Retirement Income Strategy for 52 Year 👴 With $750,000 in Retirement Assets & Retirement Savings
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- čas přidán 4. 04. 2022
- Retirement Income Strategy for 52 Year Old 👴 With $750,000 in Retirement Assets & Retirement Savings
In this video we are going to look at a retirement income strategy for a 52 year old single male with $750,000 in retirement assets and retirement savings. He is considering retirement at two different ages, 55 or 59. His main concerns are social security or when to claim social security benefits and putting together a complete retirement income strategy so that he doesn't run out of retirement income.
Retirement income strategies and retirement income planning are two big pieces to anyones retirement planning calculator. Whether you are wanting to know strategies for "retirement planning at 30", "retirement planning at 40", "retirement planning at 50", or even "retirement planning at 60" understanding how much retirement income that you want versus how much you need gives you a roadmap to follow to and through retirement.
Here at Pearl Wealth Group, we run a trademarked retirement investment and retirement income plan for individuals and families who are wanting to retire called "Your Financial EKG™." What we are trying to visualize is how long a persons retirement savings are going to last throughout retirement. If you are looking for early retirement planning tips or trying to saving for retirement in your 50's, You Financial EKG™ is a great tool to help you understand where you are retirement planning. Retirement planning and retirement income strategies shouldn't be complicated. They should just be done right.
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*Please make sure you talk with your CPA, Financial Advisor, Retirement Planner, or Investment Advisor Representative, before implementing any content from this channel. All videos are for informational and educational purposes only. None of the content, comments, responses, information, or any other item on this channel constitutes financial advice or recommendations. Please call Pearl Wealth Group at 813-807-5060 to go through your Retirement Income, Retirement Investments, or Retirement Plan in more detail.*
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Thanks for sharing awesome tips! I’m financially free and currently growing a solid retirement plan. It takes a positive and consistency to learn new things, unlearn the old habits ms Important to get a mentor/coach to lead you all the way. It’s great to start young too!
Thanks for the comment and sharing!
@Ishana ishana Do you mean age or amount saved?
@Ishana ishana personally I think 1m is the goal to overcome inflation and having them in an inv estment p ortfolio is a perfect plan. I'm half way to my goal 😊
@Andrian zach yeah. Fees and commissions are factors to look at in search for financial advisers. There’s financial experts out there who do not look at their fees but the impact and intrinsic value they bring along to you no matter how little you want to start. I’m glad I had one guide me start my financial journey
@@stevestone8740 I'm trying to read books about finance, budgeting and saving. Looking at having a good financial advisor. Can you recommend?
very good videos
Thank you!!
$650k in IRA by 52 is impressive. Mainly for the discipline of starting early which I presume he started in his early 20s. And with that 3% contribution into his 401k, am I correct to also assume he makes around $60k annually? If so, that shows great hope for those in a similar boat who want to put away as much as we can for the next 30 yrs so we can retire with a peace of mind in our 60s.
Thank you for the comment! My mission is to show how regular, ordinary, everyday folks can retire and retire comfortable. This example shows that. Discipline and consistency are why he’s in this position.
I'm retiring with around 950k at 56, and heading to SE Asia. Make your money work harder for you, I say.
Hello A G! Thank you so much for your comment and engagement with the channel! Awesome idea! 👊
Hey Drew,
Can you move your rental property over to a Roth IRA account to pay taxes now and avoid taxation from future passive income?
Thank you,
Jack
Jack, thank you for the question. I would encourage you to talk with a CPA who specializes in real estate. This question is out of my comfort level to answer here on CZcams.
During retirement on your example, while collecting social security, you inflation adjust 3% annually on income withdrawal from retirement savings but stay fixed (no COLA) on social security payment for both 62 and 67. I don't understand why you wouldn't COLA adjust social security for +20 years.
Great question! Social security has so many unknown variables, I just like to be very conservative in my planning.
@@yourfinancialekg Thank you for your response. Based on your thought process staying conservative, would it make more sense to remove all inflation from your example and assume real return of ~1% instead of using 4% return on investment? That way all values are today's dollar we can understand without the combination of inflated and some not.
@@MartyMeyerdierks Mayyyybe. I would rather "assume" that we can retire without SS. That would be where my planning starts and then we factor in SS. Great question Marty!
So why not recalculate where he retires at 55 and then run the 2 different social security scenarios. Who needs that amount of yearly money until 112 years old
Absolutely! And we did for this client and go even more in depth during the Financial EKG process. On CZcams I want to keep it shorter if possible. Thanks for the comment!
lol, living till 112 sounds like a torture..
@@minfongwong depends on quality of life right?
@@yourfinancialekg do you know any 100 year olds have the same quality of life as a 50 year old ?
@@minfongwong Not 100's yet, but many late 80's and 90's!
I did not hear you discuss Federal Taxes and RMDs that will start to hit on that big IRA. I never heard you discuss anything about using the IRA money as income from age 59 1/2 to reduce taxes on the IRA money using up the standard deduction bucket and the 10 to 12% tax bracket or doing any Roth conversions filling in the 10 to 12% tax buckets. Will RMDs start to kick his taxes up hard above the 12% tax bracket?
Hey Ron! Great comment. This video was specifically designed to talk about the income strategy. I have many videos discussing roth conversions. One you might like is here: czcams.com/video/vACLF3R8A8Y/video.html. I try and keep my videos under 13 minutes so I usually focus on one topic at a time which is why my videos are diverse in their concepts. Thank you so much for engaging with the channel!
Proceed with caution!
I like Drew & enjoy his videos. But he’s way off with this one. I was a little suspect of the calculations & decided to run it myself.
As presented, this is a straightforward exercise, but unfortunately it goes astray for reasons too numerous to mention.
Using the assumptions presented in this video, the customer would run out of money at 90 years old if they took SS at 62. They would run out of money at 92 years old if they took SS at 67.
Don’t take my word for it, run it for yourself. It’s easy.
Totally agree MrGan3on that you should always consult with your Financial advisor, CPA, or investment advisor representative before implementing any of the strategies on this channel. Thank you for commenting and engaging with our channel.
@@yourfinancialekg Drew, if his comment is correct and your final values for age at which he would run out of retirement funds is not correct, wouldn't it be best to take this video down and do it again with correct outcomes?
I really appreciate your content, and I'm not stating this as a slight. I just know you would want the correct information presented. Your response seems to deflect from the true crux of MrGam3on's comment.
@@daveharness70 I believe that my numbers are correct. I appreciate your comment and engagement with the channel. Have a great day!
@@yourfinancialekg Ok, so your response to MrGam3on's comment of "Totally Agree" wasn't in light of the fact that you were in error with your calculations? If not, then it was a poor choice of words.
I watch because you've portrayed yourself to be a man of integrity at your foundation. That may be true, but interacting with reasonable comments on CZcams should be taken seriously. I don't expect a response, but just know Who you are representing here on your channel.
@@daveharness70 thank you for the constructive comment. I updated my verbiage. Always appreciate the viewers and conversation. Have a great weekend!
How old is he again? Sorry I didn't quite catch it the first 17 times. 😂
lol!
I'm not sure my annual expenses stay static for 30years. I'm guessing as you age expenses will decrease, I'm thinking balances will increase over time. IMHO.
Yes, balances can increase over time with market growth but for expenses you always want to factor in inflation. Thank you so much for the comment!
His main concern was health care yet you didn't mention it once or include it in your analysis? What about taxes?
But my biggest question is how the heck did he get $720k in his IRA by 52?! He's either a wayyy saavy investor, or inheritance :)
Yes he was a very good investor and saver! Thank you so much for the comment and engagement.
I believe the healthcare expense is health insurance and is included in the $5000 monthly budget.
@@DenverBrad Thank you for commenting and engaging!
@@DenverBrad I suppose you can make that assumption, but not once was that mentioned in this video. What about his mortgage? Is that included in the $5k monthly budget? And taxes? There's no way to tell. We can only guess. Any of these will have a huge impact on the outcome.
I'm assuming his expenses are less than the actual numbers shown and you would need to account for taxes in that scenario assuming a traditional IRA. In addition, that IRA better be a Roth IRA or there will be a 10% penalty on withdrawals prior to age 59 1/2 unless you are just taking contributions and not earnings from a Roth, or you are doing some type of conversion ladder.
Getting to $720K by age 52 is very possible as long as your time in the market is long enough (25-30 years) and from an early age you have invested consistently.
One issue that you didn't consider is that COLA adjustments will increase the SS income MORE each year if he waits until 67 to file. A 2% increase on $2500 would have a bigger impact,and that would accelerate, than a 2% increase on $1700.
Would that change the numbers?
Sound advice to work until 59 rather than retire at 55. Unless your job is literally killing you then working at least until 58 is the way to go. Retiring at 58 made the most sense to me.
You are correct J! I never calculate in SS COLA increases into planning just to be conservative. The COLA increase would certainly increase the numbers as well as continuing to work. So many different factors it's hard to squeeze them in to a 15 minute video. Thank you so much for watching and commenting!
Did you try doing the cash hack program I did cash hack just a few days ago and I got paid $20,000 in just a couple of hours
This video popped up in my suggested list. You provided sound retirement income strategy examples that give an idea of what people should begin thinking about. Good stuff! 👏🏽👏🏽👏🏽
Thank you so much for the awesome comment! Appreciate you watching and engaging with the channel 🤛
David, remember if you are underfunded when you leave your job, you are not retired, you are unemployed.
Hello V p! Thank you so much for your comment and engagement with the channel!
Did you try doing the cash hack program I did cash hack just a few days ago and I got paid $20,000 in just a couple of hours
Ready to tweek the scenario a bit. 750K with a 62 year old. How would it change?
If this scenario started at 62, I would probably work on a scenario to delay SS until 67 and then eliminate the need for higher retirement income from investments. Check out this playlist for a scenario that might be closer to you: czcams.com/play/PLso81QrK5z5aaee1WOMO4QgXvi_aVHADJ.html
@@yourfinancialekg ty. And I have plans to work a seasonal job per year around 30k, leaving the rest of the year free. Ty again.
@@kevinfestner6126 great idea! Thank you sir 🙏
Run numbers to spend to ZERO dollars left in savings. Also, you know spending DECREASES during retirement but you fail to mention this. Your withdrawal rate is way too low. What balance are you saying we should have in accounts when we die? Why work longer and still have too much in retirement accounts. What is the objective? Why do you guys always want people to die with too much money?? 😒 Incentive from commissions?
Bruce, great comment! Thank you for watching and engaging with the channel.
i am all for retiring at 55 and SS at 63 but thats me......really good video Drew!
John, you are not alone in your thinking! Thank you for watching and engaging!
Need some big adjustments to this for the Biden economy.
Always want to be flexible Rocket! Thanks for the comment.
Fair assumptions. I actually didn't have time to watch the video a few times to actually 100% comprehend all your numbers but you didn't mention taxes. You also didn't mention if the IRA is Roth or traditional
I like delaying Social Security to 70 so I can spend down my traditional accounts because of taxes, plus get the guarantee Social Security provides.
John, thank you so much for watching multiple times! Really like your assumptions. Normally if I don't mention Roth, it is a Traditional IRA. Thank you again for commenting and engaging!
@@yourfinancialekg just one more thought I had in the ride in to work. Why not put more in a Roth IRA/ Roth401k and simultaneously spend down the taxable brokerage. I'd much rather have Roth assets than taxable
@@johngill2853 You are exactly right sir! Spend down the taxable and let the Roth IRA continue to grow. Thank you so much for the comment and engagement!
@@yourfinancialekg your chart shows he only contributes $5, 000 to an IRA and $3,000+ to Roth 401k. I would be maxing them out even if that meant I had to spend some of my taxable brokerage money to live one. The Roth IRA is better than a taxable account
@@johngill2853 I agree with you again! This is just a base scenario. We have made many adjustments since.