I’m 60 And Want to Retire ASAP. Is $1million Enough?
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- čas přidán 7. 08. 2024
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Burnt out at work and ready to throw in the towel, Camille came to us asking if she can retire ASAP. The initial outlook was bleak, but after compromise, we were able to make Camille and Tom's retirement plan work for them.
0:00 Intro
1:00 Assets & Accounts
2:11 Income
3:36 Savings
4:10 Expenses
4:25 Goals (Retirement Spending, Medical, LTC)
5:15 Retirement Analysis
6:07 Proposals & Plan Changes
8:00 Social Security Claiming
9:00 Retirement Spending Strategies
11:00 A Much Better Outlook!
11:49 Comparing Initial vs. Proposed Plan Assets
12:30 Ongoing Adjustments
13:00 Cashflow Mapping
14:25 Withdrawal Rate
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*This content is educational and not tax, legal, or investment advice*
I love this format. Looking forward to the next video 🙌
Thank you very much!
Hi Carmen! You might like this video I published recently with a similar format. czcams.com/video/BJ32VzaXe8w/video.html
Thanks again for your feedback!
The camera quality is amazing
Thanks so much!
I'm 59 (wife is 54) with a $1 million in retirement and $1 million in home equity. It won't work for me. I'm working toward age 67 (wife will be 62) with $2+ million in retirement and $2 million in home equity. That will work, though it will leave me with less time to enjoy it. Still, adding to my investments until I have Medicare and Full Retirement Age makes a lot of sense.
Their numbers are remarkably close to ours, with the exception of them owning their house outright and us having a mortgage on a higher-value home.
Anyway, those additional 8 years of working have a huge impact. I can easily have double what I have invested today, and I've been contributing at about 10% of earnings since 1993. So those 8 years match what took me 31 years to do so far.
It becomes a value proposition for me. Time vs. $. Quality time is worth more to me. Reading the book Die with Zero helped me understand this better.
@@CD318 My wife loves her work and doesn't want to retire for a while....and we have a kid in high school...so under my circumstances, I might as well keep working.
Andrew, thank you for your comment. A few observations:
Is there any reason behind the $2million number? (i.e. is that actually what you need to support desired spending or is it just a nice round number you are aiming for?)
Also, do you own multiple properties? $1m increase in home equity over 7 years could be a bit aggressive if it's just for one home. Of course it also depends on how much that $1m is as a % of it's current value.
@@SparkWealthAdvisors
1. Using the 4% rule, $2 million is $80k/year. at 5% it's $100k/year. With Social Security, I'd like to have $10k/month available for my budget.
2. I owe about $460k on a house that's worth about $1.55 million in the current market. Assuming I pay off the $460k and have reasonable growth in value averaging 3% per year, I should have a paid off $2 million house in 2032, though today I have about $1 million in equity ($1.55mm - $460k) roughly. I also expect to sell the house and downsize in the 2031 - 2034 timeframe, taking out approx. $800k - $ 1 million in tax-free capital gains.
Why don’t you downsize your home and use part of your home equity to retire early?
so you take all their info, how much they have and how much they spend and how long it will last, so basically you are a calculator, genius idea.... can you retire at 60 with $1mil in the bank,the answer is yes, my dad retired at 21 and just claimed benefits
Yes, that’s all there is to it! We’re just human calculators here :)
Happy for your dad!
Who is Sam? Her real name leaked? 😯
Oops- good catch! Just forgot to update account titles from a previous video. Sam is also not a real client’s name. 👍🏼
People who believe that 1mil is not enough to retire live in NY or San Francisco. You can retire with 500k or less at 20 years old and live a comfortably for the rest of your life. Just move somewhere cheap. You can live like a king in some third world countries with 1500k a month or less.
I understand where you're coming from. However, many people do not want to move to another state or country, away from family or where they have lived for decades to retire. They'd rather work longer or save more to live their desired retirement. Completely agree that it's possible to retire with much less in some destinations! Thanks for your comment.