Style Switcher

Predefined Colors

7 Biggest Retirement Planning Mistakes People Regret

we all look forward to retirement it's the time to sit back relax and enjoy the fruits of our labor unfortunately whatever aspirations we may have for our golden years can quickly turn into a nightmare if we make certain mistakes when planning for this phase of life these mistakes are surprisingly common and tend to lead to financial stress and regret with a big impact on quality of life some of these mistakes are 1. not planning for retirement two retiring too soon three relying too heavily on Social Security 4. underestimating health care costs 5. failing to save enough for retirement six taking on too much debt seven not maintaining strong relationships if you want to learn more about these mistakes and how to avoid them subscribe to the channel a new video is coming soon and you won't want to miss it.

As found on YouTube

Home

Read More

F.I.R.E – 6 Uncomfortable Truths we discovered about Early Retirement & how to mitigate them

foreign hey what are the ugly sides to 
retiring early um aren't you bored every   day just lying around doing nothing don't 
you guys worry about running out of money hey guys welcome back to another beautiful 
day here in Paradise Bali many of you have   been asking me so many questions like the 
above so today I'm gonna run through six   uncomfortable truths about early retirement 
as well as my suggestions for mitigating them   based on our own experiences reaching fire and 
being retired here in Bali Indonesia for the   past two years so uncomfortable truth number 
one retirement is a journey not a destination   for the record lying around all day doing nothing 
in retirement is a myth it's always nice to have   a few days of that here and there but in reality 
you do that for long stretches of time and you're   probably going to be hit very very hard with 
feelings of boredom lack of self-worth and you're   gonna be missing a sense of fulfillment retirement 
isn't a destination like Bali or Boracay it really   is the start of a New Journey in your life it's 
that stretch of time where you finally do those   things you wanted to do but always couldn't 
because you were so busy making money to   survive it can be anything traveling the world 
finally writing that book or studying that say   cross stitch side hustle if you never get past the 
myth you'll probably end up getting bored and then   end up going back to work and missing out on this 
Amazing Life Adventure so like every other journey   start planning what is this epic adventure you 
want to spend your retirement time and money on number two if you got bored during your 
retirement stuff maybe you're doing it wrong   so for a lot of people their retirement Jam 
is about traveling the world right that's a   super common one and it's amazing fun you never 
feel more alive and it's such a great challenge   because actually you need so many different skills 
to travel properly right you need Street smarts to   navigate the towns and scams and other issues 
on the road you need to be able to plan your   itinerary book the best travel deals know how 
to haggle your prices not to mention stuff like   riding a motorbike and scuba diving and at the 
start it's always epic it's so incredible but on excitement and sense of achievement starts to 
plateau and then you're gonna hit that point   of diminishing returns and it wasn't just 
in travel either it was also my painting my   businesses my surviving The Nomad life thingy I 
find that when love to remain largely undirected   most Pursuits actually tend to lose their flavor 
with time another way of putting this is perhaps   you feel yourself falling into stagnation or 
mediocrity thing is if you're early retired on   your own efforts then you're probably more of 
the go-getter and achiever type of person and   the aspect of your personality doesn't 
change just because you're tired you'll   still be looking around and judging if you're 
spending your time meaningfully and productively   to this fix personally I found two solutions 
that worked really well for me one either I   start drilling deep down into the details of 
what I'm doing or two I make it into a business   take my dad baking is his great love in retirement 
but he's not just begging anyhow for the fun of   it the last few years he's in pursuit of baking 
a tastier sourdough bread anyone has ever come   across out of 365 days in a year he is probably 
baked about I'm guessing maybe 400 sourdough   loaves two loaves each bake he tweaks the recipes 
the starter the technique the ingredients he does   some reverse engineering of sourdough bread that's 
commercially sold outside it's been maybe three   years and he's still going strong so he set his 
own special sourdough bread goal and Target and   standards instead of just serving and yogurting 
for fun I became qualified instructors in both   and eventually started both a yoga business and 
a surf school and you know I learned so much   more about both in the whole process whatever 
Pursuit out there if you start really drilling   down there's always more Improvement to be had 
more personal growth to pursue please say you love   Pottery don't just do it aimlessly to pass time 
polish up your skills enter competitions become   a professional Potter do commissions as your 
retirement side hustle or teach pottery classes   when you keep pushing yourself to those higher 
standards because you're either really drilling   down into the craft of it or you're running it 
as an Enterprise you'll find new measures of   productivity therein and you will be bored not to 
mention if you're actually like us on lean fire   whatever site income you generate will help defray 
the cost of your interests and hobbies so you   don't need to tap on your long-term Investments 
isn't that a really good deal so two years ago   at the age of 38 I retired with my husband here 
in Bali it's pretty early by most standards and   it's been a completely amazing journey we've 
learned a lot and I hope the insights we are   sharing with you guys are useful if you're on 
your own fire Journey or already neck deep in   retirement smack that like button share with us in 
the comments below what your retirement looks like   so far how you're keeping busy and whether you 
agree or disagree with the points we made here   now on to the third uncomfortable truth it's 
hard that you must defend your time you probably   retired so you can spend your time doing however 
you please whenever you please most of us will   have spent the vast majority of Our Lives 
thus far making a living which means usually   someone else is directing your time either your 
boss or your clients and we get really used to   that so then in retirement self-directing your 
time becomes something new and kind of foreign   and if you look at retired folks in Singapore 
after working jobs that entire lives most of   them graduate on in retirement working as free 
child care services for their grandchildren   if that's their ultimate dream and for some 
traditional older folks it definitely is then   it's wonderful I'm really happy for them but 
for some it may not really be that but they   find themselves doing it anyway kind of like by 
default because they're just so used to allowing   someone else to direct their time for them there's 
always going to be people around who will try to   take advantage of your free time asking you to 
run errands for them perhaps or like for us here   in Bali we get so many requests from both people 
we know personally and complete strangers of the   internet asking us to do stuff like plan their 
holidays show them around Bali Etc of course we   love hosting close friends and family and we 
enjoy helping people generally but sensibly   speaking our own private lives would just vanish 
if we were to entertain all the requests we get   you'll need to learn how to say no to people and 
how to strike balance retirement is as much about   sharing your time with the people who matter 
to you as it is about having time for your own   personal growth and development just be aware 
uncomfortable truth number four it's probably   gonna be just you and your significant other from 
now on out so upon retirement your social scene is   going to change drastically everyone else is at 
work or busy with their own stuff you're either   gonna have to learn to enjoy your own company 
a lot or if you're lucky enough to have retired   with your significant other that's who you'll 
probably be spending majority of your retirement   with so best learn to get along companionably good 
communication is key as it's just generally being   a considerate and respectful human being through 
the pandemic and on the road this past decade   I've seen so many people who seem really surprised 
by the person the other half truly is when they   start retirement and start traveling together 
24 7 a day but building that Comfort to do   stuff by yourself and building that wonderful 
relationship with your other half can also   possibly be the most rewarding part of your 
retirement journey and your personal growth   before I share with you the fifth uncomfortable 
truth just the quick word from our sponsor of   today's video MooMoo Singapore the stock 
market is historically one of the most   popular ways to be invested I myself hold 
a select number of U.S Blue Chip stocks and   ETFs and for over 10 months now I've been using 
the MooMoo Singapore platform the mobile app is   intuitive fast easy to use I get free real-time 
data and even level 2 quotes plus the super   competitive commission costs including trading U.S 
stocks with zero commission saves me so much money   for a limited time now new users of MooMoo 
Singapore get a Kickstart with the investor   starting kit worth up to 2086 dollars when you 
sign up and deposit a hundred Sing dollars into   the moon Universal account will neutrals in two 
Sing dollars cash buy every day for the first 10   days that's a gift of 20 Sing dollars absolutely 
free on a deposit of a hundred dollars or more   deposit two thousand Sing dollars and perform 
to buy trades you'll receive one free Coca-Cola   share with about 80 Sing dollars if you deposit 
ten thousand Sing dollars and perform seven buy   trades they'll give you a 108 Sing dollar Cash 
coupon no questions asked I strongly believe that   in today's day and age to be financially capable 
necessarily means one must be putting the money   to work for them in one way or another so why not 
take advantage of these offers right now for more   info click on the link in the description below 
uncomfortable truth number five your money plans   are never as foolproof as you think all retirement 
whether it's the regular kind or fire really all   boils down to the financial planning behind it 
right and the most uncomfortable truth of all   may be that your retirement funds are never 
as foolproof as you plan for especially if   your plans are supposed to spend 30 40 even 50 
years in the case of early retirement expert   predictions and assumptions go wrong you made a 
mistake in your portfolio planning because of all   the buyers that we all carry Bear markets happen 
blacks on events gray Rhino events so many things   no matter the plan no matter how much stress 
testing you did before you dove into it the   unexpected often happens and the sooner you come 
to terms with this uncomfortable truth the sooner   you can move on to hatching against the risks 
You can predict most retirees they're working   their financial planning and less Aid around 
the four percent drawdown rule right so the   U.S stock market has had a phenomenal Run for the 
last 10 12 years or so now of course things are   looking a little different for the foreseeable 
future so those who have been conservative and   who have refrained from tapping their long-term 
investments will have more breeding space now   to ride out this bear Market however long it may 
last friends who have been following our journey   for a while now know that a dominant portion of 
our retirement here in Bali consists of rental   income from a number of real estate Investments 
and unfortunately in the last two years since   we started retirement Europe is a game at War 
soaring Energy prices have driven up the cost   of living across the world and everywhere massive 
inflation is now a huge issue thankfully we have   so far managed to resolve whatever disruptions 
we've experienced but basically yet another   uncomfortable truth in retirement is that managing 
your money to make it last till the end takes up   more time than you think don't just go to sleep on 
it continually look to diversify the eggs in your   basket and be open to adjusting your money plans 
like rebalancing your portfolio or changing how   you invest your retirement Arsenal as different 
opportunities present themselves for time you may   not need to work for money any longer but doing 
stuff that fuels your personal growth and that   generates some extra side income as a bonus is 
never a Bad Thing uncomfortable truth number six   no point sweating the small stuff y'all know I'm 
a big fan of simple frugal living and no pretenses   whereas happy dining in a fancy restaurant 
as we are eating at the local War rooms here   sometimes more happy actually but many of us 
can also easily get carried away diving into   with the itsy bitsy details of frugal living you 
know spending two hours here looking up deals and   coupons that end up saving you 10 bucks three 
hours there figuring out how to maximize your   air miles should you lock in that 3.5 fixed 
deposit rate now or wait till next week where   maybe it might be 3.7 I mean it can be fun 
and then it can also be a lousy use of your   time you can do it if you enjoy the challenge 
just know that so long as you get the big stuff   right your retirement is probably going to work 
out just fine so don't sweat the small stuff   big things include stuff like keeping on top 
of your overall General expenses you know doing   your taxes right maintaining a balance then 
Diversified portfolio so as long as you keep   on top of all of that I think that's about 95 of 
the big picture really conversely what I'm also   saying is that if you blow up your retirement 
finances by for example trying to go big or go   home on crypto no amount of coupon cutting is 
gonna save you from having to go back to a job   so yeah that's my take on not sweating the small 
stuff we're all retire at some point of Our Lives   whether early or late voluntarily or unwillingly 
it all boils down to choice and advanced planning   just what I've personally observed is that if 
you cut out all the noise and distraction in   life what do you think are the real currencies we 
truly traded the way I see it is four things it's   money time Youth and health just think about it 
everything we do throughout our entire lives is   really us trading one of these for the other an 
early retirement is that one anomaly where you are   in a position to spend all four currencies at once 
simultaneously and that maximizes your experience   of life a really clear illustration of this is 
traveling you can travel in your 60s and 70s sure   that's what most people will end up doing and it's 
great you know you see these folks really enjoying   seeing new things being very happy but it's often 
in the form of like lots of cruise trips around   the world and that's cool too but they'll never 
experience what it's like to try learning to surf   or sail and getting all salty and burned and 
muscle achy but happily exhausted oh they'll   never try anything more vigorous and adventurous 
like say backpacking your way through Europe you   know crushing in new hostels meeting crazy people 
from Iceland or wherever and doing silly things   together we all have two lives the life that we 
currently live and the life we could possibly live   so then which life would you choose tell me in 
the comments below and don't tell me you wouldn't   retire early because you just wouldn't really know 
what to do that's just a cop-out answer because   yeah well you're too lazy to do the legwork 
and try new stuff and understand yourself   thanks for watching as always speak 
again next Saturday bye foreign

As found on YouTube

Home

Read More

6 Retirement Essentials (Most people only prepared 2 or 3)

I'm planning for retirement most people focus 
mostly on marshaling together enough money you   know Financial Resources so that they can last 
the distance and then maybe at the back of their   heads they have some vague plan right perhaps 
two or three things to fill the time with a lot   of the times this is stuff like travel family 
well unfortunately I'm gonna say that's not   quite nearly enough for Preparation we ourselves 
have been retired for two years and going looking   back on the past two years I kind of see like 
six essential things that if you prep for it   beforehand before your retirement starts I think 
this can really make such a positive difference   to your retirement so that's what I wanted 
to bring up and discuss with you guys today   number one first and foremost of course we have 
to talk about money most people's concern is the   amount of money that they have in retirement 
whether it will last them till the end come   comfortably and allow them to afford the Hobbies 
like travel good food Etc but I actually think   after going through the last two years building up 
our financial Acumen is just as important if not   more so what do I mean by Financial Acumen I mean 
stuff like budgeting tracking projecting investing   I mean if you think about it the money in your 
bank account can always be squandered we all   know that story I think more importantly what's 
going to make your retirement more fireproof is   having an ability to generate more money where 
it came from in the first place so the second   essential thing that you can prepare for so that 
you have a wonderful retirement it's definitely   the ability to be self-directing and disciplined 
self-direction definitely helps so much with   spending your retirement days meaningfully right 
after all there are no more like work schedules   or like demands from colleagues or bosses to help 
shape your days anymore you have to be the person   to take charge in retirement there's a study out 
there actually that shows that for happily retired   folks most of them actually have about 3.6 core 
Pursuits that's what they say and the unheably   retired folks tend to have less than 3.6 corporate 
suits coming in at about 1.9 call Pursuits that's   what the study reflected I guess it kind of just 
shows in retirement you really need to fill your   life to the brim and keep busy with activities 
you love and that is a really great formula for   happiness and self-direction will help you 
to achieve that state as well as discipline   because if you think about it like discipline 
directly affects the state of your finances right   it affects whether you stick with your retirement 
planning whether you keep fit and active and you   get to maintain your health in retirement even 
whilst you're left up to your own devices even   to find your cover suits if you don't have any 
when you're starting or in your retirement so   discipline and self-direction will be like 
the building blocks for enjoying your life   in retirement the third essential thing you might 
want to work on and cultivate or happy retirement   is people skills right so studies and research 
have reflected very consistently that the main   determining factor for happiness and Longevity 
for most of us is actually relationships Human   Relationships friendships relationship with 
your spouse and with your family I guess if   you look at most of us you know we all have 
a little need of work on some social skills   in some aspect I mean some of us are a bit shy 
paper hats or graph or maybe socially anxious   working on our people skills really will help us 
to get along and live happily with our spouse and   family members and also importantly to make 
new friendships at whatever age we all know   that making new friends gets a lot more difficult 
as we get older I mean I haven't heard anyone say   otherwise for me personally making new friends 
as I get older is the biggest challenge there's   this huge feeling that nothing can replace 
friendships with people who have known you   all your life but it is also a challenge as I 
have chosen to exercise through Arbitrage in   our retirement and we've moved away from home 
so those friends aren't with us in our present   I find that it takes a lot of intention I have 
to consciously push myself to broaden my Social   Circles and make the effort to get to know people 
on a more intimate basis I am also very happy   to be able to say that it has paid off in that for 
the last two years in Bali I have actually made   two or three new friends that I'm happy to say are 
kindred spirits and not just social acquaintances   so that's very nice and it's a huge Comfort to our 
daily life here in a foreign land away from home   now before we move on a big thank you to 
Mumu Singapore for sponsoring this video   Singapore is an online trading platform for 
stocks ETFs and options I've been using the   MooMoo mobile trading app myself for almost 
a year now and I think it's awesome it's   fast intuitive trading US Stocks is commission 
free plus they give free level to data and many   more perks now for a limited time when you open a 
Mumu Singapore Universal account they'll give you   a year of commission free trading of Singapore 
stocks ETFs and reads if you're trading us and   Singapore stocks just switching to the MooMoo 
app will save you so much money already when   you deposit at least a hundred same dollars and 
start using the mobile app to trade you stand   to receive cash coupons up to 128 Sing dollars 
and even a free Coca-Cola share worth around 87   subscribe two thousand Sing dollars or more into 
funds on the MooMoo fun Hub and MooMoo will give   you cash coupons up to 150 Sing dollars subscribe 
at least 100 Sing dollar us to Momo cache plus   and they'll throw in an additional tensing 
dollars cashback altogether that's 368 Sing   dollars worth of Welcome rewards absolutely free 
just for using the Momo app so if you're actively   investing anyhow I recommend checking out the 
MooMoo ad using my link in the description below   now back to the video the fourth essential 
thing that you can definitely work on and that   will benefit your retirement tremendously it's 
actually courage you're definitely gonna need lots   of courage in retirement and I guess this isn't 
a skill exactly it's kind of more of a quality   but in retirement you need a lot of courage 
to even plunge into retirement you need the   courage to you know take that leap of faith to 
stop putting it off due to fear of the unknown   feel or financial insecurities so then it's all 
about courage at that stage not let fear and   insecurity rule your life and your decisions it 
is also the courage to recognize that in life at   the start at the end in the middle the Domino's 
you need are never all nicely lined up you know   at some point you just got to jump into it and 
then learn to cross the obstacles as they come   so for retirement long term I guess the 
biggest issue most commonly is always money   but my perspective on this is that hey budgets 
can always be reduced money can always be earned   or recouped or whatever happens so I still 
think that you know it is actually beneficial   to Advocate an approach whereby you get to 
a point where you feel that you have most of   your Ducks lined up you've planned well you've 
prepped for it grab hold of your courage with   both hands and then take the plunge people tend 
to think of retirement as the end but it's not   it's the start of a new phase where you should be 
trying so many new things new Pursuits new ways   to live and for each of these new adventures 
you're gonna need courage to take action and   once you have taken the plunge you'll find the 
next fifth thing very very useful and that would   be a mentality of resilience especially in early 
retirement there are a lot more decades ahead of   you you know and therefore a lot more chances that 
they things can go wrong whether it be down to bad   financial planning or perhaps an unexpected Health 
catastrophe or even sometimes natural disasters   whatever comes I guess you will always need that 
strength of Will and the resilience so that you   can roll with the punches and then get back up 
you want to know that you have the mental strength   that even if things go pear-shaped you won't just 
give up and lose hope and certain Corner you've   got to Marshall what you've got inside you go out 
there find Solutions perhaps if necessary you've   got to go back to work but know that later on 
you can return to retirement and try again so the   sex essential thing that I believe will benefit 
everyone in retirement is to cultivate an attitude   of gratitude we all know life is a very long 
journey hopefully at least and so much of what   we Chase using most of our years actually doesn't 
really matter in the big picture once you have   taken a step back and then at that point is when 
you start realizing the earlier you cultivate and   attitude of gratitude and that appreciation for 
the simple little things that are probably around   you everywhere every day the happier you probably 
will be and it sounds silly but it's not really   automatic I mean we all live and grow up and 
work and go to school in a society that kind of   innovates us with messages that we need to reach 
for more have more ambition gives us you know that   High definitions of success in life that we 
have to try to jump to reach and nobody sings   the Praises of the pleasures of a simple cup of 
tea you know the importance of family time with   your loved ones or or just the pleasure of being 
able to take an evening walk on the beach with   your dog so I think that it's very important that 
somebody reminds you that you know you can not   overload what you already have what you're already 
surrounded by growing that muscle of appreciation   so that in each and every moment you are present 
in your own life you see all the little Joys that   you're surrounded with every day and if you 
live life like that I think that will help   you achieve contentment with just the small stuff 
around you and that's what majority of your life   in retirement may be about is just a small stuff 
every day but in my own retirement here in Bali it   is what makes me so grateful and so happy every 
day that I am surrounded by my loving husband   and very interesting and independent little dog 
that's very very cute you know that we have very   comfortable a bit simple house we have the ability 
to enjoy good food even if it's simple stuff   from the war rooms locally we have a garden and 
beautiful things are growing around us every day   the weather is great you know stuff is good yeah 
I think this is one of the most essential simple   things that's often overlooked simply because it's 
a matter of mentality but I believe this essential   quality or characteristic could make all the 
difference for you so these are the six essential   things that I believe are very very important for 
you to cultivate and prepare for in the leader to   actually taking the plunge into a return then I 
think that if you have these six strong skills and   qualities going for you you will be in a position 
much more well placed to make the best out of your   retirement however long that period may be let me 
know what you think of my suggestions whether you   agree or if you think they suck let me know why 
but in any event I really appreciate you tuning   in and sharing my thoughts for this week and 
wherever you are in the world I'm wishing you   a happy Saturday evening and let's speak again 
next week till then you take care and bye for now

As found on YouTube

Home

Read More

Retired at 38: 5 strong reasons to retire as soon as you can (Retirement Planning)

so early retirement has actually improved our 
health so much that I actually think we'll be   avoiding higher health care costs down the line 
that may actually lead into our retirement funds   and then early retirement has also allowed us 
to achieve a state of intuitive living which   has been absolutely awesome financially the 
conventional wisdom is that early retirement   could potentially be disastrous but frankly 
I think so far two years into retirement that   our early retirement has been great for us 
financially these plus two or three more are   just some of the very strong reasons why I would 
Advocate that anyone considering retirement should   do so as early as possible let me explain why 
down below hey I'm Jean and for the past two   years I've been retired in Bali Indonesia 
with my husband today I wanted to discuss   about all these reasons why I think retiring 
as early as you can is a brilliant idea [Music]   so Health basically don't wait till it's too late 
I think that when most people think about health   and retirement planning they just kind of hope 
and assume that they will be in good health when   they enter retirement and then that they pray it 
remains status quo until the end but I guess most   of us pre-retirement might be involved in jobs 
that might be high stress with long hours at   the desk and then naturally Fitness just isn't 
what ideally it should be so all my life I've   been struggling with skin rashes and allergies and 
these issues tend to pop up every time my immunity   gets low because I'm stressed I'm tired I'm taxed 
but truly in the two years since we have been   retired the manifestation of all these problems 
have just gone down so much in retirement mode   I'm happily keeping very fit doing all the things 
that I know of like surfing walking the dog with   the hubby eating better overall probably further 
down the line maybe I might be avoiding higher   healthcare costs having this health is actually 
so much wealth it allows you to live life to the   fullest because frankly all the stuff that you 
want to do in your enjoyment of Life probably   involves a lot of Health you want to travel 
you want to scale that mountain at Sunrise to   see that incredible view you need your help even 
just to enjoy good food if you like us you like   to eat you need your health I mean I know so many 
people who have dietary restrictions because of   high cholesterol or diabetes improving health is 
actually one of the biggest and strongest reasons   why you should retire early so the second big 
reason for wanting to retire ASAP is actually   intuitive living basically intuitive living is 
really connecting with yourself and listening to   your garden stings and your feelings as to stuff 
like eating and rest and meditation relationships   even your spending habits perhaps I don't know 
how it is for you guys but I was generally living   my life governed by a lot of shirts right I 
mean I should be at the office by 9am so that   I won't piss off the bosses I should stay in 
the office stay late and postpone my workout   postpone dinner so I can meet the deadline set by 
my clients I should carry branded Handbags and of   course I should be a corporate lawyer I mean why 
would I want to be anything else right finally   in retirement we are free from the demands of the 
pursuit of money to listen to ourselves to truly   tune in and understand what is the optimum cause 
in life you can chart you really want to wake up   every day without an alarm clock naturally because 
you've had enough sleep you want to eat only   enough and not too much I mean you want to make 
better choices food wise intuitive exercise you   know you're doing what really only appeals to you 
maybe you don't like sweating in the afternoons   so then you know get a gym membership or play 
indoor record Sports whatever works for you I   only wish that more people have the opportunity 
to experience living life this way intuitively   away from the entanglements and distractions 
from regular running the hands the real life   the third reason why you might want to retire 
as soon as possibly is just that the earlier   you retire the more time you gain in life I 
mean if you think about it most of us live   life as though we are invincible as if life 
itself will never run out and therefore we do   things like squander our time or sell it away too 
cheaply in exchange for material things we each   only have so long to live right and the money you 
make in your lifetime you can't bring that with   you when you go home so well might as well you'll 
be the one to spend it when you can right Society   feeds us like so many different narratives 
about success and what it should look like   but actually I think success is really not 
about the achievements per se but it's just   really a Feeling and I like to think that at 
the end of our Lives when we're there in our   last dying moments what we'll be thinking 
about probably wouldn't be like stuff like   oh I closed that three billion dollar deal I 
think it would more be along the lines of like   I had good friends and I loved my family I had 
a good life you know I ate good food I laughed   Lots I took care of my kids and my dog stuff like 
that so don't squander the time that we each have   maybe you have personal goals that you really 
want to achieve stuff like learning Spanish or   scaling the Great Wall of China or just 
watching your kids grow up that's just a   million places that are better to spend your 
time at then at a job which you don't really   particularly care for and which maybe you're just 
doing just cause that's what everyone else is   before we move on a big thank you to 
skillshare for sponsoring this video   so skillshare is an online learning community with 
thousands of classes for anyone who loves learning   if 2023 is the year you promised yourself 
you're gonna finally explore new career or   side hustle options or work on personal growth 
then skillshare is the perfect place to start   for me one of the ways we have fun in our 
retirement is making YouTube videos when we   first started skillshare was instrumental 
in teaching us so many of the basics like   videography storytelling and more till today 
one of the best classes I ever sat through   online anywhere is still the class by Sorel Amore 
YouTube success build an authentic Channel that's   worth the follow so her advice about finding my 
Niche valuing authenticity over Beauty creating   meaningful messages and providing value to the 
audience really changed our perspectives on what   we were creating back then for the better of 
course we've gone from like 40 Subs to the 143   000 Subs of today and from time to time I still 
pull up sorel's worksheet when I'm creating   my videos just to check that I'm on track for 
making something good for our people our audience   it's always super easy to take whatever you learn 
on skillshare and apply it directly to your life   Pursuits whatever those may be I highly recommend 
checking out skillshare and if you want to do that   you can use my link in the description below the 
first 1000 people will get one month of skillshare   absolutely free you can try it out learn something 
new move a step closer to your 2023 goals reason   number four the earlier you start your retirement 
the better you'll get at it with every other   change in life we expect that we all need time to 
learn how to do it well so things like becoming   apparent for the first time even if like us it's 
just a fur kid or transitioning from being a   student to being a working adult and then there's 
the transition from being and actively working   adult to retirement mode it seems ridiculous and 
silly even at first I mean it's like saying who   doesn't know how to spend their free time right 
but if you actually truly observe things around   you retirement Falls really differently for 
different people we all know the people who   have retired and in their retirement seem a 
little lost lonely left behind and uninspired   and then there's the other kind of retired people 
right the ones who go like when we're talking that   I'm gonna grab Life by the balls and Max things 
out a big part of that may actually be the point   in life at which you retire whether at that point 
where you retire you still have your zest your   Zeal your energy your health your Fitness to help 
you max out the happiness potential of that free   time and freedom in retirement and then there's 
the thought that retirement supposed to stretch   out for a few good years at least right if not 
for a few decades and doing that requires skills   you know you need so many different skills to 
have a successful retirement I think that's a   topic for another day but basically you need time 
to learn those skills whether it's Financial money   management or social skills you know building 
relationships and stuff but basically you need   time to get all that down pat in order to have 
a successful retirement so then the earlier you   retire the better usually you will probably 
turn out for you so the last and possibly the   most controversial point I think that early 
retirement could possibly be great for you   financially and this is controversial because it's 
directly opposite to what a lot of the experts say   right you retire too early there's so much risk 
that you miscalculate your finances or that world   events take an unexpected turn and then you know 
things go belly up and then you're destitute in   your last years but I mean underlying all that 
seems to be this assumption that in retirement   we're all just going to be like one dead lazy log 
and I think that these days especially if you're   an early retiree that is just so not true maybe 
like us with YouTube in our retirement in your   own retirement maybe you'll learn new skills pick 
up new side hustles and stay busy doing something   that you're doing for the love of it for the fun 
not for the money but having the money come in as   a result of your side hustle is a nice bonus and 
you know what it becomes an additional buffer for   your later years so retiring early also allows you 
to take advantage of things like dual Arbitrage   Right Moving overseas to improve your financial 
situation and yeah so like us I'm from Singapore   but I'm now retired here in Bali Indonesia we're 
not just here because life is more affordable but   the fact is that our retirement sums in fact our 
whole entire retirement is only possible because   living here is so much more affordable as compared 
to back home you know this wouldn't be possible at   all if we retiredly and ended up having health 
concerns right mobility issues for example   retiring early and then using the time to keep up 
with current affairs learning hedging strategies   to minimize risk learning how to diversify our 
Investment Portfolio I feel that the time in our   retirement has been well spent to actually make 
us more resilient and the fact that we retired so   early also means that if anything goes badly up 
time and youth are on our side if our financial   planning for retirement had just sucked or you 
know things unexpectedly go failure so prepare you   know if we have to U-turn and go back to work or 
maybe start another business it's not a big deal   and then we'll go off Marshall the resources 
that we lack and then we'll come back again   and second time around third time around will 
definitely be better each time at doing this   so in terms of confidence and the feeling of 
resilience that we will be able to make this   last all the way I think that starting 
early doing it early diving into it and   understanding the parameters the potential 
the boundaries of what we face in retirement   actually really really helps well guys so 
these are the few takeaways from our last   two years living in retirement here in Bali and 
I mean if you have any thoughts or objections or   contributions to the points that I've made in 
this video I'll love to hear them let's start   a little discussion in the comments below you 
guys have a good week ahead wherever you are   and let's chat again next Saturday thank you 
for watching and bye-bye have a good weekend

As found on YouTube

Home

Read More

Retire With $500,000: How it Works, Examples

When you hear about retirement planning some 
pretty big numbers get thrown around. But the   reality is that most people don't have one or two 
million dollars set aside. So let's look at what   it's like to retire with $500,000 and what we'll 
do is start with some calculations and give you   tips on how you can run these numbers for yourself 
with your own details. Then we'll go through some   strategies that can help you make that money last. 
Five hundred thousand dollars is sufficient to   retire on for a lot of people and a lot of people 
do it with less.

Now, more is certainly better   but it ultimately comes down to your individual 
circumstances for example the amount you spend   is a big factor and that's going to depend on a 
couple of different things it might just be your   lifestyle but where you live also has an impact 
on your expenses any income sources that come   into your household are also important so if you 
have a pension plus Social Security (full Social   Security benefits) then that's certainly helpful 
if you have multiple sources of income coming   into the household that doesn't hurt and luck also 
plays a role in all of this so it might have to do   with what do the markets do right after you retire 
are they strong or do they crash? Or what type of   health care events come up what conditions do you 
have now and what might arise during retirement?   All of these things together are going to affect 
what your spending looks like to keep things   simple we're going to use some averages from the 
BLS the latest data available is roughly $48,000   per year that a household over age 65 spends 
but ultimately this needs to be useful for you,   so you can take the concepts that we talk about 
in this video and then overlay your own numbers   into the calculators that you're going to have 
access to, and that way you can get a decent idea   of what your retirement might look like.

It's also 
helpful to know that your spending can change over   time during retirement for example some people 
talk about the go-go the slow-go and the no-go   years. So your go-go years are right after you 
stop working you're young and healthy and you're   eager to go out and do all of those things you've 
dreamed about doing but you might start slowing   down some and eventually you get to a point where 
you don't want to sit on an airplane for eight   hours and your health care costs start to rise 
as you spend less on leisure and entertainment.   Another big piece of all this is any retirement 
income that you get so that's Social Security   or pensions and Social Security is a big piece of 
retirement income for a lot of people in the u.s   so we're going to lean on that as we go through 
this if you have roughly $500,000 saved for   retirement then we're going to assume that you get 
a bit more than the average here because you've   had the earnings and the work history to help you 
save some money your age also affects how much you   get from Social Security, so that can impact 
your plan you really want to do some analysis   and make some decisions keeping in mind that you 
may have beneficiaries who might take over your   Social Security benefit.

By the way, I'm Justin 
Pritchard, I help people plan for retirement   and invest for the future. So, in the description 
below, you're going to find some resources on this   topic, and I'll include some links to calculators 
that you can use to run your own numbers.   So we'll start with a single person example 
and then get into a couple, and these are over   simplified examples but the important thing is to 
paint the picture of how things might unfold and   show you how you can run some of these numbers 
yourself. We looked at some of those statistics   on spending and if you're going to retire with 
$500,000 in assets unless you have some really   great retirement income you're probably not going 
to be on the high end of those statistics so we'll   assume somebody here spending about 45 thousand 
dollars per year going to get 2 000 a month   of Social Security income so we'll put those 
numbers into our handy calculator here 45 000   of spending or income we're going to ignore 
taxes for right now but we'll get to that later   and she gets 2 000 a month in Social Security that 
leaves 21 000 that she's going to need to withdraw   from savings each year now you can play with an 
inflation rate and of course inflation is higher   right now the question is will it remain high 
for the rest of your life for the next 30 years   or something that would be interesting if it did 
so I'm just going to go with this for right now   and one year away from retirement let's 
say five and a half percent returns   both before and during retirement and 25 years 
of life maybe 30 years of life if we look at   the calculations there this person needs about 
457 000 so depending on how much she has if you   already had 500,000 you might be all set however 
again this is an oversimplification so we have   ignored taxes let's assume that all of that money 
is in a pre-tax retirement account you're going   to have to pay some income taxes when you take 
withdrawals so one way to look at that is just to   increase again this is an oversimplification but 
you might say let's call it 50 000 and assume   roughly 5 000 in taxes each year and what might 
that mean well that might mean you need an extra   65 000 above the 500 000 you're thinking of 
another issue is that this assumes flat returns   each year and the fact is that you're never going 
to get exactly five and a half percent some years   you'll get five, some years you'll get six, some 
years you'll lose money, some years you'll earn   more, but they typically don't go in a straight 
line so we have to wonder what would happen if   you have bad timing for example if there's a 
big market crash right at the beginning of your   retirement.

To help paint a richer picture 
of that let's look at a financial planning   program that's a little bit more robust so this 
is saying that she might have roughly a 50-50   chance of success and I've got some tricks to 
improve that but just for starters that's more   or less a coin toss so what does that mean 
if there's a 50% chance of success this is   a Monte Carlo analysis and so what happens is 
we might say that you get a thousand different   hands of cards.

Some of those are really good 
those might be the ones up here that leave you   with a lot of money at the end of your retirement 
or the end of your life some of them are really   bad and you would run out of money early and in 
roughly 50% of these cases you end up just making   it you're probably not going to get the best luck 
as you go into retirement and hopefully you don't   get the worst luck but we want to be able to 
account for a number of different ranges here so   that if things are kind of bad or pretty bad that 
you have a decent chance of making it so what can   we do to improve those chances of success one way 
is to adjust spending so if you're flexible then   you can reduce what you spend in years when things 
are really bad or you might even look at something   like the retirement spending smile which is based 
on some research from David Blanchett which says   that retirees might spend it roughly inflation 
minus one percent now this has her with a 100%   chance of success which i don't like nothing 
is 100% certain i wish it would stop at 99%   but just by making that little adjustment this 
has dramatically improved the chances but it's   not something you can do on one of those basic 
online calculators just to look at a little bit   more detail on how this might unfold by the way 
this doesn't perfectly match what we looked at   in the basic online calculator but 
it's close enough for our purposes   so they have about five hundred thousand dollars 
here she's going to work for one more year then   that income stops she's going to wait until age 
70 to take Social Security so there are a couple   years there with zero income and then a partial 
year then that full Social Security benefit   kicks in of course it's inflation adjusted so 
it's actually higher out in the year 2029 those   expenses are right around 45 000 when she stops 
working and there's that five thousand dollars of   taxes due so in these first couple of years 
when she has no income she's going to be taking   pretty big withdrawals to support her spending 
but once that Social Security income kicks in   then she can take much smaller distributions and 
that tax bill is going to come down and we can   take a look at that if we look at what her tax 
rate might be this is an effective tax rate so   this takes into account any deductions that you've 
taken, uh, typically people pay surprisingly low   taxes especially if you're at this asset level 
in retirement roughly $500,000 in savings if   you have a couple of million you're going to be 
in higher tax brackets especially later in life   once you start taking those required minimum 
distributions but at this stage and with this   asset level the tax rates can be surprisingly low 
for some people so that was our single example and   now we can look at a couple but I'm not going 
to go through all of those steps again they've   got two sources of income coming in so that makes 
it a lot easier to support higher spending levels   so let's jump over to the quick calculator just to 
see how that looks so they wanted 50 000 of income   or spending they've got 35 000 of Social Security 
coming into the household so that's only 15 000   they need to generate out of their assets let's 
throw on a little bit extra just for some taxes   and other things so we'll keep all of the other 
assumptions the same and it's a 30-year retirement   here they can also make do with less than 500 000 
again ignoring some taxes and bad timing and other   things that might pop up as surprises but with 
a really simplified calculation they're at least   kind of in the ballpark with about 500 000 
in assets of course it's important to plan   for one person's death and that might happen 
sooner or later so you want to look at how   that might affect the household as you're doing 
these ballpark calculations another thing you   can do is look at a withdrawal rate again it's an 
oversimplification but it's a way to kind of take   your temperature and just see if things look way 
out of whack or if they look more or less okay   so in this case we've got them pulling 20 700 out 
of their assets and that's based on let's call it   $500,000 of assets so if we divide that we get 
4.14 percent is the withdrawal rate that these   people are taking the great debate is always 
going to be what is the right withdrawal rate so   the anchor point for a lot of people 
has been a four percent withdrawal rate   otherwise known as the four percent rule which 
is a bad name for it it's really more of a four   percent research finding and that's based on some 
research done long ago to try and figure out what   is the maximum amount that people could withdraw 
in really bad situations with historical data and   pretty simplified portfolios that happened to be 
four percent now if you look at that and you use   a more diverse portfolio it could potentially 
be higher however a lot of people will say that   given today's environment with low interest rates 
and wherever the market is a lot of people think   that four percent is too high this is something 
that people can quibble about for hours on end   so I'm not going to try and tell you what is your 
correct withdrawal rate i actually prefer to do   more detailed calculations like with the financial 
planning program i tend to find that that's more   helpful but it is often useful to figure out if 
you're looking at a six percent withdrawal rate   you might want to make sure that you have a 
backup in place or you have a good reason for   withdrawing a lot versus a one or two percent 
withdrawal rate you have to wonder if you are   selling yourself short once again any flexibility 
you have in retirement is extremely valuable so if   you're able to change your spending in response to 
how the markets do if you are running out of money   more quickly than anticipated then that is super 
helpful and maybe you can retire sooner or maybe   you can start with a higher withdrawal rate versus 
if everything is rigid and you're running pretty   thin then you want to go with a lower withdrawal 
rate because you don't have a lot of cushion to   adjust to life surprises so just for reference 
here we're looking at some data from JP Morgan,   their research on withdrawal rates and different 
portfolios and when might you have a relatively   high level of confidence when should you be more 
concerned and they give you a rough idea what I   like about this is it doesn't just point at one 
number it gives you some ranges and you can say   well I'm comfortable with certain ranges I'm good 
with green i don't like anything less than dark   green or you can say I'm willing to dip into some 
yellow because i want to retire sooner and I'm   willing to take chances and especially maybe i can 
make adjustments if things aren't going well so   what about taxes we said we talked more about that 
and taxes are important this is going to reduce   the amount of money you have for spending you need 
to budget if you're going to be taking withdrawals   from pre-tax retirement accounts because some 
of that money needs to go to the IRS the amount   you actually pay is going to depend on a number of 
different things and again if it's all in pre-tax   accounts you're going to have a relatively higher 
tax burden versus if that money is in Roth IRAs   and you satisfy all the requirements to get 
tax-free income so there could even be some   opportunities to do planning before you retire or 
before you start taking social security benefits   and there might be ways to reduce the amount 
you pay in taxes Roth conversions are an obvious   example of that now since we're talking about 
taxes it's time for a friendly reminder that this   is just a short video it's not individualized 
advice it's not enough for you to make some really   big detailed decisions on the rest of your life 
so please check with some experts work with a tax   advisor financial planner and triple check those 
calculations if you're doing all of this yourself   because we don't want you to run out of money 
early now this is just an oversimplified example   of what things might look like to help you 
visualize what the tax impact is so at this   point the person is taking social security 
we've got that single person example again   she gets 24 000 a year in social security so 
that means she only needs to pull out 21 000   from those pre-tax retirement accounts for 
ignoring state income tax and other factors   her tax burden is relatively small however it 
still takes a bite out of things and so if she was   thinking she has 45 000 of income that 
social security plus the withdrawals   what ends up happening is she has slightly less 
so she needs to either make up the difference   or pull out additional funds a lot of people ask 
about living off the interest or just not dipping   into the savings but spending the earnings and 
the dividends that come off of their investments i   get where that comes from perhaps you want to keep 
some money around for a health care event or maybe   you want to give assets to the next generation 
or to your favorite charity certainly makes sense   the reality unfortunately is that for people who 
have about 500 000 saved for retirement is that   those people are typically going to have to spend 
from their assets so what's important is that you   make sure you don't run out of money before you 
run out of life that goes back to some of those   planning questions and looking at a withdrawal 
rate that is going to make it likely at least   that you don't run out of money and remember that 
if you do run out of money you might still have   some social security income and other resources 
available but we really want you to be comfortable   and have assets to draw on for the rest of your 
life a couple of ways you can improve your chances   are you can explore different products i don't 
sell annuities and they can certainly be misused   but an immediate annuity for example can pay you 
income for the rest of your life and it's pretty   simple and inexpensive you certainly don't want 
to put all of your money into something like that   but it could help if you are driven by a need 
for security other techniques like buckets or   time segmentation could also help you improve 
your chances there are a lot of different ways   to go about this it just depends what feels right 
for you and if you're fortunate enough to own a   home and have some equity in it then that may 
be available for you down the road to help cover   some needs if some surprises come up so as 
you're figuring all of this out what can you   do to improve your chances of success there are a 
lot of moving parts but that means there are a lot   of opportunities to make little adjustments that 
can improve your chances remember those retirement   spending strategies so that's the go go slow 
go and no go years where you might reduce your   spending by a certain amount as you go through 
each phase or that retirement spending smile   which goes slightly slower than inflation but you 
might want to have certain categories of spending   that go faster than general inflation like health 
care expenses and in the category of least popular   solutions there is working longer now this could 
be something that helps you continue to save money   and if you're able to maybe spend more on the 
things you love then maybe you can keep working   not a lot of people want to do this but it is 
really powerful that's because it shortens the   number of years that you take withdrawals plus 
it can help your social security or your pension   benefit or both because you've got more years of 
earning possibly higher earnings and you tend to   claim at a later age which typically helps your 
benefit the drawback of that one I don't need to   tell you is that you have to keep working longer 
but even one year or a partial year can make a big   difference and take your time as you evaluate 
social security and other decisions like that   because when you claim can have a big impact 
on what your income looks like and it can also   open up opportunities like leaving some of those 
lower income years to make Roth conversions and   you certainly want to remember inflation and 
health care surprises as you go through all   of this because those can have surprising impact 
on things and health care is something that it's   kind of crazy we go into retirement we don't know 
how long it'll last we don't know what health care   issues will come up so it's really difficult to 
predict but those costs can really add up if you   get into let's say an Alzheimer's and memory care 
type situations so just think about those things   even though it's not fun think about what might 
happen if those situations were to arise.

So I   hope you found this helpful. If you did, please 
leave a quick thumbs up, thank you, and take care.

As found on YouTube

Home

Read More

Retirement Social Security: Should I Withdraw Social Security at 62 or 67 with $1 Million?

so you're getting close to retirement and the question is when should you take Social Security should you take it at 62 should you take it at 67. it's kind of like the old Chicken and the Egg discussion which came first well in this video I'm going to show you some circumstances where it might make sense for you to take it at 62 but I'm also going to show you why it might make sense to wait until 67.

[Music] hi I'm Troy sharp CEO of Oak Harvest Financial Group certified financial planner professional host of the retirement income show and also a certified tax specialist when it comes to Social Security there's usually two types of people we come across the first one says Troy when I retire no matter what I'm taking social security and the other truly has questions when does it make sense should I defer Social Security longer because I've heard that that makes a lot of sense well the truth of the matter is your circumstances your individual circumstances dictate when you should take Social Security and those circumstances today may very well be different when you get to be Social Security age so I want to cover some of those situations that may change your timing for when you elect Social Security and I also want you to know how that impacts you long term as far as your financial security how much money you have how much income you have before we continue if you'd like to support the channel just hit that subscribe button share this video with a friend or family member or comment down below so let's take a look at John and Jane they're both 61 they come in they say Troy you know what we're tired of working we really are thinking about retiring and we know we can take Social Security next year at 62.

Does that make sense should we do that so this is a case study but John and Jane right now both making about seventy five thousand dollars per year so the first thing we're going to do is look at can John and Jane retire at age 62. now we have to pick a mortality date here so we start in this example at age 90. now one spouse could pass away before another spouse so we can always move these sliders back and forth and that would impact the probabilities and the right choice for taking social security but for now we're going to plug these in both spouses live into age 90 can they retire at age 62. we have to look at some goals here too because the the decision of when to take Social Security should not be made in a vacuum just because you get more from Social Security if you defer it longer does not mean that you should always simply defer Social Security longer there are some big things we need to understand first when do you want to retire how long are you going to live how many assets have you accumulated how much money do you have how much do you want to spend in retirement because that is a big determinant of how long your money will last and also when you should take Social Security so we have to first and foremost realize that the decision of when we elect Social Security each spouse has to be made within the context of the other parameters within retirement now for John and Jane here they want to spend a baseline income of about fifty thousand dollars per year but they're healthy and they're active they're retiring young the target date here is 62.

They want to spend an additional 60 000 in what we call the Go-Go years so a total of a hundred and ten thousand dollars for the first 10 years of retirement so from 62 to 72. after that 10th year they want to reduce the spending but they're still planning on being a little bit active going out to eat spending time with friends probably kids kids grandkids Etc they're going to reduce the total spending to from from the go go of 60 to 25 so 50 plus 25 is 75 000 all adjusted for inflation for another eight years here I'm just kind of randomly putting some numbers in of what we usually see when we sit with clients when we go through the income planning discussion and what retirement success looks like to you and this is something common to what we may see in this situation so 110 000 for the first 10 years of retirement then 75 000 for years 12 through 20 and then all of that goes away except the Baseline spending of about fifty thousand dollars a year and of course that's adjusted upwards for inflation 20 years from now that's going to be close to about a hundred thousand in today's dollars as far as purchasing power of that 50.

Now I like to start the analysis at age 67 so full retirement age so when we start to look at these parameters of when it makes sense that the Baseline I like to start at is 67. so in this scenario John has thirty six thousand dollars or three thousand a month at full retirement age of 67 if he waits that long Jane will have thirty thousand dollars in retirement benefits at full retirement age we call it fra for short if she waits until age 67. okay I told you there were four big things there we've already covered two of them how long they expect to live age 90 how much they want to spend we went through that go go spending plan now how much have they saved because these are the things that we have to look at in context of making the decision of what makes the most sense regarding the age to start social security for both spouses so in this example we have 250 000 inside James 4 1K John has about 700 000 inside his 401k and they've managed to save about fifty thousand dollars outside of retirement accounts for a total investable asset level of 1 million bucks now I'd like to point this out as well they have a five hundred thousand dollar home no mortgage so that's kind of always in our back pocket if we need to tap that home equity line possibly a reverse mortgage or if we want to sell and downsize generate a little additional cash for the Investment Portfolio or to spend it's always nice to know that we have that option okay so remember I said I like to start the Social Security analysis when deciding between taking it a 62 or 67 or anytime in between or even later I like to start the Baseline at 67 to kind of see where we are and how everything plays out so I'm going to hit the magic button and based on the Go-Go spending period retiring at 61 taking social security at 67 having one million dollars in assets by the way not assuming that the home is sold we just know that's in our back pocket but it's not used to fund any goals a couple things I want to point out here first 81 probability of success that means out of a thousand different simulations assuming all these different market returns across all these years and I want to also point out this is not using uh back tested data this is using assumptions and forecast moving forward for the current economic environment that's very important to understand so 81 is not a hundred percent but is it good enough to retire yeah absolutely as long as we stayed connected to what was going on in our plan as far as how our portfolio is doing how much income we're spending the economic environment all of these various factors we would just want to monitor it a bit more closely to make sure that we weren't going down from 81 but the second thing I want to point out here is look at the kind of the trajectory so these are a thousand different simulations here and the thing that sticks out to me is taking social security at 67 and spending that amount of money we see in in literally all of these simulations that the the portfolio balance this is what this represents so we're starting at a million on the y-axis here you see it's 2 million three million and then on the x-axis it's going out years 2025 2030 2035 but in almost all of these simulations the account balances are depreciating so that tells me immediately that I want to have a conversation with you that that if we defer Social Security until 67 would you be comfortable seeing your account balances spend down because from my experience When people's account balances are spending down in retirement even though they know they have a much higher guaranteed income from Social Security people get nervous and when you get nervous in retirement especially during a recession you can make bad decisions and bad decisions are typically the one thing that can really throw your retirement off track if we allow our emotions to dictate our actions we can blow an entire plan up in the best plan out there will get blown up from bad decisions typically driven from emotional feelings behaviors Etc okay now we're going to take a look at Social Security at 62 versus age 67 and we're also we're going to look at age 70.

So what we have up here is is full retirement age both taking it 62 both taking it at 70 and then one spouse at 70 one spouse at 67. we're going to look at the probability nothing's changed except when we take Social Security okay so the the what we just looked at the current 82 percent the reason this is one percent higher than the 81 is another simulation has run but we're right in that range I want to point this out here so this is interesting the age 62 of both spouses take it at 62. it's very very close to the full retirement age probability so when we're doing a statistical analysis of all these different variables to me there's not a ton of difference between 79 and 82 81 somewhere in that range these are very very similar now when we look over here at age 70 this is the one I want you to kind of really let soak in and understand why so we have a couple that wants to retire early but they also have a pretty big spending goal in mind because they want to enjoy retirement they want to spend it together they want to travel spend time with the kids that 110 I think was the goal 110 000 during that first 10 years of retirement in the Go-Go years this means we do have to draw down the assets we need to be comfortable with that but we also need a plan on where that income is coming from how we're going to protect some of the assets but also we want to make sure that these other decisions are being made correctly as well so 62 and 67 very similar but if if they were to just follow the the most recent article they read on CNBC that says you should defer your Social Security as long as possible and they waited until age 70 yes they would have significantly higher annual income but they will have spent down the portfolio to such an extent that that might be all they have so big difference here between taking it at 70 versus 62 or 67.

Now your situation is completely different I'm not telling you to not take it at 70 because for a whole lot of our clients that is the right thing to do mathematically the other side of that coin is mathematically is not always the right answer working with clients for many years I know that emotionally if we put a plan together and this is a conversation we'd have with you if we put a plan together that had you deferring Social Security longer but your account balances were declining in value not because the market was going down just because you were spending from my experience that would be very difficult for a lot of people to continue to spend the amount of money that they have been spending and still feel comfortable that they're going to be okay for the long run so this is why staying connected to the plan and having ongoing conversations and making sure you're attending your reviews and and and make sure that you understand where you're at I also want to to briefly just talk about the dynamic spending concept things change in retirement things change in the markets things change in the economy so when we're having these types of discussions if we're not comfortable you have to communicate that because we can pivot we can go in a different direction for some of you it may make sense to take it at age 62.

for some of you it may make sense to take it at age 67 and others age 70. but make sure you understand that this plan of yours it is a living breathing organism it needs water it needs sunlight it needs to be paid attention to and things are going to change pay attention to your your emotions how you're really feeling about your account balances is that impacting your spending decisions are you having trouble sleeping at night if so that's a conversation that that you need to have with your advisor but all of these different pieces working together from my experience that's how you have a higher probability of success in retirement and also sleep better at night [Music] foreign [Music].

As found on YouTube

Home

Read More

9 Mistakes that Ruin your Retired Life|Follow A Must Avoid Checklist

Hello, my friends. I have an uncle who retired about 10 years
ago, when he was about 56 years old. After retirement, he received a
substantial amount as a corpus. However, unfortunately, his
bank account is now empty. Every month, he has to depend
on his son for pocket money. His health is getting weaker with age, and he is quite stressed that if he
has to be hospitalized for any reason, who will take care of him. He shared some mistakes with me that
I will share with you in this video today. If I tell you to visualize your life after
retirement, what would you imagine? Perhaps waking up in the morning
and taking a walk in the park with friends, going on vacations with family,
spending time with grandchildren. Most of us think that retirement
will be our golden period, no work stress and just rest. But many of the things said in
this video may seem bitter to you, but it is true, a bitter truth.

I am Bhaven, a certified financial
planner and personal finance coach, and I welcome you to my
channel ‘The Art of Wealth Building’, your one-point destination to seek and
unbiased consultation on personal finance. Let's discuss some mistakes
that can ruin your retirement. Mistake number 1: Spending all the
money on children's higher education. My uncle got married at the age of 33
and had family planning at the age of 36. This means that when he turned
58, his son Ronit was 22 years old, and when Ronit needed 20-25 lakhs
for his MBA, my uncle had already retired, and he had to give that money to
Ronit from his retirement corpus. This was my uncle's first mistake that he funded Ronit's higher
education with his retirement money. In this situation, he could have
taken an education loan for Ronit, which Ronit would have paid
after completing the studies.

Many times, there are
government scholarships or admissions available at
subsidized rates for MBA. So uncle should have asked
Ronit to explore that option as well. Mistake number 2 is not being able to
handle the significant amount of money received after retirement. My uncle also made the same mistake
that many people do after retirement. He invested in a property, thinking
that he would continue to receive rent. Where the monthly rent of
a property worth 50 lakhs, after deducting maintenance,
is hardly ₹10,000, on the other hand, if he invested
the money in a fixed deposit, he could get an interest of
₹20,000 after deducting taxes. In India, the rental yield of property
is only two to two and a half percent. On the other hand, fixed deposit,
which is a relatively safe option, also gives interest of four to
five percent after deducting tax. Property is not a liquid asset, meaning it cannot be easily sold
during emergencies in old age. On the other hand, fixed deposits
can be easily liquidated when needed.

Maintaining the property is not easy, and at times, if the property is in poor
condition, the rent also stops coming. When selling a property, a considerable amount of capital
gains tax also has to be paid, and there is also a lot of expense involved
in buying and selling the property. In my opinion, every person should have their retirement
plan and a plan for after retirement. Our salary will stop after retirement,
but inflation will continue to rise. So, if you want to understand how you
can achieve your personal financial goals such as early retirement, buying
a house, buying a car, vacation, home loan, pre-payment,
higher education, etc., then message us on WhatsApp at
the number appearing on your screen or check the description box. You can also visit our website
'theartofwealthbuilding.com.' Mistake number 3 is to
invest all your money in FDs or post office schemes after retirement.

For the initial years after retirement, my uncle managed his personal expenses
easily with the rent from his property and the interest from FDs. But after a few years, he started
experiencing running out of money. This was because the rent amount
was not increasing by a significant amount due to a lack of property
price appreciation, and inflation was rising rapidly. He should have invested at least 20%
of the money he received after retirement in equity mutual funds. This would have helped
his money to grow in value and allowed him to maintain
his lifestyle even with inflation. Many people, like my uncle, invest all their money in FDs or guaranteed return post
office schemes after retirement. But after a few years, the value of that
money reduces in real terms due to inflation. Mistake number 4 is to spend all the
income you receive after retirement. My uncle used to spend the entire
amount received from rent and interest, and this is a mistake that many
people make when they retire, thinking that every month the rent
and interest would keep coming in.

However, if he had invested a small portion of the
amount received from rent and interest in an equity mutual fund through a
Systematic Investment Plan (SIP), he would have accumulated a
substantial amount for the future, and he could have increased his withdrawal
amount. along with the rising cost of living. It is advisable to invest some portion
of the post-retirement monthly income, such as rent, interest, and pension, in
an investment plan until the age of 75, so that there is no shortage
of money in the super old age. Mistake number 5 is sharing with
your children and other family members how much money you
received at the time of retirement. This is an emotional mistake.

I am not saying that you should
not keep a record of your finances, your wife or husband
should know all the finances. You should also have a will, but the detailed blueprint, such as the
value of your assets, your total net worth, how much interest or
pension income you have, should not be discussed with
your children or any relatives. My uncle made this mistake and
told everything to his son Ronit. Every parent is emotionally
connected to their children and if in the future your son,
son-in-law, daughter-in-law or daughter asks for some money,
you won't be able to refuse, and this money can also spoil your relationship
with them if it does not come back. So the right way is to have
a will and the right records, but not everyone should
know everything in detail. Mistake Number 6:
Guaranteeing someone else's loan. After retirement, everyone
may have an estimate that a substantial amount has
been credited to your account, and sometimes our friends,
relatives, or neighbors request us to be
guarantors for their loans.

Often, when the borrower is
unable to repay the EMI of the loan, then the guarantor has to repay the loan. So when someone asks you
to be a guarantor for their loan, you can tell them that your
risk profile is not that high, or your wife or husband will not allow it, or children will not allow it. If you take the guarantee for a loan and
the borrower is unable to repay the loan, not only will your money go, but
the relationship may also be spoiled. My uncle had guaranteed
his brother's loan, and even today, when his
brother doesn't pay the EMIs he has to pay the EMI
of his brother's loan.

Mistake number 7:
Don't just run after returns. In point number 3, I told
you that after retirement, you should not invest the entire amount
only in FDs and post office schemes, and you should also invest in equity mutual
funds where you can get higher returns. And now I am saying that you
should not only care about returns. So, you see, these are
two different situations. My uncle gave some amount
to a friend of his at interest because his friend had promised
him 1 percent return per month. But after some time, my
uncle's friend passed away and his children refused to
return the money to my uncle. Then, in the quest to
earn a little more interest, my uncle kept some money in a
cooperative bank, which closed down. He also invested some
money in small cap funds, which is quite risky according to his age. So, in old age, liquidity and capital
protection should be more important for you. Mistake Number 8: Don't
Trust All Financial Advisors.

Now, I am also a
certified financial planner, and I don't feel good saying that you
should not trust all financial advisors. When retirement money is
deposited into the account, the bank officials know how much
amount is deposited in your account, and that's why they come to
you with investment schemes, needing to meet their targets,
and they give wrong advice. I have seen how wrong
products are sold to elderly people. I would say that you should stay away from any advisor who is selling you schemes in the name of
investment that are not suitable for you. Take your time before investing
and talk to a certified financial planner whom you can trust and who
won't sell you any products. And if you do invest in any ULIP policy or
any other plan on the advice of an advisor, then first ask yourself
why you are doing so, because these insurance
policies reduce the cost returns.

Never make the mistake of
investing all your money at once in the same product at the same time. And if you want to understand how to
achieve your personal financial goals by planning with a
certified financial planner, then message us on WhatsApp at
the number appearing on your screen or check the description box. You can also visit our website
'theartofwealthbuilding.com.' Mistake Number 9: Not involving your
husband or wife in financial planning. Until we are 60 or 65 years old, we
usually handle our work ourselves. But imagine that you have invested
your money in different places, and your spouse has no idea
where the money is invested. When you die, even though the
money is there, they cannot access it. Research shows that
women live longer than men. So in such a situation, your wife
should know about your financial plan. Mistake Number 10: Not
having health insurance. My uncle depended on his
company's health insurance, but since his company's insurance
was not available after retirement, and now he is not getting
health insurance due to his age, and that's why now he has to
depend on Ronit to pay the hospital bill.

So, friends, I request you to
share this video with your parents and ask them to share
it with their friends. If you have learned something,
please LIKE the video, and for more information, you
can check the description box, or you can also visit our website
'theartofwealthbuilding.com'. See you soon with
another informative video. Till then, God bless you all..

As found on YouTube

Home

Read More

F.I.R.E – 6 Uncomfortable Truths we discovered about Early Retirement & how to mitigate them

foreign hey what are the ugly sides to 
retiring early um aren't you bored every   day just lying around doing nothing don't 
you guys worry about running out of money hey guys welcome back to another beautiful 
day here in Paradise Bali many of you have   been asking me so many questions like the 
above so today I'm gonna run through six   uncomfortable truths about early retirement 
as well as my suggestions for mitigating them   based on our own experiences reaching fire and 
being retired here in Bali Indonesia for the   past two years so uncomfortable truth number 
one retirement is a journey not a destination   for the record lying around all day doing nothing 
in retirement is a myth it's always nice to have   a few days of that here and there but in reality 
you do that for long stretches of time and you're   probably going to be hit very very hard with 
feelings of boredom lack of self-worth and you're   gonna be missing a sense of fulfillment retirement 
isn't a destination like Bali or Boracay it really   is the start of a New Journey in your life it's 
that stretch of time where you finally do those   things you wanted to do but always couldn't 
because you were so busy making money to   survive it can be anything traveling the world 
finally writing that book or studying that say   cross stitch side hustle if you never get past the 
myth you'll probably end up getting bored and then   end up going back to work and missing out on this 
Amazing Life Adventure so like every other journey   start planning what is this epic adventure you 
want to spend your retirement time and money on number two if you got bored during your 
retirement stuff maybe you're doing it wrong   so for a lot of people their retirement Jam 
is about traveling the world right that's a   super common one and it's amazing fun you never 
feel more alive and it's such a great challenge   because actually you need so many different skills 
to travel properly right you need Street smarts to   navigate the towns and scams and other issues 
on the road you need to be able to plan your   itinerary book the best travel deals know how 
to haggle your prices not to mention stuff like   riding a motorbike and scuba diving and at the 
start it's always epic it's so incredible but on excitement and sense of achievement starts to 
plateau and then you're gonna hit that point   of diminishing returns and it wasn't just 
in travel either it was also my painting my   businesses my surviving The Nomad life thingy I 
find that when love to remain largely undirected   most Pursuits actually tend to lose their flavor 
with time another way of putting this is perhaps   you feel yourself falling into stagnation or 
mediocrity thing is if you're early retired on   your own efforts then you're probably more of 
the go-getter and achiever type of person and   the aspect of your personality doesn't 
change just because you're tired you'll   still be looking around and judging if you're 
spending your time meaningfully and productively   to this fix personally I found two solutions 
that worked really well for me one either I   start drilling deep down into the details of 
what I'm doing or two I make it into a business   take my dad baking is his great love in retirement 
but he's not just begging anyhow for the fun of   it the last few years he's in pursuit of baking 
a tastier sourdough bread anyone has ever come   across out of 365 days in a year he is probably 
baked about I'm guessing maybe 400 sourdough   loaves two loaves each bake he tweaks the recipes 
the starter the technique the ingredients he does   some reverse engineering of sourdough bread that's 
commercially sold outside it's been maybe three   years and he's still going strong so he set his 
own special sourdough bread goal and Target and   standards instead of just serving and yogurting 
for fun I became qualified instructors in both   and eventually started both a yoga business and 
a surf school and you know I learned so much   more about both in the whole process whatever 
Pursuit out there if you start really drilling   down there's always more Improvement to be had 
more personal growth to pursue please say you love   Pottery don't just do it aimlessly to pass time 
polish up your skills enter competitions become   a professional Potter do commissions as your 
retirement side hustle or teach pottery classes   when you keep pushing yourself to those higher 
standards because you're either really drilling   down into the craft of it or you're running it 
as an Enterprise you'll find new measures of   productivity therein and you will be bored not to 
mention if you're actually like us on lean fire   whatever site income you generate will help defray 
the cost of your interests and hobbies so you   don't need to tap on your long-term Investments 
isn't that a really good deal so two years ago   at the age of 38 I retired with my husband here 
in Bali it's pretty early by most standards and   it's been a completely amazing journey we've 
learned a lot and I hope the insights we are   sharing with you guys are useful if you're on 
your own fire Journey or already neck deep in   retirement smack that like button share with us in 
the comments below what your retirement looks like   so far how you're keeping busy and whether you 
agree or disagree with the points we made here   now on to the third uncomfortable truth it's 
hard that you must defend your time you probably   retired so you can spend your time doing however 
you please whenever you please most of us will   have spent the vast majority of Our Lives 
thus far making a living which means usually   someone else is directing your time either your 
boss or your clients and we get really used to   that so then in retirement self-directing your 
time becomes something new and kind of foreign   and if you look at retired folks in Singapore 
after working jobs that entire lives most of   them graduate on in retirement working as free 
child care services for their grandchildren   if that's their ultimate dream and for some 
traditional older folks it definitely is then   it's wonderful I'm really happy for them but 
for some it may not really be that but they   find themselves doing it anyway kind of like by 
default because they're just so used to allowing   someone else to direct their time for them there's 
always going to be people around who will try to   take advantage of your free time asking you to 
run errands for them perhaps or like for us here   in Bali we get so many requests from both people 
we know personally and complete strangers of the   internet asking us to do stuff like plan their 
holidays show them around Bali Etc of course we   love hosting close friends and family and we 
enjoy helping people generally but sensibly   speaking our own private lives would just vanish 
if we were to entertain all the requests we get   you'll need to learn how to say no to people and 
how to strike balance retirement is as much about   sharing your time with the people who matter 
to you as it is about having time for your own   personal growth and development just be aware 
uncomfortable truth number four it's probably   gonna be just you and your significant other from 
now on out so upon retirement your social scene is   going to change drastically everyone else is at 
work or busy with their own stuff you're either   gonna have to learn to enjoy your own company 
a lot or if you're lucky enough to have retired   with your significant other that's who you'll 
probably be spending majority of your retirement   with so best learn to get along companionably good 
communication is key as it's just generally being   a considerate and respectful human being through 
the pandemic and on the road this past decade   I've seen so many people who seem really surprised 
by the person the other half truly is when they   start retirement and start traveling together 
24 7 a day but building that Comfort to do   stuff by yourself and building that wonderful 
relationship with your other half can also   possibly be the most rewarding part of your 
retirement journey and your personal growth   before I share with you the fifth uncomfortable 
truth just the quick word from our sponsor of   today's video MooMoo Singapore the stock 
market is historically one of the most   popular ways to be invested I myself hold 
a select number of U.S Blue Chip stocks and   ETFs and for over 10 months now I've been using 
the MooMoo Singapore platform the mobile app is   intuitive fast easy to use I get free real-time 
data and even level 2 quotes plus the super   competitive commission costs including trading U.S 
stocks with zero commission saves me so much money   for a limited time now new users of MooMoo 
Singapore get a Kickstart with the investor   starting kit worth up to 2086 dollars when you 
sign up and deposit a hundred Sing dollars into   the moon Universal account will neutrals in two 
Sing dollars cash buy every day for the first 10   days that's a gift of 20 Sing dollars absolutely 
free on a deposit of a hundred dollars or more   deposit two thousand Sing dollars and perform 
to buy trades you'll receive one free Coca-Cola   share with about 80 Sing dollars if you deposit 
ten thousand Sing dollars and perform seven buy   trades they'll give you a 108 Sing dollar Cash 
coupon no questions asked I strongly believe that   in today's day and age to be financially capable 
necessarily means one must be putting the money   to work for them in one way or another so why not 
take advantage of these offers right now for more   info click on the link in the description below 
uncomfortable truth number five your money plans   are never as foolproof as you think all retirement 
whether it's the regular kind or fire really all   boils down to the financial planning behind it 
right and the most uncomfortable truth of all   may be that your retirement funds are never 
as foolproof as you plan for especially if   your plans are supposed to spend 30 40 even 50 
years in the case of early retirement expert   predictions and assumptions go wrong you made a 
mistake in your portfolio planning because of all   the buyers that we all carry Bear markets happen 
blacks on events gray Rhino events so many things   no matter the plan no matter how much stress 
testing you did before you dove into it the   unexpected often happens and the sooner you come 
to terms with this uncomfortable truth the sooner   you can move on to hatching against the risks 
You can predict most retirees they're working   their financial planning and less Aid around 
the four percent drawdown rule right so the   U.S stock market has had a phenomenal Run for the 
last 10 12 years or so now of course things are   looking a little different for the foreseeable 
future so those who have been conservative and   who have refrained from tapping their long-term 
investments will have more breeding space now   to ride out this bear Market however long it may 
last friends who have been following our journey   for a while now know that a dominant portion of 
our retirement here in Bali consists of rental   income from a number of real estate Investments 
and unfortunately in the last two years since   we started retirement Europe is a game at War 
soaring Energy prices have driven up the cost   of living across the world and everywhere massive 
inflation is now a huge issue thankfully we have   so far managed to resolve whatever disruptions 
we've experienced but basically yet another   uncomfortable truth in retirement is that managing 
your money to make it last till the end takes up   more time than you think don't just go to sleep on 
it continually look to diversify the eggs in your   basket and be open to adjusting your money plans 
like rebalancing your portfolio or changing how   you invest your retirement Arsenal as different 
opportunities present themselves for time you may   not need to work for money any longer but doing 
stuff that fuels your personal growth and that   generates some extra side income as a bonus is 
never a Bad Thing uncomfortable truth number six   no point sweating the small stuff y'all know I'm 
a big fan of simple frugal living and no pretenses   whereas happy dining in a fancy restaurant 
as we are eating at the local War rooms here   sometimes more happy actually but many of us 
can also easily get carried away diving into   with the itsy bitsy details of frugal living you 
know spending two hours here looking up deals and   coupons that end up saving you 10 bucks three 
hours there figuring out how to maximize your   air miles should you lock in that 3.5 fixed 
deposit rate now or wait till next week where   maybe it might be 3.7 I mean it can be fun 
and then it can also be a lousy use of your   time you can do it if you enjoy the challenge 
just know that so long as you get the big stuff   right your retirement is probably going to work 
out just fine so don't sweat the small stuff   big things include stuff like keeping on top 
of your overall General expenses you know doing   your taxes right maintaining a balance then 
Diversified portfolio so as long as you keep   on top of all of that I think that's about 95 of 
the big picture really conversely what I'm also   saying is that if you blow up your retirement 
finances by for example trying to go big or go   home on crypto no amount of coupon cutting is 
gonna save you from having to go back to a job   so yeah that's my take on not sweating the small 
stuff we're all retire at some point of Our Lives   whether early or late voluntarily or unwillingly 
it all boils down to choice and advanced planning   just what I've personally observed is that if 
you cut out all the noise and distraction in   life what do you think are the real currencies we 
truly traded the way I see it is four things it's   money time Youth and health just think about it 
everything we do throughout our entire lives is   really us trading one of these for the other an 
early retirement is that one anomaly where you are   in a position to spend all four currencies at once 
simultaneously and that maximizes your experience   of life a really clear illustration of this is 
traveling you can travel in your 60s and 70s sure   that's what most people will end up doing and it's 
great you know you see these folks really enjoying   seeing new things being very happy but it's often 
in the form of like lots of cruise trips around   the world and that's cool too but they'll never 
experience what it's like to try learning to surf   or sail and getting all salty and burned and 
muscle achy but happily exhausted oh they'll   never try anything more vigorous and adventurous 
like say backpacking your way through Europe you   know crushing in new hostels meeting crazy people 
from Iceland or wherever and doing silly things   together we all have two lives the life that we 
currently live and the life we could possibly live   so then which life would you choose tell me in 
the comments below and don't tell me you wouldn't   retire early because you just wouldn't really know 
what to do that's just a cop-out answer because   yeah well you're too lazy to do the legwork 
and try new stuff and understand yourself   thanks for watching as always speak 
again next Saturday bye foreign

As found on YouTube

Home

Read More

7 Biggest Retirement Planning Mistakes People Regret

we all look forward to retirement it's the time to sit back relax and enjoy the fruits of our labor unfortunately whatever aspirations we may have for our golden years can quickly turn into a nightmare if we make certain mistakes when planning for this phase of life these mistakes are surprisingly common and tend to lead to financial stress and regret with a big impact on quality of life some of these mistakes are 1. not planning for retirement two retiring too soon three relying too heavily on Social Security 4. underestimating health care costs 5. failing to save enough for retirement six taking on too much debt seven not maintaining strong relationships if you want to learn more about these mistakes and how to avoid them subscribe to the channel a new video is coming soon and you won't want to miss it.

As found on YouTube

Home

Read More