@@audreyandrea460 travel includes on foot, bike or bus too. Everyone needs a change in perspective. Now go impress yourself, get away from this device for a day.
As a soon-to-be retiree, keeping my 401k on track after a bumpy 2022 is a high goal. I've read about investors generating up to $250k ROI in this present sinking market; any suggestions for increasing my ROI before retirement would be greatly appreciated.
there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
She appears to be a true authority in her profession. I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. She owes me a fiduciary duty to act in my best interests. I set up an appointment to use her services.
In 1990 the builders motto was “your house should reflect your success in life. -the bigger the better. I got taken in. Do not get over housed and highly mortgaged Happiness is a comfortable size house and mortgage free. Also buy a two year old car and drive it for ten years Finally no costly toys You never know what lies ahead
we operate differently in Australia - start out with and possibly stay with a basic 3 bedroom house - one toilet, one bathroom. 4 children share 2 bedrooms. Plenty of backyard or nearby parklands.
Seven years after retiring, I became virtually debt-free. Claimed my RN pension at age 55, as I already had 30 years of service at my employer .At 62 I claimed my Social Security benefits. In the subsequent 9 months,with Social Security benefits as my second income stream,I cleared all my debts. Am replenishing my savings and it feels wonderful.
I retired at 68, after 52 years in the workforce, in 2019. I had put myself in the position of having no debt and am in good health. All my household bills (utilities, insurance and taxes) total less than 15% of my monthly SS income alone. I still save, have a cash emergency fund and I'm enjoying my retirement to the max!
actually, this is possible, in a paid off house, and depending on where you live. A your mileage may vary. I doubt you could do this in New York or New Jersey! my baselines: Mortgage: 0 Electricity: 8.18 - solar. and I leave the lights on. system is paid for. Gas: 35 Water: 30 Though, I need to not over water the garden in the summer. Trash: 15/month (highway robbery!) Insurance: 75/month Property Tax: 180/month. of course, it goes up if I count a specific budget for home improvements or repairs. But baseline taxes, insurance, utilities... the house... it's not brand new, about 30 years old. Updated over the years, 2 year old roof, 10 year old mechanicals, half acre and it's not a single wide.
Social Security only for us as well -- mid-sixties with $5,374 in monthly SS. Zero debt. General fixed expenses: $16,488 Groceries/Entertainment/Dining: $24,000 Travel/Gifts: $24,000
Hi Geoff! Thanks for another great video. I retired end of May with oveer 38 years working in insurance. My wife and I are debt free and have been for a couple years. She plans to follow me into retirement in one to two years. I just purchased a used Luxury SUV (2021) with a year of new car warranty and two years of certified warranty. The car was a lease and only had 5600 miles from new. I had put a deposit on a new SUV, but couldn't justify the additional expense of new when this vehicle ($5k less) did "it all" as well. The one thing you missed and is SO IMPORTANT is your health. Maintaining good physical and mental health are critical. NOT doing so is catastrophically expensive. Work on your health as well as these five for ultimate security in retirement. Cheers!
Marginal utility is a great concept. I got into serious road biking at the start of the pandemic. I bought a 12 year old road bike that originally sold for $4500 for $500. Last month I began to think about getting a new road bike. The bikes that are better than the one I own are about $5k. I finally decided to ditch the idea of a new bike because it wouldn’t provide me $4500 of additional enjoyment above what I have now. I can live with the old bike; it provides what I need.
@Niklas Gerhard *Alicia Seda* is one of the best Professionals on bitcoins I know. She has a way of making huge revenue in just one week. She is my investments manager. Her services assures you interest, daily and weekly.
My husband and I have never carried credit card debt-we always pay off the cards monthly! And one of the best decisions we made was to refinance from a 30 year fixed mortgage to a 15 year fixed. The house has been paid off for several years now and that allowed us to pay for the kids' colleges without hardship!
40% of retirees have debt. That really surprises me. The only way I'm going to be able to get by in retirement is by having no debt. My house will be paid off in 5 months; retirement in 11 months!
@Kate Burkes: We retired with the house paid off. When housing prices around us went up it caused property taxes to go up. We've been quite surprised at how much property tax we pay now that we've been retired 15 years. Plan for that.
If I retire it will be in 5 to 10 years. Considering my personal issues, I have not decided on buying or renting. I could buy a new home cash but adding the variable of taxation, it might cost me less to take on a mortgage. Too many financial decisions come down to taxes.
If your debt is in a mortgage on a rental property that brings you more than the mortgage is, that’s not bad debt. That’s a good investment. There are probably lots of retirees who bring in rental income like this.
Me too. I am on pace to pay off my primary resident $328K mortgage in 25 months, this December will be my last payment and I will hit 50YO in Oct. with 3 other rentals, 401K and healthy saving, I hope to retire by 60. These houses are all in the SF Bay Area.
Diminishing Return: I really wanted a cool “toy” car. I looked at lots of options. I ended up with a Mustang GT convertible. Other cars were 2-3X in price but not 2-3X in the fun factor (my goal). I bought used and paid cash. I discovered Mustang clubs, I loan it out to friends, and love driving it. Right now, my friend Myron and his wife are having a blast with it up north. That is part of the “fun factor” for me (something that wouldn’t work if it was a “supercar”).
This is my fifth year after retirement. I’ve been following the 4% rule thing, but this isn’t really how hard I expected things to be. I still have about $460k outside funds in my IRA to invest in stocks. Pls how do I take advantage of the market turnaround?
now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
A lot of folks downplay the role of advisors until being burnt by their own emotions. I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.
This is really nice. I worry that I have a couple more years before retirement, and I want to switch to using a financial advisor, I could really use the expertise of this advisor.
I started out with an FA named Nicole Desiree Simon Her honest approach gives me complete ownership and control over my position, and her rates are incredibly affordable given my ROI.
I just googled her name and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a call.
Thank you. Just what I needed to watch. My wife and I are directors of our farm business and own property, plus small pensions. I am nearly 55, my wife is 52. We have started to save to retire from the farm, and possibly live on rental income, I'd really appreciate you go LIVE and talk about how to earn passive income online and retire comfortably, let’s say $1M.
It isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing.
@@jessicasquire I totally agree, I'm 60 and newly retired with about 1.2 million outside retirement funds, no debt, and very small dollars in retirement funds compared to my portfolio balance over the past 3 years till date. tbh, the role of the investment advisor can only be overlooked, not denied. just have to do your research in finding a reputable one.
@@patrickbrussels4454 that's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well.
@@Erikkurilla01 My specialist is *STEPHANIE KOPP MEEKS* I found her on a CNBC interview where she was highlighted and contacted her a while later. She has since give passage and leave focuses on the protections I center around. You can turn her upward on the web assuming you care oversight. I fundamentally follow her exchange design and haven't lamented doing as such.
Invest in taking care of your health. As we age, it gets less reliable and not a "given". ...and without it, all this talk of financial issues wont mean squat if your health is shot.
Can’t agree more. I will be debt free by this December and 50 years old. With no debt, 3 paid off rentals, 401K and cash and $200k 9to5. hopefully I can retire by 60 and start collecting ss by 62. 10 more years to go and This is all in the SF Bay Area.
Here are my 5 tips: 1. No debt of any kind, even if it’s zero interest. 2. Don’t stop saving - resolve to put away 10-30% of your monthly income. 3. Don’t spend more than 30% on any one thing in your monthly budget. 4. Keep a 6-month emergency fund in cash. 5. Reduce stress and stay healthy - rest, eat, sleep, move around, keep learning and avoid injury.
Good advice but that prevents many from living for now either by avoiding nice purchases, vacations, etc or by working forever to pay things off. They save all this money, only to die 6 months after retirement, never having truly enjoyed life at any time!
@@RichardinNC1 It's a fine line. I've known that too happen. A man worked in the refinery in Texas for over 30yrs. He retired and died a few years later from pancreatic cancer. I remember him being so mad! But his wife and kids were set. A better way it to always ask... Do I need this or do I want this?
If you're under 65, health insurance could possibly eat up 30% or more of a modest monthly income. $4000 income (fairly common retired person's monthly income) would be over $1300/month for health insurance which is not uncommon. The affordable care act ("Obama-care") may be able to save you from this fate though depending on the state you live in and what you qualify for.
62 and 8 months. Will begin receiving Surviving Spouse SS payments in August. My husband passed away 1 month ago. Retired CFO. He took good care of my stepchildren’s and my financial future. He was very physically active but cancer took his life. RIP
I’m sorry you lost your husband. Please carry on in his honor and out of respect for him - you know that’s what he would want you to do. Sounds like a good guy……..and I’ll bet he loved you and your children very much. Damn cancer. 🇺🇸
I am amazed that most people need to ask their financial planner if they have enough money to retire or if they have enough money to purchase something. I have been my own financial planner for over 30 years and I am kicking azz-:) And I managed a warehouse. I am not some college educated person. I went to the school of hard knocks and won-:)
We retired in 2020 and had paid off the mortgage a year earlier. I manage the money and let my wife know what is going on with bills and investments and retirement income and we regularly talk about them. I know the credit card balances and pay dates as well as the checking account balance. I know when the various insurances and property taxes are due. I know the monthly utility bills and vehicle registrations as well. I have set up the bank to auto pay most of our bills. The key is to know all this information so that there are no surprises. Another thing that will help a lot is to lose weight and eat better. Managing all of this takes time, but in retirement, you have a lot of time and therefore, life should be fairly easy.
TED...some thing to consider...while you are able to do all these things today, what plan do you have for the onset of dementia or cognitive decline? I am 72. I have more financial education that 99% of Americans, as I am a college professor who has taught financial planning and retirement planning for the past 14 years. Prior to becoming an academic, I was a financial services professional for 12 years. Prior to those two careers, I spent 28 years in banking and finance. It is great that you have your financial dates and amounts and a plan in place...today. But if you passed tonight, would your spouse be able to replicate your capabilities? Continued success in your retirement.
I agreed to that. I recently replaced washer, dryer and freezer. A/C and stove will be next before I retired at 66 and a half Appliances are expensive these days and being in debit with these is like asking bankrupcty. Car needs to be paid as well
Don't forget a retirement plan for your oral health. I recommend to my patients that they get their teeth fully fixed prior to retirement. That way all they have to is maintenance visits during retirement.
My spouse and I are adding a variety of stocks/ETF to my present holdings for the long term, We've set aside $250k to start following inflation-indexed bonds and stocks of companies with solid cash flows, I believe it is a good time to capitalize on the market for long-term gains, but it wouldn't hurt to know means of actualizing short term profit.
Some people,maybe lots of people,don’t seem to ever understand simple math. I don’t think there’s any advice that will help most of these people. Almost all people who are solid in retirement were that way thru the years. Pay your self first..live with in your means..always know your limits…. Usually a life time of foolish decisions it’s not turned around in one year…. Best channel on CZcams thanks
I could have retired years ago. The problem is I do know what the future might be like. I lived through the 1970's and see it happening again. I am fully employer and collect two different pensions. I could quit today but tomorrow is always in question. As long at inflation is a question, and as long as taxation is a question, I am staying employed, it is my best alternative. If people want to understand their position, the need to understand the time value of money. A simple google search would tell them that. The other thing that would help would be a search on NPV. That would help in making good decisions about what they should be investing in for the future.
Thanks for the wisdom/knowledge you imparted in this video! One philosophy that I operate under is "Pound wise, penny foolish". That is to say, if its not very expensive and you're not going to buy it frequently, go ahead and enjoy it. On the other hand, if its going to be a major purchase, say over $100, then think about it for awhile, maybe a few days. If you still feel you want to buy it after your heads cooled down, then go for it. Most of the time, this has been effective in preventing a bad purchase.
I see it has been said, but I will mention also. I have always lived below my means and I gain a sense of security from that as I see money saved and invested consistently growing as I approach retirement.
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy.
My company made us a good offer when covid hit. I decided to retire. Since it came unexpected I had not much money in my 401 K. My husband passed away shortly after and from the little life insurance I paid my condo off. Thank goodness I have no debt. I don’t have a lot, but I can make it. My association fee is 400$ a month and then utilities, which is about $50. Thanks for your video!
The info is great as always, but with the clock in the background I can see how much effort goes into just capturing the points you are communicating. I’m sure there is much more time in the editing and the preparation of content. Thanks for all your hard work preparing us for retirement!
Something that works for me is that I create once a quarter a balance sheet and income statement. I create these using GAAP and use them for planning. You can do anything if you have a plan. Even if do not understand accounting principles, knowing where you stand will help you plan ahead. The income statement is very illuminating. It tells me what I am spending my money on and helps me understand what I need to adjust in the future. It simply put list your revenues and expenses categorized. You would be very surprised as to how you are using your money.
I am a new viewer and I appreciate your explanations. I’m no dummy, but finance always made my eyes glaze. You make this topic so much more understandable. I was particularly impressed when you mentioned tracking spending. I’ve been a member of several support groups for years, one of which deals with money. “Keeping my numbers”, by writing down what comes in and what goes out was life-changing. Thank you so much for your work.
Concise, straight to the point, no frills and spot on as always. One thing I'd add that my Dad used to say is that if you are 55 years old you should have your house (updated and remodeled as needed) and vehicles paid for. I understand that the recently low but now increasing Fed Funds Rate might have lead to rebuttal on the house point. But this was not only a thing based on financial reasons but also on peace of mind going into your retirement. I worked hard and was blessed/lucky enough to have achieved both house and new 4Runner paid off (bought 4Runner with cash). As you age past 60 debt is not only a drain on your $$$ it's also a burden on your mental well being. It's a rough go these days and will only get rougher IMO. Best of luck to all.
Your dad was a wise man. I will hit 50 by this October, with no debt. 3 rentals and 1 primary home all paid offin the SF Bay Area. Family of 4, my rentals will more than cash flow my 2 kids’ college. Start saving when you are young, don’t overspend like most of us Americans.
13:28. To track spending, I recently started using my bank's website. It makes it easy to designate transactions for various categories, and gives me a cumulatuve pie chart. I can compare with previous months. When I started this, my expenses went down significantly. It also allowed me to more accurately predict weekly expenses like food, gas, and a little mad money. This allows me to withdraw cash for those items to control spending while robbing Peter to pay Paul for extras without falling into debt. It's a fun game that works for me. This often reminds me of what you said in one of your other videos: "Every dollar has a job." Thank you so much for sharing your wisdom -- helps me every day. -- a single retired RN and grandmother.
It's my third month being retired now. And life hasn't been so difficult as I thought basically because I put my head down and made ways for other source of Income. I'm a huge fan of earning more money, and I think everyone should have a side hustle. Side hustling can allow you to earn that little bit of extra money that can help you achieve your financial goals faster - whether it's paying off student loans or saving for retirement.
Of course, morally and ethically, as long as your side hustle does not depend on stripping other people of their assets and income sources by scamming them into poverty while you continue smiling. Always consider: "Would your mother/father be proud of what you did today." There is that legacy and reputation beside you everyday, does that have any intrinsic value to your decision making or is a selfish nature sufficient for a quality life.
Great video! I'm 55 as of yesterday and financially retired. I work in my own business for the enjoyment and my dividend portfolio pays more than my monthly expenses.....and 0 debt period. I mention this because I love learning from your videos on what people have done wrong at the doorstep of retirement... when it's already too late. Your advice to them allows me to make possible corrections before I get there. Thanks for all the valuable information! One thing I would mention to people is to create an income statement and a balance sheet. I adjust it monthly and when I add to my stock positions to calculate the increase in monthly income from the dividends.
ONE WAY TO PAY OFF the mortgage faster is to DOUBLE UP on the PRINCIPLE of the payment. If you look at the statement, a pretty low percentage of that payment went to principal. If you double that amount in your next payment, AND specify that "overage goes to principal" (otherwise they may just funnel it into the "escrow") that will cut down an ENTIRE payment. You won't see it until the end of the payments, but when I was able to pay off the balance of my mortgage, I had cut the final payment almost in half. ($10Ks)
One of the commenters said you’d better have good health, cause without it, well, you’re in deep doodoo. On that line of thought, I’d like to add that getting the best Medicare supplement policy there is, Plan G, is the absolute best bang for your buck, and in our older years you’ll be needing it. I feel secure, both emotionally and financially with my Medicare Plan G that pays for just about everything that Medicare doesn’t.
We’re looking at Medicare right now. It was really important for us to check out some videos about the pitfalls of going with the Medicare Advantage plans (often free) compared to the Medigap or Supplemental Plans (like Plan G). The big concern is being able to qualify medically in the future as we age and develop health issues.
We track every penny that come's in an go's out for everything, always have an always will, all done on our pc weekly, an monthly an yearly. But we're frugal an watch our pennies, lessons learned from my grandparents who lived thru the depression. I always ask myself, do I need it, or do I just want it, before I make any purchase, an I always do my homework before I buy anything, an I always take at least 24 hrs before I make a purchase for anything, kinda puts a stop to impulse purchases. Thx for the vid Geoff
Retired at 59. Purchased retirement home in 2019...sold primary home 2022 and paid off mortgage for retirement home. No brainer....no debt...I take one hour per month to go over budget and cash flow.
One friend was from an italian family that pitched in and bought her and husband a house when they married. What a great idea to reduce debt and support the new family! Then you pitch on for the next couple. I love this!
20 years ago I stopped carrying a balance on my credit card. Pay it off monthly. Always ask myself, " do I really need this purchase?" Drive a 10 year old paid off vehicle. Only debt is my house payment which I make extra principle payments months. Its all about living frugal.
I agree with most of your opinions regarding retirement. We have no debt. Two new vehicles last year. Now doing some minor home improvements over the next couple years. Plenty of SS and Ira Income. But I listen to your vids when they come out. Thank you!
Turn 63.5 in October, need to retire from a mentally exhausting job I've done for 28 years....I plan on working part time, I have a mortgage 3.2% no credit card debt, my wife provides full time care of her 92 yr old disabled mother who lives with us. I'd love to sell our home in our great market and could make about $200k, but can't.
Those of you that have rental properties like myself and are planning to sell them, you must remember that all the depreciation that you have taken must be paid back the first year after you sell. For myself, it is over $100,000 each. Take that into consideration.
Geoff! Your videos are truly inspiring to do the right thing and to keep doing the right thing for the rest of one’s life… Thank you for all your hard work. I look forward to watching every video you have done. Respectfully, JimmyUSAF 🇺🇸✈️✝️💜🙏🎄👍😇🇮🇹🌎
I am new to your videos, and am enjoying them. A subject worth discussing, if you have not, is managing the drawdown of one's IRA(s) and other nest eggs in retirement year by year, especially during major market downturns. Liquidating depressed holdings to take a chunk of my money out of a market that will rise again without the future participation of that money makes me cringe a bit. Surely there must be some strategies to optimize the drawdown. Have you covered this? And if not, could you?
Retired at 59, spouse younger and has a good job $50k, I took SS at 63, got $15,000 annual income from passive side gigs that let us write off a lot, rental property brings in $7,000 annually. Debt is $40,000 @ 2.3% (I consider that good debt). Our cash flow is great. Best advice, live below your means, max out retirement and HSA savings, and create a budget.
To achieve financial independence and become successful in life, Start investing. Really spent my 30’s and 40’s working for a company which was a waste of my youthful days. Recently started investing in stocks and life feels much more easier... Invest and stay rich always!!
I wish I could like this comment a million times. I have my interests set on investing to better my life, it’s quite difficult to start up without proper guides. My question is, how best can I achieve a productive investment? Any good tips or recommendations will help a lot.
@@Erdogan432 Generally, attaining a productive investment requires experience and a higher knowledge. That’s why it’s important to have a financial consultant that would be a solid support structure while investing. I operate with (Eula Roswell digital) a professional consultant who partner with a wealth management firm. Working with her has been a promising experience so far with so much returns acquired
@@Arinya671 Just checked out her page on the internet. Her work experience and qualifications are pretty impressive, I dropped a message and waiting on her reply. Thanks so much
Eula is the best in this space and I’m happy to come across these recommendations. I’ve worked with her and I can attest to her great skills and experience in financial planning and wealth creation. My biggest flex is having an expert like her guide me through making great investments, I will highly recommend her to anyone who wants to be a successful investor
When your taking social security you go over the caps set up on earnings you go into the local office fill out the paperwork. They can take out a small amount. Over a year or so it can be paid back. You don't loose the whole payment Once it's paid back you return to get 100,%. Other options do your taxes then flie the extension. Have some time to get up what you have gone over pay them back if you can.
Truly enjoy your channel. As a New Zealander our retirement/pension automatically commences at age 65 and continues for the rest of your life. So I was somewhat surprised that in the USA, superannuation employs an expiration date. That aside thank you for your clarity in regards to making retirement issues simpler.
Here in the U.K. a colleague got a 24% uplift in his state pension by not taking it until he was 67. Unfortunately they changed the rules a couple of years later and I won't get any state pension until I'm 67. The current big debate is the "Triple Lock". Due to the Bank of England's inability to control inflation the state pension is going up 11% this year. Meanwhile they are wondering why nurses are complaining about a 4% pay increase offer.
No, the federal retirement system in the US (Social Security) lasts for the entire lifespan of the retiree. There is no "expiration date" except death.
This was good easy advice to follow. One way to invest is to buy the S&P 500, open a Roth IRA, save money. Work till you have maximized your social security. If you buy stocks, you could buy ETF's like energy, health care, technology. Just a couple of ideas.
Thanks great info, we held large credit card balances for years, we paid them off with a HELOC multiple times, it was a vicious cycle that we finally broke 10 years ago, we started gaining financial traction exponentially and never looked back, needless to say we pay everything possible with our credit cards now although we pay the balances off every month religiously no exceptions
I’m glad to see another retired person who still has a mortgage. My husband was in the military for 20 years and then took a job that caused him to transfer a lot. We only bought our house a year before retiring; 2.5% interest and a house payment that is less than half what rent is going for here. If we had to have our house paid off before retiring we would never be able to. Life is definitely good!
Can you pls address single, never married, no children retirement! Rarely is this subj approached/discussed! I'm sure that I am not the only person who fits into this category! 😂 Thank you. LOVE YOUR INFORMATION!
I took SS at age 70. I am still working full time. I was laid off at abot 2000. When I got a new job, I put eliminating DEBT as my number 1 priority. I carry no CC balances. My mortgage is paid off. I put the maximum into 401k. My children have sond financial footing and are not extravagant. I'm looking at eliminating things I don't need and don't really want.
I know exactly how much me and my wife spend on essentials. I also break up CC expenses into 15 categories that I track each month. You have to know where your money is going. Yes I’m a number geek.
I'm 66 I waited till full retirement age, I'm renting have no debt and have an Roth, IRA and stocks, high interest savings accounts, I bond. I'm still working part time, and a managed investment plan. I notice you are talking a lot with the spouse or married couple. I'm single. Best advise, thanks you, cheers...
The realistic comments on rental real estate are on target. The properties that we bought over the last 10 years are finally spitting out enough cash flow to provide for my retirement. But it took a lot of work and time to get to this point.
We took SS at 62 each and I have not regretted it. His job went away at 61. Due to health reasons he took SS early and went with a part time job. We were raising our grandson at that time. I was teaching. But after cancer I retired at 52 and have a pension. For the last 20 years I have worked in education part time and am retiring fron it. We still had a 16 year old. Due to a small inheritance we sent him and my daughter to college. My parents died in their 60s and didn't collect much SS. My spouse still has a small part time job 5 hours weekly he enjoys. I hope to have the same. No debt but a small Home Equity loan. That helps. We don't live a high life but do go on vacation and do things we enjoy and volunteering. Living on a budget, saving into sinking funds and tracking spending keeps us out of debt.
CPI used to be an actual “basket of goods”. Now they throw in a bunch of items I NEVER buy. Cost of living should measure only the things you need to live: rent prices, house values, gas, electricity, food, clothing, and medical expenses. Just those!
Social Security is the best inflation-protected annuity out there. I have another 25 months before I turn 70, by deferring benefits my monthly number goes up by around 17% this year. A 9 percent COLA is extreme, but even at 2 or 3 percent you're still getting over 10% on an inflation-adjusted monthly payout for the rest of your life. It's an insane return for zero risk, just sayin'.
I am going to wait until 70 also, no choice really since the house will not be paid off by then anyway, but making my husband keep working and drawing social security at 67 since he smokes and is a spender, so we will pay off the house, any outstanding medical debt and then save it for travel. That is the plan anyways.
Forty months until I turn 70. I hope to defer taking social security or my pension until I turn 70. My 401Ks and other investments are down by 15% from the all time market high but I can scrape by because I'm debt free and own my home outright. Once I turn 70 my income will be more than twice my cost of living but now I need to bite the bullet and avoid stupid purchases like a new RV, and most importantly not dying of this damn virus. It almost killed me twice already.
I will be taking my SS at my full retirement age since my wife will be collecting half my SS payment. Her payment is capped at half my full retirement payment so waiting longer doesn't make as much sense.
@@jamesfarmer876 I think you can file and suspend which allows your wife to take 1/2 of your FRA SS while you can wait until you are 70 to take yours at a higher rate than your FRA. I am not a tax or social security professional or married but you can search UTube for spousal social security to verify this and to get spousal strategies to maximize this benefit. I took mine at 70 and enjoying it. Good luck with whatever you do.
When it comes to things like artwork, or in my case historical documents, I know the value of what I have collected but am not considering the future worth. Having a Picasso hanging on my wall, or a letter carried by the Hindenburg, is of more value to me than what I could sell it for. It is important to know the value if you ever needed to sell but don't forget the value you get from the enjoyment of owning. My recommendation in these cases is buy what you enjoy not what will make you money.
I too have items that I enjoy that are basically collecting dust. They have monetary value if I ever need to sell them but I don't count them in my net worth. Guns. I had a friend who recently passed and I am executor of his estate. He collected a lot of different things with the thought that they would help fund his retirement. He died at 70, pretty much broke, and owed the IRS more than he was worth. Owning a collection should be, as you said,for our personal enjoyment, not as a way to fund retirement.
I’m 58 and I’ll be debt free in January 2023 except for my mortgage. Need to stay on track to make sure this happens ! Retiring in December 2029 when I’m 65 1/2, plan is start collecting SS at 66, one year short of full retirement age 67. I’ll have 37 years and 8 months with dept of defense, pension will be about 42% of my top 3 annual salaries and I’ll get a lump sum cash out on my annual leave balance which should be about $19k after taxes.
I may or may not ever retire. My full retirement would be the 66 and 1 half year. Currently I am thinking that I might go to 70 and max out my social security. Even then I might not fully retire. I might go into teaching at a local college or go back to consulting. Neither of these provide me the income I would want but in retirement would create a nice stream of income.
I will be debt free by this December and 50 years old. With no debt, 3 paid off rentals, 401K and cash, hopefully can retire by 60 and start collecting ss by 62. This is all in the SF Bay Area.
Getting completely out of debt before you retire makes it sooooo much easier to wait until 70 to file for your Social Security. Of course the most important part is taking very, very good care of your health so that you actually get to 70! Investing in your health, strength, and flexibility throughout your lifetime translates to $$$ in your pocket that would otherwise go to health care costs in later life. And floss! And, maybe, get off my lawn!
Me and my wife plan to retire at 60 and start collecting SS at 62. And yes, there is nothing more important than health, those millions mean absolutely nothing if you can’t spend it.
Inflation is my greatest fear in retirement! First, I cannot convince my wife that inflation exist. And I planed for 6% annual inflation during retirement not for 11+%.
Thus, fixed annuities are worthless. My mother's lifetime of accumulating a big stash of cash is now being destroyed by inflation. She is unwilling to make any changes. She won't even buy an out-of-state CD @4.85%, but buys locally @3%. Mini Corporate bonds @5-10%? Nope.
I purchased a used electric car. Maintenance is very low and charging at home is $30 per month (2,000 miles per month). This year I changed work locations and shortened my commute by 75%. I would like to buy a Tesla but own a Nissan Leaf. The Leaf cost $13,000 to purchase.
I am amazed at the number of people that do not know what their costs are every month/year. How do you ever expect to be in control if you don't know that? We love looking at our numbers and saying. We have 2 or 3 thousand more we can blow this month, what do we want to do.
Everyone seems to focus on how to get the maximum total payout when it comes to Social Security. That is actually meaningless in my opinion. What matters to me is cash flow - both at the start of retirement and at the end of life. Will I have enough income and savings to sustain my standard of living until my last day?
I always enjoy these presentations. Even if to put something’s in your life into perspective. Cash flow projections into an unknown retirement are difficult. Be sure to put a very large budget for miscellaneous. I have been retired for two years. My “lifestyle” expenditures are much greater as I intend to live life. But, still within a plan. One last comment I would make. For me, I have no problem with a budgeted reduction in investment corpus. Trying to retire and never drawing on your saved funds may be doable, but may also reduce your enjoyment factor. Don’t really concern myself with what I do or do not leave to my children in my estate. Here again-in balance.
Geoff, I'm thinking you were able to read my mind! 🤣 We are discussing whether to make an expensive purchase or a similar much lower cost purchase ... we are leaning toward the lower one. Dividends from investments can provide a nice income stream. Jack Bogle had said do a 50/50 or 60/40 stock and bond split in investments and a person will be fine. Cash is also important to have, I saw in in 2007/2008 and I see it now. Using cash reserves vs selling investments is why you want it. Yes in high inflation you lose purchasing power but 5.9% or 9.1% is much less than 15% or 21% that someone would lose by selling an investment now. Once the investments go up replenish that cash reserve.
Retired, I know where every penny goes. Debt free, still have my 2006 Honda Accord and while clear coat is pealing I have no plans to get a new car. As I see those expensive cars so many drive, I smile knowing they are not likely saving for the future.
fooling yourself, are you not, to make yourself feel better. Those drivers did much better than you and have so much money they can drive what they like.
It is all about how much you can afford. If buying a $260,000.00 exotic car is not a problem, why sweat it and drive a 20 year old Honda? And why is the clear coat peeling on your 18 year old Honda? Well taken care car paint lasts decades with no issues!!!
@@pagosabob10 There are many excellent products out there on the market place. You may have to get recommendations from a professional detailer depending on how far gone the clear coat is. I also had a Honda Accord many years ago and it was also parked outside. I always kept it washed and waxed and there was no degradation to the paint. It can be done but does take lots of work.
Staying single is #1 on my list....I was able to retire at 59 last year, only having to finance myself in retirement....my life is much more manageable this way I will tell u!
That I did u would change your tune...insanity is repeating things over expecting different results! Lost half my stuff thru divorce.... once is enough!
Maximizing income during retirement would also be a good thing. Work minimum to reach max of income limit. This would give retiree a chance to be active, while exploring. Work can be hobby related too…travel, consulting, e-com, business owner, etc
Every month we sit down and review our budget. Not hard to do. This gives us peace of mind & I suggest it be a routine. Knowing your monthly cash flow relieves a tremendous amount of anxiety. That’s a “biggy!” And do not spend above your means! Yes! Enjoy retirement but remember that keeping up with the Jones is senseless and frankly, no one gives a “Schmidt!” lol
So, you agree in my case I have a $700k house with a mortgage of $129 k at 3.18% fixed rate and will be paid off at age 67…, I will retire at 63 with a mortgage.
Thanks, Geoff for another great video. The concept of marginal utility is a good one to keep in mind. We are buying a new car soon and my husband likes to spend and I don’t. If I could buy a car for $25000 that is reliable and fun to drive, I don’t understand spending double or triple that.
My buddy bought a 3 year old low mileage Miata a few years back, it was a blast to drive, although somewhat impractical, but his kids are grown and out of the house. But I doubt you can buy one now at $25K though.
I agree. I've always been cheap and bought small sedans and ran them until the wheels fall off. As a result I could afford to buy a new Ford Maverick after a 11 month wait. $24,000 total cost and 45 mpg.
@@jamesfarmer876 Absolutely, that's what I did. Been driving the Hybrid now for 3 months. Took 9 months to get. Could have paid cash but took the 0 percent loan for 36 months and put 10k and my wife put in 10k in an I savings bond fr 9.62 percent return that recalculates every 6 months.
Currently fixing my >30 year old classic to sell and use the proceeds to buy a used reliable Lexus, then sell my old >25 year old Ford daily driver which I bot used for 1/2 of mrsp for which the savings was absorbed by repairs and maintenance costs...loved this car, a good balance of sportiness and luxury
Will semi retire at 58/59 . Live under my means, all properties paid off and can sell up 2 or use as rentals. Plan to live/volunteer abroad 3 months a year. All my hobbies have minimal costs. Excited to have 3 strands of money then Social Security.
This is a great video. Thanks for doing it. I cannot stress enough the importance of being debt free. If you have some residual income and no debt, you should be OK if you have enough coming in. I retired recently. I was 59 when I did. I worked hard and paid off all my debt, including my house. I OWN my home. I also OWN a car that I always wanted but could never afford. I kept one credit card that I use when I buy airline tickets and then immediately pay off the balance. The other credit cards were paid off and turned into guitar picks. It's a mindset. If I want something and I don't have the money on hand for it, I save up for it until I do. It took forever to get out of debt, so I'm determined not to go back into it. I have money saved for emergencies. I have about two years for the soonest that I can draw SS at 62. I currently have an Annuity Supplement that I receive every month because I retired through the Federal Government, but I automatically lose the supplement when I turn 62. I haven't decided what I'm going to do as far as drawing SS goes. I have been diagnosed with heart disease, and the vast majority of my family members died in their 70s. I did my "Break Even" calculation and that's at age 79. Well, I'm definitely not waiting until 67 or later because that doesn't seem practical. I'm thinking around 64 or 65, if I'm OK financially and feel OK health wise. I'd rather have fun experiences than a few extra dollars, and I can't predict the future.
@@keithwiebe1787 I may have enough income still coming in that I may not need to take it right at 62, or I can work a part time job to offset the lost income. If I wait a little longer, I'll get more money. In any event, I'll be getting it at 65 at the latest. Medicare becomes available at 65, but I probably won't need it because the main benefit of retiring with the Federal Government is you get to keep your Government Healthcare for life. Thank You for your feedback. Part of why I posted that was to get other points of view.
For me, our wonderfully frugal lifestyle is what gives me the most financial secure feeling. We've been through multiple recessions, a few life altering events, now even a pandemic and nothing can derail us. Incidentally, if I wanted another fun vehicle, I'd skip the $100K foreign jobs that are a repair nightmare after a few years and go with a used Corvette for about 1/5th the price. I don't much care about impressing anyone since I'm not a teenage girl so I buy reasonably priced vehicles that are carefully considered to fit our needs perfectly.
Love your knowledge base and advice on finances. After learning from one of your videos, that you were a black belt in karate, I’d also love to see some old videos of you doing some old martial arts moves. Your motto could be “Im always fighting to save you money “ haha.
Seems to me the key to financially successful retirement is to let go of any need to impress anyone.
I do like to impress people with the fact that that I have hot and cold running water. There is no bottom.
Just don't need healthcare as you age. You'll be fine😂
So true, i like that saying, "what others think of me, is none of my business". You'll impress yourself when you retire with cash flow to travel.
@@jr.6199 No one needs to travel. It isn’t a necessity.
@@audreyandrea460 travel includes on foot, bike or bus too. Everyone needs a change in perspective. Now go impress yourself, get away from this device for a day.
As a soon-to-be retiree, keeping my 401k on track after a bumpy 2022 is a high goal. I've read about investors generating up to $250k ROI in this present sinking market; any suggestions for increasing my ROI before retirement would be greatly appreciated.
there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors with experience
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
@@suzannehenderson5 Please can you leave the info of your investment advisor here? I’m in dire need for one.
Christine Jane Mclean. You can easily look her up, she has years of financial market experience.
She appears to be a true authority in her profession. I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. She owes me a fiduciary duty to act in my best interests. I set up an appointment to use her services.
In 1990 the builders motto was “your house should reflect your success in life. -the bigger the better. I got taken in. Do not get over housed and highly mortgaged
Happiness is a comfortable size house and mortgage free. Also buy a two year old car and drive it for ten years
Finally no costly toys
You never know what lies ahead
As now a long retired homebuilder, I had no motto about what people needed to buy. I just provided what they wanted. Simple fact.
we operate differently in Australia - start out with and possibly stay with a basic 3 bedroom house - one toilet, one bathroom. 4 children share 2 bedrooms. Plenty of backyard or nearby parklands.
Seven years after retiring, I became virtually debt-free. Claimed my RN pension at age 55, as I already had 30 years of service at my employer .At 62 I claimed my Social Security benefits. In the subsequent 9 months,with Social Security benefits as my second income stream,I cleared all my debts. Am replenishing my savings and it feels wonderful.
I’m smiling with you..Best to you 🤗🇺🇸 enjoy your retirement!
I retired at 68, after 52 years in the workforce, in 2019. I had put myself in the position of having no debt and am in good health. All my household bills (utilities, insurance and taxes) total less than 15% of my monthly SS income alone. I still save, have a cash emergency fund and I'm enjoying my retirement to the max!
Sorry, no way is that possible unless you are homeless
actually, this is possible, in a paid off house, and depending on where you live. A your mileage may vary. I doubt you could do this in New York or New Jersey!
my baselines:
Mortgage: 0
Electricity: 8.18 - solar. and I leave the lights on. system is paid for.
Gas: 35
Water: 30 Though, I need to not over water the garden in the summer.
Trash: 15/month (highway robbery!)
Insurance: 75/month
Property Tax: 180/month.
of course, it goes up if I count a specific budget for home improvements or repairs. But baseline taxes, insurance, utilities... the house... it's not brand new, about 30 years old. Updated over the years, 2 year old roof, 10 year old mechanicals, half acre and it's not a single wide.
Me too. You are not alone. My expenses is 30K and pension plus SS are 45K. Your 15% is pretty low.
Not possible. 4194 is currently the max. 50328 a year. 7549.20 total annual expenses. Not happening.
Social Security only for us as well -- mid-sixties with $5,374 in monthly SS. Zero debt. General fixed expenses: $16,488 Groceries/Entertainment/Dining: $24,000 Travel/Gifts: $24,000
Hi Geoff! Thanks for another great video. I retired end of May with oveer 38 years working in insurance. My wife and I are debt free and have been for a couple years. She plans to follow me into retirement in one to two years. I just purchased a used Luxury SUV (2021) with a year of new car warranty and two years of certified warranty. The car was a lease and only had 5600 miles from new. I had put a deposit on a new SUV, but couldn't justify the additional expense of new when this vehicle ($5k less) did "it all" as well. The one thing you missed and is SO IMPORTANT is your health. Maintaining good physical and mental health are critical. NOT doing so is catastrophically expensive. Work on your health as well as these five for ultimate security in retirement. Cheers!
Marginal utility is a great concept. I got into serious road biking at the start of the pandemic. I bought a 12 year old road bike that originally sold for $4500 for $500. Last month I began to think about getting a new road bike. The bikes that are better than the one I own are about $5k. I finally decided to ditch the idea of a new bike because it wouldn’t provide me $4500 of additional enjoyment above what I have now. I can live with the old bike; it provides what I need.
Sounds like fun though!
Diversification of Investments is really a great idea for multiple streams of income.
@Adnan Khan That's right! Even in retirement, I have lots of investments that I make profits from. I invest in bitcoins and property.
@Niklas Gerhard You shouldn't invest in bitcoins without professional guidance. You need a professional to guide you through the process.
@Niklas Gerhard *Alicia Seda* is one of the best Professionals on bitcoins I know. She has a way of making huge revenue in just one week. She is my investments manager. Her services assures you interest, daily and weekly.
My husband and I have never carried credit card debt-we always pay off the cards monthly! And one of the best decisions we made was to refinance from a 30 year fixed mortgage to a 15 year fixed. The house has been paid off for several years now and that allowed us to pay for the kids' colleges without hardship!
40% of retirees have debt. That really surprises me. The only way I'm going to be able to get by in retirement is by having no debt. My house will be paid off in 5 months; retirement in 11 months!
@Kate Burkes: We retired with the house paid off. When housing prices around us went up it caused property taxes to go up. We've been quite surprised at how much
property tax we pay now that we've been retired 15 years. Plan for that.
If I retire it will be in 5 to 10 years. Considering my personal issues, I have not decided on buying or renting. I could buy a new home cash but adding the variable of taxation, it might cost me less to take on a mortgage. Too many financial decisions come down to taxes.
I would have expected the % with no debt to be much more.
If your debt is in a mortgage on a rental property that brings you more than the mortgage is, that’s not bad debt. That’s a good investment. There are probably lots of retirees who bring in rental income like this.
Me too. I am on pace to pay off my primary resident $328K mortgage in 25 months, this December will be my last payment and I will hit 50YO in Oct. with 3 other rentals, 401K and healthy saving, I hope to retire by 60. These houses are all in the SF Bay Area.
Diminishing Return: I really wanted a cool “toy” car. I looked at lots of options. I ended up with a Mustang GT convertible. Other cars were 2-3X in price but not 2-3X in the fun factor (my goal). I bought used and paid cash. I discovered Mustang clubs, I loan it out to friends, and love driving it. Right now, my friend Myron and his wife are having a blast with it up north. That is part of the “fun factor” for me (something that wouldn’t work if it was a “supercar”).
You are letting everyone know than not even viagra works now.
Sounds like a fine choice. Enjoy.
This is my fifth year after retirement. I’ve been following the 4% rule thing, but this isn’t really how hard I expected things to be. I still have about $460k outside funds in my IRA to invest in stocks. Pls how do I take advantage of the market turnaround?
now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
A lot of folks downplay the role of advisors until being burnt by their own emotions. I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.
This is really nice. I worry that I have a couple more years before retirement, and I want to switch to using a financial advisor, I could really use the expertise of this advisor.
I started out with an FA named Nicole Desiree Simon Her honest approach gives me complete ownership and control over my position, and her rates are incredibly affordable given my ROI.
I just googled her name and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a call.
Thank you. Just what I needed to watch.
My wife and I are directors of our farm business and own property, plus small pensions. I am nearly 55, my wife is 52.
We have started to save to retire from the farm, and possibly live on rental income, I'd really appreciate you go LIVE and talk about how to earn passive income online and retire comfortably, let’s say $1M.
you should consider financial planning.
It isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing.
@@jessicasquire I totally agree, I'm 60 and newly retired with about 1.2 million outside retirement funds, no debt, and very small dollars in retirement funds compared to my portfolio balance over the past 3 years till date. tbh, the role of the investment advisor can only be overlooked, not denied. just have to do your research in finding a reputable one.
@@patrickbrussels4454 that's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well.
@@Erikkurilla01 My specialist is *STEPHANIE KOPP MEEKS* I found her on a CNBC interview where she was highlighted and contacted her a while later. She has since give passage and leave focuses on the protections I center around. You can turn her upward on the web assuming you care oversight. I fundamentally follow her exchange design and haven't lamented doing as such.
Invest in taking care of your health. As we age, it gets less reliable and not a "given". ...and without it, all this talk of financial issues wont mean squat if your health is shot.
I agree with you, just don't depend on anyone else doing it for you.
Health is wealth
Can’t agree more. I will be debt free by this December and 50 years old. With no debt, 3 paid off rentals, 401K and cash and $200k 9to5. hopefully I can retire by 60 and start collecting ss by 62. 10 more years to go and This is all in the SF Bay Area.
Garden helps
I paid off all my debt in my 30's. The cash flow is amazing and the reduction of stress shouldn't be understated.
Totally.
@@HolySchmidt 😀👍
So did I. Then I was laid off as an airline employee after 9/11. Boy, did that change things.
Here are my 5 tips:
1. No debt of any kind, even if it’s zero interest.
2. Don’t stop saving - resolve to put away 10-30% of your monthly income.
3. Don’t spend more than 30% on any one thing in your monthly budget.
4. Keep a 6-month emergency fund in cash.
5. Reduce stress and stay healthy - rest, eat, sleep, move around, keep learning and avoid injury.
Great advice 👍
Good advice but that prevents many from living for now either by avoiding nice purchases, vacations, etc or by working forever to pay things off. They save all this money, only to die 6 months after retirement, never having truly enjoyed life at any time!
@@RichardinNC1 It's a fine line. I've known that too happen. A man worked in the refinery in Texas for over 30yrs. He retired and died a few years later from pancreatic cancer. I remember him being so mad! But his wife and kids were set. A better way it to always ask... Do I need this or do I want this?
If you're under 65, health insurance could possibly eat up 30% or more of a modest monthly income. $4000 income (fairly common retired person's monthly income) would be over $1300/month for health insurance which is not uncommon. The affordable care act ("Obama-care") may be able to save you from this fate though depending on the state you live in and what you qualify for.
@@henram36 Especially true since qualification for subsidies is based on income, not assets or cash on hand.
62 and 8 months. Will begin receiving Surviving Spouse SS payments in August. My husband passed away 1 month ago. Retired CFO. He took good care of my stepchildren’s and my financial future. He was very physically active but cancer took his life. RIP
Sorry for your loss.
I’m sorry you lost your husband. Please carry on in his honor and out of respect for him - you know that’s what he would want you to do. Sounds like a good guy……..and I’ll bet he loved you and your children very much. Damn cancer. 🇺🇸
Please accept my condolences for the loss of your husband. Very difficult time. I am sorry.
Sorry to hear about your husband. My biggest fear. I am physically active nearing 60 and thank God for every day I awake
I AM STILL WORKING AT 77 AND WE BEGAN SS AT 70 AND HAVE NO DEBT SO WE ARE WELL OFF, DESPITE MANY YEARS OF LOW INCOME AND A STAY-AT-HOME MOM.
I am amazed that most people need to ask their financial planner if they have enough money to retire or if they have enough money to purchase something. I have been my own financial planner for over 30 years and I am kicking azz-:) And I managed a warehouse. I am not some college educated person. I went to the school of hard knocks and won-:)
The price of anything is the amount of life you exchange for it.
Henry David Thoreau
We retired in 2020 and had paid off the mortgage a year earlier. I manage the money and let my wife know what is going on with bills and investments and retirement income and we regularly talk about them. I know the credit card balances and pay dates as well as the checking account balance. I know when the various insurances and property taxes are due. I know the monthly utility bills and vehicle registrations as well. I have set up the bank to auto pay most of our bills. The key is to know all this information so that there are no surprises. Another thing that will help a lot is to lose weight and eat better. Managing all of this takes time, but in retirement, you have a lot of time and therefore, life should be fairly easy.
TED...some thing to consider...while you are able to do all these things today, what plan do you have for the onset of dementia or cognitive decline?
I am 72. I have more financial education that 99% of Americans, as I am a college professor who has taught financial planning and retirement planning for the past 14 years. Prior to becoming an academic, I was a financial services professional for 12 years. Prior to those two careers, I spent 28 years in banking and finance. It is great that you have your financial dates and amounts and a plan in place...today. But if you passed tonight, would your spouse be able to replicate your capabilities?
Continued success in your retirement.
There is a peace that defies understanding being debt free.
Absolutely. It has been very liberating for me. My last thing was the house. It even made going to work easier.
Agreed.
Yes!
Amen Brother
I would add that get major appliances, water heaters, roofing, plumbing, ac/heating all replaced if needed before retiring.
A good thought. I am currently getting medical issues addressed before potential retirement, while insured.
I totally replaced my ac/heating a couple yrs back by a 1st rate company and living in the south it has been a great investment.
I agreed to that. I recently replaced washer, dryer and freezer. A/C and stove will be next before I retired at 66 and a half
Appliances are expensive these days and being in debit with these is like asking bankrupcty. Car needs to be paid as well
Don't forget a retirement plan for your oral health. I recommend to my patients that they get their teeth fully fixed prior to retirement. That way all they have to is maintenance visits during retirement.
Good advice!
Such a nice picture of you looking happy with the sunflowers, and nice green shirt Geoff. 🌱🌻
When I eliminated debt some years back, it was like getting a raise. Never carry debt that isn't earning more than you cost of capital.
My spouse and I are adding a variety of stocks/ETF to my present holdings for the long term, We've set aside $250k to start following inflation-indexed bonds and stocks of companies with solid cash flows, I believe it is a good time to capitalize on the market for long-term gains, but it wouldn't hurt to know means of actualizing short term profit.
that's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you.
I just looked up Diana Claire Lougen online and researched her accreditation. She seem very proficient, I wrote her detailing my Fin-markett goals
Some people,maybe lots of people,don’t seem to ever understand simple math. I don’t think there’s any advice that will help most of these people. Almost all people who are solid in retirement were that way thru the years. Pay your self first..live with in your means..always know your limits…. Usually a life time of foolish decisions it’s not turned around in one year…. Best channel on CZcams thanks
I could have retired years ago. The problem is I do know what the future might be like. I lived through the 1970's and see it happening again. I am fully employer and collect two different pensions. I could quit today but tomorrow is always in question. As long at inflation is a question, and as long as taxation is a question, I am staying employed, it is my best alternative. If people want to understand their position, the need to understand the time value of money. A simple google search would tell them that. The other thing that would help would be a search on NPV. That would help in making good decisions about what they should be investing in for the future.
Straight up solid comment. It did not start the day of retirement, they always lived that way.
Thanks for the wisdom/knowledge you imparted in this video! One philosophy that I operate under is "Pound wise, penny foolish". That is to say, if its not very expensive and you're not going to buy it frequently, go ahead and enjoy it. On the other hand, if its going to be a major purchase, say over $100, then think about it for awhile, maybe a few days. If you still feel you want to buy it after your heads cooled down, then go for it. Most of the time, this has been effective in preventing a bad purchase.
I see it has been said, but I will mention also. I have always lived below my means and I gain a sense of security from that as I see money saved and invested consistently growing as I approach retirement.
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy.
The stock market is very strong. The labor market is very strong. I suggest you rest easy.
😊
My company made us a good offer when covid hit. I decided to retire. Since it came unexpected I had not much money in my 401 K. My husband passed away shortly after and from the little life insurance I paid my condo off. Thank goodness I have no debt. I don’t have a lot, but I can make it. My association fee is 400$ a month and then utilities, which is about $50. Thanks for your video!
Condolences on your loss, and wishing you peace on the road ahead.
@@ontheotherhand7627 thank you for your kind words.
The info is great as always, but with the clock in the background I can see how much effort goes into just capturing the points you are communicating. I’m sure there is much more time in the editing and the preparation of content. Thanks for all your hard work preparing us for retirement!
Now I have to go back and look at the. Click, lol
I think you should put more emphasis on health and health maintenance
Something that works for me is that I create once a quarter a balance sheet and income statement. I create these using GAAP and use them for planning. You can do anything if you have a plan. Even if do not understand accounting principles, knowing where you stand will help you plan ahead. The income statement is very illuminating. It tells me what I am spending my money on and helps me understand what I need to adjust in the future. It simply put list your revenues and expenses categorized. You would be very surprised as to how you are using your money.
I do a monthly spreadsheet for the whole year. You will be surprise if you overspend or underspend.
Having our home paid off and our car also, is a blessing. Also, we no longer drive two cars---we need one only.
I am a new viewer and I appreciate your explanations. I’m no dummy, but finance always made my eyes glaze. You make this topic so much more understandable. I was particularly impressed when you mentioned tracking spending. I’ve been a member of several support groups for years, one of which deals with money. “Keeping my numbers”, by writing down what comes in and what goes out was life-changing. Thank you so much for your work.
Concise, straight to the point, no frills and spot on as always. One thing I'd add that my Dad used to say is that if you are 55 years old you should have your house (updated and remodeled as needed) and vehicles paid for. I understand that the recently low but now increasing Fed Funds Rate might have lead to rebuttal on the house point. But this was not only a thing based on financial reasons but also on peace of mind going into your retirement. I worked hard and was blessed/lucky enough to have achieved both house and new 4Runner paid off (bought 4Runner with cash). As you age past 60 debt is not only a drain on your $$$ it's also a burden on your mental well being. It's a rough go these days and will only get rougher IMO. Best of luck to all.
Your dad was a wise man. I will hit 50 by this October, with no debt. 3 rentals and 1 primary home all paid offin the SF Bay Area. Family of 4, my rentals will more than cash flow my 2 kids’ college. Start saving when you are young, don’t overspend like most of us Americans.
13:28. To track spending, I recently started using my bank's website. It makes it easy to designate transactions for various categories, and gives me a cumulatuve pie chart. I can compare with previous months. When I started this, my expenses went down significantly. It also allowed me to more accurately predict weekly expenses like food, gas, and a little mad money. This allows me to withdraw cash for those items to control spending while robbing Peter to pay Paul for extras without falling into debt. It's a fun game that works for me. This often reminds me of what you said in one of your other videos: "Every dollar has a job." Thank you so much for sharing your wisdom -- helps me every day. -- a single retired RN and grandmother.
It's my third month being retired now. And life hasn't been so difficult as I thought basically because I put my head down and made ways for other source of Income. I'm a huge fan of earning more money, and I think everyone should have a side hustle. Side hustling can allow you to earn that little bit of extra money that can help you achieve your financial goals faster - whether it's paying off student loans or saving for retirement.
@Michael Kalon You can buy dividend ETFs if you don't want to get into individual stocks. My favorite is SCHD. you can use a coach as well.
@Brendan Walsh Nearly impossible however names like KAREN MARIE EMMA is exceptional. Look the name up if you need help.
@Michael Kalon just do it. In 20 years or more you will be glad!
Of course, morally and ethically, as long as your side hustle does not depend on stripping other people of their assets and income sources by scamming them into poverty while you continue smiling. Always consider: "Would your mother/father be proud of what you did today." There is that legacy and reputation beside you everyday, does that have any intrinsic value to your decision making or is a selfish nature sufficient for a quality life.
Great video! I'm 55 as of yesterday and financially retired. I work in my own business for the enjoyment and my dividend portfolio pays more than my monthly expenses.....and 0 debt period.
I mention this because I love learning from your videos on what people have done wrong at the doorstep of retirement... when it's already too late. Your advice to them allows me to make possible corrections before I get there. Thanks for all the valuable information!
One thing I would mention to people is to create an income statement and a balance sheet. I adjust it monthly and when I add to my stock positions to calculate the increase in monthly income from the dividends.
Being debt free with financial margin makes me secure and free!
Very honest, sober, informative , and educational financial presentation regarding this specific topic . Thank you sir.
ONE WAY TO PAY OFF the mortgage faster is to DOUBLE UP on the PRINCIPLE of the payment. If you look at the statement, a pretty low percentage of that payment went to principal. If you double that amount in your next payment, AND specify that "overage goes to principal" (otherwise they may just funnel it into the "escrow") that will cut down an ENTIRE payment. You won't see it until the end of the payments, but when I was able to pay off the balance of my mortgage, I had cut the final payment almost in half. ($10Ks)
It is great advice. I did just that for 5 years and saw the balance of the mortgage falling down very quickly. Highly recommend doing it.
Don't be an idiot. Tying up money in equity that could be invested is how the house rich stay poor. Learn to use the bank's money.
@@DrSchor Only provided that you can make that money make more than what you are paying in the interest.
One of the commenters said you’d better have good health, cause without it, well, you’re in deep doodoo. On that line of thought, I’d like to add that getting the best Medicare supplement policy there is, Plan G, is the absolute best bang for your buck, and in our older years you’ll be needing it. I feel secure, both emotionally and financially with my Medicare Plan G that pays for just about everything that Medicare doesn’t.
I will too sign up for Plan G in 1-1/2 year from now, I will turn 65, thanks for the reminder.
I’m retiring next week and applying for Medicare. Thanks for the tip plan G. I’ll check it out. Brokers are swarming to get me to work with them
I have used Christopher Westfall's CZcams channel to avoid a lot of Medicare traps. You should check it out.
We’re looking at Medicare right now. It was really important for us to check out some videos about the pitfalls of going with the Medicare Advantage plans (often free) compared to the Medigap or Supplemental Plans (like Plan G). The big concern is being able to qualify medically in the future as we age and develop health issues.
We track every penny that come's in an go's out for everything, always have an always will, all done on our pc weekly, an monthly an yearly. But we're frugal an watch our pennies, lessons learned from my grandparents who lived thru the depression. I always ask myself, do I need it, or do I just want it, before I make any purchase, an I always do my homework before I buy anything, an I always take at least 24 hrs before I make a purchase for anything, kinda puts a stop to impulse purchases. Thx for the vid Geoff
Retired at 59. Purchased retirement home in 2019...sold primary home 2022 and paid off mortgage for retirement home. No brainer....no debt...I take one hour per month to go over budget and cash flow.
I worked for both Jaguar and Aston Martin. Also love Alfas too. Love the concept of Marginal Utility. Happily retired with a FS pension from both.
One friend was from an italian family that pitched in and bought her and husband a house when they married. What a great idea to reduce debt and support the new family! Then you pitch on for the next couple. I love this!
I really like your straightforward approach in your videos. Thank you!
20 years ago I stopped carrying a balance on my credit card. Pay it off monthly. Always ask myself, " do I really need this purchase?" Drive a 10 year old paid off vehicle. Only debt is my house payment which I make extra principle payments months. Its all about living frugal.
I agree with most of your opinions regarding retirement. We have no debt. Two new vehicles last year. Now doing some minor home improvements over the next couple years. Plenty of SS and Ira Income. But I listen to your vids when they come out. Thank you!
Thanks David
Turn 63.5 in October, need to retire from a mentally exhausting job I've done for 28 years....I plan on working part time, I have a mortgage 3.2% no credit card debt, my wife provides full time care of her 92 yr old disabled mother who lives with us. I'd love to sell our home in our great market and could make about $200k, but can't.
Not paying off mortgage may make financial sense, but having $0 mortgage payment eliminates *any* financial risk, regardless of interest rate.
Those of you that have rental properties like myself and are planning to sell them, you must remember that all the depreciation that you have taken must be paid back the first year after you sell. For myself, it is over $100,000 each. Take that into consideration.
Best way to enjoy retirement is to have no debt. Solves a lot of problems.😉
Geoff!
Your videos are truly inspiring to do the right thing and to keep doing the right thing for the rest of one’s life… Thank you for all your hard work. I look forward to watching every video you have done.
Respectfully,
JimmyUSAF 🇺🇸✈️✝️💜🙏🎄👍😇🇮🇹🌎
I am new to your videos, and am enjoying them. A subject worth discussing, if you have not, is managing the drawdown of one's IRA(s) and other nest eggs in retirement year by year, especially during major market downturns. Liquidating depressed holdings to take a chunk of my money out of a market that will rise again without the future participation of that money makes me cringe a bit. Surely there must be some strategies to optimize the drawdown. Have you covered this? And if not, could you?
A trip to Antarctica is not that expensive. I just booked one, they had a 2 for 1 special.
Retired at 59, spouse younger and has a good job $50k, I took SS at 63, got $15,000 annual income from passive side gigs that let us write off a lot, rental property brings in $7,000 annually. Debt is $40,000 @ 2.3% (I consider that good debt). Our cash flow is great. Best advice, live below your means, max out retirement and HSA savings, and create a budget.
To achieve financial independence and become successful in life, Start investing. Really spent my 30’s and 40’s working for a company which was a waste of my youthful days. Recently started investing in stocks and life feels much more easier... Invest and stay rich always!!
I wish I could like this comment a million times. I have my interests set on investing to better my life, it’s quite difficult to start up without proper guides. My question is, how best can I achieve a productive investment? Any good tips or recommendations will help a lot.
@@Erdogan432 Generally, attaining a productive investment requires experience and a higher knowledge. That’s why it’s important to have a financial consultant that would be a solid support structure while investing. I operate with (Eula Roswell digital) a professional consultant who partner with a wealth management firm. Working with her has been a promising experience so far with so much returns acquired
You can do a quick internet research with her full names mentioned above and get in touch with her.
@@Arinya671 Just checked out her page on the internet. Her work experience and qualifications are pretty impressive, I dropped a message and waiting on her reply. Thanks so much
Eula is the best in this space and I’m happy to come across these recommendations. I’ve worked with her and I can attest to her great skills and experience in financial planning and wealth creation. My biggest flex is having an expert like her guide me through making great investments, I will highly recommend her to anyone who wants to be a successful investor
When your taking social security you go over the caps set up on earnings you go into the local office fill out the paperwork. They can take out a small amount. Over a year or so it can be paid back. You don't loose the whole payment
Once it's paid back you return to get 100,%.
Other options do your taxes then flie the extension. Have some time to get up what you have gone over pay them back if you can.
Truly enjoy your channel. As a New Zealander our retirement/pension automatically commences at age 65 and continues for the rest of your life. So I was somewhat surprised that in the USA, superannuation employs an expiration date. That aside thank you for your clarity in regards to making retirement issues simpler.
Here in the U.K. a colleague got a 24% uplift in his state pension by not taking it until he was 67. Unfortunately they changed the rules a couple of years later and I won't get any state pension until I'm 67. The current big debate is the "Triple Lock". Due to the Bank of England's inability to control inflation the state pension is going up 11% this year. Meanwhile they are wondering why nurses are complaining about a 4% pay increase offer.
No, the federal retirement system in the US (Social Security) lasts for the entire lifespan of the retiree. There is no "expiration date" except death.
I always build in a margin of error for any plan I create. Great video, thank you very kindly.
This was good easy advice to follow. One way to invest is to buy the S&P 500, open a Roth IRA, save money. Work till you have maximized your social security. If you buy stocks, you could buy ETF's like energy, health care, technology. Just a
couple of ideas.
Thanks great info, we held large credit card balances for years, we paid them off with a HELOC multiple times, it was a vicious cycle that we finally broke 10 years ago, we started gaining financial traction exponentially and never looked back, needless to say we pay everything possible with our credit cards now although we pay the balances off every month religiously no exceptions
Smart move, gotta be careful with those cc swipes, they creep up on you real fast.
65, single low mortgage at 2 percent , two retirements and social security no other debt. Life is good.
50, Married, no mortgage, 3 rentals, no debt whatsoever. Love the SF Bay Area here, not the politics though. Life ain’t bad.
@@jml9550 Who are you kidding! You have 3 rentals.... you absolutely have debt.
@@Davek111 3 rentals all paid off as well, last one was in Dec. 2020. Bought these over the last 20 years span. Absolutely positively no debt.
I’m glad to see another retired person who still has a mortgage. My husband was in the military for 20 years and then took a job that caused him to transfer a lot. We only bought our house a year before retiring; 2.5% interest and a house payment that is less than half what rent is going for here. If we had to have our house paid off before retiring we would never be able to. Life is definitely good!
Can you pls address single, never married, no children retirement! Rarely is this subj approached/discussed! I'm sure that I am not the only person who fits into this category! 😂 Thank you. LOVE YOUR INFORMATION!
I took SS at age 70. I am still working full time. I was laid off at abot 2000. When I got a new job, I put eliminating DEBT as my number 1 priority. I carry no CC balances. My mortgage is paid off. I put the maximum into 401k. My children have sond financial footing and are not extravagant. I'm looking at eliminating things I don't need and don't really want.
I know exactly how much me and my wife spend on essentials. I also break up CC expenses into 15 categories that I track each month. You have to know where your money is going. Yes I’m a number geek.
I'm 66 I waited till full retirement age, I'm renting have no debt and have an Roth, IRA and stocks, high interest savings accounts, I bond. I'm still working part time, and a managed investment plan. I notice you are talking a lot with the spouse or married couple. I'm single. Best advise, thanks you, cheers...
The realistic comments on rental real estate are on target. The properties that we bought over the last 10 years are finally spitting out enough cash flow to provide for my retirement. But it took a lot of work and time to get to this point.
75 still working plan to retire next month health problems very constipated wish me well hemmroids too
We took SS at 62 each and I have not regretted it. His job went away at 61. Due to health reasons he took SS early and went with a part time job. We were raising our grandson at that time. I was teaching. But after cancer I retired at 52 and have a pension. For the last 20 years I have worked in education part time and am retiring fron it.
We still had a 16 year old. Due to a small inheritance we sent him and my daughter to college. My parents died in their 60s and didn't collect much SS.
My spouse still has a small part time job 5 hours weekly he enjoys. I hope to have the same.
No debt but a small Home Equity loan. That helps.
We don't live a high life but do go on vacation and do things we enjoy and volunteering. Living on a budget, saving into sinking funds and tracking spending keeps us out of debt.
CPI used to be an actual “basket of goods”. Now they throw in a bunch of items I NEVER buy. Cost of living should measure only the things you need to live: rent prices, house values, gas, electricity, food, clothing, and medical expenses. Just those!
It’s the way the CPI is completely RIGGED
Social Security is the best inflation-protected annuity out there. I have another 25 months before I turn 70, by deferring benefits my monthly number goes up by around 17% this year. A 9 percent COLA is extreme, but even at 2 or 3 percent you're still getting over 10% on an inflation-adjusted monthly payout for the rest of your life. It's an insane return for zero risk, just sayin'.
I am going to wait until 70 also, no choice really since the house will not be paid off by then anyway, but making my husband keep working and drawing social security at 67 since he smokes and is a spender, so we will pay off the house, any outstanding medical debt and then save it for travel. That is the plan anyways.
Forty months until I turn 70. I hope to defer taking social security or my pension until I turn 70. My 401Ks and other investments are down by 15% from the all time market high but I can scrape by because I'm debt free and own my home outright. Once I turn 70 my income will be more than twice my cost of living but now I need to bite the bullet and avoid stupid purchases like a new RV, and most importantly not dying of this damn virus. It almost killed me twice already.
It’s the greatest and cheapest longevity insurance
I will be taking my SS at my full retirement age since my wife will be collecting half my SS payment. Her payment is capped at half my full retirement payment so waiting longer doesn't make as much sense.
@@jamesfarmer876 I think you can file and suspend which allows your wife to take 1/2 of your FRA SS while you can wait until you are 70 to take yours at a higher rate than your FRA. I am not a tax or social security professional or married but you can search UTube for spousal social security to verify this and to get spousal strategies to maximize this benefit. I took mine at 70 and enjoying it. Good luck with whatever you do.
When it comes to things like artwork, or in my case historical documents, I know the value of what I have collected but am not considering the future worth. Having a Picasso hanging on my wall, or a letter carried by the Hindenburg, is of more value to me than what I could sell it for. It is important to know the value if you ever needed to sell but don't forget the value you get from the enjoyment of owning. My recommendation in these cases is buy what you enjoy not what will make you money.
I too have items that I enjoy that are basically collecting dust. They have monetary value if I ever need to sell them but I don't count them in my net worth.
Guns.
I had a friend who recently passed and I am executor of his estate. He collected a lot of different things with the thought that they would help fund his retirement. He died at 70, pretty much broke, and owed the IRS more than he was worth.
Owning a collection should be, as you said,for our personal enjoyment, not as a way to fund retirement.
Your heirs need to know what to do with collectibles.
When the standard fed tax deduction became higher than itemizing, I paid off my mortgage.
I’m 58 and I’ll be debt free in January 2023 except for my mortgage. Need to stay on track to make sure this happens !
Retiring in December 2029 when I’m 65 1/2, plan is start collecting SS at 66, one year short of full retirement age 67.
I’ll have 37 years and 8 months with dept of defense, pension will be about 42% of my top 3 annual salaries and I’ll get a lump sum cash out on my annual leave balance which should be about $19k after taxes.
I may or may not ever retire. My full retirement would be the 66 and 1 half year. Currently I am thinking that I might go to 70 and max out my social security. Even then I might not fully retire. I might go into teaching at a local college or go back to consulting. Neither of these provide me the income I would want but in retirement would create a nice stream of income.
I will be debt free by this December and 50 years old. With no debt, 3 paid off rentals, 401K and cash, hopefully can retire by 60 and start collecting ss by 62. This is all in the SF Bay Area.
@@jml9550 your point is?! Lol I think we all got it, "All in SF Bay area".
@@boutiquebabe whatever point you want to make it to be. Don’t effect me one bit.
Getting completely out of debt before you retire makes it sooooo much easier to wait until 70 to file for your Social Security. Of course the most important part is taking very, very good care of your health so that you actually get to 70! Investing in your health, strength, and flexibility throughout your lifetime translates to $$$ in your pocket that would otherwise go to health care costs in later life. And floss! And, maybe, get off my lawn!
Me and my wife plan to retire at 60 and start collecting SS at 62. And yes, there is nothing more important than health, those millions mean absolutely nothing if you can’t spend it.
Your health is numero uno!
Inflation is my greatest fear in retirement! First, I cannot convince my wife that inflation exist. And I planed for 6% annual inflation during retirement not for 11+%.
Thus, fixed annuities are worthless. My mother's lifetime of accumulating a big stash of cash is now being destroyed by inflation. She is unwilling to make any changes. She won't even buy an out-of-state CD @4.85%, but buys locally @3%.
Mini Corporate bonds @5-10%? Nope.
I purchased a used electric car. Maintenance is very low and charging at home is $30 per month (2,000 miles per month). This year I changed work locations and shortened my commute by 75%. I would like to buy a Tesla but own a Nissan Leaf. The Leaf cost $13,000 to purchase.
I am amazed at the number of people that do not know what their costs are every month/year. How do you ever expect to be in control if you don't know that? We love looking at our numbers and saying. We have 2 or 3 thousand more we can blow this month, what do we want to do.
Everyone seems to focus on how to get the maximum total payout when it comes to Social Security. That is actually meaningless in my opinion. What matters to me is cash flow - both at the start of retirement and at the end of life. Will I have enough income and savings to sustain my standard of living until my last day?
I always enjoy these presentations. Even if to put something’s in your life into perspective. Cash flow projections into an unknown retirement are difficult. Be sure to put a very large budget for miscellaneous. I have been retired for two years. My “lifestyle” expenditures are much greater as I intend to live life. But, still within a plan. One last comment I would make. For me, I have no problem with a budgeted reduction in investment corpus. Trying to retire and never drawing on your saved funds may be doable, but may also reduce your enjoyment factor. Don’t really concern myself with what I do or do not leave to my children in my estate. Here again-in balance.
Well said my friend.
Geoff, I'm thinking you were able to read my mind! 🤣 We are discussing whether to make an expensive purchase or a similar much lower cost purchase ... we are leaning toward the lower one.
Dividends from investments can provide a nice income stream. Jack Bogle had said do a 50/50 or 60/40 stock and bond split in investments and a person will be fine.
Cash is also important to have, I saw in in 2007/2008 and I see it now. Using cash reserves vs selling investments is why you want it. Yes in high inflation you lose purchasing power but 5.9% or 9.1% is much less than 15% or 21% that someone would lose by selling an investment now. Once the investments go up replenish that cash reserve.
Good point Vinny
I always enjoy hearing what you have to say!
Sound is great. Thank you!
Retired, I know where every penny goes. Debt free, still have my 2006 Honda Accord and while clear coat is pealing I have no plans to get a new car. As I see those expensive cars so many drive, I smile knowing they are not likely saving for the future.
fooling yourself, are you not, to make yourself feel better. Those drivers did much better than you and have so much money they can drive what they like.
It is all about how much you can afford. If buying a $260,000.00 exotic car is not a problem, why sweat it and drive a 20 year old Honda?
And why is the clear coat peeling on your 18 year old Honda? Well taken care car paint lasts decades with no issues!!!
I have to park outside as one car garage and wife gets that! :-) So clear coat has suffered. :-)
@@pagosabob10
There are many excellent products out there on the market place. You may have to get recommendations from a professional detailer depending on how far gone the clear coat is. I also had a Honda Accord many years ago and it was also parked outside. I always kept it washed and waxed and there was no degradation to the paint. It can be done but does take lots of work.
Staying single is #1 on my list....I was able to retire at 59 last year, only having to finance myself in retirement....my life is much more manageable this way I will tell u!
Very wise.
Sad and lonely end of life
@@bruced.370 if u went thru the bs
That I did u would change your tune...insanity is repeating things over expecting different results! Lost half my stuff thru divorce.... once is enough!
@@bruced.370 no one’s stopping you sir go right ahead and all the best to you and her
Maximizing income during retirement would also be a good thing. Work minimum to reach max of income limit. This would give retiree a chance to be active, while exploring. Work can be hobby related too…travel, consulting, e-com, business owner, etc
Thanks Anthony. Very good point
Every month we sit down and review our budget. Not hard to do. This gives us peace of mind & I suggest it be a routine. Knowing your monthly cash flow relieves a tremendous amount of anxiety. That’s a “biggy!” And do not spend above your means! Yes! Enjoy retirement but remember that keeping up with the Jones is senseless and frankly, no one gives a “Schmidt!” lol
I have watched several of you straight forward videos. Thank You!
You provide more info fro retirees than anyone I’ve listened to. Thank you.
So, you agree in my case I have a $700k house with a mortgage of $129 k at 3.18% fixed rate and will be paid off at age 67…, I will retire at 63 with a mortgage.
Love love love your videos…..you are a great teacher!
Thanks, Geoff for another great video. The concept of marginal utility is a good one to keep in mind. We are buying a new car soon and my husband likes to spend and I don’t. If I could buy a car for $25000 that is reliable and fun to drive, I don’t understand spending double or triple that.
I have a spendthrift husband so I cannot retire until the house is paid off and I get the maximum social security.
My buddy bought a 3 year old low mileage Miata a few years back, it was a blast to drive, although somewhat impractical, but his kids are grown and out of the house. But I doubt you can buy one now at $25K though.
I agree. I've always been cheap and bought small sedans and ran them until the wheels fall off. As a result I could afford to buy a new Ford Maverick after a 11 month wait. $24,000 total cost and 45 mpg.
@@jamesfarmer876 Absolutely, that's what I did. Been driving the Hybrid now for 3 months. Took 9 months to get. Could have paid cash but took the 0 percent loan for 36 months and put 10k and my wife put in 10k in an I savings bond fr 9.62 percent return that recalculates every 6 months.
Currently fixing my >30 year old classic to sell and use the proceeds to buy a used reliable Lexus, then sell my old >25 year old Ford daily driver which I bot used for 1/2 of mrsp for which the savings was absorbed by repairs and maintenance costs...loved this car, a good balance of sportiness and luxury
Will semi retire at 58/59 . Live under my means, all properties paid off and can sell up 2 or use as rentals. Plan to live/volunteer abroad 3 months a year. All my hobbies have minimal costs. Excited to have 3 strands of money then Social Security.
This is a great video. Thanks for doing it. I cannot stress enough the importance of being debt free. If you have some residual income and no debt, you should be OK if you have enough coming in. I retired recently. I was 59 when I did. I worked hard and paid off all my debt, including my house. I OWN my home. I also OWN a car that I always wanted but could never afford. I kept one credit card that I use when I buy airline tickets and then immediately pay off the balance. The other credit cards were paid off and turned into guitar picks. It's a mindset. If I want something and I don't have the money on hand for it, I save up for it until I do. It took forever to get out of debt, so I'm determined not to go back into it. I have money saved for emergencies. I have about two years for the soonest that I can draw SS at 62. I currently have an Annuity Supplement that I receive every month because I retired through the Federal Government, but I automatically lose the supplement when I turn 62. I haven't decided what I'm going to do as far as drawing SS goes. I have been diagnosed with heart disease, and the vast majority of my family members died in their 70s. I did my "Break Even" calculation and that's at age 79. Well, I'm definitely not waiting until 67 or later because that doesn't seem practical. I'm thinking around 64 or 65, if I'm OK financially and feel OK health wise. I'd rather have fun experiences than a few extra dollars, and I can't predict the future.
I would think you'd be a perfect candidate for SS at 62. What am I not seeing?
@@keithwiebe1787 I may have enough income still coming in that I may not need to take it right at 62, or I can work a part time job to offset the lost income. If I wait a little longer, I'll get more money. In any event, I'll be getting it at 65 at the latest. Medicare becomes available at 65, but I probably won't need it because the main benefit of retiring with the Federal Government is you get to keep your Government Healthcare for life. Thank You for your feedback. Part of why I posted that was to get other points of view.
Retired 6 monthes ago. Excellent points.
For me, our wonderfully frugal lifestyle is what gives me the most financial secure feeling. We've been through multiple recessions, a few life altering events, now even a pandemic and nothing can derail us. Incidentally, if I wanted another fun vehicle, I'd skip the $100K foreign jobs that are a repair nightmare after a few years and go with a used Corvette for about 1/5th the price. I don't much care about impressing anyone since I'm not a teenage girl so I buy reasonably priced vehicles that are carefully considered to fit our needs perfectly.
Love your knowledge base and advice on finances. After learning from one of your videos, that you were a black belt in karate, I’d also love to see some old videos of you doing some old martial arts moves. Your motto could be “Im always fighting to save you money “ haha.