How much can I spend in retirement? How do I determine my spending limits?

How much can I spend in retirement? This is a very common question but naïve. Life is much more complex than this. Retirement planning. Can I retire now?

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_*PLEASE STOP USING Spreadsheets!_ It falls way short optimizing every retirement factor*
Retirement Tool Link I reference and highly recommend -- New Retirement. Free 2 week trial. $120/yr after. You will buy this after trying (I have purchased for 3 years).

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Need a CFP to create your retirement plan for a one time fee? My Recommendation: Neil Fortwendel [phone]. Neil created my plan. Plan updates as you wish for a smaller fee. Check Neil out on Facebook and LinkedIn.
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RECOMMENDED FINANCIAL ADVISOR - Assets under Management or one time plan creation
Neil Fortwendel with Northwestern Mutual ph: 812 471 2492

Video by Lean Driven Reliability LLC
This is not investment advice. For entertainment ONLY. Seek professional help to understand your unique situation.
Affiliate Disclosure: Most of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and purchase or set up a discussion. Nevertheless, I only recommend products or services that 1) I currently use or have used or 2) I believe can help the majority of people.

#retirement #retirementplanning #retireearly #retireearlyandtravel #financialfreedom #financialindependence #retirementincome #retirementstrategy #findingpurpose #keto #ketodiet #ketovore #hiit #hiitworkout #healthylifestyle #howmuchcanIspend

[joekuhnlovesretirement]

*_PLEASE STOP USING Spreadsheets!_** It falls way short optimizing every retirement factor*
Retirement Tool Link I reference and highly recommend -- New Retirement. Free 2 week trial. $120/yr after. You will buy this after trying (I have purchased for 3 years).


Need a CFP to create your retirement plan for a one time fee? My Recommendation: Neil Fortwendel [phone]. Neil created my plan. Plan updates as you wish for a smaller fee. Check Neil out on Facebook and LinkedIn.


*DO NOT GO IT
*Money Pickle - FREE! use link to set up a FREE 45 minute dialog with a Financial Advisor*
No obligation. Get answers to your questions. Get an expert to look at your plan.

[driftingintoretirement]

I use the 4% rules as just a guide, and take money out of my bucket. Plenty of free things to do, and especially during the working week (Monday to Friday), Saturday and Sunday’s are just to busy with the rest of the population shopping and sight-seeing 😂. Keep up the great work.

[conureron]

Knowing Expenses is a major element. I’ve been using “You Need A Budget” (YNAB) now for almost 5 years so I have a good handle on my day2Day expenses. I’ve set up a spreadsheet for my anticipated retiree budget, too, and play with that a lot to refine it. Recently, I re-ordered all my YNAB expense categories to match my retiree budget and then imported those into New Retirement- to play with those “levers”. And of course, have also inputted those future one time or 2-time major expenses: Cars, roof, AC units, water heater, appliances, et al. I now have my “go-go” budget and have identified my “minimalist” budget. Looking at a couple of those levers, I might add to my bucket 1 five years of vacation “cash” so I can do some traveling even in a down economy and 5-years of “cash” to make sure property taxes are covered in a down stock market.

[kenm]

We are what some would consider lucky in that we have military retirement with medical (dental and eye not included), VA disability and SS in 11 years. The pensions cover all expenses so we use the Variable Percentage Withdrawal spreadsheet to help guide in or discretionary spending. Having been over savers our entire life the VPW spreadsheet has helped in getting us to see we can now spend it. The transition from saver to spender has been one of the harder things to cope with in retirement.

[BadPhD]

Preach it brother Joe! Don't sugar coat it and hopefully your videos help people be better prepared for retirement!

[catherineburke-shahin]

Yours are some of the best retirement videos out there but I just wanted to say I love baby yoda in the background, I have the same one even though I’m in my 50’s 😂

[clbcl]

99.92%. Just leave enough for the dinner after the service.

[mhoepfin]

Great video and I also use new retirement based on your recommendation. Interestingly I’ve used adding a reverse mortgage as another model (and plan b) and the tool handles that nicely and gives me some peace of mind that if all else fails I have that to use as a source of fixed income. I wish this option was talked about a bit more, as well as downsizing and renting with the equity from the sale put to use in the market rather than locked in the equity of a home.

[OurRetireEarlyJourney]

We plan on continuing to drive our expenses down prior to retirement. 1.5 years before retirement, we plan on living off what we plan to live off in retirement for monthly expenses. That way we can iron out any of the wrinkles and test the waters to ensure we can properly be successful in retirement on that average fixed expense level.

[fvvfvbbbb]

I like this quote....All data is backward looking and all decisions are forward financial/retirement planning, greater precision only provides the illusion of greater accuracy.

[clbcl]

Joe, you still get the same amount of S.S. if you make it to that break even point around 78-80 y/o. Your monthly just changes. $500, 000 over 18 years or 10 years is still 500K.

[loborocket]

I started using New Retirement about a month ago. It makes it so much more clear on how and where you money will flow in your retirement plan. Using it, i have become much more confident I may be able to retire 3 years earlier than I was projecting using my spreadsheets. You can see exactly where your money will come from and how much you are projected to need based on todays spending. It is nice that you can model different "phases" of retirement spending as well. it also makes an assumption about heightened medical costs near the end of life.

[meatman]

67, been retired 7 years. Just did bi-annual zoom with CFA/CFP team. We started with a 4-year emergency fund to get us through 3rd & 4th Q 20% downturn, Covid, and Putin's war. Monte Carlo says r^2 = 99. I was told to spend more. I had a lid on spending for 7 years. Planning Antartica for my 70th birthday that will bump our annual travel spend from $18k to over $40k that year. We have a hard budget and the excess each month goes into savings to smooth out the bumps. $2, 000 tv for the family room last month.

[kathysheeran]

What plans for spouse? I didn’t understand what you said. Thanks Joe for trying to get us to retire sooner. It helps to hear your thoughts on it.

[Retiree]

Everything is more expensive than what you budget for. Ran out of tequila yesterday- good gracious the cost of tequila! Had not built liquor into my spending retirement model. Also, I am mostly frugal but married to a spender. That should be a whole video in itself. Do you split the spare money for each month?

[peardisplay]

I run budget with 3 groups . Big bills- once or twice year bills like home, auto maint. auto and home ins., property tax, then Monthly bills group like utility's, gym memberships etc. and then every paycheck group like fun cash and aldie grocery cash. and future car payment fund. all on a libra excell spread sheet. thanks joe for being Joe.

[vernshird]

Here is the formula I'll use. During your last year of work, take your estimated annual expenses and add in a 10% to 15% buffer for incidentals/emergencies. Take that amount and divide it by 0.8. That should be your estimated gross income for year 1 of retirement. Add in an annual COLA each year afterwards.

[Uno-uo]

Actually, when the market is up, a person shouldn't spend more, but put some of that away for when it's down. Keeping things on a more even keel. If a person is doing the up and down spending amounts, they're not doing it right, but it's better then spending high amounts when have less. Hopefully a person doesn't need to spend more then the down market provides. In short, much like emergencies, it's unknown when down markets will occur, but they will occur. Be prepared.

[randolphh]

A big mistake is to ASSUME the GO, Slow, and No Go spending, let alone when they will happen.
You will not know when or if you will hit those milestones!
The base budget approach IS important. Then add the option of optional(discretionary) spending.
I’m just over in Europe on a month long trip. This includes visiting elderly relatives. My 88yo mother flew over with my brother also. There are several in their eightees, their level of activity and interest is quite diverse. The only reason 76 year olds slow down is health or money. Most still want to do a lot. Many remain quite healthy into, their 80’s. They may change to less physically demanding activities, but not necessarily cheaper ones.

The number one goal is to figure out a base budget and how to fund it reliably. Then how much discretionary spending can you afford? Try to find that discretionary money at least til your mid 80’s. If you have the base covered then you can adjust the other as stuff happens or not.

[ken-]

50
Turning 51 August
4 kids
Trying get my youngest
Only daughter thru college
No student loans
Debt free
Joe
U seem to be salt of the earth
I appreciate all your videos
Plan on retiring 56-60
Appreciate your knowledge