One thing I would like for you to clarify is the $3700 SS. Unless the person has full 35 years of high income at 55, it is really unlikely to have that high SS at FRA. Right? The projection of $3700 a month is based on full 35 years of high income. It is difficult for a 20 years old to make6 figures.

Thank for the level headed video. There are too many of those who are preaching one could “retire” in their 50s with 500k. Yes, it is possible to survive and most of those are doing part time jobs. You made one excellent point, it will be very difficult to continue to do that into your 70s, let alone in your 80s. With all recent strikes and proposed tariffs, the inflation will be on the high side. Thank you for using at least 3%.

If you want to beat the 9 - 5 rat race in the corporate world, please invest asap...time is your friend, to be sure. If you have pension, that's a plus but rare. Honestly, we're all trading time for money...do you really want to work till you die? Are you taking that money to your grave & confident that money will be available to you in your next life? Hopefully, you make wise financial decisions..so you can enjoy the limited time on earth...good luck to all.

But why do you have them not reducing portfolio withdrawals when starting SS? The amount they are taking as income at that point jumps from about 80K to 120+K. Unless I misunderstood the xls. I am much more fearful of the pre 67 years where I would probably have a more active lifestyle and don't have extra $$ from SS to lean on.

Stupid question: how does 5% inflation kill your retirement? Doesn't inflation effect equities as well as food/gas/housing? I'm guessing the problem is actually the return-free-risk of a heavy bond portfolio. Warren Buffett says 10% short term bonds

Early retirees need money in pre tax, post tax and cash accounts. Cash gives you options. I would retire with no less than 4 years of cash for down markets. Make Congress your tax advisor. Look poor on paper. Look poor on your tax return. You want to qualify for Obama care subsidies. This inflation is gov't theft of your purchasing power. Its not going away. We brought it on ourselves. We keep voting for it. Plan accordingly. One million is not enough unless you homestead and who wants to live like that? Plan on at least 3 million invested and 300k in cash. That's an ok retirement with no debt in most locations. Its not living in luxury. Don't let anybody know you have money. They will despise you.

People without a decent pension should not spend more than 4% of the portfolio a year. That's only $3,333 a month gross without accounting for health care (until Medicare) and taxes. If you want to spend $4k a year + taxes + insurance, you are going to need at least a $2.25M portfolio at a 4%/year spending rate. Yes, there is social security that can replace a part of that number but who knows what it is going to be. I would not be comfortable with less than $1.75M with some of that money in a bridge brokerage account. On top of that, a retiree should have a couple of years of spending in an emergency fund (HYSA or treasury notes). There should be enough bonds in the portfolio for 5-7 years (at the very least). Yes, people have retired with a lot less money. But a working an extra 3 years can make a big difference for a high earner. It is not just cumulative interest but the reduced number of years until the SS and Medicare benefits. It is also going to put you within 18 months until 59.5 when you can start using your retirement accounts without the issues that Rule of 55 (in some companies) and 72t rigid distributions present. That time is going to go by quickly and can save you a lot of headache in your 70s or 80s. You are still going to have enough time to do Roth conversions before RMDs become a problem.

Thanks for the video. Too late for me to retire at 55. But if I had a million at 55 it may have been possible to retire at that age. Primarily due to low yearly expenses and low lifestyle expectations. Though I probably would have delayed to 60 due to longevity in my family. Delaying 5 years can make a big difference. Total expenses and how long one lives matter quite a bit.

Im not a high income earner but I plan to have 1 milly by age 55. I am part of that 5%. Lol. I will have it all in my Roth 401k and Roth IRA. I'm 48 and have a $740K net worth. OHH RAH. LOL 😂😂😂 Should have $2.5 Milly by my retirement age of 60. Only 12 more years

Lol..I always like that you end with "Tell me what you like. Tell me what you don't like." Lol. I don't like that you've kind of proved true what I've suspected for some time. For years, I've heard "1 million" is the golden amount to have saved. But I have been hearing that for some time and I started realizing that 1 million number is old. For my generation (I'm a so called "elder millennial" at 42) it's likely closer to 1.5 or 2 million should be the goal which feels daunting to say the least.

As a High Income Earner and planning to retire in 2025 at 54/55, the only thing I didn't see you didn't take into account or "bring to light" is that your spending will decrease as you get older. You'll spend less in your later years.

Love your videos and presentation style. Just a comment about this scenario: you are saying this person lived just fine on their 4095/month net for 12 years until age 67, they from that point forward they get a 3700/month bonus every month, indexed for life (social security). That's an extra 44k/year. So one would think, that extra amount, which you clearly don't need to live, would cover all most of the "what if" scenarios, what if you need a new roof, have a health expense, etc.

Unfortunately you sound like Suzi Orman. I notice FA expects people to work until 70 and save 3million

I disagree with $4100 not being enough to live in SF and the wider Bay area. The biggest x factor is housing and if you own vs rent and when you bought, which is true anywhere. If you're retiring today at 55 with $1M in the Bay, you probably bought a house in the late 90s or early 00s which was infinitely cheaper than it is now, especially in places like Oakland, Berkeley, and parts of the peninsula. Younger people looking to the future that's definitely out of reach.

Thank you 🎉 I really appreciate your info🙏😎

She forgot that America has 50 states that's cheaper than Expensive ass California and people also have spouses and partners

I think you hit the nail on the head for me. It's not "retirement". They've downshifted and no longer work for a company or organization, but they are still working. To me, retirement means you could lay around all day, every day, watching TV (or whatever) and not have to worry about income because they're living off of savings, investments or social security. Many people are working just less and earning enough to afford their lifestyle (which is great) but they're not retired.

Lets discuss why someone would even try to retire on 500k. Some employers havent given pay increases in years, 3+ years. That leaves the worker to have to manage paying expenses which have increased on low amounts. Then the worker starts doing calculations and feel, if they can pivot and pay their expenses on 30k take home pay for multiple years, and their 500k retirement acct will produce that same amount, then why work? Im sure many will say "go find a different job" and maybe that person has and have found that the next potential job would be back breaking and they could possibly end up on disability from working it. Some people do think these things through, even if it seems drastic to others.

Your calculations may require a rework. You wouldn’t have any RU-vid income from years 2003 - 2009. RU-vid didn’t start the Partnership Program (monetization) until 2007 and to get monetized back then was extremely difficult.

Thanks for the videos focused on retiring at 55 with 500,000. They were helpful. After watching the video's I'm wondering what would be the minimum someone would want to have saved if they wanted to retire at age 55? I understand that everyone's situation is unique but just using the average monthly expenses that retirees have in the United States, it would be great to have just a ballpark number that someone might want to have saved to be able to retire at age 55. I'm considering retiring at age 55 and have more that 500,000 and I've been trying to determine this for awhile now. A video like that might be helpful to a number of people.

Great video! Would you recommend selling the home to offset some of the loss and put those funds back in the portfolio? That might give you more years.😊

I love the way Robin thoughtfully responds to comments. Here are my experiences with LTC insurance. My parents paid for it for years, never collected a penny. They would have been better off saving and investing the premiums. I looked into LTC for me and my wife. Because of modest health issues they would offer her a policy, for me they wanted $100k for $400k of LTC coverage. Obviously not a good deal, insurance often amounts to trading very flexible funds that can grow for a very specific set of circumstances in which you may collect more. No thanks, I’d rather spend out of the nest egg if it comes to that.

You don't run out of money in retirement, you run out of time.

Thanks for the video. I don't think I could move out of the country even though it would likely be cheaper than living in NY state. I'd much rather grow old with my high school buddies.

Thank you for modeling this scenario!

In this example, in the beginning were you drawing money down from the Roth IRA or using the rule of 55/? Also can you do a video on long term care insurance and maybe alternatives to purchasing long term care insurance.

Very educational

Do you know of a financial calculator available to the public that we could use to play around with and run some numbers for our own retirement?

You’ve raised some provocative points, but there are significant flaws in your argument that oversimplify the issue. Saying the 401k 'sucks' disregards the substantial tax advantages and potential employer matches that make it one of the most effective retirement tools available. While it’s true that not everyone maximizes it, that’s a question of financial literacy, not a systemic failure. Your assertion that rollovers are a nightmare is also overstated. Most providers have made rollovers incredibly simple, with online tools that automate the process. Framing this as a major hurdle feels misleading. Suggesting that future tax rates will render 401ks ineffective is speculative at best. Most retirees are in lower tax brackets, and the introduction of Roth 401ks already addresses concerns about future taxes. A blanket dismissal of the 401k ignores the nuances of tax planning and a multi-bucket strategy. Yes, improvements are needed in terms of access and education, but to paint the entire system as flawed simply because it’s not a one-size-fits-all solution is reductive. A more constructive approach would be advocating for policy changes that improve accessibility, without discrediting a tool that’s worked for millions of Americans.

Great video. 500k it’s hard to believe it is considered a “scary” sum to retire with. I also think 1m is scary.

Thank you so much for this video. One of the best I've seen. I thought it was brilliant to model the returns after actual annual returns from a previous period using a 60/40 portfoIi, in the same sequence. And a clever use of chat gpt. I can't wait to try this using my 401k mix. I can see you put a lot of work into this showing so many scenarios. I preferred seeing it in google sheets over fancy software. Can not thank you enough. I hope everyone appreciates the valuable wisdom you share.

YES!! If you feel like doing another video on other ways that people obliterate their retirement, that would be much appreciated.

Auntie you are the bomb! As a 60 yr old retiree do I need a wealth manager or is it too late in the ballgame?

Rather than be overly concerned about rare, "one off" market decline events ( of which the market has tended to recover from in relatively short order historically ), it can be instructive to understand that a "stealth" phenomenon has been undermining the returns of "60/40" portfolio. This has been one of a slow decline in the interest rate "term structure" having been a result of an "anomaly" period known as the "interest rate mountain period"/IRM (1970 mid 2010s ), The "60/40" portfolio concept came about in the midst of this period where the level of interest rates was much higher. Many sources cite returns projection / retirement income withdrawals based on this higher level of rates (i e the "coupon" contribution towards the 60/40 total return ). However, since the mid 2010s, we have most likely entered into a period of a more "normalized" range of interest rates / coupon payments, say between low 2% to mid 3%, as measured by the widely used Vanguard Total Bond index ETF ( 2% - 3.5% as per the actual "dividend paid" yield and not the SEC indicated yield ) - this reflecting a rate range that similarly existed in the decades "pre IRM". So, over the last 20+ years, from an "income" standpoint, the dividend yield / coupon payout has declined by as much as 50%, from a high 5% rate, down into the range described. Therefore, on say, a "60%" allocation of BND (or VBMFX prior to BND ) as per a conventional "glide path" allocation formula, the income payout has been steadily dropping ( although the average retiree may not have noticed ). For a "dividends received" income strategy taken from a 40/60 allocated portfolio (40% stocks/60% bonds), at present and going forward, with the BND payout being in the "normalized range", it may only contribute 1.8% or less ( down from 3.6% in previous decades ) annually to the "total income" of the portfolio (and this NOT inflation adjusted). Holding a "40%" allocation typically within a "Total US Market Index / S&P500", has paid a dividend yield in the high 1%, leaving the portfolio to generate a 2% annual income. From 2003 - 2014, the same portfolio (VTSMX/VBMFX) generated a mid 3% dividend income. A 2% annual income MAY suit those who can "afford" and/or prefer a "dividends received" methodology for income. The widely cited "4% rule" / total income approach, which ultimately involves the "selling off" of shares, is "uncomfortable" for most, especially when one has to sell shares if the stock market is declining significantly - albeit temporarily. Yet it may be useful in order to produce a much needed higher level of income for a majority of retirees struggling with limited portfolio resources. One way to improve the 4% rule concept is to employ equity assets "outside of" conventional planning literature. A portfolio of small & large value stocks (via ETFs) and Berkshire Hathaway, and simple conditions based income withdrawal strategy, has sustained an inflation adjusted annual income withdrawal rate of 5% or greater in 97% of years over twenty rolling 20 year periods since 1986 ( with the income rate in those "3%" of years being adjusted to "4%" via the strategy ). The use of Berkshire Hathaway is key in that the predictability of the earnings streams and profits coming from the energy business, railroad, manufacturing service, retail and leasing businesses, and most importantly, the best assembly of insurers in the world ( which are massively overcapitalized ), are very durable and well capitalized. And it also holds a meaningful allocation of US Treasury securities within its holdings. Additionally, historical testing back to 1931 shows that small and large value stocks have had a very high success rate of being able to sustain annual inflation adjusted income withdrawals of 4 - 6%, accompanied by higher ending balances, over 72 rolling 20 year periods. Bottom line, if one is to go about extrapolating income withdrawal scenarios from a portfolio holding coupon bearing securities, it may be realistic to take into account a lower threshold / range of yields within the calculations.

The problem is a 40% bond portfolio... ... bonds are return-free risk

It's all about how much you want to spend. In fact, all of the "Can I retire with $__________?" videos could be thirty seconds long. It depends on what you need to spend.

I love your videos. Your focus on educating people on pitfalls is excellent.

If you have a medical emergency you will lose everything with only 500k. Health insurance doesn’t cover much

Is it possible to retire with 500k with if you have no debt and you have 100k emergency fund ?

Only 3 levels of class defined by net worth: working class, middle class, upper class. Working class is simply when living expenses exceed unearned income. Middle class phase is when unearned income exceeds living expenses. Wealthy class phase is when unearned income exceeds living expenses for multiple households. This allows us to help family and friends escape working class faster. ❤ Only point of working class is to get out of it. Everyone reaches middle class phase but typically not until retirement ages. You want your financial freedom as a young married couple to enjoy your children together ❤

Great video

I really appreciate the lack of sugar coating the numbers! Too many videos don't bother mentioning the effects of a down market or emergency spending. In the past couple years my spouse and I went through a burst pipe, washer/dryer and fridge replacement, automotive water pump replacement and the replacement of some of our old doors and windows. Hopefully we're through the rough patch, but it just goes to show that you need to ask yourself "what if"!

Very detailed explanation.

In 2008, my wife and I bought a second home for half the price it sold for in 2005 (short sale). In 2018, we sold it for twice what we paid. Both years were great for us!

Thank you!!!

Nice video I am no where at 500k mark and the retire early at 62 would be a disaster due to the cost of health insurance and still have a mortgage. The draw down would depleted the account pre tax and Roth account. Plus loose out on the wage calculation toward SS final sum. You explained very well.

Its crazy how many people don't have enough for retirement. Lucky me my early retirement will be at 60 years old. I have 12 years to go. I'm putting as much as i can into my Roth 401k and Roth IRA. Hopefully in 12 years i will have my $2 million target. 💪🏾💪🏾💪🏾💪🏾💪🏾🎉🎉🎉🎉❤❤

If you make a similar video for married couples I would like to hear your thoughts about someone 5 to 10 years older than their spouse retiring early so they can retire at the same time. The only person I know that retired at 56 did so because they wanted to retire as a couple and enjoy traveling and other activities before the older spouse got too old for it. Larger ACA subsidies for the younger spouse, at least 1.5 times more SS income when they both old enough to take it and lower tax rates due to being married can make a difference.

If someone is pulling almost 12% out of their retirement account every year, they deserve to run out of $$!! Totally agree with @notyet2345!

Thank you for this series: it's really helping me build retirement fluency. I'm convinced of your arguments about the $500,000 scenarios here and envious of anyone able to go to a less expensive country to live in. It would be great to hear your perspective about places where you can place savings/earnings if you do semi-retire in your late 50s and want to avoid taking actual withdrawals from your retirement account and Social Security. I have some knowledge of CDs and bond ladders, but there must be more out there. What are some of the best ways to optimize "bridge" accounts and the like? Also: is there ANY advantage to having a pre-tax retirement account instead of a Roth IRA? Avoiding taxes in retirement through withdrawing $ from a Roth IRA seems like a great way to avoid the "inevitable" increase in taxes.