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Kevin O’Leary: Why Early Retirement Doesn’t Work

This whole idea of financial independence retire early doesn't work. Let me tell you why. It happened to me. On the sale of my
first company, I achieved great liquidity and I
thought to myself, "Hey. I'm 36. I can retire now." I retired for three years. I was bored out of my mind. Working is not
just about money. People don't understand this very
often until they stop working. Work defines who you are. It provides a place where
you're social with people. It gives you interaction with people
all day long in an interesting way. It even helps you live longer
and is very, very good for brain health. Staying stimulated is how people
live into their 90s. I'm not kidding. So when am I retiring? Never. Never. I don't know where I'm going
after I'm dead, but I'll be working when I get there too.

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Retirement Community Arizona

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Things We Wished We Knew Before Retirement

Well it's great to be with you all again it's 
another video day for us – It is – So things that   we wish we knew before we retired almost 
sounds like a country music song there Tina   – And I guess you must be feeling lucky 
today Norm – Oh yeah got my lucky shirt   on so because we're filming been to 
Costco – Got the great deals haven't we   – We have so one of the things that we wish we knew 
before we retired was how free it is how stress   free no longer having to get up and go through the 
morning ritual of preparing yourself to go to work   and being accountable to somebody else all 
day long it's wonderful to be accountable to   your own self and your partner that's it 
you're your own person and it's such a freeing   feeling and we saw that with Tina when she gave 
up work the amount of stress we hadn't realized   until a few years after retirement just how 
different she was she'd lost all that stress of   meeting quotas and all that good stuff – And I think 
I'll just add Norm that when you're actually doing   the job you actually don't think it is stressful 
you don't think you are under all this   stress until you stop it do something else and 
you think wow this is a lot better we like this   it's great so just being accountable to ourselves 
we love it don't we – It is totally life changing   – One thing that we do think is very important 
before you retire is you do need to have a   discussion with your partner as to what it is 
that the ideas that you're both thinking you   have when you're going to retire you do need to 
have some goals about, do you want to travel do   you want to garden or do hobbies do you want 
to stay home you really do need to have that   conversation to make sure you're both on the 
same page – I think it is it is important and   we hear a lot from some comments especially 
married women who are saying that their husband   their frightened the husband will get under their feet 
because he'll be hanging around all the time in   retirement but that really isn't the case – Not 
for us is it – We've been secure as a couple for   the longest time and retirement hasn't changed 
how we feel about each other and about what   our expectations of each other is it's not as if 
we've all of a sudden being locked up together in   retirement (no) so it is important to figure out 
what you both want out of retirement and to have   that discussion a few years before you actually 
do retire (yeah) one thing to bear in mind is   the first few years of your retirement you'll 
be your most healthy so just use that health and   strength that you do have in the early years 
to achieve some of the goals that you want   – Yeah and if you want to be traveling do it while 
you've got that – Don't think about traveling if   that's on your list just do it right away – Yeah 
absolutely and that's what we've done isn't   it when we retired we just traveled everywhere 
didn't we it was great – About two years before we   retired we had an inspector come to the house 
for I don't even remember what it was but it was   some form of home inspection that we had to and 
so we got chatting with him because he was a few   years older than us but not that much and he told 
us that he had a house very similar to ours that   he had sold and now he was living an apartment 
and he went through the whole process of them   and how they moved to the apartment and how 
it was such an improvement on their life   and it was something we'd never ever considered 
– This was big news to us wasn't it we never even   thought about renting an apartment – We had been 
homeowners since we were 19 years old so to rent   we had that preconceived idea that it was throwing 
money away but the more that we looked into it so   after he left the next couple of days we spent 
many hours thinking about this we did a budget   of how much it cost to keep our mortgage free 
home – Yeah crunched all the numbers – And what the   rent would be and if we had sold the house and it 
made more and more sense to us to sell the house   to downsize into an apartment bank the money 
from the house live off that as an investment and   that's what we did – And that's what we did didn't 
we – But had that guy not come to our house we might   never have come up with that idea – No because 
originally we had thought that we would just   buy a smaller house didn't we – That's right yeah 
– So part of our decision when we had actually now   decided that we were going to rent and we realized 
that would take care of we wouldn't have all this   maintenance and stuff like that to do we decided 
after we started looking at apartments that if   we moved to a cheaper area could we benefit by 
getting the same as what we wanted in an apartment   but would it cost us less money so the more 
we looked into it we did have a family member   who lived in a cheaper place so we looked 
at the equivalent of renting an apartment   in this new place and it was so much cheaper 
wasn't it Norm – Because we initially thought   we would just sell our house and stay in 
the same area so we started shopping for   apartments to find out how much they cost and the 
availability and we were pretty surprised that   at the expense of them but we were prepared 
to pay that (yeah) and then we came to a what   you would call it a small town that's cheaper 
(yeah) we came to visit a family member here and so   we started looking around at the apartments here 
and they were substantially cheaper about $800   a month cheaper than where we were initially going 
to – Yeah and not only that Norm there was a lot of   extras with it wasn't that we got there was 
underground parking and what else a swimming pool   – And laundry facilities in the apartment – And that 
was one thing the gentleman had told us he didn't   have on-suite laundry he had it in a laundry room 
so we wanted that – But coming to the cheaper town   it wasn't just the rents that were 
cheaper everything was cheaper   the Tina's hairdresser as we've 
said in the past was cheaper it just permeated everything so our budget became 
so attainable (yeah) by moving – That gave us a lot   more money to be able to travel didn't it because 
we thought if we can save money on a daily basis   and it worked perfect didn't it – It did it was 
great, take a look at that if you do have family   that live in an area that might be cheaper or 
just consider going not knowing anybody – No it's   like a new adventure isn't it a new chapter in 
your life because we've made friends here and   they don't have any family just here but they've 
made it a new place for them haven't they – A lot   of people have moved out of the big cities to a 
small town because it's it's far more conducive to   retirement (yes) and friendlier another 
thing that you really need to consider   is where your friends are going to come from 
in retirement because once you leave work   those friendships tend to wither away because 
the only common bond you have was your job   your workplace so we've never 
really had lasting friendships from   work colleagues they've always been outside 
of there so it's it's critically important   to continue looking for friendships in retirement 
and being outgoing and prepared to speak to people   Tina when we moved to this apartment building 
they did have a social room and they did a coffee   morning and so she would go down there and we 
found out so much information about the town and   businesses to use – It was great wasn't it – It was – It 
was kind of my mission wasn't it to find out   new information and to try and make new friends 
which we did and we made some fabulous friendships   – Well in particular there was one couple that Tina 
made struck up a friendship with and they in turn   have introduced us to another couple yeah and then 
they in turn have introduced us to another couple   so that's how it goes – Yeah so now we've got 
a group of really close nice friends that we   socialize with don't we – And the thing that we have 
in common isn't an employer it's being retired   – It is isn't it – It really is so don't be afraid 
of striking out to a new city a new town   because it's relatively easy to make friendships 
– Yeah you just have to push yourself out there   a little don't you and be confident to going to 
things and it's very exciting isn't it so we hope   that everybody is staying safe – And keeping 
well – Until the next time bye bye, bye bye

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Can I Retire at 55? Tips for Early Retirement

If you're thinking of retiring at 55, you want to be careful about where you get your advice and guidance, and that's because most retirement advice is geared toward those who retire quite a bit later, in fact… Most people retire at 62, but things will be different for you if you're going to retire at 55. So that's what we'll talk about for the next couple of minutes here, we'll go over where you can get the money from, and how that works with taxes as well as healthcare, then we'll look at some actual numbers and what it might look like for somebody who retires at age 55.

We might also want to get philosophical just briefly and ask the question, Why age 55? Yes, it's a nice round number. And there are some interesting tax strategies that are available around that age, but let's say you could retire a little bit earlier at 54, would you want to make that happen? Or if you worked a few more years… I know you'll think this is crazy, but if you worked a couple of more years and you could not impact your finances, but still take some of those dream vacations and spend time with loved ones, would that be worth it to maybe work until 59, for example? So we want to figure out exactly why you are pursuing a particular goal and then we can improve the chances of success for you, so let's start with health coverage, this is a tricky one because you're retiring quite a bit earlier than most people who might be near that Medicare age, so you have a number of different options to continue being covered, and it is a good idea to have real health insurance coverage just in case something happens.

So a couple of your choices include, number one, you can continue your current benefits from a job if you have them for up to 18 months in most cases, and that's under COBRA or your state's continuation program, that can get quite expensive because you're going to pay the full price, if you weren't already doing that, plus perhaps a teeny little bit extra for administration, but it is a way to continue with the program that you currently have, so that can be helpful if you are mid stream in certain treatments or if it's going to be hard to get certain benefits that you currently have on a different health care program, unfortunately, that's not usually a long term solution because we need to get you until age 65, which is when most people enroll in Medicare, and you should see your costs go down quite a bit at that point, maybe depending on what happens, so another solution that a lot of people look at is buying their own coverage, and that happens typically through a healthcare marketplace or an exchange, and that's where you just by coverage through an insurance company.

So you can go directly to the insurers, but it's often a good idea to go through… Start at healthcare.gov, and then go through the marketplace or the exchange, and that way you can shop some plans and potentially, depending on your income, you can potentially get some cost reductions that make it a lot more affordable, I'll talk more about that in a second, but another option is to switch to a spouse's plan, if you happen to be married and that person has coverage that's going to continue for whatever reason, that might also be a solution for you, when you leave your job, it could be a qualifying event that allows you to get on that person's program, but let's talk more about saving money on health care expenses before age 65, most people are going to buy a policy based on the factors that are most important to them, so that could be the premium or the out of pocket maximum, the deductible, the co pays, certain areas of coverage, all that kind of thing, you can select a plan that fits your needs.

Now, you might find that those tend to be quite expensive, and so if your income is below certain levels, you might be able to get effectively a reduction in the premium, it might be in the form of a tax credit or a subsidy, so here's just a preview of how things could look for you, let's say your income is, let's say 50,000 in retirement, and you need to look at exactly what income means, but there is no coverage available from a spouse, we've got one adult, and let's say you are… As our video suggest age 55 here, so you might get a benefit of roughly 422 a month, meaning you could spend that much less each month, and that's going to make it a lot easier to pay for coverage on these plans, if we switch your income down to 25,000 per year, the help is even bigger, so as you can see by varying or controlling your income, and this is something you might have some control over if you retire at 55, you can also control your healthcare costs, we'll talk about some conflicting goals here, where you might not want to absolutely minimize your income during these years, but this is important for you to know if you're going to be paying for your own coverage, and if you're experiencing sticker shock when you see the prices…

By the way, I'm going to have a link to this and a bunch of other resources in the description below, so you can play with this same calculator yourself. Now, once you're on Medicare, the cost should drop quite a bit, this is a calculator from Fidelity where we can say, let's say you are a female, and we're going to say you're eligible for Medicare at this point, so we'll bring you up to age 65. It is going to be quite a bit higher cost, if you look at it before age 65, and that's because you are paying for those private policies from insurance companies, let's say you're going to live until age 93, and so you might expect to spend roughly 5800 6000 bucks per year, depending on your health and your location and other factors, it could be more or less, but this is an estimate of what somebody might spend, a single woman each year in retirement, of course, that number is going to increase each year with inflation and deteriorating health issues.

But this is a ballpark estimate of what you might be spending in the future, now we get to the question of, do you have the financial resources to retire at 55? And that comes down to the income and the assets that you're going to draw from to provide the resources you need to buy the things you want and need, and one way to look at this is to say We want to avoid early withdrawal penalties because again, you are retiring at an age that's earlier than the typical retiree and most retirement accounts are designed for you to take withdrawals at 59.5 or later, to avoid those penalties, fortunately, you have a couple of options, so with individual and joint accounts, just taxable brokerage accounts, you can typically withdraw from those without any penalties, but you may have capital gains taxes when you sell something, those taxes may be at a lower rate than you would pay if you take big withdrawals from retirement accounts, but you just want to double and triple check that, but that can be a liquid source of funds.

You. Can also typically withdraw from Roth accounts pretty easily. So those regular contributions come out first, in other words, you can pull out your regular contributions at any time with no taxes and no penalties, what that means is that's the annual limit contributions you might have been making her by year, so the 7000 per year, for example. That money would be easily accessible, but if you have other money types like Roth conversions, for example, you're going to be very careful and check with your CPA and find out what all of that could look like. There. Are other ways to get at funds that are inside of pre tax retirement accounts, and it might actually make sense to draw on those to some extent, we'll talk more about that in a minute, but these are some of the tricks you can use to avoid an early withdrawal penalty yet still draw on those assets before age 59.5.

The first one is the so called rule of 55, so this applies if you work at a job with, let's say a 401K, and you stop working at that employer at age 55 or later, if you meet certain criteria, then you can withdraw those funds from the 401k so they go directly from the 401k to you. They don't go over to an IRA, you could withdraw those funds without an early withdrawal penalty. A complication here is that not every employer allows you to do that, so 401k plans can set a bunch of their own rules, and one of them might be that they don't let you just call them up and take money whenever you want, they might make you… Withdraw the entire amount, so if that's the case, this isn't going to work, so be sure to triple check with your employer and the plan vendors and find out exactly how this would work logistically or if it will even work.

Next, we have SEPP that stands for substantially equal periodic payments or rule 72. This is an opportunity to draw funds from, let's say your IRA or a certain IRA that you choose, but before age 59 and a half without getting early withdrawal penalties. Now, this is not my favorite choice. I don't necessarily recommend this very often at all, and the reason is because it's easy to slip up and end up paying tax penalties. The reason for that is in part that it's really rigid, so when you establish this, You calculate an amount that you have to take out every year, and it has to be the same amount every year, and you have to make sure you do that for the longer of when you turn age 59 1/2 or for five years.

And even that sounds kind of simple, but it's still easy to trip up, and you also have to avoid making any kind of changes to your accounts, so it's just really rigid and can be difficult to stick to you, so… Not my favorite choice, but it could be an option. Those of you who work for governmental bodies, maybe a city organization or something like that, you might have a 457b plan, and those plans do not have early withdrawal penalties before 59 and a half, so you could withdraw money from that and use some income, pre pay some taxes, and have some money to spend fairly easily, this by the way, is an argument for leaving money in your employer's 457 versus rolling it over to an IRA, because once it goes over to an IRA, you are subject to those 59 1/2 rules and a potential early withdrawal penalty.

So that could end up leaving you with 72 to work with, for example, which again is not ideal. So you might be asking, well shouldn't I just minimize taxes and hold off on paying taxes for as long as possible? And the answer is not necessarily. So it could make sense to go ahead and pre pay some taxes by getting strategic, the reason for that is that you will eventually have to pay taxes on your pre tax money and it might happen in a big lump, and that can bump you up into the highest tax brackets, so it could be better to smooth out the rate at which you draw from those accounts and hopefully keep yourself in lower tax bracket, at least relatively speaking. So when your RMDs or your required minimum distributions kick in after age 72 under current law, that could possibly bump you up into the highest tax brackets, maybe you want to smooth things out and take some income early.

So let's look at the question of, Do you have enough with some specific numbers, and before we glance at those numbers, just want to mention that I am Justin Pritchard. I help people plan for retirement and invest for the future. I've got some good resources, I think, in the description below, some of the things that we've been talking about here today, as well as some general retirement planning information. So if this is on your mind, I think a lot of that is going to be really helpful for you. Please take a look at that and let me know what you think of what you find. It's also a good time for a friendly reminder, This is just a short video, I can't possibly cover everything. So please triple and quadruple check with some professionals like a CPA or a financial advisor before you make any decisions, so let's get back into these questions, Do you have enough? As we always need to mention, it depends on where you are and how much you spend and how things work for you. Are you lucky to retire into a good market, or are you unlucky and retiring into a bad market? All of these different aspects are going to affect your success, but let's jump over to my financial planning tool and take a look at an example.

This is just a hypothetical example, it's the world's most over simplified example, so please keep that in mind, with a real person, we've got a lot more going on. The world is a complicated place and things get messier, but we're keeping it very simple here, just to talk about an example of how things might look, so this person has one million in pre tax assets and 350,000 in a brokerage account, and if we just quickly glance at their dashboard here, pretty high probability of success, so let's make it a little bit more interesting and say…

Maybe that IRA has, let's say, 700,000 in it. What is that going to do? And by the way, this is still a lot more than a lot of people have, but again, if you're going to be retiring at 55, you typically have quite low expenses and/or a lot of assets. So let's keep in mind here that retirees don't necessarily spend at a flat inflation adjusted level, and I'll get into the assumptions here in a second, but let's just look at if this person spends at inflation minus 1% using the retirement spending "smile," that dramatically improves their chances, and I've got videos on why you might consider that as a potential reality, so you can look into that later at your leisure, but as far as the assumptions, we assume they spend about 50,000 a year, retire at age 55.

The returns are 5.5% per year, and inflation is 3% per year. Wouldn't that be refreshing if we got 3%… So we glance at their income here age 55, nothing, and then Social Security kicks in at 70. They're doing a Social Security bridge strategy. I've got videos on that as well, or at least one video, the full year kicks in here later, and then their Social Security adjust for inflation, looking at their taxes, we have zero taxes in these earlier years because they are just not pulling from those pre tax accounts. Maybe not getting much, if anything, in terms of capital gains, maybe their deduction is wiping that out, so we may have an opportunity here to actually do something and again, pre pay some taxes and pull some taxable income forward. In fact, if we glance at their federal income tax bracket, you can see that it's fairly low from 55 on, maybe they want to pull some of this income forward so that later in life, they are drawing everything out of the pre tax accounts all at once.

It just depends on what's important to you and what you want to try to do, and that brings us to some tips for doing calculations, whether you are doing this with somebody, a financial planner or on your own, you want to look at that gap between when you stop working and when your income benefits begin from, let's say, Social Security, there's also that gap between when you stop working and when Medicare starts, and that's another important thing to look at, but what are your strategies available there? Should you take some income, and exactly how much? That's going to be an area where you might have some control, so it's worth doing some good planning. We also want to look closely at the inflation and investment returns, and what are the assumptions in any software that you're using, for example? These are really important inputs and they can dramatically change what happens… You saw what happened when we switched from a flat inflation adjusted increase each year to the retirement spending smile, just a subtle little adjustment has a big difference on how things unfold, and in that scenario, by the way, we would typically have healthcare increasing at a faster rate.

But like I said, we use an over simplified example and didn't necessarily include that in this case, but you do want to click through or ask questions on what exactly are the assumptions and are you on board with those assumptions? You may also need to make some adjustments, and this is just the reality of retiring at an early age when you may have 30 plus years of retirement left, a lot can happen, and there really is a lot of benefit to making slight adjustments, especially during market crashes, for example, so.

If things are not necessarily going great, some little tweaks could potentially improve the chances of success substantially, that might mean something as simple as skipping an inflation adjustment for a year or two, or maybe dialing back some vacation spending. These are things you don't want to do, that's for sure, but with those little adjustments, you can potentially keep things on track, and that way you don't have to go back to work or make bigger sacrifices. And so I hope you found that helpful. If you did, please leave a quick thumbs up, thank you and take care..

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My Complete Early Retirement Plan | Mr. Money Mustache | FIRE Movement | Part 1

everybody Dave here in free investing in this first part of this two-part series we're gonna talk about early retirement planning and I'm two years in the early retirement planning and I made significant progress but there's still quite a bit of work left to do so in this first video of this series we're going to talk about where my accounts stand today and kind of the income I get from that and where my will Network stands and all that and kind of where the net worth needs to go and then the second part which I'll release next Saturday is where I want the counts to be post-fire and the ultimate goal with that let's go ahead and dig in so what we're looking at here is something I set up about six years ago after reading a mister money mustache article if you're not familiar with mister money mustache he's you know kind of you know I wouldn't say he's the first but he's definitely a person that made fire kind of a popular term and you know I mean he just really helped a lot of people but he helped me too because I was sitting in a hotel room for literally six months out of the year up and bfv buck Egypt right so essentially when I was sitting in that hotel room I was thinking about okay I want to hike the 80 well that requires me to take about four or five months off of work which theoretically means that I probably need to quit work so I was kind of looking at a way to do that and that's when I found mister money mustache and that's when I came across the 4% rule which is based off the Trinity study you take your you know annual expenses that you have to live and you know you times it by 25 that comes out with how much money you need to retire so you know I got at the top here the $30,000 was the 35 40 45 4855 those are just numbers that came up with I thought would be pretty good to retire on in 25 is the general rule for the Trinity study you know you would draw four percent and it should last you in at least 25 years theoretically probably make it last a lifetime but you know that rule in my opinion is a little old a little outdated back when that was instituted it was kind of I want to say that they're working on the interest rates were super-high back then like I don't think 8% or something like that so there's a lot more viable in my opinion so I came up with you know being another probably gonna be about 46 47 when I retire I came up with just I'm gonna go ahead and do the 3.5% withdrawal rate which gives me 29 X 29 years and then I kind of just bolded those numbers there across the board originally I came up with 1.25 was going be the number and then I upped it at one point three five and then later changed it to one point five and that's just the thing that you have NIP running into when you get close to your number or even surpass your number you start thinking okay what's another year what's another year and I hope I don't play that game going forward but so right now the things that are highlighted in yellow here are things that well I guess I haven't really achieved that one or that one so what it was originally was the number that I already achieved so I just put in there okay it gives me the three percent and thirty three percent in the thirty-five but I have not achieved at one point four eight five yet so I should probably take that out but but I do plan on you know we'll look in the numbers here in a minute but I do plan on you know going to one point five two possibly into one point six five so that's the reason why I probably set these the yellow originally so I probably even set that one a o if you're enjoying my content please like and subscribe and hit that Bell notification alright we are looking a snapshot of my current state as of June 18th alright I have all my accounts there and I have the value in each one of those accounts and then you know that no percent of net worth and the income by account and then yield by a count so as it sits today June 18th there's one point three six million in all these accounts so that is and we're over my original number that I wanted to fire on and like I said a lot of this depends on the customer I've set it in other videos a lot of attend them that depends on the the customer and when they want me to this last project so not to mention we are still in a pandemic and right on the you know I would say the up slide up slope of the recession so it kind of makes sense to just help hold out for another year or two and that's what we're planning on doing so right now there's 401 K accounts 228 k in there the CRA is a company retirement account that's what that stands for that's new part of the solo 401k trust that's in the dividend Schwab account what you've seen me to do a lot of videos on my dividend portfolio here so we're going to be building that out here and we'll talk about that in a minute let me see Sola form with Kate trust notes I do have two notes in the 401k trust in those notes you know generate about 7.6 percent yield which is pretty good income and I'm probably gonna end up keeping those in there but we'll look at the post you know account where we want things to be in the next few years this is just a snapshot of what things look like right now so HSA I am building that out I wish I had an HSA for the last 20 years but unfortunately I didn't and so I'm building that out to $3,500 a year and you know I'm investing that money as well I do plan on contributing into that account once I retire as well so there is you can contribute interest income and contribute dividend income and all that stuff as long as you have a high deductible plan once you retire so I'm hoping I can still build that out and offset some dividends or interest income with that as well so that's kind of good if you don't have an HSA and you are offered an HSA from your work that is one of the best things it's like triple dipping alright so I would highly suggest that you max that out every year if you can I do have a little bit of silver there at about ten thousand dollars in silver and you know the first chance I get to sell about silver about $40 an ounce I am getting out of it but we'll look at that here in a minute so right now that is what I have and silver I do have a Robin Hood account I've pretty much drained a lot of that money out of there and moved it to the TD Ameritrade account mainly just because Robin Hood is just not mature and they really don't report you know P&L what just kind of drove me nuts so I produced during the count left 2000 dollars in there just in case I want to trade some more crypto and my m1 finance I pretty much drained as well that's actually gonna get drained even more and that's gonna go into the dividend portfolio most likely TD Ameritrade account I haven't really done any videos on that but that is where all my spec plays are I have traded carnival in there traded world Bank of America not make America ba I always say Bank of America for be a bowling and I've traded let's see what else have I traded in there Delta and Southwest as well so right now I think those are good spec plays I'm going to go ahead and continue to trade those stocks in my spec account I've already made about $1,500 in that account just in the last couple of months so my Interactive Brokers account I've I haven't really showed me doing any trades in there I've done some covered calls and some cash secured puts and that's pretty much all I do in that account and you know I deal I just want to generate that four percent that twelve hundred dollars a year and I've already way past that this year if I like I think four grand if I'm not mistaken so real estate notes I have done a video on my passive income off those notes and it generates a quite a bit of income $38,000 and I essentially will be draining those out for the dividend portfolio and I've talked about that in previous videos the main reason for doing that is just because I want to reduce my interest income because that is taxed at the ordinary rate so we will be throwing the principal in from you know every every month the principal gets paid back so every month I will put in portion that principal in the dividend portfolio and building that dividend portfolio out so I've been quite a few videos on fund rise right now that counts sits at 16 200 or so sixteen thousand two hundred and you know generates I'd say about 8 percent per years what I've been getting out of it so I don't have any uh plans of getting rid of that account but we'll talk about that in a minute so Lending Club I haven't done any videos on that and shoot I don't know so ten months or so I probably should do a closure video on that I am draining that account out all that cast that's in that account will be going into the fund right of the count you know as I said before we will talk about that in a minute so and lastly here we do have cash in the high-yield savings account I guess that's what it stands for is so high yes I get you guys okay getting out of control now just recently that count was literally 2% drop down to 1.8 and then 1.5 and I just last three weeks it dropped all the way to 1.0 percent which is actually pretty good considering a lot of accounts right now are probably at like 0.3 or 0.03 or something so there are 70,000 dollars in there right now and I'm gonna talk about that in a minute so net worth as it stands right now one point three six and annual income by all these accounts which I call like investment accounts and savings did I include savings in there you know there's no savings in there so that's just annual income from my actual you know what I didand from the notes and from the notes up here a 401 K I've been real conservative and that 401 K accounts up there and I was real conservative a lot of these other accounts too like the options I put it four percent and you know flips I didn't laughter I skipped two flips I do have one hundred seventy three thousand dollars in flips that have turned sideways that's why that house is flipped upside down right there because it's you know real estate flips and you know I need to foreclose in those two houses and we're stuck because the local government shut down all evictions and awful and all foreclosures even though there's nobody living in the house or anything like that it just doesn't matter they said foreclosures across the board or frozen and there's been like that for the last couple months I don't know when they're gonna unfreeze that but right now I got that money just tied up in there and it's just a waste at this point so my right hand side here we do have a current breakdown and let's just make that a little bit smaller here I do have a breakdown of the current net worth allocation you know by pie chart so my biggest income producer is that real estate notes at thirty eight point four percent and you know the real estate flips is a pretty big portion and then the 401k accounts as well so then that's just looking at the pie charts there so let's scroll down a little bit here account type I did break these out up here so if he's noticed let's make that a little bit bigger you notice that that I have a light blue here that's just for retirement accounts in this dark blue is for taxable accounts okay so I broke those out here taxable side of about 1.0 three million dollars and then the tax deferred side for hundred and one thousand dollars at this time and then the income is broken out as well and the reason I have to do that is because I want to know what my income is on the taxable side I don't have any intentions of touching the tax deferred side when I early retire and I need to know that the taxable side is going to support my knees for early retirement it also lets me know that you know what type of income we're gonna have and I need to break that out into dividends and what does ordinary income and/or interest income as well so I can kind of figure out what my taxes are going to be so and that's the yield just in general what's didn't you know coming off this particular income or what this net worth is so the SR is saving slash return and that's just a projection it's a pretty conservative projection on what my actual net worth will increase on a year-over-year period and on a monthly period so I do save quite a bit of income that I make on my nine-to-five not to mention all of this return up here is calculated there as well so that's a rough estimate about one hundred thirty-seven thousand my network should go up in a conservative basis per year so and then here we are looking at the net worth currently and then my goal is one point six five and we're 87 percent to my goal with a remaining amount of two hundred and thirteen thousand dollars and that just seems like it just never goes down so so let's go ahead and look at the conservative net worth projection here and that's based off this number up here and this monthly number here okay so right now in 45 it's twenty twenty-one and it's you know starting to mount with one point three six million and you know I got my lean fire there which would put me in 11 months would put me at a one point five six which we ideally would probably you know get me where I want to be but I'm gonna probably end up pushing it to 2022 which is 22 months out at one point six eight eight in that like I said that's my fire I'm okay with a lean fire and you know ideally just because we're on the upslope of the recession at this point and I don't know when those projects are gonna be done at the customer which I kind of promised I'd stick around for so I kind of pushed it out to 22 months but every time a month takes off as soon as July first kicks off I love to just go in here and set that to ten months and I love to set this to 20 months or 21 months excuse me and watch the numbers kind of just auto-adjust down and all that because that just lets me know I'm getting closer and closer and closer so let's go ahead and reset those back to 11 and 22 and the reason why I have those set out to and not just adjust it off that 11 months there is because the 11 months is my first retirement date and I already passed my first retirement date technically it was for 2020 so that would you know the second retirement was in 2021 but since that one's already passed we have moved it to the first retirement date which is 11 months out so that's the reason why I have those two numbers in there to be Auto adjusted or manually adjusted I should say just because you know I might who knows I might hang it up at 11 months so we'll see where I'm at so and if I stuck it out to 55 years old which I don't see doing some people when they're young could say oh yeah I want to be you know I won't have a B I want to be a billionaire and you know it's like the older you get you start realizing that money it doesn't matter it's all about your time you can't get that time back you're buying time you're trading time for money if you haven't seen my video on the Neil pass richa video that I did watch that video pretty much sums it up okay you're trading time for money the older you get the less you care about money you just need enough money to survive to support your needs of living you know food basic shelter all that beyond that it really doesn't matter as long as you can you know have a one trip a year or something like that that's all the matter stuff doesn't matter at all so you know hanging out to 55 years old on a conservative basis I'd be a 2.78 6,000,000 which likely probably be you know three by that point so I'm not gonna make it to 55 I feel like I'm gonna die today so that's just how I feel just strapped with time working you know Xion hours it's just it's time to enjoy my life and you know all the sacrifices I've made for the last ten years so if you're enjoying my content please like and subscribe and hit that Bell notification let's take a look at the right-hand side here might be your left but this is the current lessee current account income breakdown here and that's just the income broken down so like I said my biggest income is from real estate notes at fifty nine percent and the second would be and the solo 401k trust notes so that's a lot of notes that I have in there and I guess the third one would be the 401k account so it's just this ditz and pretty much this the indexes and emerging markets and all that so alright let's go ahead and scroll back over here and scroll down so I do just put a little gate there and the network's kind of just gives me a little barometer or what are you want to call it speedometer for the network there I'm not in the green the green is set at 1.5 million and I'm close but I'm not quite there I should hit it by the end of this year but let's just say you know it's just a visible visual indicator doesn't mean nothing just for the viewing purposes so let's go ahead and look at this conservative network projection and this goes all the way out to 2030 and that's 55 I don't know why those numbers are so small there but that is 55 years old if I made it to 2030 and don't die before then I would have a roughly about 2.7 million in net worth probably in a conservative basis I was real conservative just because you know four percent I can you know get better return than that most likely but right now we are at 1.3 at one point for 3 which is on 2020 assignment on this chart here but 2022 is what we're looking at would be 47 probably just turned off seven and 1.68 is above my my threshold so we're good to go so so that's it for this video part 2 will come out next Saturday and you know stay tuned for that one if you have any comments questions are concerned on this particular video go ahead and even come a below you know hit me up on Twitter Instagram Facebook and until the next video comes out go ahead and like and subscribe we'll see you the next video thanks for watching

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How to Plan for Early Retirement: Exclusive Retirement Calculator

When someone says the word Retirement, what comes to your mind? Is it the age at which you would probably retire or is it the bank balance that you would have or the abundant time you will have to do whatever you like doing. I think it's a combination of all three. Because all these three require lots and lots of money. Yes, in today’s video we will talk about how you can retire successfully and can generate enough corpus that your lifestyle does not get affected at all. Hi, I'm Samarth, for the past 11 years, I have been working in the finance industry and I'm currently the investments lead at wint wealth. Retirement, it should essentially mean financial freedom. In today’s example we will assume that you started your job or career at 22 or 23 years of age. And as of today, your age is 30 years. For the next 20 years, we are assuming that you'll continue your active line of work, essentially meaning that you will retire by the age of 50. Wait, wait, wait! I know you might be wondering that this video was for early retirement.

See the idea is to let you know that what should be the method for retirement calculation. If you are a little aggressive on that, you might retire by 40 itself or by 45. It all depends on your consistency and your persistence. For the time being , we have calculated this on a very conservative way and hence 50 has been considered as the retirement age. So now we'll be focusing on the example and for this we will be looking at the excel sheet. By the way, this Excel sheet that you can see on the screen can be downloaded using the link in the description and also help us know in the comments if you found this Excel sheet to be useful. Infact, you can also download sheet right now and use it live while watching the video. You can change the numbers and see if it is suiting you and how it can help you to achieve your retirement.

We have assumed that your current age is 30 years. And you started your work life or your career or your job around 22 or 23 years of age. You want to retire at the age of 50 years, your life expectancy is around 80 years. Now because you have already worked for around 7-7.5 years, we are assuming that you have saved roughly two to two and a half lakh per year, so your total savings as on date would be 16 Lakh Rupees. How is this split? Majority portion of investment is done in mutual funds. I too personally, when I started my career, so majority savings (up to 80-90%) I used to do in mutual funds. And I used to split them into growth mutual funds and a small part into dividend mutual funds. After that since you are doing a job, you will contribute towards EPF. So we have assumed that this is around three lakh rupees. For emergency fund, you have kept some money into FD or bank balance, which is around two lakh rupees, and then remaining money, you have explored another debt option that is public provident fund and under this you have invested two lakh rupees.

Basis our assumption and calculation, on this entire corpus of 16 Lakh Rupees up to the age of retirement, that is for the next 20 years, you will generate 10% returns. So this 16 Lakh Rupees will get converted to 1.15 Crore Rupees. Yes, You heard it right. Believe me, if you do the savings consistently and in a discipline way, your Corpus becomes massive slowly. By the time I had completed five years in my job, I had enough money to pay for my car all in cash. But does that mean that mean, I did so? No. By the way, if you want to know if it makes sense for you to buy a car or use services like Ola and Uber, please watch this video. Now we are assuming that your monthly take home salary is one lakh rupees.

And out of this 60,000, that is 60% of your take home salary is spent by you. After that how much would be your savings? 40,000 Rupees. Now if you keep saving this monthly, consistently in a discipline way, then you can easily generate the amount of corpus such that during your retirement life, you can manage your lifestyle very easily and won’t be financially dependent on anyone. Next assumption which we have taken is that on your salary you will get an increment of around 8%. I know you might be feeling that the 8% figure is too high but you must also consider that although there might be years when you get only 5% or 7%.

I really wish you never get so low increments, but there will be years when you will switch your job or get promotion, when your increment might be 20%, 25%. During your pre retirement age, that is up to the age of 50 years we have assumed that years care, return 10% on the amount which you're investing and on the corpus, which you already have save. Then after retirement this figure drops to 7%. I know you must be thinking this is low, but considering that after retirement your priority will be to save capital and also beat inflation to maintain your lifestyle 7% is a very healthy number.

One very important assumption that we have taken is that after retirement there will be a lot of expenses that you won't be incurring. For example, your petrol and traveling expense will reduce substantially. Then it is also true that services like internet where you require a speed of 1 GB currently, will come down to 100 or 200 MBPS then. So that will reduce your expenses. And there are many other such expenses.

Okay. So we have assumed that there will be reduction of around 20% to your expenses post retirement. All these expenses have been adjusted against inflation at the rate of 6%. There are many such expenses which are incurred once or twice in our lifetime. One of them being expenses for sending your child for higher education. If on today’s date, you send your child for higher education so may be you will spend around 30-32 Lakh Rupees, to send the child at a very good institution. This we have assumed that when you will be 52 years old, this expense will occur and at that time, considering the inflation of 6%, this will be around 96 lakh rupees. Now that you have sent your child for higher education, then after he gets settled, probably he or she will get married.

Right? We have assumed that if today you got for their marriage then you will end up spending around 25 Lakh Rupees. According to your assumptions, this event will occur when you will be 60 years old. At that point of time, you will be spending around 80 Lakh Rupees. So this also has been built in, in this model. Last but not the least and definitely one of the most important is: medical expenses. As and when you age increases, simultaneously your medical needs will also probably increase. I really wish, this doesn’t happen but it is quite possible. So on a conservative basis, we have assumed that by the time you turn 65, you might end up needing a medical expense budget of around 50 lakh rupees. Right? Which up till then will be around 1.6 Crores, right. 35 years from now, it would be around 1.60 crores. So assuming all of this if you see all this calculation, then you will find that you would probably end up needing around 8.25 Crore Rupees as your Corpus so that you can retire comfortably. If you are able to generate this corpus by investing around 40% of your salary basis the following assumptions, month to month, year on year in instruments, which help you generate good returns like mutual funds and corporate bonds for the early starters, and then slowly and slowly moving towards more of conservative investments, where you can easily generate 9.5-9.7%, then you'll be able to achieve this corpus and basis this calculation, that you can see in the third sheet post retirement, you will see that even after you turn 80 years of age around around one crude Rupe, you will still be left with.

So if you save in a disciplined way, start investments, then you can easily achieve your retirement. Under this sheet, you can also put your other additional expenses basis your age. If you will see we have provided Additional 1 to Additional 8 blank spaces, as when you enter there it'll automatically get calculated and you will keep getting the results. The larger your retirement corpus, easier will be your retirement life, the more you will be able to afford to give to your family and enjoy the moments with them. This is why Savings are important. This is why retirement planning is important. And if you're worried to know how you can make your portfolio stronger and better in this video, we have discussed few revenue streams, which will help you generate passive income along with maintaining the safety of your portfolio until you meet next time. Happy Winting!
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How To Prepare For Retirement In 2024 (Step By Step)

– 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..

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Retirement Community Arizona

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

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

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Things We Wished We Knew Before Retirement

Well it's great to be with you all again it's 
another video day for us – It is – So things that   we wish we knew before we retired almost 
sounds like a country music song there Tina   – And I guess you must be feeling lucky 
today Norm – Oh yeah got my lucky shirt   on so because we're filming been to 
Costco – Got the great deals haven't we   – We have so one of the things that we wish we knew 
before we retired was how free it is how stress   free no longer having to get up and go through the 
morning ritual of preparing yourself to go to work   and being accountable to somebody else all 
day long it's wonderful to be accountable to   your own self and your partner that's it 
you're your own person and it's such a freeing   feeling and we saw that with Tina when she gave 
up work the amount of stress we hadn't realized   until a few years after retirement just how 
different she was she'd lost all that stress of   meeting quotas and all that good stuff – And I think 
I'll just add Norm that when you're actually doing   the job you actually don't think it is stressful 
you don't think you are under all this   stress until you stop it do something else and 
you think wow this is a lot better we like this   it's great so just being accountable to ourselves 
we love it don't we – It is totally life changing   – One thing that we do think is very important 
before you retire is you do need to have a   discussion with your partner as to what it is 
that the ideas that you're both thinking you   have when you're going to retire you do need to 
have some goals about, do you want to travel do   you want to garden or do hobbies do you want 
to stay home you really do need to have that   conversation to make sure you're both on the 
same page – I think it is it is important and   we hear a lot from some comments especially 
married women who are saying that their husband   their frightened the husband will get under their feet 
because he'll be hanging around all the time in   retirement but that really isn't the case – Not 
for us is it – We've been secure as a couple for   the longest time and retirement hasn't changed 
how we feel about each other and about what   our expectations of each other is it's not as if 
we've all of a sudden being locked up together in   retirement (no) so it is important to figure out 
what you both want out of retirement and to have   that discussion a few years before you actually 
do retire (yeah) one thing to bear in mind is   the first few years of your retirement you'll 
be your most healthy so just use that health and   strength that you do have in the early years 
to achieve some of the goals that you want   – Yeah and if you want to be traveling do it while 
you've got that – Don't think about traveling if   that's on your list just do it right away – Yeah 
absolutely and that's what we've done isn't   it when we retired we just traveled everywhere 
didn't we it was great – About two years before we   retired we had an inspector come to the house 
for I don't even remember what it was but it was   some form of home inspection that we had to and 
so we got chatting with him because he was a few   years older than us but not that much and he told 
us that he had a house very similar to ours that   he had sold and now he was living an apartment 
and he went through the whole process of them   and how they moved to the apartment and how 
it was such an improvement on their life   and it was something we'd never ever considered 
– This was big news to us wasn't it we never even   thought about renting an apartment – We had been 
homeowners since we were 19 years old so to rent   we had that preconceived idea that it was throwing 
money away but the more that we looked into it so   after he left the next couple of days we spent 
many hours thinking about this we did a budget   of how much it cost to keep our mortgage free 
home – Yeah crunched all the numbers – And what the   rent would be and if we had sold the house and it 
made more and more sense to us to sell the house   to downsize into an apartment bank the money 
from the house live off that as an investment and   that's what we did – And that's what we did didn't 
we – But had that guy not come to our house we might   never have come up with that idea – No because 
originally we had thought that we would just   buy a smaller house didn't we – That's right yeah 
– So part of our decision when we had actually now   decided that we were going to rent and we realized 
that would take care of we wouldn't have all this   maintenance and stuff like that to do we decided 
after we started looking at apartments that if   we moved to a cheaper area could we benefit by 
getting the same as what we wanted in an apartment   but would it cost us less money so the more 
we looked into it we did have a family member   who lived in a cheaper place so we looked 
at the equivalent of renting an apartment   in this new place and it was so much cheaper 
wasn't it Norm – Because we initially thought   we would just sell our house and stay in 
the same area so we started shopping for   apartments to find out how much they cost and the 
availability and we were pretty surprised that   at the expense of them but we were prepared 
to pay that (yeah) and then we came to a what   you would call it a small town that's cheaper 
(yeah) we came to visit a family member here and so   we started looking around at the apartments here 
and they were substantially cheaper about $800   a month cheaper than where we were initially going 
to – Yeah and not only that Norm there was a lot of   extras with it wasn't that we got there was 
underground parking and what else a swimming pool   – And laundry facilities in the apartment – And that 
was one thing the gentleman had told us he didn't   have on-suite laundry he had it in a laundry room 
so we wanted that – But coming to the cheaper town   it wasn't just the rents that were 
cheaper everything was cheaper   the Tina's hairdresser as we've 
said in the past was cheaper it just permeated everything so our budget became 
so attainable (yeah) by moving – That gave us a lot   more money to be able to travel didn't it because 
we thought if we can save money on a daily basis   and it worked perfect didn't it – It did it was 
great, take a look at that if you do have family   that live in an area that might be cheaper or 
just consider going not knowing anybody – No it's   like a new adventure isn't it a new chapter in 
your life because we've made friends here and   they don't have any family just here but they've 
made it a new place for them haven't they – A lot   of people have moved out of the big cities to a 
small town because it's it's far more conducive to   retirement (yes) and friendlier another 
thing that you really need to consider   is where your friends are going to come from 
in retirement because once you leave work   those friendships tend to wither away because 
the only common bond you have was your job   your workplace so we've never 
really had lasting friendships from   work colleagues they've always been outside 
of there so it's it's critically important   to continue looking for friendships in retirement 
and being outgoing and prepared to speak to people   Tina when we moved to this apartment building 
they did have a social room and they did a coffee   morning and so she would go down there and we 
found out so much information about the town and   businesses to use – It was great wasn't it – It was – It 
was kind of my mission wasn't it to find out   new information and to try and make new friends 
which we did and we made some fabulous friendships   – Well in particular there was one couple that Tina 
made struck up a friendship with and they in turn   have introduced us to another couple yeah and then 
they in turn have introduced us to another couple   so that's how it goes – Yeah so now we've got 
a group of really close nice friends that we   socialize with don't we – And the thing that we have 
in common isn't an employer it's being retired   – It is isn't it – It really is so don't be afraid 
of striking out to a new city a new town   because it's relatively easy to make friendships 
– Yeah you just have to push yourself out there   a little don't you and be confident to going to 
things and it's very exciting isn't it so we hope   that everybody is staying safe – And keeping 
well – Until the next time bye bye, bye bye

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Early Retirement Success Story – How He Saved 12 Crores in His 30s | Fix Your Finance Ep 36

If you want to retire early, then this video
is for you. Today we'll meet a man who has a corpus of
more than 10 crores and has managed to retire completely before
the age of 40. We will learn how to start planning, how to
do the calculations for early retirement and what all things to keep in mind before
leaving your job. So watch this video till the end and to support
our channel, like the video right now. FIX YOUR FINANCE Hello and welcome to a new episode of Fix
Your Finance. Today I have Ravi Handa with me. Welcome to the show Ravi. Glad to be here. How's early retirement treating you? It has its good parts obviously. What are the good parts? You can spend time on things which you were
not able to do earlier. And what are some of the bad parts of retiring
early? You lose a lot of value and a lot of validation
that you used to get from a job.

You have described your retired life in 2023. Let's take it back to like 15-16 years back. So, what did you study? I have done engineering in computer science. And what was your first job? Where did you start working? I started working in the education sector
itself. I joined IMS Calcutta which is a CAT coaching
company. Okay. And what was your first paycheck? 25,000 odd rupees. When you retired in 2022, what were you doing
back then? Actually, before that, I used to run a business
from 2012 to 2021. Which was in the education sector. My company was acquired by Unacademy. So, the last 1-1.5 years of my working career, I was with Unacademy as director content sales. So, how many years did you work? I worked from 2006 to 2010.

Then I took a year break. 2011 is when I got married. 2011 is when I joined this IT company called
Mindtical. What was the trigger to start your own thing? When I was working for IMS, at that point of time itself, I started making educational videos on YouTube
around 2008. Gradually, they became popular. Not very popular. And this was CAT coaching for MBA? CAT coaching. First, I started with math. Then I went to GK through math. Then to LRDI, then to English. I kept on expanding. And how was the business? How did it work? Business was profitable from day one. Because there was no expense. Yes. In today's date, the cost of videos or ads
in EdTech has gone astronomically. In 2012, it was extremely simple. Because I don't think anyone was doing it. Or even if anyone was doing it, they were not such a big player that you cannot
really compete. On an average, what was the kind of profits
or salary that you guys were drawing? We had good years when we did revenues of
3 crores as well.

We had bad years when we did revenues of 25
lakhs as well. There was massive fluctuation. In 2021, your company got acquired. Correct. It got acquired and then there was that vesting
period wherein you had to work. Correct. And after that, you got an exit. Correct. So, were you actively looking for an exit? Yes. Again, I am telling you the same. So, during the COVID period of 2020, my wife was pregnant at that point of time, So, my wife and I used to sit and chat about
what to do with life. And this is what emerged that we have to sell the business at whatever valuation possible, whatever sort
of deal you get. Because getting out of business is the priority. After selling the company, there will be a
vesting period wherein you were working with Unacademy. Correct. What was your compensation then? Exact numbers I can't reveal because of the
NDA. But my salary was a little above 1 cr. And the ESOPs of the vesting, that was another additional 50 lakhs or a
little more than that.

Wow! So, you have a lot of money in Edtech, I am
guessing. Yes. But I didn't get this for my skill or my talent. Okay. This I got primarily because they were acquiring
my company and this is a way for them to pay out the
money slowly rather than on day one. What is your background? Which college did you study in? IIT Kharagpur. Did that also help in your, you know, starting your entrepreneurial journey? Absolutely. I am telling you, there are a few things which have helped me a lot in life. To take risks, to experiment. One, my parents were always independent. I have never had to give a single rupee to
my parents. The second thing which has really helped me
is my wife was very well educated and in a very good
job which allowed me to take a lot of risks. The third is that I went to a good college and through that college, you build a network. I have friends in senior positions in multiple
places. This is it. You are the sum of your privilege, your background and the people that you have interacted with over your life.

Okay, so now we will talk about your expenses. Do you live in a rented apartment or is it
an owned? It's an owned flat. I shifted to Jaipur in 2015 to be closer to
my parents and at that point of time, I purchased the
flat that I still live in today. Did you take it on loan or did you pay in
cash? No, it was entirely in cash because at that
point of time, I had been doing business for 2-3 years.

The second thing is your travel. So, do you have a car or do you travel in
cabs? I have a car but I don't really like to drive
that much. So, how much fuel do you spend on a monthly
basis? I have no idea. So, you don't track expenses in general? That way, no. So, The way I track expenses is at the beginning
of the financial year, I check how much money was in the bank account. Throughout the year, I just find out how much
money went out of your bank account. So, that's how I determine how much I spent
this year. So, on an annual basis, how much did you spend
in the last 3 years? Around 2 lakh rupees goes into maintenance.

Society, maintenance plus the other property
that I own. 5-7 lakh rupees is the vacation. Another 2-3 lakhs would be eating out, drinking,
parties. Parties, not the pub parties. Parents' 50th anniversary, the first birthday
of the child. So, all these parties add up. 3 lakhs or a little more than that would go
towards the house help staff. These are the big hits. Now, it is time for the main thing, which is talking about your financial independence
and retirement plans. The first and main thing is figuring out your
FIRE number. How much money would I need to not work and can retire comfortably. So, in which year did you seriously start
thinking about FIRE? Which year? Covid, 2020. 2020 is when I actually sat down and did the
numbers. Where I have this much money, I will put this
money here and there. So, it took me around 3 months, maybe 6 months to figure out how much money I exactly need,
how do I need to invest it. And then it took me a couple of years, 3 years
to execute that. So, if your annual expense is 25 lakhs, if you take a multiple of 30, it is 7.5 cr.

Right? So, what are some of the milestones that you
took into account? There are two major chunks that I have kept. One of them is nearly everyone likes and accepts
that you have to save money for your child's higher
education. So, I have earmarked 50 lakh rupees for that. Wow! I will give it to him at 18 or whatever appropriate
age. 7.5 Cr plus 50L. For this? Yes. 8 cr. Another 50L is what I wanted to keep as a
sort of play money for experiments that I would want to do. Angel investing is one of them. Crypto investments is one of them. I am doing a podcast right now, so it has
its own expenses. Yeah. You should check out his YouTube channel,
okay? Every month, two videos come up specifically
talking about how to achieve FIRE. Okay? There is a link in the description. Definitely subscribe. That is 50 lakhs, your play money. How is that going by the way? Angel investments and other investments? I have lost a lot of money in angel investments. I have lost a little bit of money in crypto
as well.

But the biggest problem in angel investments
is that it is extremely illiquid. There is no honesty. So, I had put 3 lakh rupees in a company in
2019. In 2021, it became 45 lakh rupees. Ravi Handa is happy that it is done. Did you get an exit? Exit? The company closed in 2023. It became zero. Oh shit. So, that is the problem with angel investment. That's why you have allocated an amount which you yourself have called play money. Correct. Any other milestones that you have covered? No, these two. 8.5 cr was your FIRE number. You said that you started investing a huge
amount since 2015. You started investing or saving more. From 2006 to 2015, did you manage to save any portion of your
salary? Yes, we were always saving more than 50-60%. We used to save this much. So, it was business, revenue was high, that's
why you didn't save. It was something which was there. Your expenses were always lower than what
you were earning. So, have you accumulated the 8.5 cr ? A little bit more than that. Very nice. How much percentage of that, if you are comfortable
sharing, how much percentage has come from selling
your company and how much percentage of the proportion
has come from your savings? I would say that selling the company probably
gave me 20-25%.

Which basically means that this was not a
result of a certain event. No, no. So, this was because my business was successful. The second factor was that my expenses were
very low. The third factor was that I always had substantial
investment in equity. The fourth factor is where I would say the
selling of the company comes in. The main money that was made was made by business. And let's say if you were doing your software
job, you would have been in the top positions, In that case, do you think this much wealth
accumulation would have been possible? If I was in India, then no. If I had gone abroad, then I would have been
way ahead of this.

Is that one of those things that you would,
you know, you look back and want to change? I regret it every week. If I had been a good student, if I had studied
in college, then I wouldn't have been in the coaching
line. I would have moved to the US or Canada or
Europe or somewhere after college. I can't believe that you are saying that you are not content with what you have achieved
financially. I am absolutely content with what I have achieved. Because I have bounced back from the mistakes
of not studying in college. Yeah. The 8.5 cr that you have accumulated, that too, what are the percentages where you
have invested? My current net worth would be somewhere between
12-13 cr. Out of this, 1-1.5 crore rupees, which is
my 4-5 years of expenses, I keep it in absolutely liquid low risk investments. So, this is my cash bucket. In the medium term bucket, I have taken a
balance advantage fund. I have long term bonds, gilt funds, which is another 4-5 years of expenses. So, a mix of equity and debt. Third bucket, which is my long term bucket, another, I believe, 6-7 crores would be in
that and then there is a piece of land that I own
which is around 2 cr.

Tell me one thing, how to go about it? Primarily if you are young you need to save,
develop as a habit sort of a thing but your focus should be on making money. Where will you earn money from? Either you will grow in a job or you will
join risky jobs like startups to get ESOPs or you leave the country, you go abroad you
earn a lot more there, you save a lot more there and you come
back and you know you can be in a very good situation or what you do is you get a higher
degree.

Suppose you have done engineering, MBA, Masters
in Engineering, there are plenty of avenues. Your main focus should be on making more and
more and more money. Because after one point your expenses can't
get less. So if you want to increase the alpha, the
difference in income and expenses that will only happen if you are constantly focusing on increasing
the top line. Let's say I have decided that I want to retire
early. What was the framework? What were some of the thought processes? One according to me even hoping for planning
for early retirement is sort of accepting a failure that you couldn't make your career
in your life better that's why you are going towards retirement. Yes financial independence is important, early
retirement is not. If you are in a job that you like, that you
enjoy or I will say if you are in a job or in a career that you don't hate, do not think
about early retirement. Early retirement became important for me because
I wasn't liking what I was doing.

So this is our quick finance round. You have to answer the questions as soon as
possible. If you had an unlimited budget, what would
you gift your wife? Vacation, luxury vacation. If money was out of consideration which in
your case holds true, what would you do for a living? I don't know I will keep experimenting with
it which is what I am doing right now. And the last question is for people who want
to achieve financial independence and you know are seeking early retirement, what are
2-3 nuggets of advice that you would share with them? For financial independence, increasing your
income as much as possible that should be your priority. The second priority should be that bulk of
your savings should go into equity. If you are chasing early retirement, I think
that is a bad chase to have. That should be, that is like surgery, that
should be the last option. Try changing your job, try changing the city
you work in, try changing the country you work in, try changing your careers. If there is no avenue, that is when you think
about early retirement.

Alright, that brings us to the end of the
episode. Thank you so much for sharing your journey. I am sure that a lot of people have learnt
a lot from today's episode and video. Make sure to check out his YouTube channel. Every month at least 2-3 videos are made on
this topic. Subscribe to his channel and if you liked
anything in this video, subscribe to my channel as well. Goodbye..

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5 Retirement Tricks You Were Never Taught

these five ideas took me 20 years to learn as a financial advisor and be sure to watch them all because I don't know which ones are going to resonate with you I can share with you number five is my personal favorite but leave in the comments what your favorite is okay let's go for a walk uh and the first idea the first tip uh that again they didn't teach us in college they didn't teach us in high school and unfortunately life didn't teach me most of us these things we had to learn them on our own uh and that is this is not our parents retirement right we are healthier than our parents were uh travel is quite a bit less expensive and easier today than it's ever been I've been fortunate in the last three or four years to be able to work remotely from 30 different countries and I can tell you my smartphone had has made that experience so much easier finding a place to stay getting from the bus or the trains station or the airport to where I'm staying finding the the location that I want to you know the cafe I want to go to or the museum or the cathedral or you know whatever the tourist destination is it's a lot easier with the smartphone so uh this is not our parents retirement this is not uh sitting around watching television and fishing I'm not saying that all of our parents did that but the whole world is open to us particularly post covid right um um is is travel is easier it's less expensive than ever so item number one is this is not our parents retirement if we looked at our parents and said ah I'm not sure I'm that excited about retirement I think the type of retirement we can have is is is is really exciting and really interesting we have to do our homework to be ready for it uh both financially as well as mentally you know what does retirement look like what are we passionate about what are we excited about how are we going to spend the time but if we do that homework I think we have a really fun-filled retirement to look forward to okay and number two is is exactly what I just shared which is you know we have to do our homework and I I think we have about a hundred hours worth of reflective work that if we do that I think we can uh feel like we're well prepared uh outside of the financial aspects for our return environment and then in addition of course the financial aspects are important I would encourage you to use a fee only financial advisor have a professional plan drawn up for you it doesn't have to be crazy expensive but you don't want to think that you're okay you want to know that you're okay you're we financial advisors cannot give you certainty but we can provide a lot of clarity just Google fee only financial advisor near you I keep saying fee only financial advisor because they have a fiduciary obligation to put your interest ahead of their own 100 of the time and that's really important but getting back to number two doing our homework it's not just the finances of it you know it's what's your purpose going to be a great book to help you think about your purpose is a book called strength strength to strength by Arthur Brooks what are you going to do with your time you're going to have a lot of time in retirement and what are the things that are really important for you and just look through the library of videos that that I have on YouTube I've I've covered this topic uh several times and other YouTubers have as well so think about how you're going to spend your time I can share with you high level after doing a lot of reflective work and having guided other people through it right I mean you just can't help but also think about you know how does all of this apply to my situation the four areas that I'm super excited about during retirement is number one having time for relationships I have a mother who's 87 years old lives a couple thousand miles away I was fortunate enough to be able to spend two weeks being a kind of her primary caregiver were my sister uh went on vacation finally it had been the pandemic since before the pandemic that she'd been able to take a vacation so relationships and investing in relationships the time for that I'm looking for or two and all for me all of these are broken into about a four so there's four of these the second one uh is taking taking care of my health doing what I can to stay healthy because uh retirement is going to be a heck of a lot more fun if I'm healthy so uh a fourth of my time on health and then I'm a lifelong learner I love learning so learning is is continuing to learn continuing to take courses uh continuing to just learn new things I've done many things I uh when I was much younger I was uh taking flying lessons and I've actually got the rating that you need to work for the airlines I taught myself how to code this YouTube thing so continuing to learn is important to me and then the fourth area is giving back and and for me that that means things like this YouTube channel right uh teaching and mentoring and coaching and sharing the knowledge that I have uh with people that I think it can help so those are the four areas for me that's what's right for me it doesn't mean that it's right for you um let's see and then the the last one as far as preparing your homework is you know if you live in the United States we have to think about what are we going to do for health care insurance until we're 65 and you know there are people that can help you with that the only financial advisors can help you with that there's Specialists that specialize in this area but there are solutions to that so but do your homework before you make the leap you want to make sure you've got that base covered okay number three uh the number three idea um here that nobody taught you about retirement uh and I alluded to it in the last item which is health is more important than wealth you know really really do what you can we you know we can't prevent cancer we you know we can do what we can we can eat right we can exercise we can do all of those things uh and and hopefully that will help keep you healthy longer and hopefully ward off any of these scary diseases that none of us want okay so just do what you can to stay healthy number number four um is um you you don't have to fully retire right if you have a lot of stress at work um if if you're ready for a change of pace if you're close financially and you want to make the jump you know there there are part-time jobs out there there are side hustles out there that you can do side businesses that you can start uh so if you're close to retirement if you're like boy I'd really like to retire sooner rather than later it doesn't have to be uh All or Nothing there's other ways to make income and the question is you know is is 50 free better than zero percent free on being retired you know could you take a seasonal job and maybe only work three months out of the year I mentioned in other videos when my kids were younger I used to teach a handful of weekends skiing uh at a local ski resort so my whole family would get free ski tickets but there are these seasonal jobs and is it better to be 50 free 80 percent free and work seasonally or work part-time work 20 hours a week in order to get health care benefits things like that so and there's no right or wrong answer it's just you know depends on um uh what's right for you okay number five and I've got a Bonus one here so don't don't uh disappear after number five uh before we get to number five if you're enjoying this video please give me a like uh the thumbs up it does help the YouTube algorithm find other people that hopefully my channel can help number five um is it's okay to have a backup plan you know related to um number four um you know maybe you think you have enough money to retire or you want to save uh a buffer and you're gonna work an extra two or three years to get this buffer uh and you know what having a little extra money having this cushion makes a lot of sense but you got to be careful because one year can easily turn into three or four years um so maybe you're in instead of having that buffer you have a backup plan where you're gonna have a part-time job you're going to have a you're going to create a side hustle if you have to in order to give yourself that buffer if if you get on the unfortunate side of sequence of return risk which is when the market is negative for first couple years of of retirement or in the first few years of retirement because that's when your sum of money is the highest uh it's when you're most susceptible to negative returns and and none of us know if if we're going to get hit with that or not but maybe the buffer maybe the insurance if you will against that is a willingness to work part-time or to create a side hustle business if you do get hit by that okay um and then the last item I want to leave you with and it's it's a saying in my industry um you for many people they don't need more money they just need a plan they need a game plan what are the things that are important to you what are those things going to cost and then how do you achieve those and you know I really encourage you to reach out to a fee only financial advisor and say Here's my situation can you help me think through am I am I close to being able to retire are there things that I'm not thinking about that might allow me to retire sooner rather than later and to find a fee only financial advisor just Google one I keep saying fee only financial advisor because they have a fiduciary obligation to you and that's important so I hope this video has been helpful if you've enjoyed this one I know you're going to enjoy this video up here that talks about the average income for retirees in America and this video down here that talks about five reasons to retire as soon as you can thanks for watching bye bye

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