@12:30, i would have done a reverse rollover from rollover IRA into the current 401k. thats what i did in Feb this yr and retired May 31st under rule off 55 but I am 54 until Dec. use my 401k until its depleted and then start with Roth. Have my taxable account as a backup. take SS whenever i feel like it and see if congress steps in on the sunset of the tax cut for end of 2025. No RMD's and no worries.
@@alvaroalvarez5009 Great question, please check with you CPA or tax accountant for exact info (Sorry I can't give tax advice in comments...compliance issue)
Numbers look doable when calculated for individual people on the ship. But what if the same calculations are performed on the TITANIC, the ship that we're all in. By their own forecast, government Debt will reach nearly $50 Trillion by 2033. Will Social Security Payments even be sustained at levels promised to people? Inflation at 3%? when federal printing presses will be red hot propping up the failing U.S. financial system (soon, with the largest government disbursements going to debt service). All the while people's net worth and purchasing power plummet. Not to mention when the U.S. petrodollar gets dumped sometime in the near future. Politicians and bureaucrats have painted us into a no-escape situation. In my opinion, Government mismanagement is insurmountable and fudging the numbers won't help us individually here unless you happen to be extraordinarily wealthy.
I think your calculations are very optimistic. I have a handsome retirement due to my navy pension and VA disability, and now social security.we still have 1,500,000 in the bank which we haven’t touched. I think getting a 6% return on that money right now in 2023 is very very unrealistic. My running expenses are $3600 a month between taxes, condo, fees, utilities, etc. my last car last at 16 years, I finally broke down and bought a new Lexus RX 350 with 10% down and have a payment of 765 a month. I think it’s impossible to retire with anything less than 2 to 3,000,000 and being debt-free in today’s economy outside where you live in a low cost area.
I disagree with you. i am not saying you are wrong I just disagree. I am same boat as you (retired Army) but i dont have 1.5M in the bank (~500k in 401k, ~300k in Roth and 300k in taxable ). I have 2 mortgages, a Yukon, Camaro, Maserati and a class A RV with no payments. retired this yr with rule of 55. got to have a good plan. But thats me GL
@@maritoreyes6392 life expectancy is 75. That's decades on average. 10 decades if you're eating above average diet. I worked to buy freedom from working. Others work to 'buy more work'. To each his own
@@yourfinancialekg thank you for the answer. Since you presume (I think correctly) that there will be future inflation of goods and build into that an average 3%, then I think you really must also take a similar approach and take a conservative average cola to the projected future SS payments. By doing so, again conservatively, you will provide a better estimate to the income gap needed between estimated costs and estimated SS payments, which will of course change the math and projection for the better in each of the 500, 750 and 1M models. I recommend you provide another video for us with these adjustments for us to see and understand as further projections. You may well need another new black marker 😀
@@yourfinancialekg lol yeah that doesn’t really fit my plan. I prefer buying real estate and growing income. Just need to learn how do benefits and everything else.
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This is the 1st time that I've heard about the 25 rule. I was contemplating taking retirement at age 60. This definitely effect my decision.
😮😮😮
Glad we can help!
@12:30, i would have done a reverse rollover from rollover IRA into the current 401k. thats what i did in Feb this yr and retired May 31st under rule off 55 but I am 54 until Dec. use my 401k until its depleted and then start with Roth. Have my taxable account as a backup. take SS whenever i feel like it and see if congress steps in on the sunset of the tax cut for end of 2025. No RMD's and no worries.
Great job!
Covering your own health care for 10 years before Medicare kicks in would cost a fortune.
That’s why it’s important to keep the taxable income below the maximum threshold for ACA.
That's my plan!
@@yourfinancialekgfor ACA purposes, is rental income considered as gross or net income?
@@alvaroalvarez5009 Great question, please check with you CPA or tax accountant for exact info (Sorry I can't give tax advice in comments...compliance issue)
You need to apply 12yr of COLA on the 2800 SS to be accurate since you are inflating expenses to future dollars
Great comment but cola is not guaranteed so I don’t like to apply
Thank you for doing this breakdown! I appreciate you using a single person without pension model. Very helpful in clarifying my thoughts. Well done!
Thank you for watching!
Numbers look doable when calculated for individual people on the ship. But what if the same calculations are performed on the TITANIC, the ship that we're all in.
By their own forecast, government Debt will reach nearly $50 Trillion by 2033. Will Social Security Payments even be sustained at levels promised to people? Inflation at 3%? when federal printing presses will be red hot propping up the failing U.S. financial system (soon, with the largest government disbursements going to debt service). All the while people's net worth and purchasing power plummet. Not to mention when the U.S. petrodollar gets dumped sometime in the near future. Politicians and bureaucrats have painted us into a no-escape situation. In my opinion, Government mismanagement is insurmountable and fudging the numbers won't help us individually here unless you happen to be extraordinarily wealthy.
True
Great content, lousy marker!
Thanks for switching markers at 7 minutes!!!
@@stevemlejnek7073 Im running out of ink planning retirements! 😂
What about changing the age that you begin taking Social security? Would that help preserve your cash in the 500k example?
Great idea 💡! It certainly would help
You need to COLA the social security. It won’t stay at the $2800
Very true, but I’m conservative in my planning since cola is not guaranteed
I think your calculations are very optimistic. I have a handsome retirement due to my navy pension and VA disability, and now social security.we still have 1,500,000 in the bank which we haven’t touched. I think getting a 6% return on that money right now in 2023 is very very unrealistic. My running expenses are $3600 a month between taxes, condo, fees, utilities, etc. my last car last at 16 years, I finally broke down and bought a new Lexus RX 350 with 10% down and have a payment of 765 a month. I think it’s impossible to retire with anything less than 2 to 3,000,000 and being debt-free in today’s economy outside where you live in a low cost area.
Thank you for your service 🇺🇸!
I disagree with you. i am not saying you are wrong I just disagree. I am same boat as you (retired Army) but i dont have 1.5M in the bank (~500k in 401k, ~300k in Roth and 300k in taxable ). I have 2 mortgages, a Yukon, Camaro, Maserati and a class A RV with no payments. retired this yr with rule of 55. got to have a good plan. But thats me GL
Does rolling a Roth 401k into Roth IRA a taxable event at 59 1/2 when retiring at that age?
Not a taxable event
I retired at 33 years old.
Wow
Question, Having retired early, what do you think is the actual minimum expenses yearly most Americans need to survive in retirement.
@@economicdevelopmentplannin8715most people don’t live long, who cares about retirement? Just live and be happy I love working
@@maritoreyes6392 life expectancy is 75. That's decades on average. 10 decades if you're eating above average diet. I worked to buy freedom from working. Others work to 'buy more work'. To each his own
I get the impression you think about this stuff alot.😅😉
Too much 😂
6% average rate of return is low. 10% is realistic over time
I hope so!!!!
$1million @6% = $60K a year. How did it get to zero? What am I missing?
Liked the video
Inflation. Thank you for watching!!
Question: is the $2800 SS in today's dollars, or inflated for 12 years into the future for taking at age 67?
Todays dollars bc cola is not guaranteed
@@yourfinancialekg thank you for the answer. Since you presume (I think correctly) that there will be future inflation of goods and build into that an average 3%, then I think you really must also take a similar approach and take a conservative average cola to the projected future SS payments. By doing so, again conservatively, you will provide a better estimate to the income gap needed between estimated costs and estimated SS payments, which will of course change the math and projection for the better in each of the 500, 750 and 1M models. I recommend you provide another video for us with these adjustments for us to see and understand as further projections. You may well need another new black marker 😀
@@stevemlejnek7073 Markers have been ordered!
Does the Rule of 55 apply to 403b or 457?
403b yes but check with plan admin. 457 doesn’t have 10% penalty just taxes.
Is 72t needed for 401k?
If you roll 401k into IRA under 59.5, yes. Rule of 55 could apply if funds stay in 401k.
@@yourfinancialekg thanks,
How can I retire at 45?
Save
@@yourfinancialekg lol yeah that doesn’t really fit my plan. I prefer buying real estate and growing income. Just need to learn how do benefits and everything else.
You need to apply 12yr of COLA on the 2800 SS to be accurate since you are inflating expenses to future dollars
Great comment but cola is not guaranteed so I don’t like to apply