FREE! use link to set up a FREE 45 minute dialog with a Financial Advisor* No obligation. Get answers to your questions. Get an expert to look at your plan. moneypickle.com/joekuhn

[@user-eg2sj8lw1p]

My husband and I were fortunate enough to be able to pay off our mortgage early. We were both still working, and took the payment amount that we had been using to pay off our mortgage faster and we put it straight into investments. We were able to retire early because of almost 7 years of putting away what would have been our mortgage payment as well as maxing out our 401K/403B plans. Thankfully we were taught by both of our parents the value of living within our means. Thank you for your advice. I know it will help people. we are interested in investments that could set me up for retirement , I mean I've heard of people that netted hundreds of thousands during these crash, I listened to someone on a podcast who earned over $650K in less than a year, what's the strategy behind such returns?

[@CharlesEvans-fj6gl]

Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.

[@LoveFrank-cp7tv]

Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.

[@LoseMike-og9in]

How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.

[@LoveFrank-cp7tv]

Leicia Zavala Perkins is the licensed advisor I use.Just research the name. You'd find necessary details to work with to set up an appointment

[@user-ko1xu4ow4w]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@Ken-Nelson]

I am in a fortunate retirement situation but, I wouldn't have believed it without New Retirement - it is amazing how much I could catastrophize. Your comments about "confidence to spend" can also apply to "confidence to donate/give". We have started 529s for the grandkids with this confidence and we "shop" for charities. Seeing the impact and joy now means so much more

[@joekuhnlovesretirement]

Wonderful!

[@CrabbyE8]

What did Eisenhower say? Plans are useless, but planning is everything. (Or something along those lines.) The idea is that following a plan isn’t the same as situational awareness, the ability to assess what’s going on, the ability to make decisions, and the ability to communicate and/or adapt. He who can adapt, assess and process new information, and decide survives. It’s the decision-cycle. 😊

[@jeffb.2469]

Spot on. You adapt and change your plan and expenses due to economic conditions.

[@cduff4505]

Great review Joe! I’ve been using NR and love it for modeling. I’ve spent hours playing with my numbers. Going back in and changing a few numbers. Adding part time work to various ages, etc.. Doing this has allowed me to model a retirement that gives me peace. I have found that I can retire at 54. Take off 3-4 years in a mini retirement and then pick up a PT job at around $2k a month. This will allow me time for me to focus on my health and creativity and time to find a new passion (or two)! My NR score is right around 87. When markets go down or up, I can cut or add expenses. I was a horrible student and barley graduated back in the day, but have been successful since then. If I can be successful at life having only gotten a C- during my school years, a NR score of 87 let's me know l’ll be fine in retirement. Worse case scenario, I die with next to nothing and a house I can sell it I need long term care. I know I want some type of work after I retire to keep my mind and soul active but I’ve purposely kept the PT work numbers low so there is not the pressure to step back into something I don’t want to do. The biggest thing I’ve gotten from NR is peace of mind and the knowledge that pivoting and making changes throughout my retirement is needed. That it’s not a set plan, but ones that moves fluently through the years. I really want to take the time to say thank you for the time and effort you’ve taken to post your videos, it’s given me the courage to retire sooner then I ever thought I could. I can now focus on living the life I want to live! I’m terrified but so much more comfortable knowing I can do it!

[@joekuhnlovesretirement]

I love this. Thanks for commenting and letting others learn from you.

[@genglandoh]

Great video. I was a process control engineer (just retired 5/21/24) I would always stress test my projects just to make sure it would work under all conditions. So I love the way to do the same with your plan. I have done the same with my plan using New Retirement.

[@joekuhnlovesretirement]

Thanks for sharing

[@AskSabado]

The levers are the key. It took me some time to get comfortable with the idea of retirement. When my FA laid out the levers in relation to our expenses, it was game on! I retired at 51 and haven’t looked back.

[@joekuhnlovesretirement]

2 corrections: NR is my "Retirement Plan" not my "Tax Plan". Also, if this primary spouse dies early (75) the second spouse loses 50% of the primary's pension. Sorry for these errors.

[@MikeReisender]

Thanks, Joe, great tutorial. Regarding inflation estimates, I've had two CFPs tell me to model it around 2.8% to 3%, slightly above the fed target. The assumption is that the fed will always be acting to maintain inflation at target. Modeling slightly higher than the fed target is appropriate, because it may take some time for to achieve the goal. This applies to everything but medical, which they said to model at 5%. Does NR allow setting specific inflation rates, or a different rate for specific expense items such as medical?

[@joekuhnlovesretirement]

you enter whatever rate you want for general, medical and housing -- 3 different numbers.

[@Mitzi73]

Please do more videos screen sharing with New Retirement. Very helpful.

[@acornsucks2111]

I've read that those who have a significant amount for retirement, will still have 80% of that when they die.

[@randolphh8005]

Yep, underspending is extremely common.

[@hanwagu9967]

@@randolphh8005 probably because they try to convince themselves or have software or FAs convince them they need higher than 50% chance of success.

[@clbcl5]

The perfect retirement plan is always something the other guy has when your does not work. My perfect plan works for me cause I don't know any better. I think I have the perfect car for my driving needs, until I don't.

[@joekuhnlovesretirement]

Wise

[@janethunt4037]

Great example to see how you work through things.

[@djscra89]

Another great video,Joe. I am on my 2nd year of new retirement (thanks to your recommendation). The software has made my retirement so much better. I thought we had a good plan, but using this opened my options and made me see the stuff I totally missed in making our plan. Thanks for the info.

[@joekuhnlovesretirement]

That is awesome!

[@randolphh8005]

A legit Monte Carlo of 95% is leaving lots of spending on the table! Plans also fail if you don’t spend enough! Joe’s advice is very good, but he is extremely conservative. A Monte Carlo analysis is dependent on input data and parameters. It is not fool proof. With proper parameters, it will give you good information. However, it assumes you don’t adjust your spending should things not go well. Most people should review their plan yearly, and then adjust if truly necessary, in either direction. A flexible plan rarely fails. The goal is to spend as much as possible and run out of money on the day you die!

[@hanwagu9967]

correct, 95% chance of success doesn't mean what people are led to think it means. It means you have 95% chance of underspending, 95% chance of not spending to live your fullest retirement, and 95% chance you will be leaving a pile of cash for beneficiaries and the government.

[@geekyprojects1353]

I'd love to see that process on your whiteboard. That would be great for ppl from outside the US who can't use NR and are forced into excel.

[@DrBilly90210]

Another nice video, JK; thanks for making! I use NR and after putting in my data, I also began "pulling the levers and pushing the buttons" to see how my plan failed. Has been interesting, and has also pointed out some categories where I might have estimated expenses incorrectly. I'd caution anyone that if the only way to make your retirement plan work for you is to increase the ROI of your assets, you might be in for an unpleasant surprise; really, the only thing you can control in your financial life is expenses. Even then, you probably have less control of your expenses than you think (e.g. medical issues, storm damage to property, etc.). IMO, forecasting my finances beyond a few years is hocus-pocus; just look at how possible outcomes in NR spread out so widely when you get 20-30 years out. For example, my life expectancy in NR is 92 and by that point, my assets could be 3/4 of what they are now or 15x what I have now. At first, after I'd put in my data into NR, I got a % success of 99% which was gratifying in the moment, but when I thought about it some more, it opened my mind to the possibility that I might be forgoing some opportunities & experiences. It's helped me have "confidence to spend", though I'll admit since I'm still working and haven't had to face a punishing bear market while retired, my "confidence" hasn't been tested in real world situations. My comfort zone now for % success is somewhere in the 85-95% range, which still gives me plenty of "go-go" and "crazy" spending (yes, I actually do have those categories in NR, LOL).

[@uf1978]

What's your number for retirement, most popular question. My response is always the same, I have no magical number, I will make do with what I have. Out of debt first and foremost and the rest will work.

[@DrBilly90210]

When I'm asked "What's your number?" regarding retirement, my answer is "Zero debt."

[@kennyhart2699]

Great video Joe, looking forward to more to more roth conversion videos when you decide to do them

[@Gadgets-Universe-]

I found your breakdown of retirement levers very helpful! A quick suggestion - the thumbnail could benefit from including some text highlighting key takeaways, like 'Social Security Timing' or 'Living Longer Risks'. Looking forward to your future content!

[@DionTalkFinancialFreedom]

I really love your logical approach. Thank you.

[@probuilder961]

Perfection is usually only observed in hindsight, if at all.

[@alexsteven.m6414]

Really enjoyed this video. I'm considering your advice, because thousands of dollars have been disappearing from my 401k due to soaring inflation, and my concern is where to safeguard and grow remaining cash about $500k+ for the next 2-3 years at no risk. I'd love to retire early and afford a life after retirement.

[@jeffb.2469]

Common Sense. When the markets go South and your account balance drops, you cut back and don't spend as much. No software program required.

[@ShamaParveen-up2vc]

You mentioned that one of the levers to improve your retirement plan is to adjust the timing of Social Security. Can you elaborate on other factors to consider when deciding the optimal time to take Social Security?

[@productsyouneedtobuy8093]

This video on retirement planning is exactly what I was looking for! One question - you mentioned healthcare costs as a factor. Could you elaborate on specific strategies to manage healthcare costs in retirement? Btw improve thumbnail

[@Lolatyou332]

I'm 31, hoping I will be able to retire close to 53-55. Should have close to 2-3M inflation adjusted assuming everything goes to plan, with 2m of it in a brokerage. Just worried about not having as a significant SS benefit since I'd be missing a few years of working years if I continued working until my 60s. Depends on if my hobbies end up being profitable at that time.

[@PJ69-xr6qr]

Joe, great video. Can you explain. bow New Retirement can account for a “stretch” beneficiary IRA where distributions come out every year prior to a RMD age.

[@resterAnonyme]

The information you put out is great! The one thing I don’t recall if you ever talked about it moving overseas and the cost of living. Of course not everyone would be willing to move overseas but for those that are you can go to numbeo and compare your city to a different city around the world. You can get a nice bang for your buck in many locations. My wife is from Tokyo and we are considering moving there. About 2-years ago the exchange rate plummeted and inflation in Japan had been next to nothing for the past 30-years making it a relatively cheap place to live.

[@joekuhnlovesretirement]

I only share my experience

[@NameWithheld-nm1es]

You are married to a citizen; therefore, you are able to move there. That is not the case for the average US citizen. While geoarbitrage is available in some countries, it is not necessarily a simple accomplishment. Those videos are best done by someone who has been successful at relocating to a foreign country and becoming an expat. There are a few good KZbinrs doing that out there.

[@resterAnonyme]

@@NameWithheld-nm1es It has nothing to do with my specific case, most Americans can do this and is not isolated to those married to foreign nationals. My point is Americans can move to different countries regardless if they are married or not , married to a citizen of that country or not or they can perpetually travel on 90 day visas at a much lower cost then living in the US. Joe's point he keeps making in a lot of his video's is confidence to spend which is quite valid. Moving oversea and using geoarbitrage to offset costs in retirement can help many in retirement get passed the high cost of living in the US.

[@MohsinRaza-fm9ut]

In the video, you showcase how life expectancy can negatively impact your retirement plan. Can you share specific strategies viewers can implement to mitigate the risk of living longer than expected?

[@kenschneider7786]

Where did you get that invisible microphone. LOL

[@vegasstang1]

Ok Joe. You talked me into New Retirement! Just purchased a year. Did you transfer your accounts manually or use their Plaid method? Thanks!

[@joekuhnlovesretirement]

Manual

[@emoore99]

Joe, why does your version of New Retirement seem to have more options on the left side menu than mine? Based on your recommendation, I think I bought the full version but I don't have a lot of those options (ie. Lifetime Income among others)???

[@emoore99]

Never mind. I see it expands as you click down on options. Thanks for recommending this service. It's excellent!

[@joekuhnlovesretirement]

you beat me to the answer.

[@asage5801]

LOL…Joe hooking ‘em with the click bait…then they learn sumthin

[@popovdes5576]

I work on my retire plan and realise that there may be some risk of running out of money because of any unexpected things happens. After I consider Die with Zero and probably sell or downsize my house, everything solved. Do you support the concept of Die with Zeto?

[@joekuhnlovesretirement]

Mostly. I still can’t just blow money flying first class for example

[@jayholiday256]

Which New Retirement product are you using? Planner Plus?

[@joekuhnlovesretirement]

Yes

[@hpanju4411]

Hello, is there a Canadian equivalent to New Retirement ?

[@joekuhnlovesretirement]

No but I’m looking

[@hpanju4411]

@@joekuhnlovesretirement Thanks.

[@Northern_Squirrel]

Is there a Canadian version of the software available? Thanks

[@joekuhnlovesretirement]

Sorry. No. I have been looking.

[@benbobbitt5396]

Wait.. in your spending example you had $1500 in your ‘go-go’ years…. Isn’t that a mistake? Isn’t that supposed to be MORE than your pre-retirement spending? It isn’t adding to your spending its the total (ex-healthcare,mortgage P&I, rent)?

[@benbobbitt5396]

Ok it looks like you are using it differently than I do. You have a baseline living expenses for now until death and then you ADD more in these other periods. But doesn’t that make it harder to model spending reductions? If you spend less in the slow -go than you spend pre-retirement? I use separate periods independently, not adding onto a baseline number.

[@joekuhnlovesretirement]

Check the dates. Base spending is lifetime while go go is adding to this.

[@M22Research]

No such thing as a “perfect retirement plan?” We believe we’re pretty darned close. That doesn’t mean we cannot benefit from optimizing it for our heirs using the New Retirement tool, but we’re pretty content with a 99% Monte Carlo rating, using conservative assumptions. The basis is having a Social Security benefit + a modest, but material pension (actually converted to an annuity with Prudential, so no potential knee-capping by PBGC if my company goes belly up) that covers 170-200% of our base living expenses, depending on how long we delay SS, backed up with a sizable retirement account that alone would support our spending with a modest 4% w/d rate, and a cash/near cash bucket covering 3 years of spending (independent of SS+pension). And it tests out should either of us die early (lose one SS benefit and pension stays at 100% or goes to 50%). This was actually the threshold we waited for to start pulling the trigger for our phased in retirement. So if there is a fault - it was being too conservative. Deciding to spend on discretionary stuff will be a challenge.

[@M22Research]

Would love to find a highly qualified flat or hourly fee advisor who is both experienced and young enough (not retiring in ten years!) look over the shoulder of my spouse should I die first. Seems like the really sharp ones are AUM fee structure. We have zero interest in handing our assets over to a fiduciary investment firm. Investing is not complex so there’s no need to do that. When will smart Retirement Planners pick up on the fallacy that they must hold your assets to provide their service? It’s an old school legacy of “investment advisors”, not true “retirement planning”.

[@joekuhnlovesretirement]

I see this comment 5 times a week. Good news. I have convinced my financial advisor to offer a flat fee retirement plan. It took me a few months. We worked together on rates/offerings. I will be making videos with him in the coming weeks. Neil Fortwendel. Phone: [phone]. Tell him Joe sent you. He is 45 yo. Check him out on Facebook and LinkedIn. Great family man and great CFP. I use him.

[@M22Research]

@@joekuhnlovesretirement thanks, will watch for that content. The great thing about KZbin content from Financial Planners and firms - you get a pretty good sense about how good of a match they might be for you. I”m picky. I’ve experienced the under qualified and have no clue they’re under qualified planners… and the big bank captive firm 1% teams (our mother’s). Wow, the number of otherwise smart people who blindly dump their money into these big bank firms should be an embarrassment for those big bank firms. With our extremely simple portfolio, similar size and risk profile, I’ve been beating the big bank team returns in both up and down markets, sometimes by 2-4%. And they barely know (the bank added the tool a little over a year ago) what a Monte Carlo simulation is. They know what they’re doing. Truly a ripoff. Interesting perhaps it exists, but I have not seen a thorough takedown of the methods those big bank captive investment firms use. They are so stuck in the “Investment Advisor” past.

[@BillonBass]

$10k a month for life and several million in assets and zero debt as I live retired at the beach in Thailand with my beautiful 32 year old Thai wife of 13 years and newborn daughter! Where did I go wrong? 😂

[@christinab9133]

❤❤❤

[@johngarceau541]

👍

[@emt52889]

Repost

[@joekuhnlovesretirement]

No.

[@401KDexters]

Joe, No need for the click-bait titles. People will watch your content because they trust you. Raise the bar, buddy, your channel is better than that. Just be Joe, as you say.

[@janitoronfire]

I didn’t take it as Clickbait. I may have if it was another KZbinr, but I know he’s solid as a rock.

[@NameWithheld-nm1es]

I hear what you are saying; however, I agree with @janitoronfire. Title isn't really clickbait. He is just showing you that you might want to take a different approach in order to increase the odds of success. Besides, any title that draws people in should be marketed to those who have NOT watched his videos, not the viewers who already know what he has to offer! But I do like your praise of his excellent content! I am certainly in agreement with that!

[@MohsinRaza-fm9ut]

In the video, you showcase how life expectancy can negatively impact your retirement plan. Can you share specific strategies viewers can implement to mitigate the risk of living longer than expected?

[@simonc4234]

👍