I admire the financial independence of people, But you can live better if you work a little more. After watching this I think there are people out there, on the extreme, who plan to die early just to be able to retire early. To each their own but to me retirement isn't just about not having to work, it's about having the freedom to do whatever you might reasonably want, such as travel, buying things, enjoying life, etc. I don't think I could retire with less than $3m in income generating investments, maybe $2m at the very minimum. I plan to work until I'm at least 45.
Nobody knows anything, you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving
@@sherryie2 A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.
@@user-3456rtu I really need professional aid because I'm close to retirement and my portfolio is down over 15% just in the past month alone. It's been that way for the majority of 2022. Could you please suggest this coach to me?
@@c.t.u.o Do your due diligence and opt for one that has tactics to help your portfolio continue consistent and steady growth. "NICOLE DESIREE SIMON"" is accountable for the success of my portfolio, and I believe she has the qualifications and expertise to accomplish your objectives.
I realized that the secret to making a million is making better investment. I always tell myself you don't need that new car or that vacation just yet and that mindset helps me make more money investing.>>>
No she's not!... RU-vid is a public place; i can't drop her information here but You can just put her name on google and you will be directed to her website and drop her your message.>>>>>>>
@@johnsonajayi7846 Retiring at 62 permanently reduces your Social Security benefit by 30%. If you qualify for the max benefit of $2450, retiring early will cost you $735 a month. If you wait to retire at 65, you only lose 13.33%, so the monthly cost would be $327. I'm planning to work until age 65, barring any serious health issues.
@@zzanatos2001 : Good for you, I am taking mine early because I don't know when the Lord will call me home. We can all make our plans based on what is good for each one of us. My friend passed away at 60, that was a shocker to me. I have other investment to fall back on if I need any extra money, however, on 2k a month, that is good for me once the mortgage is paid off.
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
I worked until I was 67 and half , 38 years - time went by very fast because I saw my work as a entertaining challenge, and when I really got good at it , I kept on learning every day from the younger workers. All through my working year I kept a saying of my father in mind : one works to live , one does not live to work. I still get up every day and do my exercises, and then do something which I consider work for about 2 to 3 hours - I maintain two big pieces of land with all the good machinery I can personally handle. Workings with the land is good for my health, after two or three hours I take a cold shower and pressure test one of two or three hammocks I have strategically located with relation to wind and shade. I eat well. I don’t know if I’ll have time to spend the money I have , but I sure know that I’m not wasting my time. I drive a good old car that I don’t care if it gets scratched or dent in a parking lot - it has a great A/C . I try not to read too much news and stay away from internet histeria. That last one is a sure fire health benefit. Every day something needs maintenance or repair, I see that as a challenge. I try my most to use things and not have things use me. Five basic things drive me : gratitude, peace, tranquility, calm and clarity. Above all hope.
I wanted to leave all my saved money to my daughter and step-daughter. Times have changed, unfortunately. The world, egads. But the time I spent with them, educating, nurturing, supporting, coaching, paying for the best possible upbringing I could give them through my energy, and running the road for them have paid off. They are strong women now.
Very good advice; especially number 1 ! I know too many couples living a poor life, while their kids live a good life because their mom and dad are paying their way through life.
Kudos to you for going the extra mile to help your mentor. Sad he was depriving himself to save money for children that apparently were content to let him live that way.
My husband and I both have an elderly parent, but we aren’t figuring any inheritance into our retirement plan. That is because the money belongs to our parents, not to us. If they leave money to us that’s great but we really just want to make sure that they are able to live out their lives comfortably and able to afford any care they need in the future.
Great advice, as always. You handled the supporting of capable adult children very well. My Aunt took care of her disabled son until his passing. I had nothing but respect and admiration for her.
@@Honestandtruth007 401K ROTH is not taxed on withdrawal. 401K Non-ROTH is taxed as Ordinary income (so will vary based on your income for the year and what tax bracket that places you in, which varies by year).
9. My parents have adequate savings and low expenses, but when I spotted rotten wood trim at the base of their chimney, the carpenter recommended a minor roof/flashing repair by a roofing company when he found a soft spot under the shingles. My parents wanted to skip the roof repair to "save" money. Very illogical example of false economy as full on water damage would have cost thousands instead of the $700 repair. They were not convinced until they got the third opinion of a neighbor who said not repairing it would be a foolish idea. After it was completed much to my relief, I gave my parents cash to cover the repair, so as to not let money stop them from performing necessary repairs.
My dad recently told me that he couldn't afford to come and visit for the holidays because his old car was in need of repairs. I told him that he should trade it in and get something newer and more reliable, but when he tried to get financing his credit score was not good, and the bank wanted a whopping 12%. He has been so frugal that he hasn't had a bank loan or credit card debt in nearly 10 years (which caused his credit score to tank). I ended up loaning him the money to get a new car - but I'm not planning to ask him to pay it back. If he mentions anything about loan payments I'm going to say, "Please don't worry about it."
I put my kids through college, and they earn six-figure salaries now. I started with nothing, joined the military to get my college education, and worked two jobs for decades to pay off my mortgage early. I'm not saving money for them, but once I'm gone they can split the proceeds from my estate which is definitely going to be a windfall for them. I am not counting on any Social Security when I retire. Nobody should.
Thank you very much for your videos. I just retired this month at age 63, and find your videos enlightening. Things that I had never thought of were brought up, and made me think a little differently on how I might be doing things. I like how you don't talk real fast as it lets you think about what you are saying. My strategy for retiring was to retire from several jobs, and collect social security. I have never gotten into stocks or other investments, so basically we have we what we are getting from those. I did a lot of calculations prior to pushing the button, and I feel we made the right choice. The current job I was in was an extremely stressful one due to an unreasonable workload and harassment. I am relaxed now, and am enjoying watching your videos. Thanks again!
My children for high school graduation received luggage and I told them to get a clue. Now they are doing better than me. Codling is disabling not enabling.
I ended my working life as a bankruptcy paralegal. Retirement aged clients were not unusual. One couple stands out in my memory. Under duress, the husband was winding down his business installing sheet rock in commercial and residential structures. He could no longer hang sheet rock along side his crew and jobs were becoming more scarce due to the failing local economy; consequently, he could not afford to keep paying wages on par with the industry, or take a draw for himself. His wife was a high school secretary. Upon retiring she would receive some amount of retirement income from the school district, but nothing near her present salary. At home were five adult children. A son and spouse, a daughter and spouse, and an unmarried child. None of them was employed in any context. I asked her if the children contributed in some non monetary way to the household, say staying on top of the household laundry or having meals prepared when she and the husband came home from work. Negative. How the children spent their waking hours was an apparent mystery to her. I think this situation is more common than not.
Thanks for this informative video. I appreciate your clear and calm delivery. My mom was trapped in point number 1 by one of my siblings. Gratefully, one of my other siblings got her out of it. We need to be protective of our older family members.
Thanks for all of the great videos Jeff. Lots.of good content. Lots of people don't do any retirement planning at all and then wonder what went wrong. It just takes a little planning and being curious and learning from others who made mistakes.
You wouldn’t have mentioned about issues with continuing to support adult children if you hadn’t seen it a lot! Would love to see a video on it! You never disappoint! Linda
Linda Wilkinson, My brother-in-law is one of those who are currently being supported by his mother. 3 years ago at age 50, he felt his biological clock was running out, so he purposely got a woman pregnant and had a baby so he can be a father. He had no skill, never held any steady employment for over a year at a time. Now the baby is almost 3 and he has not been employed for 2 years, he and his kid are being supported by his 92-year-old mother who is on SS income. His mother was asked by the senior housing community to move out because their living arrangement violated the HOA policy. I am heartsick about this because it hurts my husband to see his mother like that. This brother-in-law is the baby of the family, I think his mother feels it's her responsibilty to take care of him, I guess.
Important points, especially #1. Several friends/family members have enabled adult children to the point that their own retirement is jeopardized. It leads to resentment of the very children you thought you were helping.
Thank you Geoffrey, I always enjoy your videos. I've been retired a few years (I retired early) and like to think I know exactly what I'm doing, but I saw myself on this list tonight. Um, it's the Scroogey thing. 😒
I am nowhere near retirement but I find your videos very informative. Especially yours. I watch a ton of them. Thank you for investing the time in making them. I am a student of 'money' and am always looking to learn as much as possible!
Getting ready to retire in February at 65 so been following your videos very closely. Don't think I will need to draw until 66 1/2. Still scary since i have worked all my life and really don't have the nest egg I would like to have...Thank You for all the great advise.
Mr Schmidt thank you very much you have helped in a way that will make my life better! Hope you and your family are blessed for all your hardworking and helpful guidance!
This was a great presentation. Clear, concise, not controversial, and something anyone could listen to and understand. My parents balanced these things so well.
Ha Ha. I've seen people spend more money on their pets then themselves. One lady spend almost $10,000 on her dog for cancer treatments, CT scans, chemotherapy, etc
12. Good one. My girlfriend has two dogs. One each left by the son and daughter when they moved out. One dog alone cost her $6K for various tests and treatments for some disease it has. Guess who’s not paying.
Funny I won't be in the "spendees" category as we are hitting our full retirement age after creating a robust savings amount from decades of savings and investments. It hard for us to splurge having the mindset of savings all these years.
Hi Mr Schmidt. I just wanted to let you know how much I enjoyed your posts and to thank you for taking the time to put them together. You have an excellent way of presenting information.
If you simply add up the age 62 social security payments vs the age 67 social security payments, the "break even" age may well be age 78.6. However, if you accumulate the payments forward with 4% interest, you "break even" for taking at 62 vs 67 at age 84. Choose a higher rate of return than 4% interest and the break even age will move out to a later age.
Good video. However you are missing the most important mistake. In The first few years of retirement, you must budget and track all your expenses. If you know what your expenses are for the year your way ahead of the game and not make any foolish money mistakes.
You are so right. In my first year of retirement I laid out a yearly budget, however, over the course of the year some expenses I had forgotten about came up. I expect this will happen again.
#1 is avoidable if you teach your kids about money, saving as a child for the future and stressing the importance of 401Ks. I told both kids, stay as long as you want to be self sufficient. They both moved out with good jobs and purchasing their homes at 24 and 27. #3 have a realistic plan, space out expensive travel and take a few road trips in between. #10 SS at 62 around 1st expensive travel Hawaii (money already saved 5 yrs early)
I feel as though I've invested a little too conservatively but then again considering our personal circumstances it was probably the perfect allocation for us. All along the way we've been financially secure while facing one adversity after another. We still got there but yikes, it's been rough.
I hear that from time to time., but markets are not always going up like this. Sometimes they hit back hard and people lose money. If you got there that is the important thing because so many don't.
@@HolySchmidt In our case, one that no one seems to ever write or talk about, I found it prudent to pick an asset allocation somewhere between a working couple and a retired one. As part of that, I also chose a very robust emergency fund of 2 years worth of our modest spending, including COBRA coverage. This served us extremely well over the years, providing security throughout many adversities. Even during the great recession our household had a 50 week unemployment stretch along with an emergency surgery and an 11 day hospital stay we never touched our savings, but they always stood at the ready and still do. Looking back I could have investing more aggressively but nothing was ever a certainty and working in the cyclical mortgage industry, even less so as there were frequent layoffs. These days it's all just letting time do all of the heavy lifting in putting the icing on the cake. Looking ahead, I had been worried about inflation, but I worried for nothing. Even the basic groceries we purchase are back to pre-pandemic levels and actually lower in some cases. Despite current shortages, the next new vehicle we're likely to purchase in about 5 years is still the same low list price and the 40 gallons of gasoline for our next upcoming vacation may be a little more but hardly of consequence as it's the only expense of the entire trip. Just as I had hoped, I can dodge inflation like I'm in The Matrix. Cheers!
@@tomj528 Sleeping at night is more important than making tons of money. My wife and I are different when it comes to investing but neither way is wrong. I'm riskier than she is and there were times I was nervous ... that was many years ago though. Just my opinion but at the end of the day as long as you have whatever you need to make you happy and comfortable is all that matters.
@@vinnyg2619 While I've worried over the years, I needn't have and I could have invested a bit more aggressively but this way we always had a firm financial footing to fall back on, which we've never needed thank goodness. We've got our retirement covered with almost 20 more years to FRA and we're continuing to save for retirement simply for the incredible tax savings alone. It's easy to look back and rethink but when I think back and look forward it's pretty hard to want to do anything differently.
@@tomj528 We started to "seriously" save at around 40 YO and in 20 years we have done well. Yes, the market has done extremely well during this time which has help us tremendously. Time is on your side! Just knowing that the market will go down is also on your side; back in 2007/2008 during the correction people were selling their investments and taking an actual loss vs a paper loss. Sounds like you got it covered which is great!
I never would have guessed about the kids...your number one...I am fortunate there...My kids would be able to care for me...But I have 4 friends that are in that rabbit hole...bad deal...Thanks for sharing...
I started day trading @58yrs old. First two years, returns were low, but no losses. This year (3rd) was kicking azz until my wife decided she no longer want to be married to me. If anything will impact your later years, divorce will definitely be it. I’m thankful I learned to make money when I had a bigger pot of it to play with.
Just watched one of your other videos , can’t find it to put a comment but wow that is a real eye opener about ev’s and how easy it is for them to be totaled and the insurance cost of them, I kinda figured they’re still very expensive to purchase right off the bat. Good points, thank you as always.
Advice #1 is so true. Breoke my heart to see neighbor son living in basement until 52. Mom and Dad died and he now has no skills, or money, to have a good life. Needed tough love.
Very nice video and I made mistake number 1 right out of the gate. My brother is seven years younger than I and should be on the public dole but I decided to buy a property, put a home on it, and then rent it to him hot, way below market, as a business. Well, guess how often he pays rent. Part of the contract was also to keep his hands off the property, so guess what happens. Rent would cover all the expenses, but when my CPA says he cannot write anything off if there's no income, great. Now I have a property manager, an additional expense because we're separated by an ocean, so enforcing the contract is laughable. He's an emotional 14 year old in a 57 year old body, big on talk but low on action, primarily as a result of the trauma of having an alcoholic and insecure father who beat his more self assured mother, and the chaos that ensued during the entire period of his childhood. I did too, but still had some stability in the first few years, and went on to have a rather successful career with responsible money management. I took one of my IRAs, cashed it in, and made the investment three years ago, basically becoming the welfare state for my brother. It could have been me, but boy the deceit, the appearance as you say of it turning into an entitlement, and the realization that there was never intent to play does it effect my health and wellbeing.
Took my SS at age 62. By doing so I was able to keep my retirement funds in my IRA fully invested and in position to take full advantage of the great 2009-2021 growth in the market which I would not have been able to do as effectively if I had to draw down my IRA over the last 12 years. So, for me taking SS early was actually a good investment because the market paid handsomely during those years for my IRA and I came out well ahead. I realize that my strategy would not work for everyone, I am just pointing out a different perspective on when to take SS.
Key word is "FIXED INCOME" Those two words alone will echo fear in the would-be spender. I am 7 years for collecting SS at 62. This is an indicator me to get my mortgage paid off, take a snapshot of my health and get some things "fixed" all the while maximizing my 401 plan.. The one you have to take into consideration are medical and taxes once you retire.
Many financial advisors talk strictly about living on the 4% from 401k investments but never factor in s.s. I'm counting on that s.s. as much as my 401 is that smart?
Absolutely enjoy all of your commentary, very educational for sure. Not that I’m counting…. 22 months, 28 days until My 62nd B-Day, I have been a believer in filing for S.S. @ 62 since turning 50. According to all the data I have read, the person I’m related to by marriage and I are way ahead in savings plus a pension, which is a so rare these days. My motto to her is “Spend It All”. I thought that was a selfish comment for the longest time, Not any more. Enjoy the day…
Great Great job Sir in Helping the Helpless and the less Fortunate...👍👍❤️🌎 Love is Helping and Sharing I'm so glad I found your Channel...😂 It's Full of Great information
Thank you again for this very good advice. I retired in March 2019. I planned for it, and now things are going as planned. My wife and I did most things right.
My mom worked all her life and she did a lot of charity work helping new immigrants in the church. So we gave them housing, food, clothing, etc. till they got on their feet. When she went to retire someone else was working with her social security number and she was denied her benefits. She died without receiving her Social Security. I recommend take your money while you can - tomorrow is not promised to anyone.
My town is small. We had an elderly man Drive up and down the Main Street all day long. Then We had the February 14th freeze here in Texas. He died from the cold. He had $150,000 in his house in cash
My mom definitely got the spendees. It was so scary! Now, she's close to 80, is disabled, and is having to work again, doing work she can't physically do well. I've tried to help, but she won't take the help I can give, but wants control over my life and finances or "I'm not a good daughter." So I stay away and send her disposable masks through Amazon. When I'm there visiting, I do a lot of cooking in advance and freezing individual meals. But I'm not there often, living several States away.
It's absolutely crucial to be caucious about giving money to your kids who are old enough to work hard for themselves!! I hate to say it, but let the kids fall on the ground.....they will get up by themselves. If they don't fall you,, you will be paying for them forever. I completely agree with Mr Schmitd, he is a genius !!!!!!!
I did 50-40-10 stocks, bonds, cash. Auto deposit from cash (money market) to checking for expenses every month, replenish cash annually either from stocks if they are up, or from bonds if stocks are down.
@@mikespangler98 I like it! I am afraid I live more on the edge, lol. probably wrong, but hoping it is a balance of catching up vs risk. 70-20-10 here. Not retired yet, but soooooon, god willing.
I love how this works sometimes. I'm talking about perfect timing for information that I will need or need currently. I'll be 60 in March. I've been studying social security for a few years. While I'm collecting social security disability now, at 62 I should have enough credits to possibly almost double my income since ssdi is so low. My other option which I think I'll use is my x husband I was married to for 17 years. Overall he had the most consistent higher I. One (but I had the better jobs )with professionals in the medical fieldpaid holidays and paid vacations, sick/flex days. I'll look forward to gathering All the information I can this year. The book club is perfect, too. You'd think covid would have been a dreamy book fest for me too. But I can't concentrate. So this will give me some badly needed
You’re absolutely right. Against everyone’s advice I became the fourth husband to someone I met on the used spouse market. Needless to say I’m single again and recently retired. Never been more comfortable mentally and financially in my life. My father taught me thrift, saving, spending control and investing at an early age and it served me well all my life.
I quit working in my 50's. Our house was paid off, we had no debt, AND I hated my job. It was making me physically sick. I don't regret it. I started taking SS at 62 because it wasn't that much more if I waited. I had many years of adding 0 to my account. I'm now 63 and haven't spent a dime of my SS. Should I pay it back and start collecting at 65? or it might be 66 for me, I can't remember. Any ideas?
I retired at the end of last year but have not filed for SS. It is a good thing I didn’t because my wife and I aren’t on the same page so I am going back to work.
Thank you. Good SANE advice. Beware of internet scammers. I.E. computer service groups that promise to clean your computer and speedup functioning! These groups are generally foreign but not always. Lost 10K. watch out for 'TEAM VIEWER" program to be installed on your pc. Took me months to remedy this and restructure my financial life for what it's worth!
Guilty of #1. But, we have no children. Our big money years we were doing significantly better than all our siblings. We “shared the wealth” so to speak. But, when things became leaner, we had to cut the purse strings. It damaged relationships. We were called “stingy”. Wish we hadn’t have done that now. But, we can’t go back in time.
Wipe such people out of your life. You'll sleep better and live longer without the stress of the "takers." Also, ask yourself why you were sharing the wealth all along, Was it because they were truly needy, or was it to make yourself feel better? Helping someone in need is nice, but if that person is able bodied and simply taking advantage of your generosity then the simplest solution is to change your own behavior because you can't change someone else.
Good info! I'm gonna roll the dice & hope for the best by keeping most of my $ in stocks up until retirement. Either gonna work out great or I'll have to tighten my belt until it comes back!🤷♂️
Hi that just means that the first year in retirement your expenses and income will be different, so take the year to understand (calibrate) your spending and proceed with caution and don’t spend too much even if you want to.
Great info as always I delayed taking Social Security because my pension has a Social Security off set. I am waiting to my government stated retirement age of 66 and 4 months, which at that point my employer will reduce pension by the off set. I hope I am doing the right thing.
Hello, Geoff. Love your videos! Please keeps them coming. Can you do a video or refer me to an article highlighting the pros & cons of consolidating my 401K accounts? Thanks!
