The Five Retirement Spending MYTHS That Most Retirees Believe

This video discusses five retirement spending myths that don't apply to many/most retirees.

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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.

[RetrieverTrainingAlone]

Excellent! We retired in 2019 and our retirement funds have grown substantially.
We had no debt (house paid off) when we retired and are enjoying the "go-go years" with a lower annual budget than when we were working. Medicare plan G payments are less than $200 per month and much of our enjoyment is within an hour driving time from our home in Montana.
Canoeing, cross-country skiing, backpacking, biking, gardening are all fun activities that cost very little and help keep us healthy and happy.

[joycewright]

Having your health and being debt free is the most important aspect of retirement.

[prairiemark]

I am almost 71 and I notice that I want to stay home more than I did at 66 or 69 years old. And I also notice that I am just as happy to stay home and read, go for walks and go out for coffee. I get too sleepy on long road trips by my self so I drive a lot less. It is not that I am unhappy or that I am about to die, but just the my preferences have changed, partly because my body is aging. This is consistent with what these retirement advisors like Mr Schmidt say. This does raise an issue with my younger wife that we have to work on. She will turn 60 soon and she can go and go, even after she works O.T. on many days. So sometimes we do more things separately. I can spoil the party if I get sleepy and go home early. I want to stop at motels more quickly than she does on road trips. She used to walk with me or ride bikes with me, but now I am not really slow, but slower than she wishes to walk to get her needed amount of vigorous exercise. Just a few comments on the reality of age-gap marriages. Good luck to all.

[Riggsnic_co]

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.

[loucatozzi]

If nothing else, I am impressed by your ability to write/draw in reverse.

[johngearhart]

Holy Schmitt, thank you for producing high-quality, relatable, common sense videos. I see your channel is growing, and you deserve it.

[Sanslab-wutv]

I had not planned on significant health problems in retirement (both my wife’s and mine). We are too ill for the retirement experiences to which we had looked forward. We are unable to travel, for example. Our siblings are now passing away at roughly our age. Retirement at 68 has become making plans for eventual hospice care and deciding what our descendants will do with our possessions. I did not expect this when I was younger!

[johnwalters]

Downsizing you home could be actually bad if you have owned it for decades. Especially in states like CA that have prop 13 tax caps. Your new “downsized” home could cost thousands more a year in additional property taxes.

[InTheGardenTarot]

I retired at 62 and I have a very small teacher pension and SS. My strategy was to live within my current means and elimanate debt. One observation I have made is that people prepare financially for retirement but they don't really prepare for what they will do in their retirement. I see alot of boredom and frustration and even depression as a result. Its important to develop hobbies and interests and think about what you want to do when you aren't going to work 5 days a week and living for the weekend.

[Tejas]

As a 2 year retired man.
This is spot on.
Thank you
The biggest lie is when an advisor tells you that you need X million….

[edflaherty]

One area to save money is dinning out . Sure we go out to eat a few times a year at a high end restaurant for special occasions . We avoid the breakfast at the dinner, a lunch at Olive Garden, ect. It much cheaper to dine at home. A steak on the grill is just as good as one at a chain restaurant. It's more relaxing at home and you can take all the time you want and avoid the $5.00 desert, the $3.00 coffee, the tip, tax, ect. Probably for about 2/3 the price. Another good way to save is avoiding that $4.00 Starbucks coffee every morning that ends up costing you $1, 460.00 / year net or $2, 000.00 gross income. One can buy wonderful coffee at the market and brew you own for about 90% less .

[Lemariecooper]

I plan to retire or reduce my work hours in five years, and I'm interested in how others allocate their income between savings, spending, and investments. I currently earn about $175K annually but haven't built up much in savings so far.

[marypeterson]

Thank you. I'm retired and the medical insurance and cost are much more than I planned. I have wonderful insurance and I can go anywhere and I'm covered.

[wildtill]

#4 spending principal - totally agree with your advice

[herb]

GREAT INFO. Even with my accounting & finance background the last 6+ years retired have shown me that so far al your points are exactly correct. my investment portfolio has increased ~35% since then after withdrawals. We still rv and live the same or a bit higher lifestyle. Things like suits & ties & dress shoes are in the rear view mirror. Next couple of years we’ll be doing more bucket list type travel w/o the fear of outliving our funds.

[tscoff]

Work related expenses are changing. I telecommute so almost all of the work related expenses that everyone faced traditionally don’t apply to me. I already don’t have those expenses so my retirement expenses won’t be significantly less than my current expenses.

[vincentdesalvo]

I have been surprised by my level of spending since I retired. I do more activities and eat out more than when I worked, but spend less and it is because I’m not paying into FCIA taxes, no money going into the retirement account, not paying into private employee medical plan, and the big one, no debt for the monthly bill. Now you do have to budget for all insurance, home tax, and federal taxes each year. If you did your planning up front and prepared for retirement you know where you stand and you don’t need millions to live a comfortable life.

[NipItInTheBud]

Who thinks healthcare costs go down when retired? I mean health care costs never go down for anyone but they especially don't go down the older you get!!

[tremaincheerful]

Thank you for this realistic, encouraging, and inspiring information.

[cduff]

Retiring early Next Friday! ( 54 and single).

In working with my finacial advisor, I will be spend a bit more in the early years and less as time goes on (though I have planned for higher medical costs as time goes on).