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*ABOUT ME*
I’ve always been passionate about personal finance, investing, real estate, and helping people find the freedom to live their life with purpose. But when my dad died in 2015, I tried to help my Mom find an advisor to sort out her finances. Instead of a helping hand, I found an industry of financial advisors dominated by glorified salespeople working on commission — pushing products that were not in my mother’s best interest. Or advisors with minimums that shut-out all but the ultra wealthy. Disappointed with the options, I took matters into my own hands and launched Foundry Financial, a wealth management firm with transparent pricing that specializes in helping provide clarity around money — so you have the confidence to make smart decisions.My goal is to help a million people retire without worry!
📅 *THE BASICS OF RETIREMENT PLANNING*
Retirement planning has several steps, with the end goal of having enough money to quit working and do whatever you want. Our goal is to help people master retirement and retire without worry.
Step 1: Know when to start retirement planning. When should you start retirement planning? The earlier you start planning, the more time your money has to grow. That said, it’s never too late to start retirement planning. Even if you haven’t so much as considered retirement, don’t feel like your ship has sailed. Every dollar you can save now will be much appreciated later. Strategically investing could mean you won’t be playing catch-up for long.
Step 2: Figure out how much money you need to retire, The amount of money you need to retire is a function of your current income and expenses, and how you think those expenses will change in retirement.
Step 3: Prioritize your financial goals. Retirement is probably not your only savings goal. Lots of people have financial goals they feel are more pressing, such as paying down credit card or student loan debt or building up an emergency fund.Generally, you should aim to save for retirement at the same time you’re building your emergency fund — especially if you have an employer retirement plan that matches any portion of your contributions.
Step 4: Choose the best retirement plan for youA cornerstone of retirement planning is determining not only how much to save, but also asset allocation. It can make a massive difference in your retirement plan.
Step 5: Select your retirement investments. Retirement accounts provide access to a range of investments, including stocks, bonds and mutual funds. Determining the right mix of investments depends on how long you have until you need the money and how comfortable you are with risk. It’s often helpful to talk with an adviser to discover the right mix of stocks and bonds.
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⚠️ “DISCLAIMER:⚠️This is not financial or investment advice. This Channel is meant for EDUCATIONAL AND ENTERTAINMENT PURPOSE only. None of this is meant to be construed as investment advice, it’s for entertainment purposes only. #retirementplanning #retirement #passiveincome…(read more)
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As individual age, retirement savings become more and more important. By the age of 60, many people are hoping to retire or at least start preparing for retirement. However, not everyone has the same level of savings when they reach this milestone. It is important to know where you stand in terms of retirement savings at this point in your life to make sure you are ready for retirement.
According to a recent report by the Transamerica Center for Retirement Studies, the average retirement savings for Americans aged 60 and above is $172,000. While this may seem like a substantial amount, it is important to note that this number can vary greatly depending on individual circumstances, such as income level, debt, and other financial obligations.
For many individuals, the $172,000 average may not be enough to sustain them through their retirement years. Financial experts generally recommend having enough retirement savings to cover at least 70-80% of your pre-retirement income. This means that if you were making $60,000 a year before retirement, you should aim to have about $42,000 to $48,000 annually in retirement income.
So, how does the average retirement savings of $172,000 stack up against this recommendation? Many financial advisors believe that this amount is not enough to sustain most people through their retirement years. In fact, the average retirement savings by age 60 falls far short of what is needed to maintain a comfortable standard of living in retirement.
To ensure that you are on track for a comfortable retirement, it is important to start saving as early as possible. Financial experts recommend starting to save for retirement in your 20s or 30s to take advantage of compound interest and maximize your savings over time. However, it is never too late to start saving, and it is important to contribute to retirement accounts consistently and as much as you can afford.
If you are nearing the age of 60 and find that your retirement savings are not where you would like them to be, there are steps you can take to improve your situation. You can increase your retirement contributions, delay retirement to allow for more time to save, or consider working part-time during retirement to supplement your income.
It is important to assess your individual situation and take steps to ensure that you are financially secure in retirement. If you are concerned about your retirement savings, consider speaking with a financial advisor who can help you create a plan to maximize your savings and achieve your retirement goals.
In conclusion, the average retirement savings by age 60 may not be enough for many individuals to maintain a comfortable standard of living in retirement. It is important to assess your own savings and take steps to ensure that you are financially secure as you approach retirement. By starting to save early and consistently contributing to retirement accounts, you can improve your chances of a comfortable retirement. If you are concerned about your retirement savings, consider speaking with a financial advisor to create a plan to achieve your retirement goals.
Did any of the numbers surprise you?
You dont need a lot of money to retire and live comfortably , depending on where you go
We purchased a two bedroom condo with a view of the Black Sea for $20k
Live in a very low crime area, near medical services, travel throughout Europe all for less than $1200 a month
My social security is $2451, my wife wont receive hers (half) for a couple more years
We are adding to our savings monthly while enjoying ourselves
Most people my age have no nest egg in 50's, still living paycheck to paycheck and Biden's inflation is making it worse, not the case for me.
I’d be retiring/working much less in 5 years and curious to know best how people split their pay, how much of it goes into savings, spendings or investments? I earn around $150k per year, but nothing significant to show for it yet.
Probably a pretty safe bet if you needed an explanation of median vs average, your savings is on the lower side. Video was clear, simple, and to the point. Keep saving folks. Doubt anyone ever says they wished they would have saved less.
Glad to have stumble on this. I’m 60 and want to retire in 6 months. I have a $170K savings plus a 401k depleted to $200K of money. Do you think it is better to buy a house or just rent. My retirement plans seem to be out the window. I'm thinking of getting professional help.
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
A recent study from the career experts Zety says that 40% of respondents fear retirement more than death. And almost nine in 10 responded that their biggest retirement fear is not having enough income. I want to spread across $401k of saved up income into profit yielding dividend equities but unsure of which to get into.
I am retiring at 45 years old (God willing) after I retire from military. I was able to save $2.2 million (military officer) over course of my military career. This was accomplished purely though hardcore saving and conservative investing and many CDs but mainly and simply from living way below my means. Don’t make it complicated
I always hear my cohorts in their late 50s say things like "We finally paid off (insert "BMW", "MERCEDES", Junior's student loans from XYZ private college"), so now we are going to start saving for retirement." These are the same people who laughed at my old Landcruiser that was paid off and outlasted their series of five MB's that took a dump at 80,000 miles!
So much of success is determined by actual retirement age and the ability to be flexible in your spending each year. Spend less in bad years and bolster savings in really good years.
These numbers are terrifying! Clearly there is an enormous population that has virtually no chance of a successful retirement. Obviously there’s SSI, but still very low numbers.
You made a good point finally. The increase in spending once retired probably goes up initially… But that decreases as you slow up or finish things you really wanted to do… Then goes back up with health/medical issues probably… Living situation,/house maintenance, etc.
Great video! The one thing in most retirement discussions is around 491K and IRA's, and the values at a given age. Many people are real estate investors and have a portfolio that provide numerous tax advantages, cash flow, appreciation, amortization, plus a total equity position. It would be great to see a video on this type of investment approach as we have done. Thanks again! Mark
should have just used a bell curve
This type of information is useless. Some people have multiple 401k accounts with previous employers. Some have 403 or 457 accounts. Does the research count these accounts? I know some don’t put much of their money in retirement accounts. Instead they put money in their brokerage accounts or real estate market. Americans are richer than these studies said.
I’m 43 and have been following the FIRE movement for the past three years. I invest in real estate and stocks, and trust me I’m more than set for retirement….
By the way great video!!
Did you say your name is Kevin LUM?
This assumes social security does not disappear in 10 20 30 years. Assumptions are the mother of all…
I had $0 savings when I retired. Thank goodness my wife had a job.
51 years old. I have $295,588.25 in my Fidelity retirement account. I cranked my contributions up to 35% and I do all the investing on my own. Fidelity just holds my ETFs/stocks. I made that change earlier this year. I'm hoping to end the rat race by 60 but it's looking more like 63-ish. I want to have $1.5M and bring in about $60k in dividends each year. Pedal to the floor! Thanks for the video. Great content.
Great thoughts! The year I almost over and very glad about the decisions I have made so far. Investing in the market earlier this year regardless of the market condition has saved my life. I made over 70k USD with a start of 25k in the last 7 months. I know it’s nothing compared to what others make but I’m glad I’m changing my finances. If things keep going well I might retire soon>.
You said per person. So for a married couple should we double these numbers or did you mean average and mean household savings when you quoted those numbers. Big difference.
How does anyone retire? People don’t have any money!
ALERT! BEWARE! Here’s the problem that this gentleman did not address. The 3 zombies of the retirement apocalypse. Taxes. Inflation. Health care costs. These 3 things will eat your retirement alive. You think your traditional IRA is nice and big? Think again. Unless you have a Roth, that IRA statement is false. You don’t really have that much. You will lose a massive amount of it to taxes when you withdraw it. Same with stocks and capital gains. Even if you inherit… there are inheritance taxes. At least here there is. Second, even if you have a million dollars saved, a millions dollars is not what it used to be… and not what it WILL be in 10 or 20 years. Inflation will dramatically cut into your spending power. Your little nest egg won’t buy much in retirement due to rampant inflation. Life will only get more expensive, offsetting the other things you no longer have to spend for. You’d better be extremely conservative. Finally, health care. Costs for prescriptions, doctor visits, home care, surgery and retirement homes are exploding annually. It can cost as much as $100,000 a year to be in a decent assisted living home. That’s just for ONE person. And don’t think your Social Security, Medicare or Medicaid will bail you out. There are aggressive plans being laid right now to drastically reduce or eliminate these benefits by Republicans. If you are in poor health, you had better change your lifestyle. Stop smoking and drinking and eating crap. Go to a gym and get yourself healthy. These social safety nets are fraying. They will likely not be sufficient to catch you if you fall… if they exist at all. Premiums for healthcare will only rise year by year. This zombie and getting sick could cause you to lose everything, as it has for too many Americans. So heed my warning. If you don’t have at least 3 to 5 million in savings or a diversified portfolio, you are in for a miserable retirement. My parents thought they were on easy street with 2 million in retirement funds. Wrong. The zombies have decimated their funds. They had to move in with us because taxes and capital gains took half. And they had a financial advisor! Inflation has made their expenses untenable and their health is poor. Their medical bills have surpassed their deductibles. They had to liquidate assets to pay them. They couldn’t afford life anymore. And that’s with 2 million in savings. I am in the clergy and have MANY parishioners in
my upscale community in this same predicament. They thought a million plus was adequate. They see now that it is a drop in the bucket. I worry about them all. So please be conservative. Do all you can to save all you can. No lavish trips, no new cars or giving money away to the grandkids, expensive homes etc… Stay healthy, get good financial advice. It’s scary out there. This video was fine but it didn’t tell you want you needed to know. God bless.
How much? It all depends on where you live, life style and debt. We live in the Mid West and have a very basic budget which does not exceed our SS. We have a median savings which we have never used the past 10 years in retirement. If we were on the East or West Coast. We would probably be broke by now.
The Federal Reserve is a private bank.
Loan(5 Year)=3000K USD
Payout(5 Year)=3000K USD
Insurans
Premium=? Yield=21% Year=5
Premium=3000K/1.21^5
Premium=1157K
{
Loan(5 Year)=A(Premium)=1157K
Payout(5 Year)=B(Premium)=1157K
Total Premium
=A+B
=1157K+1157K
=2314K
}
MaxLoan=? Yield=5% Year=5
MaxLoan=3000K/1.05^5
MaxLoan=2350K
Balance=MaxLoan-Total Premium
Balance=2350K-2314K
Balance=36K(Debt=0)
Thank you.
ReTyre yes,retired well u know.
Does your home count towards the saving ?
Before I watch this I will state, comparison is the thief of joy. Figure out what your expenses might be in retirement, then solve the problem of funding that amount.
This video was great. I've been scrimping and saving for 30 years, and every time I see an article stating "you must have 2 million, or else you'll live in a cardboard box," it seems hopeless. It seems that it's not so hopeless
Thanks for covering the AVG vs Median – it's important to understand what you're really looking at.
I would think that many retirees would prefer that their income was not 50-75% off their working income. I would imagine that drop is more attributed to a lack of means. You have so much more time to spend money in retirement.
Really? Google passive income, prepare to be scammed
One of the things that is almost never discussed in videos like this is the "B" word – BUDGET. One of the reasons so few Americans have enough saved for retirement, at any age, is because they have never followed a budget, and won't in retirement. It's the main thing missing from the financial picture, and the single biggest thing anyone could do to secure their future. It doesn't matter how much you make, and it never has…it matters how much you spend, and what you spend it on! I am personally very well-acquainted with a couple who makes over $200K/yr, but is debt-free and lives on less than $50K/yr. Do they need to have 8X their income in retirement, or do they need to have $50K/yr in income, since that's that they live on? This isn't what a "financial advisor" wants you to think about. They want you to save more money, because their earnings are based on "assets under management"…so they're ALWAYS going to tell you to save more! They don't really care what you live on, they basically just want you saving more and more, so they make more off your money.
Very hard to make a generic video about retirement, some people need to retire asap due to health or mental issues and need to know now. Unfortunately some people have to come to terms with becoming homeless, I'm not sure what the support network in the US is for that.
Though Americans are only required to take a certain portion of their retirement savings out as distributions each year, a study from JPMorgan Chase shows that there is likely good reason to take out more. I want to know: How can one take advantage of compound interest and potentially grow your retirement savings/net-worth to about $3M over time?
Guys, these #s are complete nonsense. What he is not mentioning is that 50% of the people in the US have less than $10,000 saved for retirement at age 60. Yep, if you have more than $15k saved for retirement at age 60 you are doing better than half the population. Scary isn't it.
If you can work part time and wait until 70 to take SS you'll get a lot more plus not have to draw so much out of savings. It's what I did, and fortunately my part time income was more than enough to pay the bills. But also, do what you can to get your health sorted out so you can live well past 70 without a basket of health issues.
I personally don’t care about what others have to be honest…..just what I have and especially what I need. Though I guess I help screw the average data since we have 50X our expenses at age 46. We live such a basic simple minimalistic life we look the poorest on the block….so nice to be stress free about money!
This is scary! It looks like many people are only going to be able to afford to live a year into retirement.
Excellent idea to provide the more accurate median numbers. Thank you!
It's mind blowing how few people have saved for retirement. I assume that there will be no social security and assume a 4% rate of return. I have a pension that allows me to retire at 81% of my income at age 47 or 100% at 53 with 3% annual COLA increases. In addition to cash savings being deployed into higher yielding CD rates now. Low amount of debt and a home that will be paid off by then and a second apartment paid off in a country that has a much lower cost of living if we have to leave the US. I've put about 12% of my income into retirement each year and time and effort into education and money management. Even with all of this I still have my worries. Best to overshoot retirement numbers to enjoy your retirement. I enjoy what I do for a living and I wouldn't want to leave it to be bored sitting at home because I don't have enough income to go out and enjoy myself.
curious what the 75th percentile value is
I made my life plan 4 days before I graduated from HS. One is never going to retired. But I made plans for semi-retirement. I'll be 60 this week and things are working as planned. No worries and living it up. My life is stress free, drama free and zero pressure. semi-retirement is between jobs. I take a break between jobs. It can be 3, 6, 9 months or 1-3 years. My longest breaks has been 2 years and 9 months. So haven't reach that 3 years yet. Right now I'm on break since March 31, 2023. Looking for work right now. I do side hustles everyday. So there is always income coming in from different sources. I been debt free since I was 36. Bought my first house at the age of 56. Don't worry I paid cash for that house. So living it up and no worries about money.
I get the idea that the average is going to skew the numbers upward, but considering that so many 60 year olds (probably millions) have little or no retirement savings, wouldn't the median skew the numbers downward? I'd be interested in knowing the average and median if the extremes on both ends are eliminated.
This video is so spot on. For years I scrimped and saved, thought I needed 25 times my yearly spending in stocks before I could retire. But my job was killing me, so I retired at age 55 with 20 times my yearly spending. That was 7 years ago, now 62 and my 3 portfolios have grown so well, even with the market drop in Jan 2020 I have more than I'll ever need. 7 years ago I was planning on taking social security at 62. Now I guess I'll wait until I'm 67.