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How to Retire Early In Your 50s! (What FIRE Gets Wrong)

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Title :  How to Retire Early In Your 50s! (What FIRE Gets Wrong)
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Comments How to Retire Early In Your 50s! (What FIRE Gets Wrong)

Haris Muzaffar
The best part of not being an American is that you don’t have to worry about taxes
Comment from : Haris Muzaffar

I will retire at 50 years young
Comment from : muffemod

Jeremiah Robbins
Hey Money guy! Im a super motivated individual that is only 36 yrs old I do want to retire at 50 I need some advise on how can reach this goal What advise can you give me?
Comment from : Jeremiah Robbins

There is a big difference between able to retire and actually retiring I'm 52 and I'm able to retire, but I am not planning on retiring at this time Not having a job to go to I would not know what to do with myself if I stopped working brbrA few years ago, I broke my arm in a horseback riding accident ware my doctor would not let me return to work for months By the time I was getting to the 13th week I was begging my doctor to let me go back to work because I was so F*ing board out of my scull that I wanted to return to work just to have something to do with myself brbrBecause of the way that my work schedule is and the number of the paid vacation days I have, I can take a great many short 7-day vacations every year (five regular days off and using two vacation days) So having lots of "me time" wail still working works great with me with me not retiring
Comment from : Donkeyearsa

Algo Flush
I retired April 2022 at age 55 I used the IRS rule of 55 to avoid 10 early 401K withdrawal penalty I becamebrdebt free including my home in July 2020 My expenses are $2000/month I calculated my retirement number bybrusing this formula $2000 x 12 months = $24,000 Now multiply $24,000 x 25 = $600,000 Now take br$600,000 x 04 = $24,000 I need a 4 return or more on my $600,000 to cover my $24,000 of expensesbrObviously, this is more achievable by having zero debt Figure out your monthly expenses and use this brformula The lower your monthly expenses, the easier to achieve
Comment from : Algo Flush

Matt K
I wouldn’t look at gross income and multiplying it to figure out your retirement number All that matters is your annual expenses, how much you have saved, and your withdrawal rate Not what you were making while you were working Imagine person one makes 100k person two makes 100k but one saves 20 percent and one saves 50 percent The one who saves 50 percent has much smaller expenses and in turn needs much less in their nest egg
Comment from : Matt K

Sarah Phillips
We are shooting for 55 Great video!
Comment from : Sarah Phillips

Dave Langley
Who can save 30x your wage These guys are so out of touch it’s un real Pay off your bills Retire with no dept who are these clowns I would love to show them my plan Retired at 52
Comment from : Dave Langley

John Little
these recommendations are very conservative, you would have to earn terrible returns every year and never receive social security to need this much!
Comment from : John Little

m e
28x annual earnings is crazy 28x annual expenses makes more sense to me
Comment from : m e

D Forrest
You do NOT need 29 times your income to retire at age 55 If you spend all your current income, then perhaps But if you are able to retire at that age, you almost certainly are saving a high of your income I could see having assets of 30x your “after savings” income Even that is very conservative I think, since the increase in health costs would be offset by a decrease in taxes, such as no FICA or Medicare taxes
Comment from : D Forrest

Bill Zulkosky
Brutally basic and assumes the individual is a financial idiot that won't adapt to market conditions of your salary mean nothing A person needs a realistic retirement budget and either choose the 3 bucket or barbell system
Comment from : Bill Zulkosky

Aj Capitano
Probably you want to say some needs 30x of yearly expenses not 30x of pre retirement income as for many the income could be more than the expenses ? That’s why people save from difference (earning Vs Spending ) for retirement nest egg portfolio
Comment from : Aj Capitano

Scott Clarke
49 for me - next year
Comment from : Scott Clarke

You can be done early Stay at home after a college for a few years Wait with kids until 32 or later House hack after living with parents You’ll be able to save more than 50 of your income every pay period Invest in high risk/high return assets and last but not least Take care of your body so you can last
Comment from : Jacob

NeverClever NorWitty
My wife and I are 46 with a 15M in Roth, 401k, 403b and a paid off house We both also have state pensions, hoping to pull the trigger at 55, really would like to do it sooner
Comment from : NeverClever NorWitty

Kevin Kake
If you do what you love and love what you do, you shouldn’t be in such a hurry to retire,
Comment from : Kevin Kake

Guysupdate the video it's not income it's EXPENSES!!
Comment from : David

Discover & Share
The retirement numbers are conservative The assumptions are 1) you will live to 105 female is 002 and male 0002, so chances are close to 0 2) you want to leave inheritance 3) you want to live a wealthy life during retirement 4) not sure if these numbers take in compound interest of the $ you have not used Inflation of 1 mil will be 2 mil, but your 1 mil could grow to 2 mil in 10 years also; fire uses 25-30 x expenses So in FIRE terms this is Fat to Obese
Comment from : Discover & Share

Darrell Pettis
They are attempting to combine two common retirement benchmarks into one and they may have missed the markbrbrThe 4 rule which can also be restated as having saved 25 times your ANNUAL EXPENSES when you retirebrbrThe Fidelity benchmarks of having saved 8x to 15x your GROSS INCOME when you retirebrbrFor someone at fifty five, using their assumptions of 60 of gross income and a 35 withdrawal rate the calculation should have been 60/35 which equals 17 times your gross income at retirement which is just above Fidelity’s 8x to 15x
Comment from : Darrell Pettis

Jannis Roth (Grow Your Wealth)
Amazing take on FIRE 🙏 brCant wait for your next video! 💪
Comment from : Jannis Roth (Grow Your Wealth)

Ricky Cordero
Is the 289x money that should be in your retirement accounts on the day you retire, or is this the overall amount of money that person would need throughout retirement until death?
Comment from : Ricky Cordero

If you have a pension in addition to your retirement savings, how do you factor your withdraw rate?
Comment from : snowbunny1001

Mohamed Sami
How can you withdraw from your 401K account early (before 625 of age)? Doesn’t that incur fees and has tax implications? Are there any suggested investment options that will allow the retiree to start withdrawing early?
Comment from : Mohamed Sami

More people could retire early if it weren't for the massive health premium costs This is the biggest concern for most We are in this boat where we live in a state that has extended medicare if you live below the poverty line when calculating your MAGI But if you have any money in a bank or investment gains at all, you are not eligible for it So that means to get on an ACA plan, we have to show a MAGI above the federal poverty level for married household of 2 Then we can get stipends on tax credits and pay 0 to very little for a silver plan or whatnot based on that MAGI But you have to play that game where each year you have to try and stay below the MAGI you estimate when buying a plan in Nov/dec of each year If you stay within it or below it great, if you go over you get hit with a big tax bill when you file the following year Just a mess !
Comment from : Bob

Guys like this simply want you to keep working and give them more money! I am 56 and retiring at the end of the year, why would anyone listen to this nonsense? 1 Get debt free and stay that way, sell your house and rent in a location that is cheaper or buy when this crazy market tanks Finally, have money both outside and inside a 401K The outside 401K is invested for income and should cover you while your 401K continues to grow with more aggressive growth ETF/Funds Use bucket strategy to limit risk during down turns
Comment from : JC

Khaki Shorts
I'm 50 and I'll be retiring at 52 The wife and I will be lucky enough to live off rental income from properties as well as interest and dividends from stocks and ETF's We're also lucky enough to be able to allow our 401(k)s and retirement accounts to keep growing during that time Instead of needing more money to have a comfortable lifestyle, we're moving to Malaysia from the US with a much lower cost of living That will allow us the freedom to travel on that side of the world much more easily Health insurance is another reason we're moving overseas We can buy a policy that will cover any large medical expenses and put aside some money to use the low cost of healthcare in Malaysia to cover basic care We're super excited and ready to begin our next journey!
Comment from : Khaki Shorts

Road Runner
These numbers are definitely wrong, 30x income when we assume people need 60 of the income to live is 48x of expanse, that is about 2 withdrawal rate I know there are tax involved, but that should be part of your expanse, and there are so many variables to tax strategy, early retiree can usually get away with paying very little tax unless your annual expanse is a lot more than 100k
Comment from : Road Runner

Michael Day
Too often, these videos reference age over years Retiring in my 50's if I am in my 40's takes a different path from someone in their 20's or 30's I want to know how do I retire in 10/15/20 years, not in my 50's
Comment from : Michael Day

I Will Be Part Of That 1
Comment from : Chino

Pasu Chu
It’s funny when they say most people reach millionaire status at 49 How?
Comment from : Pasu Chu

ariq roth
I would love to see in 20-40 years if these people who "retired early" actually never had to work againor they had to go back to work in their 70s or 80s due to economic conditions
Comment from : ariq roth

Chuck Burkett
So 100,000 * 289 = 2890000 Multiply this by 35 is 101,150 I thought we wanted a 60 replacement level not 100 How to people account for the different income needs for pre-medicare and pre-social security Your replacement need post social security might be quite different Seems this just ignore social security entirely
Comment from : Chuck Burkett

ttu888didfitRhonda Vigil
Debt free, mortgage free and retiring early Most likely 55-58
Comment from : ttu888didfitRhonda Vigil

Stacy Gahlon
I keep recommending you guys, but this math is not accessible for financial mutants in the makingbrbrIf you make $100K, replacement rate of 60, is $60K expenses At a 325 withdrawal rate, that is approximately $185M But $100K x 30 is $3M That is over a $1M difference Maybe FTE Daniel can do a graphic explainer for the rest of us?
Comment from : Stacy Gahlon

Big fan of these guys but I have to agree with the comments the numbers they gave are whack They are assuming your nest egg grows at just rate of inflationbrFor example, they say to estimate 60 for yearly retirement income of current earnings yet have 30x saved A $100,000/ yr earner would expect 60k per year (60) and need 3,000,000 at 50 saved I understand the 60 (accounts for savings rate, taxes, less housing costs and future SS bemefits) but the retirement amount needed is too high At that logic, retirement would last 50 years if just growing at rate of inflation Sorry, but if I'm expecting to live for 50 years past retirement, I'll still be aggressive in my investments at least until 65 as time is still on my side to recoup market losses Plus, not to mention my lifestyle and expenses in my 90s will be significantly less than my 50s and 60s brbrCheers
Comment from : Conrad

Sylvan dB
Some of us have a SSA history starting well before our 20s If I work until 65, I'll have over 50 years of earning history That seems rather long So maybe age is not the factor that determines early or not retirement
Comment from : Sylvan dB

Drew Atkinson
The multiplier should be your annual expenses, not annual income That can be very different
Comment from : Drew Atkinson

Chris Olivo
I wish that health insurance worked like Auto Insurance for healthy people Instead we have this ‘one size fits all’ system in many respects I have built up my HSA and would love to purchase a super high deductible cheaper policy that just covers something catastrophic that god forbid might happen to me The rest I would pay out of pocket from HSA But we can’t have anything that makes sense in our society!
Comment from : Chris Olivo

Jason A
Income withdrawal rates of 3 ??? You would have to eat McDonalds 3 times a day and live in a crappy $300 a month apartment !!!! wtf ! 60 replacement is a joke It should be 120 replacement because of healthcare and assisted living is like $7,000 a month
Comment from : Jason A

30x pre-retirement income seems too large a goal for most folks That’s the goal for the standard retirement, not FIRE
Comment from : Mxm9966

Why do I need 30x my income if I only spend 1/4 my income? brI thought these guys knew what they are talking about
Comment from : Oneofakind

Joe Rozario
289x may not make sense for high earners in their late 30s and 40s who live well below their means
Comment from : Joe Rozario

Michael Woods
Many people retire in their 20s and 30s You can see them in any homeless camp, living on your charity and taxes
Comment from : Michael Woods

If we're retiring at 65 I'm not planning for a 30 year retirement Even if I'm somehow still alive at 95 with ever lengthening lifespans, by 85 my priorities will have shifted from making quality decisions and enjoying life to wondering whether I pooped myself My carcass can just hang out on social security at that point It's not as if I'll know where the hell I'm at by then anyway Any money left in my portfolio should then go to family rather than drained away by doctors subjecting me to torture because I'm afraid to cross the threshold
Comment from : M C

I hate titles like this because it seems you don’t quite grasp what fire is about
Comment from : LordZephyrus

Mike B
Needs $4 million when they are 55 years old to replace their income if they make 138K per year? It seems way too high
Comment from : Mike B

30 X gross? Or net?
Comment from : Sean

Rick Chandler
My biggest part of my retirement plan is to move out of the US That's mainly due to healthcare While I have the money to live off of, my main goal is to live off my passive income and use my portfolio as a supplement I'm in my early 50's as well
Comment from : Rick Chandler

Peter N
These numbers that reference 30x of salary should have a cap on salary such as it applies up until salary of 125-150k or something More than that the number start getting a bit excessive
Comment from : Peter N

Let’s be honest - for the VAST majority of us, retirement in your 50’s is not realistic unless you have fallen into a windfall of some type or are willing to live a fairly frugal existence For those who want to have a similar lifestyle in retirement as they had during their working years, you’d best plan on plunking away at your day job until you hit 60 at the very least…😐brbrFive more years, five more years, five more years……😂
Comment from : ddellwo

Something is totally not adding up with the math here When I was 40 I needed 294x to get an SWR at 275 and now that I'm 50 I need 289x at 325 Without factoring taxes to get 60 of my gross income this is withdrawal rates of 204 at age 40 and 208 at age 50br brExample I earn 100k gross and want 60K in retirement 60k/294 million is 204 and 60k/289 million is 208 Even with some additional buffer these numbers don't make sense What did that extra 05 SWR get me I'm at 218x and 185x not accounting for taxes These numbers you used are too close together
Comment from : Pevans

Brendan Evan
Work optional status ASAP is our goal! Whether or not that’s “retirement” is TBD
Comment from : Brendan Evan

Eric Rosen
Haven't completed the video yet--- but for the 17 who retire at 60 or younger, is the break-out within worth investigating?brbrHow many of those are former police officers and fire fighters and such, who are retire in their 50s on average? IMO, separating out folks from industries where younger retirement ages are built into the payment structure might make a lot of sense here
Comment from : Eric Rosen

Replace 60? That’s crazy I want to replace 100 due to healthcare costs We don’t know where that’s going to go
Comment from : Mitzi73

Remi Tremblay
Hi guys! Are those percentages (55 = 17,2 times your gross income when working) based on the replacement income coming from governement? because if it is not, I guess we are all "not able" to retire early :-( in Canada, it's a little different, but 17 times my gross is impossible to reach for me :-( Oh well, I guess I may have work longer!
Comment from : Remi Tremblay

Ken John
I am a 13 percenter Loving it Using ACA With Roth and a brokerage account one can keep taxable income with in the limits Does the 60 include SSA at 62-70?
Comment from : Ken John

I was confused about the 60 before, but I think it makes sense now if they’re talking about your gross After you subtract the taxes your normally pay, and you’ve grown accustomed to living with another 25 of that going into retirement, you should be accustomed to living on no more than about 60 of gross income
Comment from : meh!

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