How Do I Know When I Have "Enough"?
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- čas přidán 4. 07. 2024
- Many people, regardless of how much money they have in their portfolio, never feel like they have “enough” to retire. What is enough and what does that look like for each of us?
Unfortunately, it can't be distilled down to a single number. It's something very specific to you.
In today's video, James Conole will walk you through how can you think about what enough means for you so that you can apply this to your own personal financial planning to create that peace of mind that we're all looking for and so that can fully enjoy your retirement.
Learn the tips & strategies to create your secure retirement.
⏰ TIMESTAMPS
00:00 - Introduction
1:27 - What is "enough"?
4:31 - What's Most important To You?
7:34 - How Much Do We Need?
9:58 - What is Sufficient Protection?
12:34 - Living Intentionally
15:14 - Focus On Your Numbers
17:02 - Contentment and Growth
17:51 - Working With Us
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How Would You Feel If You Knew You Could Retire Today? // • Why I Started the Read...
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The content is this video is worth hitting the subscribe button. Very impressed.
LOL and SMH
Thanks Tobi!
A gentleman at my gym who is 70 years old retired at age 55. He was in the corporate world and is still in great shape for his age (daily workouts) and healthy lifestyle. One day I asked him about retiring that early and if he regretted it or was scared of the downturn in the markets as a retiree. He responded by saying to retire as early as you can so you can enjoy life. He does not regret retiring early one bit. He lives a simple lifestyle and stays busy with hobbies and helping others. His investments and social security are enough for he and his wife to live comfortably and do some regular stateside traveling. He has convinced me that that there is more to life than working for someone else until my health is gone. Enough means living off of the monthly pension and social security while letting the investments cover big events such as home repairs or health events.
Pensions are gone, dinosaurs. SS is maximally paid at 70 years old. This fella HAD to have some source of income and a material amount of money in his portfolio to draw on at 55 YO. Agree, leaving work early is beneficial for health, do what you want to do. But, bottom line is the bottom line. What you don't have in the example is this person's numbers.
Except for me being 62, his story could be mine. And I have no regrets about retiring at 55 either.
That’s a win!
Well said.
I would like to know how people who retire early obtain and pay for medical for themselves, a couple, or even family. The amount is just really high.
I am so happy I didn’t let age bias stop me from viewing this content. When I saw the young man in the thumbnail, I thought what could he possibly offer of value to someone probably 30 years his senior? Boy was I wrong! This is some of the best content I’ve seen on CZcams bar none! What is your enough is so simple yet so powerful. Thank you so much for sharing.
I’m glad you liked it!
You read my mind.
don't be fool by the "babyface", behind it is a beautiful & wise mind!
♡
I know right, you look so young? You still have spots! How can u be Retirement expert? But you have very good information and explain things well, good job!
I have the exact opposite problem. I’ve seen and been solicited by retirement advisors who are still working in their 60s or later. What could they possibly know?
Going from a saver and investor to a spender is a huge psychological leap. For savers, spending our money is not in our genes.
Agreed, it can be a difficult transition
Very true. My wife and I are still working on making the transition from accumulation to spending down. And I’ve been retired 6+ years!
Totally hear you! Been scared of saying this to anyone! I am so glad, that I am not alone!
Only today, said to myself- got to stop the always putting aside habit!
Spend more………………
Came up with a couple of ideas……….hope I will stick to them!
Exactly !! how to switch when I have a mortgage still and college debt soon !!! tough to even imagine.
I think retirement age is different for every body. My husband retired at 66 and he is back to work part time after 4 years. He was bored not having something he feels it’s important to do. He is a CPA and loves what he does. We have a vacation home where we go to stay every other month and we also travel to Europe and Asia every year. We have plenty of money and probably won’t be able to spend half of it when we died. My husband certainly is not working for money but as he said “ for his mental health “. He needs to keep his brain
Proactive .
My phylosophy about "how much money" I need has always been: I want to be able to afford the things I want (within reason since my lifestyle is not extravagent) without having to worry about the cost and without my portfolio's capital being affected. In other words, I want to be able to have my money grow enough so that I don't have to worry about how much I spend/need. After that, it doesn't matter whether my portfolio makes 2% or 20% because my needs have been met and I'm not going to run out of money.
James, you’re wise beyond your years. If I didn’t already have a great financial planning company, I’d hire yours. Spot on great advice that also takes into consideration the “human” side of finance.
Thank you!
This video really hit home for me. James, you have an outstanding way of explaining things in a clear and concise manner. I have been watching all of your videos and listening to your podcast over the past few months. Thank you for the helpful information as I am getting close to retiring!
You’re welcome Tyler! I’m glad this was a helpful video.
I think you are right on at philosophical level. However in real life, I think the cost of health insurance is the main thing that many people are delaying their retirement. It’s hard to calculate due to inflation and other factors and it’s getting more and more expensive. This is especially hard for those thinking of retire early. The rest are easier to find out and manage. The healthcare system in US really sucks.
A lot of systems in the US really suck. This country has become more and more governed for the rich by the rich and the rest of us are just here to serve their interests. Not to mention how politically toxic this place is now. These are the reasons why I'm starting to research leaving the US when I retire. There are many wonderful places in the world that have significantly lower costs, better healthcare, and a more enjoyable stress free lifestyle.
@@dlg5485 cannot agree more.
I retired at 58 and get my health insurance from the ACA/Obamacare thru the state of Md.I never get sick,..so,..it is basically an insurance policy against a catastrophic illness. It is a relatively standard Blue Shield /Blue Cross policy. Because I can get by with 40k a year (retirement account withdrawals) I get a generous subsidy that keeps my monthly premium at $104 a month. The saving grace is that they only go by income (not assets) to determine eligibility. My retirement nest egg is in the high 6 figures,....so ''means-testing '' would be a disaster for me and others. At 65 I will go on Medicare and then start spending like a ''drunken sailor''.
@@Tonymanero1960 I hope don't get seriously ill prior to 65 and actually need to use that policy because it'll put you in the poor house. Catastrophic illness policies may be relatively cheap but they are also quite useless if you actually need healthcare.
@@dlg5485 You misunderstood what I said about ''catastrophic insurance. This is not a ''skinny plan,..or,...3rd party plan. This is the ''silver plan'' thru the ACA exchange.It is an excellent plan that includes free basic services,....and the maximum I would ever pay in a year is quite reasonable.I only meant catastrophic in the sense that a major illness could not wipe me out,...and since I never get sick,...this was what the online survey thru the Obamacare website said would be the best fit for me.
Very simple for me. Take home same as in full time employment, index linked. Plus £110K lump sum. That is what I’ve just retired on here in the UK at the age of 63. I’m happy with that.
Excellent video! I just retired from a 27yr “high paying” job and all of your points are spot on! Thanks.
Your best video so far. Very helpful!
I like the clarity and smooth th flow of your professional ideas and explanations! Keep it up dude! Stay safe and blessed for meticulously preparing and sharing useful info to your followers and good info hunters
Really good sound advice from Jason. All their videos are thought provoking and easy to relate to. They are the best I have come across.
Your videos are so helpful. Thank you.
Thank you for this video. This eases up concerns about whether one has enough to retire and your perspective takes a different route which breaks down then connects the financial and emotional parts of retirement.
You are doing a great job! Thank you for explaining this mindset shift and funded contentment. You are very well spoken.
One of the best retirement videos I’ve ever seen. Thanks so much!!
Once again clear, concise, direct, helpful...thank you
The biggest issue with not working is artificially aging and possible health issues . Having to get up at a ceratin time and work for a certain number hours with income/benefits is beneficial and also gives you a certain level of satisfactiona and varius human contact. I agree once you have "enough" thats fine if you can fill the void of hours at work, The reality is if you stop working you nust find stuff to fill your time and build your social life.
Legacy: This is a great goal. BUT “If you give, while you live, you know where it goes”.
I am so impressed with your knowledge about personal finances. Congrats on founding your firm and on producing some of the best CZcams content.
So much wisdom in this video. Very sound, valuable advice.
This is one of the most helpful videos I’ve watched on personal financial planning and I’ve watch a lot. It shows that simplicity is often the best solution. Thank you, I’ve subscribed and will pass this on.
Thanks Mary-Jean!
I very much enjoy your videos. Thanks
Excellent video James! You are by far the best that I've watched so far in YT about retirement in all aspects. This one explains what is enough both financially and emotionally. Keep up the good work!
Thanks Buddy!
Excellent video, I like the "reasons" you selected as they fall right in line with what I was thinking (Financial freedom, college expenses for kids/grand kids, Legacy) but I could never quite lay this out as simply as you did, now I can. Great Job!
Thank you!
This is a very effective video. Thank you!
I started watching your videos about a year ago. I appreciate your calm, clear explanations and your focus on putting our portfolios into perspective.
Thanks for watching, Andy 🙏🏼
Whoa, great philosophical question to tackle, James! I faced a similar question repeatedly during some unhappy times in my 20's and 30s when my career in basic science research mutated into chasing grant money. Lucky for me, I had good neighbors and friends to help me escape that academic wormhole, which allowed me to ask the bigger and more important question that you very thoughtfully addressed in this video. Every young adult/college student who wonders about happiness and personal satisfaction should watch your insightful presentation.
EXCELLENT ADVICE. I was just going to ask you this question and you have fully answered it and then sum+++
Retiring can actually be a bit of an existential crisis and you give such wonderful advice on how to address this from both a financial and psychological/emotional pov.
"know your numbers" - we are given this advice wrt our health markers (blood pressure, cholesterol, etc) but it is just as important wrt our financial numbers - how much does one actually need for what, and how to secure those "numbers" in the pursuit of contentment in our 2ndHalfOfLife.
Thank you for this priceless advice ♡
Thank you for a concise explanation of “what is enough”.
You’re welcome!
This was incredibly helpful.
I'm watching this now and thinking differently about things as I watch others ending up widows before they ever get to 65. Thank you for this, even a year later. I'll be having different discussions. ETA Healthcare is definitely our biggest issue.
Excellent video!!!
Thank you a lot James (if i may) .Your summary of retirement and its possible discontents is admirable and succinct. I live in London, England but your video applies to people not just in the US but probably the whole Western world. Lets hope that exogenous factors such as inflation or a serious economic crash do not play havoc with the plans of mice and men , as Steinbeck intimated.
This channel is AMAZING! Thank you Conole!😁🇵🇷
Thank you, Maria!
Exactly what I have been searching for years
Glad it was helpful!
Excellent Vlog. Focusing on the psychological side is so important 👌🏻
🙏 Good lesson, thank you.
Epic breakdown 👍🏼✅🙏🏽🙌🏼🎉❤️Thank you 👍🏼
You’re welcome!
Excellent content James. I apparently have enough, but my job is pretty good, but a manager annoys me somewhat. With blood pressure creeping up, I may just quit.
Yes take the money and run enjoy your life stress free. How many people waited for full amount and died of stress and greed...if you enjoy your work than keep on working😁
Just what I needed., thank you.
You’re welcome!
Very good presentation...thanks much !
Thank you
Can never get “enough” of your videos. Always on point and makes the viewer think. Have you thought of publishing / posting your notes? Would be wonderful documents to collect in a notebook for reference. Too much good information to remember.
Thanks Harvey!
i agree.... or a book, which can be easier to share
Great video 👍
You have enough........when you never look at you bank account. Im now age 65.......Im a farmer..... 160 acres. In my life time Ive never " balanced " my check book. Never had a need to .....because I only spend what I need. Im now on my second truck Ive ever owned. 1981 a Ford 150 for 7,500 dollars. Now still driving my 2002 S10 pick up.......bought it for 16,000 dollars back then. Save your money..... !!!!!!
Glad it was helpful!
Retirement is scary because it's mostly a one way street. While there are always outliers, the vast majority of people who retire by choice, have basically said, I'll never make more money ever again (peak earnings). If you quit and retire, they know it's extremely unlikely to ever get paid at the same level they are before they retired, and being hired as an older worker... so the scary "what if's" take over. What if they have a health issue... they need more money for a reason... they don't like retirement and want their old job back (but they've hired someone 50% cheaper and 20 years younger already)... they get a divorce and lose 1/2 their assets. Once you walk through that retirement door... it's prob in the top three decisions you'll make in life.
New subscriber. I plan to retire from my career as an airline captain in December. In Thailand. Watching your video has officially confirmed. I have enough! I’m guilty of that “moving goalpost” phenomenon. No more. Great video!
Best of luck!
Good video!
Thanks good video
Deep thinking here. 👍
So good. 👏
Thanks 🙏🙏🙏
Just when I feel I have enough to retire, The Market drops 40 percent.
Yes!
great video for reflection. I guess when passive income > my present income that's enough.
Create a budget now! I did need to have a number. When I hit it I retired at 59.
For my wife and I, this last paycheck on Friday was the final time that we had to take a giant chunk of it to contribute towards our kid’s college educations. Three degree programs including undergrad educations plus med school, an MBA, and a teaching credential with masters in education. Paid for it all and as you mentioned we should be elated to have gotten them through it all with no debt but it’s oddly unsatisfying. There is this weird feeling of “OK, now what?”.
Now use that spare cash to pay off other debts, create an income stream by investing in rental properties, buy stocks that pay dividends, learn how to trade options, and/or start a business. Also, don't forget to reward yourself a bit.
@@zzanatos2001 We don’t have any other debt and I sure as heck don’t want to start a business here in California. This week I ordered a $1,000 RC car on Amazon for no reason other than it would be fun to play with it with my nephew. Good times!
It’s definitely an adjustment!
You have now done your duty as a parent and raised & educated your children, now it is time for you and your wife to live your life/lives. ENJOY!
That was very nice of you to do that for your kids!
I would have been ready to retire but the costs of small homes in my retirement state went from 150k to 350k with mortgage rates over seven percent. So now I'm needing hundreds of thousands more to retire.
I believe I have hit my enough number to supplement social security, which will begin in 6 years. I will continue to contribute to my retirement accounts for the next six years as well. Would you suggest a 50/50 split of fixed income and equities? I am looking more for financial security than making as much as possible.
Wish I had an FA like you in the UK!
Pete Maythews at Meaningful Money seems to have great advice! There are others as well!
How do you help someone get out of the mindset there is not enough?
I read that book...a lot of what u talk about is in that book. You should create a book! Let us know! Great podcast.
Just to add, one billionaire in India died at the age of 62 last week another died at 58 due to stomach cancer, he was an American and another American died at 53 - all these death was in August of 2022. What is the point of this, no one knows when it is time, leave your job once you can get Social security, please don't wait. Life is too short. Life is meant to be enjoyed, average age of working Americans before retirement was 40 years.
Good point. Life is precious and we don’t know how long we have.
And there are hundreds of thousands of broke and struggling people that live past 75 that just got evicted and will end up homeless
Earnings of outgoings happy? Having extra looking at others with more or not making it?
Wow, this is so time appropriate. I am trying to figure out what to do. I want to retire and simply work around the house and continue with my side gig. But I am trying to figure when I have enough to allow that. I am 67+ now and we have decided that I shouldn't take SSI until 70. But that means that I have to live off of my retirement funds for 2 1/2 years. Would that be enough and have enough for another 20 years.? Very thought provoking and timely.
do the "sums"/math. as advised : identify your future goals and possible needs, put an amount to it, secure funding for those amounts....
i am going to do an Exel spreadsheet in order to clarify these things for myself, otherwise it just remains a messy mess in my head
Now in our early 50's we've already hit more than "enough" but why would we ever stop as saving for retirement completely kills our income tax liability both federal and state?
No allocation of inflation when forecasting future needs…. 😮
Funding assisted living is essential to me
This costs $6k-14k per month. Even the most expensive isn't nice. Think no haircuts or getting nails trimmed. You pay extra to get your clothes laundered. Basically nothing but food and a bed are included. If no one is coming to take you out for the day, most are not allowed outside even if the home advertises beautiful porches and gardens. It's all just marketing.
Yeah usually you get to understanding these things by the time it's way too late to do anything about it.
All very good advice. I know you are using arbitrary numbers in order to make a point but the $750K that you are withdrawing 4% per year should be making you passive income such as dividends so therefore the principal amount should remain the same or close to it. You should not be depleting your nest egg.
Exactly plus if you have no rent or MTG, $750K plus SS should be a nice content retirement
Those numbers almost exactly match mine. Interesting coincidence. The only difference is my other income will be a pension, and not social security. I cannot like this video ‘enough’!
How Do I Know When I Am "Kenough"?
I didn't remember hearing about inflation--that future $500K for example seemed to have been in today's dollars. Otherwise I really like your videos. They give good financial info but also bring in the other values and perspectives about retirement than just the financial. Thanks.
You definitely can retire w $500K unless you want to live like upper class
You're welcome!
Can I turn off social security benefits and go back to work and reactivate it one year I'm 64 years😊
I think these are the rules re. stopping SS after one has begun drawing. You can do so within the first 12 mo's. of drawing. You will have to repay everything you have received so far. And you can only do this once.
Get a CALPERS or CALSTRS pension for life with COLA and you will be secure for life!
One thing you don't discuss very well is margin of safety using the 4% withdrawal rate. If your income requirement after taking social security into account is $80,000 then it would be prudent to model a withdrawal amount of at least $120,000 so you can handle unexpected expenses. Even better would be to have a 100% margin of safety which is to say that a 4% withdrawal would equal $160,000, essentially a 2% withdrawal rate. Have you tested a 2% withdrawal rate in the context of a Japanese investor retiring in 1989? That seems to be the ultimate sense of a bombproof strategy
"even better would be to have 100% margin of safety which is to say that a 4% withdrawal rate would equal $160,000,essentially a 2% withdrawal rate"
What does that mean?
@@johngill2853 A 100% margin of safety is to withdraw only 1/2 of what a 4% withdrawal rate entitles you to. E,g. if you need $50,000 in retirement you would need a $1.25 million nest egg. So a 100% margin of safety would imply that you should have $2.5 million nest egg if you plan on retiring. This allows you to take unexpected expenses in stride
@@jorgeferreiro9783 definitely agree with that. But the problem is most likely you'll leave a very large sum of money and that is fine if that's your goal. Not quite mine but I can respect your choice if that's yours
@@jorgeferreiro9783 would it not be cheaper/more achievable to have say $100k set aside as an emergency fund, which you access in the event of a significant market downturn?
I have £ 5000 and want to retire. 😢
More like, how do you know when YOU ARE ENOUGH?
Get a $1 mil life insurance policy and then you can give $500K each and enjoy the fruits of your labors for yourself.
Who makes 40000 on ssi? Out of touch with reality. The working guy gets around $1500 to 2000 a month
Most people who are good with money have investments, pensions, small businesses, rental properties, 401K and/or Roth IRA accounts and don't retire solely on Social Security.
"Most..." Not true
I'm just a working guy, my age 70 SSI is 4100/mo and fra is 3600 mo
I make 50K SSI... I started taking it at 70. I'm 71, Single, and I STILL WORK.... at home 100%! My Plan is to retire in a couple years but who knows. I go on a vacation almost every month, have no bills or mortgage, only utilities and car/house insurance. My health is excellent and I'm living my best life. I have enough. Save 64K a year in my Roth 401K, and max out my Roth URA so all gains are tax free. Life is good. I love my job, (and Im VERY good at it), my management, and friends.
Instead of Leaving $1,000,000 behind to your kids? Why not just buy Life Insurance Policy for that and Live on your money instead? It seems that wud be better way? But as single no kids I am not concerned about leaving LG Legacy to my Estate? I want my last check to bounce 😂
I do not have enough enough in portfolio yet? Never will? But I will get Pension and Soc Sec together with be about $1 million or 25 years so don't really Need that in my Account? I won't be rich but can buy better brand of cat food? I am Single, no kids so I don't need to leave a Legacy? If you want to leave that much money to kids? Why not buy Life Insurance Policy for that and Live on your money instead of leaving it for them?
Trust the white guy everyone
Dave Ramsey says you need $3 million, Suze Orman says you need $8 Million. ???
This guy is so far off reality- who has hundreds of thousands if not more as he refers to? Who's world is that in?
Uh…me… and probably most of the people who watch this channel because normally if they are researching early retirement, they have considered it and planned for years for an early retirement. Not something you stumble into normally.
Excellent video!!!
Great video!
Thanks!