Why The First 5 Years of Retirement Changes Everything

Opinions expressed herein are solely those of URS Advisory. All written content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions.

Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your financial adviser or qualified professional before making any financial decisions.

[KennedyVerbruggen]

This is my fifth year after retirement. I’e been following the 4% rule thing I saw on a youTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.

[ZhannaDavidova]

I’d definitely start planning for retirement earlier.

[Daaannn-gk]

Retirement becomes truly rewarding when you have two key components: a solid financial foundation and a clear sense of purpose. Making wise investment decisions is crucial to achieving strong returns and enjoying a secure retirement.

[BrightonZ]

Retirement becomes truly fulfilling when you possess two essential elements: ample financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement.

[ChristianJacquet]

It’s crazy how financial worries can creep into every part of life, even when things seem stable. I used to stress about my savings lasting through retirement, unexpected medical bills, and even small daily expenses like utility costs. Honestly, it felt like I was just waiting for the next financial crisis to hit. But things changed when I started working with a financial advisor. The right guidance gave me a clear plan, which helped me feel more in control. I wish more people realized how much peace of mind comes with solid financial planning.

[BlackJones-zx]

I'm glad you made this video it reminds me of my transformation from a nobody to good home, $34k monthly and a good daughter full of love.

[RobertsActiveRetirement]

19 years retired myself. I found in retirement my funds grew way more than I thought. It has increased even faster than when I worked. It seems the financial industries thrives on scaring you about finances in retirement, but I found just the opposite.

[davidhill]

Start planning your retirement ASAP. One option that few young people seem to consider is to think about including a career in the military as an officer, especially as a Doctor, Engineer, Lawyer, Dentist or something like that. Often you can receive scholarships of even a commission in the military for certain careers. You can get all or part of your undergraduate degree paid for, then have a guaranteed job for a number or years in the military (commitment period.) If you decide to stay, the military will often send you back to school to get further education and another degree. After 20 years active duty, you will still be young, I was 46 after retiring as a Doctor. Then went back to work as a Doctor for a Managed Care System and got my second retirement. I started collecting on my military retirement at age 46, and am collecting it to this day at age 71. It is 2.5x my social security retirement.

[randolphh]

Adjusting spending IS quite effective IF you are spending above your basic needs.
As to early spending compared to working, IF seeking value and aware of how not to waste money it is quite easy to spend less and do more in retirement.
No amount of financial planning will fix people who are clueless about budgeting!
We are spending about 60% of our pre-retirement budget and doing way more fun stuff. We are however on a budget and seek value. We also have large amounts of discretionary spending which is adjustable if necessary.

[Kizitowhite]

I’m eager to invest in stocks this 2025 but hesitant due to risks. With others making millions, what’s the best low-risk strategy for solid gains?

[matthewowcarz]

Thanks again for a great video Julia. I sent this to my parents who are within this 1st 5 years of retirement. They have a financial advisor who told them spend all you want because he'd never seen anyone run out of money. They didn't take his advice (they're naturally conservative with their money) and instead switched advisors so this was more of confirmation that they're doing the correct thing by still being cautious. It's difficult as well because they only ever saved in a 401k and don't have any "already taxed" money so taxes certainly eat into their savings.

[lordabhikingfisher]

Agree. 'Risk of Return' is a real risk. Hopefully I can create one bucket that covers 5 years in retirement in my two-bucket strategy.

[JohnD-fo]

My spending is higher than I expected my first year of retirement, but I am doing some much needed home projects. I also have a second home I am fixing up for selling soon.

[mwood]

The one thing that I never see financial planners discuss when they "rebucketize" existing investments is the tax cost of selling one asset to purchase another. Yes, having your investments diversified correctly is a smart thing to do, but moving those investments around isn't free. It would be great if in a future video, you could factor those costs into the discussion.

[JohnD-fo]

I had an unexpected 6000 dollar pet bill my first few months of retirement. Was not expecting that. Dont have older dogs. and yes home projects cost money. All those things I put off or wanted to do but never had time are now costing me money

[nycupperes]

The most interesting part of the video was reducing stock portfolio, to reduce risk to a cash position. However, you can still achieve with certain fixed investments, like BCD’s, Prefereds, MLP’s and REIT’s an even better return while reducing risk.

[williamrogers]

Bucketing is another buzzword for asset allocation (i.e., stock, bonds, cash) and rebalancing to maintain the desired asset allocation. What was missing in the video was the concept of asset location, where the Roth and taxable accounts hold tax-efficient stock funds and the tax-deferred accounts hold as much fixed income as possible. The tax-deferred accounts will grow more slowly as the expected return on fixed income is lower than stocks, and reduce RMD amounts later on, especially if one is a survivor and their tax bracket goes up.

[robertk]

Amazing content. We've just crossed a 5-year retirement line, and I can confirm that spending was up about 15% a year compared to pre retirement years. Most advisors say 80% of your pre retirement income is needed. That's not true. I agree with Julia, and I am speaking from experience. Personally, I have different strategies, but this is not for everyone. We live of dividends, never touching the principal. Individual stocks. Both retired at 64. First year retirement income 122 K. Last year, income 168 K.
Portfolio value doubled since our retirement (we keep some growth stocks as well). But we realize that this is a risky way. It's very difficult to change the strategy when the strategy works. We are DIY, but we completed courses, and we have credentials. Tax education in retirement is critical. Especially if one is using a 'holding company' scheme. Good luck, everyone watching Julia's videos. If you are watching those, you should be ahead of the next guy. The trick is to apply the knowledge. Don't just sit on it.

[drackkor]

Wow, the most beautiful investment adviser I have ever seen :)

[SC-yekw]

Kill the stress of unpredictable income derived from the fluctuating markets and buy an annuity with guaranteed lifetime income to supplement your Social Security and pensions. You don't need to put everything into an annuity, but make sure all your living expenses are covered. With the rest of your investments, invest for long term growth.

Using annuities for income also helps with those who are afraid to withdraw money from their investments. Almost everyone is comfortable spending monthly income.