How Much Does the Average Single American Need for Retirement?
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Күн бұрынWhile the financial media may be focused on high net worth couples, how much does the average single American need to save for retirement?
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Timestamps
0:00 - How Much Does the Average Single American Need for Retirement?
1:07 - Retirement age, inflation & returns
1:56 - Retirement spending
3:08 - Social Security income
3:42 - If our single retiree is 65
4:34 - If our single retiree is 60
6:21 - If our single retiree is 55
7:27 - Why saving early is important for single retirees
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-- About Patrick King CFP® --
Patrick King is a fee-only financial advisor in Atlanta and the Founder of Prana Wealth. Over his career, Patrick has helped CEOs, all-star athletes, Grammy-winning artists, and many others build their wealth, retire sooner, and create a legacy. Patrick enjoys yoga, mountain biking, golf, travel photography, and Clemson football.
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@Retired-jr3qs 2 жыл бұрын
No one has done a video on Single Americans retirement financial planning needs. Thank you so much!!
@PranaWealth 2 жыл бұрын
I'm so glad that you found it helpful! I had so many comments and requests for this based on last week's video that I decided to move it to the top of the list! Thanks for the kind words and thanks for watching! 🙏
@Retired-jr3qs 2 жыл бұрын
@@PranaWealth I retired 2 years ago at 56 years old. Life has been pretty good.
@PranaWealth 2 жыл бұрын
Awesome! Congrats on a great (& early) retirement! 🙌
@dznrocks6605 2 жыл бұрын
I fall in this category myself. I hope to retire by 55 or earlier, right now I'm 48 and have zero debt. I paid off my house at the beginning of the year. Just saving extra money for when I do pull the trigger
@PranaWealth 2 жыл бұрын
@DZN Rocks! -- keep it up! Sounds like you've done an amazing job saving. Congrats on paying off the house! 🙌
@casmithc2 11 ай бұрын
I rewatched this. I think your numbers are more realistic than a lot of the gloom and projections that think you need $1,000,000 to retire.
@nikib7 2 жыл бұрын
Thank you for doing a video on Single folks retirement planning! I rarely see any planners focus on single people, who have different needs than couples. As a single person myself trying to plan for retirement, this was much appreciated! 🌟
@PranaWealth 2 жыл бұрын
Anytime, Niki! I had a lot of requests for that one! I appreciate the kind words! 🙏
@davidforesto Жыл бұрын
I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made. Great video! Thanks for sharing! Very inspiring! I love this
@eadad4371 Жыл бұрын
I'm a single dad, not quite long I started investing. I'm very curious and need help on how to enhance and increase my returns. Any good investment tips would be appreciated
@eadad4371 Жыл бұрын
@@davidforesto That’s great , your investment advisor must be really good,I have seen testimonies of people using the help of investment advisors in making them more financial stable. Do you mind sharing more info on this person?
@russianinardat9624 Жыл бұрын
@@eadad4371 This is a shocker seeing Regina Louise Collaro is being mentioned here. I always had mixed feelings about hiring a lnvestment advisor. For the record, I started working with Regina in 2019, and she manages about 70% of my lnvestments, while I manage the other 30%. My philosophy is that I care more about my own money than anyone else, but she made me accept that they have wealth of information on current conditions and future trends..
@user-bv4sj2gq7g 2 жыл бұрын
Finally someone who doesn’t tell me I need a million dollars to retire! Based on your examples, I’m ahead of the curve.
@PranaWealth 2 жыл бұрын
D - it all depends on what you want, right? We are the only ones who need to decide what's "enough". Great comment! 🙏
@1Mannco 2 жыл бұрын
@@PranaWealth Thanks for the videos, just how long are these est..for 30 years or so??..also there is a low sounding hum in your videos.
@PranaWealth 2 жыл бұрын
@JG1 - for the 4% rule calculations, we're estimating a 30 year retirement. Obviously, if we're starting at age 65, some folks may or may not make it that long. Thanks for the feedback on the low-sounding hum. I've been trying to chase that out of my audio for weeks now! I've changed my audio cables and have been trying to put a notch filter on the audio, but I'm still struggling with that. I'll make it a priority -- it's irritating me to no end! 😬
@PranaWealth 2 жыл бұрын
@JG1 - for the 4% rule calculations, we're estimating a 30 year retirement. Obviously, if we're starting at age 65, some folks may or may not make it that long. Thanks for the feedback on the low-sounding hum. I've been trying to chase that out of my audio for weeks now! I've changed my audio cables and have been trying to put a notch filter on the audio, but I'm still struggling with that. I'll make it a priority -- it's irritating me to no end! 😬
@PranaWealth 2 жыл бұрын
@JG1 - for the 4% rule calculations, we're estimating a 30 year retirement. Obviously, if we're starting at age 65, some folks may or may not make it that long. Thanks for the feedback on the low-sounding hum. I've been trying to chase that out of my audio for weeks now! I've changed my audio cables and have been trying to put a notch filter on the audio, but I'm still struggling with that. I'll make it a priority!
@GwenMotoGirl 9 ай бұрын
I’ve been looking for this information for a long time, and you produced it. Thank you! I’m feeling great about my retirement plan.
@lorijones564 2 жыл бұрын
Thanks for thinking of us single folks! Not everyone is part of a couple. This video was very informative!
@PranaWealth 2 жыл бұрын
So glad you found it helpful, Lori! Thanks for watching and thanks for the kind words! 🙏
@pourquoi475 2 жыл бұрын
Thank you! So many programs are geared towards couples. Much appreciated!
@PranaWealth 2 жыл бұрын
Anytime, BA! So glad you found it helpful! 🙏
@IAmScottD Жыл бұрын
Thank you sir! Well done
@tiffanym4202 2 жыл бұрын
I had to really search to find a video that covers this. Thank you! Please consider doing more videos geared toward the average person. There are virtually NO videos out that that help those below the median....the working class and low middle class....to help us figure out how to make retirement a reality. Any and all help is appreciated by an underserved demographic.
@PranaWealth 2 жыл бұрын
Thanks for the kind words, Tiffany! It's been an interesting journey for me to create these videos and hear everyone's feedback about what they're actually experiencing. I think a lot of the retirement data out there is created by some of these big financial conglomerates who are focused on their target clients rather than being curious about what's going on in general. Thanks for watching and thanks for leaving a great comment! Happy New Year! 🙏
@cdd4530 2 жыл бұрын
This video was great. All videos I have watched until now were for married couples not individuals. Thank you very much for putting this information out, was very helpful.
@theacase8738 2 жыл бұрын
Yes. Thank you for taking the time to demonstrate retiring from a single person’s situation.
@PranaWealth 2 жыл бұрын
Any time, Thea! There are a lot of us out there! 🙌
@giffordkrivak859 7 ай бұрын
I like your numbers. I am 56, single!, no kids, own my home and can start earning a $60,000/ year pension with $500K in investments. Sounds like I am in good shape.
@vg6790 2 жыл бұрын
This was spot on!
@PranaWealth 2 жыл бұрын
Thank you, VG! 🙏
@MrJake-yx8ll 2 жыл бұрын
This was a good General overview thank you for taking the time to pull this together. I appreciate the concept of getting started with a back-of-the-envelope analysis this is usually a good way to start roughing out the major points however I feel there is an elephant in the living room (actually a few)....that were not underscored and need to be part of the initial discussion..... So with the direction things are headed it is almost certain that we will see on- going tax increases of the kind we are not used to in order to begin paying back the stimulus money that has already been paid out and of course the new bills under approval and the impact from those taxes. In addition government will no doubt charge more for services and cut how much you get for any given Dollar in the services provided. For example yes Medicare is available at age 65 but it comes at a cost and you pay on a sliding scale... with the money taken directly out of your Social Security check or out-of-pocket if you have not pulled the Social Security trigger yet. Medicare will increase next year which will offset the COLA increases to Social Security this year, this is the traditional government squeezing of the balloon.... or some may refer to it as cutting off one end of the blanket and sewing it on the other. Your investment portfolios also have a ticking tax time bomb associated as well which many unprepared retirees get hit in the head with when they reach age 70-72+ RMDs.... few people will be 100% Roth IRA for example to allow you tax free withdrawls, but even to go Roth you must pay taxes now. Nuff said... planning for runaway inflation, medical care costs and tax impact has to be a part of your back-of-the-envelope analysis STAT. Regardless, I commend you for starting the effort because that's what it's all about--everybody needs to start noodling out the numbers now.... the sooner the better. Thanks again.
@PranaWealth 2 жыл бұрын
Mr. Jake -- you bring up a lot of good points here. I think this kind of analysis that I put together is a great starting point, but we certainly don't know what the future will hold. We'll certainly have plenty of challenges to address in the future, including healthcare costs, taxes, and the sustainability of our entitlement programs. Thanks for watching and thanks for the thoughtful comment! 🙏
@JorgeLopez-dg7ei 2 жыл бұрын
Thank you for the video.
@PranaWealth 2 жыл бұрын
You're welcome, @Jorge Lopez ! Thanks for watching and commenting! 🙏
@brindacockburn4033 2 жыл бұрын
Thanks very much!
@PranaWealth 2 жыл бұрын
Thank you so much, Brinda! 🙏 I'm glad you enjoyed this one!
@patrickmchargue7122 2 жыл бұрын
Thank you for actually computing numbers.
@PranaWealth 2 жыл бұрын
Anytime, Patrick! Thanks for watching! 🙏
@DrJones-nh4my 2 жыл бұрын
Good info
@PranaWealth 2 жыл бұрын
Thanks, @Dr. Jones ! 🙏
@sunnysolana 2 жыл бұрын
I love your videos and your clear "back of the envelope" examples! Regarding "housing expenses," does the data source distinguish between fully-owned properties and rented/mortgaged properties, or is everyone lumped together. If they are lumped together, the "average" figure could blurring the fact that retirees with fully-owned housing have low expenses while retirees with a rental or mortgage payments may find it hard or impossible to hit that "average." I heard that one shouldn't retire until their mortgage is paid (or nearly paid) off. Is this advice still true? Thanks for the great videos!
@PranaWealth 2 жыл бұрын
Great question, @sunnysolana ! In the study, 1 out of every 5 people aged 65+ rented. So, most people in the study were homeowners. In fact, you can see that, over time, people were paying off their mortgages the older they got. I would say that you don't have to have your mortgage paid off when you retire, but it certainly helps. I've seen many people make it work both ways. With interest rates as low as they are right now, many people are choosing to let it ride for a while. Check out the data if you get a chance. It's pretty fascinating! www.bls.gov/cex/tables/calendar-year/mean-item-share-average-standard-error/reference-person-age-ranges-2020.pdf Thank you for watching and thanks for the great comment! 🙏
@David-sc2ir 2 жыл бұрын
Thank you so much for this 'singles' video :) I have been overwhelmed watching some of the retirement planning videos that state if your not a multi-millionaire your not going to make it! Not everyone lives on the 18th hole club house condo and travels the world every year!!! This is very much in line with my portfolio and my conservative life style. I do wonder about the 80% for housing expense as I own my home (no mortgage/no debt), I was calculating about $6K a year for taxes, insurance, maintenance/upkeep, which would be well under 80% of my retirement income. I am semi-retired now (63) but plan to fully retire at 65 to 67, depending on how our current economy goes...
@PranaWealth 2 жыл бұрын
Awesome, David! I'm glad you enjoyed it! I had a lot of requests to make one of these for single people and it was a no brainer. I may have to revisit topic for singles in the future...
@BLaw707 2 жыл бұрын
Good presentation that puts many of us at ease with what we really need for retirement. I assume that those with a pension can account for some of the required retirement savings.
@PranaWealth 2 жыл бұрын
@B Lawrence -- thank you for the kind words! 🙏 If you're lucky enough to have a pension, that would certainly put you ahead of the game and -- given the same level of expenses in retirement -- mean that you would need to have less saved.
@shockwave1126 8 ай бұрын
Thx for the video. I’ve come up with similar projections but will also benefit from a few pensions and my own investment portfolio with dividend stock as well as rental income. I also will not be worrying as much on taxes since I’ve never been much a fan on tax deferred stuff.
@sealisa1398 2 жыл бұрын
Living in Northern NJ as a single person without altering lifestyle I estimate 2 million in net worth needed, retiring at 69. No joke. Taxes and insurances are very high. It’s never enough.
@PranaWealth 2 жыл бұрын
@SeaLisa -- that sounds about right for life in the big city. That's about what I see for a lot of folks here in Atlanta as well. Yeah, those taxes are no joke! 😬
@Mitzi73 2 жыл бұрын
I am turning 49 soon. I hope to become work-optional by 60 and retire fully at 63 or so. I fully expect to self-fund my retirement for the first 5 years and then tap social security at 68-ish (not sure what my FRA will be yet). I have no pension only what I saved in my Roth/regular 401k & Roth IRA plus cash.
@PranaWealth 2 жыл бұрын
@Mitzi73 -- fewer and fewer people have a pension these days, so you're not alone. Its all up to us to make it happen! Glad you're on track to retire! 🙌
@fishonaquabid 2 жыл бұрын
I like the way you walk through the math. This is a good starting point video for a single person planning on retiring. One huge expense that I have that is twice the cost of my married friends is travel. Hotels and cruses are based on 2 person occupancy. Since the average retiree (10% ) spends (40% for single) less than the average (all) American earns, I am going to assume that my retirement spending is 25% (the average of the two) less than my current earnings, based on your math.
@PranaWealth 2 жыл бұрын
@fishonaquabid -- the travel expenses are tough for singles! Back when I was single, I had some good luck with G Adventures as far as being flexible for singles. I know there are a couple more travel companies that do that, but haven't used them. It sounds like you have a good handle on your finances. Let's hope that travel becomes easier in the next year! 🤞
@glorgau 2 жыл бұрын
Unghhh. Cruises.
@spalding5198 Жыл бұрын
Thanks for the advice for single people. Appreciated.
@nancywalker5131 2 жыл бұрын
It is great that somebody talking about the single
@PranaWealth 2 жыл бұрын
Thanks, Nancy! 🙏
@karltraveldude7817 2 жыл бұрын
We have been in a money printing orgy ! I believe when this orgy ends there will be a new reality to all money realities , thank you for you predictions !
@PranaWealth 2 жыл бұрын
Karl, I think we've officially gone from, "We're all Keynesians now" to "We're all MMTers now."
@robbfitz8602 2 жыл бұрын
I have triple the amount I need for retirement. So glad I started when I was 18!
@PranaWealth 2 жыл бұрын
Robb -- that's amazing! You were WAY ahead of the curve! 🙌
@paull9137 2 жыл бұрын
Social security is such a big factor for a typical retirement scenario. Hopefully it is available as expected when the time comes. Property taxes and healthcare in the US seem like large expenses that can crush a fixed income budget. I'm generally an optimistic person, but I may be working a lot longer than I'd like, not because I haven't saved, but because the essentials keep getting more expensive.........
@PranaWealth 2 жыл бұрын
Paul -- what you're experiencing actually shows up in the data. While housing stays relatively stable, it does increase as a percentage of the average retiree's budget. I'm confident that current retirees will have Social Security benefits that are relatively stable. We'll see how that works out for younger folks, however. 😳
@janetkenny4861 5 ай бұрын
I think the only actual housing cost that might be slightly less for single me than my neighbors who are couples, might be my water use inside. Cost me the same for my home insurance, property taxes, lawn care, heat, etc. yes, my groceries are probably less and I have one car to maintain. The most important thing to figure out is your monthly expenses and the annual income to cover your expenses, and figure in an inflation factor to estimate what you will need to cover your retirement.
@fredmorgan996 2 жыл бұрын
Thanks for the video! This might be a stupid question but are we talking gross numbers or net numbers?
@PranaWealth 2 жыл бұрын
Thanks, Fred! These should be gross numbers, based upon the data in the study. Of course, this leads me to believe that these kinds of spending levels represent a more austere level of retirement than most people would ideally plan for. I'm looking to do another one of these geared toward an average "middle class" retirement. Should be interesting. Thanks for watching and thanks for the great comment! 🙏
@tylerforeman667 9 ай бұрын
Retired at 55 several years ago, $1m in the bank. More time with my wife. 3-5 trips to the gym each week that I couldn’t do while working. Way less stress. More time for hobbies. Cycled 5,000 miles my 1st year of retirement. Joined a golf league that work travel had prevented. Actually have seen our net worth INCREASE nearly each year in retirement, thanks to no debt and years of dedicated investing with my FA Olivia Rene Reyes who made me a million after giving her a sum of one hundred and eighty thousand to start. Now i'm able to help my elderly mom more. Way more time spent outdoors with my family. Life is good!
@godfreymashale9323 9 ай бұрын
smart, You've done well for yourself sir. It’s all about accumulating wealth through compound interest investment
@Lorre386 9 ай бұрын
hi, i'm 49 and already planning ahead for my retirement, i know it's really early but i'm working really hard to retire by 55. I've been working as an accountant for an AUTO company for 12 years and i already have close to 100+ saved but i don't know where to start. Can your Fa invest it for me please? i don't think i can do it myself. please i need a reply
@tylerforeman667 9 ай бұрын
@@Lorre386I admire your hard work and i must say you're well on your way to retiring early. Look her up, she's not hard to find. Goodluck
@ParishBlein 9 ай бұрын
out of curiosity i did a quick web search, she has a pretty decent bio, I wrote her and I'm waiting on her reply. Thanks for the tip
@Lorre386 9 ай бұрын
@@ParishBlein thanks for saving me hours of research, curiously copied Olivia Rene Reyes on my browser, great share!
@billh4285 2 жыл бұрын
I think your numbers are a little low but a great video. Most FPs on KZfaq don't talk about single people. Thanks!
@PranaWealth 2 жыл бұрын
Thanks, Bill! This was a request, so be sure and let me know if there's a topic you'd like me to cover. 🙏
@garyjsimm 2 жыл бұрын
This is me, a single retiree. Interesting. Good video
@PranaWealth 2 жыл бұрын
Glad you liked it, Gary! I've had more requests to create some content for those with pensions, so I have that in the queue as well. I'm also working on an online course that will allow everyone to walk through these calculations on their own. Thanks for the comment and thanks for watching! Have a great Friday! 🙏
@garyjsimm 2 жыл бұрын
@@PranaWealth most of us with pensions depend on those pensions as the bulk of our retirement. Of course there are savings as well, but the heart of it financially is the pension. So guidance on how to maximize that, SS and savings is crucial. So many make mistakes and end up having to look for work at a time where they should be relaxing and enjoying life. So I pay attention to videos like this. Thank you
@PranaWealth 2 жыл бұрын
Will do, Gary. I've heard similar comments from others as well. I'll start pulling ideas for a video together!
@crimsonpearl4686 Жыл бұрын
This presentation is SO easy to follow and understand, which I appreciate as a 60 year single man, no children!. However, my SS if I was to take at 62 is showing at $1810 a month, and as much as $3200 if I delay to 70! I guess I am NOT the average! Also, I think STILL assuming a 7% return on investments is way too high in this day and age and going forward! I would push that down to 5%, at the most! My current retirement savings is $850,000 and I intend to work 5 more years to 65. If I stay at my current employer to 65 and put in at least 25 years (i'm at 28 now), our health insurance continues after retirement for life. What are your thoughts?
@bruceholmes4006 11 ай бұрын
Be nice to see a retirement video on someone who has lost a spouse. Say age 60. How that plays any role in retirement, taking social security, etc.
@PranaWealth 2 жыл бұрын
By the way, if you want to run these numbers for yourself, I've created a spreadsheet you can download and fill out! 📊 Check it out here: pranawealth.vipmembervault.com/products/courses/view/17
@SatyaSanathani Жыл бұрын
Thank you for the information on single person retirement planning. This is assuming you have already paid of all the mortgage on the house.
@davewelder5432 Жыл бұрын
It would be a massive undertaking but living expenses vary greatly by state a breakdown by state would be helpful
@keithadiedrichs6285 9 ай бұрын
I am a single mom of 5 which my youngest gesture 21. I am 57 years old and I'm just now making enough money to be able to put 5 grand a month and to retirement. This is a new journey for me because I am used to giving and not giving back to myself. I do not want to be relied on my kids to care for me I hope I'm not too late.
@vinyl1Earthlink 2 жыл бұрын
One advantage of being single is that you can save as much as you want, nobody will stop you. If you want to live on $25K and save $100K every year, from the time you are 50 until you retire, you can - assuming you have a decent job and a steady income.
@PranaWealth 2 жыл бұрын
So true! Relationships can be a challenge when it comes to money, for sure. Thanks for the great comment! 🙏
@RayLabs Жыл бұрын
Can you redo this scenario with current (2022) Inflation expectations. Also if they were 60 in 2021 and retiring in 2026 (when 65) the full SS Retirement benefit would be 67 instead of 65. Thank a lot for covering us Singles. I do wish someone would do a dedicated channel for Singles (If there is one out there I have not been able to locate it yet).
@398jeffersd Жыл бұрын
Finally a video for single people. This helps. Thank you!
@dtr579 2 жыл бұрын
This is a very good video. At 53, I am ahead of the game according to your calculations. I'm currently setting at $360K in retirement savings.
@PranaWealth 2 жыл бұрын
Awesome, Daniel! I'm thrilled you enjoyed the video. Best of luck in retirement! 🙌
@terryB4713 2 жыл бұрын
Thank you my only concern is 7%. Returns. I'm conservative only getting 3% on most. In my case I'd have to have saved more Right!
@dopeyone4697 2 жыл бұрын
I too do not know where the CFA get 7 percent without risking principal. I know the stock market average is 10 percent a year. But then you have a lot of risk of principal
@hump1953 2 жыл бұрын
Nice presentation but I don’t know if your dollar amounts are before or after taxes?? Taxes must be factored into the analysis….for example, is the $1500 per month average SS before or after Medicare and prescription drug and supplemental insurance and federal tax deductions ? Is the income before or after taxes?
@PranaWealth 2 жыл бұрын
Great question, @Hump -- it's been a few weeks, but I believe these are post-tax numbers.
@masterblaster2593 2 жыл бұрын
Thanks for the clear and easy to follow discussion, assumptions are fair and based on average values 👍 How about early retirees, say 60 yrs old, no pension, has 401k, IRA’s, non-retirement savings, and will claim SS at 67?
@PranaWealth 2 жыл бұрын
Interesting starting point, @Masterblaster25 ... What kind of living expenses are we talking here? 🧐
@jw_nomad Жыл бұрын
Your video is great, but for retirees 72 years older, their RMD withdrawal is more than 4%, besides the 7% rate isn’t guaranteed because at that Rmd time, retirees are more cautious, they put much of their saving on bond related issues which until recently is very pity. I just use 4% for evaluation.
@bruced.370 2 жыл бұрын
Yes this is very reasonable. Great job. So glad you didn't pull a Suze Orman and say you need millions.
@PranaWealth 2 жыл бұрын
@Bruce D. - Thank you! 🙏 You only need millions if you want to spend a lot. I haven't watched Suze Orman in a long time, but I'm not a fan of her brand of "tough love". This stuff is really hard for a LOT of people and we're incessantly bombarded with marketing and advertising. Thanks for the great comment!
@dennistyler8746 2 жыл бұрын
Things change when your Company closes after 20 - 30 years and you still need 9 years just for 62. The Pension is smaller ( if you have one). Next Company may not offer one...So you collect your monies each month, pay your bills just like you did when you worked FT. I expect to work PT to keep the Boat ⛵ afloat...Cheers to all who get there chilling and relaxing as much as possible. ✌
@kaym7704 2 жыл бұрын
I'll be retiring in Ecuador...so monthly expense will be $1,200 (that includes private medical insurance).
@PranaWealth 2 жыл бұрын
Oh that's an interesting data point! Thanks for sharing that, @Kay M ! 🙌🇪🇨
@JJoeisCooking 2 жыл бұрын
I ended up taking early retirement at 63 for health reasons and a family situation. I worked outside of the US for almost all of my working life and don't qualify for SS or Medicare. I lost 10% of my pension and German social security because of early retirement. Right now I am in a good living situation where my monthly costs are very low. I also have a rental property that pays me something every month. I am living only on my two pensions, following a strict budget, and investing/saving the rent that I receive and anything that I manage to not spend out of my budget. My health insurance is expensive and not very good. I just hope that I don't have anything major happen before I turn 65 when I can purchase Part A and the rest of Medicare. I had planned to retire at 66, but sometimes life throws stuff at you that messes up your plan.
@PranaWealth 2 жыл бұрын
@JoeisCooking - a lot of life is out of our control. It sounds like you're making it work and have a great attitude about everything! Truly, the only thing we can control in this life is our attitude. I hear you on the health insurance! As a business owner, I'm really feeling those costs. 😳
@sct4040 2 жыл бұрын
Yes, life throws curve balls.
@inctru 2 жыл бұрын
Choose the time/age you wish to end your life & plan from there. Best to go out on your own terms & with all your affairs in order. That's what freedom is supposed to be about.
@PranaWealth 2 жыл бұрын
SDH, I'd never advocate pulling a Hemingway, but I certainly can't argue with making sure that your affairs are in order. That's a huge gift you can give to your loved ones if something ever happens to you.
@stevenpaul5540 2 жыл бұрын
I know I am very fortunate to have earned a high income with no degree. I come from a family who lived hand to mouth. Despite all my poor financial decisions and foolish spending At 59 I have managed to save 750,000 and have a fully funded pension. I’m ahead of the curve. Thanks for the peace of mind.
@PranaWealth 2 жыл бұрын
That's amazing, Steven! Congrats! 🙌 A lot of our money stories are inherited, so I can't stress how hard it is to do what you've done. Kudos!
@myvenusheeler 2 жыл бұрын
I liked the video. As a single guy that has been retired for nearly four years the video seems very reasonable given the parameters that it was set at. In my personal case as a real - life example, my home and vehicles are paid for, and my SS income is in excess of the average shown in the example, so said SS income covers all my regular base expenses. My portfolio is not small but certainly not huge (not even close to the "Million Dollars" that is constantly being drummed up) and is for discretionary wants and major events like last year's HVAC changeout and a new roof. Portfolio is a simple 50-50 stock bond setup using two index funds. Going into retirement debt free is the best advice I give people who ask me.
@PranaWealth 2 жыл бұрын
@myvenusheeler -- that's awesome! Congrats on your retirement -- it seems like you have things well in order! 🙌 Yeah -- those unexpected house maintenance items always seem to come along at the wrong time. Thanks for watching and thanks for the great comment! 🙏
@caroleappling2007 2 жыл бұрын
Thank, for thinking of single people as well as numbers that are more realistic , then I have to save millions.
@e-spy 2 жыл бұрын
Thank you! my doctor has given me a choice. quit the stressful job or die. I am 59. I am okay! thank you so much!!! my house is paid, no debt, I have 425k saved. can do this!
@PranaWealth 2 жыл бұрын
Awesome!!! Good luck, @espy ! 🙌
@dorismosler3249 Жыл бұрын
Great to see something on singles. We are mostly urban however and have higher expenses and intend to do some travel. No way can do on 2640 per month. I’ve been traveling modestly and am closer to $3500/mo. Doesn’t include necessary home improvements, new car, and some will have health problems.
@greenwil Жыл бұрын
He is discussing being solo in retirement, so who is this we that you are referring to?
@Candygram_for_Mongo 2 жыл бұрын
Great video. The "single and retired" demographic is only going to get larger and the available financial advice is sparse. I would have mentioned the importance of the mighty ROTH IRA (or nearly equally powerful ROTH 401(k)) for singles, as they are headed into retirement with only one standard deduction.
@PranaWealth 2 жыл бұрын
Thanks, Pete! 🙏 You're absolutely right. I did a video about strategic Roth conversions in retirement a few months ago, but I think I didn't do a good job of explaining it. I may have to re-do it at some point...
@Mymindsgoingblanknow 2 жыл бұрын
I'm 56 and I'm retiring at 60. I'm a federal employee. I'll have around a half a million in my traditional tsp and I'm getting a pension of about $1,800 a month. My plan is to draw down my tsp with Roth conversions and live off that and my pension and hold off Social Security until 67.
@PranaWealth 2 жыл бұрын
Sean, if you can do that, it would be awesome! Especially if you could convert a lot of it before your RMDs start at age 72. Good luck, my friend! 🙌
@PranaWealth 2 жыл бұрын
JD, I've been keeping my eye on some of the proposed tax changes. So far, it looks like we'll still have the ability to make Roth conversions past 2021. There were a lot of wild stuff in the initial bill that have (thankfully) been cut out. I'll double-check where this is and post a video if it looks like there's a chance it makes it.
@PranaWealth 2 жыл бұрын
JD -- I haven't seen this particular change in any of the tax updates that I keep up with. Do you have a source on it? I'm not sure ERISA laws would allow you to roll an active Roth 401(k) plan into a Roth IRA. I did some digging this morning and couldn't find anything on it. They are talking about stopping the "backdoor" Roth contributions/conversions and limiting Roth conversions for people who make more than $400k.
@sharonrose2122 2 жыл бұрын
Love your video. I am a single woman. I’m 70 years old. I own my home I own my car I own everything I get a Social Security benefit of around $2300. I have very little if any of my money in investments. You get less than onepercent on your money if it’s in the bank and the stock market is very scary today on the year of 2022. I have available funds to me that is comparable to what you have presented in this video. But I just don’t see investments making 7% in today’s world I have some money unit 403B which I have not annuitized yet. Very leery about giving you all of my assets on the Internet. But inflation as well over 8% today and I don’t know if any per folio that grows at 7% at least without very high risk. And at 70 you can’t take that risk. Love the video it was good good information. Thank you
@PranaWealth 2 жыл бұрын
Glad you enjoyed the video, Sharon! As far as the 7% return number goes, that's a rounded historical average of the typical performance you'd expect from a traditional, diversified retirement portfolio. Of course, no one has any idea what the future holds. When I run these calculations, we have to think in terms of 20 - 30 year time horizons. Inflation is certainly a concern right now. Remember, these are all assumptions based on historical averages. If I'm creating a detailed financial plan, I would have to stress-test different inflation rates, lower returns, etc. Does that make sense? Thank you so much for watching and commenting!
@ameroamigo1 2 жыл бұрын
A distribution of the 32K would be nice.
@richardt1792 2 жыл бұрын
I much appreciate your discussion of this topic. I tried being married in Los Angeles and I just could not fit a wife into my budget. She cost into the 7 figures so at 68,, at least the women I have met here, would be a similar liability. It would appear that a husband is a form of late state, last minute financial planning instead of a relationship. I don't know if other guys have experienced this but it seems as though every first date is like the grilling of an IRS agent.
@PranaWealth 2 жыл бұрын
Dang, Richard -- that's tough. I know the dating world can be brutal sometimes.
@kimdavis5403 Жыл бұрын
Clearly you’re just not interested in women who do not need to be kept. Lots of us out there are perfectly situated with our own money, lots of assets, but probably not the ones you’re interested in.
@tomm8025 2 жыл бұрын
I was thinking a single person needs 65% (just under 2/3 of a couple) without any number crunching. Only problem I see, is that the 4% rule is about the money you can get without eating into your investments. This is fine for people with children that they WANT to leave assets to, however, if always single they are less likely to have children and no need to preserve the nest egg. It can be depleted based on a true life expectancy which should also account for less expenses (outside of healthcare) after age 70.
@PranaWealth 2 жыл бұрын
@Tom M -- your instincts are on target here. With the 4% rule, it will eventually dip into principal as living expenses increase with inflation. In those old studies, there were just a handful of scenarios where 4% was a "bounce your last check" type situation. Specifically, those people who retired right as the 70s stagflation era was starting cut it close.
@cooperparts 2 жыл бұрын
My wife and I spend 1500 a month phoenix az everything paid for cars home no debt we live in sun city taxes 100 a month vacations not included
@PranaWealth 2 жыл бұрын
Nice! I love Phoenix! Congrats on a great retirement, @cooperparts !
@janetkenny9105 2 жыл бұрын
Do I treat the pension like social security in the calculation? It has a 3% gaba.
@PranaWealth 2 жыл бұрын
Janet, that's exactly how I'd calculate it. Let me know if you run into any issues!
@mattl5503 2 жыл бұрын
$2640/mo seems awfully low. Using the theory that one needs 80% of pre-retirement income in retirement, that equals a pre- retirement income of only $40,000. Between pension and SS I will have about $90k/yr and I am still maxing out my 401(k) to prep for retirement in 6 years.
@PranaWealth 2 жыл бұрын
Matt -- I really do think that these numbers are weighted to folks who are on a very limited income. This would be a much more austere retirement than most folks would want, I'm guessing. I do plan to do another one of these geared toward more of a "middle class" expenses level, although there's a lot of disagreement on what that is. Glad that you have a pension to go along with that Social Security! Sounds like you're tracking nicely! 🙌
@JuanCintron 2 жыл бұрын
I will like to better understand how was the 'income needed per month' figure calculated? What does that actually includes. What if the individual had a paid off home and paid off electric or hybrid vehicle?
@PranaWealth 2 жыл бұрын
Juan -- great question. I'd encourage you to visit the study itself and see what kinds of expenses are listed in there. It's a pretty exhaustive list, so it seems they've thought about most everything. I think 61% of retirees in the study had paid off their mortgages. I don't think there's any data about electric vs. gas vehicles, however.
@ap1873 2 жыл бұрын
is the cost per month including a mortgage or rent? if so, I will have my house paid off before i retire so i should be in good shape
@PranaWealth 2 жыл бұрын
@ap1873 -- these cost do include mortgage / rent. In the study, about 4 in 5 retirees owned their homes. If you're on track to have your mortgage paid off by retirement, that's awesome! Congratulations! 🙌
@51dbail 2 жыл бұрын
Acquiring assets before you retire is the Key. Own your home and car, having 0 payments If your single look at retiring overseas. Working at a job that has a pension is a huge plus. I retired at 58 1/2 with less than 200k in investments.
@PranaWealth 2 жыл бұрын
Darryl, that's awesome. I'm still a huge fan of being debt-free (I am!), even with interest rates being so low for the moment. Really, it all comes down to deciding on what you want -- and what you can cut away. Retiring overseas really can help reduce expenses, too.
@51dbail 2 жыл бұрын
@@PranaWealth Living on a tropical island doesn't sink. You can retire many places for 3k a month and live well. As far as medical ins. Obama care has made it very affordable if you don't have major issues
@dopeyone4697 2 жыл бұрын
You did a great job in the video. As for the return of 7 percent these days it is not truly obtainable. If you have a nice dividend portfolio it will yield maybe an average of 5 percent. How do you and all the others come up with a yield of 7 percent without risking principal. That is what I do not get.
@PranaWealth 2 жыл бұрын
Great question, @dopey one . It's close to the long-term average return for a 60/40 or 70/30 portfolio. It's total return, so that would be growth & income. At some point, you may need to dip into principal. Unless you want to leave it all to your heirs, it's okay to tap principal on occasion.
@dopeyone4697 2 жыл бұрын
@@PranaWealth being old school and remembering great interest rates of the 80s if you had money to save I kind of thought that it is dipping into principle. I have about 70 Percent of my assets in dividend stocks and ETFs yielding avg 5 percent. I know dividend could be cut. So it just bewildered me when all cfas stay with 7 percent . Thanks for your being honest about possibly dipping in principle. Btw I am single and have no family to worry about leaving my assets if any are left. It is merely me having enough to live retirement. I hope to travel more with the freedom.
@johngill2853 2 жыл бұрын
Don't think dividend income think Total return. You want to look at the Trinity study, it's easily Googled
@KhmerMinnesnowta 2 жыл бұрын
I'm retired at 55 off my real estate capital gain with cash on hand without any taxes, pension benefits if any, and 401(K.) account. There are three components I like to share. Pay off home mortgage as soon as I can. Invest as early as possible in my retirement accounts. Downsize everything from a main home and all unneeded expenses with debt free when I'm ready to retire. Also, there is always an option in life to retire in abroad like SE Asia or South America with around $1,000 to $1,500 a month the most. Life is too short to do the thing we don't love doing. Get out of our comfort zone and see the world. Greetings from a genocide survivor and world traveler!
@PranaWealth 2 жыл бұрын
@Khmer Minsota -- thank you for sharing these great tips! I completely agree. Life is too short and happiness doesn't mean more "stuff". Debt-free is also a great plan! Congrats on retirement and thank you for the great comment! 🙏
@shawnm.9320 Жыл бұрын
Great video. Thank you. There are not enough videos for singles. Given that the stats shows that most people retire at 60-61, I would love to see this same video updated to today's numbers and assuming you retire at 61.
@PranaWealth Жыл бұрын
Glad you liked it, Shawn! I may have to revisit this one sometime!
@oldmaninthemirror 2 жыл бұрын
When you mention typical social security amount is that taking into account the Medicare Part B take?
@PranaWealth 2 жыл бұрын
Fantastic question! The Social Security number is a top-line amount and the Medicare premiums are included in the expenses number. That's how the BLS study broke it down, I believe.
@PranaWealth 2 жыл бұрын
Great point, JD. These healthcare sharing plans seem to be more and more popular. Great comment! 🙏
@Marauder92V 2 жыл бұрын
@@jdthompson5778 I have been looking at pre-Medicare ACA plans and I agree with you if the taxable income is in the levels Prana Wealth portrays in the video, the ACA has very favorable rates. The magic number is the MAGI for retirees. If they stay below the $80,800 income level, the ACA premiums are very reasonable and the plan selections are good in most parts of the country.
@jeffh1266 2 жыл бұрын
Based on my experience, the amount of monthly savings the 55 year old (and possibly the 60 yo) would need to save, would likely mean they have an income that would also increase the benefit from Social Security - meaning they'd actually have to save less. I do agree that the time to start saving, if you haven't, is right now. Otherwise you'll wind up having to work while in 'retirement' - again, I speak from experience.
@PranaWealth 2 жыл бұрын
Thanks for the comment, Jeff! 🙏
@CW-yj8ce 2 жыл бұрын
Should we base our number on what our spending would be i.e. how we want to retire? If necessities are 20k and desired discretionary is 10k then I only need 30k per year to live the way I want in retirement. If I was forced into retirement early due to job loss or ill health then I just need to come up with 20k yearly inclusive of health insurance to meet my basic needs until I receive SS and if SS is more than 20k after Medicare is deducted then I just need enough to get me there and a small nest egg for emergency and discretionary expenses.
@midlife_minimalist 2 жыл бұрын
You need to gross up for taxes and adjust for inflation. You will need more each year to have the same spending power of year one. Also what about emergencies / unplanned expenses.
@PranaWealth 2 жыл бұрын
@C W -- @Hilary H is right. You'll need to make sure that you're covered for taxes as well. As far as your original point, it would be a good idea to run the numbers both ways: desired discretionary and basic necessities. That way, you'll know what kind of range you'll need to plan for. Does that make sense?
@kylerider7125 Жыл бұрын
I’m 32 and I’m trying to retire as early as possible. I’m investing 3-4 thousand dollars a month in 401k Roth IRA and mutual funds. Make around 80-90 k a year. Hope I get to shut it down by 50 I don’t mind taking a part time low stress job at that point though to offset expenses
@sunbeltliving 2 жыл бұрын
Can you do one for age 50 too?
@PranaWealth 2 жыл бұрын
I'll add it to my queue, Paula!
@libbysingscontrezzo8419 Жыл бұрын
Of course if you save 10% of your income the first 10 years of your working life, you'll be all set when you hit 60. But who can do that when there are bars to frequent and clothes to buy? :) Glad to see, though, that your numbers are very close to what I came up with for myself and I might not have to starve. But I think in many places folks aren't going to be able to live on $3k a month unless their house is paid off. If you're 50 and things are looking bleak, find a government job that comes with a pension and your can turn things around.
@tonyc2761 2 жыл бұрын
Really, it's about how much net cashflow you have, per month, is what's important here.
@PranaWealth 2 жыл бұрын
So true, @Tony C -- cash flow is what drives the bus!
@lostboi3974 Жыл бұрын
September 16, 2022. What do you expect to happen with inflation as of now?
@butopiatoo 2 жыл бұрын
Nice analysis but living expenses seem low and inflation % low investment returns too high. IMHO. But nice outline. Thanks
@PranaWealth 2 жыл бұрын
@butopiatoo -- Great comment! 🙏 You're brining up some great points here. As far as the living expenses go, they are the averages from the study. However, I do believe that this kind of living expense number is a bit more austere than most people would prefer to live. I really do need to make an "average middle class" version of this. As far as returns go, that number is not out-of-bounds in relationship to historical averages. However, with valuations at the extreme levels we see them today, I would expect forward-looking 10-year returns to be lower than historical norms. Or heck, who knows, maybe this time really is different.
@butopiatoo 2 жыл бұрын
@@PranaWealth Porbably not different, but we don't know. I started last night looking at RMDs for the future based on my current tax advantaged accounts. I'm 67 so I was looking at what my RMDs would be at the year AFTER im 72. Bday in Dec. Very difficult since there ar no tables that tell you what the RMDs ar gonna be in 5-6 years. 2025 is last table I see. THIS would be a good discussion to have. I don't control what my IRAs are gonna make, I don't know what the government is gonna say my RMDs are going to be in 5-6 years. HELP!!!
@PranaWealth 2 жыл бұрын
@butopiatoo -- great idea for a video! The SECURE Act bumped the RMD age from 70-1/2 to 72 a few years ago, which changed things up a bit. The actual RMD will be based upon the value of your account at the beginning of the year, so the number itself will all depend on what kind of withdrawals & returns you see. However, the percentage you have to withdraw will grow each year over time. I'll add this topic to my video topic queue.
@butopiatoo 2 жыл бұрын
@@PranaWealth I was just surprised there are no RMD tables past 2025. I have an inherited IRA that I took the first distribution this year and was surprised to find the table is fixed on the year of death (2019) and since no RMD required for 2020 due to the pandemic, 2021 was first I had to take. At least on this account I can project it out as far as I want.
@PranaWealth 2 жыл бұрын
@butopiatoo -- unfortunately, inherited IRAs have different rules. Here's a link to a good article from Vanguard about the rules. You may want to read this over and ensure that you're good! investor.vanguard.com/inherit/ira-rmd
@Wong-Jack-Man 4 ай бұрын
Lifestyle and geography plays a huge factor I mean you can take your money overseas and live comfortably. If you’re fine living a modest minimalist lifestyle you can stretch your money six ways to Sunday. I’m 46 single no kids all by choice and plan to retire around 56 with 2mil. I’m a minimalist and don’t need to consume much and have basic hobbies like working out and reading books. It’s also good to know your life expectancy yea no one knows when your time is up but you can have a general sense based your past history, genetics, demographics etc. personally I’m not waiting until 65 and only have a few yrs left to enjoy. F.I.R.E financially independent retire early.
@jaketaylor9684 Жыл бұрын
How long will the money last in retirement?
@denisech3351 2 жыл бұрын
Being able to live on $2,640 or $3,000 a month seems very low. That only seems possible if you don’t live in a large city and you think you will stay in perfect health until your 90’s. I live in South Florida and there is no way you could retire here with such little income. How would a person with such low monthly income pay for health costs like dental implants, dentures, hearing aids, car repairs, repairs in their home like a new roof, a new central AC, constantly increasing home owners insurance, paying for a nurses aid when they are no longer able to take care of themselves?
@PranaWealth 2 жыл бұрын
Denise -- in my experience, you are absolutely right. Where you retire will factor heavily in how much you spend. Great comment! Thanks for watching! 🙏
@peacockis5254 2 жыл бұрын
how do you factor in taxes? is that all post-tax money?
@PranaWealth 2 жыл бұрын
Christa -- I believe that taxes are not included in these figures. However, they are listed in the study. You may want to check it out -- the numbers are really fascinating: bls.gov/cex/tables/calendar-year/mean-item-share-average-standard-error/reference-person-age-ranges-2020.pdf
@julietravels6400 2 жыл бұрын
Thanks for this video. I think this is a good framework for an initial calculation and easy enough for people to customize using their own specific data. "Average American" really doesn't mean much because people have such different lifestyles and cost of housing varies drastically across the country. Estimating retirement expenses is hard (at least for me), but most people should have a pretty good idea about their current savings and estimated Social Security/pensions.
@PranaWealth 2 жыл бұрын
Julie, I'm so happy that you enjoyed it! My guess is that most people looking for retirement information on KZfaq probably earn / spend a little more than these averages, but I don't want to assume anything, either. It's funny -- I made the video like this for $10,000 per month and got plenty of comments saying that was way too high. But if you live in a big city, that's probably what you're looking at. Thank you for watching and thanks for the great comment! 🙏
@Marauder92V 2 жыл бұрын
@@PranaWealth I have watched some of your videos (a subscriber) and will seek out the higher expense retirement scenario video to watch. I am with Julie in that there are a lot of places in the country where the cost of living is at a point where a couple should expect to see $80k to $120k of annual expenses. I think something that is missing in your videos is the implication of taxes on your nest egg. As you know, someone who retires with a portfolio heavy in stock investments, taxes are going to have an impact on how much you need to save. As someone who is retiring soon, I am frustrated by the lack of coordination between the financial planners and the tax folks. I am tired of a planner saying “you will need to seek the advice of your tax planner” or a tax guy saying “you will need to seek the advice of your financial planner”. They go hand in hand and I think the industry needs advisors where they are working together as part of a solution. I haven’t looked through all of your videos but if you don’t have one on withdrawal strategies, I think people would like to see one. The “4% rule” works if you know which investments should be used first. I appreciate you making these videos. Helps those of us who are taking the big leap…
@PranaWealth 2 жыл бұрын
@Marauder92V -- you bring up some great points here. First off, I'm not a tax preparer. So for compliance purposes, I have to caveat all tax discussions. That's why you see every financial planner say something to the effect of, "you will need to seek the advice of your tax preparer." We're not trying to escape the discussion -- we're simply following the outlines of the regulators. I certainly don't want to run afoul of them! Second -- I'm in total agreement with you. So many fee-only financial planners like me are incredibly frustrated with the complete lack of strategic thinking on the part of the CPA community. It seems that their business is a volume play, so they turn into tax preparers rather than tax planners. It seems to be getting worse, too. It's incredibly frustrating. For some of these discussions, I need to keep them high-level or else these videos would end up being an hour long! I did make a video about which accounts to use first in retirement, but again, it's high level. I'm doing my best to bring some helpful information out here to KZfaq, but there's really no substitute for working with a financial planner. I put a lot of hours into building this stuff out for my clients and each case is different. I'm going to start thinking about ways to incorporate more of the tax issues into these videos. It's an important topic. Thanks for the great comment and thanks for watching! 🙏
@Marauder92V 2 жыл бұрын
@@PranaWealth It might be a great video where a financial planner and a tax guy present views jointly. I don’t think anyone is expecting a full fiduciary approach with these videos, rather it would be beneficial to help your viewers understand how the financial and tax plans need to work together. It’s like talking about how to drive a car if you only concentrate on the steering wheel and never mention the pedals. 😉 As for CPAs. Don’t get me started. You are absolutely right how a good percentage of the CPAs are concentrating on tax preparation (using a version of TurboTax on steroids) and won’t even discuss retirement tax strategies. I learned that ugly truth with the CPA who has been doing my taxes for 20 years. I asked him a basic question about retirement taxes and you would have thought I asked him about taking his wife out for a date. Keep up the good work. Looking forward to the next video.
@PranaWealth 2 жыл бұрын
Thanks, @Marauder92V ! I'd love to find a CPA to riff with on these topics in a video sometime. I think that's a fantastic idea!
@KatrinaJoseph 10 ай бұрын
I would say 4% withdrawal is generous. Try 3% instead.
@timelston4260 2 жыл бұрын
Lifelong single adult here. Are those target amounts averages or medians? Are they of the "average American" or of the "average American retiree"? Is the 7% premised on a traditional 60/40 portfolio? Thanks for tailoring this one for singles. I get tired of the ubiquitous couples financial videos out there. Hello, there are bachelors and widows out here. Another good video would be the same info, but adjusted for retiring at 60 and 55, instead of in five or ten years from those ages. I'm 59 and have $1.5M in my retirement accounts, but it's still hard to trust I have enough to pull the plug, after scrimping for so long.
@PranaWealth 2 жыл бұрын
Tim -- great questions! These numbers are averages from the study. I don't have median numbers, but they did include standard deviations. You might want to check out the numbers -- they're pretty fascinating. As far as the return assumption goes, I have 7% as a starting point for the conversation. I kind of feel like picking a return assumption is a no-win scenario these days. Someone is going to argue for higher or lower returns. Who knows what will be right over the coming decade and beyond. Personally, I think 7% might be a little generous for a 60/40 when it comes to forward-looking 10 year average returns. As far as retiring at 60 goes, I'd have to interpolate the data, but it could be done. I'm actually working on an online course that will allow folks to run their own numbers through this kind of analysis. Stay tuned! Thanks for watching and thanks for the great comment! 🙏
@stevemiller2210 Жыл бұрын
Good luck getting your 7%
@PositiveMommaLife 2 жыл бұрын
Clicked fast on this. Single. Worked hard. Still working.
@PranaWealth 2 жыл бұрын
Hope you enjoyed it, Mark! 🙏
@marylennon1524 2 жыл бұрын
Would I include my fully paid off house in my retirement portfolio?
@PranaWealth 2 жыл бұрын
Great question, Mary. I would probably leave that out. That home equity is always there if you really need it, but tapping into it would be for emergencies, I would say. I'd be reluctant to use that to fund normal retirement expenses. However, in a pinch, a home equity line of credit or reverse mortgage would be ways to access that value. I hope this helps!
@marylennon1524 2 жыл бұрын
@@PranaWealth thank you for your thoughtful reply!
@PranaWealth 2 жыл бұрын
Anytime, Mary! Thanks for watching! 🙏
@wrongwayeric 2 жыл бұрын
Your assumptions fit me perfectly, only with and without my mortgage. That means a spouse costs the same as my home. Well I'm sorry but the house is just better.
@PranaWealth 2 жыл бұрын
Ha! That's funny -- well, at least you can joke about it. If you can't, then that's serious!
@rocioarteaga7606 2 жыл бұрын
That is assuming SS will pay out for all of your retirement days. Its expected to pay out lower amounts starting 2034 unless they do something about it.
@PranaWealth 2 жыл бұрын
Rocio -- the Social Security system is going to have some challenges. I do expect things to eventually be sorted out. Perhaps it's a good idea to plan for a smaller benefits from SS. However, once 2034 rolls around, I completely expect politicians to fix it -- out of their own self-interests at the very least. Medicare worries me more than SS does at this point.
@kimmykero2421 Жыл бұрын
Thank you good sir for thinking about single people, its much appreciated! Also very helpful content!
@thewonderof06790 2 жыл бұрын
Thanks! I can either afford a wife, or withstand a 90% market drop based on this.
@PranaWealth 2 жыл бұрын
That's hilarious. Any responses, ladies? 🤣
@mariahsmom9457 Жыл бұрын
Lol❤😂
@TheFirstRealChewy Жыл бұрын
$2640/mo. for a single person? After taxes? That seems abnormally low.
@ButcherBird-FW190D Жыл бұрын
I agree. I am age 59, and granted, I spend quite a bit. The GF and I just like to travel. My house is 2 years into a 10-year loan at 1.875%, and I'm at 20% LTV. Good there.... Sewww..... House payment is $2.5k per month and I spend roughly $6k on top of that. Fortunately, I have already retired from the FDIC so the pension helps, and I net right at $10k per month from work. Still..... I'm only saving about $4k per month at this time. Should be more, but my point is that even if my house were paid off, I'm spending $6k per month. Not $2,600....
@azhardav 2 жыл бұрын
want to retire at 55 in 2.5 yrs. Have $500k traditional 401k, $200k Roth 401k, 2 rentals paid off worth $700k with cash flow at $3500 monthly. Make too much for IRA contribution and have $100k sitting in bank account trying to figure out where to invest it- very healthy, will retire in Philippines- so 40% farther money will go, retire from major airline so travel very cheap for me. Have 35 years in SS at $2.5k at 62, $3k at 65, Where should I invest $100k to bridge gap to get me to $5k monthly from 55 to 65 without tapping my 401K? Riddle me that?
@PranaWealth 2 жыл бұрын
Ha! @azharley -- a great question that, unfortunately, I can't answer. I don't really know your full financial picture, so it's hard to say with any certainty where it would be best to put that $100k. Even a small tax detail could change the answer. Not only that, giving financial advice to someone who's not a client is a no-no with regulators! I certainly don't want to run afoul of those rules. However -- just to make sure I get this right: $700k invested * 4% = $28,000 per year ($2,333 per month) + $3,500 per month cash flow from rental properties = $5,833 per month cash flow And that's before Social Security kicks in, right? Seems like you're already at $5k/month?
@5280Roadrunner 2 жыл бұрын
Do these numbers include a mortgage or lease expenses?
@PranaWealth 2 жыл бұрын
Great question, @5280 Roadrunner . In the data, 4 out of 5 of the retirees in this group owned a home. The majority of them had no mortgage. So, while there were some housing expenses, they weren't as high (relatively) as they were in younger age cohorts. Does that make sense? Thanks for watching and thanks for the great comment! 🙏
@5280Roadrunner 2 жыл бұрын
@@PranaWealth sure does. Appreciate the response
@PranaWealth 2 жыл бұрын
Anytime, @5280 Roadrunner ! Is that mile high or mile long? I had knee surgery a week ago, so I've officially hung up my running shoes. 🙁
@5280Roadrunner 2 жыл бұрын
@@PranaWealth mile high. I live in Colorado. I can identify with hanging up running shoes as I use to run but my knees aren’t build for that anymore
@PranaWealth 2 жыл бұрын
Awesome! I have some good friends out in Denver and Boulder. Yeah -- my plan is to start focusing on cycling going forward. It's tough to give that up, though. My best friend lives in Tampa and is training to try and run a 1:30 half. It's hard to hear about that and not want to get out there again. I guess there's a time and season for everything. At least we have some decent trails around here.
@southernfriedkiwi6340 2 жыл бұрын
The data needs a deep dive. Going into retirement renting or with 10-15 years of mortgage payments still needing to be made is completely different than going into retirement with no mortgage. My parents owned their very modest home back in the early 90s, but sold it and rented an apartment in a larger, more expensive town, to be closer to better health care. That stupid decision bankrupted them in about 10 years. If you rent, then you are at the mercy of the landlord.
@PranaWealth 2 жыл бұрын
Southern Fried Kiwi -- the rent question is a tough one. It certainly brings the risk of having your housing costs increase with inflation over time (where a fixed mortgage is what it is). I hope your parents figured things out and are okay! 🤞
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