Thanks to all of the readers who have commented. Please also see my video on the BEST AGE to File for Social Security here -> ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-CoPkYQ0smj0.html
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!
That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Personally, I would say have a mentor. Not sure where you will get an experience one, but if your knowledge of the market is limited, it seems like a good bet.
The issue is this! Most often, those with little to no experience in the stock market attempt to buy on their own. It previously occurred to me, but I learned from it and contacted "Camille Alicia Garcia " a finance expert with offices in the US, and everything changed. I earned $370k so far in the first quarter of this year.
*@kristenpierce8661* That's amazing! I want to talk to her if she is this talented and possesses A-list skills. I continue to lose 20% of the time even when I clone transactions using a MAM account as well. Where do I find her contact details?
Retirement becomes truly fulfilling when you possess two essential elements: simple financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement. My question now is how to get a good financial advisor that I can invest with and have good returns before retirement age .
A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $110k and in the first 2 months , my portfolio was reading $294,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
This. I am 53. The most my dad ever made was $45k per year. My parents paid for college (state school) and gave me $15k after graduation to get going. My parents were always savers and I had saved $1 million by age 42. Always save all you can into your 401k. Start right away and build it up. The more you save early the better off you will be later in life. Automate your savings as well.
I want to repeat what I wrote above that will put numbers to this idea. I'm on track for having MORE than the $700k @60 and grew up in poverty. I wouldn't be so sure those are trust fund babies. They may be folks who didn't buy a new car every 3 years, and put money into their accounts starting at age 18 or maybe 22, or 25 for example. (For me, largely when I was 26 and out of the Army.) I'm 55 as of this writing and almost to the 700k figure. I live small, didn't grow up with parents who bought cars, paid for college, etc. I did all of that myself by earning scholarships and getting a couple of engineering degrees courtesy of my time in the Army. I traded 4 years of service for two degrees. I've advised my kids to do the same. Get the max 401(k) match from your employer. Don't immediately go out and buy a 30k + new car after college graduation, etc. Pay yourself first. If one invests say $12k/year for the first 12 years they are working, say from their early to mid 20s until they are in the mid to late 30s, and then never puts another dime in the account, using the past 40 years of the S&P500, they would be looking at having $3 million after 40 years as the earnings on the money invested the first 12 years would far outstrip any additional $1k/month contributions. Start at $500/month the first year and increase that by 3% each year, I.E. $500/month then $515/month, then $530.45/month and then $546.36 and so on, and do that for 20 years and then never add another dime, and you are still looking at over $2 million at the end. How much does that $500 to $1000/month of "treat yourself" cost when it comes to your retirement? Not saying one has to totally deprive oneself. Instead saying that if you pay yourself first, you can have both a nice retirement and enjoy the fruits of your labors. It's all about balance.
and the other thing I advised is when they get a raise, say they got a 3% raise at work. Bump up your 401(k) contribution by 1/3rd of your raise. I.E. 3% raise means add another 1% to the portion of your salary contributed to the 401(k) If you didn't have it before, you won't miss it going into your retirement.
$700,000 balance is NOT a trust fund baby like you say. It could be that someone who got a job in their early 20s and started saving 15% in their 401k and never touched it. They saved 15% when they made $13 an hour out of colelge and continued to save 15% of their money as their career and income grew over the next 35 years.
PS, I inherited $1000, worked hard, saved (all on my own, no employer match), AND paid years of child support, and my net worth is 15x my average earnings over the last 10 years (self-employed). And I had fun! Key points: NO credit card debt; and don't get sucked into the big car big house syndrome. An economy sized Toyota is a better car than what Mercedes-Benz made 35 years ago. Do what you love to do (unless that means spending money), learn how to cook like a chef, and stay involved with people!
@@BillyT531 you don't need an employer match to reach $700,000 if you've been saving and investing 15% of your salary for 35 years. If you are getting an employer match I would actually expect your retirement accounts to be over $1 million if you got the average annual stock market returns of 10%.
@mbrwn25 true. I started $4.30/hr and still with the same employer in the 6-figures over 39 years. I DO NOT have a ‘great’ match for 401k, it’s ok. I own a modest home - no house payments. I own my cars straight-out. I have no credit card debt. It was tough to get here, but I did it.
I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made. Great video! Thanks for sharing! Very inspiring! I love this.
I understand that tomorrow isn't promised to anyone, but investing today is hard for me now because I have no idea of how and where to invest in. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.?
@@harrisonmichael5047 I invest across the top markets but not by myself though. I follow the guidelines of *PRISCILLA DIANE AIVAZIAN* . you might have heard of her. I can correctly say she's worth her salt as an investment advisor as her diversification skills is top-notch, I say this because I see that in her results as my portfolio grows by averages of 20 to 3O% every month, unlike I can say for my IRA which has just been trudging along. my portfolio just mirrors what she places and not just on some particular industries of my choosing. she gave me that financial freedom I needed
@@georgerobinson2021 That’s great, your investment advisor must be really good, I have seen testimonies of people using the help of investment advisors in making them more financially stable. Do you mind sharing more info on this person?
@@harrisonmichael5047 look her up on the internet with her name. she's quite popular for her services as she was recently featured on CNN. She can work with anyone irrespective of where you're located
I'm 65 and retired. My goal was to have enough money saved for retirement, but I knew that I couldn't trust my investment skills alone. That's when my daughter told me about Retirement Portfolio. She said she's worked with them before and they're great. I signed up and am so glad that I did! What a great company. They introduced me to the best investments in my area and made sure that I had enough
I've been investing with TERESA JENSEN WHITE's guidance for a few years and I couldn't be happier. Her company has given me the best ROI while preserving my capital and has the most thorough investment guidance out there. It also never burns my money with speculation or poor philosophies of risk management.
I was screaming at the screen, seems like I was not alone. I started my 401K when I was 30, I made 2K a month at the time, and had absolutely nothing in the bank. My wife was a stay at home Mom, granted we don't live in a State like California, cost of living is a lot less here. I'm now almost 62 and have just over 1.4 million in my 401K. We didn't buy new cars, don't have a huge house, did not buy a lot of toys. We also paid off both our kids student loans, although since they were careful how much they borrowed they did not rack up a lot of debts. Its all about planning and being careful with your money.
@@jessicalt4121 He lived well within his means ..."Didn't buy new cars, don't have a huge house, did not buy a lot of toys". We don't have the impressive balance he has, but we did the same thing and I was able to retire in my 50's with no debt. It can be done by being careful with money and planning. (We had good health and good insurance and that does help, too.)
Good job Kevin! I’m on track for the same savings you quoted. I’m 55 401k is at 1.1m. I’m looking to retire 4 yrs unless market craps out. As you I didn’t start saving until I was 32, first @ 3%, then every time I got a raise I increased percentage up to 20% for a number of yrs. raised a family, own a house, almost paid off now, and now buying rental properties. Lived within our means, and paid ourselves first. Taking advantage of company matches. Always drove good used cars, vacations yes, but within a budget, average house we fixed up with lots of sweat equity. My 3 kids are following with good jobs, hard work ethic and investing. They will eclipse the wife and I.
Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million.
This is true. I'm in my mid 50's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
@@loud9090 It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $21k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
@@322dawgg I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same.
@@user-3456rtu I definitely share your sentiment about these firms. When I was starting out, I checked out a couple of freelance investors online, so you could do the same. I personally work with “NICOLE DESIREE SIMON”, and she's really good.
@@322dawgg I might have heard this name somewhere, but can't really recall. I'll be following her up. Thank you. Do you know if she manages family fund too?
My wife and I have saved our asses off for nearly 40 years. I'm 62 and my wife is 59. We currently have 1.65 million in our 401ks plus I'll receive a pension. Neither of us were extremely high earners, however we were very disciplined and weren't afraid of equities.
Well done. Like you said it takes dedicated effort over decades. It's amazing how it all seems to blossom once you get to the point where the growth is more than you can put in each year!
@@stuartclubb4302 - very true - it takes a while but if you start at 29 like I did then it seems to blossom around 60... makes me look smarter than I actually am !
I think an important consideration is that in 1980 the DJIA was at 1000, now it’s approximately 27,000. So if you diligently invested these last 40 years you had the mother of all tailwinds to push you along. Are the next 40 years going to be as kind to this generation? It’s just something I think about when there’s a discussion about long term saving- past vs. future.
The decision to invest is an acknowledgement that it comes with certain risks. Not all investments will do well and some may lose money. However, without risk, there would be no opportunity to potentially earn the higher returns that can help you grow your wealth.
Remember, diversification is an approach to help manage investment risk. It does not eliminate the risk of loss if security prices decline. Because investing can be complicated, consider working with a financial professional to help guide you on your wealth-building journey.
Tamara Diane Hagan, she is an expert who does the heavy lifting for me, she makes research on stocks, and adds my portfolio with stocks for monthly and yearly earnings.
Schmidt would you consider doing a video with ideas of financial options I can explore as the economy is heading towards severe recession.I'm retired and under pressure to grow my reserve of $370k.
The one effective technique I use is staying in touch with a financial-coach for guidance, I was able to outperform the market during this inflation and raise a profit of roughly $200k.
Out of curiosity I looked her-up and I can see she;s has worked with top notch companies like M&T--SECURITIES , I have an account with them. Serendipity!
This recommendation is coming at the right time because i am literally grasping for straws atm! I verified her online and scheduled a phone call with her.
Great video,Jeff. I'm 61 and have about 12x in retirement savings. I came from nothing, worked hard, lived modestly, made some good investments, and that is how I saved enough for retirement. No trust funds here. I became a millionaire by doing what most Americans don't. Living UNDER my means. I'm still working because unfortunately I have to pay for my own family health insurance plan. I look forward to more videos!
Congrats. I did the same. Left home at 16 with $100. The main thing is to learn to love life without an addiction to spending on worthless crap. Best thing I did was get a spreadsheet of where the money went. Then you tend to eliminate the crap that brings no joy and focus on saving while enjoying your life. Being retired with zero financial concern is a great place to be.
@@user-od9iz9cv1w I hear you. There are also many other ways you can invest your money and earn more profit. That way you are able to live the life you want. Travelling and enjoying life without worrying about retirement. One of such ways made me a millionaire in my early thirties. Now I’m in my late forties and already retired.
YES! I’m driving the same vehicle for 30 years. That’s one big savings that MOST won’t do. Also, like you said, don’t try to keep up with the Jones’ and your savings will show it.
@@rickj1983 Amen to that! This is what the young kids call...a humble brag. Enjoy your retirement dude and pray cancer doesn't destroy your life and those around you.
Interesting video; I wish I had more time for experimentation, but I'll be 50 by September, and I'm looking for ideas and suggestions on what investments to acquire to set myself up for retirement, especially with the looming inflation; my goal is to have at least $2 million by the age of 65.
You should have commenced a long time ago, and given that you may have less time to closely manage your portfolio to meet your financial objective, I feel it is preferable that you get guidance from a financial specialist to assist you in developing a practical and feasible strategy.
Yes, it has its advantages; I've been more active and involved over the last 8months, and I've generated around $680K in net income. Having a coach has significantly strengthened my credibility and perspective on the market.
When you build wealth, you may be in a better position to pursue the lifestyle you want. Your life can become one of possibilities rather than one of limitations.
The decision to invest is an acknowledgement that it comes with certain risks. Not all investments will do well and some may lose money. However, without risk, there would be no opportunity to potentially earn the higher returns that can help you grow your wealth.
This is true! My situation is that I don’t have a lot of stuff that I want to impress people with. I just love to travel and explore and have gotten into debt because of it. I figure travel and experience life before I am too old to do these things. I have always worked so I’m not lazy. Anyways I’m trying to save now and have a 401K plus an IRA. Valued now at around $6,000. Btw I’m 60yrs old so this video hit home
@@davidhollis8458 while I think retirement is the saddest thing to an employee but to me it should be another open door to a world of investment and entrepreneural success. Before I got retired i had various thoughts on what to do and how to prepare for retirement and then I got into research. from what I learnt, savings is great but nothing greater than investments as this brings in fruit for your savings. The problem then stems from finding the right investments, this shouldn't be hard as the internet has provided lots of investment opportunities. I have discovered investment opportunities with a good return that'll help prepare you for retirement. Now I'm practically living the life I dreamed of because I took a step and you too can be a boss of your own after retirement. I'm always available to help.
Never made big money, and had several stints of unemployment over the years. Wife only worked part-time. Raised 2 daughters and helped put them thru college. Paid off our 30 year mortgage in 10 years. Always bought new or newer cars but kept them. Just turned 60 and have a net worth over $800k. Live below your means and it's not that tough to save.
Living below your means gets increasingly difficult as your income gets lower. There seems to be a minimum of income that it takes to keep yourself properly housed and fed.
@@alansach8437 Net worth is savings and everything else that you own minus debt. Yes, the video is about average/median savings, but my point was that anyone can do it if I can. It just takes a little self-discipline, which most people don't have. Unless you've been exceedingly unemployed, or underemployed, or have a serious medical condition that's drained your savings there's no reason to not save. BTW, not only that I just retired at 62, this original comment was almost 2 years ago.
Thanks for the information. I'm 60 and have over $850,000 in Retirement as of today and not a trust fund kid, but worked hard, no debt, and saved only on a $60K house income... We live simply but have traveled the world. “If you will live like no one else, later you can live like no one else.”
while I think retirement is the saddest thing to an employee but to me it should be another open door to a world of investment and entrepreneural success. Before I got retired i had various thoughts on what to do and how to prepare for retirement and then I got into research. from what I learnt, savings is great but nothing greater than investments as this brings in fruit for your savings. The problem then stems from finding the right investments, this shouldn't be hard as the internet has provided lots of investment opportunities. I have discovered investment opportunities with a good return that'll help prepare you for retirement. Now I'm practically living the life I dreamed of because I took a step and you too can be a boss of your own after retirement. I'm always available to help.
My husband and I have accomplished the same thing!!! We live on a shoe string. Have a house built in 1964. Buy used cars only when one of the cars we have has reached just shy of 300K miles on it. My husband also has stage 4 kidney cancer and we pay a bunch of money every month keeping him on treatments. But we watch every penny, work hard.
@@kgm2000 I'm living on $1/meal per person, $5/day per person in 2021! Drive a beat up old car (no loan), no debt, doing just fine. Had I known this, I could've retired at 30.
That "trust fund" statement was insulting and completely inaccurate for most of us 60+ years old. The vast majority of millionaires in this country did NOT inherit it.
Although I don’t find it insulting, i will say that I went to a low cost college and lived in a cheap apartment. i think the truth is unfortunately that most people don’t force themselves to ‘suffer’ by max’ing out their 401K contribution limit. I’ve not been highly paid but have worked for a company that matches and was told day one to do this as it is free money. I thought was what everybody did but now know someone my age who hasn’t and it’s regrettable.
Congratulations to all who had discipline to save and did save. I see many here who have done a wonderful job of planning and I wish you all the best in your retirement years. I did not do as well. About $60,000 saved, $180,000 mortgage. Will work the remaining years of my life. I don’t enjoy work. 2008 set me back and then cancer in 2010 hurt my savings I had. In addition, poor investment choices. Not much I can do about it now, hope youngsters learn from mistakes I have made. Best of luck to all!
wow, so much to unpack, I saved 3.1 million by 60 by setting aside 8% of my salary from the age of 23 and investing it in a mix of stocks and bonds, weighted towards stocks. I had a typical salary for an engineer, probably a bit below normal. I raised 2 kids and gave them down payments so they could buy a home. I never drove a fancy car. I never went on expensive vacations, or flew even business class. I ate normal simple meals, and enjoyed life, now I am set for a comfortable retirement.
Eight years ago I thought I'd have to work until I was 70. Since then I've been saving/investing all of my spare income. Now I should be able to retire in 7 years at age 62.
It doesn't take long to get pointed in the right direction if people are willing to think about money in a healthy way. Too long have we been given mixed messages about money (it can't buy love, root of all evil, etc). Congratulations and keep going!
Started my 401k at 23, invested 100% stock. A side S&P fund too. I’m not management so I volunteered for OT. Drove used vehicles, stay at home wife, sensible vacations and spending. Paid cash for my 2 kids college, owe $134k on a $450k home. No other debt. I’m 56 and have $1,392,000 in savings. Enjoy life but have self control.
For me, retirement is all about having proper financial management and backup to enjoy a life of freedom. I'm glad I took my finances and found ways to multiply my earnings early enough.
@@emmanuelameyer3344 As I stated, I've been putting aside money into stocks and fx with the assistance of a senior-trade analyst, Levi Clemans, who is under a licensed broker. He has been the backbone of my trades. Making a substantial amount of profit, I just renew my investment. Look him up Leviclemans,info on his webpage...
@@alasdairruthven3106 This year I'm starting to pay more attention to my finances you know, like invest more and save and living within my means. Always thought about the stock market and I think it's time to give it a shot. Thank your for the tip.
This guy is a breath of fresh air. People like Dave Ramsey and Susie Ormond pretend they're talking to everyone, but the stark reality is they're actually only talking to the top 2% of savers. It's impossible to personally relate to their unrealistic nonsense. I've been retired for about a year and could be considered in the middle category plus my Social Security. I feel like I have enough. I don't need a million dollars to be comfortable.
could you be comfortable if you did not have social security? I am just asking as someone in their 20s who knows social security benefits are set to be depleted by 2035.. I listen to dave ramsey because I need my own safety net. Going to check out susie ormond now.
@@joe-dl4js No, I wouldn't be able to retire if I didn't have Social Security. I paid into the system almost 45 years. I earned it. We all have to do what's best for us. We are at different stages of our lives with a huge age difference. If I was your age with a steady good paying job, I would try to get the that top 2% too. It's not reality for rest of the 98% though. I hope for your sake, you get there Joe.
@@joe-dl4js Joe, IMHO Dave Ramsay is good for advice on reducing your debt, but NOT for investing. For that, look to John Bogle’s index fund investing advice
@@godblessyou7376 Dave has good investment advice. Buy mutual funds that beat the S&P 500 average. He can't name funds because he is not licensed to give financial advice. We've followed Dave for years and have the wealth on a middle class to live like no one else😎
to each his own, my wife and i have saved and have 10x our current salary, looking forward to traveling and generously sharing our wealth with family and our favorite organizations
I have almost $600k in my traditional IRA and certainly wasn't a Trustifarian. I'm 57 y.o. and plan on saving even more. I graduated college with $55, a 1974 AMC Matador, a suit , a desk, a mattress, an Apple IIe computer, a surfboard, but no college debt. Paid my way through college. No magic involved.
I hope you had a bathing suit for surfing - would look funny wearing your suit. I was similar to you but did have $4,000 in college loans in 1980 - seems so little compared to what people have now. I paid it off in two years. But I did have a 1974 Mercury Capri.
I agree with you. I am 61 have > $1 million. No trust fund. Simply worked my ass off and saved judiciously from the time I was 25. Last 15 years I have been rolling 15% into retirement savings.
I thought I was going to work until I was 70. They gave me the boot at 65. I only had about $70K in my IRA, as I was constantly raiding it for various expenses. It's now gone, and I'm on SSA only, living in poverty. Don't do what I did, save more and try to be ready long before the time comes to retire. You might not make it till the time you planned on.
I can heat or cool my house as I wish. I have safe drinkable water from the tap. I can have water either hot or cold. I have a flushable toilet in my house. I can wash and dry my clothes in my house. I can cook in my house. I have refrigerator that will keep food fresh in my house. I can flip a switch and have lights on. I can connect to global information using my home router. I can go to the supermarket and get fresh food from all over the globe; if an apple is not perfectly round I can put it back and get another. I can get meat that is inspected and parasite free. Any time of day I can get in my car and drive anywhere I want; with air conditioning or heat, and listening to music. In fact, the car is so well made that even if I have an accident, I actually will probably survive. I live like a f****ing king.
I am in the 700K at 61yrs. it was being taught from my parents to save for my future and retirement. It came from being at work and earning a living daily. You don't have to inherit money or land to have $$$. My parents taught me early on to save money for my retirement. Thank goodness I listen to them. I am looking at retiring next year. By the way, my son at age 40 has 400K. Its all about what you want in life.
Wish my parents taught me this, but the lived paycheck to paycheck. probably why i got kicked out of the house for dating someone outside their religion 3 weeks after turning 18
It all depends upon your appetite. An apartment with a deep pile carpet and a couple of paintings from sears. A big water bed that you buy with the bread you have saved for a couple of years. We never knew we could want more that that out of life. You live in a very nice style but it's always the same at the end. Disillusionment .
That's great Tom. It sounds like you have a defined benefit plan. Those are very rare these days, but for those who have them it makes a world of difference.
@@wakeup6910 Hell I know a guy that retired as a patrolman with 23 years in and gets a PERS retirement check for $5500 every month plus SS at $1700 a month. State of Oregon PERS actually pays many over 50K a month, I'll sound that out for you one fifth thousand thousand a month! think democrats!
I'm 48 years old; I plan on retiring at 60. Based on every retirement calculator I can find, I am on par to be able to retire at 60. Fortunately, I had a mother, who taught me the importance of saving money. What I would tell young people today is to start a Roth IRA, as soon as possible. Get that going today! Youngsters better save money!
I'm the same age and also plan to get out at 60. I have a pension which skews the numbers some, but I max out a Roth and a traditional 401k the last 3 years and I'm trying to carry that to retirement. At about 350k in there now I hope to get to at least 800k. With zero debt I should be fine.
youngsters will vote for politicians which will blame you, the rich....and take a large portion of it for those who didn't save for themselves, but voted for said politician
See your videos take away my horrible, hidden anxiety about where I am financially at my age because I realize I’m not as bad as I thought. You are so positive about it that it inspires me to save more aggressively! Thank you!
Good basic info, but flawed assessment: having saved $700k by age 60 absolutely does not require a trust fund. That amount is relatively certain (maybe even a bit low?) for anyone of average income who has chosen to consistently save within their tax-deferred retirement account at or close to their max allowed amount. The lower the income, the earlier one needs to begin saving.
@@spankynater4242 there are too many “subtle” roadblocks to independence IMO. They come from parents, educators, politicians, and one’s social circle. Lots of reasons why a person can’t succeed, so why even try? It bites hardest on the people in most need of advancement. Hope you are having a nice holiday season, take care
Calling those of us that have saved trust fund babies is a disservice and joke. I have over $2M in investments and am 60. I went to school, lived below my means, saved, and invested. I was not given a trust fund. Currently at 60 our combined income is $170k per year and we put $96k per year into 401 and ROTH accounts. It can be done if you get an education and start saving early.
Lately I’ve been considering buying dividend stocks for retirement, I’ve set asides $350k to invest but along the line, I get cold feet, maybe because I’m a rookie and have no idea what I’m doing, please I could really use some guidelines.
@@Michael-gd8xj I agree with this, investment coaching sounds like a great idea, thought about it before but never knew how to go about it. Have you used a coach? What is the experience like?
@@Michael-gd8xj That’s impressive! How could someone go about getting investment guidance from a coach like that. Would you mind sharing your coach’s info?
The problem is I wasn’t told by anybody during working years that I should this I should that for retirement now thanks to You Tube as I’m 60 now giving me this valuable information
I am 61 with about $900K spread out in a 401K and IRA. Divorce and unemployment was devastating but I could be in much worse situation. Seems I am well above the average but need to keep saving/working
I didn't start saving for my retirement till my child support payments ended at 40. I have fully funded my retirement. I am not a trust fund baby. You make a plan and stick to it. I'm 61 and will be able to retire at 65. Its all about what decisions you make in life.
Retired with a 7 figure portfolio and Receiving about $53k in dividends. I have been in the Stock market about 20 years. Am I worried? Am I selling? Absolutely not. I have purchased growth stocks too a little at a time over the past few weeks. I am going to sit back and observe how this all plays out, adding more at a time. my investment strategy actually calms me down. Eye on the prize, stay the course!
Dividend investing is great, just be patient. I went from making enough passively to pay for my netflix and hulu to now making enough to cover half of my mortgage. Not commenting this to brag, just to give hope to anyone who is discouraged by tiny gains in the beginning.
what route did you take? how can one invest more efficiently? help. sounds like you got something going for you. I am new at investing and really want in.
Recently I got into the financial niche, and I’ve taken a deep dive into investing, particularly dividend growth investment as it interests me. hoping to get to your level someday.
love it when i see my fellow individuals excelling. I'm also on my way to the millionaire's club from investing in stocks. It's exciting watching your wealth grow. Good luck to us both.
Every retirement is different. I retired at 57 and then worked part time and travelled. I started withdrawing from my IRA at 59. The market has recovered that amount. In 6 months I qualify for SS. So as long as I live I expect to have a fun life of adventure. However, let’s not forget our fellow Americans who, because of lack of good jobs, worked in the service industry with no pension or 401k. They will suffer in the future and it should be our goal to help them in some way.
I’m 48 and on the same path as you to retirement. My only x-factor if I choose to retire around 55-57 is health insurance. I’ve been maxing out my HSA for 15 years so that is a good nest egg for medical expenses when I retire. I’m still trying to figure out much my yearly health insurance would be before I hit Medicare at 65?
@@chrisolivo6591 I have been lucky because I’m on my wife’s insurance. She is younger than me and will work until I hit 65. Everything I own is paid for-house, cars, education. That made it easy to quit early. One option for you is O care if it exists by then. Or maybe our corrupt politicians will wake up and expand Medicare. Don’t hold your breath though.
@@akeffo Expand Medicare? Like you said, not going to happen. Congress is on the take through campaign contributions and lobbying. The for profit system is too lucrative for everyone but the people actually using the healthcare.
@@DrSchor By supporting future funding of Social Security. This may be the only source of revenue for people. Do not buy into false statements saying SS is not going to be there in the future. I hear younger people repeating this lie pushed by right wing sources.
Really love your videos. SPOT ON! My mantra is DISCIPLINE is FREEDOM. Always do your research on purchases; always spend less than you budget; if you don't have the money then don't spend it; aim for no debt; think twice, actually think three or four times before you purchase. Try not to get caught up in fads and don't care what others have. It's your life. Avoid FOMO (fear of missing out). Life does throw you curve balls but you have to find a way out. Less if more....
My wife and I retired 2.8 years ago. Have a nest egg for retirement of >8 times earnings when we retired. Tracked basic living expenses over the last 10 years of work and it came out to be $36 to $38K per year. After retirement stayed the same just shifted money from some expense categories to others. The cost of health care went up appreciably and now takes up about 1/3 of our basic living expenses. So it is true when you retire your health care costs will increase versus when you are working. Don't know how some people (81%) will be able to retire and only live on Social Security.
They always want to focus on saving when savings is just a piece of the equation. Is your home paid off, is your vehicle paid of, is the car old or new. What debt do you have. Do you have a pension. Is your social security at the minimum amount, or larger amount? My savings isn’t grand, but the other parts of the pie are. Don’t just focus on savings, try being debt free also. My best piece of advice is don’t live beyond your means. It’s better to live poor and be rich than to live like your rich when your really poor.
Thanks. You said exactly what I planned to say. You can’t look at one dimension only. Especially important to live well within your means, in fact have a fair bit of margin in case things go sideways. And avoid debt.
Yes and no. You can be rich and live poor but nobody lives forever. You hear horror stories of the retired person who saved and died wealthy never spending on themselves only to have their kids enjoy the money. If you work hard you should still enjoy life and what you worked for. Money is meant to be spent not looked at in a vault. It has no value unless it is spent.
Money is not everything. We are immigrants in our early 50's. We already have a couple hundred thousand and will have no bills other than insurance, taxes, utilities and food. We started with nothing in our 30's, had a lot of medical bills within a couple years, due to a major operation, now all paid off. We never made a lot of money, but always lived comfortably, but always below our means. You don't have to live on beans and rice to save an enormous amount that you might not live to use. Life is good now and will be good after we decide to retire. We are living now and will enjoy living when retire. Too many people are too focused on the retirement stage and forget to live in the presence.
Some people think that living well in retirement means driving down Ocean Blvd with the top down and sunglasses on. If they had this perspective they'd live a much happier life
THANK YOU!!! I have been wracked with worry for the last few months. After a couple of your videos, I took the time to get as much of an accounting as I can and at 58 I am at 3x though I plan to work til 65 or so. At last I will sleep soundly and not wake up in a panic. I literally thought I needed my salary x all the years left that I could live.
One thing you absolutely must do - if your company offers you a match, TAKE IT! It's free money you would otherwise be throwing away. Last year, I maxed my contribution amount and was able to take advantage of the catch up contribution. It's never too late to start.
I saved all my raises over the years in my 401K and continued to live on my initial income from age 30 to age 59 1/2. I retired early when I was offered a buyout. Sometimes you have to eat peanut butter sandwiches to get there but it's worth it.
@@arnoldjohnson3317 Wishful thinking. My father left his money to his girlfriend after my mother died. My husband and I have bought one new vehicle in 20 years and one used one. I love old furniture and my husband refinishes whatever I buy from an antique store. We both cook so we don't eat out often. Of course, with the virus, not at all. I feel that we have a better life than most. I ate peanut butter or rice when my daughter was little. I was living on one income after a divorce and my daughter required expensive medication. I never wanted to be poor and that's what drove me to save. My daughter had new clothes and beautiful outfits for Easter and Christmas. I spoiled her.
@@carolwilliams2356 I’m just like you. It just burns me and many others on here, to hear Schmidt say that we are all trust fund recipients if we sacrificed to save money for retirement. I noticed that he has yet to admit that he is wrong. This will be the last time I ever come back to his channel. I can’t understand the mind of guys like him. I know exactly what you had to do and give up to be able to have what you have. Apparently guys like Schmidt don’t think you did anything but be born into privilege.
YOure not going to be happy to find out that REAL inflation has been running at about 10-12% per year in most US cities .... meaning what you didnt buy last year now is 10-12% more expensive ..... AND to make you even more 'happy' the US dollar has been rapid been losing is purchasing power in an equally strong rate but in the opposite direction. The USA govt. spends too much on CRAPto keep the pols happy.
@@richh1576 If you have no debt, you can better control your expenses and offset inflation quite a bit. Instead of paying $14/lb for steak at the market, I buy half a cow and pay $4.50 lb average. Shop sales and use coupons and senior discounts. I upgraded my furnace and AC to HE and cut my expenses by half.
Nice. I started at 26 investing 15% The best advice I got was to try to hit $1 million invested BEFORE you hit 50. I'm shooting for 1 million in retirement and another million in Non-retirement accounts by 50. To give me the option to retire early without touching the retirement investments and incurring penalties. In total I'm investing 30% of my income now. Remember because of inflation your money will be worth 50% of what it is today every 20-30 years.
@mizzmolly sure as hell hope not. started smoking 3 a day for past 4 years at age 50. that's roughly 4000 cigs. Surely the grim. reaper is in my corner on this one. Zero interest in living beyond my 50's. Best days are behind me. Not complaining 'cause I have good memories, but sleeping with old chicks and craping in diapers is not my idea of a good time
Put my entire 401K in Tesla stock in 2015. Turned $297,000 into $4,500,000. Best decision I ever made. I'm aware I was lucky as well but very thankful now for the way things worked out!
I’m doing the same with my younglings and starting them off with 1k each. I hope the experience a market pull back very early on to understand that long term investing works best with dollar cost averaging over the long run.
I'm 63. Health insurance would cost 2/3 of my Social Security. I have some savings but not enough. If it weren't for the cost of health insurance, I'd retire yesterday.
@@keyoke69 Assuming a younger woman wants to marry one of you old codgers, lol. I'm a woman and will retire very early (40s... early 50s at latest) and will do it by leaving the US for Europe.
@@phlodel I retired for the third time at 72. Medicare and SS are broken. I guarded against everything except unlimited printing of money Then came 2020.
You are SO RIGHT about expenses post retirement vs expenses pre-retirement. I retired at 62 with 125K saved in my retirement. My biggest saving grace was when I retired in 2017 I sold off my home (that I still had a mortgage on) and moved to another state where I was able to pay cash for another home with the equity I made off my previous home. I also made sure all my debts (vehicle, loans and credit cards) were paid off before I retired so I wouldn't need as much money to live comfortably. So far it's worked out well for me, but I remember being concerned that I wasn't going to have enough money in my 401K because I didn't have at least $400K saved which I'd always been told I'd need. Not necessarily true.
Your situation sounds similar to ours. We have $120 K in investments, a small mortgage payment on a home we love, no other debt. We will retire in 3-5 years with a union pension and 2 SS payments. Our monthly income will be plenty to pay what needs to be paid. We don’t like to travel and have very inexpensive habits and hobbies. I feel better after watching this that we did ok over the years.
Your summary that the higher savers are trust fund retirees or people who had special privileges/advantages is a false narrative. Any average income family has the opportunity for higher than average savings if thy jus controlled their wastefulness. I had the privilege of no extraordinary vacations, luxury cars just save & invested conservativeLy. Try that for an approach to retirement
Thanks. Disagree. For everyone one of you there are many more that have nothing (12 percent of our country lives below the poverty line). On the flip side 1% falls into the category of, well, the 1%. If you stratify the people at the top of this information it's about 2%, then it falls precipitously. So you worked your way up (as did I), but many more just invested extra cash because of the tax advantage.
@@HolySchmidt Well, I left home at 17, put myself through college and married a women like me how is not an extravagant spender. We paid for our daughter's college and wedding from day to day savings. Both were expensive. We both drive Hyundai's. Excluding my house, I am pushing $1MM. Most of my retirement is in annuities. 401k pushers hate those, but I know exactly what I am getting when I retire and I am not tied to the stock market. I have other funds for additional expenses like travel, cars, etc. I started when I was 30 (a bit late), but my wife and I are set and she gets a nice pay-off when I die. We have very little in IRA's or 401k's That will be play money until they are exhausted.
Bob - my parents were like that. Vacations involved camping trips - sleeping in a tent, not a hotel, driving a Plymouth compact until it died, and saving $ in the bank when interest rates were around 13%. didn't start off wealty, mostly because of The Great Depression.
@@arthurmroyce - "when I was 18, lord I hit the road, but it really don't matter how far I go" - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-d32h0TuSgEY.html
Exactly how many people do you think are like you? Having a lot of stuff and a fancy home, in a fancy neighborhood means in debt to their noses for most. That thing about most people not able to afford a $500 repair is not imagined. You are 'one of a few' kind. Congratulations. Read what you wrote: "if thy jus controlled their wastefulness". Which is why, so many millions need free food and can't pay rent or mortgage, right now?
So heartwarming to see everyone sharing how rich they are. I have nothing. Life was tough and much of it was out of my control. Enjoy your retirements.
I think this was showing the opposite. A 401(k) non-Roth IRA will be taxed when taken. The median amount ($61,450) divided by only 15 years is less than $4,100 before taxes. This is a bleak situation.
@@bryantsherman7263 That amount is not squirreled away in a lump sum. Did you miss the continuing expected return rate on it??? YOU are why people do so poorly with their money... you don't know the first thing about simple or compound interest. You don't just take the amount at the age of retirement and divide it by the number of years you think you're going to live. Ugh... we are doomed.
I worked alongside factory workers all my life who refused to save anything. It’s life style choices simple as that! You can drive an older vehicle, live in a smaller home etc.
I’ve worked my butt off and payed off 2 houses plus a business, I’m still nervous that when I’m ready to retire knowing that with a stroke of a pen, a bunch of lowlife Politicians can do some serious damage to my plan.
Shane, our plan! We worked our asses off, bought fixers and fixed, rented them out and sold. We would come home from work and work on our fixer as soon as it was finished we would rent it out and buy another. Our plan was to sell the properties and go into CD's when we retired. Well you don't have to guess how the government who told us to save all our lives did to us! We now must keep our rentals as the interest on a million dollars wouldn't come close to even paying the taxes on the house we live in! And the reason, buy votes, since people like us get the screwing because there are less of us and we have money because we practiced self denial. SCREW THE SAVERS, SCREW THE PEOPLE THAT DID WHAT THE GOVERNMENT TOLD THEM TO DO.
@@TheThnikkaman1234 Right on Todd, Instead of gambling in the stock market we invest our wages in housing, that way after work we could still work on our fixers thus giving us more hours we couldn't get at work. If our company had given us overtime we would have taken that. We actually rented them out as soon as we finished them and moved into another fixer and did without vacations and fancy cars. Our money went to tools like drywall lifts and numatic nailing and stapling equipment, scaffolding, paint sprayers, anything to make the job go faster and easier. We lived poor to get ahead and now lazy bums that spent every dime they ever made get free housing, free medical, free food, free phones, free transportation, while we have to pay for everything.
I couldn’t agree more! Same here, saver and side hustled my entire life. Now at 55, great savings, commercial rental properties, it’s sad to think the politicians could take it all.
You also have the option of retiring *off shore*.. I am single 80 years old, modest means, retired in luxury with less than $1,500 a month to a small Mayan village in Guatemala (wonderful people and weather)... I save $1,000 a month if I need to. etc. It is not for everyone but works for many. Those costs are common in the bulk of the rest of the world. Do not be deceived by scammers selling real-estate in those areas for half US prices, which is still high, you can move there and find out the prices are way less than a tenth US prices... and yes there are all sorts of cautions. I prefer to rent however. No risks there. The 'dangers' are exaggerated in most cases, and virtually all not as dangerous as parts of Detroit, LA, San Franciso, and NY etc. At rock bottom but quite livable are places like Lomi Togo west Affrica, a one light bulb room is $6 usd a month.. low or near zero crime rate. bring yer own bed and front door. Shower outside behind a 5 foot high wall. Decent and fun people.
he has no actual data - sure there is a trust funder or 2 out there so we can't call it lying... think those types of comments are just made to make hard working, reasonably wealthy people feel bad so they will buy whatever the author is selling. Dave Ramsey does it too... not saying he's wrong but he learned how to appeal to your fear and frustration.
Because it is a fact. That fairy tale that most millionaires are "first generation" is total nonsense to keep people in check. "When I grow up, I'm going to be a millionaire." Yeah, sure. Lots of fake millionaires, pretending they are. Entering into a close club, is just an illusion. No contacts, no luck.
I have 787 million in my 401k and... not really kids! Teach your children early to be frugal with their money. It will go a long way helping them in life.
You gotta keep expenses to a minimum and "pay yourself" (invest consistently in a low-cost mutual fund) every paycheck. The sooner you start the better.
My wife and I have been retired for about twenty years. We seem to be living a very comfortable middle income lifestyle on our social security and reverse mortgage .
Great memories. World Traveled. Traveled the U.S Beautiful food. Top Restaurants, Best Wine. Excellent Footware clothing. Movies and theater regularly. Practical modest vehicles. Paid for thousands of dinners for friends and family. Charitable. Never owned property. I'm in my last fifteen years according to male life expendecy. Will have to draw from savings till the end. All assets are liquid. The savings are modest as is the Social Security. Yet I have no regrets because this one life was purposely lived. to the fullest. There is no way that any of these choices could have been enjoyed in this autumn time of life. Would I like to have had more absolutely.
I love this. We’ve lived the same way. We put away some, but also wanted to travel, experience all that life has to offer while we were relatively young. Now, I’m near 60 and my husband is near 70, and our energy levels are much lower. We like being homebodies. No regrets.
Finally, I read someone with my thoughts. I lived and traveled around the globe from my twenties through to my early 50s. I probably could have saved more for now when I am 60, but I think to myself, "I would never want to get on a plane now and travel to all those places I went to." I also helped a person completely change life from poverty to having a roof over head, vehicle and some hope. I don't say this to boast. I say it because again, I did it when I was younger and full of energy and so glad I did. Now I'm 60, with a steady job that fits my steadier, slower older lifestyle. A person has to weigh the things that will bring joy when young with what will do the same when older. In youth the energy propels you, enjoy it.
The other important conern is that women are most disadvantaged if they took time off of work to raise children. And many employers rely on their employment to contribute to their 401 or Superannuation. Thank you for you talk.
Bottom line is savers will save and non-savers will not. Unfortunately, there is no magic pill or formula to having or preparing for your retirement. If you are making a steady income and are able to put away at least 10% of monthly income to your 401K for at least 25 years and NOT touch it, you will be fine. Now fine depends on your lifestyle or what is enough. I stopped thinking of the ideal amount because once I got there I wanted more! The main thing to remember is what do you want your lifestyle to be when you retire and plan accordingly. Good luck!
I am 51 and my net worth is $1.1M, well on my way to an eight-figure net worth by age 65. That took a lot of hard work, self-sacrifice and regular investing to reach just my first million. However, I live in California, and I think that to retire comfortably here, $10M is the target net worth. $1M in California is not enough, given that the house alone costs about $1M to begin with.
That’s a great outcome and you should be very proud of the hard work you put in. Will you share your strategy so others can learn from you? Also don’t forget to subscribe :)
You need to earn 17% per year on your investments compounded annually to achieve 8 figures from $1M in 15 years. Not out of the question but almost out-performing the stock market by double. You’d need some other forms of investment most likely riskier.
I'm 65 years old and I'm am retired I feel very fortunate I paid as I went my home is paid for. I did not go to college I went to the School of Hard Knocks I worked on heavy equipment trucks bulldozers anything with a diesel engine. My father had a lot of health issues and when we laid them in the ground he owed me money actually he owed me nothing. Now because I have worked hard have a little bit of savings hopefully enough but who knows. I'm supposed to pay for people that went to college who borrowed money and decided they're not going to pay it back. Driving old cars and trucks that I've had to patch together my whole life to get to and from work .Now I'm supposed to pay for some college kid. If you borrow the money pay it back that's the way it's supposed to work if not you're a glutton. Reeking something you did not sow. I'm running into issues when I want to get some money I have to pay all these taxs . So I'm still struggling looking at my money knowing if I try to use it to going to attack the hell out of it to pay for these college kids I guess or whatever else the hell they can come up with and Washington DC. Biden can kiss my southern ass.
Wow! I'm 59 and my retirement goal age is 62 but I'd love to do it sooner. The problem is health insurance premium costs are ridiculous! I wish you'd look at what I have so far and help me come up with a plan.
Dude, that is not a problem for retired folks not yet elligible for Medicaire. The reason is, you can control your income when you retire. I am 62, my wife is 58. We are retired with $3M in our 401K's and IRA's. With the Federal subsidy, we pay $130 a month for healthcare premiums for both of us. The Fed does not look at assets when determining your subsidy. They only look at income.
In 1995, when I was in my early 30’s, I only had $10k in an IRA. Now in my IRA’s and 401k’s from different companies, it’s $850k. The key to being able to max 401k is to have high paying jobs. I made about $50k a year starting in 1996, and since 2009, over 100k a year. Lately I’ve been puttin* $26k a year in 401k, which is the max after age 50.
I’m a 53 year old Canadian. I have almost a million saved, 2 million in real estate, cars paid for, and looking at retiring in the next 3 to 5 years with a public service pension of about 7500 per month after taxes. While I have a higher income now (250 K) that was not always the case. The trick is to prioritize savings ad treat it like a bill and start young. The amounts are in Canadian so knock 20 percent off for USD.
Save as much as you can, as early as you can. AND LIVE WITHIN YOUR MEANS! I put 22% into my 401k and am on track for 8x my salary for retirement plus I'll receive a pension worth about 50k/year for life....and I started way later than I should have. Point is, it's not too late if you get on a good savings schedule and "pay yourself" before you pay anything else. Go for it!
I traveled all over the world in my twenties after college - hitchhiked mostly. Picked up jobs here and there (sheep farm in NZ, ski resort in Lake Tahoe, the canneries in Alaska, door-to door- sales in Australia, taught English in Japan, etc...). No college debt back then. That was during the 80's and I figured might as well do it while young. When I hit 30 I came back to NY and figured I gotta get serious. When I was a kid my grandmother would tell us stories about living through the Great Depression - she was a public school teacher in Brooklyn and was able to support her young family. So, that's what I did. I wanted the security that came with public school teaching - got a couple of Master degrees at city college that was affordable again, no debt; got married, a kid, bought a condo in the city. We struggled but never got caught in the 1999 crash, 08 , Covid, Now 57y/o with 500K in 401K, a manageable mortgage, paid for son's college and a 100K annual pension at retirement at 59.5. I've been blessed.
No one cares. You come to RU-vid to tell us how great you think you did. No one cares. And, no, you are not "blessed." That's just stupid. Pretty sure your grandmother didn't teach finances.
I'm a 40 year old retiree. I retired 6 years ago. I don't have a huge 401k, or even a huge stock portfolio. I focused on multiple streams of passive income. I'm not living a lavish lifestyle but I don't have to work either. So much depends on the lifestyle you choose. To be fair, my wife, age 38, still works but she too is planning to retire in a couple of years. I have a passive income of roughly $62k a year and she is expecting to hit $30k-$35k in passive income by age 41-43. I favor income over huge portfolios. Equity doesn't pay the Bill's. Sure I could borrow against it but I favor income and keeping expenses low. Don't get me wrong equity is great but ideally I want both. We may take on projects, business ventures or even jobs in the future but they will be on our terms so we are not beholden to an employer.
One thing I am finding in my 60s is that I don't need to eat as much, probably due to a lower metabolism with age. My spending on food has gone way, way down. Also, adopting a minimalist lifestyle, which seems to be trending now across all ages, contributes significantly to a drop in expenses.
I grew up poor and went to work fulltime at 18. Saving more than 700k is not hard if you live within your means and start saving for retirement from day one.
Totally agreed. Ditto growing up in poverty. Dad was a cardiac cripple by his late 50's due to a string of heart attacks, which forced him into early retirement on a meagre (~$250 mo.) pension. We survived on SS and because my mum kept the family together and earned money from piano lessons, playing for weddings & funerals, etc. She saved every penny she could. We all learned to live within our means and - very often - do without. You don't spend money you don't have. Period. I was lucky to be able to go to college and get a professional degree, but not before _years_ of education and training. My wife and I have always lived well below our means and are on track for that 8x target by age 67. It wasn't always easy, but we always had a roof over our heads and food on the table (and a car that ran). It sounds _so_ cliché, but hard work, regular disciplined saving, and living within your means is the formula. Cheers, mate!
I’m above the top tier. Not because I’m a trust fund baby or lived in my basement I started saving at 22. I am now 56. Be careful on passing judgment. Oh and I’ve been divorced twice also.
81% is a lot worse than I thought. I'm not going to mention what I have, but definitely not a trust fund kid. Just lived within my means and didn't try to keep up with the "broke" Joneses. It also helped contributing to the 401K for over 30 years and maxing it out for the last 22 years.
My $800,00 401K came from 42 yrs of full time work as a RN and living below my means. Also, my father became an invalid when I was age 6 and died when I was age 15. Social security paid my nursing school tuition and I obviously paid it back thru working. Only a few people accumulate this much saving thru trust funds and living with mommy/daddy. I lived on my own since age 18. People don't want to discern between needs/wants when budgeting. I am blessed since I've always had a job (even through recessions) and live a good (though not lavish) life. Even Warren Buffet lives a simple life and is happy.
my son (21) is in college… we’re paying his tuition in full, he has a job and I am matching up to 20% of his income IF he puts in a joint account and doesn’t touch it. I want him to get him in the habit of putting 20% in the 401k or some retirement account and living without that 20% until he retires. if you don’t see it, you won’t miss it. if you don’t save it, you’ll just piss it away.
The 8X factor is based on future Social Security funds declining. If they actually do! 401K plans have one big draw back that is not discussed. TAXES when withdrawn. I would advise younger folks to aim towards Roth IRAs. Which are not taxable! Taxes on the 401k maybe in the neighborhood of 22%. Which can interrupt your financial plans.
Unless you plan on living on a fairly minimal amount. 39k/year in today's dollar would be plenty for me and wouldn't be taxed all that harshly. I'm much better off putting in my traditional to lower the taxes on my 78k income right now
I used a very simple formula, buy what you can afford with the money you have available and save what you don't spend. Used this my whole life and retired a 53, put two kids through college, own my own home and have 1 mil + in the bank. Thinking about retirement at 60 is foolish you have to start planning at 20 and stick with it.
My son finally got a decent job -he's 23. The first thing I MADE him do was sign him up for his 401K. He didn't argue though....as I've taught him about money his whole life. My goal is to escape at 62.
@@ellamanwah3400 I'm not sure what you mean by "planning with online investment"? Do you mean going onto websites for Fidelity, Vanguard, Janus, T. Rowe Price (and etc.) and using their on-line planning guides or wealth calculator applications? If so, YES -it is a good idea. STAY WITH THE BIG NAMES that I mentioned...don't go with some of these fly-by-night investment companies!
@@ellamanwah3400 I played in the stock market...I made money and lost it. I don't know anything about bitcoin. I invest for the long run which is mutual funds. You won't get rich quick...but you'll get rich slowly.
Like many other commenters here I too have a large retirement savings account but no trust fund. Heck, I even put myself through college (after working for 10 years first) then raised two children and put them through college. I retired in 2015 at age 61 and I still have about the same money in my account despite using my savings to fund our retirement and travel (winters down south and a month in Europe each year) plus both my wife and I are holding off on social security until age 70. I suppose like the other "big account" commenters we are different from the crowd but you don't need a trust fund to do well, you need discipline. You also need a bit of luck with good health over your working life and avoiding any lengthy work layoffs, if you married a divorce can lead to a financial meltdown too. I try to never discount that sometimes things out of your control can make a mess out of the best plans. Still, I appreciate that the video is for those at 60 looking to retire and are more like the "average" example. At this point there's not much you can do about what you didn't save so you have to make the most out of what you do have.
I know back years ago, broadcasters used to run what was called "Public Service Announcements." I know they still run these, but then they were a bit more formal with some good lessons. There was one that this guy was retiring and his co-workers said, "Congratulation s! Here is your gold watch, you are retired!" He answers, "But I can't live on a watch!" IIRC the PSA was reminding you to participate in what was called at the time, "Payroll savings plan." Looks like 81% is going to live on a watch. Great video!
I don't see the point of comparing yourself to the median or the average. That is exactly the same as comparing your life to your neighbor's life.Oh, they just got a new car, so my life just got worse? Silly. I'm 63, retired at 45. My net worth is exactly the same today as when I retired 18 years ago. My house has been paid off but my cash that entire time has been sitting in a cash account, zero investments. Investing is work which I don't enjoy so I don't do it. Zero stress.. As the video says the difference in what you spend. If you need to always be on vacation in order to be happy, yeah, that's expensive. I got into gardening, I enjoy flipping a house once every 5 years or so doing all the work myself. I still enjoy writing software. These are things I enjoy, cost almost nothing to do and sometimes even earn money. The difference between working and retirement is there are no deadlines when retired. If I get tired of working on a house flip I might stop for months and go do other things, no problem. I haven't taken social security yet, no need. Imo yes save money, pay off your house or get a house you can actually afford and most importantly, more important than focus on investing, is transitioning yourself to doing things you actually like doing. Finding things you like doing that don't cost money. I have a friend 86 years old, had a million beyond his home when he retired at 65. He and his wife travelled all over the world and slowly spent that million by the time they were 75. He tells me he never expected to live this long. I almost never hear them ever talk about their travels. When they do they don't sound like they enjoyed it that much. And now they don't have the security they once had. Why did they travel and spend all that cash? Because that's what they thought people did when they retired. Not because they wanted to. My parents loved to another state and bought a house on a lake...because they thought that's what retired people do. My suggestion is to retire before you actually stop working. Start living like you would when retired. Learn to cook so you like cooking and enjoy your food more than going out. Find hobbies that keep you so happy you don't want to go to the movies. My two cents.
Thanks for sharing your experience. I have to admit that I tend to worry a lot about having a decent save for retirement. I'm just starting and wish that I had save more while much younger. That alone gives me anxiety.
@@ariefraiser140 Correct, except I wouldn't use the word "significantly". Not sure what point you're trying make. Many things have changed in those 18 years. In the beginning of those 18 years I paid about $600/mo for health insurance and in the past 5 years $0/mo. I'm also 18 years closer to death so need less money. My goal was never to die with exactly the same number of dollars in the bank as when I retired. There are many aspects that go into retirement.
You're missing adding in the value of pensions and social security. A person or couple may not need savings if they have a great income based on their pension and/or social security.
@@deb5392 I hate to say it, but you’re probably right. I’m 2 years away from social security and I keep expecting our government nitwits to take it away.
Oh my gosh, you don't know how much you just brightened my day! I thought I was doing abysmally by being 60 and not having enough in my 401k but I have more than the median has. And I did that by raising two teenage boys on my own with a large mortgage to pay and a graduate school loan, etc.etc. Thanks for at least making me feel like I haven't done so bad after all.
It's never too late. More importantly there are things you can do in retirement that can dramatically increase your income level - especially if you have a little money coming in from Social Security and any savings. My neighbor got a real estate license and does that part time. A good friend took a course in PhotoShop and generates a nice income on Fiverr while quarantining in Florida - there are hundreds of these opportunities if you are not chained to a job. The important thing is to keep your head on and remember the triad of income: savings, social security and perhaps hobby income from something you love but didn't work in the past because of commitments. Also - keep saving!
@@HolySchmidt I am chained to a job right now. I need to watch more of your videos. I'd like to not be! I hadn't planned on collecting SS until age 70 but I'll watch your video.
@@HolySchmidt hmmmm. What do you say to a large portion, maybe even the majority, of financial planners that follow/preach the 4% rule, which implies a 25x cost of living nest egg?
@@HolySchmidt It's too late if you are dead! I love that, "It's never too late" line! You hear that all the time! "It's never too late for love!" You're 85, have terminal cancer, have two weeks to live, but hey! Live a little! Ask the nurse out!
I started at age 30 and rolled it over when I was 52. My choices may not have been the best, but they have provided me with the very good income in retirement.
