5 Uncomfortable Retirement Truths You Need To Hear
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- Äas pĆidĂĄn 10. 06. 2024
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đČ NEED FINANCIAL ADVICE? đČ
1) Google "fee-only financial adviser" or visit www.NAPFA.org (largest association of fee-only financial advisers). NOT an affiliate link
2) The first question to ask any financial adviser is, "Are you a fiduciary to me 100% of the time". Get the answer in writing
3) Please note that some people call themselves "fee-based". This is NOT the same as fee-only. Fee-only advisers have committed to being fiduciary to you 100% of the time.
4) Personally, I would only hire an adviser who is a fiduciary to me 100% of the time. This is not a suggestion on what you should do. Just sharing my personal preference.
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Be careful of scammers. In the comments section, I will NEVER ask you to contact me, offer any investment products, recommend a stock broker, or anything similar. Some scam bot commenters 'ask' for investment help, and later, other comment bots reply with "how great X idea/investment/person is" in the replies. These are scam threads. Do not fall for them.
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This information is only provided as an informational resource and should not be viewed as investment advice or recommendations. To get professional financial advice from a fee-only financial advisor near you, please visit www.napfa.org.
The decisions on how to invest, when to retire, and other financial planning topics are some of the most important financial decisions you will make in your life. I urge you to seek professional financial advice as you make this decision. Ideally, from a financial adviser, AND a CPA AND an attorney. Having the perspective of all three professions will help you make the right decision for you and your family.
This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and may NOT be suitable for all investors.
This information is NOT intended to, and should NOT, form a primary basis for any investment decision that you may make. Always consult your own legal, tax, and/or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.
Spoiler Alert: There are no "get rich" programs. Rather, just basic blocking & tackling and putting in time and care. Do your homework, choose wisely and (IMHO) work with experienced professionals who are fiduciary to you 100% of the time.
041(A)(selfie)[No Edit] 5 Uncomfortable Retirement Truths You Need To Hear
I feel It's getting harder to predict market trends post covid. Inflation is biting hard.
No disrespect but you are wrong... Believe it or not, the market isn't as bad as some people have made it look... Companies are making record profits... In all honesty, as a beginner investor who knows next to nothing, I have made over $15k net profit in a few months... I was retrenched recently, and I am using these resources to keep body and soul together that I want.
Hi Mr.Anthony, your profit margin is quite impressive for a beginner. Good for you!!!! what is your trading technique?? inadvertently, i sold a boatload of my portfolio recently. can you share your spreadsheet or trading journal?
I have never drawn up a spreadsheet or trading journal, it's of no relevance to me... I follow Kelly Matwick's investing instructions & techniques... You can look her up she's a certified FA.
After two health scares, one life-altering (mis-dx'd with something incurable but I healed, and breast cancer), I'm saying YES to retiring early and traveling, and kayaking, spending time with family and friends...
Just a bit of fun......... this is your new record for mentioning 'financial advisor' in one vid!
Retirement is absolutely fantastic. Time freedom is a beautiful thing.
Indeed. The more time goes by, the less money matters. Enjoy love and hobbies. All the best.
Thank you. Yes, #2 is way harder than I thought. #3 the way I feel about risk did CHANGE in a big way.
Hard truths cut both ways.
I disagree with the âbonusâ truth. I canât wait until I can lose my work connections.
I don't talk to anyone I worked with at prior companies; when I retire I don't plan on talking to anyone from any company I worked for.
I'm working for one reason: total compensation. A bad day of sailing or making music is better than the best day ever at work.
IMO
Monte Carlo method of computation was invented by a Polish mathematician/nuclear physicist/computer scientist named StanisĆaw Marcin Ulam in the late 1940's to solve the problem of neutron diffusion It was introduced in Finance and Economics by Chilean financial economist Eduardo Saul Schwartz (UBC graduate/professor, UCLA professor ) in applications to value options and corporate warrants in the heydays of Modern Finance (1970's). Monte Carlo simulation methods are now a staple in Finance and Economics and in applications where it is impossible to derive solution formulas for complicated problems.
We experienced the peak of our era, and now it is gone. Recession is tanking everything including 401K. My retirement equities portfolio of $750K is in the reds. I keep losing because of inflation. This world will fall to the corrupt rulers in the same way that Rome did. I'm sorry if you're thinking about retiring and you're worried that your pension won't be enough to meet the rising cost of living. Horrible foreign policies everywhere, bad regulatory policy, bad fiscal policy, and bad energy policy.
For the average person, the strategies are fairly demanding. In actuality, most professionals who have the necessary abilities and knowledge to complete such occupations do so successfully.
Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. Perhaps you should consider a similar approach.
Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ââMelissa Terri Swayneâ for about five years now, and her performance has been consistently impressive.Sheâs quite known in her field, look-her up.
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.
Another good and useful video Azul - have watched your channel since the early days - great to see it doing so well!
I finally got it from the library and just started reading it!
Thank you.
Azul i enjoy your videos. They are very informative. Even though we don't fit the typical retirees we find the information useful.
Great Video, Azul! I'm going to share it with my spouse.
Savvy advice. Most people can retire with much less than the 4% rule would indicate. We just automated a paycheck from our retirement accounts directly into our checking account. It's just like we are still getting paychecks!
Curious about the motivation to retire in 50's. My retirement plan is to turn my side-hustle into at least a part-time job. Ideally, build that side-hustle into a viable family business I can pass on to my son. While I don't have much interest in retiring early, I do have a keen interest in not working for the man. Would rather work directly for my customers.
For me, retiring at 58 and no matter what my financial advisors says: Phase 1 - Cautious optimism, no vacation feeling, Phase 2 - Worry if my savings will last until my pensions start, no job loss grief at all, Phase 3 - Do I need a part time job due to Phase 2?, and Phase 4 - Worry if social security will be there when I file for it.
Good video...a better presentation of what you've presented previously. Underspending is being driven by the industry and YTers pushing high % chance of success at face value. Financial Advisors and others have no business trying to convince people they need a high % chance of success. Chance of success actually means chance you will underspend. Anything between 50-100% chance of succcess means you have a 50-100% chance you will underspend in retirement or 50-100% chance you will leave a pile of money behind for the government and beneficiaries. You are still fully living within your means anywhere between 50-100%.
In my current working model I have three values, min, mid, max for the amounts I will withdraw from my tax deferred accounts in retirement to keep me in or below the 24% tax bracket. I may have to adjust these over time to minimize the probability of being in 35% tax bracket or higher once I'm forced to take RMDs.
It's a balancing act IMO, where the government has the odds in their favor for maximizing our taxes, which I expect will only get worse.
Read From Strength to Strength which is good. I would also strongly recommend Keys to a Successful Retirement by Fritz Gilbert that is my goto recommendation to others considering or just entered into retirement. Another great video @Azul! Thank you for sharing so much great information.
You still need to put money in your savings account for large purchases, such as car's and furnaces
But that is the point... You are living off of your savings. Why would you remove money from the retirement savings to put into a different form of savings that isn't part of the plan?
Yeah, you still need cash on hand for emergencies. You still need some buffer cash for the unexpected. But it is a flat amount set aside, and when you have to tap into it, then you get to decide on a good time to pull from your retirement accounts to replenish those funds.
But for a planned large purchase like a car... You just plan for it and withdrawal it. You don't save up a set percentage or dollar amount every month for it, you already have the money saved. Sure, because a withdrawal is income, maybe split it up across tax years so it doesn't hit all at once. But the idea is that you wait for those opportune times to transfer assets, make withdrawals, and make large purchases because the money is already saved.
ââ@CaedenV Unless the majority of your retirement funding comes from your monthly retirement income like pensions and social security. My combined pension and social security is twice what I need to cover all my expenses and monthly entertainment.
Vacationing and large purchases are the only thing I need to save for from my monthly income. I don't need to touch my 403B or investment portfolio. Currently, I'm just putting my monthly excess income in a high interest savings account where I'm getting about 4.5% interest. I like that it's relatively liquid, but I feel I should invest that excess income in a better way. Retired just as Covid hit so I'm only now planning to do some traveling.
@@mrxman581 then why bother saving and investing?
So you're going to just take money out of one savings account (IRA) and put it in another Savings Account (Money Market)? That makes no sense. Just leave it in the IRA and only withdraw if and when you need it.
â@@mrxman581what was the point of amassing all that wealth if you're not going to spend it? (Rhetorical Question) You can't take it with you when you die.
Where is the cost of years of long-term healthcare factored in?
if your house is paid off, sell it. not like you're gonna keep living in it if you need long-term care.
@@MidlifeCrisisManagement That's my thought. I don't think the state should have to foot my bill when I have a house. I want a nice place if that's where I'm going to check out.
My goal is needing a max of 3% withdrawal; though I'm on track to need 2% or less from retirement. I'll need to take more to avoid the 35%+ tax bracket once government coerced RMDs begin
I always follow Azulâs reasoning on the subject of bonds. What I just donât know is how. Do I go to my Vanguard traditional IRA, which is mostly stocks, and sell the stocks that are high and purchased bonds with them. Is that considered a withdrawal from my IRA? Can I do this and keep everything within the traditional IRA? I get the concept, but I donât know the mechanics.
Also, what is an example of a stable bond? Should I transition to US government bonds?
I'm trying to avoid new buys now in order not to get sucked into a bear trap. On the other hand, l'd love to know best possible areas and ways to invest amid downtrend, my goal is to retire comfortably at a ballpark of $1.2M
good luck! comfortable retirement all comes down to how you want to live your life, if you pinpoint a particular amount to retire with, then it's only right to plan with a well-qualified advisor
I agree, the role of advisors can only be overlooked, but not denied. I remember few summers back, just after my awful divorce, I was in dire need of investing guidance to keep my head above water and thankfully, I came across someone of grit, helped a lot to grow back my reserve notwithstanding inflation, from $360k to nearly 7figure as of today.
great gains there! mind sharing details of your advisor pleas? i've started gaining more cash flow with my employment and looking at putting money into stocks and alternative assets that can help build wealth over time
Jennafer Beaver Turner is the licensed expert I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
Wow, I just typed her full name and came across her platform on the net, Truly thanks for bringing this to light will definitely reach out to her.
I'm 59 1/2 be 60 later this year i will have 30 years into my job and put me right at 62 the manufacturer that I work for is laying off the top 5 mabe more % of the workforce and I am in the top 5 % hoping for a buyout
I really hope you get a buyout. Everybody needs a break especially if they are going to get a kick in the teeth like getting laid off.
đ
I'm 61, and work just closed. My settlement will replace my salary for about 4 months. But between my 401(k)s and IRA, I'm all set to not work anymore. Last week was great, I am getting things done around the house. Didn't realize how much I missed getting done because of work!
It worked for me. My company offered an early buyout. I had only planned on working until 62, but since they were willing to pay me to not work, I retired the day I turned 60. About the best thing I ever did.
I wish everyone could understand the value of this channel content thatâs being given away for free out of Azulâs pre-retirement mission
I greatly appreciate your videos, Azul. They have really helped me as I move toward retirement. I wonder if you would address an "expense" I've not seen anyone discuss--tithing. Many of us who title have a simple plan to follow during our work years. We give ten percent of our earnings to the church. From your experience in dealing with clients for more than 20 years, what do most people do when it comes to giving? Maybe 10 percent of their monthly income from social security, pension and investments? again, THANK YOU!
I'd love to hear Azul's take on this, as well, especially if there's anything I could do to improve my current plan. Right now, I am planning to tithe by making Qualified Charitable Distributions (QCDs) from my 401K Rollover IRA. That way, the money that went in tax-deferred (and grew tax-deferred) will remain untaxed, thereby stretching the value of each dollar I donate.
I left enough in my 401 Rollover IRA to cover tithes and charitable contributions over what might be our expected retirement lifespan. The rest, I have been slowly moving into backdoor Roth IRAs to live on. That way, I won't be forced to take Required Minimum Distributions from 401K or Traditional IRAs that might drive our annual retirement income into a higher income tax bracket, and resultant higher Medicare type of costs.
Now in my early 60's, I retired last year my advice during your working years is as follows: during your 20's, try to give 5 percent of your take-home pay, on Sunday mornings in the church collection plate; during your 30's through your 50's, try to give 10 percent. For the last few years in my office job, my monthly take-home pay was $4,500 and, I would give a minimum of $800 per month to my church which, was about 18 percent. As a retiree, this amount has been cut in half and my take-home pay with two pensions is still about $4,500. However, I now only give a minimum of $400 per month to my church which, is about 9 percent (smile...smile).
Retired about 1 1/2 years ago, we have decided to tithe about 10% of our yearly expenses.
1) please leave your mic alone lol. Listening to this with headphones while driving... It's an experience đ . Good content though! I always enjoy your channel!
2) Always good to remember that things like the 4% rule are for people like me who are too far out from retirement to make an actual plan. It's a great guidepost to set goals towards, but it isn't a retirement plan. When you get in that 5 years before retirement, that is when you need a real nuts and bolts plan to follow.
3) the more I learn, the more I am leaning towards dividend investing rather than generic weights of s&p500 and bonds. Get a little cagr to grow the income available over time to fight inflation, and less volitility on the overall balance through the day to day. But the biggest thing is not being forced to sell underlying assets during down years, while still being able to have an income. Sure, maybe a portion in growth will make sense for long term holding that isn't needed on the 5+ year horizon, but heavy on dividends looks better all the time.
Hey Azul, I think you make two wrong assumptions. First you assume EVERYONE needs to be drawing down their portfolio. And second you assume that asset allocation is essential. Let me explain why I think you are wrong. Lets take the person who is married,. The couple both have SS and he has a pension. So between that they are bringing in $6,000 a month. Now lets say they have a stock portfolio that is earning $1,000 a month in dividends and interest. (hey with todays 5% just $250K in a cash in a money markets will generate that) And lets add side jobs also earning $1,000 a month. So they are bringing in $8,000 a month. But with no mortgage and a reasonable life style, on average they only spend about $6,000. How much are they going to need to withdrawal from that portfolio? NOTHING. i.e it will just continue to grow with the market. And do they care that much on their asset allocation? NOT really, just that they are bringing in the $1,000 a month. The only impact is how large their portfolio will become.
No this is not everyone. But is also not no one either.
And no I am not suggesting that people retire with just $250K. Just that even a small portfolio, in certain situations, can be more than sufficient.
RMD could be an issue especially if your retirement account grows considerably and the RMDs could put you in a higher tax bracket.
@@mrxman581yep
@@mrxman581 lol. My example has a Roth IRA. See if I make up people I can make up where there money is. But rmds I guess are something to pay attention to .
@@buyerclub2 so you are just writing fiction to somehow make your point better? Let's troubleshoot your scenario. Pension goes bankrupt, ss gets reduced to 75%, companies are flat because of stagflation or depression so they aren't paying dividends, you are unable to work or no one will hire you, now where do you stand? The whole purpose of investing and saving a nest egg for retirement, is shockingly to decumulate in retirement. Unless your intention is to die with a pile of cash for beneficiaries and the government, what is the logic of not decumulating? In fact, if you aren't going to decumulate, then why bother saving and investing?
is this dumb? 58. at 60 will have approx 800,000 in retirement. want to retire at 60 and sell house. should have 650-800k from sale. buy with cash house for 400k. I have pension $4,500 each month for the rest of mine/wifes life. can we live off that 250-400 cash left over, pension and possibly part time fun job until 65. Take SS and a 2nd pension. Easily gives us 10k per month. goal would be to never touch retirement account. thoughts?
Don't think twice. It's mainly about expenses anyway. Go - enjoy your retirement!
Better off than most with a pension
Do you each have a $4,500 pension or just one of you?
I know multiple people who thought they were going to buy a new place, rented for a while and stayed renters. When you own you have to do and pay for inside and outside maintenance, insurance, etc., while a renter just needs to pay utilities and rental insurance. If nothing else it gives you time to decide about buying.
You might sell the house and rent for a while. Home prices are more likely to drop than go up at this point.
In on video you tell folks there is no way they can retire, in the next you are telling them not to save.
I just took a dump azul. I used your e book to wipe
Some people are bots, some people are jerksâŠ. Which one are you?