Troy Sharpe, CFP®, recently read an article online where a 58-year-old man with $1.4 million saved up asked if he had enough to retire. He had $700,000 in a 401(k) account and $700,000 in a non-qualified account. In this episode, Troy looks at 1,000 different scenarios looking at the probability of successfully retiring without running out of money, given the current economic situation.
#dontrunoutofmoney #successfulretirement #enoughtoretire
The analysis is part of what we at Oak Harvest call a Oak Harvest Retirement plan, a customized solution aimed squarely at your retirement needs. Oak Harvest Retirement Plan Instead of trying to fit you into a box, Oak Harvest builds the box around you. So, no two plans are exactly alike.
We tailor investments, income, tax-reduction, safety, long-term care and legacy solutions around your retirement vision and goals. It starts with a discussion about your retirement vision. A retirement vision is the most critical element of a Oak Harvest Retirement plan because it allows us to clearly identify specific goals, allowing our team to get to the root of what is important to you.
Once those goals are identified, we explore and educate you on the strategies that can make your vision your reality. When the appropriate strategies are agreed upon, it’s time to discuss which tools are appropriate to complete the plan.
Stocks, bonds, CDs, annuities and mutual funds are nothing more than financial tools that can be used inside your Oak Harvest Retirement Plan to accomplish your vision and goals. As independent fiduciaries, we don’t care which tools are used. We care only that the best tools to accomplish the job are implemented.
When your Oak Harvest Retirement Plan is complete, you have a clear financial path that can help provide peace of mind. We will build each component that you may need for your specific circumstance:
– You will have in front of you a simple, easy-to-understand retirement income plan.
– You will have an investment strategy appropriately fitting your investment objectives and risk profile.
– You will have a Social Security strategy that’s designed to maximize your life savings — not just your Social Security benefits.
– You will have a long-term care strategy that’s designed to maximize and protect your retirement against future medical costs.
– Your legacy desires will be addressed by a CERTIFIED FINANCIAL PLANNER™ professional who coordinates and works with attorneys who draft the appropriate legal tools, if needed.
Once complete, your Oak Harvest Retirement Plan flows into a monitoring process where adjustments can be made when the investment, tax or legal landscape change. It’s reviewed frequently with you by your dedicated team, which includes your advisor, the investment team, and our services team.
Are you worried about your investments and what you need to do so you can retire with an income? If you have $500K or more and would like a partnership with a firm to help you manage your investments and financial plan as in these videos, click on this link to connect with our advisors: Click on this link:
Should you consider building a customized Oak Harvest Retirement Plan that goes beyond allocating funds to truly fit your needs and your retirement vision? Call us at (877) 404-0177 and schedule a free consultation about you and your financial situation….(read more)
LEARN MORE ABOUT: Qualified Retirement Plans
REVEALED: How To Invest During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
What financial planning software do you use? Looks very user friendly.
Because only the RMD is taxed at normal tax rates (tax bracket!) in the year it was withdrawn the remaining capital assets can grow tax deferred in the future.
Remember the humour: " There is a penalty for early withdrawl ! "
This factor has to be taken into account !
1.4 Mil in Qualified Dividends in Dividend Kings and Aristocrats at 5% yields 70K and the Tax for a Married couple on Qualified Capital Gains is 0% under 83.3K so even with the Dividend Hikes you wont pay ANY Fed Tax for 4-6 years and the 83.3K will go UP over time also.
The fact that he has to withdrawal $186k a year to just be equivalent to today's $60k is pretty alarming.
Of course he can retire!! What a dumb question.
So, you can have them making a 100k lifetime income, and they don't make 100k now? They'll need 186k per year because of inflation? I'd like to live on your planet.
i find these intresting but in never see stuff for the fire moment, like say it was the same 1.4 million, a single guy but he 30, and is willing to live on 35k a year.
I was 42 when I retired. I worked overseas for 20 years, straight out of university, for a multi national oil and gas company.
My net worth was usd3.9 million at that point I was making good money with a slew of rental properties which I owned outright.
I am now 49 and still retired. Now my net worth has even grown plus I have not had to work.
I domt rely on anyone else and am able to live in a lovely house and folllow some of my other interests.
My suggestions are, work as much as you can when you are young, don’t get married, don’t have children and get yourself educated in a STEM subject. Work in an industry like oil where the margins are massive. Sometimes I was gettting bonuses bigger than my salary. I flew business class everywhere and stayed in a beautful 3600ft2 condominiums. It was astonishing.
Hell yeah you can with ease and comfort and relaxation
Good information something similar that my advisor suggested.
2% inflation!! How about now!! Please address that!!
Hold off for a few more months, 7% CDs and 14% mortgages are coming soon. I Bonds now at 9.5%?
seeing the medical costs makes me thankful that i live in a country that has free at the point of use health care. its fascinating watching retirement planning for other countries.great video by the way
Nostradamus @ 8:36
I never get these broad big bucks numbers and everyone live to 93. I doubt I will be jumping on a plane at 88 heading to Aruba. My pre retirement income at 63 was 240_260k a year. I by no means lived at that number . I had a blast , boats, travel, limos etc when I was younger and wouldn't
Change a thing . I bought a modest 1700 sq foot ranch ,not 3000 sq feet didn't need. Owned home at 60. No debt. Saved 900kcash and we have another 300 k 401k . My ssi , pension and her projected ssi covers monthly expenses now including going. Out to eat etc. Even if I drew 1k a month due to inflation that leaves me money for couple cars , travel etc. Dont live beyond your means in first place and maybe below and 10x is more than neex
If you have high debt and bad spending habits ,,your in trouble at 58..If your debt or close too low debt then it's a doable age if you have a decent nest egg.
1.4 million at 62 you will be just fine. the same habits that got the 1.4 is not gonna change in retirement. you're paying for this guys fancy app to analysis in paralysis.
What is that software?
I am 62. I currently live on 37.5% of my income. In retirement I plan on reducing that amount a bit. I hope to have ~ 7X my annual income accumulated and retiring at 65. I plan on longevity of ~ 85 years (based on family stats). I also have some real estate, but I don't count that as it may crater anytime.
Yet another retirement plan with a fancy name – 360 plan, really? Your typical Financial planner like this one here is blind sided about real estate, specifically rental real estate that come in with built in tax benefits. Rentals already have that fancy tax 'diversification' that is talked about in the video. It is not even listed in the components of your 360 plan. Right there is a problem. The plan is missing a big piece of the pie , so it is more likely a 270 plan not a 360.
Oh ffs you’ve got over 1 mil ,like come on really ,just fxxx off
$60,000 is a frugal living example? I live on less than $40,000 and want for nothing!
So you are 58 and were smart enough to save 1.4 million dollars, but you need these morons to tell you how to spend it??? Riiight.
An 8% estimated return is way too low.
If you have to ask someone else if you can retire, then the answer is "no". Only you can answer that question. There are professionals and resources that can give you the tools to help you answer that question, but the cannot answer the question for you…
why not,I retired with most nothing
I was told that my wife should take Social Security at 62, and I should wait until 67. Why you might say……well when I take my SS at 67, my wife’s SS then increases to 50% of mine. Is this correct ? How do I have a consultation ?
You can retire in 12 years. At 70 your federal welfare check, SS, will be much larger.
Even 100k is enough if you have prnsions!
which software is this simulation run on?
THis is a silly question, of course he can retire. If his house is paid off, he has far more money than he will ever require, unless he plans to live lavishly, or ends up with expensive health care problems without insurance, which in America is entirely possible.
The most important thing in life is to spend your time doing a job that interests and fulfills you. If you have that, then why would you want to retire? I plan on having my cake and eating it too of my health allows it. Enjoyable work and plenty of money is far more desirable than a boring retirement with little to spend.
Can you retire? Yes. Will it be luxurious? No.
Wow, what a difference a few months make! 2% inflation?
Assuming no debt, conservatively. 4% dividend return on $1.4 million is $56K per annum. Keep saving.
Move to Florida, buy three duplex housing units (6) rentals, and you are set for life! I am retired and half my income comes from paid-for rentals and I live like a king on $60,000 net a year. Half my income is disposable or fun money (travel and entertainment) and my investment and rental income generally tracks with inflation. (I "banked" well over $100k last year – appreciation/inflation). This game is NOT calculus, it is 4th. grade math. Know your market and understand the FED is in the dollar devaluation business. Cheers! Note: I'm 70, market up I don't care, market down I still don't care. People always need a place to live and most live hand to mouth and will never save enough for a down-payment.
no keep working
What I'm looking for is an annuity that is deferred far into my retirement age (80..90) and that only pays out to the participants still alive. In this way, I can plan on running out of the rest of my savings and still have some income if I live that long. Since no insurance company wants to take on this much risk unless there's a huge premium, I think it would make sense if it's designed like a mutual fund where the payouts are determined by some upfront algorithm and proportional to the value of the mutual fund. In this way there's little risk to the insurance company (thus enabling low fees). Obviously there's a risk to the participants if the investments in the mutual fund don't work so well. Starting to withdraw from SS as late as possible is also inline with this approach.
So buy and hold AMC, got it.
I retired at 44, life is too short..I have enough money to last me to 75. Good enough life for me.
20 more years you can retire at age 78. Back to work dude.
I'm 49 and will retire next year. Expect to have 1.9MM. 800K in stocks.
I'm 68 years old with $27.8 million, can I retire?