How Much Do I Need to Spend $10k/month in Retirement?

Описание: Planning for retirement can be daunting, filled with anxiety about having enough money. John and Jane, a couple like many of you, transformed their retirement fears into a secure future, living on $10,000 per month. Here's how they did it.

Facing Retirement Anxiety:
John and Jane feared running out of money in retirement, influenced by their parents' struggles. Determined to avoid this, they aimed to either enjoy retirement or live frugally but worried about overspending or missing out.

Before planning, their finances included:
-John's 401(k): $1,000,000
-Jane's 401(k): $700,000
-Joint Investment Account: $320,000
-Home with a mortgage balance.

They assumed a 7.2% annual growth rate pre-retirement and 6.5% during retirement to guide their plan.

Setting Retirement Goals:
At ages 62 and 60, they aimed to retire at 67 and 65, spending $10,000 monthly. John planned to delay Social Security until 70 for $3,900/month, while Jane would collect at 67 for $3,100/month. They both contributed 10% of their salaries to their 401(k)s, with a 3% company match.

Cash Flow and Expenses:
In retirement, income would shift to Social Security and investment withdrawals. They ensured their portfolio could sustain their lifestyle, adjusting for inflation.

Mortgage and Tax Strategies:
Their mortgage, with three years of payments left, was factored into their plan. Effective tax planning, including Roth conversions and charitable giving, helped minimize liabilities.

Withdrawal Rates and Portfolio Sustainability:
An initial withdrawal rate of 4.5% would drop to 1.5% once both received Social Security. Their portfolio was projected to grow, ensuring sustainability.

Exploring Enhanced Spending:
They explored higher spending scenarios up to $14,000/month, maintaining a comfortable margin for enhanced spending.

Finalizing the Plan:
John and Jane decided to retire at 65 and 63, allowing $11,000 in monthly spending. They optimized investments, tax strategies, and ensured proper insurance and estate plans.

John and Jane's journey shows the power of comprehensive planning, providing peace of mind and financial security for a comfortable retirement.

=======================
Learn the tips & strategies to get the most out of life with your money.

Get started today → https://www.rootfinancialpartners.com/

Get access to the retirement software I use in this video and more → https://retirement-planning-academy.m...

🔔 Make sure to subscribe here to be notified for future videos!
   / @rootfp  
_ _

👥 Make sure to connect with us on all socials below → https://beacons.ai/rootfinancialpartners

⏱Timestamps:⏱
0:00 - John and Jane
2:09 - Goals and income
3:59 - Cash flows
6:12 - Making a tax plan
7:30 - Portfolio withdrawals and analysis
9:58 - Optimizing success
12:14 - Takeaways
13:39 - Considering possibilities

Other videos we think you'll like:

About Root:    • Financial advisors with heart.  

Worried about retirement?

Start here:    • Worried About Retirement..Start With a Bla...  

--
Advisory services are offered through Root Financial Partners, LLC, an SEC-registered investment adviser. This content is intended for informational and educational purposes only and should not be considered personalized investment, tax, or legal advice. Viewing this content does not create an advisory relationship. We do not provide tax preparation or legal services. Always consult an investment, tax or legal professional regarding your specific situation.

The strategies, case studies, and examples discussed may not be suitable for everyone. They are hypothetical and for illustrative and educational purposes only. They do not reflect actual client results and are not guarantees of future performance. All investments involve risk, including the potential loss of principal.

Comments reflect the views of individual users and do not necessarily represent the views of Root Financial. They are not verified, may not be accurate, and should not be considered testimonials or endorsements.

Participation in the Retirement Planning Academy or Early Retirement Academy does not create an advisory relationship with Root Financial. These programs are educational in nature and are not a substitute for personalized financial advice. Advisory services are offered only under a written agreement with Root Financial.