I forgot to add that it’s like a sack of $2M under the pillow that you can’t touch. You only get the interest while the city controls the principal. And when you die, the city takes the rest from under the pillow 😆
50k/mo over 40 years would amount to $2 million in nominal dollars, but that amount of money discounted to the present value would probably yield less than a million.
Hi Johnny. When I mentioned the 2 million number I was comparing it to a SPIA. Does your pension have any cola or is it stuck at 50k for ever? I worked in a big police dept ( not as big as NYPD, it had about 1200 sworn) for 13 years. In that dept the average second lieutenant makes about 120k base salary. That dept has a pension of 70% of base salary after 25 years, but with sick leave saved you could get out at 23 years. That would mean the the second lieutenant pension is 84k. In addition, their pensions receive some cola every year. My own situation is I will receive 34k a year when I turn 55, since I only did 13 years of work. In addition, my retirement accounts are approaching 2 mil: $1,321,000 in 457, $235k in roth and $248k in 401k.
@@richardm.441 hey. Ah I see. But that $2M number is generally thrown around by cops as well. Lol. Not just you. So my point to them is don’t just take that $2m and think you’re gonna be rich when you retire. Plan ahead ;)
@@richardm.441 well done on your numbers!! You’re likely in the top 5% :) Yeah I hate throwing my own numbers out there but as a Lt with 22 years, yeah my pension is around the same as those you mentioned.
Hey, i am on the job too, i am maxing out 457 because unfortunately i am tier 3. Do you know if it is worth staying 25 or leave at 22 1/2 to get the cola?
Nice video. We did well saving for our retirement. But it is painful watching this rapid inflation that has been going on actually cut our buying power in half. Also, your wife not being able to be a beneficiary on your pension seems like something that should be changed. Even a reduced inheritance would be better than nothing. You put yourself on the front lines to provide for her as much as for yourself.
@@texasranchrocks almost 100% of retirees choose the same option as me, and then buy a life insurance policy for the spouse. That’s the way to go for our scenario, which I will go into in the next video
Thank you for sharing your experiment. I am 49 years old with 2 kids at age 2 and 3. I have 1 rental property pay off with $3k cash flow, current home with remaining mortgage of $220k. I have a fidelity account that I invest in stocks only about $1 mil. I current work for retail and take home about 70k. I saw your videos and it's making me want to retire early so I can spend more time with my kids and wife. I am worry about not having the health benefit if I retire early. You and me are having similar philosophy which is living below our mean and save. How much do you need to feel financial secure assume that I live to 80 years old. Also, my wife had breast cancer 4 years ago. It scared me if something is happened to her and my kids and I don't have health benefit. I have been working for 30 years...life is too short and I don't want to work until 65 to retire and my health may not be the best at that age if I want to travel. What do you think? I wish that I have pension like you and your wife 401k. 😂😂
Hey Frank Thanks for dropping by and telling me your story. Yes life is too short. You’re doing very well financially. But I’d need some more numbers specifically your yearly expenses. However, please stand by for a video on the topic. It’s on my list of videos to do. List gets longer every day as people ask more questions lol. So keep asking questions and giving me ideas. Keep up the great work. You’re doing very well. And will soon be free!!!!
Hey Frank Thanks for dropping by and telling me your story. Yes life is too short. You’re doing very well financially. But I’d need some more numbers specifically your yearly expenses. However, please stand by for a video on the topic. It’s on my list of videos to do. List gets longer every day as people ask more questions lol. So keep asking questions and giving me ideas. Keep up the great work. You’re doing very well. And will soon be free!!!! Ok, I love the fact that you have a rental completely paid off. Having a single rental can become a liability if it’s not paid off. So that’s a great thing. Nice cash flow from it too. And I’d want my primary to be paid off as well. I know it may be low interest rate. But it’s just a peace of mind. I want my fixed income to be as high as possible and my fixed costs to be as low as possible for safety. Hope that helps. And look out for the video;)
Hi John. When you retire, what kind of health insurance do you have for you and your family. I currently work for Verizon and I pay less than $200 a month for my family of 4. I just google it, if you don’t work for any company then you can pay up to $2000 a month for a family of 4. That will eat away my rental income. Don’t forget I have property tax roughly $12k a year. I also have $500 HOA. I live in CA. With no additional income coming from work, my saving is not gonna go very far. Of course then I can sell my properties. However, we want to give it to our kids since we are Asian. What do you think about giving your wealth to your kids. My current mortgage is $1200 and HOA is $500. I can pay it off but I will have less on the savings. How much enough to live comfortably? We like to travel at least 2 times a year. The feeling not having work income and affordable health insurance benefits keep me from retiring.
@@franktiet hey Frank, Wow that’s a tough call. As I’ve said before you’ve done quite well. But is it enough to retire on? That’s a tough call. 1. Health insurance is a huge concern. You asked what kind of insurance I have after retirement. Luckily I’m covered for life by my union. That’s one of the biggest benefits I get and I’m super appreciative of. You’ll have to figure out a way to afford that post retirement. 2. You need to figure out your annual expenses. And then figure out what your potential income may be after work. 3. Screw the kids lol. That’s what I always joke about. But seriously, we have a 529 plan for each, with barely enough for state school. That’s it. If they want to go to a more expensive school they have to borrow from us, with minimal interest. But borrow. We don’t want to give them everything. They must feel the pain of having to work for things. 4. As for leaving my kids property: screw the kids. Haha. Seriously, we have no idea where they will have a job or want to move to or get married to spouses and move etc. I asked my wife about your case and she agrees that you guys should worry about YOU first and foremost. Bc if you can’t take care of yourselves your kids will end up having to take care of you anyway. And that’s more problematic. Use the rental asset to take care of yourselves first. Also, we both had wanted our parents to use their primary home $$ to take care of themselves first instead of trying to live in their homes going broke, tryin to leave their homes to us. It made no sense. Hence why we pursuaded all of them to sell their homes in order to support their retirements.
Hello helloworld! Thanks for dropping by. I’ll have a minimum standards to retire video in near future. As for your question, 4% rule states you need $2.5M to produce $100k. But I’d want more safeties built in. It’s not just about the 4% rule. That’s just a rule of thumb of course. I’d want my primary home and cars paid off to reduce fixed costs. Amongst others. However, in lieu of those requirements, if you have a shitton of extra millions, then it doesn’t matter lol. As long as you can produce X times your annual expenses, you’re good to go. And I will go into that in the future video. Look out for it ;)
I forgot to add that it’s like a sack of $2M under the pillow that you can’t touch. You only get the interest while the city controls the principal.
And when you die, the city takes the rest from under the pillow 😆
So interesting to see an Asian guy with a New York accent. What borough?
@@bakerstreet101 Bk first and then queens for the last 35 years :)
I was at this temple. Way back in 2009
Still have fotos from it. Love it!
@@DarkoFitCoach yeah I LOVE the old cultures and architecture etc
@@RetireearlyNYC great that u are travelling and enjoying. Nothing more educating and fullfilling then travelling in my opinion
50k/mo over 40 years would amount to $2 million in nominal dollars, but that amount of money discounted to the present value would probably yield less than a million.
@@barbechivowhat discount rate would you use ? 3-5% ?
@@byron9630 yeh probably. It's been a while since I did those calculations in college.
This is over my head lol.
Hi Johnny. When I mentioned the 2 million number I was comparing it to a SPIA. Does your pension have any cola or is it stuck at 50k for ever? I worked in a big police dept ( not as big as NYPD, it had about 1200 sworn) for 13 years. In that dept the average second lieutenant makes about 120k base salary. That dept has a pension of 70% of base salary after 25 years, but with sick leave saved you could get out at 23 years. That would mean the the second lieutenant pension is 84k. In addition, their pensions receive some cola every year. My own situation is I will receive 34k a year when I turn 55, since I only did 13 years of work. In addition, my retirement accounts are approaching 2 mil: $1,321,000 in 457, $235k in roth and $248k in 401k.
@@richardm.441 hey. Ah I see. But that $2M number is generally thrown around by cops as well. Lol. Not just you. So my point to them is don’t just take that $2m and think you’re gonna be rich when you retire. Plan ahead ;)
@@richardm.441 well done on your numbers!! You’re likely in the top 5% :)
Yeah I hate throwing my own numbers out there but as a Lt with 22 years, yeah my pension is around the same as those you mentioned.
@@richardm.441 as for cola, it only happens to the first $18k or something minuscule. So I’m not counting on that to fight inflation ;)
Hey, i am on the job too, i am maxing out 457 because unfortunately i am tier 3. Do you know if it is worth staying 25 or leave at 22 1/2 to get the cola?
@@weifob1 hey wei
Sorry I don’t know about your tier. I’d have to study the numbers as well as your individual numbers
@@weifob1 maxing out the 457 is huge. Good for you. You’ll more than likely be alright with a pension and 457 filled
Thank you, i hope this job will be my last job. Enjoy retirement @@RetireearlyNYC
Nice video. We did well saving for our retirement. But it is painful watching this rapid inflation that has been going on actually cut our buying power in half. Also, your wife not being able to be a beneficiary on your pension seems like something that should be changed. Even a reduced inheritance would be better than nothing. You put yourself on the front lines to provide for her as much as for yourself.
@@texasranchrocks thanks. Yeah there were options. One with 1/2 beneficiary. But it also cut my pension in half. So that def was not doable.
@@texasranchrocks almost 100% of retirees choose the same option as me, and then buy a life insurance policy for the spouse. That’s the way to go for our scenario, which I will go into in the next video
I would be curious to know how good the sushi lunch would be there, and how much $...? Cheers from Canada
@@SYNERSTAR the sushi is excellent of course;)
And about half the price of NYC. :)
Thank you for sharing your experiment. I am 49 years old with 2 kids at age 2 and 3. I have 1 rental property pay off with $3k cash flow, current home with remaining mortgage of $220k. I have a fidelity account that I invest in stocks only about $1 mil. I current work for retail and take home about 70k. I saw your videos and it's making me want to retire early so I can spend more time with my kids and wife. I am worry about not having the health benefit if I retire early. You and me are having similar philosophy which is living below our mean and save. How much do you need to feel financial secure assume that I live to 80 years old. Also, my wife had breast cancer 4 years ago. It scared me if something is happened to her and my kids and I don't have health benefit. I have been working for 30 years...life is too short and I don't want to work until 65 to retire and my health may not be the best at that age if I want to travel. What do you think? I wish that I have pension like you and your wife 401k. 😂😂
Hey Frank
Thanks for dropping by and telling me your story
Hey Frank
Thanks for dropping by and telling me your story.
Yes life is too short. You’re doing very well financially. But I’d need some more numbers specifically your yearly expenses. However, please stand by for a video on the topic. It’s on my list of videos to do. List gets longer every day as people ask more questions lol. So keep asking questions and giving me ideas.
Keep up the great work. You’re doing very well. And will soon be free!!!!
Hey Frank
Thanks for dropping by and telling me your story.
Yes life is too short. You’re doing very well financially. But I’d need some more numbers specifically your yearly expenses. However, please stand by for a video on the topic. It’s on my list of videos to do. List gets longer every day as people ask more questions lol. So keep asking questions and giving me ideas.
Keep up the great work. You’re doing very well. And will soon be free!!!!
Ok, I love the fact that you have a rental completely paid off. Having a single rental can become a liability if it’s not paid off. So that’s a great thing. Nice cash flow from it too.
And I’d want my primary to be paid off as well. I know it may be low interest rate. But it’s just a peace of mind. I want my fixed income to be as high as possible and my fixed costs to be as low as possible for safety. Hope that helps. And look out for the video;)
Hi John. When you retire, what kind of health insurance do you have for you and your family. I currently work for Verizon and I pay less than $200 a month for my family of 4. I just google it, if you don’t work for any company then you can pay up to $2000 a month for a family of 4. That will eat away my rental income. Don’t forget I have property tax roughly $12k a year. I also have $500 HOA. I live in CA. With no additional income coming from work, my saving is not gonna go very far. Of course then I can sell my properties. However, we want to give it to our kids since we are Asian. What do you think about giving your wealth to your kids. My current mortgage is $1200 and HOA is $500. I can pay it off but I will have less on the savings. How much enough to live comfortably? We like to travel at least 2 times a year. The feeling not having work income and affordable health insurance benefits keep me from retiring.
@@franktiet hey Frank,
Wow that’s a tough call. As I’ve said before you’ve done quite well. But is it enough to retire on? That’s a tough call.
1. Health insurance is a huge concern. You asked what kind of insurance I have after retirement. Luckily I’m covered for life by my union. That’s one of the biggest benefits I get and I’m super appreciative of. You’ll have to figure out a way to afford that post retirement.
2. You need to figure out your annual expenses. And then figure out what your potential income may be after work.
3. Screw the kids lol. That’s what I always joke about. But seriously, we have a 529 plan for each, with barely enough for state school. That’s it. If they want to go to a more expensive school they have to borrow from us, with minimal interest. But borrow. We don’t want to give them everything. They must feel the pain of having to work for things.
4. As for leaving my kids property: screw the kids. Haha. Seriously, we have no idea where they will have a job or want to move to or get married to spouses and move etc. I asked my wife about your case and she agrees that you guys should worry about YOU first and foremost. Bc if you can’t take care of yourselves your kids will end up having to take care of you anyway. And that’s more problematic. Use the rental asset to take care of yourselves first. Also, we both had wanted our parents to use their primary home $$ to take care of themselves first instead of trying to live in their homes going broke, tryin to leave their homes to us. It made no sense. Hence why we pursuaded all of them to sell their homes in order to support their retirements.
What do u need with 4% rule withdraw rate $100k annual spent? What would you be comfortable with?
Hello helloworld!
Thanks for dropping by. I’ll have a minimum standards to retire video in near future. As for your question…
Hello helloworld!
Thanks for dropping by. I’ll have a minimum standards to retire video in near future. As for your question, 4% rule states you need $2.5M to produce $100k. But I’d want more safeties built in. It’s not just about the 4% rule. That’s just a rule of thumb of course. I’d want my primary home and cars paid off to reduce fixed costs. Amongst others.
However, in lieu of those requirements, if you have a shitton of extra millions, then it doesn’t matter lol. As long as you can produce X times your annual expenses, you’re good to go. And I will go into that in the future video. Look out for it ;)
Is your pension inflation adjusted ?
@@byron9630 only the first $18k gets a cola adjustment, which probably does not keep up with inflation. So I don’t even count on it
Long walk, smarty numbers guy still talking, bueaty red buildings
Thanks!