The Hidden Math: How Retirees With $1M End Up With $5M

Comments · 2.1K

• YO

  @yooper5638 · 10 months ago

  My number one rule for retirement was zero debt. &nbsp;We get by fine on SS and a small pension, with no mortgage, car, or credit card debt. &nbsp;Our IRAs have been sitting untouched for four or five years now, and should exceed that million dollar mark by the time we have to take RMDs.<br><br>We both grew up lower middle class and saw our parents struggle to get by. &nbsp;Even with healthy IRA balances, we can&apos;t shake off that upbringing where a single missed paycheck meant serious hardship. &nbsp;Intellectually, I know we could go out and buy a new luxury car, but my gut says that&apos;s foolish; we already have a car that works perfectly fine.

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• DU

  @dukewanders · 1 year ago

  The truth is, most people retire too late. <br> I retired early (at 53) 5+ years ago, right before Covid started. Markets crashed, along with my portfolio. Sequence of Return Risk is very real. Having said that. My portfolio recovered and my net worth is greater today than when I retired. I ran a million simulations using historical data before I retired and the numbers indicated I would survive. I, loosely, follow a 5% withdraw strategy for my max budget, which I always fall short of, in reality. I have yet to exceed my annual spend budget, I travel the world often, don&apos;t limit my activities and do pretty much whatever I want. &nbsp;<br>Time is our most precious asset, don&apos;t squander it due to fear. Retirement is awesome and the younger you can retire, the better it is! IMO. It did take me a solid year to transition to retirement. Retiring &apos;TO&apos; something instead of &apos;From&apos; something is an important mindset to have. Good luck to all.

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• VE

  @Vegaswill714 · 1 year ago

  As someone who retired five years ago, I will say this is the most important video for someone who is approaching retirement. &nbsp;I find that in retirement I actually spend far less than I thought I would. &nbsp;No more lunches out at work, far lower budget for clothes, gas and other expenses that you incur working that you don&apos;t ever think about. &nbsp;We go out to dinner less often than before. I&apos;d rather have a relaxing evening at home than go to a restaurant. We do travel more, but now we can take advantage of specials and deals, travel during the less expensive season and we are spending less on travel than we anticipated. Yes, Erin is completely correct.

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• MT

  @Mtsung3 · 1 year ago

  The upbeat optimism of this channel is a breath of fresh air. &nbsp;Most other financial youtubers are downright depressing at the moment

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• SA

  @Sandra-cm5ez · 1 year ago

  I retired 3 years ago, took a pt job for 2.5 years. Since I have greedy relatives except for 2, the majority of my money is being left to my favorite charities. This is great information, I am now more comfortable traveling as I always wanted to. Knowing I worked my butt off to get to that $1M mark makes me want to start working on my bucket list now…

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• KA

  @kaizenretirement · 1 year ago (edited)

  Those who have amassed $1,000,000? A remarkable achievement. Problem is, many retirees think their 401k/IRA accounts are a &quot;savings&quot; account, and are afraid to spend in order to maintain their &quot;millionaire&quot; status. What are you saving for in your 60&apos;s? Erin laid it all out very clearly. Not saying to go out and start buying beachfront property in Maui or a new Mercedes every two years, but: if you want those premium seats at the next concert? Go for it! vWant to upgrade your seat on your next flight for more legroom? Do it! Spend your money to increase your joy. Life is short, and a lot shorter in your 60&apos;s.

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• DD

  @ddc2343d · 1 year ago (edited)

  My parents retired in their early 60s. My dad had a small pension, and with Social Security, they brought in about $2,800 per month. They had very little in savings when they retired but my dad turned his hobbies into extra income each year. &nbsp;He had a small pumpkin patch that generated cash in the fall, and he created artwork and carvings that he sold at art shows during the summer. When my dad passed away at the age of 90, they had amassed about $300,000 in savings, in addition to their house and property, which were worth nearly a million dollars. &nbsp; My parents were living comfotably on about $35k a year in retirment (they live rural). &nbsp; We recently moved my mom into assisted living, which costs about $60,000 a year. Fortunately, their good saving habits should cover her care for the rest of her life.

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• SE

  @seroki86 · 2 months ago

  This really comes down to the classic adage of when i was young i had time and energy but no money, when i was mid life i had money and energy but no time, but when i was retired i had time and money but no energy. It really hits home that we think we need so much for retirement but in reality we should learn to live life while we have the energy and time to appreciate it. Now i&apos;m not saying that we should neglect retirement entirely, but it means that the vast majority of us &nbsp;watching these types of videos will inevitably save way more money than we will ever spend. So we should spend little bit more earlier to enjoy our lives and make time as younger people while we have the energy and the money.

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• LI

  @LittleKidscontent-o2z · 1 year ago

  This is why we NEED to make sure these cronies in DC don’t touch or mess with Social Security. It is CRITICAL to our retirement system.

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• CA

  @Carvin0 · 1 year ago

  Assisted living or memory care is expensive. &nbsp;If those are needed, expenses will increase by $100k to $150k per annum. I retired 18 years ago. Living expenses were modest. But now, once memory care started for my wife, I&apos;m glad I retired with considerably more than $1M. Modest lifestyle meant that it compounded nicely, of course, but I now I really need it.

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• LI

  @LivingThePenultimateLife · 1 year ago

  Wow, Erin, just wow. FINALLY, a voice of reason actually adding in SS numbers that are real, and then calculating needed funds. Thank you. You are my new hero of finance.

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• TE

  @TerryBlanchard12 · 1 year ago

  We retired 10 years ago at 59, 57. &nbsp;I have a pension, SS @ 62 and we had 1 million in savings. &nbsp;Wife&apos;s about to turn on SS and we have 2 million in savings. &nbsp;We travel 6 months a year and still have trouble spending it fast enough.

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