I'm 60 With $1 Million How Much Can I Expect To Spend In Retirement

Do I need a Roth Conversion? How long will I live? Will I run out of money? What if I die before my spouse, will they be ok? These are some of the questions we look at in this case study of a couple in their 60's with $1 million. We take a look at how much they can expect to spend in retirement. We'll also take a look at some of the things that might go wrong while in retirement.

00:00 Introduction
01:06 The “Light Bulb” Moment
02:38 Parameters
03:30 Income Plan
05:54 Inflation and Your Income Plan
07:10 Social Security
08:29 Monte Carlo Simulation
10:43 Sequence of Returns Risk
11:19 Roth Conversions
12:14 Biden Tax Legislation Livestream
13:27 Required Minimum Distributions
15:06 Identifying the Shortfall
17:46 Social Security Income Analysis
21:05 Play Zone
27:53 Your Portfolios and Time
28:27 Contact Us and Subscribe

#incomeplanning #retirementplanning #retirementincome #retirewith1million #retirementat60

Working with a CFP® professional can be an important step toward reaching your financial goals. Not only do these advisors meet rigorous education and experience requirements, but they are also held to some of the highest ethical and professional standards in the industry.

Education
CFP® professionals must master nearly 100 integrated financial planning topics, including:

- Investment planning
- Tax planning
- Retirement planning
- Estate planning
- Insurance planning
- Financial management

In addition to completing a comprehensive financial planning curriculum approved by the CFP Board, or equivalent academic coursework, CFP® professionals are required to complete continuing education coursework, including a CFP Board approved code of ethics course, to ensure their competence in financial planning.

Examination
CFP® candidates must pass a comprehensive 6-hour CFP® Certification Examination that tests their ability to apply financial planning knowledge in an integrated format. The exam is notoriously difficult and only 64% of people who took the exam in 2017 passed. Based on regular research of what planners do, the exam covers:

Establishing and defining the Client-Planner relationship
Gathering information necessary to fulfill the engagement
Analyzing and evaluating the client’s current financial status
Developing recommendations
Communicating recommendations
Implementing recommendations
Monitoring the recommendations
Practicing within professional and regulatory standards

Experience
CFP® professionals must have a minimum of three years experience in the personal financial planning process prior to earning the right to use the CFP® certification marks. As a result, CFP® practitioners possess financial counseling skills in addition to financial planning knowledge.

Ethics
As a final step to certification, CFP® practitioners agree to abide by a strict code of professional conduct, known as CFP Board’s Code of Ethics and Professional Responsibility, that sets forth their ethical responsibilities to the public, clients and employers. CFP Board also performs a background check during this process, and each individual must disclose any investigations or legal proceedings related to their professional or business conduct.

Are you worried about 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:

Do you have a retirement plan that goes beyond allocating funds to truly fit your needs? We can help you create a retirement life plan customized for your retirement vision and legacy. Call us at [phone]

[NicholasBall]

It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.

[Richardcarlett]

With Roth IRA, the money you are contributing has already been taxed. At any time for any reason, you can withdraw your contributions tax-free and penalty-free. Additionally, any earnings on investments can also be withdrawn tax-free and penalty-free, Not sure how much to contribute, I'm still at a crossroads deciding if to liquidate my $338k stock portfolio.

[FelineAirstrip]

Recently, I've been pondering retirement. I've also want to put $800K into the stock market but i need an approach that will align with my risk tolerance and financial goals to secure our future

[DavidWilliams-qryj]

At 69 I retired 9 years ago at 60 years old with 1 million, I have spent an average of $45, 000 per year and I still have a net worth of $1.1 million. I'm enjoyed the first 9 years of my retirement I'm hoping for another 20:-) the first 9 years I traveled extensively internationally and went on cruises at least once a year as well as more than a dozen road trips all over the USA and all over Thailand as well as bali, Kuala Lumpur, Hong Kong, Shanghai. I'm loving retirement and enjoying helping out giving to the poor or the disabled

[robertthurmond]

Joined the Navy at 18 with 7k in the bank. I did janitorial and smoked a lot of pot in high school. Left the Navy after months with 40k in the bank. Invested 30k in the S&P stocks. Started working at UPS, Exide Battery and did concrete on Saturdays. Invested 1k a month every month into it with my Financial advisor James Fletcher Brennan, Cashed out 350k from the S&P Cashed out and Semi retired at 31. Took a year off. Traveled. Came home and started working part time just for the insurance, entertainment and pocket change and still investing in stocks with a 3 million net worth, Work isn't work when you don't have to work. Becoming wealthy can be done in few years. It feels like 60hr work weeks. Feel the pain of discipline early or feel the pain of regret later. I wish everyone well!

[kevincooper]

Well here's a food for thought for folks about to retire or plan their future: Place a sizeable portion of your capital/savings in fixed-income securities like treasury bills, corporate bonds, government securities, debentures and let it grow. It will take you far I promise.

[Encourageable]

My in-laws have 1/3 of that and they are retired and happy. I don’t think they are missing out on anything they enjoy. With $1M you should live as simply as possible - the peace of mind of knowing you have enough for most emergencies is priceless.

[teams]

I retired 7 years ago at 57. I now have a couple of million. Living on about $50, 000 a year. Take a couple of cruises a year (first class) and just like doing anything we want. We do not spend much except on vacation and food. We have a brand new house and cars. All are paid for.

[ChristopherAbelman]

Retirees who are struggling to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million.

[diane.moore-]

I wasn’t financial free until my 30’s and I’m still in my 30’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made. Great video! Thanks for sharing! Very inspiring!

[schikashap]

Why do people look for ways to avoid and eliminate taxes, and then turn around and vote for people that raise taxes??

[patrickchappell]

So very helpful - thank you! My wife and I are 54, plan to retire at 60. I'm working but already drawing $5000 a month school pension. Plus we should have close to a million at 60 in retirement - plus a paid for house to sell (we're paying on the condo we'll move to now). This makes me feel good about supplementing our income with 4% or so each year, vs getting some kind of annuity.

[looloo]

Take the million, go to Vegas, talk to casino management. They will give you one $1million dollar chip. Walk to the roulette table, put it down on red of black. 49% chance you'll win. You'll either double your money, or be entitled to government freebies. A win-win situation.

[westhavenor]

I'm 60 with $1M and retired last year at 59 (not by choice). I feel like I'll be okay, but can't imagine retiring this early and supporting two people (I'm single). Owning a home is so expensive. Utilities have gone up 30%, which is $600/mo for me now, and my property taxes are $11k/year and rising. Doesn't seem sustainable. God forbid if I ever need a new roof! I'm looking into moving to Mexico, Spain or Italy.

[RobertLinthicum]

Spending less would solve most of this strenuous prediction exercise.

[johnhankinsfinancialtherapy]

You have packed a lot of good information into this. The one thing I think is missing is a discussion of this couple's expenses preretirement. The spending plan does make sense without understanding their current actual expenses and spending patterns.

[billyrayband]

You should do a separate video on how to get a solid estimate of your expenses during retirement. That is step 1, and the earlier you retire, the more important it is. Lifestyle, debt, health varies greatly.

[peterkimcpams]

Move to Mexico!! I own my home outright in a 27 hole golf resort on the beach with 24 hour security (50 miles south of San Diego), and my fixed monthly living expenses is less than USD500. I made a move at 44 and have not looked back.

[travgirl]

I would like to see more videos on single people. I would like to see what extra steps are needed since I don’t have another person to depend on financially

[comeconcon]

With one mill you can't afford a lavished lifestyle, but a simple lifestyle.