Sorry, I'm not buying all the euphemisms for "market timing" as better than the 4% rule. Did these "academic studies" analyze what happens if we face another 1929 event and the years following? Even if they did, it's always easy to "beat" the 4% rule if you time the market retrospectively. Good luck timing it going forward.
Get yourself a good wheelchair and a wall size TV with a remote control. The mattress is important. Get larger clothes - you're gong to balloon in size from inactivity.Gym memberships are always a waste of money - The companies count on you not going. You're right on insurance - get all you can, because you're going to be going to the doctor all the time. Recognize that after 75 you are a burden on others, and move into a retirement home before your kids force you.
I m 61 yo woman and go to gym and lift weights 4 times a week, I train like a powerlifter with the focus on strength and muscle, lift heavy and push myself, also do rope skipping for cardio. I am often the oldest person there and the only person in my social circle who trains and walks!! I still work a physical job and can pick up the boxes of soda bottles with ease, it's part of my job to organise the drinks. I cut my own lawn and do all my own housework, I don't have a car so I carrry my groceries with ease, cook all my own meals. It is possible to maintain and improve muscle and strength as we age, I am stronger now than when I was 20. The problem is 99.99+% of people don't want to do hard things, they would rather take pills and embrace frailty. Anybody interested in avoiding frailty should check out "The barbell prescription" by Dr Jonathan Sullivan
@@FortressCapitalAdvisors-ju7xr You get a 2 part retirement. Part 1 is the equivalent of SS at full retirement age. Part 2 is the added RR benefit. Currently at 30 years of service it maxes at $2187 per month. This also increases for every year over 30. This amount is adjusted each year for inflation so it continues to go up until you start drawing it.
I am so bitter that they will cut SS but will spend billions on foreign wars and illegal m igrants. Now I have to bend over backwards establishing multiple income streams when I spent my whole life working.
Not a large percent of us retiring are gonna have anywhere close to a million dollars when we retire. Most of us will be fortunate to have two hundred thousand dollars. We all have to live on our social security.
I totally agree that being too conservative with investments can really hurt in the long run. I've been looking into diversifying my portfolio with crypto to keep up with inflation. Have you guys heard of My Digital Money? They make it super easy to trade crypto in an IRA. What do you think about adding some Bitcoin or Ethereum to the mix?
There are risk tolerance surveys out there. You could probably find one for free or at a minimal cost. Unfortunately, they aren't very scientific to the extent that people tend to behave very differently in the real world compared to what the survey suggests. I don't use them for that reason, but that doesn't mean you can't use one as a starting point. Beyond that, think back to your behavior while markets have sold off, particularly during large sell offs like 2018, March 2020 and 2022. Were you in a panic and close to pulling out of the markets? If so, keep more cash on hand so that you can tell yourself that you can ride out a storm. If not, you are probably not that risk averse and can let yourself be more aggressive. Also, remember that the more you accumulate the more your behavior may change. Once a 20% loss results in a loss hundreds of thousands of dollars, which is likely several years of savings, that will feel a lot different than losing 20k on a 100k account. Hope this helps.
The issue I see is that the comparison is a risk free waiting and guaranteed 24% income increase vs the risk of placing money at risk in the market. The risk free investment in treasuries averages 3%. Marrieds have a 50% chance of at least one surviving to 90. That joint life analysis shows an average benefit to the couple by delaying to 70 of roughly 10 years of increased income. Slam dunk, wait until 70.
I plan on waiting till 70 for 2 reasons. 1. Maximize the survivor benefit which will help cushion the blow of losing the other SS check and higher tax burden. 2. Unlike other ordinary income fully taxable for fed and state, at least 15% of SS is tax free for fed and 100% is tax free in my state. Thus I want to maximize the income and COLA for SS which will be taxed at 20% vs 30% for my other income.
Very interesting! I do have one question though... In your 2nd reason to WAIT to take SS until age 70 you say "Because you don't need it", but if you don't need it, then aren't you forfeiting opportunities to have invested that UNNEEDED SS money in higher risk equities (with 8-10+% yields)? Also, I think your marital status should be a factor in whether you wait or not. My wife passed away when I was 60 and while having 2 potential beneficiaries of my SS would bias me to waiting until 70, by having only one MALE beneficiary of SS, I think my chances of outliving the breakeven point are much less than if I were part of a couple. Another reason to not wait until 70.
totally agree with your rationale. You are definitely forgoing the opportunity to reinvest the money. But it goes back to the other points in the video. What do you value most? If you already have enough income, and a big priority of yours is being prepared to live past 100, why not wait until 70 to maximize the income? In my experience, most retirement plans show a better outcome when waiting to 70 IF the person lives an extra long life, even when factoring in the opportunity cost of waiting. And remember, if you don't achieve that 8-10% return and instead get something closer to 5-6%, that makes a big difference in the outcome too. Some people prefer the certainty of knowing they have a check to dealing with the vagaries of the stock market.
