How Much Do You Need To Save In Order To Retire With a $100,000 Income | Calculate Your Retirement $
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- čas přidán 14. 10. 2020
- Have you ever wondered how much you need to be saving now in order to retire with a set annual income and not run out of money? Obviously, $100,000 today will not have the same purchasing power as $100,000 will in 10 or 20 years. In this episode Troy Sharpe, CFP®, will show you how to use the TVM calculator to calculate how much you should be saving monthly and also how much you will need to be withdrawing if you want $100,000 in income adjusted for inflation.
Try our free TVM calculator here:
oakharvestfg.com/financial-ca...
Working with a CFP® professional can be an important step toward reaching your financial goals. Not only do these advisors meet rigorous education and experience requirements, but they are also held to some of the highest ethical and professional standards in the industry.
Education
CFP® professionals must master nearly 100 integrated financial planning topics, including:
- Investment planning
- Tax planning
- Retirement planning
- Estate planning
- Insurance planning
- Financial management
In addition to completing a comprehensive financial planning curriculum approved by the CFP Board, or equivalent academic coursework, CFP® professionals are required to complete continuing education coursework, including a CFP Board approved code of ethics course, to ensure their competence in financial planning.
Examination
CFP® candidates must pass a comprehensive 6-hour CFP® Certification Examination that tests their ability to apply financial planning knowledge in an integrated format. The exam is notoriously difficult and only 64% of people who took the exam in 2017 passed. Based on regular research of what planners do, the exam covers:
Establishing and defining the Client-Planner relationship
Gathering information necessary to fulfill the engagement
Analyzing and evaluating the client’s current financial status
Developing recommendations
Communicating recommendations
Implementing recommendations
Monitoring the recommendations
Practicing within professional and regulatory standards
Experience
CFP® professionals must have a minimum of three years experience in the personal financial planning process prior to earning the right to use the CFP® certification marks. As a result, CFP® practitioners possess financial counseling skills in addition to financial planning knowledge.
Ethics
As a final step to certification, CFP® practitioners agree to abide by a strict code of professional conduct, known as CFP Board’s Code of Ethics and Professional Responsibility, that sets forth their ethical responsibilities to the public, clients and employers. CFP Board also performs a background check during this process, and each individual must disclose any investigations or legal proceedings related to their professional or business conduct.
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If you have $500K or more and would like a partnership with a firm to help you manage your investments and financial plan as in these videos, click on this link to connect with our advisors: click2retire.com/retirewith100k
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I'm doing more than fine with only $45,000 retirement income. I own my home and have no debts. Oh! yeh, and medical insurance.
Families are living on that much including mortgage or rent. Why would a retiree need 100k to live off of. Many employees do not make that much during their working years.
I learned more about what my retirement needs will be watching this eighteen minute video than I have after years of reading investment magazines and online articles. Thank you!
Glad it was helpful!
You are very optimistic with your SSA income projections. Saying $80k from Social Security is WAY TOO MUCH in my experience. I made good money as an engineer for decades - but SSA isn’t even close to that.
thats because that number, $80,000, is for 2 people. Thats why it seems too large
The BEST video I've seen on retirement planning. Thanks for your work on this Troy!
Very informative and I appreciate that you went sufficiently detailed. Thanks
Well the biggest problem in this scenario is you need $100k to live off of at 60, if you are debt free there is absolutely no reason to need $100k a year. You need food, utilities, insurance and not much else so your needs are probably $30k a year take a few trips and enjoy retirement some more and $50k is more than enough it's all about the lifestyle you live
Intereting video, even i live in french country i can use ur method. The best way to get high retirment is to begin to save the earlier u can and u should join the fire movment !
Wonderfully informative video - thank you! Does the money saved include what is your savings, brokerage, and retirement accounts? Or just the money that is "growing" (which would mean retirement and brokerage)?
Great teaching, Troy - thanks for sharing your knowledge.👍🏼 Subscribed!
Thanks for the sub, and your compliment. Glad you liked it...
Troy, what is a good inflation calculator that I can use to determine future dollar value down the road. Right now I just manually do it and its very tedious work to do manual calculations for 20 yrs down the road! Great video!!!
Great information.
I think it would be wise to introduce a strategy where one starts drawing a higher percentage early in retirement and then tapers off to a more traditional 4% or even 3%.
4% rule is really designed as a "worst case scenario" and assumes consistent withdrawal rate, which is not realistic.
Thank you for the video.
Thanks for your compliment and your comments. Glad to have you onboard...
Don't you need to adjust social security for inflation as well?
Where does the .04 come from?
What about the life expectation in this calculation ?
Or if you're like me, I spent my whole life pretty much living paycheck-to-paycheck raise three children by the grace of God, I retired at 62, still living paycheck-to-paycheck. The only problem is medical benefits, but at least I won't have to pay a fine for not having insurance. But there's always trade-offs. I did pre-plan for my funeral so the kids don't have to worry about that. You just have to live within your means.
Hopefully you were nice to your kids and they will look after you when you need it. Kids can be part of a retirement plan.
Good job. I am also investing in kids. Not that I expect them to support me, just them to do well for themselves. Doing better than my parents. Hope they will do better than me.
great video
Glad you enjoyed it
Could you add a fourth bucket at the end? I’m a general contractor starting to invest into rental homes.
Question...Why do you need to show your present money saved as a negative #?
Of course, you could have gone to a service academy or ROTC in the ‘80s while in college (college is paid for) then spend 30 years in the military (21 + 30 = 51) and retire as an O6 (Captain or Colonel) with a retirement income of $100,000 / year, cost of living adjusted, for the rest of your life. At age 51 you are still young enough to start a second career, pay into a 401k for another 10 years or so, and call it quits at 61. Then when you pass, if you’ve paid into Survivor Benefit Plan, your spouse continues on with 50% of your retirement pay until she passes. Of course, you have to put up with the military for 30 years…but…
just about any federal job that pays well.
Just what my dad did. Entered the military as an E-1 and 31 years later retired as an O-6. Started with a HS diploma and the military paid for his BS (ROTC), MS and PhD throughout his career. Extremely proud oh him and what he accomplished in life.
Good information. I can tell you are a financial planner that only takes high net worth folks though, many of the things you take as granted are far above average….
I think this was overly complicated. Most people just want to know in todays dollars how much does my profile need to have to provide $100,000 for 25 years. As you age you need less money so inflation balances out.
$100K at retirement will be really comfortable 🤩. But, it does all depend on your quality of life/living standards. Not everyone needs that much and live quite well.
Yes, people have differing needs, dreams and lifestyles...
It can cost 6-10k a year to live in a “nice” retirement home in Southern California.
The only way to reduce and get a discount is transfer assets to your kids and then claim to be poor.
Lots of families with kids do not make that kind of money. The Internet is such a depressing place
If your house is paid off, I don’t think you need $100k a year to live on.
Depends on your lifestyle. If you are really into traveling, that can eat up lots of $$$ fast.
There is no one size fits all retirement goal. If you family income is $100k/year your goal is different than if it is $50/year.
Thanks for watching and commenting...
Mike, thanks for your comment...
Depends on what state you live in.
Outstanding... concrete content!
Glad you like it! Thanks for sharing...
Why is present value negative? if I already have 100,000 wouldnt that number be positive?
Quick question, why should we put a negative sign before the amount of money we currently have saved? Thanks!
It just has to do with the way the tmv calculations are set up. Flows going away from you into an investment count as an outflow(negative) withdrawals from an investment to you are positive.
Timothy Slevin-Vegdahl Thanks for your help!
Can I use the TVM calculator to figure out what I can spend annually in my current position if I choose to retire today?
I assume $0 for future value… (I die broke)
Put 5-6% growth
Current savings (negative number )
Period number of years before I die… assume 95 years old I drop dead.
Hit the payment button and that tells be what I can pay myself annually ?
Excellent video! I was looking for a video just like this. Any added advice if planning on retiring young? I'm 37 and my goal is to retire between 47-50 yrs old. Thanks for the great video!
How do you plan on addressing medical insurance.
@@f430ferrari5 That's THE question isnt it, common strategy is to get out of debt so you have a low nut, get income under obama care limits and cruise until you hid medicaid age.
I need about 10 grand ..plus my SS.
This would be a great video if it would relate to most of the US population, especially the young ones that have nowhere near $100,000 saved at 30 years old. Most young adults don’t have that kind of money. If you could make another video that would relate to young people that have an average US salary and that dont have $100K saved, that would be great.
Most young adults don’t have that kind of money.
This is because spending exceeds income. If you invest 10% of your income, and spend the rest, you can retire comfortably.
That's so true. As soon I heard saving 100k by the age of 30, I stopped watching the video. If you can save 100K by that age, you don't need to watch this video because you already know what you're doing.
This conflates the time value of money with inflation. These are two separate items.
People making 50k/year also retire.
7% is out of the window..
I'm 29, my social security will be zero. lmao.
Hi Steve
I have 3.3 million dollars I am 61 and my wife is 43 . I will get 3100 in SS . I want to insure she can retire with 120k . Do I have enough ?
1.25 million
For the love of god will people stop using that wind sound effect when they put up a graphic. Three minutes into the video I couldn’t focus on anything else.
First
I wonder why y'all old folks need so much money.
I spend only $3000 per month.
If you lived in a retirement home here in CA the cost is 6k a month or more. It’s like rent plus paid meals.
Doesn’t even include medical premiums.
Inflation is messed up. This is why I buy Bitcoin. Monetary energy that increases purchasing power across time as more goods / services enter into this society.
Anyways, great video and Oak Harvest sounds like retirement planning.
You are not going to get social security at 60 years old this seems like a huge scare tactic. You don’t need 3 million dollars to retire. 90 plus percent of people will never attain that sort of number. Go look elsewhere for your retirement information
Blablabla WASTE OF TIME. Don’t lecture me. Just GET TO THE POINT!