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How $1,000,000 Can Be Enough For Retirement

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IMO if you have $1M in assets (investments) when you retire, if you can avoid spending more than about 5 of your investment balance each your on retirement, you can make it last if you keep it invested into retirement say at 5 This will buy you some additional years in retirement, although this does not factor in other things like unexpected bills (medical bills) and taxes But on the principle that you could retire on $1M and if you didn't use more than about 4-5 per year, you could make itl ast for 20-25 years if you're careful with your expense and you have everything paid off by the time you retire
Comment from : @HR-wd6cw

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 : @MaelleShaker

If your wanting to retire, have a million in retirement and still have a house payment, you are an idiot lol
Comment from : @Robinhood179

With a due respect, 10 is a false assumption I assume 6-8 just to be safe and prefer real estate income versus equity income/appreciation
Comment from : @billsquitieri7986

This is the most liberal retirement drawdown advice I've heard 8? Conventional wisdom is 4 drawdown
Comment from : @gadfanad

Why would you only live off interest and die with $14 mil in the bank? Wtf
Comment from : @tagheuer02

Sequence of returns risk anyone? I’m actually a big fan and appreciate most everything that Ramsey Solutions recommends But every time I start hearing Dave talk about withdrawal rates…🤦‍♂️
Comment from : @keithherrin200

You just need the equivalent of to social security checks a month for 1brPerson you’ll be fine
Comment from : @Djd271

Tictak😆
Comment from : @maranpakeer

First order of math, 14 million is not 1 million
Comment from : @redmirror4012

This summarises Dave's point about the 8 rule: brbrLet’s break this down with some hypothetical mathbrbrStarting Point: You retire at 70 with a portfolio of $3,000,000brbrAnnual Withdrawal: According to the 8 percent rule, you would withdraw 8 percent of your portfolio per year, which in this case is $240,000 ($3,000,000 * 008)brbrNow, let’s consider how your portfolio would grow and how inflation would impact your withdrawals:brbrPortfolio Growth: With an annual return of 12 percent (S&P 500 Mutual Fund or ETF), your portfolio would grow to $3,360,000 by the end of the first year before withdrawals ($3,000,000 * 112)brbrAdjusted for Withdrawal: After withdrawing $240,000, your portfolio would be $3,120,000 ($3,360,000 - $240,000)brbrInflation Impact: With an average inflation rate of 4 percent, the $240,000 withdrawal amount would need to increase each year to maintain the same purchasing power So, in the second year, you would withdraw $249,600 ($240,000 * 104)brbrLet’s summarize this in a table for a few years:brbrYear Portfolio Start Portfolio End Withdrawal Adjusted Withdrawalbr1 $3,000,000 $3,360,000 $240,000 $240,000br2 $3,120,000 $3,494,400 $249,600 $249,600br3 $3,244,800 $3,633,216 $259,584 $259,584br4 $3,373,632 $3,777,668 $269,967 $269,967br5 $3,507,702 $3,927,626 $280,766 $280,766brbrbrA few key observations:brbrInvestment Returns vs Withdrawals: The 12 percent return on your portfolio should help counterbalance your annual withdrawals and inflation, keeping your savings intactbrbrSustainability: If the stock market continues to perform well, you should maintain a sizable portfolio However, market downturns can impact this balance, so it’s essential to remain flexiblebrbrRemember, these numbers are hypothetical and rely on constant returns and inflation rates Real-life scenarios can vary, and it’s wise to consult a financial advisor to create a robust, adaptable retirement plan The trick is to live off the difference between returns and inflation
Comment from : @benjamincaron46

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money I started investing with $150k and in the first 2 months, my portfolio was reading $274,800 Crazy right!, I decided to reinvest my profit and get 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 : @MattieAntonio

God she is annoying
Comment from : @AMC401

14M invested in PFE yields 646 Qualified Dividend That's more than 90K a year and they increase the Dividend
Comment from : @Sean-jb5gi

Hopefully their is a person out their with the resources to do this exercise 25 years ago in 1999 the inflation calculator say $750k is the equivalent to $1,400,00000 today please run a program that uses the S&P 500 performance and start withdrawing 8 a year in 1999 and see what we will have today Will we have 14 mill like Ramsey says or will we be broke?
Comment from : @BlitzHack

The average return is fine, but if you have 3 years of -8 growth, that 1M turns into 760k (subtract 3 years of your living expenses from that), and your 1M is cut in half, and the average interest from there would be 50k/yr on a good year, not 100k And given the cost of living rises as time goes on, it's scary Average return means very little when you are living on interest dividends alone
Comment from : @DMBVR4

I'm hoping to retire next year at 55 My goal next year is to be more serious and consistent with my investments I've been investing since I was 22 2025 is going to be more serous for me investing consistently for the long term starting to save for a house down payment I want to invest more than $105k, but I'm not sure on how to mitigate risk
Comment from : @LesterHess-t1x

Inflation doesn't hurt you as much when you are retired because you are not buying much You already have all your "stuff" Have a couple fairly new cars and a house paid off when you retire, and you nearly have the battle won
Comment from : @midwestron8576

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money I started investing below the $100k mark and in the first 2 months, my portfolio was reading $234,800 Crazy right!, I decided to reinvest a huge percentage of my profit and it got more interesting! For over a year we have been working together making consistent profit just bought my second home at the beginning of summer
Comment from : @MathewOliver486

10 return is not as simple
Comment from : @AlI-hg3xt

Sequence of return is a huge risk Assuming a $1mm portfolio that a retiree pulls 6 ($60k) off while the market goes down 30 in year one of retirement will leave the retiree $658k at the start of year two Pulling $62k off in year 2 while the market goes down 20 will leave only $476k at the start of year 3 Retirees need to hedge against unlucky sequence of returns
Comment from : @davidbodendorf8991

A 5- 6 withdrawal max
Comment from : @Zaya2499

No one is living off 10 This is some dumb advice The S&P500 may be averaging 10-12 but that does not mean it does that every year It means average over a longer period of time You need to take inflation into account as well 4 is the golden rule for a reason Nothing is perpetual, not even life itself What I would do is live off my retirement checks and complement that with some money from my investment if need be
Comment from : @orrindavies

We all are much greedy we cant be happy If we have like 400k-1million its enough for retirement forever for a good life ❤
Comment from : @YourrCristianoRonaldo

Saving in bitcoin has made my life cheaper and cheaper every year
Comment from : @brandon_gentile

With my retirement funds of $980k, l've started exploring catch up contributions and automated my transfers to make saving easier
Comment from : @sebastiaanthijn7982

I just turned 47 and awfully late to investing with barely any portfolio except my 401k, I have a decent amount of cash saved up and with inflation currently soaring AGAIN, I’m getting worried about retirement, my intention is to retire at 55 How best do I maximize my savings of over $200k
Comment from : @Raniyanhunter

Retirement becomes truly fulfilling when you possess two essential elements: ample financial resources and a meaningful purpose in life Make prudent investment choices to secure good returns and ensure a comfortable retirement
Comment from : @HectorWhitney

Tik Tok not Tik Tak Dave
Comment from : @szvqorwnpstahskypfwmp9821

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them We can get by, but can't seem to get ahead My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for
Comment from : @EmilyEvelyn-90

I love Dave and I'm working the Baby Steps Taking out 8 per year may be unsustainable If the market has down years in the first couple years of retirement, that makes a gigantic difference in your 401k I'm a Costco employee and a Costco stock and growth fund guy My returns have been amazing, especially post covid That being said, I'd never take out 8 a year as a blanket statement Some say 4, Dave says 8 I'd probably be in the middle and feel comfortable
Comment from : @ChrisSlick1

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 Husband 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
Comment from : @camille_ann3

It’s a good thing there is no sequence of return risk /s
Comment from : @halcyonity

Been quite unsure about investing in this current market and at the same time I feel it's the best time to get started on the market, heard some guy speaking of making over a million dollars from a $300k capital and I'm driven to ask what skillset and strategy can generate such profit??
Comment from : @Bako-b8j

I can’t be
Comment from : @LeoY-s4c

Assuming the clips is from 2021 since Dave made a comment about going to vote to change the economy… for the record the stock market is up 50 under Biden & Dave mixes too much politics into his comments
Comment from : @mikeswantek2502

Well if his expenses are 140k/year, with 10 ROI each year, he would need 14million invested brOr he could invest that 1mill into a fund that pays a dividend yield of about 14 Which could be the closed end fund, ticket symbol $CRF (1520 yield currently) or $CLM (1679 current yield) Whether the market is up or down, that yield will continue to payoutbrBoth funds have been around since the 1970s
Comment from : @bmore_wealthy

This guy will go bankrupt in retirment with this advice, You can tell Dave doesn't understand that if you have 2-3 years of under 10 esp at start than you are eating the principle Amazing such bad advice is allowed on social media with no repercussionsbrEven more that this guy could just take 5, $70k a year plus social security should be easy to live on so no need to tell him to go for $140kbrThat Dave tries to cover himself saying this guy can pull 10 but he's not going to so it's ok for me to tell him it's okbrWhat a fraud, go back to real estate, you don't understand how the stock market works (also the fund he lies about are BS with his 'easy to beat the market' rubbish)
Comment from : @caracal9458

Money may not grow on trees, but every investment is a seed for financial security Water it wiseIy through diverse stocks and Iong-term strategies, and you’II watch your wealth bear fruit over time
Comment from : @TinaMyles

Thank you for the inspiration I am waitress and have retired early from teaching and have grown my assets to million dollars, how did I do this?? First, I got a part-time job with health insurance and make $4500/month I also get a $1200 pension from teaching Second, I sold my family home, which was a MONEY PIT, and invested in a brand-new townhome in a growing bedroom community outside of Nashville, gained $200,000 Third, I have annuity that will pay a guaranteed amount (1/3 of my retirement) I am still investing my 401K to gain the maximum rate of return I also take 10 and invest more aggressively Fourth, I have downsized my expenses Fifth, I am so Happy and have Peace in my Life I no longer worry about violent students, angry parents, or writing endless reports You can always earn more money, but not more time Remember the Healthy Life Expectancy is 63 years old, enjoy your Health while you still have it!!
Comment from : @KaceyAnnReynolds

Not a single mention of taxes absurd
Comment from : @scottphillips7050

Most Americans find it hard to retire comfortably amid economy crisis Some have close to nothing going into retirement, my question is, do I pull cash from my 401k and buy a house, or spread my money in stocks for cashflow? I'd love to afford my lifestyle after retirement?
Comment from : @lilliankerr-z7c

I think the people who should be worried are those of us who are retiring with less than a million I have only 650k in my Roth and I don't know how to grow it
Comment from : @cloudyblaze7916

Less fake laughing by the lady please 🙄
Comment from : @kevinfitzsimons41

Its disgusting how much wealth this man has Idc how you go about it
Comment from : @Thereisalwaysbetter

I have savings of $1,000,000 and I'm ready for retirement, only concerned about the soaring inflation I want to invest in stocks hence I'm thinking of some long/short term strategies whats the best way to do this?
Comment from : @CadeCowell-ft4fe

Live off 8? Huh?
Comment from : @MrWarrenRB

I still need to work about 20 years, by the time I retire, I think I need about 2 millions in order to retire comfortably
Comment from : @chatchat9242

12 average returns? Buffett has not achieved that, he is full of it 😂
Comment from : @bigmoose143

10 interest is not possible Show me any bonds or CD that return 10? Now the stock market return rate is near that, but that is not no risk interest!brbrYou are making some assumptions Probably you will be okay, but there many possible futures that cannot be controlled or predicted Hence the need for probabilistic models and not deterministic models
Comment from : @goldgeologist5320

To achieve a secure retirement, aiming to save at least 15 of your income in a 401(k) is advisable Online tools can assist in calculating the best savings strategy for you, considering factors like age and income Consistently saving this percentage can help build your retirement fund effectively, thanks to the benefits of compound interest
Comment from : @MarcelinaMakowski

You only need to know one thing to answer this question "What are my expenses" If you know that number, you can easily determine how much you need at what rate to sustain yourself Example: Don't forget two things, Social Security will pay a portion (Yes it will be there Dave) and you will spend LESS not more as you age
Comment from : @JC-21470

I am currently in my early 40s and This is no time to taper retirement savings I want to max out my retirement funding and I also have another $200k in a savings account that i want to invest in a non-retirement accountWould it be better going to housing? Maybe own property and let it till im ready to move in at 65
Comment from : @AnnieHolsen

This assuming we don't have a dollar collapse
Comment from : @stealth210

tic-tac??
Comment from : @hockeymom2592

Why do you guys say 10 dividends to live of off but all the other advisors say dont take more than 4?brJust wondering what to believe so i dont screw myself?
Comment from : @tdp-sir

Everything Dave Ramsey says is simple It’s the same thing anyone with common sense would tell you Buy his book so he can be richer and tell you nothing special
Comment from : @ksduathlete

With a good investment plan that ensures steady incomes without any doubts you can prepare for a well organized retirement I started investing in stocks 3 years ago and so far, I am making a good yield on my portfolio built on top etfs, blue chip stocks and dividends as well Managed by my FA who helped me grow to a 7 figure portfolio I love passive income Credits to my FA Dianne Sarah Olson
Comment from : @nataliehinnes5221

If you're investing in growth funds, you're not living off interest You're selling to fund your retirement That's a great way to go broke if you take 8 a year You don't make 12 every year It's an average When there's a year that the market is down double digits and you take out that much, you're selling when the market is down which eats into your savings more Dave doesn't know basic math
Comment from : @Andrew-it7fb

Who is making 10 come on!
Comment from : @overthechemtrailsky5930

Park at all in schd , get that 35 dividend income plus capital growth
Comment from : @davetichenor7226

10 that’s not accurate You’ll run out of money You don’t wanna run out of money
Comment from : @davetichenor7226

Ramazai gives them the tough love that they're craving !!
Comment from : @charlesedwards4160

I came across your channel through this video—case studies are incredibly valuable, and I'm eager to see more in the future! Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments
Comment from : @Frankloredo-z9p

There is not a 10 rate of return, how?
Comment from : @metrorealty7631

And what happens when one year the market returns say -5, but you still withdraw your 10 therefore you have depleted the account by 15 in one yearbrThis is dangerous advice and a 10 withdrawal rate is way too muchbrWith 14 million in a portfolio withdrawing 10 per year, I would be surprised if the account would even last 20 years Before being empty
Comment from : @Leeandemma88

Is average return not wildly different from actual Talking the impact when you keep taking say 5 in a falling market
Comment from : @dominic8218

The market trend can turn around very quickly In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?
Comment from : @shirelylinero