$6000

It doesn't have to be though. What you do is create a budget and stick to it. If it's hard to stick to your budget then it's too tight. Don't want to create a budget? Then do one important thing. Pay yourself first. As soon as you get paid, figure out how much of that pay you want to save and/or invest for your future self, then figure out how to live on what's left. That's how I started to save. As soon as the money comes in it goes towards expenses and investments and only enough for next month's expenses are left at the end of each month. Now I have a fixed, monthly budget for expenses (started this year) and everything else goes to investments. So if I make any extra money in the year, it will all go towards investments. I'll reassess the budget next year.

@B Poor. You may find yourself in required minimum distraction / RMD. Try to convert to Roth.

You're suffering from recent bias This will end eventually and you'll forget it even happened down the road. Believe me I can't remember all the times the market felt like this they are just distant memories

@@johngill2853 well running a Monte Carlo at 2% still isn’t a 100% chance of success. But I tried it at 1% and it wasn’t there either. Which is a bit odd considering at those low numbers you could draw it all from a cash account and make it 30yrs.

Keep in mind that if your $1 million only keeps up with inflation, hence all it does it retain its value today, a 2% withdrawal should last 50 years. I'd say reassess your spend rate every 3-5 years.

@@TheFirstRealChewy shouldn’t it last indefinitely

also having a roth to draw from would reduce Obummer care cost until you turn 65.

@@swamprat9018 Or just move out of the US and escape the US healthcare system altogether.

@@MrSean03839 That would not work well for me. Even tho are freedoms have been eaten away some I could not give up.

@@swamprat9018 Up to each person, big world out there with a lot of options. Most people don't know anything about other countries and their systems, people just go with what they heard. And you always have the option of returning so.....

Insanity

They are not average. Most retired people are paying nowhere near $15,000 annually for healthcare. Median income of a 75-year-old is $34,000 (that means exactly half make less)

My wife is on Medicare in Florida as are our parents. Monthly Medicare premiums will be $180-370 depending on income. A supplement is another $50-180. Medicare D is $12-35. If you do Medicare advantage(HMO) would be less but with higher copays. So minimum is about $250 per month premiums, then some deductibles and copays. We as a couple budget $1000 per month($500pp) but usually spend less.

@@randolphh8005 thanks for sharing that so we can have an idea of how much our costs will run

@@johngill2853 You can also lookup Medicare costs. I remember checking this a month ago. They have a good breakdown of the costs depending on income.

With a paid off home you can live very well on $75,000 a year in California. Not everyone or even every homeowner in California makes a 6 figure salary. In fact the majority of people in California do not

You make it sound like saving 2.5 million is easy. You will need to be lucky, high income (while still saving majority) or won’t reach it until old age which money won’t matter as much anymore. It’s a pretty miserable goal instead of retiring much earlier and living on less.

@@a012345 If it were easy everyone would do it. Saving $2.5 million on a 2 person professional working household by your 50s is very much possible.

@@ariefraiser140 How many millions have you managed to save up? Do you even understand what the median household income in the US is? It’s not definitely not easy. Not even plausible in some cases. With real returns plummeting in the next decade, you need to be realistic. A family who would scrimp for 30 years to save 2.5 million wouldn’t need it anyways. They could live on way less and retire way earlier than 50.

@@a012345 So $1.25 million per person by their 50s. Yes, it's not easy or attainable for everyone, but it is attainable for some. The first step to getting there is to believe you can. Then you work as hard as you can to get there. I'm not there, although I'd like to get there, and so that has me thinking about ways to get there. However, it's much less likely for me to get there if I don't believe it's possible.

Too much GD work, that's why. Passive investing in VTSAX is the way, Grasshopper. Leaves plenty of time to golf, fish, hike, bike and, most importantly, chase skirt.

Technically that's what people are doing when they invest in stocks. I'm not sure how many people today only save and not invest for retirement. If they are just saving then its likely fear that stops them from investing. My plan is to focus on four, main investments. Stocks, Real Estate, Business and Myself.

A legend in her own mind…

Legendary crook 😂😂😂

Then if that was true there would only be maybe 2% of seniors retired? You can actually retire with nothing but Social Security. It's done every day

She lost track of financial reality for most normal people a long time ago.

I believe she was referring to someone retiring in their 30s. I think many would agree that you can "safely" retire with that amount of money. The thought is that you can handle most of life's events with that much money, such as buying a home, getting married, getting divorced, having kids, child support, paying for college, traveling, medical emergencies and long term care. Of course, you can also retire with less.

You can easily retire on 1 million if you are 60 years old and debt free. Just live in an area of the country that is not excessively priced. The average couple will receive 40-50k in Social Security @67 (in today’s dollars). You could pull out 6% of 1 million (60k per year) for the next 7 years, even assuming you are only earning a 4% return, after the 7 years of withdrawals (ages 60 to 66) you will still have $840,000 @ age 67. Starting @ 67 they could withdraw 3% of their remaining balance (about 25k per year) and they would never run out of money.

@@bradk7653 stupid math

@albert Hong Actually it is simple math. It works without failure, that is unless the total economy collapses (I'm not talking a recession, those are normal, most retirees will live thru 2-4 recessions in their retirement).

With an IRA there are no RMD's, so how long it'll last depends on how much you take out each year and what you have the money invested in.

@@tomwalma4762 Whoops, you're right. Well the rest still applies. Mike there are RMD calculators out there that can help estimate that sort of thing.

Depending on how much you need to spend per month is the real question. I don't think you have to worry about rmd's if you are 72 for a lot of reasons. One, rmd's are most likely going to be moved up to 75. If you are a male who is 72 it's unlikely you will live that much longer. Look up average death rates for men, consider your own health and family history. If married the real issue is probably the widow tax trap. The rmd's will simply eat into your SS payout, reducing it. That's by design. So if you are just trying to calculate how long one million will last at 72 just be super crazy conservative, consider SS a wash and figure out how much per month you will need. SS will never be a wash, but that's why I said super crazy conservative. Unless you are living large one million at 72 should not be a problem. If you are really concerned just do so e Roth conversions before the rmd age, preferably before you are drawing SS.

There is a calculation for the RMDs. But high level I use 4% of the balance of my IRA when I forecast. You have to do RMDs to pay taxes on it, but you don’t need to spend it you can reinvest it in after tax investments.

How long do you want it to last? What are you going to invest it in? It can last forever if you don't spend too much and you invest it. Even in your '80s when rmds become high you can still reinvest that money in a taxable account.