How Much do You Need to Retire in 2023? (Less than you think)

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Title	:	How Much do You Need to Retire in 2023? (Less than you think)
Lasting	:	10.51
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not sure Fred and West were the best chosen names 😥
Comment from : Crispy Duck

This is my fifth year after retirement I’ve been following the 4 rule thing, but this isn’t really how hard I expected things to be I still have about $460k outside funds in my IRA to invest in stocks Pls how do I take advantage of the market turnaround?
Comment from : Rodrigo Hernandez

I am 60 German original worked for 35y in Germany and uk my both pension will be €1200 a month😢 i have to move to a eastern European country to live on that
Comment from : Frank W

What software you using ?
Comment from : Tamer

My husband and I have started saving for retirement Never did my husband and I make more money than others in the middle class But with a $870K portfolio, we intend to retire at age 46 and 58yrs We will also like to dabble with a short-term profitable investments that could give monthly returns?
Comment from : Melindre Vaughn

Saving money isn't just about you it is about you're loved ones brSaving money isn't just about you it is about you're loved ones
Comment from : Damian Taylor

For a retired couple, I recommend no debt, no mortgage, no car payments, $500K in cash to ride out down markets, and $2M invested in the S&P 500 Draw down 4 to 6 per year depending on your needs At $2M your investments have reached critical mass where your money is making real money and will last 30+ years at a high standard of living
Comment from : Dr MitoFit

Pretty bleak video
Comment from : Home Chef

"They may reach 101 years of age which is a downside scenario" Harsh
Comment from : Caracal

Can you turn down the volume of your intro and outro music please?
Comment from : Lee Shamrock

People do not know how these options can make such a big difference Great job getting people to think about options
Comment from : Bob B

if they start going towards remote part time work it will both give them something to be busy with and also keep their investment growing while they draw out of it
Comment from : Darth Negative Hunter

Honestly, I'm not in any event kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it, Investing is a long-term game, so I try to focus on the long term
Comment from : Charlie Hunnam

How much can 40,000 pounds a year actually get you though? The cost of living must be quite low in the UK compared to Australia
Comment from : Will K

Isn't varying withdrawals based on market returns also a viable strategy? For example, withdrawing the minimum 27k in down years and 40k or even a little more when the portfolio returns well over 4brbrI plan to retire early and want to use this strategy to ensure that the money lasts
Comment from : Lincoln

Genius content I want him as my adviser!!
Comment from : The CEO

Thanks for explaining these options, this example is very close to my situation, you are a Star, might be able to Retire same time as my Husband who is 5 yrs older than me Nice x
Comment from : Sue Kay

who the f*ck is Fred and Rosie?
Comment from : jpalm23

With a state pension which is currently almost £10k so to get an ok pension for most single people they only need around £10k per year from their pension pot, so even on an enquiry at current rates you would only need under £300,000 pension pot even if you retire at 58 ish? Or are my calculations incorrect?
Comment from : Home Tech

Your videos are SO useful, James! It's fantastic that you're empowering people to help themselves better, as of course, none of this info is taught at school, despite it being so important to help navigate life well Your videos are helping to educate me on financial planning, as I was burrowing my head in the sand before, and avoiding facing it (am sure you hear this a lot)! Perhaps a different question than you might often get here I am intrigued to know which platform/software you use to make your videos? I work as a Dietitian, and am considering making some educational videos for the public too
Comment from : Sarah Gibbard

Ideally everyone should look to generate a second income outside of their daily job, these can sometimes be scaled up over time to eventually help you with early retirement
Comment from : GATEKEEPER BOXING

Rosie or her partner should be able to pay her NI contributions so she can also retire with a full state pension aswell
Comment from : GATEKEEPER BOXING

In my head the £200,000 pounds is my goal to retire at I can easily make 2k a week on that with my trading
Comment from : joe bond

I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways
Comment from : Shelly lofgren

I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways
Comment from : bobweaver72

Great video Flexibility is the key!
Comment from : Andrew Carter

I do not understand the 4 rule If you were to put your investments in the S & P index fund and get back an average of almost 10, your money would actually grow - yes?
Comment from : wildtill9

it also depends on how extravagant a lifestyle you lead
Comment from : Chris Davies

Honestly these videos are literally of public interest Great work
Comment from : Guilain Le Piouffle

Fred and Rosie? WTf? What is this 1923?brbr🙈
Comment from : Billy Rock

One of the best videos I’ve ever seen on such a topic
Comment from : wikikris

And who only has 3k at 40y Are f
Comment from : leugimrc

Hi James, IFA here, brilliant video as always
Comment from : Rhodri Evans

I'm trying to find the spreadsheet, I cant see it in the description of the video, sorry for being thick
Comment from : Peter Hughes

I am retired since 2016 when I was 64 Average guy with average blue collar income Social security and a small pension Wife the same We do fine The big secret which isn't talked about enough is that you need to be as close to debt free as possible No car debt, no credit card debt, no incidental bank loans Nice if the mortgage is gone, but if not, it needs to be reasonable Manage that and it'll be okay, unless you start dating strippers and develop a coke habit
Comment from : George K

does your model increase the retirement income in line with expected inflation
Comment from : Tom Foskett

Great video I think the another big one is to factor inflation in as far as possible as well
Comment from : Kevin UK

sales man invest in me???? HOWS ABOUT F*K off
Comment from : scott never

68 and still working in my own business can work as I like generally don't see the point in full retirement and lifestyle change and can be so boring I have noted in others
Comment from : ogriboy

I got out my clients out of the markets 18 months ago and I switched them into senior secured, asset backed corporate bonds One-year options pay 10 fixed, 2 year terms pay 11, and 3-year terms pay 12 My clients are much happier with this option rather than second guessing the markets Volatility is going to be around for while and it´s probably going to get worse before it gets better Client´s money is segregated and held in custody with Pershing (43 trillion under administration)
Comment from : Elliot Bullman

another option - move to a low cost country
Comment from : desiguy

I consider myself financial independent, but not by the four percent rule Instead I use another simple rule I invented for myself: Given that the dividends from my assets are exactly the same as the inflation rate, and given that my current expenses will be unchanged except for inflation adjustments, at which age will I run out of money? The calculation is simple: Divide your assets by your yearly expenses, and add this number to your age
Comment from : James Abber

How much you need to retire depends on a number of factors, with the most expensive being the roof over your head If you own your home and have reasonable property taxes, you can retire with a lot less than someone who still has a decade or more on their mortgage, or is renting Keeping day-to-day expenses reasonable (utilities, etc) is fairly straight-forward, adjusting expectations for your vehicle(s) also can lower your monthly costs Retiring with an understanding of the changes in lifestyle and how you'll keep those changes minimal, are the best way to figure out what you will need - there is no specific formula, you need what you need, but if you plan accordingly, you'll enjoy your retirement way more than if you just hope for the best
Comment from : Keep Calm Prep On

What is the modelling software you're using?
Comment from : Andrew Bullock

Not so sure that your life bears any resemblance to the reality for most I mean not a grey hair, and already a kitchen big enough to play baseball in!!!
Comment from : Chris Yarnold

Fred & Rosie!! Think they invested in other things within Cromwell Street didn't they?
Comment from : Ricky Watkins

It can actually be zero I could run my 2 person, 2 car household on my state pension alone Add my partners SP, and we can live comfortably How? By carefully understanding, and minimizing, our costs I do not mean frugality, I mean avoiding poor value Plus- do not believe inflation figures! Over the last 15 years, for which I have detailed figures, our cost of living has risen- almost nothingbrYes, I have savings- quite a lot Which have grown steadily during retirement Not just investment growth- our income is more than our costs (despite loving luxury holidays) I retired at 52- but should have done it years earlier People focus on income, when the true source of control is spending
Comment from : Mike M

While I appreciate some may feel they "need" £40k pa to "live", I'm not sure that's at all necessary to live a "simple life" once you own your own home Even at the absurd current prices, energy would "only" come to around £4k a year, plus food, council tax, no car to run (if you love somewhere you love) These figures people throw around seem to be aimed at those who want to live an extravagant life in retirement, as opposed to a simple one, from experience I very much doubt my grandparents spent more than a few thousand a year to live happily when they retired
Comment from : Richard Hammer

Enjoyed this video, we are on option 2 and looking at option 3 within the next two years You are so right that nothing is black and white, we might still work a little bit up to state pension as doing nothing would bore us to death 😬
Comment from : Denise Pike

Hi James,brthanks for another great vid have you got any thoughts on a recent analysis which showed that 27 is the new 4 based on more up to date market returns? the old 4 being based on old market data might not be a reliable predictor going forwards and so 27 is a more realistic figure if you wanted to never run out of money However I still agree with your suggestion that having a flexible approach is the way forward
Comment from : Philip Gallagher

Hi James, I enjoy your youtube videos and find the information helpful, would like to plug my numbers into your spreadsheet but can't see a link to it? Regards Gary
Comment from : Gary Grand

I’m glad I pulled through, despite the crises I am retiring next yr at 55 with 3 houses paid off worth 45 million One is my place of residence the other 2 properties will give me $80,000per/yr rent I will have an income stream of $20,000 per yr through my super which gives me total $100,000 a yr to live comfortably I have no debts I Hope we all retire well!!
Comment from : Maverick J

I feel retired with 300k and 7,I'm 28
Comment from : Riseroll

Don’t forget a more vicious devaluation in the pound could be on the horizon Global trade and energy policy are being turned on their heads
Comment from : MickyAvStickyHands

Best hning I did was engage a proper financial planner They pay for themselves as well as reduce risk
Comment from : Geoff Geoff

im retired at 29 with 350k invested in renting out 3 apartments ez life
Comment from : Simon Boye

First, what is wrong with work? Second, I am 60 and I have no idea what I would do with myself all day if I did not work All the things that I can imagine that would keep me active, engaged and mentally busy would cost more money than I will ever have My idea of retirement would be to stop working on Monday and Fridays so I have enough 'pin money' to play and enough 'work aggravation' to appreciate the long weekends more I plan to work in some way till I cant any more I like to work
Comment from : Douglas Hughes

Quick answer please, too much waffle
Comment from : Donald Donney

You can also move to a country with a lower cost of living Although you have to consider whether medical services are as good and if not the cost of private medical care when needed Which as you get older becomes more and more relevant
Comment from : jassonsw

Hi James I love your 4 rule I wonder how easy retirement planning is if you are on a low wage I am a teaching assistant, work full time and earn £14,500 a year I do pay into a pension but with the current cost of living crisis excess cash is in short supply I am 56 and divorced What can I do to boost my pension now?
Comment from : Mandy Adams

So sick that Americans work just to retire :D
Comment from : Anders Nielsen

Dont think its the people who want to work until they die Its the Government if they provide a pension keep pushing up the age to retirement In some places it was like 50yrs old now 65 and increasing
Comment from : r w

Take SS at 70 and start your RMD's at 72 Be smart!
Comment from : James Ripton

The problem is that most people don't have a pension Only government workers have that these days
Comment from : Uel Rogers

Here is the answer to your question You don't need anything because the government will look after you We have two private pensions, savings, and state pensions, yet we live no better than our neighbors who didn't bother to save a thing
Comment from : WATCH ALOT

In the US, the country with the 2nd highest poverty rate out of all the 34 First World Countries, the total retirement savings as the age of retirement is just $16,000 "Retirement" is not even a word that most americans know
Comment from : Mark Welch

i really think you need to consider inflation $40k this year $43k the next year and so on depending on inflation at the time
Comment from : brett smith

Hi James, thank you for this informative video and link to your spreadsheetbrI am sure you have talks about this before, but the peak in the graph around the 1920s, where you say the couple historically could have withdrawn more than 40k per year, how does this time shift factor into todays $ Values Certainly 40k even 50 years ago was a substantial annual salary!brThanks!
Comment from : L C

You should be able to retire at 65You had 45 years to save and invest ( should have learnt that in school)The only way the 4 rule would work is if you retire abroad ( away from North America) to South East Asia or MexicoHoping to have 10-15 years of life remaining according to statsIt’s not rocket science…
Comment from : Al DeiCeci

Let me cut to the chance… You will need 2 million in fixed income Best bet tax free insured muni bonds at approximately 4 That 80 grand no tax
Comment from : John Z

Men, don't get married and live minimalist
Comment from : Zack TheBongRipper

I read a great article a few years back that said you don't need as much as you think you need in retirement if you avoid all the extra travel that is built into retirement plans You don't need to take grandiose vacations on expensive golf courses
Comment from : Student Loan Chit Chat / Keri Horn

Kind of depends on who you are, where you live, how much you spend, whether or not your home is paid off and what you expect out of retirement This is kind of like saying, "Here's a pair of size 9 shoes, you should be all set!" Some people wear a 7 or an 8, or a 10 or a 12! Are you retiring in New York City, or Macon Georgia? Will you be spending your summers traveling Europe, and your winters skiing in Aspen? Or will you spend your summers gardening and your winters volunteering?
Comment from : Alan Sach

What software is this looks much nicer than voyant haha
Comment from : JJ

I checked one of my pensions and the pot seems very low If I am investing in stock only, when the stock market 'bounces back, 50 for example, does my pension pot also increase by 50 I would really appreciate an answer, if anyone can advise please?
Comment from : Shaun Whiteley

Neoliberalism throws everyone to the wolves and only the smartest, most clever, survive It's a Social Darwinist paradise and a working class Hades
Comment from : Oroborus

Before I found your videos in the March 2021 lockdown, I thought I could never retire, as even though I have a large pot, HL Pension Statement estimated only 6k PA at retirement age I did not realise this was assuming I would get a announity I now realise I should be able to retire at 57 or later if they Goverment change the age you can access you pot Keep up the great work
Comment from : James C

Thanks, makes me feel better about my personal situation Fear of running out, unknown health problems, inflation etc brI have been far too conservative, but as I age I am more confident and am spending more, including just paid £15k for a private medical problem to avoid a 2 year NHS waiting list
Comment from : John Doyle

Less than you're being told because you're old and will not do anywhere near the things you think you will once you retire You won't be able or want to
Comment from : Edwin Hermanson

Bollocks
Comment from : Gregg Butler

Good video, but one issue is you saying it's a fault of the 4 rule that it doesn't take in account state pensions, but it's up to you to adjust what data you're inputting instead of the 4 rule being the answer to everything eg instead of a $40K need adjust it down to $25K if you have a $15K pension
Comment from : pw jc

Or you could just use Firecalc and save the fees
Comment from : Jeff Wilson

Hi James, I'm 56 and don't plan on retiring for another 5 years My pension fund of 500k is fully invested in stocks The value of the fund has dropped 20 in the past 12 months Would you advise switching some of the fund out of stocks into less risky assets? Or should I sit tight and ride the storm given that I have another 5 years before retirement? Also I don't plan on drawing down for 10yrs as I have a current cash reserve of 200k Keep up the good work
Comment from : Frank B

Hi James, great video as always I’m going to try out your spreadsheet But if you speak to your rep at timeline, could you ask them to drop a retail version of their tool? They might listen to you lol!
Comment from : Luca Fraser