How To Retire At Age 60: Four Factors To Consider
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- čas přidán 26. 07. 2024
- If you want to retire at age 60, there are several, complex moving parts to line up first. Here are four factors to consider.
NBER Study: www.nber.org/papers/w27017
Social Security: www.ssa.gov/myaccount/
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-- About Patrick King CFP® --
Patrick King is a fee-only financial advisor in Atlanta and the Founder of Prana Wealth. Over his career, Patrick has helped CEOs, all-star athletes, Grammy-winning artists, and many others build their wealth, retire sooner, and create a legacy. Patrick enjoys yoga, mountain biking, golf, travel photography, and Clemson football.
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If you wanna be successful, you must take responsibility for your emotions, not place the blame on others. In addition to make you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life.
Keep your emotions separate from trading.
Never trade to compensate for your losses Only trade when you feel it's the right time
But trading will be beneficial to every wise individual in two years you will be wealthy with the decision you make now
Lack of trading discipline is the primary reason for intraday trading losses, intraday traders end up losing money in the market.
Experiencing losses doesnt mean you should give up. My advise to new beginners is trade with a platform.
Trading can be so fun and easy when you have a good and professional broker, you don't need to suffer a lose while trying to trading on your own. I have been trading with her
Sounds amazing
I would contact her to
know more about the service she offers.
The psychological side of retirement was the easiest aspect to deal with. My job did not define me so leaving at age 60 was easy. I miss some coworkers, but I still stay in touch. I was fortunate that my employer offered the same health coverage that I had as an employee. It is expensive, but I could still afford it. I tracked my expenses for at least 6 months before my proposed retirement date to determine if I could afford to retire. I adjusted the expenses to include my increased health insurance costs and adjusted other expenses that I knew would change when I retired. Knowing your expenses is the MOST important thing to know. This number is what tells you if you have enough money. My retirement has been even better than I imagined. Spending more time with friends and family, helping others and enjoying more free time with less stress has been great.
Awesome! And you're 💯 correct -- those everyday living expenses (not the one-time purchases) are the biggest drivers of your retirement outcomes. Kudos!!! (And enjoy retirement!)
good information provide to us after age of 60 years but your these point is not applicable on all countries such in my counttry the person who work in private service has not any pension and other social benefit as well as after the age of 60 more insurance company not consider thoses person which age is belong above 60 years in absent of these kindly what technic are person use;.
Patrick. When I visit your website, it is not displaying correctly. Formatting is mostly text hyperlinks with some pictures at the bottom. I am using the link to your site from your CZcams videos. Just wanted to make sure I'm visiting the correct site as this doesn't seem to be correct or what I would expect. Any guidance you can provide is appreciated. Thanks, and love the videos.
Assuming the 60 year old has at least 35 years of work history retiring at 60 vs 65 or 66 or 67 will have minimal impact to their social security benefits. Depending on their income history they're likely looking at a reduction of $50-100 a month. Each person will have to decide if that $50-100/month warrants working another 5-10 years but most would say no.
The biggest impact on social security monthly check payout by far at that point will be what age they decide to claim social security. The actuarial numbers don't change but the amount you get monthly will based on this decision.
Great comment, Arie. The decision of when to time Social Security is certainly a personal one. For most people, it will make a marginal difference.
I didn’t understand the last part. What do you mean actuarial numbers and the amount you get monthly?
@@justme9723 Social security in theory is supposed to pay out the same total amount of money no matter what age a person claims based on average life expectancy. For simplicity let's say a person's monthly social security check at FRA (full retirement age) is $1000 (between ages 66 and 67 depending on what year you were born is your full retirement age).
The earliest a person can claim is around age 62 this will result in a reduction in benefits of around 30% so they only get $700 per month. However that person is collecting the equivalent of $8400 every year starting at age 62. So by the time they hit what would have been their FRA of 66 or 67 they would have already collected about $40,000 in benefits. If they had waited until FRA their checks would have be bigger at $1000 per month but they would not have collected that $40,000. It would take maybe 11 or 12 years for the person who waited until FRA to reach what's called their break even point which is to match the total benefits collected of the person who collected early at 62 who by the way is still collecting their $700 a month check until they pass away. Once you reach past your break even point ie live longer than average then the person who retired at FRA or later will start collecting more from a total payout perspective than the person who filed at age 62.
Since the average life expectancy in the US is right around 80 years old that means from the social security administration's point of view it doesn't matter if a person collects at 62 or 70....If they live the average length of time the SSA will pay out approximately the same total amount of money no matter when they claim (actuarialy neutral).
Of course individually people live longer or die earlier but when you're dealing with a large group as a whole like the SSA administration is it evens out when you acount for average.
With that said you as an individual do not care as much about averages. If you have a poor medical history and you think your life expectancy may be cut short then it's probably better to collect early. If you are in good health and/or have a family history of people living well into their 90s then it's probably best to collect as late as possible. Of course there are other factors outside of health that will also be taken in consideration such as lost of a job, etc.
@@ariefraiser140 I couldn't have said it better myself!
@@PranaWealth Thank you. I guess having parents in their 60s who don't have time to go through all that complicated retirement stuff so they always come to you to research pays off in additional knowledge. Enjoyed the video.
GEE I wished I could have retired at 60 !! I retired at 56 because my company was selling out part of it's organization and I had NO choice!! however I had the time and assets aside to do so ! however I was still forced to pay some taxes !!!! My company covered our health and life insurance to the end of my life ! of coarse with some modifications ! I held off SS to as far as I could which has payed off handsomely !! I own everything and do very well in retirement but I planned carefully through out my years working !!!! I by far am not wealthy but comfortable enough to live the rest of my years !!! I did not want to be Gates or Musk just stay in the middle of the pack !! IT WORKED !!
What is exchange?
Hey Marq! The exchange is the Healthcare.gov website where you can buy an individual policy. Hope this helps!
Retire at 60 and keep reportable income below about $1500/mo and live in a Medicaid expansion state you can get Medicaid. Qualification is based only on income, not assets. I loved Medicaid. No copay, no deductible. No problem finding a doctor or services. The weirdest part was the insurance company that managed the plan was super great. Quick to answer calls, good answers, very helpful. All the insurance companies I'd worked with when paying a lot were horrible to deal with. And best of all it was the first time I felt actually covered for life. If I got some long term problem I wasn't going to be dropped or have to pay a lot more.
And if you want to delay SS Medicaid will convert to Medicare and pay your Part B and D plus still no copay, no deductible. That's pretty sweet insurance.
Plus you can get LifeLine which is a free smartphone and plan. And recently free in home internet.
There are some serious perks to keep income below the limit to get these.
I paid into a NI plan all my working life. Because I was faulsly told I'd be retiring at 60 !! But when our tory government gave our finances to American companies in the UK. They changed the retirement age. And just remember only 18% of people born in the uk reach pension age. So 82% of us ain't going to reach pension age. So the lower minimum wage earners who can't really afford to pay into a pension scheme!! Look at where and when that money is going to be most important to you !! So basically pension schemes is not worth the paper they're written on. All properganda crap for the rich to obtain money from the poor to line they're pockets...
Another good one
Thank you, @garyjsimm ! 🙏
Great video
Then there's debt and expenses
Brinda -- you got that right! If you can pay that debt off before retirement, that's always a plus.
Good video 📹👍
Thanks for the kind words, Bruce! I'm thrilled you enjoyed it!
I retired on my 60th birthday -
1. Like falling off a log
2. No problem
3. Easy-peasy (pension)
4. I was able to maintain my group health insurance.
6 years in and my net worth is up 20% even with extensive travel.
Way to go, Young Timer! Congrats on the retirement and enjoy your success!
young timer, Same here--except on 56th birthday. No regrets.
you are in retirement bucket #3, it is lonely there!
Good points.
I'm thrilled you got something from this!
retired at 60 (1 week ago), inflation out of control, market dropping rapidly, waiting until 61 to take a draw on my deferred 401k. Looking for a place to put my short term cash funds that will be liquid and earn something greater that zero. Looking for stocks that do well in inflationary environments. Any ideas?
Exxon and companies that deal with food.
Consider an online bank account. They have better interest rates.
@@TheFirstRealChewy Thanks -decided on 2 to 5 year treasuries for now.
Good information and yes, I'd like to consult with you guys. I got laid off 6 days after I turned 60 this month. Need to know about distribution strategy and where to get affordable health care after my COBRA ends 18 months from now (May 2023).
Happy to talk with you about this, @jebssan9. Here's a link to my calendar:
calendly.com/pranawealth/intro
I'm taking a few days off for Thanksgiving, so hopefully, there are a few days/times there that work for you. I'm looking forward to helping you out with a withdrawal strategy and health insurance options.
In the meantime, have a great Thanksgiving!
I retired 20 years ago at 45. All these factors were a factor for me. I had no plan, no pile of money. Security was that I was a software engineer and would be able to jump back to earning if needed. My initial plan was to work on a software project of my own for fun until savings ran out and then go back to work. The savings didn't run out. What happened was my spending went down. I was happy writing code, gardening and playing basketball. Almost no cost. I did have a $2200 mortgage but once I saw my spending fall I saw that mortgage as a target to get rid of. So I fixed up and sold that San Jose CA home and moved to Phoenix. That's when I realized how cool the cap gain exclusion on a home was. I worked (is that retired???) for several months fixing up the house, got a great payday and paid no income tax. That's pretty cool. So I worked that into my developing plan. I bought and sold 2 more houses, working on a 3rd now. When ObamaCare passed I got Medicaid because my reportable income was $0. That saved me about $500/mo. Then I was walking around and kept seeing stands out saying "Free Cell Phones". Got curious just to see what the scam was..."free phone, high cost plan?" They said if you're on Medicaid you can have a free smartphone and plan. They handled me one right there. That saved me $50/mo. Recently I can get free in home internet, saves me $65/mo. Also at 65 I lost Medicaid but they just switched to paying my Part B and D for me plus what's really cool is $0 copay and $0 deductible.
Over the past 15 years my average spend has been $600/mo including everything. Crazy. I love it. Haven't needed to take SS yet, assume I'll wait to 70. Spending $600 and get a check today for $2475 I have no idea what I would do with it. Also getting ready to rent part of my house for $2000/mo but can keep the reportable income below the limit for free Medicare, phone and internet. Planning to move to SE Asia and $2000/mo should be plenty. Much more expensive for me than here, but still reasonable.
There are different ways to retire. I never cared for the concept of continuing to spend almost the same as when working. You have a lot more options when retired because of all the time you have. For example I walk 2-4 hours a day that I'd never have time for. Used to pay for a gym and now I walk past several gyms. I have time to shop for food and cook so I haven't eaten out at all in years and eat much more healthy.
I have time for trying new hobbies and have a rule that a hobby should not cost anything (or nearly anything) and have the real potential of earning money. That has lead to another revelation...when retired, and not needing money, earning a little money is a lot of money. As a software engineer I couldn't justify designing and building landscapes for others. But when my yard was done I needed other yards to play in so I hired out, charged little and kept design control. Gee, getting even $1000 profit for 2 months of fun was a lot of money. Same with software. When I was working mainly in tech startups we were limited to creating products that could make a huge amount of money. When retired there were 100's of interesting projects I could work on that probably wouldn't earn anything but a couple did earn a little. That's just gravy. So the combination of crashed spending and a whole new world of only earning a tiny amount combined to make me feel very secure.
love to interview you!
I thought I wanted to retire this year. I quit my job and after 6 weeks I was going nuts. I went back to work part time and work the days/hours I want to, The new place has absolutely NO stress, so it's like I am doing it for fun now. The only issue I have is health insurance. I make enough money to cover my budget, BUT that means I make TOO much to get a decent subsidy. So I am living without it for now. I spent the first 35 years of my life with no insurance, so I am not scared to go without for a few years until Medicare. Our healthcare coverage system is so wacked, I am never going to Choose to pay for coverage unless I am forced to. Hopefully our country will wake up and get with the rest of the modern world with universal healthcare.
Working with no stress sounds fantastic. The health insurance thing is a tough question. I'm self-employed, so I'm pretty much paying top dollar just to have health insurance at all. For those who aren't willing to go without, choosing a high-deductible plan may be the best option before Medicare. There are really no easy solutions there.
Depending on several factors, Direct Primary Care is an often overlooked option.
I am planning on exiting the workforce at 60 I am 51 now. I have one pension starting at 65. I want to live on my cash from 60 to 65 and do Roth conversions. I will have another pension that will start at 62.
That's fantastic! It sounds like you have a good plan in place, especially if you have two pensions!
That's my "problem " too. I have 2 pensions, an annuity and social security so the financial plan gets a little complicated on how much to draw and when from my retirement accounts.
Having two pensions is a good problem to have, but it does make planning more difficult. This is a great opportunity to bring in a financial planner!
Agree that the numbers associated with "pension wealth" are very important. It doesn't get anough attention overall in all kinds of media discussions. Having a pension is a HUGE advantage, although many do not adjust for inflation/cost of living.
Congrats. I just retired last year at 61.
My best financial advice to you at 51:
Make sure you are 100% in Roth 401k if your employer has one. Too much pre-tax is a problem. Also, cut back on 401k the last 2 years and save cash. You need a huge cash cushion for emergencies, cars, AC units, etc.
you nail it for retirement bucket #2 members! glad I made it to bucket #3
It would be amazing if we can reduce our monthly expenses such that in retirement social security benefits cover 100% or more of our critical expenses. This way even if the stock market crash, at least the critical expenses can be covered.
I will turn 62 later this year, and my target date to retire was 63, as long as I enjoyed my job. 63 was just when I wanted to be gone by, not when I needed to work to. Well, job just took a drastic turn, so, I am now on the fast track to get out!
Awesome! Congrats, @jdgolf499 ! I'm assuming there's more golf for you in the near future!? 🏌🏻♂️
Big ups to everyone working effortlessly trying to earn a living while building wealth. I’m 50 and my wife 44 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle made it possible for us this early even till now we earn monthly through passive income.
Thanks to fire movement. //
I'm a single dad, not quite long I started investing. I'm very curious and need help on how to enhance and increase my returns. Any good investment tips would be appreciated
@@eadad4371 Alright so generally, investing requires higher knowledge. For this reason, It's important to have a solid support structure (financial consultant) to guide you through especially in asset picking. I operate with (REGINA LOUISE COLLARO)an investment advisor who partners with a licensed wealth management firm. For the record, the experience has been the best for my finance. She is quite popular for her services so you might have heard of her.
She made me financially stable investing through her help, now I earn on a monthly basis through her passive income strategy...So I’ll advise you do get a good Investment advisor for yourself.
@@davidforesto I appreciate your advice. It's hard to find someone that's reliable. When I see how much you've made investing, I could really use your investment advisor. That is, if you don't mind sharing her information.
@@eadad4371 Hello EA , look her up on the internet and leave her a message she's quite popular for her services as she was recently featured on cnn. She can work with anyone irrespective of where their located
@@davidforesto I have had the intentions of starting investing. But I always thought it was late and I think I need to stop procrastinating. I will definitely 🔍 Regina Louise Collaro and see what she can advise .Thanks a lot . This was of so much help to me 💜💜.
I'm turning 55 in a few months and 60 is looking like a good time to dial back on work. That will put me a full 35 years into my professional working life (been in the workforce much longer). I'm still good at what I do (healthcare, front lines) and there's still a big demand for what I do. What I am having a hard time with are all the changes happening in healthcare, a newer generation afraid of work and afraid of commitment longer than a year and overly sensitive to literally everything in life. I guess this is what it's like getting old! My spouse would like to work full time (she's currently part time) and I'm chomping at the bit to cut back on work and downsize our huge home--could be a win-win. So, wish me luck in 5 years!
@henram36 -- good luck! It sounds like you've really put in some hard work, especially with all the craziness that's happened over the last couple of years. I'm hoping that this last 5 year homestretch is a smooth one for you! 🙏
How did retirement work out for you?
I found that even working, my portion of health coverage was cheaper to go through a Christian Medical Sharing program rather than going on the employer plan. Even with the employer paying a portion of my cost.
Ron -- I've heard of some people having success with the faith-based "Medi-share" programs and others who were not. I'm glad your experience has been a good one! Which program are you using?
@@PranaWealth Mine is UHSM. Had Covid and hospitalized for 16 days. So far, over 80K in bills and my portion has been 87.
Ron, that's awesome. Thank you for the heads-up on UHSM. I'll keep them at the top of my list for when someone asks about Christian medi-share programs. Thank you!!! 🙏
Retire at 60? Are you nuts?
Ed, if you've saved enough to retire at 60, I'm not gonna hate on you for it. Seems like a lot of folks are trying to get the heck out of the rat race these days?
I have retirees all around me. Most retired at 62. The women love it the men are having a hell of a time filling all those hours every day. I'm retiring at 70 and maybe not even then. I am out the door every day at 8am to a job I really enjoy. This makes all the difference in the world. Of all the advice we hear from 'Financial Experts' the most important piece of advice eludes them all : Make sure you really enjoy your work by age 35....40. That way you're not crawling & desperate to collect at 62 because of a job you hate.
I just retired. Was in one of those jobs where more job responsibilities were added monthly and no increase in wages for the last 4 years. Not worth the stress. My new job will be trading for a living.
That stinks -- I've seen that happen before. Good luck with trading!
Excellent again. Clear, concise, practical, and useful. Congratulations.
Thanks so much, Marc! 🙏
Great video, honestly I'm not even kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it, Investing is a long-term game, so I try to focus on the long term.
I can’t zero in on the long run when I should be retiring in 4years, you see l've got good companies in my portfolio and a good amount invested, but my profit has been stalling, does it mean this recession/ unstable market doesn't provide any calculated risk opportunities to make profit?
There are a lot of strategies to make tongue wetting profit especially in a down market, but such sophisticated trades can only be carried out by proper market experts
I totally agree, I have been consistent with my profit regardless of the market conditions, I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2020 this time with guidance from an investment adviser that was recommended by a popular economist on a popular forum, long story short, its been years now and I've gained over $850k following guidance from my investment adviser.
I've been down a ton, I only hold so that I can recover, I really need help, who is this investment-adviser that guides you
If that is the case, it would be an innovative suggestion to look out for Financial Advisors like Olivia Maria Lucas who can help shape up your portfolio.
Trying times are ahead, and good personal financial management will be vital to weather the storm.
I retired at 89, To be honest I would like to get back to work again
You joke but 2 of my uncles retires at 87 & 89. That was 6 years ago. They are still alive & kicking. Pretty damn healthy too. They both agreed- retirement is a whole lot of hours to fill every day. They stayed productive enjoyed their work. They also went to quite a few funerals of old pals that retired at 62.......
WE'RE ALL GOING TO DIE.