Can I Retire at 55 with $1,000,000 in Retirement Savings?!? || Maybe! 🚨🚨🚨
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- čas přidán 30. 07. 2023
- 🚨🚨🚨 Retire at 55 with $1,000,000 in Retirement Savings || Maybe! 🚨🚨🚨
The dream of retiring at 55 with a cool $1,000,000 in the bank is undoubtedly enticing. We've all seen those retirement success stories and inspirational posts floating around. But let's take a step back and have an honest conversation about retirement planning. 🤔
🛑 Reality check: While early retirement is an achievable goal, it might not be as straightforward as it seems. Saving up a million bucks takes dedication, sacrifice, and strategic financial and retirement planning. 💰💪
💡 Here are a few points to consider before setting your heart on that magic number:
1️⃣ Inflation: $1 million today won't have the same purchasing power decades from now. Consider the impact of inflation on your retirement savings and adjust your financial goals accordingly.
2️⃣ Unexpected Expenses: Life is unpredictable, and unforeseen expenses can pop up, such as medical emergencies or family needs. Make sure you have a solid emergency fund to avoid tapping into your retirement savings.
3️⃣ Market Volatility: Investing in the stock market can be rewarding, but it's not without risks. The market can be volatile, affecting the value of your investments. Diversification and a long-term perspective are essential to weathering market fluctuations.
4️⃣ Rising Healthcare Costs: Healthcare expenses tend to rise with age. Plan for these costs in your retirement budget to avoid any financial shocks down the road.
5️⃣ Lifestyle Expectations: Consider the lifestyle you want to maintain during retirement. Will $1 million be enough to support your desired lifestyle for potentially decades?
📈 The good news is that there's no one-size-fits-all approach to retirement planning. Everyone's situation is unique, and there are various strategies to pursue financial freedom. 💡
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Retirement income strategies and retirement income planning are two big pieces to anyones retirement planning calculator. Whether you are wanting to know strategies for "retirement planning at 30", "retirement planning at 40", "retirement planning at 50", or even "retirement planning at 60" understanding how much retirement income that you want versus how much you need gives you a roadmap to follow to and through retirement.
Here at Pearl Wealth Group, we run a trademarked retirement investment and retirement income plan for individuals and families who are wanting to retire called "Your Financial EKG™." What we are trying to visualize is how long a persons retirement savings are going to last throughout retirement. If you are looking for early retirement planning tips or trying to saving for retirement in your 50's, You Financial EKG™ is a great tool to help you understand where you are retirement planning. Retirement planning and retirement income strategies shouldn't be complicated. They should just be done right.
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❌ *Please make sure you talk with your CPA, Financial Advisor, Retirement Planner, or Investment Advisor Representative, before implementing any content from this channel. All videos are for informational and educational purposes only. None of the content, comments, responses, information, or any other item on this channel constitutes financial advice or recommendations. Please call Pearl Wealth Group at 813-807-5060 to go through your Retirement Income, Retirement Investments, or Retirement Plan in more detail.* ❌
Pearl Wealth Group
Drew Blackston, CRC® & RFC®
Office: 813-807-5060
Info@pearlwealthgroup.com
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Getting you to Retirement, through Retirement, & protecting YOUR ability to stay in Retirement!
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Robert spends too much money, $70k a year expenses, while only saving $900 a month. Getting out from under that house is the first step in the right direction. Taxes and maintenance down the road will eat his lunch if his spending habits do not do it first.
Agreed
Comprehensive and easy to understand as always for us that do not have a PHD in math. Nice analysis Drew.
Thanks for watching!
With the software I think it would be a good idea to reduce/change the expenditures as the subjects age. $5k or $10k per year in travel budget is all well and good at the start, but you shouldn't extrapolate that out to beyond 80 for the typical person. Not to mention food/clothing/entertainment etc. Your scenarios definitely get people to 99% preparedness, and that is great if you can buckle down and do it. But folks also need to let off the gas, I think, once their plan has a success rate of > 90%. You can always adjust spending/withdrawals mid-retirement if you are debt free, but you can't get years of your life back.
Very true Dave!
Good video, definitely working longer is better with his current expenses
Thanks John!
Good video Drew. I guess a million just isn't enough anymore. I wonder if some early Roth conversion make any difference. Probably not enough. Maybe hoard cash the next few years and either pay off that house before retirement or sell it and downsize. That would be a huge piece of the puzzle.
Ray you are 💯 correct!
not really excited about retiring with a mortgage..... thats adding to his stress.. without that payment he could probably retire now
@@dagobaker Debt is a killer. I feel that you absolutely need to have a solid plan to deal with it if you're not going to start out with it gone. As an example, we have a little left on the house, but it is almost all principle and at 2.25% so there seems to be no hurry for us to pay it sooner. I plan to sell it and move to a ranch vs a two story for our retirement years anyway. So being done with it doesn't make sense to me right now, but knowing I have the cash reserves to just pay it off anytime is a game changer.
@@rayanderson3164 blows my mind what mortgage rates were … really hard to believe that system existed and makes sense why prices blew up
7% is more normal….
@@dagobaker It was magical. I doubt we'll be there again anytime soon. For us it reaffirms debt is the enemy. We're very careful to not take on anything we can avoid or pay cash for these days.
From age 55 to 62, wouldn’t his portfolio appreciate to a level greater than $1.2 million?
I'm 48 with s 54k pension that does not adjust with inflation. I will be hit by WEP on my SS benefits(if they exist). I would need to work to 71 to eliminate WEP with 120 quarters; 80 quarters at 61.
I'd like to spend 90k per year in today's dollars during retirement. How much do I need to draw at 4% until age 90?
I'm confused
80% conservative and projection of 6%?
If and when interest rates drop how would that be possible. It's doable now with say 80% T Bills and 20% stocks but I think interest rates will definitely drop back at some point
They might but history shows they have to stay higher longer to curb inflation
I know he doesn't want to move, but I would sell the house and move to someplace with no mortgage, get a part-time job and that probably would sustain him.
Good idea 👍 💡 Jason!
That is my plan! Hope to semi retire around 55
Property taxes can equal a mortgage payment. Tough to live in an ideal place with low property taxes.
1mil gives you 50K a year reoccurring on 5%. live on 50K or under and your good. Take less out of 1mil monthly when you can get SS. his monthly expenses running of 2K mort, 830 travel exp monthly, and 4K running on top of that is way too high. my house is paid off. my cars and bike are paid off. I got solar paid off so no power bill. I spend about 2K a month for everything and that includes 800 on food.
Awesome Shawn!
It’s the 3% inflation. 50k a year is $70k in 15-20 years. As you said you have to cut expenses or cut inflationary expenses.
I agree. 1 million only. Do not retire with a mortgage. 2 million or other passive income sure.
I missed his cash ? Ouch.
I corrected my comment below.
Somebody didn’t check the right boxes.
60k a year in investment asset increase. And spending $60k a year. Yet his spendable assets decreases $55k a year. Even if I add $24k a year for nine years for mortgage he gets as of that much (more later).
What’s going on. 😂😂😂😂
This is funny bunny math.
A huge risk for him is sequence of returns. Just look at what happened to a lot of retirement accounts in 2022. 25% losses weren't uncommon.
Being debt free just makes things so much easier. That $2k mortgage could be going into buying a rental property or into a Roth. I paid my mortgage off at 51, turned that house into a rental, paid cash for my next house, sold it during the crazy days, and bought the farm where we live now. I couldn't have done all that with a bunch of debt.
I couldn't make solar pencil out. A complete system would have a 13+ year payback for me, and that would be assuming no repairs and the batteries were still good in 13 years. I have solar capacity to run freezers, lights, and such but AC is the holy grail. Server rack batteries are getting cheaper every day so I could revisit the project. I have a 7 acre pasture with a clear southerly sky so I could have all the panels I need.
@@jdollar5852 exactly
This is me I’m 55 and have about 1.3 M saved in my 401k and IRA’s plus I have a pension but I’m not leaving until I’m 58 like my benefits to much
Awesome!
If I leave my funds in the S&P till I retire where do I put them in retirement? You are calculating these as if you just leave funds in the S&P when you retire and start taking withdrawals.???
Not necessarily. You want a well diversified approach. I’m not talking about any specific investments. Just risk tolerance and withdrawals. Great question!
this is a great question the EKG guy does not go into. look up index funds. leave it in there and only pull out what you need for three years to start and have some cushion. Then pull out yearly. This way the small amount you sell yearly is cap gains after first year holding it. taxes will be miniscule.
@@Co-SS
No preferential tax treatment on pre tax distributions
If you leave all your funds in a stock index fund till retirement, what happens if the market drops 50% just before you retire?
You want to derisk in general about 5 years before retirement (start adding fixed income)
@@johngill2853 Great answer!
How does retiring early, say 55, affect social security payout? Will social security payout be reduced by going 5 or 10 years and not working before claiming?
Yes it will. You can check on SSA.gov to see how yours would be effected
@@yourfinancialekg when you do EKG, will your software take into account a slightly lower Social security payout due to retiring early or do you just use the amount ssa.gov gives at that time? Just curious on the math as I consider early retirement and SS. Thank you
@@bobknob8440 yes we take into account a lower payout if you retire early. Also, all my projections are usually pretty conservative.
@@yourfinancialekg I like the conservative aspect of planning. Thank you for the response. Keep up the good work
@@bobknob8440 Thank you so much for watching!
Say Drew, how would throwing in a spouse (even if she did not work) help Roberts situation? With the tax bracket change and extra social security, can he now retire at 55 and make his numbers?
Dramatic change
So taking SS at 62 isn’t an option ? So glad you feel comfortable with him retiring at 62 but Robert isn’t happy with it and should find a financial planner that will have him retire at 55 and take Social Security at 62 like he should be so he can retire . Again he is single he has plenty of ways to cut his spending when needed and he needs to protect some of that 401k cash since he can move it out of the 401k at 59.5 years old and invest it properly instead of it being stuck inside a 401k . Need a planner that will think out of the box instead of being married to these dam programs …
Best of luck!
lifetime guaranteed annuity? the guarantees. safety net.
@@yourfinancialekg😂
Please stop with the moronic "shocked face" thumbnails. You aren't 12. Otherwise, good content.
I am shocked that you would call it moronic 😂
This adviser is a clown. Drew, Over a million dollars and you say the money will run out in about 20 years? Do your job and get the money to grow, not just try and play the passive game.
I do like to juggle but I'm claustrophobic so I probably wouldn't do well in those small cars. Thanks for watching!