Retiring On $34,000 In Investments | Is It Possible? 

We experienced the pinnacle of our era, but it is now gone. Like what happened to Rome, the corrupt administration will bring this nation to an end. My condolences go out to anyone who is close to retiring and may be worried about whether their pension will be enough to pay the rising cost of living. Insane fiscal policy, poor regulatory policy, poor energy policy, and poor foreign policy

The whole point of wealth for me is freedom. My magic number in my mind is 5 million needed at 65 to not worry about anything. Am i better off investing a good portion of my income into stocks or saving my earnings to achieve this goal?

The idea of retiring with a mortgage, would scare the hell out of me. We just retired. We sold our old home and downsized a bit. No mortgage and no debt. My wife and I can now live comfortably on out SS, and our investments can be used to travel and enjoy these years ahead.

I had initially planned to retire at 62, work part-time, and save money, but the impact of high prices on various goods and services has significantly disrupted my retirement plan. I'm worried about whether those who experienced the 2008 financial crisis had it easier than I currently am. The volatility of the stock market is a concern as my income has decreased, and I fear that I won't be able to contribute as much as before, potentially jeopardizing my retirement savings.

Note to self: Do not wait until late 60’s to learn about finance & investing. 🇺🇸

Retirement planning can be quite overwhelming, especially when it comes to choosing the right investment options.

So many RU-vidrs love shaming people who didn't invest their whole life. What they don't realize is that until recently placing trades was really expensive, erasing any gains from small sum investments. Also, there is a huge portion of society who have never worked a job that offered a 401k, and probably don't even know what that is. There was no RU-vid, no internet, and no financial education in public schools.

I assume this individual is single so I love the Golden Girls idea. Not only will it reduce expenses and stretch those retirement dollars, it will provide a social circle and support system as she ages. Stats show that women live longer so loneliness can also impact quality of life in retirement.

My "favorite" scam are the ones that start off with what sounds like a well meaning comment about how they turned things around financially, they then use other accounts to reply to the comment. With some of the "others" backing up the original comment. There's usually someone that will say "Oh yes, Camilla Marie Thornton (name is an example) was the best and made me tons of money". Always report these as SPAM because that's what they are.

A friend of mine is in this exact situation. I was hoping there was "magic bullet" advice I could pass on to her. Nothing compares to steady contributions and time!

I saw this article a few weeks ago. I think the main point was that this person said they had been "putting money in" the IRA. They did not say they actually were investing. Maybe they didn't realize that just transferring money to an IRA wasn't the only step they needed to take.

I live in a 3000sqft home alone. I've thought about getting roommates even though I'm still working and mortgage free. My fear is, tenants will expect me to support them rather than pay their rent. Being irresponsible doesn't end at a certain age.

Whenever I feel like we're not going to have a solid retirement, I look at those median numbers and exhale. I can't imagine. This is also the second golden girls reference I've heard on a retirement finance video this week.

Hit 200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started with 17k in last month 2024.

Wooshing in there with the Captain Hindsight preamble

IMO, a homeowner should not "split the mortgage" with a renter. The rent should fall at a market rate for the room they are renting, which will hopefully cover a share of the mortgage but also more since the owner will still be paying taxes and upkeep. Ideally the owner would benefit financially and be able to chip down the mortgage. Depending on the situation, market rate for the renter could be lower than what would split it but would still be better for the homeowner than paying it all themselves. It is none of the renter's business what the mortgage is, only that they are hopefully getting a room at or below market rate and the home share arrangement is benefitting both parties.

Great tips Erin! Your hair looks great!!

Just a little cold water here: anyone can retire anytime they want. The question isn't "can you retire" (of course you can!), it's "can you sustain it?" With the stress of mortgage debt? With roommates at 69 yrs old? With 20/30k? The answer is no. Claim social security and make up the difference with a job. The only other option is to take somebody else's resources. It's not always the worst choice, but it's certainly not the best.

Thanks for the video!

Excellent advice without judgement. Way to focus on providing realistic options.

Pragmatic scenario for an unfortunate situation...all good points, Erin.

Heres my input. 1. Get on a strict budget. 2. Stop eating outside. 3. Cook at home, walk every day. 4. The above is to stay healthy. 5. Get responsible housemates. 6. Get a reverse mortgage. 7. Invest 34k in short term CDs or other safe investments. 8. Keep working as long as possible. 9. Take life one day at a time. Tough situation. My heart pains for him. He must be a simple man. Investing for retirement is no easy process if there's no guidance.

Not nearly enough money , just work til you pass !

Thank you for continuing to educate and explain difference between savings and long term investmenting

I think these statistics about retirement savings totally leave out how many people work a pension job and really had no reason to have to save. Public service, teachers, and state workers are a huge segment that is constantly overlooked in retirement stats

I got 272,000 in my 401k at 52 years old! So I am above average for my age group 😊

While the example doesn't really give us all the information needed, such as current salary, I'd say they are not in terrible shape. First, let's HOPE that they refinanced their mortgage sometime in the past few years, when rates were low. If they did, at a 4% mortgafe rate, the loan amount would be about $300,000 to have a payment of $1400. With a $300,000 loan, he had a decent income, which means he should have a higher than average SS benefit. Also, to still have a mortgage at 69 is not good, but with my assumption here, he should sell and downsize. My Dad passed in February at 99 years old, and retired in 1980. His SS and pension combined was about $2400. He did have some savings, but the $2400 more than covered all his expenses. He owned his house and car. Even with that low income, he saved money on a monthly basis. Now, in full disclusure, he did have savings, but that was mainly used for large items, like a new roof, car, or tractor repairs.

Great video Erin!

This is exactly my uncle’s situation except he doesn’t have a home and he’s a little older. His solution: he moved to Colombia and lives on his social security check which allows him to still save a bit of money. I can say he’s comfortable there, has an active live and even a very nice girlfriend. I think people can do it, they just have to be willing and able to make some drastic adjustments. Loved this video, Erin 🙌🏽🙌🏽🙌🏽💕💕💕

Hi Erin. I look forward to your videos and appreciate your content. This was no exception. You did an excellent job of discussing various options for this individual who was in a very difficult situation. The statistics you shared were sobering and sad. My hope is that the upcoming generation does not put themselves in similar situations. Unfortunately, people are people and many will make bad choices. Keep up the great work Erin and have a great week. Larry, Central Valley, Ca.

Reverse mortgage has very high fees, very expensive. Beware!

It's easy to say you should start investing early and that's the solution. But not everyone is able to do this...One solution this man could consider is to do some part time work if he is healthy enough. He could also utilize food banks to help with grocery bills.

My three favorite channels: Erin On Demand, Stock Brotha, & How Money Works. Make my week complete! 🔥 🔥 🔥

The Golden girls idea is good. Also, this person can rent a room, use the house as an AirBNB, to pay the mortgage, and still keep the house. Getting a furnished rm in some places can run $500 to 650 per month, with food & cheap cell, expenses can be no more than a 1K, & the rest can be put into an aggressive growth account to grow, and house will still be growing in equity. Regular renting can be a steady check, but renting it out as an Airbnb will get more money faster on the short end.

Even for paid off homes, it's the home maintenance that gets retirees in trouble. In extreme circumstances the city declares their home unlivable and they lose it. A decent scenario is that they hire more contractors and hope they don't take advantage of them. A lot of people go the reverse mortgage + SS + part-time work route in these situations

Erin I loved this video! ❤To me it was by far your best and I'm glad that in your talks on retirement you don't forget the "average," everyday person. The average retirement account for those over 60 is under 150k so this lady's situation isn't that far fetch. Not everyone will have a high paying job but your still able to enjoy a good retirement. Yes social security will be 80% of your income.. It's doable as long as you make some adjustments to your lifestyle.

This... This hits close to home. I had a grandma pass recently, and she had no savings at all. A small partial pension from a former marriage, and social security, and that was it. And because of some drama that happened over the years, people couldn't help... Paying her bills and helping would make them liable for her debts, and there was a lot of debt... So grandma was just kinda stuck. Outside of rides to the Dr, there was just nothing that could be done. Just rough all around. Definitely a wakeup call for the rest of us.

My g/f and I are leaving the U.S. to a country where the cost of living is lower. There are lots of choices, and expat communities you can hook up with.

Erin, keep in mind. The person who is 69 couldn't invest easily 50 years ago. Most jobs didn't offer a 401k. IRAs became available in 1975 but not everyone understood them or how to set them up. (You could set an IRA up with a bank but that was a CD and not funds.) Some jobs offered a pension (but you had to work there 10 years). 401ks also had godawful fees. And if they lost most of their money in 2001 or 2008, they probably left the market at the wrong time.

You can't do a reverse mortgage if you don't own your house LOL

Thank you for calling out the scammers! So annoying!

9:53 SS income / Reverse Mortgage / Roommate / Continued FT or PT work / Side Gigs / Coupons / Generic Meds / Month of Meals / SNAP / Heating & AC Assistance...... It's a great time to get rid of all subscriptions and realize eating out isn't were its at for you. Cable TV is not a need. Ditch bad habits (Alcohol and cigarettes aren't free.) In vest your spare time in maintenance, what you don't hire, you save. Exercise, a fit body usually breaks down less often. Don't apologize to the Joneses (you don't have to go out with somebody just to be a friend) and don't try to keep up with them either. Drink tap water. Make your own coffee. Craigslist or Ebay things you don't need anymore. Dress appropriately for the season, it can save you money. Review all insurances and cut to the minimum (If your car is 12 years old, should you really be paying for full coverage??) A DNR is not the best way to cover shortcomings on retirement for your spouse (Rage against the dying of the light).

For us, the key was being married for a long period and agreeing on money from day one. We always invested and saved 20 to 25 percent of our income. Paid cash for everything and had no mortgage at my age of 43. Also, living in SW Michigan is reasonably affordable. We sacrificed to get here I waited to 67 to draw and my wife at 64. Between SS and dividend income we are at 8k a month. The key is no debt. Also, I was a machinist. My wife was a stay at home mom to our adopted daughter and we had a 529 to pay for he college. It can be done folks. It takes a long term.plan and sacrifice.

I don't know about everybody else but, I wonder how people didn't see their situation coming.

Like you said, it's an incomplete picture. The money may not even be invested, just sitting there in a cash account.

My thoughts would be to contact the NAPFA, or call around and see about finding a CFP or CPA that specializes in personal finance and see about getting an hour of their time.

Sell the house, find the cheapest apartment in your area, live as frugal as possible. I mean, $12K turned into $20K in just 2 years, that’s a pretty big ROI. There’s no easy answer.

I hope the video subject is actually investing the IRA and not just contributing. Which sadly can occur. I’m also unsure if they need a Roth over a Traditional. Traditional will give them an immediate tax break. Yes they will owe taxes when withdrawing but their income/tax bracket may be much lower then.

I've heard of a few people who can live on social security by leaving USA and moving to another country where the living costs are significantly lower.

Great ideas Erin! I would just add the idea of keeping the $34,000 invested with the hope of doubling her money in 5 years. I would suggest 50% in SPY and 50% in QQQ. It won't change things in a big way, but it would likely add $250-300 per month in extra spending money by age 74. Then move 50% into a t-bill ETF, and keep the rest invested in SPY and QQQ. The top holdings in both ETFs are the same, but they do provide ample diversification and the companies are among the best in the world.

You do realize that when you say you can invest small amounts like $100 a month for 50 years, the amounts aren’t really small. To have that $700k after 50 years that you mention, the woman would have to have started saving $100 a month in 1974. So you realize that’s the equivalent of $600per month today…. Or saving over $7k a year. Let’s not pretend that’s small.

When your ex-wife cleaned you out and then got alimony for eight years after the divorce, the only way to save or invest is either give up food or your micro apartment. I haven't seen any of these videos that address the cleaned out divorced man.

Being that our balance $ is more than 3x the median balance for people our age, and the fact that I have no debt, paid off home and no car payments, it gives me more confidence to pull the plug and either retire, or drastically slow down before my target retirement time frame which is before the end of 2028; I’ll be 59.5 years old by then.

My wife and I were planning, and considering a financial planner. The 3-4 we spoke with told us we were about 3-5 years out from needing a financial planner. They mentioned that once we are debt free and have between 150k-250k, (debt free is our current goal including-Mortgage, Cars, Student Loans) then we should/could be ready to include a financial advisor into our plan. During the current phase of becoming debt free, there is not much need to involved an advisor.

If the person is working and 69, they should sign up for Social Security, or wait until they max it out at 70. There is no earnings penalty after 67, so that is the money they will live on. The $34,000 isn’t a retirement fund anymore, I would call it an emergency fund and stick it in a high yield savings account. I have one at 5% and one at 4.35%. That’s not a bad return for a 70 year old. Anything with a higher yield is going to be more risky and not amount to much anyway. I did the roommate thing when I was younger so I could save up for my own house. I could see finding some other older people that would pay me rent, but I am wavering between keeping, selling or renting my house. I live on the west coast and could move back to the Midwest and buy a house or condo for a fraction of the equity in my current house. Rents are cheaper too. If the person in the example already was in a lower cost area, then renting out rooms would be the way I would go. The 3% mortgage can pay off with renters, or if they had enough in savings dividends to cover the monthly expenses which is my case.

I'd say hard no on reverse mortgage. The big question is how much does the person make today vs his expenses today. That's the key. The person has less than a year before having the ability to max out on SS. Those numbers are important and it's available for them since they're already 69. Also what's left on the mortgage? There's so many questions that determine next steps. I'd definitely get a roommate as well.

We had a maintenance man that said he was going to fly to vegas, put it on the black line of the roulette table and see if he was eating soup, or steak for the rest of his life...

34G?? That's my comic book fund!

My advice fir this person is probably "find an easy job which you find rewarding; build your social network and joy in life around this job". In top of your advice, they might have a decent remainder of their life, but I do not think that they ever can retire very comfortably unless they have done some other things right along the way already, and I am not confident that they did.

Interesting that this amazing rate of return, one that would impress the likes of Buffett, Lynch, Munger and Templeton, is lower than expected. I'm with you that this should be treated more as a savings---particularly in light of getting so lucky on whatever investment this was---and get in into something more stable.

Also important to make sure you actually invest the money you put into your roth IRA and not just transfer the funds in the account.

Yes it is possible, as long as you have a 9-5, 5days a week with possible overtime. The. You can retire with 34k only. ✌️

Retire to Thailand

No problem. Invest $34,000 in an index fund when you're 18 years old. :)

70 years old, mortgage payment and 34k in savings? They need help from family. If they don't have family they will have to continue to work as long as they can. I would put the money in a safe secure spot (Bank CD - that sort of thing) as they aren't going to make enough to make a difference and they can't risk losing a penny. Tough spot to be in.

tiny home living might be helpful

I thought reverse mortgages were bad deals.

She is only one year at most from max benefit. I would continue working until I had the house paid off. Use the 34k as emergency fund. 2k a month should be fine with a paid off home.

Give this almost 70 year old woman grace in her ERA Social Security being deducted from her check should have covered her expenses in retirement. Splitting bills was a good recommendation but many seniors these days live in Portugal, Thailand or Mexico where living cost are drastically lower. 34k may not be a huge next egg but the average retiree doesn't have 500 or 600k live financial planners and youtubers would have you believe actually its more in the 150-200k range. She could even work partime while collecting her SS so retirement is definitely possible she just needs to get creative also her money doesn't need to last as long now than if she were younger

Scheisters...nice. You don't hear that word often.

Well explain thank you for bringing up this video Financial education is indeed required for more than 80% of the society in the country as very few are literate on the subject. Regardless of how bad in the economy I still make 140k from my investment of 35k Thanks to Kelra Watson for her helpful guides

Putting $500 into a Roth for a couple years equals $12000. She has $20000, that's a 50% annual return!!! Either she's scamming or she doesn't need an advisor.

The 69-year-old should check if they have any forgotten 401ks or pensions from previous employers. I think there are ways to search for forgotten retirement accounts now. Even small 401ks or pensions would help in a situation like this.

At last a video for all of us ❤ (real people) 🙋🏻‍♂️61 year old with 35,000k My wife has 30,000k This video is really helpful for us, THANKS 🙏

So the statistics on Men and Women having no retirement savings.. does that mean they also have no pensions? I’m kind of thinking that part of this group might have a pension and never saved extra for retirement. Just curious as I can’t tell. A quick bing search has 22% of Americans with a pension

I always see the average retirement income and I wonder if this is current numbers. When I check my Social Security it shows my full retirement is $3,084 a month and even better, a delayed amount of $3,897 a month if I wait until age 70. That has always been my goal, to wait. I don't know how someone lives off of $3,084 a month, even with a paid off house and no debt that seems not too realistic.

Grind your way to your fire coast number then start to relax. Hit mine, starting to learn how to spend more money now. It’s an easier goal than normal fire and not super crazy.

The problem is $100 per month today has the same purchasing power as like 20 bucks 50 years ago due to inflation. Investing $20/month starting in 1974 would have made you $500k. Not a small amount but not $1 million. Point being: Adjust your savings up with inflation.

Yes. It doesn’t seem this person understood that once you put money into the IRA or 401k, the next step was to invest the money. They’d be best investing in an Index fund. Roommate or two is a good idea. Also working and continuing to invest. They need to become more financially educated. Don’t forget when it says they get XX amount from Social Security that you have to subtract their Medicare premium from that amount to see how much they have for living on. Medicare premium is approximately $250, so if they’re entitled to $1500 from Social Security, they actually only get $1250 monthly for living expenses once the Medicare premium is subtracted.

I would pull my social security at 70 work as long as I can and move to a country that is very cheap like the Philippines or Thailand where the dollar is strong and enjoy the rest of my days.

This was the exact purpose of Social Security. People who are saying she should have been investing just $100 a month a long time ago need to realize that, if she was working, she already was contributing about that much to SS each month. In my area, it's not uncommon for people to retire solely on SS, and as long as the rest of their debts and expenses are in order, that's usually enough. My mom retired with $0 in savings, and 15 years later, she had over $60,000 in the bank.

Thanks for this video. The unfortunate reality is that retirement is not possible for this person. They need to continue to work as long as they can and as much as they can, saving every penny. If they have to retire, they should move to a country with a very low cost of living, so their social security is enough for them to live off of.

I would invest till 75 and then see if I could just work part time and enjoy my last years.

That is scary. This is when you hope he/she has a family. If they do have 2000. coming from SS I might think about renting out the house and moving to Panama or some place you can have a higher quality of life on much less. If you like it come back and sell the house toss the extra money in High-yield savings and enjoy life.

That person didnt plan for retirement so he or she doesnt get to retire.

No

contrast all those channels with CNBC Make It, which overly concentrates unrealistic expectations. My math must be off, because the questioner said $500/mo RIRA and a year later it is only $20k from $14k, so only made $7k. $500/mo is $6k. $20k-$14k=$6k. Impossible to make $7k when the difference is only $6k which is the amount you put into the account. If RIRA's only gain is the $6k you contributed, not sure what kind of assets the person has invested in the RIRA. Person has to have income to contribute to RIRA, so that isn't soc sec. Can't say much because there is so much information missing (which is the problem with these types of questions) except the person needs to learn basic math and then pay a flat fee financial planner not a financial advisor for a couple hundred dollars.

Must be a slow day

Investing $500/mo for 2 years is $12k invested. Having $20k means the portfolio has done well.. Why does this person think they should be "way ahead" of that? I think managing expectations is important, lest you go and take riskier routes that borderline on gambling to achieve the returns you think you can achieve.

That is just sad

Wait - Golden Girls was one of your favorite shows? Lol. Aren't you early thirties? That show was off the air before you were born! I'm 45, btw.

too late to grow money of this small amount, Enjoy yourself and spend it all. have a small emergency fund of 5k. If you have equity in the home. sell and downsize with no mortgage on next property or rent.

Of course its possible! You just need a 500% return rate...

Why exactly is having a withdrawal rate and having a decreasing number of shares over time recommended rather than just receiving dividends?

These comments must be from young people everyone keeps saying what older people should have done years ago all the investment opportunities were not really available to the masses till I think around the 80s before then there were no Roth or regular IRAs or 401k no stock options not very many mutual funds they sure didn’t have target date funds and what was available was only for the highest ranking members of a company or for people who already had money they didn’t have financial advisors for every day people they didn’t have fractional shares you had to buy usually 100 shares at $100 to $200 just to buy and then the same to sell so dollar cost averaging was impossible back then most people before the 80s had pensions that they relied on and there house if you had a little more money then people would invest in CDs and life insurance policies and that’s about it that’s the reason why a lot of older people don’t have a lot of money saved or investments today

$20K after investing $500/mo for 2 years is a 47% annual growth rate sustained over 2 years. And this guy is complaining…

that person's question is the same as "how can i get rich quick?"

No financial planning or investments will save this person. They need to find a spouse who worked, saved and invested all of their life. It's unrealistic to think that this person won't have an unexpected expense or illness that would wipe out any gains.

Why is she wasting money on a Roth when she could be getting a tax deduction for a regular IRA

pretty rad hair today.... I like it...