Tag: early retirement
F.I.R.E – 6 Uncomfortable Truths we discovered about Early Retirement & how to mitigate them
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
foreign hi what are the ugly sides to.
retiring early um aren'' t you tired every day just lying around not doing anything put on'' t. you individuals stress about lacking cash hi there guys welcome back to an additional gorgeous.
day below in Heaven Bali most of you have been asking me so lots of questions like the.
above so today I'' m gon na run with 6 uneasy facts concerning very early retired life.
As my recommendations for alleviating them based on our own experiences reaching fire as well as.
being retired right here in Bali Indonesia for the past 2 years so uncomfortable truth number.
one retired life is a journey not a destination for the record lying around all the time not doing anything.
in retirement is a misconception it'' s always wonderful to have a couple of days of that occasionally but in fact.
you do that for lengthy stretches of time and you'' re most likely going to be hit very very hard with.
sensations of monotony lack of self-regard and you'' re gon na be missing a feeling of gratification 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 points you intended to do yet constantly couldn'' t. since you were so hectic earning money to endure it can be anything traveling the globe.
Creating that book or examining that claim cross stitch side hustle if you never obtain past the.
misconception you'' ll most likely finish up getting bored and afterwards end up going back to work and losing out on this.
Outstanding Life Adventure so like every various other journey begin preparing what is this impressive journey you.
intend to spend your retirement time and cash on number 2 if you got bored during your.
retirement stuff perhaps you'' re doing it wrong so for a great deal of people their retired life Jam.
is concerning taking a trip the globe right that'' s a very usual one and it'' s remarkable enjoyable you never
. feel more to life and it'' s such a fantastic difficulty because in fact you require many various skills.
to travel effectively best you need Street smarts to navigate the towns and also rip-offs and also various other concerns.
when traveling you need to be able to intend your schedule publication the best travel bargains know how.
to bargain your rates and also stuff like riding a motorcycle as well as scuba diving and also at the.
start it'' s always impressive it ' s so amazing however on enjoyment and feeling of achievement starts to.
plateau and after that you'' re gon na hit that factor of reducing returns and also it wasn'' t just. in travel either it was likewise my paint my organizations my surviving The Nomad life thingy I.
discover that when love to continue to be largely undirected most Quests in fact have a tendency to lose their flavor.
with time another means of placing this is probably you feel yourself falling into stagnation or.
mediocrity point is if you'' re early retired on your very own initiatives then you'' re possibly extra of. the go-getter as well as achiever kind of individual and the element of your individuality doesn'' t. change even if you'' re tired you ' ll still be browsing as well as judging if'you ' re. investing your time meaningfully as well as successfully to this solution personally I located 2 remedies. that worked really well for me one either I start piercing deep down into the details of.
what I'' m doing or 2 I make it into a service take my dad cooking is his fantastic love in retirement.
He'' s not just pleading in any case for the fun of it the last few years he'' s in quest of cooking.
a tastier sourdough bread any person has actually ever come across out of 365 days in a year he is most likely.
baked concerning I'' m guessing perhaps 400 sourdough loaves two loaves each bake he modifies the recipes.
the starter the method the active ingredients he does some reverse design of sourdough bread that'' s. readily sold outside it'' s been perhaps three years and he'' s still going strong so he set his.
very own special sourdough bread objective as well as Target and also standards as opposed to simply offering and also yogurting.
for fun I became competent teachers in both and also at some point began both a yoga organization as well as.
a surf school and also you know I discovered so a lot more concerning both in the entire procedure whatever.
Quest available if you begin truly piercing down there'' s constantly more Renovation to be had.
more individual development to go after please say you like Pottery wear'' t just do it aimlessly to pass time.
polish up your abilities enter competitors become a specialist Potter do commissions as your.
retired life side rush or teach ceramic classes when you maintain pushing on your own to those greater.
requirements since you'' re either actually piercing down into the craft of it or you'' re running it.
as a Business you'' ll locate brand-new procedures of performance therein and you will be burnt out not to.
state if you'' re in fact like us on lean fire whatever site income you produce will certainly help settle.
the price of your passions as well as hobbies so you don'' t requirement to touch on your long-term Investments.'isn ' t that a really great deal so 2 years back at the age of 38 I retired with my partner below.
in Bali it'' s pretty early by the majority of criteria and also it'' s been a completely amazing trip we''
ve. learned a lot and I wish the understandings we are sharing with you men are helpful if you'' re on. your very own fire Trip or currently neck deep in retirement smack that like switch show to us in.
the remarks below what your retirement appears like thus far exactly how you'' re keeping busy and whether you.
concur or differ with the factors we made below now on the third awkward fact it'' s. hard that you have to safeguard your time you most likely retired so you can invest your time doing nevertheless.
you please whenever you please a lot of us will certainly have actually invested the substantial majority of Our Lives.
therefore far making a living which implies generally somebody else is guiding your time either your.
boss or your clients and also we obtain actually made use of to that so then in retirement self-directing your.
time becomes something brand-new and also sort of international and also if you take a look at retired folks in Singapore.
after working work that entire lives the majority of them graduate on in retired life functioning as cost-free.
childcare services for their grandchildren if that'' s their utmost dream and for some.
standard older folks it absolutely is then it'' s remarkable I ' m really
pleased for them yet. for some it may not really be that but they locate themselves doing it anyway kind of like by.
default because they'' re so utilized to permitting another person to route their time for them there'' s. always mosting likely to be people around who will certainly try to make use of your leisure time asking you to.
run errands for them possibly or like for us here in Bali we get many requests from both people.
we understand directly and total strangers of the net asking us to do things like strategy their.
holidays show them around Bali Etc naturally we love holding friends as well as family and we.
delight in aiding individuals usually however sensibly talking our own personal lives would certainly just vanish.
if we were to entertain all the demands we obtain you'' ll requirement to find out how to claim no to individuals as well as. exactly how to strike balance retirement is as much concerning sharing your time with individuals who matter.
to you as it has to do with having time for your own individual growth and also development simply understand.
unpleasant reality number 4 it'' s most likely gon na be just you and your loved one from.
now on out so upon retired life your social scene is going to alter substantially everybody else is at.
job or busy with their own things you'' re either gon na need to learn to appreciate your very own firm.
a whole lot or if you'' re fortunate adequate to have actually retired with your better half that'' s who you ' ll. probably be spending majority of your retired life with so best discover to get on companionably excellent.
interaction is key as it'' s simply usually being a considerate as well as respectful human being with.
the pandemic and on the road this previous decade I'' ve seen numerous individuals that seem really stunned.
by the individual the various other fifty percent absolutely is when they begin retirement as well as begin taking a trip with each other.
24 7 a day however building that Comfort to do things on your own and also developing that fantastic.
connection with your partner can also potentially be the most rewarding component of your.
retirement journey and also your personal growth before I show to you the 5th unpleasant.
fact simply the fast word from our enroller of today'' s video clip MooMoo Singapore the supply.
market is traditionally among one of the most preferred ways to be invested I myself hold.
a choose variety of U.S Blue Chip stocks as well as ETFs and for over 10 months currently I'' ve been using.
the MooMoo Singapore platform the mobile app is instinctive fast simple to utilize I get totally free real-time.
data and even degree 2 quotes plus the very affordable payment expenses consisting of trading U.S.
stocks with no compensation conserves me a lot money for a limited time currently new individuals of MooMoo.
Singapore get a Kickstart with the capitalist starting kit well worth up to 2086 dollars when you.
subscribe and also down payment a hundred Sing dollars right into the moon Universal account will neutrals in 2.
Sing bucks pay buy everyday for the very first 10 days that'' s a present of 20 Sing bucks definitely.
cost-free on a down payment of a hundred bucks or even more down payment 2 thousand Sing bucks as well as do.
to get trades you'' ll receive one complimentary Coca-Cola show to about 80 Sing bucks if you deposit.
ten thousand Sing bucks and carry out seven get trades they'' ll provide you a 108 Sing buck Cash money.
voucher no questions asked I strongly think that in today'' s day and also age to be economically capable.
necessarily means one need to be placing the cash to benefit them in one method or one more so why not.
make the most of these deals now for even more information click the link in the summary below.
uncomfortable reality number five your cash strategies are never ever as sure-fire as you think all retirement.
whether it'' s the routine kind or fire really all boils down to the financial planning behind it.
right and also the most unpleasant truth of all might be that your retired life funds are never ever.
as fail-safe as you plan for especially if your plans are expected to spend 30 40 also 50.
years when it comes to very early retirement expert predictions and assumptions go wrong you made a.
error in your portfolio preparation due to all the buyers that most of us bring Bearish markets occur.
blacks on events gray Rhinocerous occasions numerous things despite the plan no issue just how much stress.
screening you did before you dove into it the unexpected usually occurs as well as the sooner you come.
to terms with this awkward reality the sooner you can go on to hatching out versus the risks.
You can anticipate most retired people they'' re working their financial planning and much less Help around.
the four percent drawdown rule right so the U.S supply market has had a sensational Run for the.
last 10 12 years or so now certainly things are looking a little different for the foreseeable.
future so those who have actually been conservative and also that have actually avoided tapping their long-term.
investments will certainly have more reproducing space currently to ride out this bearish market nonetheless long it may.
last close friends who have actually been following our journey for some time currently recognize that a leading portion of.
our retired life here in Bali is composed of rental earnings from a variety of realty Investments.
and also unfortunately in the last 2 years given that we started retired life Europe is a game up in arms.
skyrocketing Energy prices have increased the expense of living across the world and everywhere enormous.
rising cost of living is currently a substantial issue thankfully we have thus far handled to settle whatever interruptions.
we'' ve experienced yet essentially yet another unpleasant truth in retirement is that handling.
your money to make it last till completion uses up even more time than you think don'' t simply go to rest on.
it continuously seek to diversify the eggs in your basket and be open to changing your money plans.
like rebalancing your profile or changing exactly how you invest your retirement Toolbox as various.
opportunities offer themselves for time you might not require to work for cash any longer however doing.
stuff that fuels your individual growth which creates some extra side earnings as a reward is.
never ever a Bad Point unpleasant fact number 6 no factor sweating the little things y'' all know I ' m. a large follower of easy prudent living and also no pretenses whereas delighted dining in a fancy dining establishment.
as we are eating at the neighborhood Battle areas right here sometimes a lot more happy actually yet numerous of us.
can also quickly get lugged away diving right into with the itsy bitsy information of economical living you.
know investing 2 hours right here searching for bargains and discount coupons that end up conserving you 10 bucks three.
hours there finding out how to optimize your air miles need to you secure in that 3.5 dealt with.
deposit rate currently or wait till following week where maybe it may be 3.7 I indicate it can be enjoyable.
and afterwards it can likewise be a lousy usage of your time you can do it if you enjoy the challenge.
just know that so long as you obtain the large stuff right your retired life is most likely going to function.
out simply great so don'' t sweat the small things huge things consist of things like continuing top.
of your general General costs you know doing your taxes right preserving a balance after that.
Diversified profile so as long as you maintain in addition to every one of that I assume that'' s about 95 of.
the large photo really alternatively what I'' m additionally claiming is that if you explode your retired life.
funds by as an example attempting to go big or go residence on crypto no amount of voucher cutting is.
gon na conserve you from having to go back to a work so yeah that'' s my tackle not sweating the tiny.
things we'' re all retire eventually of Our Lives whether very early or late voluntarily or reluctantly.
all of it come down to selection and advanced preparation simply what I'' ve directly observed is that if.
you eliminated all the sound and diversion in life what do you assume are the genuine currencies we.
genuinely traded the means I see it is four things it'' s cash time Youth and also wellness simply think of it.
every little thing we do throughout our entire lives is really us trading one of these for the other an.
layoff is that anomaly where you are in a setting to invest all four currencies at the same time.
concurrently which maximizes your experience of life a really clear picture of this is.
traveling you can take a trip in your 60s and 70s sure that'' s what lots of people will certainly finish up doing and it'' s. terrific you recognize you see these people really enjoying seeing new things being extremely satisfied but it'' s often.
in the type of like great deals of cruise journeys around the globe which'' s cool also but they'' ll never. experience what it'' s like to try discovering to browse or sail and also obtaining all salty and also burned and also.
muscle achy but gladly exhausted oh they'' ll never attempt anything even more vigorous as well as adventurous.
like state backpacking your method through Europe you know crushing in brand-new hostels meeting crazy individuals.
from Iceland or any place and doing ridiculous points with each other all of us have 2 lives the life that we.
presently live and the life we could potentially live so then which life would you pick inform me in.
the comments listed below and wear'' t tell me you wouldn'' t retire early because you simply wouldn'' t actually recognize. what to do that'' s simply a cop-out solution due to the fact that yeah well you'' re as well careless to do the research.
and also try brand-new things as well as recognize on your own many thanks for seeing as constantly talk.
once more next Saturday bye foreign.
F.I.R.E – 6 Uncomfortable Truths we discovered about Early Retirement & how to mitigate them
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
international hey what are the hideous sides to.
retiring very early um aren'' t you bored every day just existing around doing nothing don'' t. you guys bother with lacking cash hey guys invite back to an additional gorgeous.
day here in Paradise Bali a lot of you have been asking me many concerns like the.
above so today I'' m gon na run with 6 unpleasant realities concerning early retirement.
As my recommendations for mitigating them based on our own experiences reaching fire and.
being retired right here in Bali Indonesia for the previous 2 years so uneasy truth number.
one retired life is a trip not a location for the document lying around all the time not doing anything.
in retired life is a misconception it'' s constantly wonderful to have a couple of days of that occasionally however actually.
you do that for long stretches of time as well as you'' re possibly going to be hit really really difficult with.
feelings of monotony absence of self-worth as well as you'' re gon na be missing out on a sense of gratification retirement.
isn'' t a destination like Bali or Boracay it really is the beginning of a New Journey in your life it'' s. that stretch of time where you ultimately do those things you intended to do yet constantly couldn'' t. since you were so busy making cash to survive it can be anything taking a trip the globe.
Creating that publication or studying that say cross stitch side hustle if you never obtain past the.
myth you'' ll most likely end up obtaining bored and after that wind up returning to work and also losing out on this.
Outstanding Life Adventure so like every various other trip start planning what is this epic experience you.
wish to invest your retired life money and time on second if you got tired during your.
retirement stuff perhaps you'' re doing it wrong so for a great deal of individuals their retirement Jam.
is about taking a trip the world right that'' s a super common one and also it'' s amazing enjoyable you never ever
. really feel much more alive and also it'' s such a terrific obstacle due to the fact that actually you need a lot of various skills.
to take a trip correctly right you require Road smarts to browse the towns and also scams as well as various other concerns.
when driving you need to be able to prepare your plan publication the most effective travel offers know exactly how.
to haggle your costs and also things like riding a motorcycle and scuba diving and also at the.
begin it'' s always impressive it ' s so extraordinary yet on exhilaration and also sense of accomplishment starts to.
plateau and also then you'' re gon na strike that point of decreasing returns and it wasn'' t just. in travel either it was also my painting my services my surviving The Wanderer life thingy I.
find that when love to stay mainly undirected most Quests really often tend to lose their flavor.
with time another way of putting this is perhaps you feel on your own falling under torpidity or.
that worked really well for me one either I start drilling deep down into the details of.
what I'' m doing or 2 I make it right into a business take my papa baking is his terrific love in retirement.
He'' s not simply pleading anyhow for the enjoyable of it the last few years he'' s in quest of cooking.
a tastier sourdough bread any individual has actually ever before come throughout out of 365 days in a year he is possibly.
baked regarding I'' m thinking possibly 400 sourdough loaves two loaves each bake he fine-tunes the dishes.
the starter the method the active ingredients he does some reverse design of sourdough bread that'' s. readily marketed outside it'' s been possibly three years and he'' s still going strong so he established his.
own unique sourdough bread objective and also Target and also criteria instead of simply serving as well as yogurting.
for enjoyable I ended up being competent teachers in both and at some point began both a yoga business and.
a browse school as well as you know I discovered so a lot a lot more about both in the entire procedure whatever.
Search out there if you start really piercing down there'' s always a lot more Enhancement to be had.
much more individual development to pursue please claim you enjoy Ceramic don'' t simply do it aimlessly to pass time.
brighten up your abilities get in competitions come to be a specialist Potter do compensations as your.
retirement side rush or educate ceramic courses when you keep pushing on your own to those greater.
criteria because you'' re either really drilling down right into the craft of it or you'' re running it.
as an Enterprise you'' ll discover brand-new procedures of efficiency therein and you will be burnt out not to.
state if you'' re really like us on lean fire whatever site revenue you produce will certainly assist settle.
the cost of your interests and also leisure activities so you wear'' t need to tap on your long-term Investments.'isn ' t that an actually bargain so 2 years earlier at the age of 38 I retired with my husband here.
in Bali it'' s quite early by many standards and also it'' s been a completely fantastic journey we''
ve. learned a whole lot and also I really hope the understandings we are showing to you individuals work if you'' re on. your very own fire Journey or already neck deep in retired life smack that like switch show to us in.
the remarks listed below what your retired life looks like so far how you'' re maintaining active as well as whether you.
concur or disagree with the points we made below currently on the third awkward reality it'' s. hard that you must protect your time you most likely retired so you can invest your time doing nonetheless.
you please whenever you please many of us will have spent the large bulk of Our Lives.
so far earning a living which means usually somebody else is routing your time either your.
manager or your clients and we obtain actually used to that so then in retired life self-directing your.
time comes to be something new as well as type of international as well as if you look at retired folks in Singapore.
after working jobs that entire lives a lot of them finish on in retirement functioning as cost-free.
child care solutions for their grandchildren if that'' s their best desire as well as for some.
typical older folks it certainly is after that it'' s wonderful I ' m actually
happy for them but. for some it may not actually be that but they locate themselves doing it anyway sort of like by.
default because they'' re simply so used to permitting somebody else to guide their time for them there'' s. always going to be people around who will attempt to capitalize on your spare time asking you to.
run duties for them possibly or like for us below in Bali we get so lots of demands from both people.
we understand personally as well as complete strangers of the net asking us to do stuff like strategy their.
holidays reveal them around Bali Etc naturally we love hosting buddies as well as family members and also we.
appreciate helping individuals typically however smartly speaking our own exclusive lives would certainly simply disappear.
if we were to captivate all the demands we get you'' ll need to find out just how to say no to people and also. how to strike equilibrium retirement is as much about sharing your time with the individuals who matter.
to you as it is regarding having time for your very own personal development as well as advancement simply know.
uneasy fact number four it'' s most likely gon na be just you and your loved one from.
currently on out so upon retired life your social scene is going to alter considerably everybody else is at.
job or active with their very own things you'' re either gon na need to learn to appreciate your own firm.
a lot or if you'' re lucky adequate to have actually 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.
interaction is key as it'' s simply generally being a thoughtful and respectful human being through.
the pandemic and on the roadway this previous decade I'' ve seen so several people who seem really surprised.
by the person the other half really is when they begin retirement and start traveling with each other.
24 7 a day but building that Convenience to do stuff on your own and building that wonderful.
relationship with your partner can additionally possibly be the most rewarding component of your.
retired life journey as well as your personal development prior to I show to you the 5th uncomfortable.
reality just the quick word from our sponsor of today'' s video MooMoo Singapore the supply.
market is traditionally among one of the most preferred methods to be invested I myself hold.
a pick variety of U.S Blue Chip supplies and ETFs and for over 10 months now I'' ve been utilizing.
the MooMoo Singapore system the mobile app is intuitive fast very easy to utilize I break out real-time.
information and even level 2 quotes plus the very affordable payment expenses including trading U.S.
stocks with zero compensation conserves me a lot cash for a restricted time now new users of MooMoo.
Singapore get a Kickstart with the investor beginning set well worth up to 2086 dollars when you.
subscribe and deposit a hundred Sing dollars right into the moon Universal account will neutrals in two.
Sing dollars pay buy daily for the first 10 days that'' s a gift of 20 Sing dollars definitely.
complimentary on a down payment of a hundred dollars or even more down payment 2 thousand Sing dollars as well as do.
to get professions you'' ll receive one free Coca-Cola show to regarding 80 Sing dollars if you deposit.
ten thousand Sing bucks and perform seven buy trades they'' ll offer you a 108 Sing dollar Cash money.
voucher no inquiries asked I strongly think that in today'' s day and age to be economically capable.
necessarily indicates one have to be putting the cash to help them in one method or an additional so why not.
make the most of these deals now for even more details click on the web link in the summary listed below.
unpleasant fact number 5 your money strategies are never ever as sure-fire as you think all retirement.
whether it'' s the normal kind or fire truly all boils down to the monetary preparation behind it.
right and the most unpleasant fact of all might be that your retirement funds are never.
as fail-safe as you prepare for specifically if your strategies are meant to spend 30 40 also 50.
years in the situation of very early retirement expert forecasts and presumptions fail you made a.
mistake in your portfolio preparation because of all the buyers that we all bring Bear markets occur.
blacks on occasions grey Rhino occasions so numerous points regardless of the plan despite exactly how much stress.
testing you did before you studied it the unexpected typically occurs as well as the sooner you come.
to terms with this awkward fact the quicker you can move on to hatching against the risks.
You can forecast most senior citizens they'' re functioning their financial preparation and much less Help around.
the four percent drawdown rule right so the U.S stock exchange has had a sensational Run for the.
last 10 12 years or so now of program points are looking a little different for the foreseeable.
future so those who have actually been traditional and also that have actually abstained from tapping their long-lasting.
investments will have much more reproducing space now to come through this bearish market however long it may.
last pals who have actually been following our trip for some time currently recognize that a dominant portion of.
our retired life right here in Bali contains rental income from a number of property Investments.
as well as regrettably in the last two years considering that we started retired life Europe is a video game up in arms.
soaring Power rates have actually driven up the expense of living across the globe and also all over enormous.
rising cost of living is now a massive concern the good news is we have so far taken care of to settle whatever disturbances.
we'' ve knowledgeable but essentially yet an additional awkward truth in retirement is that managing.
your cash to make it last till completion takes up more time than you believe wear'' t just go to rest on.
it continuously aim to expand the eggs in your basket as well as be open to adjusting your cash strategies.
like rebalancing your portfolio or transforming just how you invest your retirement Toolbox as different.
possibilities provide themselves for time you might not require to function for cash any type of longer however doing.
stuff that fuels your personal growth as well as that generates some added side revenue as an incentive is.
never a Bad Point awkward reality number 6 no factor sweating the small stuff y'' all recognize I ' m. a big fan of basic frugal living and no pretenses whereas delighted dining in an expensive dining establishment.
as we are eating at the local Battle spaces here occasionally a lot more pleased actually however a lot of us.
can likewise quickly get brought away diving right into with the itsy bitsy details of economical living you.
understand investing two hours below seeking out offers and also promo codes that end up conserving you 10 bucks 3.
hrs there figuring out exactly how to optimize your air miles need to you secure that 3.5 dealt with.
down payment price now or wait till next week where possibly it may be 3.7 I suggest it can be enjoyable.
and afterwards it can additionally be a poor use of your time you can do it if you take pleasure in the obstacle.
simply know that as long as you obtain the large stuff right your retired life is most likely mosting likely to function.
out just great so wear'' t sweat the tiny things big things include stuff like keeping on top.
of your general General expenditures you recognize doing your tax obligations right keeping a balance after that.
Diversified profile so as long as you keep on top of every one of that I believe that'' s about 95 of.
the big image actually on the other hand what I'' m likewise stating is that if you blow up your retired life.
finances by for instance attempting to go huge or go home on crypto no quantity of voucher cutting is.
gon na save you from having to go back to a task so yeah that'' s my take on not sweating the tiny.
things we'' re all retire at some time of Our Lives whether early or late voluntarily or unwillingly.
all of it come down to choice and progressed preparation just what I'' ve directly observed is that if.
you removed all the noise and also diversion in life what do you think are the real money we.
genuinely traded the way I see it is four things it'' s money time Youth as well as health and wellness simply consider it.
everything we do throughout our entire lives is truly us trading among these for the other an.
early retired life is that a person abnormality where you are in a setting to spend all 4 currencies at the same time.
concurrently and that optimizes your experience of life a really clear illustration of this is.
traveling you can travel in your 60s and also 70s certain that'' s what lots of people will certainly finish up doing as well as it'' s. excellent you understand you see these people really delighting in seeing new things being very happy yet it'' s frequently.
in the kind of like great deals of cruise trips around the globe as well as that'' s cool down also yet they'' ll never. experience what it'' s like to attempt finding out to surf or sail and also obtaining all salty and also burned as well as.
muscle mass achy however gladly tired oh they'' ll never ever try anything more vigorous as well as adventurous.
like say backpacking your means with Europe you know crushing in brand-new hostels satisfying crazy individuals.
from Iceland or wherever and also doing silly things together we all have 2 lives the life that we.
currently live as well as the life we could possibly live so then which life would certainly you select inform me in.
the comments below and also put on'' t tell me you wouldn'' t retire early due to the fact that you simply wouldn'' t actually recognize. what to do that'' s simply a cop-out response because yes well you'' re too careless to do the research.
and also try new things and recognize on your own thanks for seeing as always speak.
once more next Saturday bye foreign.
Retire Rich: 2023 Ultimate Planning Guide (Step-by-Step)
Jason 0 Comments Career after Retirement Retire Wealthy
– What's going on you guys. Welcome back to the channel. So in this video today, we're gonna be going over a ultimate guide to retirement planning in 2021. You already know I got my seltzer here. I gonna go ahead and
crack this bad boy open. And we're gonna get this
video started shortly. So at the end of the day, most
people do not want to spend the rest of their life working. And since your expenses don't
just magically disappear, when you turn 60 or 65 or
whatever that retirement age is you have to do things in order
to plan for your retirement. And so in this video, I'm
gonna go through exactly what you need to know to
start off this process of planning for retirement. This is going to include a
number of different topics. We're gonna talk about, how to tell when you can retire based on your level of income. We're gonna cover three primary ways that people derive
income during retirement, when to start saving for retirement, which is as soon as possible obviously, where to save for retirement? And we're also going to cover, how to make your retirement money last? Now real quick here, guys I just want to say thank
you to today's video sponsor which is T-Mobile.
We're gonna talk about
that more later on guys but I just wanna mention
here that T-Mobile offers their Essentials Unlimited 55 and up plan which is going to be
offering unlimited talk, text and data on two lines
at just $27.50 per line. It is a great option for people who are approaching retirement
age, who are looking to minimize those monthly recurring expenses. Compared to Verizon and AT&T
you can often save around 50% with T-Mobile. Not to mention guys, T-Mobile is the only wireless
company that offers a discount on the 55 and up plans regardless of what state you live in. Other companies like Verizon and AT&T only offer those discounted
plans in Florida. So you may wanna check that out. In addition, if you're thinking
about upgrading your phone and getting the latest 5G technology, 5G is included at no
extra cost with this plan. But more on that later. Now I'm definitely not looking
to waste your time here with this video guys. So I wanna go ahead and
identify who this video is for.
Well, mainly this video is geared towards people who are
approaching retirement age. You're probably not ready to retire but it's something that's on the horizon in the next 5 to 10 years. And you're wondering what things should you be aware of right now, and how can you get your ducks in a row for when you do approach
that retirement age. This video is also helpful
for those who are just looking to prepare for
retirement early on.
Even if you're in your
20s like me or your 30s, there's things you can start doing today that are gonna be relatively painless. And trust me, you're gonna
thank yourself later, when you have a lot of money set aside for your golden years. Now, many hours of research
did go into this video. So I just have three small
favors to ask you here, guys. First of all, if you are sitting there and watching this on your computer, go ahead and put your phone on silence and put it away for a little bit, because you wanna focus
all of your attention on this video, and not be distracted with all those social media apps, you can go back to those shortly. Also guys, make sure you pause the video and grab a pen and paper.
And if you need one, go ahead
and grab a beverage as well. We are gonna be here for a little bit but I promise to you that I'm gonna answer probably
every question you have about retirement planning in this video. So you're not gonna have to jump to like 10 different videos to get all
of your questions answered. Lastly guys, if you enjoy this video just go ahead and drop a like, it shows me that this
information was helpful and I'm not asking you
to like the video now but at some point, if you're
watching it and you say, "Hey, this was pretty helpful." That little thumbs up button
certainly does help out. Lastly, a few quick disclaimers
I have to make here.
I am not a financial advisor. This is not financial advice. You need to do your own research before investing in anything out there. Don't do what some guy on the
internet just tells you to do. I'm not here to sell you any products. I'm not selling any courses
or anything like that. And lastly, I have been
getting a lot of scam comments down below where people
are impersonating me. They're trying to get
people to send money. That is not me. I wanna put up two comments
on the screen here. This is a comment that's from me. And you can see the check mark and the different way that it looks versus this scam comment that
doesn't have those things. So if you're communicating with
someone down in the comments and it's me, make sure I
have that check mark in place otherwise you better
bet that is a scammer, and they're trying to take your money.
Hopefully YouTube does a
better job at policing this but for the time being, it
is utterly out of control. And I don't really know what else to do other than make this disclaimer
in every single video. That being said, guys,
let's get right into it and start off with when can you retire? And to be honest with you guys,
it's a pretty simple answer but the way of figuring this out is a little bit more complicated and we're going to cover that later.
But the truth is when
you're able to retire is when you no longer need
to rely on active income to pay for your expenses. So most people out there have a mortgage, they have car payments, they have different monthly expenses. And so in order to retire, you have to make sure that all
of those expenses added up, and even those unforeseen
expenses that you can plan for. Well, your level of income derived from your different investments needs to be enough to
cover those expenses. Otherwise you may have to go out there and get a different job to supplement your retirement income. And so for most people that may not be the ideal retirement scenario. So short answer here, guys, you can retire when your passive investment
income exceeds your expenses, but the longer answer is there's a calculation we're
gonna use to figure this out, that we'll discuss later in the video.
So next up, what are your different
options for retirement income? Well, this pretty much comes down to anything out there that
can make you money, but there's pretty much three main areas where people derive retirement income. The first one is your personal savings and your personal investments. So maybe you're somebody
who's worked a job for your entire life and you've been slowly
contributing to that 401(k). And then maybe you also
have some IRA accounts. Maybe you have a Roth
IRA or a traditional IRA.
And then beyond that, you might have a nest
egg with your savings. Maybe you have the taxable
brokerage account as well. And the goal is for
eventually all these things to be able to provide income for you to not have to work in
order to pay for your bills. Now, the second area
where people derive income for retirement is social security. However, we've certainly
heard a lot about this in recent years, and I don't
think it's such a safe thing especially for young people
to be reliant on that in the future because
social security is kind of in shambles right now
where we don't know how long it's going to last. However, if you are
approaching retirement age, that may be something you can count on for the time being is deriving income from social security. However, social security
alone, 90% of the time is not going to be enough
money to pay for your expenses unless you're living in like the smallest apartment in your entire city and you pinch every penny. And at least for me that's not my idea of a good retirement.
And just a couple of statistics I wanna share with you guys
here about social security, 40% of those who are 60
and above are 100% reliant on social security as a means of income. And so, like we said, here,
there's three different ways people typically derive income, but most people are just fully
reliant on social security which is something to be worried about. And if you're a younger
person watching this video, you don't want to put
yourself in that situation. Another surprising statistic here is that the social security trust fund based on the current rates is likely going to run out around 2035.
Now, are they gonna let
it run out entirely? Probably not. What they're gonna do is probably decrease payouts over time, which means that those who are reliant on that as income are gonna start making less and less money if they have to decrease those payouts. So that is why you really
don't wanna be in the situation where your reliant on this
social security income as a means to sustain yourself. And then lastly, the third source of retirement income for most people that's becoming less and less common is something called a pension.
Now pensions vary from company to company. In the past, it was
typically a percentage of your highest earning year
basically paid to you in perpetuity until you are passed away. But what they found is that these things are not very
profitable for companies. And it's very rare to
find any companies today that still offer this pension. But if you're an older
person watching this nearing retirement age, you may still have a pension plan to derive income during retirement.
So your best case scenario
here for retirement is that you're deriving income from these three different sources. Number one, personal savings
and personal investments. Number two, social security,
number three, your pension. That's like the perfect
scenario for retirement. However, unfortunately
only about 6.8% of people over age 60 are deriving retirement income from all three of those sources. So the vast majority of people
probably don't have pensions and some unfortunately don't
have any personal savings or personal investments. So that's the big picture right now. And that's why it's very
important to have your ducks in a row and start thinking
about this early on and planning that way. You can try to have a a
three-legged stool here where you're able to derive
income from multiple sources.
You don't want to be fully reliant on social security or fully
reliant on pension income or personal investments, personal savings. You wanna have different
things that are able to generate income for you
that way you're diversified. Because basically people
who are deriving income from one source are balancing
on a one-legged stool. It's not very stable. You wanna have multiple legs
to that stool, ideally three. And of course in that personal investments and personal savings
category, there's a lot of different things that
fit under this category. For most people, it's stocks and bonds but a lot of people also invest in things like real
estate or precious metals. And there's a lot of people who literally will
just put all their money in real estate, build up, you know a portfolio of 30 or 40 units. And then they live off of
that rental income cashflow. So there's many different
ways to skin a cat here, guys but just understand that
your goal here should be to derive money from
multiple different sources and have three legs to that stool. So next up here, guys, let's
answer the question of, when should you start
saving for retirement? Well, short answer as
soon as humanly possible.
Now, what I mean by this is when you're younger and
your expenses are lower. Let's say you're in
your 20s and early 30s. Maybe you don't have kids yet. Maybe you're still
living with your parents. This is your prime opportunity
to put as much money as you can into your 401(k), maxing out Roth IRA contributions, and basically holding onto
as much money as you can and putting it in
something that grows value. Because the main factor in how much money you have in retirement isn't based on how much
money that you invest.
It's how much time you
allow that money to grow. So even if you're in your
20s or 30s watching this, and you're thinking, "I don't really have a ton that I could set aside right now." It doesn't matter how much you put aside, the main factor is the amount of time that you allow that money to grow. So just for an example here, guys if you're looking to have $1
million in your retirement let's say your 401(k) for example you could invest just $300 per
month, over a 40 year period earning the average return
from the stock market. Or if you wanted to do it in 20 years, you would have to invest $1,750 per month. That's almost six times
more money to get you to the same result. So you can either invest
a smaller amount of money for a much longer time or you're going to have
to invest a lot of money for a shorter window of time. So the sooner you start,
the better off you are. And I highly encourage you to check out a compound interest calculator and play around with some of those numbers if you are a young person
watching this video.
If you're already close to retirement age and you didn't do these
things, don't worry. I still have more options for you that we're going
to discuss in a little bit. And again, it's important
to understand that truly it's never too late to start saving and investing for retirement. So even if you are in your
50 and you have no assets, you should still do something. You know, doing something is
better than doing nothing. It's gonna be a lot harder because you don't have that much
time to let your money grow, but it's never too late.
It's just important to
understand the sooner you start the better off you are. So now, let's talk about where you should be saving
money for retirement. And there's a pretty simple
process to follow here that most financial experts agree on and I'm going to teach
it to you right now. So the very first thing you should do before investing your
money in the stock market and opening up different
investment accounts is to set up an emergency fund. And this is just simply a liquid account. It sits there in a online savings account or a savings account at your bank or maybe a certificate of deposit. And so what you want
here is a rainy day fund. So what most experts
recommend is setting aside three to six months of
all of your expenses. So what you wanna do is sit
down on a piece of paper write down every one of your expenses, your car payment, your mortgage,
groceries, utility bills and come up with that figure. Let's say for most people maybe it's $3,000 per month
is their monthly expenses.
Well, I would encourage you to save up six times that expense
in a liquid emergency fund. So your very first step is to have let's say anywhere from
10,000 to $20,000 parked in a savings account
where it just sits there in case of emergency. And then you're not going
to invest that money. You just leave it sitting there. And if you end up taking
money out for an emergency like a car repair or a medical expense, you replenish that fund and
you keep that amount there. And of course, if your monthly expenses
are going up over time, you're going to want to
adjust your emergency fund accordingly to make sure you
keep enough money in there. So that's your very first
step is, begin saving up money for an emergency fund and
aim have three to six months of expenses sitting in a liquid account. The very next thing you should do after you have your emergency fund in place is to take advantage of any employer match with the 401(k).
So if you're not familiar, the 401(k) is an employer
sponsored retirement plan which allows you to take money pre-tax and put it away for retirement. And it also gives you
a pretty nice write-off on your tax return, which is
something else to consider. Now, I don't recommend
putting all of your money into the 401(k) because
it's hard to access it and you'd have to pay taxes and penalties to get that money out. However, if your employer
is offering a company match, you should maximize whatever
they're offering you because that's literally free money. So back before I was a
full-time YouTuber guys, I used to work for a utility company and they didn't have a
pension or anything like that, but they did have a employer match. So every dollar I would put in, they would match me with an
additional 50 cents up to 6%. So what I would do is I put 6% of my paycheck into my 401(k)
and then they matched me 50%. So I got another 3% for free. So, effectively 9% of my total pay was going into my 401(k) every
single week automatically.
So after you have your
emergency fund established, or at least started. You don't have to have
all that money there before you move to step two. You just want to kind of start that and begin putting a little bit over there every single week to build up that fund. The next thing is to take advantage of those employer 401(k) matches. After that, if you have any
high-interest debt, you know like personal loans, credit
card debt, things like that. You wanna pay that debt off next, because the average
return you're gonna see from the stock market is somewhere
around 8 to 10% per year. And so if you have high-interest debt, like let's say you have a
credit card with 25% interest, the most wise move you can
make financially is to pay off that debt because you're
paying way more in interest than you're gonna earn as a return. If you had $1000 invested and you're gonna make 10% in one year, you're going to make $100.
If you have a $1000 on a credit card at 25% interest over
the course of one year you'd pay like 250 in interest. So even though you could invest
that $1,000 and make $100 you're still paying 250 in interest. So overall it's a net loss. So if you have high-interest debt, you got to get that paid down first before you begin investing in other stuff, just because that's your
wisest move financially. So after you have your
emergency fund in place and after you maximize your employer match and then you pay off your
high-interest debt, if applicable the next thing to consider is an IRA.
And in particular, I like the Roth IRA. Assuming you're able to contribute to this based on your level of income. Now I'm not gonna get into
a whole thing here guys on Roth IRA versus traditional IRA. I could probably spend 30 minutes on an entire video talking about that. So for now, we're just gonna
cover some very basic stuff about the Roth IRA. With your 401(k) as mentioned, you're contributing pre-tax income and you get the write-off. However, down the line when
you draw out of that account that is when you pay taxes. With the Roth IRA, you're actually contributing
post tax income. So you've already paid taxes on it, meaning you don't get any write-off. However, if you follow
the rules and you know you start drawing from
that by a certain age you don't actually have to pay taxes on the growth of your money.
So it's a very powerful account and it allows you to grow
your wealth tax free. The other advantage of the Roth IRA is you can pull out your
contributions at any time. So if you were putting a $2,000
per year of contributions into that Roth IRA, every single year, you can pull out those
contributions at any time, tax free, penalty free. You just can't touch the earnings or the growth of your money. So let's say you're putting
money into a Roth IRA. And then 10 years later, you decide that you want to invest in a
business or something. You can pull that money out
and pull your contributions out and not have to worry
about penalties and taxes.
So I liked the Roth because it's flexible, you can choose where you put that money. You can put it in stocks,
bonds, precious metals there's all kinds of different Roth IRAs. And you have access to that money where you can take out your contributions, if you do need to access it. So now assuming that you have
the emergency fund in place, you're maxing out your 401(k), you've paid off high-interest debt, you've maxed out Roth IRA
contributions for the year. After that, that's when
I would put that money into a taxable brokerage account where you're able to invest that money, you're able to touch it
you're able to access it.
The only thing is you pay
taxes on your dividends and taxes on those capital gains. But for the most part, that is the generally agreed upon plan for where you should save
money for retirement, is in these different things
that you have control of. And this is all within that category of your personal savings
and personal investments. As far as your pension goes that's all based on your employer, most of them are not
offering any pensions today. However, if they offer it and it's something you
have to contribute towards, if you expect to stay with
that employer for a long time and make a career out of it,
that is definitely a wise move.
And then you automatically pay into social security if
you are a W2 employee. So that's not really something
you have any choice over. So now let's go ahead
and cover how much money that you're going to
need in order to retire. Well, it's kind of a moving target and it's going to change
based on your lifestyle. I mean, are you looking to live in a one bedroom apartment and
drive a ten-year-old vehicle and you know, eat canned
beans for a living? Or do you want to retire
on a beach in Miami? So it all depends based on your lifestyle.
But there is again, another
generally accepted calculation that financial experts use, to calculate necessary retirement income. And it's something called the 4% rule that I'm gonna teach you right now. Also guys, just a quick reminder, I know I mentioned this earlier, but if you have found any
value in this video so far, a like would certainly be appreciated. It helps this video to be
shared with more people. And if you have any thoughts or questions leave me a comment down below. But anyways let's talk
about this 4% rule now.
Now, as far as the math behind this goes, I'm not going to get into it. If you wanna watch,
there's plenty of videos about the 4% rule that we'll
go into a lot more detail but essentially it's a
very simple calculation. What you're going to do,
is you're going to multiply your desired retirement income by 25. So let's say for example you wanna have $40,000 per
year of income in retirement. If that's how much money you want, you want to multiply that by 25. And that will tell you a rough idea of how much money you should have in your savings and your investments in your personal investment
and savings accounts. So for example, if you
wanted $40,000 per year, you would multiply that by 25 and you would come to the conclusion that you're going to want
to have $1 million saved and invested in these different accounts in order to sustainably derive $40,000 per year from that account
without running out of money.
Now, if you wanna be a
little bit more conservative, there is the 3% rule which
is going to be a multiple of around 33, but anywhere
between 25 to 33 times, your desired annual retirement income is how much money you
should have set aside saved and invested for retirement. So obviously guys, the main thing here is the
less money that you need per month based on your lifestyle, the less money you need saved and invested and the sooner you can retire. That's where that whole
FIRE movement comes from or Financially Independent Retire Early, that's people who live off of
as little money as possible. They save as much as possible and they aim to be retired in their 30s. And they're able to accomplish that by living off of as
little money as possible. I did a whole video on this
called how to retire by 30. If you guys wanna check it out at the end I will include a link down below. So now what I want to
cover here is what to do, if you're somebody who
doesn't have 25 to 33 times their desired annual income in a savings or retirement account.
Maybe you're already in
your 50s or early 60s. And you're saying, "What am I gonna do? I don't have money that's just going to fall out of thin air to put in this account,
what options do I have?" Well, let's cover those right now. The main things that you can do are surrounded by things
that you can control. And the main thing you can
control is how much money you're actually spending
during your retirement. So essentially you have two options.
You can try to make more money or you can try to spend less money. Now I'm more of a fan of
the offensive approach here which is figuring out
how to make more money. And so let's talk about that now. The first thing you could
do is figure out some kind of side hustle that you wanna
start maybe in retirement or maybe you wanna do this
before retirement and save up extra money and take all
that money and invest it. I've done a lot of videos
about side hustles. We're not going to get into them here but just understand that
this right here, this laptop this provides a lot of
opportunities to make money.
And it's certainly not rocket science, and I know a lot of people who in their later years have started
YouTube channels and blogs and these different things that allow them to make extra money on the side. So the first thing you wanna consider is, "Hey, let me look into
starting a side hustle." Second of all, pretty simple, spend less money now, pre-retirement. That way you can save
more money to invest. So if you're in your 40s
or 50s, and let's say for example, you're driving
a brand new luxury car and you're watching this
video and you're realizing, "Oh crap, I'm not
preparing for retirement." Maybe you make some
small sacrifices today, that allow you to save
and invest more money. So maybe you trade that car in and you get an economy vehicle and you take that difference
in your monthly payment, and you put that into your
Roth or your 401(k) instead. Another option, pretty simple, spend less money in retirement. We're gonna cover that
more in a little bit. I'm gonna give you guys some
tips on how you can do that.
And then lastly, option number four not the best one, which
is delaying retirement. Maybe you wanna push it
until age 70, age 75, which will allow you
to stay working longer. It will allow you to contribute money towards retirement accounts
and investment accounts longer and allow that money to
have more time to grow before you have to start drawing. So now what I wanna cover
here is a rough idea of how long your retirement
money is going to last. And I don't wanna sound morbid here guys but the truth is, you want
your retirement money to last until you pass away. And then you also wanna make
sure you have enough money sitting there to cover medical bills, funeral costs, and things like that because most people just
don't wanna be a burden on their family when they pass away.
Where they're out of
assets, they're in debt and then their family
has to scrape together 10 or 20 grand for a funeral. So it's not something that
we like to think about or really talk about but it is something that's important to prepare for. And so your goal here should
be to have enough money that you can have your money outlive you and cover some of those costs and maybe have a little
bit of money to pass on to your family as well,
maybe towards, you know college expenses or things like that. But anyway, let me give you
a couple of pointers here on, how long that money will last in a couple of different
factors to consider. Well, first of all how
long your money will last is going to largely depend
on your investments. Some of them are lower risk and some of them are higher risk. And so if you're investing
in higher risk assets, they may be more volatile but you may also see greater returns. On the other hand, if
you're super conservative and let's say you only put your money in fixed income assets, you may find that you're not taking on enough
risk, and you could find that your money doesn't last
as long as you need it to.
So, one of the main things
you have to understand with retirement is that asset mix. And for most people, it's a
split between stocks and bonds. And so that's the main
thing you wanna focus on is that allocation. If you'll have too much money in stocks and not enough in bonds, you might be taking on too much risk and your portfolio could be very volatile, going up and down in value all
the time, stressing you out. If you're too low-risk you might not be growing
your money fast enough and it might run out too soon. So figuring out that asset
mix is very important. Now as far as that number goes, there's a couple of different
rules of thumb out there, but one that most people agree upon is the 110 or the 120 rule. And it's based on your life expectancy. So, I actually am a fan of the 120 rule, which basically means
you take your current age and subtract it from 120. And that tells you how
much money you should have in stocks and the rest should be in bonds.
So for example, I am 25 years old, I would take 120 minus 25,
and that leaves me with 95. That tells me that 95% of my money should be in stocks and
only 5% should be in bonds. Whereas if we take a 70
year old, for example we would take 120 minus 70,
and that leaves us with 50. And that tells us that
50% should be in stocks, 50% should be in bonds. Now, of course, guys that
is a very basic example and it doesn't take into account your unique personal situation. So for exact numbers I
would actually recommend speaking with a financial
advisor and you don't necessarily have to have them manage your money, you can pay them for a
one-time consultation where you're basically saying,
"Hey I want you to tell me what my allocation should be, and help me understand how
that changes over time." But by far that's one of
the most important factors to consider is your asset
mix or asset allocation? Now in general guys, that 4%
rule that we discussed earlier has been pretty successful,
and most people have found that it lasts them around 30 years, which is a pretty long retirement.
That's about how long most
people expect to be around once they retire. However, the success of that
4% rule is largely dependent on that asset allocation we discussed. Because if you're not
taking on enough risk, and you're only earning
a very small return, you're going to dwindle
that money a lot sooner. Another important factor
to consider is taxation. And this varies based on the types of accounts that you have. As mentioned earlier, the Roth IRA is an account
where you put your money in and you pay taxes on the way in. But when you draw from that account you don't pay any taxes. Whereas with the 401(k)
it's tax-free going in but when you come out, you're
actually going to pay taxes.
So this tax situation
is largely dependent on your own investment accounts. Maybe one person has all
of their money in a Roth and somebody else has all
of their money in a 401(k). Those are vastly different tax situations. And this is a scenario again
where a financial advisor can look at this for you, and help you with some tax planning. And you can understand what
are the tax implications associated with your
different investments. So now that you have a
general idea of the factors that will tell you how
long your money will last, let's talk about some different ways to make your retirement money last longer. So the first thing you can do to make your money last longer, which is getting more and more popular is something called downsizing. So most people end up having a home where they raise their kids. And let's say that you're still
together with your spouse. You may now be in this situation where you have this three or four bedroom house, you're paying to heat all those bedrooms.
And you're maintaining this big house, when you're only utilizing
like 25% of that space. Even if your mortgage is paid off, you're still paying for
utilities and landscaping and things that on a much
larger property than you need. So you could downsize into an apartment or downsize into a smaller house. That's becoming more and more popular with the goal of reducing
your fixed monthly expenses. Another option, going back
to the side hustle idea, maybe you Airbnb, a part of your home or you do one of your bedrooms
or something like that, to figure out how to generate
income from that unused space.
But downsizing is a very popular option. Another one is reducing
your fixed expenses like your car payment, as
well as things like your utility payment and things
like your phone bill. So this is where I wanna
talk more about our sponsor for today's video, which is T-Mobile, because they have specific wireless plans designed for people in
retirement to save you money on those fixed monthly costs. So, 55 and up customers who live anywhere in the United States, not just Florida are able to get two lines
of unlimited talk, text and data on T-Mobile's network,
starting at under $30 each.
Which if you have an existing phone plan you have a general idea
of what you're paying, and I can tell you guys right now I'm paying a heck of a lot
more than $30 per line. Now you might be wondering if you're getting some really
cheap plan in the process and the answer is no. In fact, it comes with a lot
of different bells and whistles and extra perks. For example, it comes with the industry's best scam protection, unlimited
3G mobile hotspot data, international texting, no
annual service contracts, your very own dedicated
customer service team, as well as additional
free items here and there and discounts every single
week through T-Mobile Tuesdays. So oftentimes if you
switch from a carrier like, AT&T or Verizon, over to
T-Mobile with this plan, you could save upwards of
50% every single month. And while it may not sound
like a lot of money upfront when you factor in that cost
over the next 20 or 30 years, these little things you
can do to save money on those monthly expenses
really are going to add up. So if you are interested
in those 55 plus plans through T-Mobile, switching
carriers is very easy.
If you're ready to make the switch, you just have to stop
into a T-Mobile store, or you can call 1800 T-Mobile or visit T-mobile.com/55, and I'll go ahead and
include links to all of that as well as the phone number down below, if you guys wanna go
ahead and take advantage of those discounted plans. Now another thing you can do
to make your retirement money last longer is falling
into that category of delaying your retirement. You can also delay taking social security, and this can lead to you having
a larger monthly benefit. So for every year that you wait, you're going to get an
additional 8% in social security, every single month. And if you wait until age 70
to start taking social security you can get up to 24%
more every single month. So if you can delay retirement, and delay taking your
social security benefit, that can result in
additional monthly income. Another great strategy is exactly what we're talking about here, which is having a retirement spending plan before you stop working.
So you do things in advance
to get your ducks in a row. You cut down on recurring monthly expenses like your phone bill,
maybe you take advantage of something like
T-Mobile's 55 and up plans. Maybe you downsize, or you
decide to Airbnb a spare room as us as a side hustle. You just start planning early on before you hit retirement
age, and then you think, "Okay, I haven't planned for this at all. Let's get something going." You're better off to plan in the beginning and get your ducks in the row early. Another suggestion that I have is utilizing credit card reward
points, because a lot of people in their later years want
to travel during retirement. We're in a unique situation right now with the global pandemic,
but once it's safe to travel, that's a popular thing
in your retirement age is seeing the world.
Well, if you're able to
effectively use credit cards and get free points for
travel or free miles, that's another way to get
more bang for your buck. And as long as you're not paying interest on those credit cards and you're paying them
off every single month, I would highly recommend utilizing
credit card reward points and bonuses for travel. Lastly, one of the
things that you can do is make investments in your health to make sure that you're
not having a lot of medical stuff coming up in retirement.
Hopefully you have some
plan for health insurance. So let's say now that worst case scenario, you're somebody who is
in retirement right now and you're slowly realizing that you're going to run out of money. You don't have enough for that 4% rule and maybe you only have
one leg to your stool, which is social security. What options do you have available to you, if you know, you're going to fall short? First of all, as covered
earlier, you can reduce expenses or pick up a part-time job or side hustle.
A lot of people in
retirement end up working 10 or 15 hours per week on the side. Number one for something to do, and number two, just to
have extra spending money. Another option is to tap
into the value of your home with a home equity line of
credit or a reverse mortgage. That's pretty complicated, not gonna get into that
too much in this video, but if you want to hear more about that leave me a comment down below, and maybe I'll do a whole video talking about the reverse mortgage. Another option that you may explore is, if you have a life insurance policy, you may be able to tap into the value of your life insurance policy and get something called the cash value, if you draw on that early. Again, complicated subject
maybe a topic for another video but if you have a life insurance policy, you should sit down
with a financial planner or financial advisor and ask
them about those options.
And one thing I want to mention here is, if you're somebody who's in retirement and you know that your
money supplies dwindling, don't ignore this problem. There are things that you can do. The longer you wait the
worst it's going to be. So I would start addressing
these issues now. So just to wrap up here guys, one of the main things
that I want to recommend as a call to action is it
may be worthwhile to sit down with a fee only certified
financial planner.
It's gonna cost you a couple
of $100 out of pocket, but they're going to be
able to help you answer a lot of questions you may have, such as asset mix, asset allocation. There'll be able to look at your different retirement accounts
and help you understand the tax implications,
because on the surface retirement planning is pretty simple. It comes down to your
expenses, your income, your lifestyle needs, and basically what you're looking to get
out of your retirement. But when you look into
the individual details that each person has with
their different accounts, that's where it becomes more personalized and more complicated. So I think you're going
to get a lot of value out of a fee only
certified financial planner that you pay an hourly rate to, that way you can get unique information about your personal financial situation. At the end of the day here guys, if you fail to plan, you're
essentially planning to fail.
And I want to discourage
you from doing that. This isn't the most exciting topic and it's certainly not on
the top of my to-do list but retirement planning is very important. So I encourage you to take
action on this advice today. I thank you so much for
watching this video. I hope you've got a
lot of value out of it.
Let me know down in the
comment section below what your thoughts are on this. And if you made it to the
very end, let me know too because I'm always curious
how many people stick around for full videos. Lastly, one last, thank
you here to T-Mobile for sponsoring this video. I have a link down below, if you wanna check out
T-Mobile's essentials, 55 and up plan, which is a great option to minimize your monthly recurring
expenses in retirement, to make sure that money lasts longer. If this is your first time
seeing me make sure you subscribe and hit that bell for
future notifications, and on that I hope to see
you in the next video.
Can I Retire at 55? Tips for Early Retirement
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
If you'' re thinking about retiring at 55, you intend to beware concerning where you obtain your advice and support, which'' s since a lot of retirement guidance is geared toward those who retire quite a bit later, as a matter of fact … Most individuals retire at 62, yet things will be various for you if you'' re going to retire at'55. That'' s what we ' ll talk concerning for the following pair of minutes right here, we'' ll go over where you can get the cash from, and just how that functions with tax obligations as well as health care, then we'' ll appearance at some real numbers and also what it might look like for someone who retires at age 55. We might likewise intend to obtain philosophical simply quickly and ask the question, Why age 55? Yes, it'' s a good round number.And there are some fascinating tax methods that are readily available around that age, however allow ' s state you could retire a little earlier at 54, would certainly you wish to make that take place? Or if you worked a couple of more years … I recognize you ' ll believe this is insane, yet if you'functioned a number of even more years and also you could not influence your finances, but still take a few of those dream holidays as well as hang around with loved ones, would certainly that be worth it to maybe function until 59, for instance? So we want to figure out specifically why you are pursuing a specific goal and after that we can boost the opportunities of success for you, so let ' s begin with wellness insurance coverage, this is a challenging one because you'' re retiring a fair bit earlier than lots of people that could be near that Medicare age, so you have a variety of different options to continue being covered, and also it is an excellent concept to have actual medical insurance coverage simply in case something happens.So a couple of your options include, top, you can continue your present advantages from a job if you have them for as much as 18 months in many instances, and that ' s under COBRA or your state ' s continuation program, that can get quite pricey due to the fact that you ' re mosting likely to pay the full price', if you weren ' t currently doing that, plus possibly a teensy little bit additional for administration, but it is a way to proceed with the program that you currently have, to ensure that can be handy if you are mid stream in certain treatments or if it ' s mosting likely to be hard to get certain benefits that you currently have on a different health and wellness care program, however, that ' s not normally a long-term service due to the fact that we need to obtain you till age 65, which is when the majority of people enroll in Medicare, as well as you must see your prices drop a fair bit at that factor, perhaps depending on what occurs, so one more solution that a great deal of people check out is getting their own insurance coverage, which happens generally via a medical care industry or an exchange, and also that ' s where you just by coverage with an insurance policy company.So you can go straight to the insurance providers, yet it ' s typically a great suggestion to undergo … Begin at healthcare.gov,
and also after that experience the industry or the exchange, which means you can go shopping some strategies as well as potentially, depending upon your revenue, you can possibly obtain some cost decreases that make it a great deal extra inexpensive, I ' ll talk much more regarding that in a second, yet an additional choice is to switch over to a spouse ' s plan, if you occur to be wed which individual has coverage that ' s going to proceed'for whatever reason, that may additionally be a solution for you, when you leave your'job, maybe a certifying occasion that allows you to get on that person ' s program, however allow ' s chat even more concerning conserving cash on healthcare expenditures before age'65, the majority of individuals are going to get a policy based on the aspects that are most vital to them, to make sure that could be the costs or the out of pocket optimum, the deductible, the co pays, specific locations of protection, all that kind of point, you can pick a plan that fits your needs.Now, you could locate that those often tend to be fairly costly, as well as so if your revenue is listed below particular degrees, you may be able to get successfully a reduction in the costs, it may be in the form of a tax obligation debt or an aid, so right here ' s just a preview of just how things can seek you, let ' s claim your income is, allow ' s say 50,000 in retired life, and'you need to look at specifically what income means, yet there is no insurance coverage readily available from a spouse, we ' ve obtained one adult, and also let ' s claim you are … As our video recommend age 55 below, so you may obtain an advantage of roughly 422 a month, suggesting you might invest that much less every month, which ' s mosting likely to make it a great deal easier to pay for'insurance coverage on these plans, if we switch your income down to 25,000 per year, the assistance is also bigger, so as you can see by varying or regulating your revenue, as well as this is something you might have some control over if you retire at 55, you can additionally control your healthcare expenses, we ' ll talk about some conflicting goals here, where you may not wish to definitely lessen your income throughout these years, however this is essential for you to understand if you ' re mosting likely to be paying for your own insurance coverage, as well as if you'' re experiencing sticker label shock when you see the prices …'By the means, I ' m going to have a web link to this and also a bunch of various other sources in the summary listed below, so you can have fun with this same calculator yourself.Now, once you ' re on Medicare, the expense must go down a fair bit, this is a calculator from Integrity where we can'say, let ' s state you are a woman, and we ' re going to claim you ' re eligible for Medicare at this point, so we'' ll bring you'approximately age 65. It is mosting likely to be quite a little bit greater expense,'if you look at it prior to age 65, which ' s due to the fact that you are paying for those personal policies from insurer, allow ' s claim you ' re mosting likely to live until age 93, therefore you may expect to invest approximately 5800 6000 dollars per'year, depending on your wellness as well as your area and also various other aspects, it might be essentially, but this is a price quote of what someone may invest, a solitary female each year in retired life, naturally, that number is going to boost annually with rising cost of living and also deteriorating wellness issues. This is a ball park estimate of what you might be investing in the future, now we get to the inquiry of, do you have the economic resources to retire at 55? Which comes down to the earnings and also the possessions that you ' re mosting likely to draw from to offer the resources you require to buy the important things you'want as well as require, and also one method to look at this is to claim We intend to avoid early withdrawal fines due to the fact that once more, you are retiring at an age that ' s earlier than the regular senior citizen and also a lot of retirement accounts are made for you to take withdrawals at 59.5 or later on, to stay clear of those fines, the good news is, you have a number of options, so with private and joint accounts, simply taxed brokerage firm accounts, you can normally withdraw from those with no charges, however you might have funding gains taxes when you sell something, those taxes might go to a lower price than you would certainly pay if you take big withdrawals from pension, yet you just wish to double and also three-way check that, yet that can be a fluid resource of funds.You. Can also generally take out from Roth accounts pretty conveniently. So those routine payments come out initially, simply put, you can draw out your normal payments at any type of time without taxes as well as no penalties, what that indicates is that ' s the yearly restriction payments you may have been making her by year, so the 7000 per year, as an example. That cash would be easily obtainable, but if you have various other money types like Roth conversions, for example, you ' re going to be really careful and get in touch with your certified public accountant and also discover out what every one of that could look like. There. Are various other methods to access funds that are within pre tax retired life accounts, as well as it might actually make good sense to draw on those somewhat, we ' ll talk a lot more regarding that in a minute, yet these are a few of the tricks you can make use of to stay clear of an early withdrawal charge yet still attract on those assets prior to age 59.5. The very first one is the so called guideline of 55, so this uses if'you work at a work with, allow ' s state a 401K, as well as you quit working at that company at age 55 or later, if you fulfill particular requirements, after that you can withdraw those funds from the 401k so they go straight from the 401k to you.They wear ' t go over to an individual retirement account, you could withdraw those funds without a very early withdrawal fine. A difficulty below is that not every employer allows you to do that, so 401k strategies can establish a lot of their own guidelines, as well as among them could be that they wear
' t allow you just call them up and take cash whenever you desire, they may make you … Withdraw the whole amount, so if that ' s the situation, this isn ' t going to work, so make sure to triple contact your employer and also the plan vendors as well as figure out exactly just how this would certainly function logistically or if it will also function. Next, we have SEPP that stands for significantly equivalent periodic repayments or rule 72. This is a chance to attract funds from, let ' s say your IRA or a certain IRA that you choose, but prior to age 59 and also a half without getting early withdrawal penalties.Now, this is not my preferred selection. I don ' t always suggest this extremely typically in all, as well as the reason is because it ' s simple to slide up and also end up paying tax obligation charges. The factor for that remains in part that it ' s truly rigid, so when you establish this, You compute a quantity that you have to take out yearly, and also it has to be the'very same quantity every year, as well as you have to make certain you do that for the longer of when you turn age 59 1/2 or for five years. And also also that seems type of simple, yet it ' s still simple to trip'up, and you likewise have to stay clear of making any type of modifications to your accounts, so it ' s simply truly rigid as well as can be hard to stay with you, so … Not my favorite option, but maybe a choice. Those of you who work for governmental bodies, maybe a city company or something like that, you could have a 457b strategy, as well as those strategies do not have early withdrawal penalties prior to 59 as well as a half, so you can withdraw cash from that as well as utilize some income, pre pay some taxes, and also have some money to spend relatively conveniently, this incidentally, is an argument for leaving cash in your employer ' s 457 versus rolling it over to an IRA, because once it visits an IRA, you undergo those 59 1/2 policies and a possible early withdrawal penalty.So that could end up leaving you with 72 to deal with, as an example, which once more is not optimal. You might be asking, well shouldn ' t I just reduce'tax obligations and also hold off on paying taxes for as long as possible? As well as the response is not necessarily. It can make sense to go ahead and also pre pay some taxes by obtaining calculated, the reason for that is that you will at some point have to pay tax obligations on your pre tax cash as well as it could occur in a huge lump, as well as that can bump you up right into the highest tax obligation brackets, so it can be far better to smooth out the price at which you attract from those accounts as well as with any luck keep yourself in reduced tax obligation brace, at least reasonably speaking.So when your RMDs or your required minimum distributions kick in after age 72 under present regulation, that could potentially bump you up into the highest tax obligation brackets, possibly you want to smooth points out as well as take some income early. So let ' s take a look at the inquiry of, Do you have enough with some specific numbers, and prior to we eye those numbers, just wish to mention that I am Justin Pritchard. I help individuals prepare for retirement and also spend for the future. I ' ve got some great resources, I think, in the description below, several of the important things that we ' ve been chatting regarding right here today, as well as some general retired life intending information. If this is on your mind, I believe a great deal of that is going to be really useful for you. Please have a look at that and also allow me recognize what you assume of what you discover. It ' s also a great time for a pleasant pointer, This is simply a brief video clip, I can ' t possibly cover whatever. Please three-way and quadruple check'with some experts like a Certified public accountant or a financial consultant before you make any type of decisions, so allow ' s get back right into these questions, Do you have enough? As we constantly need to discuss, it depends upon where you are as well as exactly how much you invest as well as how things benefit you.Are you fortunate to retire into a good market, or are you unfortunate and also retiring into a negative market? All of these different facets are mosting likely to affect your success, but allow ' s jump over to my monetary preparation tool and also take a look at an instance. This is just a theoretical example, it ' s the world ' s most over streamlined example, so please keep that in mind, with a genuine individual, we ' ve got a lot much more taking place. The world is a complex place and
points get messier, however we ' re keeping it very easy below, just to chat about an instance of how things might look, so he or she has one million in pre tax possessions as well as 350,000 in a brokerage firm account, as well as if we just swiftly look at their dashboard right here, quite high likelihood of success, so allow ' s make it'a little bit'extra interesting and state … Maybe that individual retirement account has, let ' s state, 700,000 in it. What is that going to do? As well as incidentally, this is still a great deal greater than a great deal of individuals have, but once more, if you ' re going to be retiring at 55, you usually have rather low expenses and/or a great deal of assets.So let ' s remember here that retirees wear ' t always invest at a flat inflation changed level, and I ' ll get right into the assumptions below in a second, yet let ' s just take a look at if this individual spends at rising cost of living minus 1 %using the retired life costs “smile,” that significantly improves their opportunities, and I ' ve obtained video clips on why you may consider that as a potential reality, so you'can check into that later on at your leisure, yet as for the presumptions, we presume they spend about 50,000 a year, retire'at age 55. The returns are 5.5 %per year, and also inflation is 3%per year. Wouldn ' t that be freshening if we got 3%… So we eye their earnings below age 55, absolutely nothing', and afterwards Social Safety and security starts at 70. They ' re doing a Social Safety and security bridge method. I ' ve got video clips on that particular as well, or at the very least one video, the complete year starts here later, and also after that their Social Protection change for rising cost of living, considering their taxes, we have absolutely no taxes in these earlier years since they are just not pulling from those pre tax obligation accounts. Maybe not getting much, if anything, in regards to capital gains,'perhaps their reduction is wiping that out, so we might have a possibility right here to in fact do something and also once again, pre pay some tax obligations and pull some taxed revenue'forward.In reality, if we eye their federal income tax bracket, you can see that it ' s fairly reduced from 55 on, possibly they desire to draw some of this earnings ahead to ensure that later on in life, they are drawing whatever out of the pre tax obligation accounts simultaneously. It just depends on what ' s essential to you and what you intend to attempt to do, and that brings us to some tips for doing calculations, whether you are doing this with somebody, an economic coordinator or on your own, you intend to consider that space in between when you quit working as well as when your earnings advantages start from, allow ' s say, Social Protection, there ' s also that space between when you stop functioning and also when Medicare starts, and also that ' s an additional essential thing to check out, yet what are your approaches available there? Should you take some income, and precisely how much? That ' s going to be a location where you might have some control, so it ' s worth doing some excellent planning.We also desire to look very closely at the inflation and also investment returns, and also what are the assumptions in any kind of software application that you ' re making use of? These are truly important inputs and also they can considerably transform what takes place …'You saw what happened when we switched over from a level rising cost of living modified boost annually to the retirement costs smile, simply a refined little adjustment has a big distinction on how points unfold, as well as in that circumstance, by the means, we would normally have healthcare boosting at'a much faster rate.But like I said, we use an over streamlined example and didn ' t necessarily consist of that in
this case, yet you do intend to click via or ask concerns on what exactly are the presumptions and also are you on board with those assumptions?'You might additionally need to make some changes, and also this is just the fact of retiring at an early age when you may have 30 plus years of retired life left, a lot can happen, and there really is a whole lot of benefit to making small changes, particularly during market collisions, for example, so. If things are not necessarily going terrific, some little tweaks might possibly enhance the possibilities of success considerably, that might imply something as easy as avoiding a rising cost of living modification for a year or 2, or maybe dialing back some holiday spending.These are things you put on ' t intend to do, that ' s for certain, however with those little changes, you can potentially keep things on the right track, and that method you put on ' t need to go back to function or make bigger sacrifices. And also so I wish you located that valuable. If you did, please leave a fast thumbs up, thanks as well as take treatment.
Yes, it'' s a great round number.And there are some intriguing tax obligation approaches that are available around that age, however allow ' s state you could retire a little bit previously at 54, would certainly you want to make that occur? A problem below is that not every company allows you to do that, so 401k strategies can set a lot of their own policies, and one of them might be that they wear
' t allow you just call them up and take cash whenever you want, they could make you … Withdraw the whole quantity, so if that ' s the case, this isn ' t going to function, so be sure to three-way check with your employer and the plan suppliers and locate out precisely just how this would certainly work logistically or if it will certainly also function. It simply depends on what ' s important to you and also what you desire to attempt to do, as well as that brings us to some ideas for doing estimations, whether you are doing this with somebody, an economic planner or on your own, you want to look at that space between when you stop working as well as when your revenue benefits start from, let ' s claim, Social Protection, there ' s also that void between when you quit functioning as well as when Medicare starts, and that ' s one more essential point to look at, but what are your techniques readily available there? That ' s going to be an area where you might have some control, so it ' s worth doing some excellent planning.We additionally desire to look very closely at the inflation and also financial investment returns, and what are the assumptions in any software that you ' re using? If points are not necessarily going great, some little tweaks might potentially enhance the opportunities of success significantly, that might mean something as straightforward as skipping an inflation adjustment for a year or two, or possibly calling back some trip spending.These are points you wear ' t want to do, that ' s for certain, yet with those little changes, you can potentially keep points on track, as well as that way you put on ' t have to go back to work or make larger sacrifices.
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Our $3.7 Million Fat FIRE Strategy | New Investment Strategy to Retire Early by 45
Jason 0 Comments Career after Retirement Retire Wealthy
In september 2021, i published a video about our fat fire strategy in the amount of 2 8 million dollars and that video is still by far the best performing video, and it was like the 15th video i’ve ever made for this channel with less than 150 subscribers, our fat fire strategy, became the core of my youtube channel here at fireside chat and that video had a complete breakdown of our fire expenses like housing, health care and discretionary like travel, entertainment and fine dining. A lot has changed since that video was published in september 2021. We’re seeing a high inflation rate, like we’ve, never seen before, unless you’re a baby boomer who experienced high inflation in the 70s, the stock market, like the s p 500. Dow and nasdaq is down 20 25 or even 30 since the beginning of 2022. I also had a significant life event and i recently got married to my beautiful wife, whom i dated for over four years, and we’re still fine tuning our fat fire strategy to make sure that we can retire early together for uh by age 45. After doing several fat fire calculations based on our income, expenses, inflation and investment, we’re going to have to change our fat fire number from 2 8 million dollars to about 3 7 million dollars, and this is the most conservative conservative fat fire number. We came up with and we would also like to live in several locations and not just stay in one place during our retirement, which will increase our baseline expenses. If you’re brand new to my channel, my name is sai and welcome. So in this video. I’m gon na go over how we’re investing to achieve fat fire of 3 7 million dollars and how we’re, prioritizing our savings and investment based on our future expenses, so we can retire early from the 95 workforce. This is a juicy video and i hope you get a lot out of it. Also don’t forget to check out my grammarly affiliate link in the description below so the first thing we had to figure out was our fat fire number. Now we have several fire strategies like lean fire, which is for people who want to live a minimalistic lifestyle coast fire, which is for people who want to coast into normal retirement and barista fire, which is for people who want to take a part time job to Pay for health care expenses, while using their nest, eggs to pay for their retirement lifestyle, be sure to check out those videos, and i will put those links in the description below but fat. Fire is the lifestyle we want where we can truly enjoy our lives by traveling, the world and living in several locations. We don’t know what those countries are just yet, but we plan to travel overseas at least once or twice a year to do some research. So the first thing we have to do was to figure out our annual expenses. Originally, we would have been happy with just 100 000 a year in passive income using the 4 withdrawal rate. So what that means is that, with a 2 5 million dollar investment portfolio, we would withdraw 4 of that portfolio every year in the amount of one hundred thousand dollars. We would also have uh three hundred thousand dollars or ten percent of our total portfolio in cash or cds on the sideline. In case we experience a bear market, like we’re, seeing now in 2022, so we wouldn’t have to sell our stocks at a loss from our investment portfolio. Our baseline expenses will increase based on inflation, but that doesn’t mean every single expense. In our household is going to dramatically increase our mortgage payments, for example, will remain the same because they would be at a 30 year fixed mortgage rate, and another possibility is that we pay off our home completely if the mortgage rate stays above six percent for the Next 10 years, which would suck, in my opinion and, however, paying six six percent interest for our primary residence, wouldn’t be worth it anymore. If the stock market performs seven percent on average annually, even if the market performs 10 annually, the margin isn’t wide enough for us to justify to keep making mortgage payments. Then let me know in the comment section down below if you have a different, take or different approach on our strategy, i would estimate our baseline expenses between housing utilities, transportation, groceries and healthcare expenses to be anywhere around 50 and 75 000 a year based on a Three percent annual inflation rate and the only wild card we have is healthcare, and i can only imagine our healthcare expenses to continue to increase over the coming years and especially if we decide to retire in the us. We’re also going to have several properties in different states or different countries, and that will increase our basic housing expenses with our fat fire number at 3, 7 million dollars, the 4 withdrawal rate will be 148 000 a year. The 3 withdrawal rate will be around 111 000 a year if we end up not spending too much money due to a bear market or other short term catalysts. After the baseline expenses, we could spend anywhere between 36 and 61 000 a year on travel and entertainment. Keep in mind that we’re going to recalculate our fire number every year, based on our future expenses and inflation, make sure to watch the entire video, and i will show you our passive income sources and the investment strategy by the way. If you need help creating your own fire strategy, you can schedule a free one on one 20 minute financial coaching session by visiting fischer com, coaching for our fat fire strategy. We’re going to prioritize our savings and investments in this order. Cash for annual expenses like taxes – and we want to have at least 10 to 15 percent of our net worth in liquid assets. So if our net worth is a million dollars, then we want to have at least one hundred thousand dollars in cash or cash equivalent assets. The second priority is our retirement accounts like tsp pensions, iras and hsas, and i will talk more about that in a little bit. The third priority is our non retirement assets like the taxable brokerage accounts for our early retirement between the ages of 45 and 60. The fourth priority is our travel fund, entertainment and our daughter’s college fund. I also have a fire checklist that we follow and you can download for free by visiting fightcech com contact. We have our emergency fund in a completely separate savings, account that we do not touch unless it’s for emergency medical expenses or anything else that’s unexpected. Our rule is that we only use it if it’s an unexpected emergency, and i strongly encourage you to check out this video i made about the emergency fund and i will link that video in the description below just keep in mind that the differences between A rainy day fund and an emergency fund is that in a rainy day fund you need to cash right away for a blown tire, and an emergency fund is to cover your living expenses. While you’re looking for a new source of income and since we’re debt free and we have a fully funded emergency fund, we maxed out our tsp iras and hsas between my wife and i we contribute up to 50 000 a year, including our Employer matches and she has the nevada state pension fund, which is a lot different than the traditional retirement accounts like 401k or tsp. She contributes 15 of her income and her employer makes a 100 match to her personal contribution, and i can contribute up to 20 500 and another eight hundred dollars from my employer match to be exact. We contribute a total of forty, nine thousand six hundred and thirty one dollars, and we expect the contribution limits to increase over the years. We also prioritize our roth iras and since we exceed our roth ira income limits, we have to do what’s called a backdoor roth ira, and i will link that video in the description below we each contribute six thousand dollars to our traditional iras as non Deductible contributions and then we convert the six thousand dollars to our roth iras. That’s a total of twelve thousand dollars between the two of us and just keep in mind that the rules for roth iras are different like contributions, conversions and earnings. And i strongly encourage you to watch the video about the five year conversion ladder, so you have a better understanding of the roth ira conversion rules. We don’t plan to touch our roth iras until we’re in our 60s or 70s, because we want our roth ira race to grow tax free as much as possible and as long as possible. We expect to have about four million dollars total in our roth ira race. By the time we turn 60 Hsa is another investment account that we own through our employers, and i understand that not everyone is eligible to contribute to the hsa, especially if you have tricare hsa stands for health savings account and it’s completely different from the Healthcare fsa, which stands for flexible savings account and the hsa comes with triple tax advantages, so we can contribute to it in pre tax dollars, which lowers our taxable income. We can invest what we put in the hsa into an index fund like the s p, 500 index fund and the interest and earnings will grow tax free. We can also withdraw from our hsa tax free as long as as we use it for medical expenses and we keep every receipt from medical, dental and vision expenses we paid in cash, so we can get reimbursed for those expenses during our early retirement. When we turn 65, we can withdraw from our hsa for non medical expenses and only pay federal income taxes for the withdrawals. Since we file our taxes jointly, we contribute up to 7 300 a year for our family hsa. If we don’t make any withdrawals during our early retirement, we should have about two hundred and fifty thousand dollars by the time we turn 50 years old by age 65. We should have 1 2 million dollars in our hsa, with a 10 average annual rate of return between tsp state pension funds, uh roth iras and hsas. We’re contributing a total of 68 931 dollars just for the year 2022 and we’re expecting the contribution limits to increase, at least for the next few years, due to high inflation hsa’s contribution limits for 2023 is already increased from seventy. Three hundred dollars to seventy seven hundred dollars. I expect the contribution limits for iras to increase from six thousand dollars to possibly seven thousand dollars and 401k or tsp from 20 500 to possibly 21 500. We also contribute to our non retirement. Investment accounts, like the taxable brokerage accounts. We have one brokerage account that only invests in aggressive and high growth stocks. We have another brokerage account that only invests in income based stocks that pay quarterly dividends to their shareholders. We’re hoping to consistently invest 50 000. A year into these taxable brokerage accounts so that by the time we retire early in 2032, we would have at least one million dollars in our dividend: stock portfolio and another million dollars in our growth stock portfolio. If we maintain a four percent annual dividend yield in one of those accounts, we should make forty thousand dollars a year just in dividend income and keep in mind that the tax rate for dividends is also different from the federal income tax. We expect to have minimal earned income, and that puts us in that zero percent capital gains tax category based on my calculation, and if we make less than eighty four thousand dollars a year in earned income, our dividend tax rate should remain zero percent. As long as congress, doesn’t mess up mess up our tax rates, our goal is to minimize our taxes as much as possible during our early retirement. So now let’s go back to my fire checklist for a minute and we’re already saving over 60 of our income towards our retirement and non retirement accounts and whatever we have remaining usually goes to our travel and entertainment fund. And we call that our sinking funds – we’re, currently saving anywhere between 10 and 15 000 a year into our travel fund, and if we decide to travel more or our income continues to increase, then we’ll bump it up to our uh, maybe 20, To 30 000 a year, we’re also contributing to our daughter,’s. 529. It it’s projected to cover a significant amount of expenses for college tuitions. We’re not too worried about her college tuition because i already transferred my post 911 gi bill over to her and several years ago, and even if my daughter ends up not using the 529 college fund, i can change the beneficiary to my future grandkids or Even to myself, if i want to by the way you can get our free fire resources, including these spreadsheets, by visiting fischer com contact, you can also check out the fight such as shop, and i have all of my stuff on my bookshelf. At firesidechat com shopping. Now let’s talk about our income sources during our early retirement, if 2022 taught us anything and that is to diversify our income sources, so we don’t have all of our money in the stock market with 3 7 million dollars our net worth should Be anywhere between six and nine million dollars, one of our main sources of income is our dividend, and i’m gon na be very conservative here and say we’ll make anywhere between 40 and 50 000 a year in dividend income just from our taxable Brokerage account at the same time, we’re going to convert what we have in our traditional retirement accounts to our roth iras and that will trigger a taxable event right. However, since our earned income is zero because we will be retired, every 50 000 we convert from our traditional retirement accounts will be taxed at 12, as opposed to 32 percent based on our current income. So for every conversion we make from a traditional to a roth account there’s a five year waiting period before uh before we can withdraw that conversion, completely tax free from our roth ira. So what we’ll need to do is have extra cash to cover expenses during the first five years of conversion to keep our taxes at the lowest rate possible. So when we convert fifty thousand dollars in the year 2032, we will have to wait until january. First, 1st 2037 to make the 50 000 withdrawal completely tax, free and penalty free. We just need to make sure that we have enough cash or other income sources to cover between 2032 and 2037. This is a common fire strategy that early retirees use. So i strongly encourage you to check out this video about the 5 year conversion ladder. We prioritize our retirement accounts over our non retirement accounts because our retirement accounts, like the tsp pension fund, iras and hsas, are like a full back plan. If we decide not to retire early and we want to grow our tax advantage, retirement accounts as much as possible, so we can retire comfortably when we turn 60 years old, completely. Tax free and our primary focus is building our stock market and real estate portfolios. To make sure the money can last during our early retirement between the ages of 45 and 60, consistency and patience are the keys to our financial success. We’ll always invest up to the maximum contribution limits to our tsp ira and hsa and will save at least half of our income to both retirement and non retirement accounts. Whenever we experience a bear market like in 2022, we’re excited to invest in these stocks with a discount and it’s like going to a black friday sale at best buy and what’s different about this bear market is that we’re Dealing with high inflation as well, we increased our fire number because the prices we’re seeing now should be the prices we see five years from now, and i think a lot of these expenses are already priced in and we’re not going to see Much of a decline in the future, but instead there will be a slowdown in the inflation rate in 2023 and possibly into 2024. This is why budgeting is so important for everyone who is pursuing financial independence and retiring early from the 9 to 5 workforce, and if you want to know more about how to invest for your future, be sure to check out these two videos so that’s It i appreciate you watching my video don’t forget to subscribe and i hope to see you in the next video have a good one Music. You
Can You Really Retire in Your 30s?
Jason 0 Comments Career after Retirement Retire Wealthy
When the Social Security Act was passed in
1935, retirement officially began at 65. And the life expectancy at the time was 58. So from the very outset, “retirement”
wasn’t exactly considered a universal experience. But over the last century as life expectancies
have climbed, the concept of retirement has become synonymous with the final chapter in
a person’s life. Then, the book “Your Money or Your Life”
came out in the 90’s and introduced a radical concept The author, Vicki Robin, proposed that by
living with extreme frugality for a few years, younger people could essentially become “retired”
long before old age. She claimed to have achieved financial independence…
in her 20’s! Today, the phenomenon of financial independence
at a young age goes by the acronym “FIRE”. It stands for “Financial Independence; Retire
Early”. And it’s no fringe movement – FIRE has been
covered by the New York Times, Market Watch, and Forbes.
And it’s got more and more millenials wondering
“could I quit my day-job too?” This isn’t about dropping out of society
or living in a cave… necessarily. FIRE practitioners work extremely hard while
living far below their means for years to amass enough savings to leave the workforce. And it doesn’t mean you’ll spend your
newfound freedom just hanging out in bowling alleys like Jeff Lebowski. Many people who manage to retire early continue
to work–but only on projects they’re passionate about. But the question remains… is it possible
to achieve through savings alone? Peter Adeney, aka “Mr. Money Mustache”,
might be considered the modern FIRE movement’s founding father. Adeney was working as a software engineer
while living dramatically below his means during his 20’s. He took his savings and paid off debt and
invested it it in stock-index funds. By 2005 and in his early-30’s, Adeney and
his wife had amassed around $600,000 and a paid-for home. He calculated he had enough to leave the work-force-permanently.
Adeney suggests that Early-Retirement is possible
through three fundamental concepts: Frugality, Investing, and the “4% Rule” of withdrawals. Let’s face it – unless you luck into a large
windfall of cash, you’ll have to save up a serious nest egg to retire. And the simplest way to do that is to slash
your lifestyle. Normally, financial advisors suggest a 10-15%
savings rate to retire at a normal age of 65 or so. Want to retire ahead of schedule? Then you’ll have to level that up. Most early-retirees adopt a 50% to 75% savings
rate… or more! It’s not uncommon for them to cut restaurants
& bars, buy cheap cars, bike to work, make do with a smaller house, and avoid luxuries
like gyms, fancy vacations, and expensive hobbies. Simply stashing cash into a bank account is
a good start. But the FIRE proponents rely on the power
of the markets to boost their savings rates. Assuming you saved your money into a general
stock-market index fund, you might expect 7-10% rate of return, based on historical
averages.
Any experienced investor will tell you that
year-to-year returns will swing wildly, maybe even crash! So that’s where the third rule comes in… A 1998 study by Trinity University concluded
that a 4% annual withdrawal rate of your money in retirement should allow you to never out-live
your money – even in a bad economy. This means that even with the dramatic ups
and downs of the stock and bond market, as long as your yearly expenses stay below 4%
of your total savings, you should be able to live off them for… well, theoretically,
forever. Put another way: you take your annual spending
needs, then multiply it by 25. That’s the amount you need to become financially
independent. By now I imagine you’re wondering what it
would take if YOU wanted to to retire early. I think it’s time to… RUN THE NUMBERS! Let’s imagine you have a household income
of $85,000, but you live way below your means and only need $35,000/yr to be happy.
According to our rule of 4%, you’ll need
$875,000 in the bank in order to be financially independent. Through extreme thrift and aggressive cost-cutting,
you’re able to save $50,000/yr, which comes to 59% of your annual income. At that rate of savings, and assuming your
stock-index funds got an average return of 7%, you’ll have hit your goal in… 12 years. A good income, frugal living, and compound
interest are a powerful wealth-building combination. You might be wondering “What if I don’t
make a ton of money? Is this realistic?” A common critique of the Early Retirement
movement is that Adeney and other leaders of the movement had high-paying jobs in medicine
or engineering. Making big bucks can certainly speed up the
process. But it’s not a requirement. Take Jillian Johnsrud. She began working towards financial independence
at age 19. Her husband served in the armed forces and
she worked in customer service and sales. Over the next 13 years they made an average
household income of $60,000, with no year over six-figures. And by 32 Jillian had saved enough to be completely
financially independent. All while raising adopted & biological children
and climbing out of $52,000 of debt. She uses her freed-up time to travel the country,
write, and raise her children.
Today she does some work as a writer and coach,
but it’s on her terms. If you think that “early retirement” is
all about lounging around and avoiding work, you’ve missed the point. Instead, it’s about taking an active step
to replace a job you hate with work you love… and often finances are the biggest hurdle. As Adeney says about the FIRE phenomenon:
“Early retirement means quitting any job you wouldn’t do for free – but then
continuing right ahead with work in something that works for you, even when you don’t
need the money.” And if you’ve already got a fulfilling job
you love– congratulations, you already have the benefits of early retirement without having
to save up for it! So whether or not you want to sprint toward
early retirement, the mindset of reducing your lifestyle, living simpler, and building
a more rewarding work-life is something we should all be aiming for. And that’s our Two Cents! If you were to retire today, what would you do with your newfound freedom? Tell us about it in the comments.
F.I.R.E – 6 Uncomfortable Truths we discovered about Early Retirement & how to mitigate them
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
international hello what are the awful sides to.
retiring very early aren'' t you burnt out every day simply lying around not doing anything put on'' t. you individuals fret about running out of cash hello guys welcome back to one more beautiful.
day right here in Paradise Bali a lot of you have been asking me so several concerns like the.
above so today I'' m gon na go through six awkward facts concerning layoff.
along with my pointers for alleviating them based on our very own experiences reaching fire and.
being retired right here in Bali Indonesia for the past two years so unpleasant fact number.
one retired life is a journey not a destination for the document lying around throughout the day doing nothing.
in retirement is a misconception it'' s always wonderful to have a couple of days of that right here as well as there but in reality.
you do that for lengthy stretches of time and you'' re most likely mosting likely to be struck extremely really hard with.
sensations of boredom lack of self-worth and you'' re gon na be missing out on a sense of satisfaction retirement.
isn'' t a location like Bali or Boracay it actually is the start of a New Trip in your life it'' s. that stretch of time where you lastly do those points you wished to do yet always couldn'' t. since you were so busy generating income to survive it can be anything taking a trip the world.
Creating that publication or researching that claim cross stitch side hustle if you never get past the.
myth you'' ll probably wind up getting bored and after that finish up returning to function and missing out on out on this.
Remarkable Life Experience so like every other journey start preparing what is this impressive experience you.
wish to invest your retired life time as well as cash on number 2 if you obtained burnt out during your.
retirement stuff maybe you'' re doing it wrong so for a great deal of people their retired life Jam.
has to do with traveling the world right that'' s an incredibly common one and also it'' s fantastic fun you never ever
. feel extra alive and also it'' s such a terrific obstacle because in fact you need so several various abilities.
to travel properly appropriate you require Street smarts to navigate the towns and scams as well as other concerns.
on the road you need to be able to prepare your travel plan book the most effective traveling deals know just how.
to haggle your costs in addition to things like riding a motorbike as well as diving as well as at the.
start it'' s always epic it ' s so unbelievable yet on exhilaration as well as feeling of achievement begins to.
plateau and afterwards you'' re gon na strike that factor of lessening returns and also it wasn'' t just. in traveling either it was likewise my paint my services my making it through The Wanderer life thingy I.
discover that when love to stay largely undirected most Quests in fact often tend to lose their taste.
with time another method of putting this is maybe you feel yourself coming under torpidity or.
that functioned really well for me one either I begin piercing deep down right into the details of.
what I'' m doing or 2 I make it into a service take my dad cooking is his terrific love in retired life.
yet he'' s not just asking in any case for the fun of it the last couple of years he'' s in quest of cooking.
a tastier sourdough bread any person has actually ever before come across out of 365 days in a year he is possibly.
baked about I'' m presuming possibly 400 sourdough loaves 2 loaves each bake he tweaks the dishes.
the starter the strategy the components he does some reverse engineering of sourdough bread that'' s. commercially marketed outside it'' s been maybe 3 years as well as he'' s still going solid so he established his.
own special sourdough bread objective and Target and also criteria rather of just offering as well as yogurting.
for fun I became professional teachers in both as well as at some point started both a yoga exercise service and also.
a browse school and you know I discovered a lot much more regarding both in the entire process whatever.
Search around if you begin truly piercing down there'' s constantly more Improvement to be had.
much more individual growth to seek please claim you enjoy Ceramic wear'' t simply do it aimlessly to pass time.
polish up your abilities go into competitions end up being an expert Potter do compensations as your.
retired life side rush or teach pottery classes when you keep pressing on your own to those higher.
requirements due to the fact that you'' re either actually drilling down right into the craft of it or you'' re running it.
as a Business you'' ll locate brand-new measures of efficiency therein and you will certainly be burnt out not to.
mention if you'' re actually like us on lean fire whatever website income you generate will help defray.
the expense of your passions and also leisure activities so you put on'' t need to touch on your long-term Investments.'isn ' t that a truly excellent bargain so two years ago at the age of 38 I retired with my spouse below.
in Bali it'' s quite early by a lot of standards and it'' s been a totally remarkable journey we''
ve. found out a whole lot and I hope the insights we are showing to you people are valuable if you'' re on. your own fire Trip or currently neck deep in retirement smack that like button show us in.
the remarks listed below what your retired life appears like up until now how you'' re maintaining active and also whether you.
concur or disagree with the points we made below currently on the 3rd uncomfortable reality it'' s. hard that you need to safeguard your time you possibly retired so you can spend your time doing however.
you please whenever you please many of us will certainly have invested the vast bulk of Our Lives.
thus much making a living which suggests generally another person is routing your time either your.
boss or your customers and also we obtain really made use of to that so then in retirement self-directing your.
time becomes something brand-new as well as type of foreign as well as if you take a look at retired individuals in Singapore.
after functioning jobs that whole lives the majority of them finish on in retired life working as complimentary.
day care solutions for their grandchildren if that'' s their utmost desire and for some.
Typical older individuals it certainly is after that it'' s wonderful I ' m really
happy pleased themHowever for some it might not actually be that yet they find themselves doing it anyhow type of like by.
default because they'' re so used to permitting another person to direct their time for them there'' s. always going to be individuals around that will attempt to make use of your leisure time asking you to.
run tasks for them maybe or like for us right here in Bali we obtain numerous requests from both individuals.
we recognize personally as well as full strangers of the net asking us to do things like strategy their.
vacations reveal them around Bali Etc obviously we like hosting friends and also household and we.
delight in aiding individuals typically yet smartly speaking our very own private lives would certainly simply disappear.
if we were to delight all the requests we obtain you'' ll need to discover how to say no to individuals and. exactly how to strike equilibrium retirement is as much regarding sharing your time with the people who matter.
to you as it has to do with having time for your own personal growth and advancement simply be mindful.
unpleasant truth number 4 it'' s most likely gon na be simply you as well as your considerable various other from.
now on out so upon retired life your social scene is going to alter significantly everyone else is at.
job or active with their very own things you'' re either gon na have to find out to appreciate your own company.
a whole lot or if you'' re fortunate adequate to have retired with your considerable other that'' s who you ' ll. most likely be spending bulk of your retirement with so best learn to manage companionably great.
interaction is crucial as it'' s simply generally being a considerate and respectful human being via.
the pandemic and on the road this past decade I'' ve seen a lot of individuals who appear truly shocked.
by the person the other fifty percent absolutely is when they start retired life and start taking a trip with each other.
24 7 a day but building that Convenience to do things on your own and also building that fantastic.
relationship with your other half can also potentially be one of the most rewarding part of your.
retired life journey and also your individual growth prior to I share with you the 5th awkward.
reality simply the fast word from our enroller of today'' s video clip MooMoo Singapore the stock.
market is historically among one of the most preferred ways to be invested I myself hold.
a choose number of U.S Blue Chip stocks and ETFs and also for over 10 months now I'' ve been making use of.
the MooMoo Singapore platform the mobile app is intuitive quickly very easy to utilize I break out real-time.
information and also also degree 2 quotes plus the super affordable commission costs consisting of trading U.S.
supplies with no commission saves me so much cash for a minimal time now brand-new customers of MooMoo.
Singapore obtain a Kickstart with the financier starting kit worth up to 2086 dollars when you.
register and down payment a hundred Sing dollars right into the moon Universal account will neutrals in 2.
Sing bucks cash get daily for the very first 10 days that'' s a present of 20 Sing dollars absolutely.
free on a deposit of a hundred bucks or more down payment 2 thousand Sing dollars as well as do.
to buy professions you'' ll obtain one totally free Coca-Cola show to about 80 Sing dollars if you down payment.
ten thousand Sing dollars as well as execute 7 purchase professions they'' ll provide you a 108 Sing buck Money.
discount coupon no inquiries asked I strongly believe that in today'' s day as well as age to be economically capable.
necessarily indicates one have to be putting the cash to function for them somehow so why not.
make the most of these deals now for even more info click the web link in the summary listed below.
uncomfortable truth number five your cash strategies are never as foolproof as you think all retired life.
whether it'' s the normal kind or fire actually all come down to the monetary preparation behind it.
right as well as one of the most unpleasant truth of all may be that your retired life funds are never.
as sure-fire as you prepare for specifically if your strategies are expected to spend 30 40 also 50.
years in the case of very early retirement expert forecasts and also assumptions go incorrect you made a.
mistake in your profile planning as a result of all the customers that we all carry Bearishnesses occur.
blacks on events gray Rhino events so lots of points no matter the plan regardless of exactly how much stress.
screening you did prior to you dove into it the unexpected typically takes place as well as the quicker you come.
to terms with this unpleasant reality the quicker you can proceed to hatching out versus the risks.
You can predict most retired people they'' re functioning their monetary planning and also much less Help around.
the 4 percent drawdown policy right so the U.S stock exchange has had an incredible Run for the.
last 10 12 years or two now certainly points are looking a little various for the near.
future so those that have been traditional and also that have actually abstained from touching their long-lasting.
investments will have extra reproducing space currently to ride out this bearish market nonetheless long it may.
last buddies who have been following our journey for a while currently understand that a dominant portion of.
our retired life below in Bali consists of rental income from a variety of property Investments.
as well as however in the last two years considering that we started retirement Europe is a video game up in arms.
soaring Energy prices have increased the expense of living throughout the world and everywhere huge.
inflation is now a substantial concern fortunately we have so far taken care of to deal with whatever disturbances.
we'' ve experienced but primarily yet another unpleasant truth in retired life is that managing.
your money to make it last till the end takes up even more time than you assume wear'' t just go to rest on.
it continually look to expand the eggs in your basket and be open to adjusting your cash strategies.
like rebalancing your portfolio or changing how you invest your retirement Toolbox as different.
opportunities provide themselves for time you may not require to work for money any longer yet doing.
stuff that fuels your personal growth which produces some extra side revenue as a reward is.
never a Bad Point uncomfortable fact number six no factor sweating the tiny stuff y'' all understand I ' m. a big fan of simple frugal living as well as no pretenses whereas satisfied eating in an elegant restaurant.
as we are eating at the regional Battle areas right here sometimes extra pleased in fact yet a lot of us.
can additionally easily get carried away diving into with the itsy bitsy details of frugal living you.
recognize spending 2 hrs right here searching for offers as well as coupons that wind up conserving you 10 dollars three.
hours there finding out just how to maximize your air miles must you secure that 3.5 fixed.
deposit rate now or wait till next week where possibly it may be 3.7 I mean it can be fun.
and afterwards it can also be a poor use of your time you can do it if you delight in the obstacle.
feel in one’s bones that so long as you obtain the large stuff right your retirement is most likely mosting likely to function.
out just great so don'' t sweat the tiny stuff huge things include stuff like keeping top.
of your overall General expenditures you recognize doing your taxes right keeping a balance then.
Diversified profile so as lengthy as you keep in addition to every one of that I think that'' s regarding 95 of.
the huge picture truly alternatively what I'' m also saying is that if you explode your retired life.
funds by for example trying to go large or go residence on crypto no amount of voucher cutting is.
gon na save you from needing to go back to a task so yeah that'' s my take on not sweating the little.
things we'' re all retire at some factor of Our Lives whether early or late willingly or involuntarily.
all of it come down to choice as well as progressed preparation simply what I'' ve personally observed is that if.
you eliminated all the noise and distraction in life what do you believe are the genuine money we.
genuinely traded the means I see it is four points it'' s cash time Young people as well as health and wellness just consider it.
everything we do throughout our entire lives is actually us trading one of these for the other an.
layoff is that a person anomaly where you are in a position to invest all four money at the same time.
concurrently which maximizes your experience of life an actually clear image of this is.
traveling you can take a trip in your 60s and also 70s sure that'' s what a lot of individuals will certainly finish up doing and it'' s. wonderful you understand you see these folks really delighting in seeing brand-new points being very satisfied but it'' s usually.
in the kind of like great deals of cruise ship journeys around the globe and that'' s cool also but they'' ll never ever. experience what it'' s like to try finding out to browse or sail and getting all salted and burnt and also.
muscle mass achy but happily tired oh they'' ll never ever attempt anything even more vigorous and adventurous.
like say backpacking your method via Europe you understand crushing in brand-new hostels satisfying crazy individuals.
from Iceland or anywhere and also doing ridiculous points with each other all of us have 2 lives the life that we.
presently live and the life we could possibly live so then which life would certainly you choose inform me in.
the remarks below and put on'' t tell me you wouldn'' t retire early due to the fact that you simply wouldn'' t actually understand. what to do that'' s just a cop-out solution since yeah well you'' re too lazy to do the legwork.
and also try brand-new stuff as well as comprehend yourself thanks for seeing as constantly talk.
again following Saturday bye foreign.
How to Retire in 9 Years Starting With ZERO (A 5-Step Guide)
Jason 0 Comments Career after Retirement Retire Wealthy
are you over the age of 50 with no plan in sight for your retirement don't worry there's still hope it's never too late to get started hey guys welcome back to the channel in today's video we're going to teach you some tips on how to plan for your retirement even if you are starting late in life first of all you need to know that retirement is freedom which means that when you retire you should be able to do whatever you want whether to travel to your favorite destinations spend more time with your family or work on your own projects so let me take you through the steps of your journey to financial freedom first step is to cut your expenses write down all your monthly expenses think of your main fundamental expenses as your running cost as if you're running a company things like rent builds groceries internet so you can watch more of our videos and car payment remember that you could always find cheaper alternatives for some of your main expenses for example you could always move to a cheaper house and save on your rent or if you have a rental car you could rent a cheaper car that also matches your needs the key here is not to minimize your quality of life but to minimize the amount you spend on that quality now write down the other expenses that you could survive without this might differ from one person to another it could be your netflix or amazon prime subscription or it could be the designer clothes that you usually buy these are the items that you could totally scratch from your expenses the more you cut the more you save and in the fifth step i'm going to tell you how we are going to use all this extra money to get you even more money always remember that it's not about how much you earn is what you keep you could be earning much more than others but you're also spending much more than they do keep monitoring your expenses you can do this through a simple written list or even through apps such as zoho expense or expense point second step is to set your expectations remember when we said in the beginning of our video that retirement is freedom well you need to think of your freedom figure which is basically the amount of money you expect per year after your retirement now multiply this number by 25 i'm sure you will get a crazy seven figure number this is going to be your goal i bet you're thinking now that it's impossible but please don't close the video yet because in the last two steps i'm going to show you how you can make this possible you need to lower your expectations for the time being in order to get those results in the future it's a match a fight if you will wealth versus cash flow set your own goals for now and for the future not based on what you see around you or on social media it doesn't have to be a 25 million dollar mansion in beverly hills a huge yacht and a supercar but that doesn't mean you shouldn't be enjoying your retirement it's about being realistic and aware of your situation what you can achieve in the future third step is to consider working longer now i know what you must be thinking i'm watching this video to know how to retire early but bear with me you may retire by the age of 60 or even 65.
But if you retire by the age of 70 you are increasing your social security check to nearly double plus there's also more money going into your 401k what's 401k oh you didn't know well i will explain this in the next step if you can't bear the thought of staying at your current job any longer than you need to then you should look into quitting your current job and finding another one something that you will enjoy more you you'll be surprised at the amount of companies that are currently looking for workers with experience be aware of your physical health keep up with your regular medical check-ups eat healthfully do any form of physical exercise could be something as small as taking a relaxing walk every day all this keeps you energetic so that you may continue working at the top of your game fourth step is to open an investment account this account could be funded by the money you save as a result of cutting expenses remember step one or you could open a 401k account if you don't already have one a 401k plan is a company sponsored retirement account where employers can contribute their income and employers usually match contributions up to a certain amount there are two basic types of 401ks traditionally and roth which differ primarily in how they're taxed with a traditional 401k employee contributions are pre-tax meaning they've reduced taxable income ban withdrawals are taxed during retirement employee contributions to rough 401ks are made with after tax income there's no tax deduction in the contribution year but withdrawals are tax-free so if you don't have a 401k yet what are you waiting for start one and make use of all this non-taxable income now it's time to invest your money which takes us to the last step the fifth and last step is to increase your income well you can always ask for a raise in your current job if the thought of asking for more pay sounds daunting then you can try looking for a new job with a better salary which may not be as challenging as you think there are many ways to promote your skills and experience to other companies you can upload your resume to sites such as indeed.com or linkedin.com let the companies come to you but there is an even easier way to increase your income through a side hustle one of the easiest ways to do so is through creating an amazon individual seller account it's free to create but you need to pay a commission of 99 cents for every sale that you make on amazon not intrigued yet hear this according to a recent survey of amazon sellers twenty percent make between one thousand dollars and five thousand dollars per month which i believe is great for a side hustle or even a decent second income you can even sell your own private label products on amazon around 67 percent of all amazon sellers run their business using the private label method private labeling is a process of manufacturing a pre-existing item preferably with product improvements putting your branding and logos on it and selling it to consumers sometimes it is referred to as wide labeling or brand creation the process has been around for years and is common in countless retail stores targets mainstays brand and walmart's great value are two examples of private label brands your site hustle could also be building websites or content writing there are millions of ways to start a site hustle it's all based on the set of tools that you possess be sure to check out my videos covering this topic and i'll post a link in the description below and remember you can always learn a new skill and this skill could be your next source of income so never stop learning another way to increase your income is by creating a passive income stream passive means you don't actually need to actively trade your time for money you are basically making money while you sleep there are three ways to earn passive income stock markets you don't need to call a local broker anymore there are plenty of applications that you can use to trade stocks that's what makes it the easiest way to gain passive income i'll post some links in the description below for some of my favorite exchanges that i use to trade stocks and crypto cryptocurrency is part of the new modern era with many ways for you to earn passively if you are willing to accept its high risk prices of cryptocurrencies including bitcoin have been falling in 2022 amid a worldwide crypto price crash this could also mark a perfect opportunity to buy with prices being so low check out this video i made where i go over the top five cryptos that billionaire kevin o'leary from shark tank is currently investing in but remember be wise when investing in crypto never put in more than you are willing to lose other options include real estate it's harder to get into it as you need to save up enough to pay for a down payment once purchase you can then get a tenant to rent out the house which will cover payments on the mortgage and hopefully a bit more use any cash flow to pay down the principal faster after a few years you will have paid off the house and can now enjoy some free cash flow from your rental property the earlier you start doing this the sooner you can pay off the mortgage debt now that we have been through each of the five steps of your journey to freedom keep this in mind your life is not going to change unless you take the initiative a nine to five job alone is not enough to build wealth have faith in yourself have faith in your abilities you're not alone in this situation and if other people can do it so can you improve your physical and mental health this will keep you more focused and energetic to work on your goals and it saves you from spending a lot of money down the road on treatment and medications this is it for me today i hope this video has given you as much hope as it did to me don't forget to hit the like button and subscribe to our channel watch our previous videos you never know what piece of information could change 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The #1 Wealth KILLER
Jason 0 Comments Retire Wealthy
Albert Einstein once referred to compound interest as the 8th wonder of the world. Saying he who understands it earns it; he who doesn’t pays it. And he couldn’t have been more right. Today we’re going to be looking at the miracle that is compound interest and how can protect my retirement as it relates to the #1 killer of your wealth. Let’s get started. So the #1 wealth killer is debt. Yeah, I know, big shocker. But it’s really true and today we’re going to look at why that is.
The truth is, having too much debt can put a limit on your greatest wealth-building tool – your income. While it may be tempting to invest rather than pay off your debt, compound interest is a force to be reckoned with. In fact, I recently dedicated an entire video to its power. Financial advisors often use the example of Jane, who invests $100 per month ($1,200 per year) from the age of 18 to 25 and earns an average of 10% per year on her investments. By the time she stops investing at age 25, her nest egg will be worth just over $15,000.
However, before you start investing, it’s important to consider your debt load. Here are some reasons why paying off your debt first may be the smarter choice:
High-interest rates: Many forms of debt, such as credit card debt or personal loans, carry high-interest rates that can negate any potential investment gains.
Risk: Investing always carries some degree of risk, and if you have high levels of debt, taking on additional risk may not be advisable.
Stress: Debt can be a significant source of stress and anxiety, which can have negative impacts on your overall financial well-being.
Freedom: Paying off debt can give you a sense of freedom and control over your financial situation, allowing you to make better long-term decisions.
That being said, paying off debt doesn’t mean you can’t invest at all. Here are some steps you can take to balance debt repayment and investing:
Create a budget: Determine how much money you can allocate towards debt repayment and investing each month.
Focus on high-interest debt: Prioritize paying off high-interest debt first, as this will save you the most money in the long run.
Consider employer-matched retirement accounts: If your employer offers a retirement plan with a matching contribution, take advantage of it. This is essentially free money that can help you save for the future.
Seek professional advice: A financial advisor can help you create a personalized plan that takes your unique financial situation into account.
In conclusion, while compound interest is a powerful tool for building wealth, it’s important to consider your debt load before investing. Paying off high-interest debt should be a priority, but that doesn’t mean you can’t invest at all. By creating a budget, focusing on high-interest debt, taking advantage of employer-matched retirement accounts, and seeking professional advice, you can balance debt repayment and investing to achieve your financial goals.
Over the course of the next 45 years, those investments will continue to grow. Assuming that it continues to grow at an average annualized rate of 10% per year she will end up with $1.1 million in her portfolio at age 70. That’s all achieved with eight years of investing $100 a month. Jane becomes a millionaire by investing $9,600 of her own money. On the other hand, we have John. John doesn’t start investing at age 18. Instead, he starts at the age of 26 (just after Jane had finished all of her investing). He also invests $100 a month. However, unlike Jane, he does it from the age of 26 all the way until the age of 70. John invests $54,000 of his own money over the course of those years and ends up with a nest egg of just under $950,000. So John ends up with approximately $150,000 less than Jane. This is in spite of the fact that he invested six times more of his own money than she did.
It’s no secret that excessive debt can put a damper on your ability to build wealth using your most powerful tool – your income. While the concept of compound interest is widely known to be an effective way to grow your money over time, paying off debt may seem like a counterproductive move. However, it’s important to remember that not all investments are created equal, especially when you’re dealing with debt payments.
Let’s take a look at an example: Jane invests $100 a month for 7 years starting at 18 and ends up with a net worth of $1.1 million at the age of 70. Now, let’s say John starts investing $100 a month at the same age and earns an average of 10% per year, just like Jane. Even if John continues to invest until he’s 100 years old, Jane would still have more money than him, and her lead would only increase with time. In fact, at the age of 100, Jane would have $19.2 million to her name, while John would have $16.7 million. This just goes to show the power of compound interest, as famously called by Albert Einstein as the 8th Wonder of the world.
However, when it comes to investing, it’s important to consider the context of one’s financial situation. Comparing someone who is debt-free to someone who is not will not provide an accurate comparison. While Jane invested $100 a month for 7 years, John was dealing with debt payments and didn’t invest anything for those first 8 years. But what if John managed to free up an extra $200 a year, or less than $17 a month, by paying off his debts? In that case, he would come out ahead of Jane by the time they’re both 70. And if he freed up more money than that, he would pass Jane even earlier.
So, what’s the takeaway? While compound interest is undoubtedly a powerful tool, it’s important to also consider the impact of debt on one’s ability to invest. Paying off debt and freeing up funds for investment can ultimately lead to greater financial success in the long run.
And given the state of the average American debt situation, $17 a month in payments is a remarkably conservative estimate. According to articles in business insider,
CNBC, and Forbes the average American debt situation looks like this: About $9,000 in credit card debt which is
often split between several cards. $30,000 in student loan debt. And assuming a used vehicle was bought a little
over $21,000 on a car loan. That’s around $60,000 in total debt. If we assume 18% interest on the credit cards
and 4.5% interest on the other loans and terms of 5 and 10 years on the car loan and student
loan respectively, the minimum payments could be roughly $900 a month. Freeing up that much cashflow could make a
tremendous difference in the previous example. Let’s look back at John’s situation from before
and assume that his household’s debt situation was that of the average American. John uses his $100 a month of excess cash
flow to pay off these debts.
Based on the numbers it would take him roughly
six years to become debt-free. This is assuming he did not work any extra
hours or sell anything to get out of debt faster. Once he was debt-free he would have almost
$1,000 a month left over to invest. If he starts the process of becoming debt-free
at the age of 18 when Jane was starting to invest he would have become debt-free by his
24th birthday. If he then turned around and started investing
the full $1,000 a month he would actually be further along in his investments by his
25th birthday then Jane was. Granted this is largely because he has invested
more money than Jane has at this point. Jane by her 25th birthday had only invested
$8,400. That’s quite a bit less than John’s $12,000
but think of the potential payoff of this down the road if John keepS investing that
money.
He’ll also likely be able to lead a much
better lifestyle than Jane in the present due to his lower monthly expenses. Jane may eventually equal him in that regard
if she gets her debts paid off, but for those first several years after John is debt-free,
it is worth noting. Remember, compound interest is an incredibly
powerful mathematical force. But it can work just as hard against you as
it can for you. So it’s important to make sure that compound
interest is your ally in your finances, not your enemy. So with that being said how do we avoid this
killer of wealth? First, if you’re lucky enough to not have
any debt right now research some ways to ensure that you keep it that way.
If you’re planning to go to college look into
ESA or 529 plans. They are ways to start saving for college
while lowering your tax burden (which is always a nice perk). Also, look into scholarship opportunities
or PSEO. Don’t be afraid to have a summer job and work
during the school year part-time. For the record, this can also be a good option
in high school to give yourself a head start financially so long as it doesn’t take away
from your studies too much. Make sure that you always have an emergency
fund. It should contain three to six months worth
of expenses so that you don’t have to take on debt for those moments when life happens. Make sure you have insurance for those catastrophes
that you wouldn’t be able to cover with your savings. Catastrophic health emergencies are a good
candidate for this.
If you’re already in debt, learn about how
people have paid off their debts. Then choose the strategy that is most likely
to get you (and keep you) completely out of debt. Three of the most popular strategies are the
debt snowball, debt avalanche, and debt tsunami. I have done videos on all three of those and
they will be linked in the description. The debt snowball is the one made famous by
financial personalities such as Dave Ramsey. It has you order your debts from smallest
to largest balance and pay them off in that order regardless of the interest rates on
those debts. The plus side is the momentum you can build
up for yourself by quickly wiping out those bills. The downside is it isn’t the most mathematically
efficient way to get out of debt, all else being equal.
The debt avalanche is the more mathematically
efficient option if you can stick to it. It has you order your debts from highest to
lowest interest rate and pay them off in that order. This is regardless of the size of the loan
itself. The upside is the fact that you’ll be paying
less in interest. The downside is in some situations it may
take quite a while to get rid of that first bill. For those who are more motivated by seeing
the balances of the debts themselves going down this may not be much of an issue.
For those that are more motivated by the lowering
of bills, this could be an issue in some situations. The debt tsunami has you order your debts
from the most emotionally stressful to the least emotionally stressful and pay them off
in that order. In some cases, this could mean paying off
the largest balance that also has the lowest interest rate first. However in my experience that is not commonly
how it goes. Most of the people that I’ve seen use this
strategy tend to use it because there are personal loans between family or friends that
are causing a lot of stress in the relationship. The person with the debt uses the tsunami
to get rid of that loan first and then often switches to a different strategy such as the
snowball or avalanche. Which is another viable option for many people. There’s nothing stopping you from starting
with one strategy that will help get you going and then switching to another that will work
for you longer-term.
I know a lot of people who have started with
the snowball to get themselves some momentum and then switched to the avalanche once they
were on a roll so that they could save on interest. Another thing I would recommend looking into
is the power of the debt snowflake. If you haven’t heard, the debt snowflake is
a strategy where you find ways to free up money (or just happened to find the money)
that you can put towards your debt payoff strategy. The nice thing about it is it works well with
any of the other three strategies I mentioned. While by itself it isn’t game-changing it
does help your primary strategy do its job a little better. And as we know every little bit helps. If you need more motivation make sure to check
out Dave Ramsey’s YouTube channel and their debt-free screams playlist.
It’s filled with a lot of amazing stories
of people paying off loads of debt on various levels of income and getting to see their
relief when they are finally debt-free is very inspiring. You might also find their Turning Points playlist
interesting. It is essentially interviews of people who
have become debt-free talking about what made them decide to go through that process and
achieve that lifestyle. I’ll leave a link to both playlists in the
description as well..
How To Retire Early Through Property Investing | A Retirement Planning Pension Strategy
Jason 0 Comments Retirement Planning
Most people will likely consider it impossible when they come across this video’s thumbnail. However, I want to demonstrate how it is feasible to retire in two years by investing in a specific type of property, simply by taking action. My name is Tony Law from Your First Four Houses, and I coach individuals on how to construct a small property portfolio that produces a substantial income stream, enabling them to become financially independent and leave their regular jobs if they choose to. For 21 years, I worked in a kitchen business where I traded my time for money, but in under two years, I managed to substitute that kitchen income with a passive or relatively passive rental income. In this video, I’ll demonstrate how you can accomplish the same.
Now, let’s assume that you do not require 10,000 pounds per month to retire and live comfortably. The average household income in the UK appears to be between 28,000 to 35,000 pounds per year, depending on where you live, although living comfortably on that amount might be challenging for some. To keep things simple, let’s round it up to 42,000 pounds per year, which equates to 3,500 pounds per month in passive rental income. While some may think that figure is low, I believe most people could retire and live comfortably on that amount if they had no other expenses. So, we now have a clear objective to work towards.
When looking to earn a passive income of 3,500 pounds per month, the first step is to determine how many rental units are needed to achieve this goal. The number of properties required will depend on the deals and strategies employed, but for the purposes of this exercise, let’s assume an average cash flow of 500 pounds per month after all expenses. With this in mind, seven properties would be needed to generate 3,500 pounds per month. While this may seem daunting, it is achievable within a two-year timeframe with the right approach and effort.
Achieving a passive income of 3,500 pounds per month may seem like an impossible feat, but let me show you how it can be done. As a property investment coach, my goal is to help people build a small property portfolio that generates a great income, allowing them to achieve financial freedom.
To start, we need to break down the numbers. 3,500 pounds per month can be achieved with a portfolio of seven properties, each generating an average cashflow of 500 pounds per month. While this may seem daunting, I believe it can be accomplished in just two years with a ton of effort and action.
In the first year, you may acquire two to three properties, with the remaining four to five acquired in the second year as your experience and confidence grow. Although it won’t be easy, with hard work and dedication, you can achieve this target.
If you’re interested in learning about the 15 tasks you can do in the next seven days to help achieve your goals, check out my video. Property investing may require hard work, but the rewards are worth it. In just a couple of years, you can replace your income entirely.
To assist you on your journey, I have updated my 50 point checklist for buying investment properties. If you’re interested in receiving a copy, click the link provided or see the description box below. My goal is to help you achieve financial freedom through property investment.
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