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60 With $1 Million How Much Can I Spend In Retirement

Kevin Lum, CFP® 90 views

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But the 4 rule says you only withdraw 40K a year? That is 3333 per month
Comment from : @ceeIoc

Seems like both are useful Monte Carlo to show probability of success & dynamic to show what is necessary to make it successful if everything isn't peaches & cream
Comment from : @jamescorriveau6121

Security isn’t guaranteed ever, but we can control what we can In my opinion, all of this is just word salad which isn’t helpful but just a sales pitch Our focus should be on building connections with family / friends and living better than playing games with a calculator, guessing your life span, and gambling on what the market may do
Comment from : @Al-mk4xl

I like the dynamic income strategy Our numbers are very close to this example
Comment from : @micheleyoungblood

Are these monthly amounts after tax?
Comment from : @joeyn7399

I really like that dynamic spending analysis I had never heard of that and feel that would be a comforting tool to have
Comment from : @scotcrawford2903

Just turned 55 … and just started thinking about this Am near these numbers but have no real idea of the “exit strategy” Have never found a financial person I trust Just tried to do what seemed best
Comment from : @robyates136

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money I started investing with $120k and in the first 2 months , my portfolio was reading $274,800 Crazy right!, I decided to reinvest my profit and gets more interesting For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family
Comment from : @MeirPamela

I wish I could get access to the Income Lab product directly :( Rather than through a CFP
Comment from : @christophermerrill3859

If you accumulate 1M in net worth i would think you don't need anybody's advice Unless it was inherited wealth
Comment from : @czrider3999

Dynamic I like the concept of peace of mind
Comment from : @genconex

I’ve watched a lot of Kevin’s content and at 50, I’m currently sitting at a bit over 12m between my traditional 401k and personal/taxable account That’s excluding my condo (in NYC, so condo living is quite normal) and pension that my company still has (hallelujah! lol)brbrI don’t have a car, am single with no kids so I’m able to save quite a bit I’m so glad material things don’t mean much to me - other than gadgets I always buy a new iPhone every year and have amazed more computer parts than I care to admitbrbrI think I’ll be ok Thank you, Kevin for all the advice you provide the people You’re a good egg
Comment from : @LiesureSuitLarry

I like that how much can I spend a month approach
Comment from : @kvnlilly

"Retirement isn’t an end goal, but a journey best secured by careful and consistent investments"
Comment from : @CharlotteNoah3

Wow, this is the way to do it! It makes so much more sense I don't have heirs and want to "die with zero" I've just started doing a plan with a Fidelity Advisor - who talked me into getting an immediate annuity (25 of my portfolio) to cover my fixed cost This will allow me to invest more aggressively in my portfolio I think I'm OK with the decision (haven't signed contract yet, and am selling holdings to get the lump sum cash) It will be nice to start to get a monthly paycheck deposited into my account But I still have no clue how much I can spend monthly / yearly within my portfolio That would be so interesting to know!
Comment from : @alisab63

We are fortunate to have a number of pensions coming in (two federal, one military, one small social security and one social security still pending, we still save every month though been retires for years The only money coming from savings was for a new roof that will be good for decades We hate spending money, don’t spend much, and don’t even travel much because we live by the beach in SoCal I feel my saved money is for my kids to inherit for their retirement since it is hard for them to save for that with their expenses
Comment from : @ChiTownGal-u9e

I'm 62 Selling my rental property and don't know what to invest in I should net around $13 M, but don't know if that's enough for me and my wife
Comment from : @kevinkoestler

New here, and thank you for the videos I have been retired for 2 years and honestly my fear at the beginning arose from my planner expressing shock that I was quitting “early” (age 67) I think for a lot of us boomers, we have a fear of the next crash and what might happen to SS This model addresses the crash I’m still happy that I’m very comfortable not spending down my fund The big question I face is will I be happy drawing it down for big trips because I do love to travel The huge takeaway for all the young ‘uns is SAVE and live below your means
Comment from : @bcloetta

I’m 64 - similar situation
Comment from : @audiotomb

I don’t see in the comments and didn’t hear in the video if you talk about the anticipated duration of retirement Obviously the longer you’re in retirement the more the numbers are gonna be affected What is the assumption of years in retirement for your modeling?
Comment from : @jkendall6835

Thank you Kevin! I told my boss my "I quit" as my FA told me I could 😊 Seriously, I have been fortunate to develop a strategy to earn $5-6K/month, day-trading, to prevent spending down retirement savings and defer Social Sec payments
Comment from : @bknapp9728

I am so confused, you have them pulling 8-9 percent out per year? That makes zero sense to me
Comment from : @28jonmark

Dynamic Income Strategy makes much more sense because it allows you to budget along with the changes in your portfolio just as you probably have been doing during your work life as jobs and family costs changed over time😊
Comment from : @JohnMeyers1127

I believe it would help me decide I will soon be 64 and have a problem deciding to retire early
Comment from : @mikemecklenborg5412

Yes a dynamic income strategy would help me in retirement ad my biggest fear is running out of money due to real inflation and the ability for my investments to keep up with real inflation
Comment from : @davidcronkhite1392

you’ll be fine
Comment from : @jimhayd7857

if you are 60 years old and have a million dollars and social security (at age 62) YES YOU CAN RETIRE !!!!!!!!!
Comment from : @jimhayd7857

the upper and lower bounds are really helpful - much more practical view of retirement viability
Comment from : @edfody5369

look its real simple you can spend your dividends accounting for taxes
Comment from : @PatThurman

8k a monththat's strippers and coke
Comment from : @TheBryanmauro

I’m 51 looking to retire, while I am comfortable with a Monte Carlo simulation, the feeling is the visualization is much easier to grasp and my wife would find a lot of comfortable with visual range limits Especially when adjusting variables and watching a result change rather than just a percentage on the dial 10 years to go…Thanks for this
Comment from : @cwilson6880

Can you please more of these on SINGLE RETIREES? (majority of older women in US, I believe)
Comment from : @eugeniebreida

Like always if you make $1M and you spend $1M and $1, you are broke
Comment from : @EdA-bz3bu

Could you do this for 50 yo as well? Same numbers Thanks! Good stuff!
Comment from : @ckg145

Cool That is what the Germans thought too, in the early-1920's "If I have a million Reichsmarks, I can live like a king forever"brbrMe: 😮
Comment from : @ralphbernhard1757

In the last example, the income lab example, after n years of retirement did the $ go up or down Worded another way, after 30 years did I start using principle? I want to spend down my money, use a good share in the early years, the front of the smile? I don't want to leave too much on the table and regret not really getting the most from my early, more energetic, years
Comment from : @philipwalsh786

How safe is Right Capital? Is it tied to China and if so, how do you know that information used in the program won't end up in the wrong hands??
Comment from : @ron9665

I love this content, but it would be nice if Claire made more money or had more money in her accounts I feel like these examples always reinforce stereotypes
Comment from : @Voorhell

Income Lab doesn't integrate with Vanguard as far as I can see (Plus it's hugely expensive!) Are there other alternatives with dynamic income strategy? Or a way to sort of simulate it using New Retirement?
Comment from : @GeorgeKlenkar

Will this be available to the pubic like NR or just planners?????
Comment from : @asandrik3124

Buy and hold doesn’t make much sense to me in retirement You need a dynamic investment strategy
Comment from : @paulturner4419

what are the number of years did you use
Comment from : @MerryHampton

I would like to use both tools—Monte Carlo for initial assessment of when I could retire and dynamic spending analysis for periodic review to make spending adjustments during retirement
Comment from : @Rewire-Retire

Well, one million
Comment from : @merlesson1164

Love the dynamic income strategy, especially if you could adjust it to report quarterly or semiannually amounts and just run withdrawals 3-6 months behind
Comment from : @slcea7

You can spend 1 million 🙂
Comment from : @LR-jk2jk

This is very insightful Dynamic income strategy definitely provides better clarity in planning for retirement
Comment from : @pinghodges8440

I like the dynamic income retirement plan
Comment from : @suerawley3141

At 4:27 it went to 80 but Clair’s retirement age jumped to 60 from 55 It wasn’t just the spending model change
Comment from : @RescueDiver805

Why do you say…”a little bit of social security”? It looks to me to be about 60 of their desired income
Comment from : @tfrank717

I like the dynamic starting out with assets and telling me how much income would likely be as a starting point Both models seem very helpful, though
Comment from : @joel6359

Derek Tharp's research is very under rated Bengen < Guyton < Tharp Good to see him start to get his due reward!
Comment from : @RandHall

I’m 57, $900k in 401k, Roth IRA and HSA investments combined I contribute the max to all and even add to my wife’s Roth IRA at max I want to retire at age 60 but my expenses will be higher to purchase healthcare on my own and at age 63, I plan to move to Florida, which although has less tax, we will have a mortgage as the homes are far more expensive I know these tools provide you the amount you can spend, but keep in mind your expenses now may not be what they are in retirement and that needs close examination if you wish to do more in retirement than you are doing while working That said, I plan to work a bit longer to age 61 if I can hold out to increase my contribution, lessen the withdrawal and lessen the increased expense of healthcare I would otherwise need to pay out of pocket
Comment from : @timlincoln2246

How frequently would I adjust my withdrawals under the dynamic retirement plan - quarterly, every 6 months, or annually?
Comment from : @garywood9119

This is a great update that all retirement planning tools should implement For years, the portfolio growth has been developed as a variable, but the spending estimates have always been fixed Just as edits to the 4 rule are beginning to be discussed, the industry is beginning to recognize this flaw and matching it to real world behavior When the markets turn down, people tighten their belts
Comment from : @MarkB-hd1ur

I'd like to see both I have a scheduled convo with my cfp about this very topic Seeing both ways is quite useful for those of us needing to see alot of data sliced and diced different ways to feel comfortable
Comment from : @csparks9602

That Income Lab software looks really goodseems like a much more realistic model Please do more demos with that Thanks!
Comment from : @amyw9477

The Income Lab software seems more relevant to typical behavior Therefore, extremely useful for year to year max spending decisions From your videos, it seems that RightCapital really helps with tax planning/order of withdrawal decisions So there is probably be a place for both tools Your videos are great - relevant information in a short amount of time! Thanks
Comment from : @DanF300

Like many complex topics, the details that can impact forecasts and outcomes are often obscured, unless they are exposed The Income Lab approach of presenting optional scenarios dynamically seems more helpful and at the least, provides insight on topics that may not have been considered by the Monte Carlo approach
Comment from : @garyciuzio9479

My net worth is 18 MM and I am planning to work until I am 75
Comment from : @PanosaoVento

The dynamic income strategy sounds much more realistic
Comment from : @williamloux

If they’re 60, that can’t draw social security yet, right? Won’t Phil & Claire have to wait until age 62?
Comment from : @ReneeDennis-x8h

This makes so much more sense to my brain!!! I’ll be talking to my financial planner about it
Comment from : @jessicadufort8762

Hey Kevin, great comparison between the tools Looks like boys at Income Labs have a bit more a dynamic approach to expenses than right capital That's fantastic stuff
Comment from : @HeritageWealthPlanning

Very good and useful video I will subscribe to learn more
Comment from : @liveandretireusa

I thought Phil and Claire lived in California?
Comment from : @rickstephan6707

There’s no one right answer What’s your budget? how responsible are you with money? What’s your goals in retirement?brbrYour risk tolerance is the most important variable If you’re stuck to just bonds or even a heavy bond mix, you’ll need more moneybrbrYou also need to have a flexible budget so you can pull back in down yearsbrbrMost people spend less the further into retirement they get
Comment from : @chrisforker7487

Owen Wilson gives advice 😂
Comment from : @BlearyBoy1

How can it recommend spending $8k/month ($96k/year), which is almost 10 of the total portfolio?
Comment from : @vchap01

I vote for the dynamic income retirement plan
Comment from : @golfinginthailand

I love the idea of a dynamic income strategy The Monte Carlo numbers don’t really give me a real sense of what will happen Only a of success I’d rather see the whole plan in action in the way that you demonstrated incomeLab work I do have a financial advisor and use new retirement and feel great amount my current retirement plans That said IncomeLab’s approach is very interesting and I do love to learn more!
Comment from : @cduff4505

I would like a mix of both Also, it would be helpful if the client could receive monthly estimates for the following month Perhaps that feature already exists
Comment from : @jeffk4449

Phil and Claire Dunphy sound like a "Modern Family" LOL
Comment from : @johnhbackensto5416

So I went to Income Lab's website, and started to read the articles and the links And it gave me a little insight in the thinking of CFPs But there are several things that I don't understand First, why when faced with a client that either a monte carlo analysis, or the guard rail analysis shows that a client could spend more, do you feel it is a goal to get them to spend? Why not just let them live the life they are planning and used tobrbr Also, why if someone comes with a target budget that says they need $8,000 a month, and between, both their own , and the spouse have $6,000 of social security, and already dividends of $1,000 a month, do you start with a 60/40 equity to fixed income split (no matter the size of the portfolio) Shouldn't you have a least one set of guidelines for those that are likely going to need to draw down the portfolio and for those that likely wont brbrIt annoys me quite a lot when financial planners keep telling people as they get older to migrate their portfolio to fixed income, when in MANY situations, and times that isnt a smart thing to do I know it doesn't make sense in my case And a couple of years ago when the Fed rate was around 25 it didnt make sense either (what did they expect to happen to portfolio's when rates went up? NAVs to go up too?)brbrbrAnyway thanks for bringing to my attention this new modeling tool Wish I could put my numbers into it But doesn't look like I see a way to do that (I will just stick to my 99 prob on New Retirement and accept that the portfolio will grow into 8 figures pretty soon )
Comment from : @buyerclub2

You could spend a lot more two years ago than you can today!
Comment from : @norvinhornberger3510

I thought the title indicated a single person not couple, but thanks for your insight video It is helpful
Comment from : @toantruong7901

I think Kevin you must have gotten Phil and Claire mixed up exactly with my wife and I Same data! This is absolutely fascinating I really like that dynamic analysis much better than the typical Monte Carlo analysis This makes perfect sense To me I really think spending in retirement needs to be a year by year analysis based on markets and your need for funds I really appreciate your insight and videos Keep up the good work!
Comment from : @2025Retiree

This is the Monte Carlo simulator easy to find online
Comment from : @juliebecker5238

I'm turning 61 soon and my net worth is about 12 million I don't feel remotely safe to retire anytime soon I plan to work until 67
Comment from : @OroborusFMA

The dynamic income retirement plan sounds much more useful
Comment from : @ps4402

What if u live til 100 years old will you run out of money?
Comment from : @jacari2159

I think Income Lab could be a different way to look at it and how to adapt as the market/investment performance changes Interested on your thoughts on New Retirement software I like Right Capital
Comment from : @PorscheSpeedster-kz6nc

This is very helpful Knowing what one can afford based on an amount invested to date is definitely a good way to look at it The model explained is definitely more realistic and thus useful Thanks!
Comment from : @videosabia