For those that don't get it, it is not about having too much money. Drew is talking about saving money and not enjoying life or retiring at a suitable age to enjoy the money saved.
@@JBoy340a 1. lots of people don't have kids... 2. studies have shown that giving money to kids is a bad idea... hurts their motivation and creativity.
@@reneeann5340 Well my siblings and I all got money when my folks died… we were already adults and no it didn’t affect our careers which were already established…. My parents gift to me will be passed down to my kids as I invested the money I received. And it will have grown over 35-45 years by the time I kick off.
Yes go see a financial planner. My wife and I used online calculators not thinking these websites want you to over-save. I am retired at 56! I can't believe this summertime beauty.
We retired over the last 4 years. I don’t find averages to be very useful. The ideas on spending 80% or so make slightly more sense, but ultimately it is a budget that gets you where you need to be. If you plan ahead, expenses in retirement can be much different. For instance we paid off our mortgage at the time of retirement. Our other expenses also mostly decreased. We are living a nice lifestyle on 60%, and I haven’t even started SS yet. So when you get close try to develop a rational budget. My suggestion is to create a base budget of all necessary expenses, and then add on discretionary spending as your income stream or portfolio allows.
I'd be retiring or working less in 8 years, and considering this financial recession, Im deciding to begin taking up skilled trades. I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, learn around $130K per year but nothing to show for it yet.
On your own you could seek out several of these financial advisors, make sure the one you settle on is a fiduciary and not a fake. Know what you're getting out of it and see if your targets can be met.
Another thing that might escape people because they just don’t think about it is if you’re maxing out your retirement savings then that’s $30k that you’re not going to have coming out of your money in retirement. My house is paid off so for the last 15 years my retirement savings are my biggest expense.
That's so true, I never really thought about that Haha. I just did the math and between all my accounts, retirement and brokerage I save roughly 40k a year. I live on 20k LOL
I retired in 2021 thinking 300 grand would be enough. Each withdrawal has made it harder for my nest-egg to recover through compounding returns. If i had started contributing to my IRA earlier, I could have saved more for retirement
I'm almost ready to retire, and having a financial advisor has been incredibly beneficial. Since I started investing later in life, I couldn't rely solely on compound interest from index funds. I've managed to earn more than some long-term investors. I'll be retiring with at least $5 million.
Are you doing a Roth IRA or regular IRA also? You can do a SEP IRA and put $7,000 in an individual IRA/Roth (or double that if you include your wife). Income limits apply, Roth limit is over $200k/yr though.
Saving too much for retirement would be a welcome problem. I am assuming I will spend in retirement what I spend now while working because I expect to travel more and have more recreational pursuits, and eventually more healthcare costs. Also, I am assuming a 3% increase in expenses each year due to inflation. That could be too conservative though. I have over a million saved but honestly don't think that is enough with what I see coming down the road. The social safety net won't be there in the future like it is today. We are broke as a nation.
How do you calculate savings rate if your employer puts 15 percent away for you each year as part of the company's ESOP program? Count it as part of the 15 to 20 percent you need to save each year or don't include it and put the 15 to 20 percent away yourself?
Nearly every video about retirement that I see fails to consistently distinguish between gross income and net income. You are tossing numbers out and talking about different percentages that the retiree might or might not need. These “rules” are useless unless you distinguish between gross and net. Every statement that you make in this context - EVERY ONE OF THEM - needs to differentiate between gross and net income, otherwise you are disseminating ambiguous and therefore meaningless information.
I agree that more distinguishment needs to be made between gross and net incomes.. but man, that’s so vastly different for everybody I guess it’s hard to show? 🤷♂️
