Can I Retire at 60 with $500,000 & Claim Social Security Benefits Early?

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Жыл бұрын

🌟 Can I Retire at 60 with $500,000 & Claim Social Security Benefits Early?
In this video we will explore the question: "Can I retire at 60 with retirement savings of $500,000 and still claim Social Security benefits early?" It's a complex and personal decision, so let's dive into some key considerations.
First and foremost, it's crucial to acknowledge that retirement planning is unique to each individual. Factors such as retirement lifestyle choices, healthcare needs in retirement, and desired standard of living play significant roles in determining one's retirement readiness. However, I'd like to offer some insights based on general retirement principles.
1️⃣ Assess your financial situation: Start by evaluating your current financial & retirement status. Take into account your savings, investments, and any potential income sources. $500,000 is a substantial sum, but it's essential to determine if it can sustain you throughout your retirement years.
2️⃣ Calculate your retirement expenses: Create a detailed budget to estimate your monthly expenses in retirement. Consider essential costs like housing, healthcare, food, transportation, and discretionary expenses such as travel or hobbies. Understanding your financial obligations will help you gauge the feasibility of retiring at 60.
3️⃣ Explore Social Security benefits: While you can begin claiming Social Security benefits as early as age 62, it's important to note that doing so will result in a reduced monthly payment. On the other hand, waiting until your full retirement age (typically between 66 and 67) or even delaying until age 70 can lead to higher monthly benefits. Evaluate the trade-offs and determine the best strategy based on your financial needs.
Remember, retirement is a milestone that should bring peace of mind and financial security. While $500,000 is a considerable amount, it's vital to assess whether it can support your desired retirement lifestyle. A well-thought-out plan, coupled with informed decision-making, will pave the way for a fulfilling and worry-free retirement.
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Retirement income strategies and retirement income planning are two big pieces to anyones retirement planning calculator. Whether you are wanting to know strategies for "retirement planning at 30", "retirement planning at 40", "retirement planning at 50", or even "retirement planning at 60" understanding how much retirement income that you want versus how much you need gives you a roadmap to follow to and through retirement.
Here at Pearl Wealth Group, we run a trademarked retirement investment and retirement income plan for individuals and families who are wanting to retire called "Your Financial EKG™." What we are trying to visualize is how long a persons retirement savings are going to last throughout retirement. If you are looking for early retirement planning tips or trying to saving for retirement in your 50's, You Financial EKG™ is a great tool to help you understand where you are retirement planning. Retirement planning and retirement income strategies shouldn't be complicated. They should just be done right.
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Pearl Wealth Group
Drew Blackston, CRC® & RFC®
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Info@pearlwealthgroup.com
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Getting you to Retirement, through Retirement, & protecting YOUR ability to stay in Retirement!
#retirementplanning #retirement #financialfreedom

Пікірлер: 214

@yourfinancialekg Жыл бұрын

**Free Retirement Download: The Checklist to Retirement:** 📊 pearlwealthgroup.com/

@user-mn1dj3ew7s Жыл бұрын

Really informative. One of the best I have seen on KZfaq.

@yourfinancialekg Жыл бұрын

Wow, thanks!

@remingtonsypro3160 Жыл бұрын

Just a quick comment This is a great video. I do appreciate the time you put into informing people of something that's so important. Thank you again!! ✌️ Thx T

@yourfinancialekg Жыл бұрын

Thanks for watching!

@mikewarby9795 Жыл бұрын

Good vid! Like your presentation methodology. Thanks

@yourfinancialekg Жыл бұрын

Glad it was helpful!

@grcerosa 9 ай бұрын

Awesome, awesome. Awesome, as usual Drew. 👍🏻 💰

@yourfinancialekg 9 ай бұрын

Thank you so much!

@JimmyMins Жыл бұрын

Thank you,This is the video I have been looking for.Great explanation..

@yourfinancialekg Жыл бұрын

Thanks for watching!

@TeamJesusOutdoors 11 ай бұрын

Truly fascinating, my friend! 😊

@yourfinancialekg 11 ай бұрын

Thanks for watching!

@grcerosa 11 ай бұрын

Beautiful as always drew fabulous 👍🏻👏👏💰📈✏️📝

@yourfinancialekg 11 ай бұрын

Thank you so much 😀

@sct4040 3 ай бұрын

Great to know I did the right thing. I took SS in Jan after I retired at 63.

@yourfinancialekg 3 ай бұрын

Awesome!

@firozjivanjee7765 Жыл бұрын

Great and very informative videos you do. Keep it up Drew !!

@yourfinancialekg Жыл бұрын

Thank you for watching!

@punisher6659 Жыл бұрын

I look forward to all your videos.

@yourfinancialekg Жыл бұрын

Thanks for watching!

@mdcummins62 Жыл бұрын

Great explanation as always, Drew. I really enjoy your videos. Would it make sense, in this scenario, to do any Roth conversions while this couple is in their 60s paying little to no taxes? I'll hang up and listen. 😉

@yourfinancialekg Жыл бұрын

Yes great idea

@Mark-cm4hy Ай бұрын

There is a fatal flaw with a lot of social security calculations which is the break even age with social security which is 79.8 years old. I am using my situation as an example using my personal social security statement. If I retire at 62 I will collect $490,000.00 by 79 65 I will collect $504,000.00 by 79 67 I will collect $504,000.00 by 79 They are all quite similar and I did not calculate COLA increases as I do not know future expectations of inflation. I see no benefit by waiting. 67

@yourfinancialekg Ай бұрын

Thanks for sharing!

@billnotice9957 Ай бұрын

TY. This was the best presentation. I have ever seen. This is my wife and I except I have small frozen pension that would kick in 600 bucks a month. Great job. Pulling the plug at 62 come hell or high water. Wife likes her job. I only tolerate my job.

@yourfinancialekg Ай бұрын

Thanks for watching!

@rayanderson3164 Жыл бұрын

Awesomesauce! Nothing better than using the tax code to your advantage. They could still even do some Roth conversions and still be well within the 10-12% bracket and avoid RMDs altogether. Small bites every year to avoid higher SS taxes of course, but still, they may actually avoid most if not all of the taxes they might otherwise have to pay. Great video Drew.

@yourfinancialekg Жыл бұрын

Great idea Ray!

@toddhallam9598 Жыл бұрын

Brilliant! Bravo!

@yourfinancialekg Жыл бұрын

Thank you!

@craigschray4486 3 ай бұрын

50k in expenses is madness. If you got payments, you probably shouldn't be retiring. When I retire, we won't have mortgage and car payments

@yourfinancialekg 3 ай бұрын

That's a great mindset!

@miketheyunggod2534 Ай бұрын

What BS. I retired at 55 six years ago with $200K. Six years later I’m doing fine with a mortgage, car payment, and sending my son to college. You don’t know what the hell you’re talking about.

@craigschray4486 Ай бұрын

@miketheyunggod2534 how much of that 200k you got left? How much is your mortgage payment? How much is your car payment? Do you have health insurance? How much income are you generating from 200k? Enquiring minds would like to know.

@nolanrizzo3812 28 күн бұрын

@@craigschray4486dude ppl are on ssi and living just fine. You ppl are so dramatic

@nolanrizzo3812 28 күн бұрын

@@craigschray4486some ppl also pick up a part time job! If that’s all you had in retirement,you would make it work. You continue to work and listen to Dave Ramsey and suze orman they’re killing you with all this investing lol 😂work til you 100 years old and die and not enjoy your money🙄🙄

@NameRequiredSoHere Жыл бұрын

I think 6% return and 3% inflation is wildly optimistic. And you often get the explanation, "over the long term". When you hit retirement age, there is no long term. Ultimately, it's a crap shoot: Should I spend based on the average life expectancy (76 for me) and indulge myself? Or, should I plan to live into my nineties and me both very frugal, and still go low risk to protect my principle in both cases? This is the question both I and my peers have.

@yourfinancialekg Жыл бұрын

Both great questions! I think you can find a balance between the two. That is what I try to communicate to my clients. Life is short. We all know that. But we also have to plan for the unknown. Thank you so much for the great comment.

@NipItInTheBud100 Жыл бұрын

I dont think its widely optimistic as opposed to just being optimistic. Good points though!!

@OShackHennessy Жыл бұрын

Yes I would not plan for 6/3% I’d be more conservative

@88888gerald 10 ай бұрын

pretty good odds you will live longer than you think....but waiting for the largest benefit from ss isnt a bad thing...no one ever said..wow I never needed this much money....

@thereasoner9454 6 ай бұрын

For those replying to this saying 6%/3% is optimistic, please provide what you feel would be realistic. Are you suggesting a 4%/4%? Then that would mean you better have a ton more money saved for retirement, since you will not have any net gains. I doubt we are all saving $1,000,000-$3,000,000 for retirement to allow for zero gains in retirement. My investments have a lifetime average of 11.5% to 13% return. I will reduce risk and returns after retirement to about half that. However, I will reduce my expenses by half, and have an additional stockpile of cash to augment changes as necessary to avoid harsh market downs. All on a single income in a high cost area of California, as an average high-school graduate. It's not what you make, it's what you spend. Live on less than you make, don't over consume on wants, and you will be fine to retire easily by 65, when Medicare helps reduce your medical premium costs. Even earlier if you are aggressive with investments and savings like I have. I grew up financially in a middle-lower class to upper-lower class, and now we are in the upper-middle class. Not a bad jump in one generation. No inheritance, gifts, lottery winnings, etc.

@dannyl6507 Жыл бұрын

What a great perspective. One would never know if it would be better to take ss income early without this analysis for this couple from their tax standpoint. One reason ROTH accounts may be better is because it doesnt impact the provisional income effecting tax on your ss income whereas traditional IRAs and traditional 401k will. Also ROTHs have no RMDs. Another thing to consider is since they run out of their savings at some point, a deferred income annuity as part of their portfolio would provide lifetime income that would never run out and provide a death benefit, so they wouldnt be forced to sell their house or get the dreadful reverse mortgage.

@yourfinancialekg Жыл бұрын

Thank you for watching! Roth IRA's are great!

@suzanneemerson9787 Жыл бұрын

The annuity sales person’s pitch.

@bobackerman54 10 ай бұрын

Before i would ever purchase an annuity i would defer my social security and use that as my annuity since it has a COLA ...

@jkeeton5297 11 ай бұрын

Love Love Love it! ❤

@yourfinancialekg 11 ай бұрын

Thanks for watching!

@tonylevine2716 10 ай бұрын

Just found out about this Channel a few days ago, and it is great! Seems he is very popular because my call is not until 28 Nov. I would like to see a video on those of us who have a military retirement pension and VA disability check. I'm 55 now, would like to retire at 60 and take SS at 62.

@yourfinancialekg 10 ай бұрын

Thanks for being patient! Yes, we can certainly work on a scenario like that.

@crammia Ай бұрын

Love your videos - thank you! The only part I can't follow is why the SS taxable amount is not the full year amount divided by 2? How are you getting that low figure there?

@brianbunk9057 Жыл бұрын

Great video

@yourfinancialekg Жыл бұрын

Thanks!

@allanbartlett123 Жыл бұрын

They need to take out more from the IRA to maximize the lower tax bracket in my opinion.

@yourfinancialekg Жыл бұрын

Great idea Allan!

@miketheyunggod2534 Ай бұрын

All my money is safe in the bank.

@jamesof7seven 19 күн бұрын

How... how does that werk?

@allanbartlett123 19 күн бұрын

@@jamesof7sevendepending on your situation, if you’re married filing jointly and no otherwise taxable income in retirement, you can take up to $27,000 out of your IRA and not pay a dime of taxes

@rockinchucker4941 Жыл бұрын

Im there now but have decided to go another 10yr. It = 1mil in income or 400k saved. + the 900k will last longer. "Based on current cost/ earnings levels. Presently I'm doing alot at home before I start my night shift, I tell my wife I'm going to work to rest. I've seen others work past 70 doing what I do. 😊

@yourfinancialekg Жыл бұрын

Keep going strong!

@bobackerman54 11 ай бұрын

one point I cannot remember you addressing in any of your videos is what happens in the case of a deceased spouse. My mother died at age 66 and my dad is still alive at age 88. In the case of this video where there are two social security benefits involved it seems it may be prudent to take the benefit for the lower income spouse at age 62 and allow the higher income spouse's benefit to increase for as long as possible to reduce the negative exposure to a deceased spouse situation. The only way to know for sure is to run the numbers for each scenario in the software. For me (age 61 & wife 65) there is only a 10 percent chance I live past 92 (30 years) but there is a 10 percent chance or greater that either my wife or I is deceased within within five years. It seems that a premature death consideration is a MUST in any retirement plan.

@yourfinancialekg 11 ай бұрын

Good point and great retirement video idea!

@allikat1352 Ай бұрын

My husband and I are doing this. He took SS at 68, which for him was late(1948 baby). I will take mine at 62. Then if he goes first, I will switch to his(1965 baby). His amount is the same as mine would be if I waited to 67. But in the meantime. I can draw down an extra 126k( not including COLA adjustments) in that 5 years that I take it early.

@dforrest4503 Жыл бұрын

If they are in such a low tax rate when taking SS early, would it make sense to do Roth conversions, or would their tax rate still be low even with RMDs? Nice video!

@yourfinancialekg Жыл бұрын

Would be a great consideration

@reneesoli5345 Жыл бұрын

You read our life.

@yourfinancialekg Жыл бұрын

Glad it helped!

@rickm8456 6 ай бұрын

One thing to consider is your spouses benefit. If you are the breadwinner and you take it early, then if something happens to you, your spouse will get the reduced rate the rest of their life.

@yourfinancialekg 6 ай бұрын

Great comment!

@glennt222 Жыл бұрын

Here on the work planet I'll have to keep on working past 70.

@jimc4839 Жыл бұрын

I toil over the question of whether to take SS at 65 or waiting and pull from my IRA until I hit 67 or 68. I get 8% on my SS every year I wait. Doubt I will get 8% return on my IRA yearly.

@yourfinancialekg Жыл бұрын

It is a tough decision!

@tima.9125 6 ай бұрын

This plan sounds great, if both live to their 90's, what happens to the taxes if 1 person dies early and then the IRA needs to be withdrawn in ten years greatly increasing the taxes because you lose the filing joint deduction, and as you age your spending more than likely will go down, at that point with both SSI the yearly spend may be covered with including the IRA, seems planning is very specific to each individual or couple.

@yourfinancialekg 6 ай бұрын

That is why we do so many examples on this channel. Thanks for commenting!

@Satjr35031 5 ай бұрын

Not if it’s a spouse

@davidcarbery2388 Жыл бұрын

At 9:25 you may have the classic mistake of calling the Provisional Income their Taxable Income.

@luisrodriguezjr.4012 11 ай бұрын

are qualified dividends in a investment acct we own taxes when we retire. Luis living in florida

@boydsummerhays322 Жыл бұрын

I got a question his benefit retirement benefits same thing social security do I have to file for social security retirement I’m 65

@yourfinancialekg Жыл бұрын

You can file for SS whenever you like between 62-70. I think that is what you are asking.

@Donkeyearsa Жыл бұрын

For a single male (which I am) the brake even point between 63 and 67 is around the age of 79 brake even between 67 and 70 is around the age of 82. The life expected age for a male to die in the US is 81. At the age of 99 there is not really that big of a gap between taking SS at 67 and 70 now there is a really huge difference between taking SS at 62 and 67 or 70 at the age of 99. So for the vast majority of single males it really does not really matter all that much of when they take SS "IF" they live to be 81. What matters is if they will die before 78 or live well into their late 80s Both of my parents died in their mid 60s from genetically passable diseases that is extremely common on both sides of the family. So my question for my self is not will I live an extended life but will I stop working and be retired at 62 or will I still be working until I am 67. Me living into my 80s is extremely unlikely. Now if they change the rules and there is no income penalty for collecting SS at 62 and continue working me taking SS at 62 would be a no brainier.

@yourfinancialekg Жыл бұрын

Great contribution!

@bigjohnson7415 Жыл бұрын

Indeed! Isn't the average life expectancy for an American male like 77? Take it ASAP!

@slimdude2011 10 ай бұрын

A person's life expectancy statistics means zilch because only God knows how long we're going to live. So therefore, we can't take life for granted because we don't when we're going to pass away.

@bigjohnson7415 10 ай бұрын

@@slimdude2011 You mean there's really this old man who lives in the clouds that knows everything? Sorry, my friend, not everyone shares your beliefs. But you do you, and everyone else will do themselves.

@slimdude2011 10 ай бұрын

FYI, He's not in the clouds He's in Heaven. A 5-year knows that! If you're going to be ignorant, educated yourself and learn something before you incorrectly challenge someone's else's comment again.

@remingtonsypro3160 Жыл бұрын

This is a great video I'm not sure if my first post went through so I'm putting it on there again. I did the math on for myself taking it at 62 versus 67 1:41 . If I take it at 62 I will have drawn out 130k The difference between starting at 62 and 67 130k It's roughly around a $900 difference between the two different age draw points. It will take me roughly 12 years before it starts making sense as far as amount of money you've drawn out. Then of course you will start gaining 900 per month beyond that point so after 67. My thinking is I'm going to draw as soon as possible because you never know when they're going to change the rules and raise the age of when you can start drawing a minimum amount. What are your thoughts on this scenario? I would be in a single situation living with my girlfriend. She would more than likely continue working. I know there's more factors that go into all this but what is a rough opinion? Thx T ✌️ I apologize for any misspelling or wording not making total sense I'm posting this on my phone. 😎

@yourfinancialekg Жыл бұрын

Great analysis! Thank you for contributing to the video.

@bobackerman54 10 ай бұрын

When you calculated the difference between 62 and 67 did you include the annual COLA of approximately 2.5% annually to come up with your number at 67 ... many don't ... also,of course we never know what our lawmakers might do, but i kind of doubt that they will develop a backbone and say we need to give less to seniors and risk upsetting them and thus endanger their own political fortunes ...

@remingtonsypro3160 10 ай бұрын

@@bobackerman54 No I didn't factor in cola. Does it get factored in on 62 and 67. Is it really going to make that big a difference though maybe a year at most? Still seems to me the younger you are the more things you're going to be able to do. What are your thoughts? Can you figure cola into those numbers? I'm set up to do an evaluation with you in October 10/2 hopefully we can go over some things. Thx ✌️

@denisereneec Жыл бұрын

I thought when figuring the provisional income the first $32k was taxed at $0. $32k-$44k is taxed at 50%. Anything above $44k is taxed at 85%. So wouldn't the example be $3800 (IRA Wd) plus $23,100 (half of SS) = $26900. Because $26900 is under $32k then $0 SS would get taxed. When figuring Federal taxes on 1040 - $3800 (IRA) plus $0 (SS) = $3800 minus $27700 (standard deduction) = $0 taxes would be due. Am I wrong on this?

@badabing308 Жыл бұрын

No, you are right. He didn't do the provisional income calculations correctly. In addition, there is some room for a tax free Roth conversion while staying under the standard deductions in the early years, which a glaring basic oversight. I don't believe his later calculations for running out of money by delaying SS are done correctly either, but I didn't deconstruct it. If you look at the initial scenario, the inflation proofed SS total at age 70 is $31K/yr surplus over projected $50K spending, so I suspect he didn't account for SS being inflation proofed. It would need a deconstruction to say if and where there are errors. You can't run out of money when your inflation proofed income stream is more than your spending, which is sort of the point for delaying SS. A rough rule of thumb is that the utility of SS/annuity income diminishes once you exceed the income need. In this scenario, I would probably delay SS to meet 100% of my projected budget and claim there. Then I would model Roth conversions to levelize tax percentage over the whole plan. One of the basic mathematical objectives of this type of analysis should be to levelize the effective tax percentage over the whole plan. Anytime you see 0% federal income tax for some years but not others, you haven't optimized the tax part of the question.

@bigjohnson7415 Жыл бұрын

Is that for married? I'm single and the brackets are 25, 34, and greater than 34.

@OhShunz Жыл бұрын

Where did those initial numbers come from? The $2100 and $1750 ? The video just kicked off with those numbers on the board.

@yourfinancialekg Жыл бұрын

Those are collecting SS at 62.

@johngill2853 Жыл бұрын

$50,000 for a couple is about is about $2200 tax not $5,000 or $7000 The standard deduction knocks down that $50,000 Time stamp 7:20

@josephjuno9555 Жыл бұрын

You never mentioned Roth or Roth Conversions? W their low brackets early cud they be doing Roth Conversions to lower their future RMD?

@yourfinancialekg Жыл бұрын

Yes they can! Just so much and not enough time in a video.

@lbpotter5804 Жыл бұрын

What about the widow's tax trap? Would it have been an option for the higher wage earner to delay until 70 while the other spouse took SS at age 62?

@yourfinancialekg Жыл бұрын

Of course! So many different options. That is why we need a flexible plan.

@brianbaker5140 10 ай бұрын

Jimmy Buffett died today at 77. A man dying at that age would not have broken even on social security. If you have assets in tax sheltered accounts that would benefit from a longer simmer, consider taking Social Security early.

@yourfinancialekg 10 ай бұрын

Come Monday....I'll be alright

@ac979 2 ай бұрын

I dont think the goal is to "get even" with Social Security. It's a safety net that protects the vulnerable, not something to "beat".

@user-yt3cv8ys7q 11 ай бұрын

Wouldn't the $5500 age 67 SS benefit also increase when the couple wait taking from age 60 to age 67? SS doesn't account for this increase on your current statement when they estimate future benefits. Also seems like your calculations of provisional income is off, it is not simply 50% of your SS amount.

@HateDietPepsi Ай бұрын

Would doing annual Roth conversions improve the situation?

@yourfinancialekg Ай бұрын

Certainly couldn't hurt

@alvinf7739 Жыл бұрын

Good video! do they get a tax refund from federal and state?

@missgui4400 Жыл бұрын

No unless they have earned income.

@markbajek2541 4 ай бұрын

So when one of the spouse passes, and you're left with one SS income does this blow the math up?

@yourfinancialekg 4 ай бұрын

It needs to be calculated in.

@firozjivanjee7765 Жыл бұрын

Thanks Drew fir your informative financial advice videos -- minus getting politically correct 😂

@yourfinancialekg Жыл бұрын

Thanks for watching!! 😃

@mattjohnson7835 6 ай бұрын

I highly doubt a couple that live the life style they are used to can live off even $55,000/year. The amount they are getting from SSI puts them in the top 5% of income in the USA. The other thing missing from your estimates is insurance. This couple is not 65, so they will have quite a bit of expense for insurance before Medicare kicks in.

@yourfinancialekg 6 ай бұрын

Thanks for the comment!

@ronbrendag7131 10 ай бұрын

What if one claims early and the other took spousal benefit early then at 70 took their own benefit.

@yourfinancialekg 10 ай бұрын

Here is the answer: faq.ssa.gov/en-us/Topic/article/KA-02011#:~:text=If%20you%20qualify%20for%20your,that%20equals%20the%20higher%20amount.

@josephjuno9555 8 ай бұрын

Cudnt I use those early low tax years for Roth Conversions ? I will be 62 in 2024 so low tax in Trump Cut and before the IRMA 2 yr Reach around?

@yourfinancialekg 8 ай бұрын

Sure can!

@ManNomad Ай бұрын

I do not understand where you get two SS amounts $2100 and $1750 = $3850??at 62. Explain where those amounts came from. There is only one ss payment??Right??

@mattc7425 Жыл бұрын

Although these videos are VERY informative, I have yet to see one where the retiring person, or couple, reduces their expenses by selling their million dollar NY or CA home, and move to the Smokey Mountains, pay cash for a down-sized home, and sock away an extra $500,000, all while living at a greatly reduced cost of living! Could someone with no mortgage, no debt, and $500,000 of retirement savings actually retire at age 55 if they lived frugally, in an area with a low cost of living?

@yourfinancialekg Жыл бұрын

What would be the monthly expenses?

@mattc7425 Жыл бұрын

@@yourfinancialekg I really don't have an educated answer, other than.. no mortgage, no car payments, just utilities, food, entertainment, and the big question... health care from age 55 to Medicare age... Take an area near Jamestown, TN... The cost of living is 25% below the US average, and considering there would be no housing expenses like mortgage or rent, and property taxes are literally only a few hundred dollars a year, I can't see monthly expenses being significant... What am I missing?

@reneesoli5345 Жыл бұрын

You can be retired and have a side hustle working when you want to work.

@robertmunoz4926 Жыл бұрын

I did at 55 with 311k 5 years later still doing great

@hillbillysportsman5818 Жыл бұрын

Didn’t see health insurance in the factors……

@yourfinancialekg Жыл бұрын

Health insurance is a huge factor correct!

@richiemochi Жыл бұрын

Currently, in U.S. with $500,000 plus social security would be No cause of inflation and other unexpected health issues. This will only be feasible if living abroad like in South America or Southeast Asia. Also what if social security drys up in the year 2034? How do we account for that? Informative information and assuming its a case by case depending on an individual.

@yourfinancialekg Жыл бұрын

Very true. Keep in mind, Social Security is not going bankrupt in 2034, it just can’t pay 100% of benefits at this point. It would be more like 75% of benefits.

@hillbillysportsman5818 Жыл бұрын

Wow! I guess everyone should just work till their Dead….

@bigjohnson7415 Жыл бұрын

And if anyone thinks SS is going away, imagine what politician even suggests it! They'd be gone! Wait, didn't Rubio and Jim Jordan mention that? Never mind!🤣🤣🤣

@viviendoalpresupuesto6926 11 ай бұрын

@@hillbillysportsman5818I'm already a dead zombie cause I work to much 😂

@f430ferrari5 Жыл бұрын

Isn’t there an issue that if one is only withdrawing 3,800 per year from a 500,000 IRA then in reality this never decreases. Even a 3% rate of return if $15,000. If one is only taking our 3,800 then the balance would be perhaps 550k at 75? What about RMD. At some point you have to withdraw nearly 20k a year. What about single tax torpedo. One spouse dies. It’s risky. Either way is a bit of a gamble. My strategy is to spend down the 401k/IRA to a lower level then take SS later. Will perform Roth conversions too.

@Wayneman50 Жыл бұрын

You sound so much like David Blackston, are you related??

@yourfinancialekg Жыл бұрын

😃

@Jane5720 Жыл бұрын

It would be more beneficial for you to say right away at the beginning that this is for a couple, it took me a second to figure out that it was for a couple, not for a single person I’m also not sure why you’re using the sum of 23,000 instead of 46,000 because this is for a full year?

@yourfinancialekg Жыл бұрын

Jane, first year they retired mid-year so retirement income is less. Thank you for watching!

@margaretking2969 Жыл бұрын

The couple thing confused me at first too. Partly because a lot of us are single, and partly because couples often are different ages or consider taking Social Security at different times.

@MrWaterbugdesign Жыл бұрын

Can, I retired 21 years ago at 45 with $400k in home equity and $100k in cash. That's it. However I doubt seriously most people could do the same. In fact if we jumped into a time machine and went back and asked 2002 me, he would have thought you were crazy I could have done this. Originally I was only taking a few months off to work on software I wanted to develop. I noticed I spent very little. So a few months turned into a year, then 3 years when I realized spending was the difference. In that first 3 years my spend was about $3k/mo ($2200/mo mortgage). I sold that San Jose CA house and bought in Phoenix with no mortgage. Slowly scaled back other spending that didn't add happiness. Past 10 years average spend has been $600/mo. $133/mo prop tax, self-insure house. I don't invest so income is basically $0 which qualified me for Medicaid (now Medicare) so $0 healthcare cost (greatest insurance I've ever had too), free smartphone (LifeLine) and recently free home internet (ACP). I haven't eaten out in 4 years. Eat low-carb, like cooking more. Doubt most Americans would consider that option. For fun I walk 2 hours a day...midday in Phoenix. No way people are going to consider that "fun". I do. I also garden and slow flip the house I live in for fun. Some people like gardening...but most of those spend a lot of $$$ in supplies. I gather almost all my plants and even fertilizer. Slow flipping has financed my retirement so far. The profit is excluded from income tax so I pay no income tax (don't even need to file). Getting house #4 ready now and planning a move to SE Asia. Sell or rent my house will generate about $2500/mo either via rent or interest on sales profit. Waiting to take SS until 70 which is $3600/mo in today's dollars. Just don't see most people would take a similar path.

@yourfinancialekg Жыл бұрын

Thank you for sharing!

@wdeemarwdeemar8739 Жыл бұрын

Hello from Fremont California still trying get out of this terrible State.

@dforrest4503 Жыл бұрын

So you’re living off the rest of us taxpayers? Thanks

@yourfinancialekg Жыл бұрын

@@wdeemarwdeemar8739 Come to Florida!

@elizabethashton9590 Жыл бұрын

These numbers don't work for me. Are you talking about a single individual because as stated they're impossible. If you're talking about a couple who typically don't take SS at the same time it still doesn't work.

@yourfinancialekg Жыл бұрын

For a couple? Thats two Social Securities.

@MrOsasco Жыл бұрын

What about health insurance?

@bigjohnson7415 Жыл бұрын

Indeed! Medicare isn't free.

@blakemoore666 Жыл бұрын

My God, how much income did this person make to be eligible to collect that much from SSI ??

@OhShunz Жыл бұрын

This question is what confused me. I thought you had to have a lifetime income amount to start the equation to get an estimated SS monthly amount. I was like how did we just start with those numbers on the board???

@yellowbloodsilverfox 10 ай бұрын

Could they not take the $500K (retire at 62) and get 4.5 - 5.0 % interest and not not touch the principal 😊?

@yourfinancialekg 10 ай бұрын

Maybe right now, but not forever and not adjusted for inflation. Good question though!

@joethecomputerguy1 Жыл бұрын

Did you miss something? If the Trump tax cuts do not get extended and the standard deduction reverts to obamanation rules you should also add in the personal exemption amounts of 4150 each, no?

@yourfinancialekg Жыл бұрын

True! The software and myself only have so many variables that can be applied. But yes you are right!

@morganjen1962 10 ай бұрын

Good for you for homeschooling your kids.

@yourfinancialekg 10 ай бұрын

My wife is the hero...I just support her!

@brendangair2023 23 күн бұрын

Is there an impact with RMD bumping income and increasing taxes?

@yourfinancialekg 23 күн бұрын

Could be for sure

@Cenlalowell Күн бұрын

@@yourfinancialekg yeah your Medicare is income based.

@Sky1 11 ай бұрын

I calculate an absolute minimum of 1.7 Million to retire bare bones

@yourfinancialekg 11 ай бұрын

It’s awesome you’ve got that calculation already done

@Sky1 10 ай бұрын

@@yourfinancialekg yup, I am adding in the cost of healthcare before 65 as well as long term care and using real inflation number and high probability of a huge pullback in January 2024

@Sky1 10 ай бұрын

are you calculating in taxes?

@yourfinancialekg 10 ай бұрын

Yes!

@skoolie_life3261 Жыл бұрын

Is this taking into consideration the depletion of the social security trust fund by 2034, or is this only for those who are retiring before that year? Can you do a video on how that will affect those of us who will retire after the depletion and resulting reduced benefit?

@keithwiebe1787 Жыл бұрын

Don't vote Republican if you don't want SS touched for the worse.

@yourfinancialekg Жыл бұрын

Yes, I can certainly make a video

@JamesBrown-eg1wu Жыл бұрын

Most people tend to die between the ages of 60 to 80.

@yourfinancialekg Жыл бұрын

True

@bigjohnson7415 Жыл бұрын

Indeed!

@davidparker7156 6 ай бұрын

What about their medical cost?

@yourfinancialekg 6 ай бұрын

Great question!

@davidparker7156 6 ай бұрын

@@yourfinancialekg you didn't answer that one for them?

@billclinton7003 Жыл бұрын

You can. Move to the Philippines 🇵🇭.

@yourfinancialekg Жыл бұрын

💥

@daniellem5175 Жыл бұрын

?? If 2100 is from the SS benefit, where is the 1750 coming from? I'm sure I'm missing something.

@shawnlittle9234 11 ай бұрын

The husband and wife’s social security makes up the 2 amounts

@daniellem5175 11 ай бұрын

@@shawnlittle9234 Thank you!

@shiningstar328 Жыл бұрын

I thought you had to be at least 62 before you can collect Social Security.

@yourfinancialekg Жыл бұрын

That is true. They are retiring at 60 and claiming at 62. Hope that helps!

@tracymaxie3641 11 ай бұрын

@@yourfinancialekgsometimes a husband or wife can claim at age 60, if one of them passes away, if they had already reached the minimum SSN age to draw benefits

@joninichols7950 Жыл бұрын

Don’t Obama era taxes have personal exemptions?

@yourfinancialekg Жыл бұрын

Yes. Obama era taxes are about 25% higher but it's not a bad tax code, just something we have to navigate.

@Sword_of_justice103 Жыл бұрын

@@yourfinancialekg lol

@scotteshanks Жыл бұрын

I have never seen a Biden tax plan that proposes reducing the standard deduction. Where did you get that?

@yourfinancialekg Жыл бұрын

That would be a reversion back to the Obama era taxes of 2012. Sorry for the confusion.

@scotteshanks Жыл бұрын

@@yourfinancialekg But why even mention that as a possibility for someone to consider?

@DianaCampbell-fu5dp Жыл бұрын

Ask again

@kevinw543 Жыл бұрын

Our plan is to retire at 55 and start withdrawing 401k to cover expense and get ss at 62. We should get the max amount and hopefully that would keep the 401k afloat. And at 65 get medicare would help cut insurance expense.

@yourfinancialekg Жыл бұрын

Great plan!

@INTERNETVID Жыл бұрын

Can you explain what you mean by 'max amount'? Conventionally speaking, max SS amount occurs at age 70.

@kevinw543 Жыл бұрын

@INTERNETVID i meant for ss @ 62. max amount for early retirement on ss should be $2572 at age 62, this should lessen our withdraw on 401k

@joeysocks5718 3 ай бұрын

I’m going for 65. Many friends I have didn’t even make that. Especially in the past 3 years with the 💉💉💉💉

@yourfinancialekg 3 ай бұрын

Thanks for watching!

@Pops2 Жыл бұрын

Avenge yourselves, live long enough to be a problem to your children.😅

@yourfinancialekg Жыл бұрын

😂

@NipItInTheBud100 Жыл бұрын

you delayed social security 5 yrs not 7. Great video otherwise! Thanks again!!

@yourfinancialekg Жыл бұрын

Thanks for watching!

@theacase8738 Жыл бұрын

“I” implies a single person, with one social security check. Please, consider either changing the title of your video, or the content.

@Ann-gr3nq 11 ай бұрын

Not having debt in retirement is an absolute must. I am also trying to build wealth and consider all my options so I can go into retirement with confidence. Another great source for retirement planning is @PlanningBeforeInvesting he explains things very well.