Why You May Need Less Money Than You Think to Retire

How much does it cost to retire? This video discusses why you may need less money than you think! The video also discusses how people actually spend in retirement versus how they spent during their working years, as well as taxes and other deductions that workers pay that retirees do not. The video concludes with a discussion about the accurate cost of healthcare in retirement versus the scary numbers that you some might want you to believe.

T-Rowe Price article on healthcare costs discussed in the video:

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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.

[kevinvictor-sw]

Biggest lesson i learnt in 2023 in the stock market is that nobody knows what is going to happen next, so practice some humility and low a strategy with a long term edge.

[darnellcapriccioso]

Most people don’t realise it, but the secret to retiring comfortably is finding a way to make returns while your money works for you. My dad, as I remember, started saving for retirement quite late, but I know he was making more than 10k returns from his investment monthly and it was completely passive.

[Raymondjohn]

More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.

[laurelharper]

51 years old. I have $295, 588.25 in my Fidelity retirement account. I cranked my contributions up to 35% and I do all the investing on my own. Fidelity just holds my ETFs/stocks. I made that change earlier this year. I'm hoping to end the rat race by 60 but it's looking more like 63-ish. I want to have $1.5M and bring in about $60k in dividends each year. Pedal to the floor! Thanks for the video. Great content.

[JerryLuca-nmru]

For me, I believe retirees who struggle 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 wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.

[Milkman]

Being a CONSUMER is the biggest issue facing Americans. We want stuff, lots of it. We dont need it. Not being a consumer is FREEDOM.

[CliveBirse]

We all aspire to financial independence, attainable through savvy investing and a frugal lifestyle. Inspired by Warren Buffet, my wife and I, despite a middle-class income, aim to retire at 58 with a $1.7M stock portfolio, never having sold a single share.

[bernie]

I've been retired for 7 plus years and my wife has been retired for 5 plus years. So far we haven't used any of our retirment money. We are having no problems living on just our SS. Being debt free is what makes that happen.

[M.Campbell]

Covid wasn't kind to me. I lost my spouse and my employer went bankrupt. I ended up retiring several years earlier than planned. I've discovered jobs, for people my age, are few and far between even if you are willing to work for a much lower wage. Thankfully, I am debt free except for a mortgage. I'm living a frugal retirement but the house has to be sold. The mortgage is almost 60% of my income and future property tax increases will drive it higher. I'm actually looking forward to life after the house. It's just a ball and chain, at this point. I will have enough from the sale to buy, free and clear, something much smaller, in a lovely area, with enough left over to pad my emergency fund nicely. I haven't had to touch my retirement accounts. My advice is to re-assess what your true priorities are. You can make it work on far less than most financial advisors would have you believe. New places to live mean new friends, new activities and possibly, a new, lower, budget. Don't stay stuck. Choose an adventure.

[selenajack]

Sincerely, I'm genuinely moved by what you said about early retirement. And yes i equally agreed with you It's the FREEDOM from being able to make a conscious choice, each and every day, in terms of how you’re going to spend your time… I have about 40k that I am willing to invest if given the appropriate knowledge and I am highly interested in investing. My greatest concern is losing money on a bad investment. I'm open to hearing your advice on how to make sensible investments as a result.

[michaelmckay]

Institutions like Fidelity scare us into thinking we need millions to retire. The truth is you don't and these financial institutions are trying to scare you into building a larger account with them. The bigger account, the more they make.

[zauwee]

As voices in my head always remind me. “There’s not enough time in the world to do all the nothing I wanna do. There’s no material possessions that can replace time you can spend for yourself.” Money, things come and go. Time only goes. Retire. Be free. Live. Reinvent. Engage with yourself.

[dag]

I have enough. Retired at 64 due to health. My house is paid off and I have no debt. I live very comfortably on a thousand a month. It's all the choices we made through out our life.

[wafflesca]

The biggest problem I’ve had in retirement is switching from saver to spender, I spent decades saving as a normal routine, not comfortable spending for pleasure.

[hideawayhomesllc]

My daughter and step-daughter each have jobs, houses and spouses and a college education paid for by me. Why should I scrimp on my retirement to leave them additional money? They have 30 more years to work and save, I don't.

[ookookook]

I’m only 51 and you’re one of my favorite YouTubers

[c.t.u.o]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.

[aliciatyrell]

Could you please do a video focusing on childless singles planning for retirement.

[edhcb]

Never have been so happy with my wife’s choice to be a lifelong government employee as we now enter into our mid-fifties and look forward to a pension that is almost her full pay.

[seymorefact]

🤣 im retired with $1400 social security and i draw $0 to $300 from 401k about 5 times a yr. my house is paid off and i drive an 2012 Prius. Many months i have money to save $500 a month. No pets. 1 son that is totally independent. I vacation with friends every 2 to 3 yrs out of state. I eat very well at home. I never feel i miss anything. Keep it simple.