CPA Explains: How to Retire in 5 to 7 Years - Low/No Savings
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- čas přidán 26. 07. 2024
- This video discusses how to be ready for retirement in 5 to 7 years, starting with little to no savings - utilizing a combination of methods used by the wealthy.
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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.
I’d be retiring or working less in 5 years, and considering possible recession, I’m curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $180K per year but nothing to show for it yet.
😱
START NOW. MAX UR 401k and take advantage of ur Companies match. Max all of it
Get connected with a financial advisor as suggested above. Best to u
It’s such a blessing that my husband and I aren’t just married, but we’re also each other’s best strategic partner in business. I’m great at what he lacks, he’s great at what I lack and we have an Adviser to work with. Praise God!! And thank you for the awesome content!!!
The only way I was able to scale through all of this without stress was by working with a financial adviser. My adviser *ROCH DUNGCA-SCHREIBER* has always had my back all through the process of property investment and investing in general. You can glance her name up on the internet and verify her yourself. She has years of financial market experience.!!!!
This is a beautiful story. You are blessed.
The most important step is to cut expenses to the bone. At age 60, I was $30k in debt with no savings and panicked! I looked at EVERY line item in my monthly budget and trimmed it by at least 20%. I moved to a cheaper place, started a side gig, eat 2 meals a day instead of 3, changed my phone and insurance plans, stopped buying anything other than necessities, eliminated all debt and improved my FICO from 580 to 780. Now I'm 62 and save over 60% of my monthly income in a HYSA. You must be willing to sacrifice for a short time to win.
Bravo, you turned your situation around. It took tough measures but the result is a much better future. You can help others, too. Congratulations…you are a success story.
'Totally agree. My situation wasn't all that different. Unless a person drastically cuts their living expenses, that 5~7 years mentioned in the video is probably gonna be closer to 10~12 years.
Amazing how good you can live for cheap (without being a cheapskate) when you're not materialistic and don't care what anyone thinks.
STRONG 💪 WORK
Hell yeah...you can do it . 🏅
I am a teacher moving into an administrative position. I will have a pension through the state when I retire. I would like to invest into something else (i.e. Roth IRA, etc) to set myself up for a comfortable future. If you had 35 years to invest in something before retiring, what would it be and why
How do you do it. I can't seem to make the right decisions
Thanks for the recommendation. How do I reach out to her
@Massimo, open a Roth IRA account at Vanguard. Then set up automatic investment ($500/month) to that account from your bank account. Invest it into mutual fund ticker symbol VTSAX (Vanguard Total Stock index Fund). In 35 years you should have over $2 million. Easy peasy.
We turned our taxes over to a CPA over a decade ago & it was one of the best moves we’ve made. He helped us save on taxes when we gifted to our children money from a windfall a few years ago. CPAs: they’re not just for taxes anymore!
Hear hear!
Your precise presentation makes your videos a pleasure to watch.
I try :)
I am applying these tips now! Thanks for the videos i am learning a lot about finance. I add my last raise to my 401k instead of increasing my spending
Thank you for providing such valuable information. It's exactly what I needed to hear. Both my wife and I serve as directors for our farm business, and we also own property along with our small pensions. As I approach the age of 55 and my wife is 52, we have initiated our savings journey towards retirement from the farm. Our aim is to potentially rely on rental income to support our retirement lifestyle. I would greatly appreciate it if you could organize a live session where you discuss strategies for earning passive income online and achieving a comfortable retirement, with a target goal of $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 completely agree with your perspective. As a newly retired individual at the age of 60, I have accumulated approximately 1.2 million in funds outside of my retirement accounts. I have managed to remain debt-free, and in comparison, the balance in my retirement funds is relatively small when considering my overall portfolio growth over the past three years until the present time. To be honest, the importance of an investment advisor cannot be disregarded; it is crucial. However, it is essential to conduct thorough research in order to find a reputable advisor.
@@patrickbrussels4454 That's truly impressive! I would greatly appreciate some information about your financial advisor. I'm currently seeking to make positive changes to my finances this year as well, and it would be beneficial to explore potential options.
@@Erikkurilla01 I work with a specialist named *STEPHANIE KOPP MEEKS* . I came across her through a CNBC interview where she was featured, and I reached out to her after some time. She has provided valuable insights and guidance on the specific securities that I focus on. If you're interested, you can easily find information about her online for further oversight. Essentially, I closely follow her trading strategy and have not regretted doing so.
Litmus test: If you have a two-car garage and can fit both vehicles inside at the same time your spending is most likely under control in the USA.
do you even know what litmus is
@@DrSchor Similar to strontium 90?
@@randymillhouse791 Randy, you should not be doing litmus testing.
I get your point AND humor in this completely. 😂 bravo
My truck is too tall. It'll end up being a convertible. The antenna on my wife's car even hits.
Hi Geoff,
You truly are a genius … Thank you for your priceless videos.
I lost my job during the pandemic at age 62 and was unemployed for almost 3 years. I lived off my meager savings. I finally received a job offer this year, making less than half of what I used to make. So here I am age 66, no real savings, and forced to work. I hope that our younger generations save more money then I ever did, that they buy a house when young (I bought my primary resident at age 59). I have a lot of anxiety about losing everything I have worked so hard to achieve. As it is, this is not sustainable for me due to health issues. Best of luck to everyone.
Sorry this happened. Life can be a beautiful experience mixed with life crushing experiences. I pray things look up for you. You still have time to secure your eternal future if you haven't. Receive Jesus as your Savior.
Great video. Hubby and I are already retired but appreciated the good information. It would be scary to not be prepared for retirement. I think most people don’t worry about saving for retirement when they are young. I know I could have done more when I was younger but just didn’t worry about it.
Amazing! Thank you!!
Since "ask for tax advice" is one of your 6 cost control suggestions, it would be helpful to know how to shop for tax advice, and how to know how much to pay. Up to now, as a W2 employee for whom the standard deduction seems adequate, tax software has seemed sufficient. With a kid in college and retirement (and new and different income types and streams) lurking just beyond that, I gather that my tax situation (and associated FAFSA concerns) is becoming more somewhat more complex. But the market for "tax professionals" seems complex and opaque. Do I need a CPA, or is that really only important for a business owner or someone with lots of investment income? Is talking to a person at a company like H&R Block an adequate and appropriate next step? A video with a run-down on this subject would be helpful.
H&R Block is too expensive and they told me I would have to pay $1000 more than a cheaper tax person ended up telling me when he did my taxes. So maybe shop around. I have never done much better with a tax person than Turbo Tax.
Great information as always!
Happy Memorial Day and God bless America and for those that gave the ultimate sacrifice so we may be free 🇺🇸✨❤️
Thanks to everyone who have served and continue thus far.
Im new to the channel and I was caught way off guard by the intro and channel name. 😂😂😂😭😭
Great info, but try to move your lighting to about a 45 degree angle instead of straight on. The reflection in your glasses are very distracting.
I did it. It's possible! It took me about 8 years. And I started with little savings. I am lucky that I also had a pension aside from SS.
Pension changes the math on retirement quite significantly. You can have nothing and between social security and pension most people are set. It’s akin to winning a lottery in this day and age.
I stopped using local CPA's. They didn't have the expertise. They would say "Well looks like you have to pay the tax on that". Now I use Tax Services for overseas contractors. They are fast and professional. I get big refunds.
I have always lived like I was poor…and now I’m not!
Reduce spending, quickest path IMO
Good advice but if one hasn’t saved in their whole working life….this is simply to hard to actually do
@@chuck5553 For sure. Lucky I've always been frugal and a saver and found out about the F.I.R.E. kids and Mr. Money Mustache before I was too old, save 20x your yearly nut, invest in mutual funds mostly, live on 4% (little less on poor market years) and your done with formal employment
Got out early, not nearly as young as some of these 'Kids' who started their freedom quest straight out of college.
I do not buy anything on a credit card that I cannot payoff at the end of the month.
There is a name for us that the credit card companies use.
Maybe, slackers.
I am getting rid of a few subscriptions, etc.
I iterate by paying down my mortgage faster. That interest savings is more than I'd save in the market.
Zero debt. 2nd job.
Max out 401k.
Live on $300 a week.
Don’t forget the lottery tickets
@@dforrest4503 And cigarettes.
@@dforrest4503Don't forget to buy them?😂
@@randymillhouse791What about them?
@@MichaelCTruth 🚬
I retired 21 years ago at 45 mainly by reducing my spending and having side gigs I enjoyed and brought in cash sometimes. Biggest has been slow flipping my home. Working on home #4 now. But there's the rub. Most people I know hate their job because they hate working...period. No interest in anything other than consuming. No interest in finding new interests.
However for me the biggest issue by far was being able to feel secure. Retiring but spend nights staring at the ceiling worried about money, investments, etc... I'd say you made a poor choice. And I did that for several years. Coming to terms with that wasn't easy. I did it by telling myself I could always go back to work. I was a software engineer so that was reasonable. That gave me the security to enjoy retirement. Also hard, but helped, was to give myself permission to do retirement things. For me it was 2-4 hour walks everyday. I could finish getting a house ready to sell a lot faster if I didn't take those walks. I have to remind myself enjoying retirement is the whole point to retiring.
"Gazelle intensity" 🦌....my people...😁 ..You can dooo it.
Careful with a personal business investments, at an old age. Not a sure thing, some hit, some have to shut down operations. Some only do well for a while.
This is good. I'm 76 and need a passive income doing something. I just don't know where to start. It would help pay for my golfing.
Find out if you can become a Marshal at your golf course and get free golf.
being passive and doing something are not possible pick one.
4:08 Cost, cash flow and capital, the 3 C's of retirement. Cut costs...
Cut costs is a cash flow issue.
Recently, I've been thinking of investing in dividend stocks for retirement, and I've set aside $350,000 to do so. However, I'm getting cold feet, maybe because I'm a beginner with no understanding what I'm doing; please advise.
I worry about the same thing since I don't want to mess up.
The market can be risky. Cds are paying a guaranteed 5%. Sign up on fidelity and look. Make sure the cd can not be recalled. I've heard VTI is good if you go market route.
YOU MAY EARN MORE MONEY BUT INFLATION EATS IT UP
I hear you
Especially in the last few years.
I have no credit score because I don’t borrow money anymore, how is that going to effect my retirement?
You are asking the wrong question : It won't effect it at all, it may affect it.
I used to be indecisive but now I'm not sure.
@southbound: very witty.
😃
I used to have a drug problem but now I make enough money.
I am very concerned about the direction we are going in as a country and how it has affected out retirement savings. This makes me leery of investing. I’m afraid of losing pour investment and having nothing.
As a country we are doing great; we have the most nuclear aircraft carriers, so no one will take your SS away and leave you with nothing.
As a country we’re doing great?? My grocery bill is more twice it was a year ago. I work in the utility industry. More people are unable to pay their utility bills this year than last year. Fir list people, housing is unaffordable, vehicles are unaffordable, medical care is unaffordable. In what way are we doing great? And as far as nuclear aircraft carriers, our military has been gutted by the morons in Washington. We were Navy in the height of the Cold War. Our military has been consistently cut since Clinton.
Is it safe..IRA,?? bank closure?
you want safe? one word: diamonds.
😊😊😊
Fortunately (or unfortunately?) none of these 6 categories apply to me.
I can’t read the list of Opportunity Categories that fast or remember them! Please add text to the screen that spells out which Opportunity Category you are calling by its number.
At beginning you mentioned NY but photo looked like Chicago to me. Sorry format of the video hurt my eyes as background was to white. Seems presentation was rushed. Need to revisit it later.
This needs to be titled “Common sense Investing Tips”. Not worth watching if you have basic knowledge of investing. And if you are 5 years out from retirement and you didn’t know these things already you don’t deserve to retire.
Unless there was an unexpected catastrophe, there is NO excuse for having essentially no money moving to the retirement years. Q: Did you know age 65 was coming?
Makes me wonder how things will look in 50 years, SS should be depleted and what half the US population has little to nothing saved.
No one in their twenties thinks 65 is coming.
It's not taught in corrupt public schools
You're starting to sound a little like Baracules Geoff! I'm surprised if you follow his channel. 🙂
This is entering the realm of clickbait. Not sure how cutting menial cost helps anyone retire in 5-7 years. I already do all that and more for the past 10+ years. I save 50+% of my income, live below my means, and even have a perfect 850 credit score but Im no where near retirement.
It depends on what kind of income you want in retirement. Say someone has an income of $50k/year at retirement. Our retirement fund manager says that most people will need at least 65% of their working-life income to maintain their lifestyle in retirement. That includes social security. Say that you'll get $2k/month in social security. You've been earning $80k/year. You've been spending half your take-home pay of about $4-4.5k/month, depending on your state income taxes, etc., so you've been living on about $2k. What would change?
@@edennis8578 I do know quite a lot about this topic. From safe withdraw rate, Monte Carlo simulations, ACA subsidies, differing retirement savings vehicle from 401k, roth, to non-qualified deferrals, and tons more. We have a spreadsheet which can quite accurately forecast when we can retire. It will even tell us how to move funds between 401k, roth, deferred income to minimize RMD while optimizing for ACA subsidies. It takes a lot of planning, years of aggressive savings, smart tax reduction strategies, enough time for compound growth, and more. This video makes it sound like changing your spending habit can set you up for retirement in 7 years. This is far from accurate even with the most conservative retirement budget.
Hum, I thought this was going to be a bit more in depth.
Thanks for the comment
Selling drugs like Walter White?
I’ve been thinking about it 😅🤣
Your funny. He lost everything in the end including his family and own life.
The most powerful change I made that started an avalanche of savings is to stop buying cars and reduce the expenses associated with them. The total cost of car ownership is extremely high when you consider the actual utility you get from them. Cars are generally parked during the day and not used. Therefore, you have a depreciating asset taking over a thousand dollars of cashflow out of your budget (car note, insurance, taxes, etc.). In 2007, I decided to be more purposeful about my car use and combined trips whenever possible. In addition, I let Amazon and others do the movement of products to my home whenever possible. My 2007 car was paid off in 2010 and currently has 32K miles. I use the car strategically and have it for times when I decide I want to use it (tired, late night, long trips, etc.). Thirteen years of no car payments and very low operating costs allowed my to invest/save with zero discomfort.
If you own a home, schedule when you want to perform upgrades/maintenance based on opportunities (sales, rebates, tax incentives, etc.). As you prepare for retirement, there will be a window where it makes sense to sell and downsize. If your house has been updated, it will be market-ready and you can sell on the market uptick and buy the downsized unit on a market recession.
When you can save, life seems less cloudy and more sunny. One can PLAN for the future instead of REACTING to things that happen.
How does average person get around without a car? Even used cars with 200k are over $10k.