YTread Logo
YTread Logo

Sample retirement plan for 50 year old getting late start.

Sample retirement plan for 50 year old getting late start.
hey Dustin Timothy a financial advisor with jazz wealth managers how are you today hope you're having a good day well I saw an article actually a friend sent it to me miss Carolyn down there in Fort Lauderdale she said take a look at this article it says nearly one-quarter of Americans say they

plan

to never retire it's interesting so there was a poll done here by The Associated Press snor see Center for the public's affair Research Center sounds official right so they said that 23%
sample retirement plan for 50 year old getting late start
of workers and 2 in 10 people over the age of 50 said that they never expect to stop working right so 23% of everybody but then if you break it down by age 2 and 10 people that are over the age of 50 think that they will never have to stop working I like it that's ambitious I like it right so it's not realistic you're eventually going to get hurt sick slow down right we all age and so you're eventually gonna have to retire if you look at the recent the government jobs data a
number I can't think of what just don't know why I said it that way but one in five people over the age of 65 are currently actively looking for a job so it's not that everybody's just saying I you know I'm gonna work forever one in five actively looking for a job so what I thought was how do we elaborate on this and help those that are saying I'm not going to stop working because I don't have enough money to stop working how do we come up with a

plan

for someone
who's 50 and says you know what I took that questionnaire and I said I don't

plan

to stop working but what they didn't tell you is it's because I'm broke I don't have that much money got a little 401 K and maybe I'll get some Social Security I don't even know if I'm gonna have enough here we go let's dive into it here so I'm gonna try to explain this a little bit cuz this is very similar to the video I did a twenty eight dollars a week or whatever gets
you to the the you know the six hundred and some thousand dollars and yeah you get to live on $80,000 a

year

the rest of your life highly misunderstood video by the way so I'm gonna try to expand on that today here we go we're going to say we've got somebody who is 50

year

s old they were a participant in that questionnaire and they said you know ya can't retire cuz I don't have enough money we are going to say that because of that if we poked and prodded and said okay but if
you had to retire when are you going to retire give me an idea of when you would actually stop if you knew you had enough money that you could stop and let's say that person goes well I have 70 right so I've got 20

year

s left that's us that's the number of a person that says I'm gonna work a long time right so we're saying all right if you could retire you can retire at 70 all right you're 50

year

s old now how much money do you currently have in any investments 401ks
IRAs royalties equities in a home or rental property anything that you have we're just gonna say it's fifty thousand dollars this would be on the low end don't kick yourself if you don't have fifty thousand dollars I'm just using an average here just to sort of go about about this all right because you're 50 and you haven't saved a whole lot how much would you like from the age of 70 in today's dollars how much money would you like to live on from age 70 to say 87
sample retirement plan for 50 year old getting late start
we'll assume you pass away at 88

year

s old or whatever what is that number now most people when they're older and they haven't saved a lot of money they tend to shoot a little bit low so I'm gonna say that $40,000 a

year

would do the trick in terms of income right always calcu

late

your number in terms of income just saying I am gonna save up a million dollars doesn't help anybody right I'm gonna show you in a second why it doesn't really matter anyways okay we have
50,000 we'd love to have 40,000 we think we're gonna have to work forever but Dustin if you're gonna work some magic I guess I'll retire at 70 okay Social Security if you've already worked your whole life and you

plan

to work forever is well anyways how much in Social Security do you expect I'm gonna shoot low here and I'm gonna say $20,000 a

year

in Social Security right some of you may think that's high I have to use an average I got to pick something right so
I'm gonna use $20,000 a

year

now I'm going to say that this we're just gonna call this other income right I always do it in all these videos you can count some of it as social security some of it can be rental income maybe your kids are gonna give you $100 a month or somebody's paying you something either way I'm going to assume that that is taxable just to make it a little bit harder on you and I'm gonna say it's taxable at 25 percent maybe none of it's taxable I
don't know whatever this $20,000 is I'm going to assume it's taxable at 25 percent to make this equation a little bit harder on you all right so far so good right 50 to 70

year

s old we've got 50,000 already we expect or would love to have $40,000 a

year

in income we're gonna say that we have 20,000 expected from other sources Social Security whatever blah blah it's all taxable I know right don't kill me below just we're gonna use 25% stick with me here and
we're gonna say you're 50

year

s old now you've got 20

year

s until you retire you can invest in such a way where you're shooting for 7% growth here's the kicker I'm about to spit out a number to you and I'm going to suggest you adjust that number for inflation as you go right so this 7% is extremely low with the way we're calculating this number I will try to explain so you don't hurt me all right okay here we go so in this scenario if we do it this way this 50

year

old has to save in the next 12 months from today the day that you're watching this in the next 12 months they have to save six thousand four hundred and eighty one dollars somehow to get

start

ed that's not so bad right all of a sudden you look at that and you go okay well I thought I'd have to put away tons of money turns out I've only got to put 64 81 here's the kicker you're not gonna do that every

year

you are going to raise it by 3% a

year

or whatever inflation
sample retirement plan for 50 year old getting late start
is if it's 2.2 yay if it's 4 yay or not yeah but whatever it is you're going to raise it by inflation what does this do you know how they say the stock market S&P averages nine point eight percent return over its entire lifespan the average returns nine point eight percent if you to take it from literally day one until last December of last

year

nine point eight percent that's what dividends and everything everybody says seven percent because they're like up back out some
inflation right and then just sort of round down let's call it seven percent if we factor inflation along the way we no longer have to back out inflation we could put that number at nine point eight percent if we wanted to in the twenty eight dollar a week video I said ten percent returns now I thought it was a little high I don't ever like to shoot at the top of the number there but could you you absolutely could and be perfectly fine in doing that if you factor inflation along the way
I love doing it this way because we know what inflation is as it happens we can't guess what its going to be in the future so this makes for a much tighter number so anyways this person at 50

year

s old can afford to be aggressive but we're lowering that number just so it makes the equation harder they have fifty thousand dollars already they want 40,000 a

year

we're gonna get twenty thousand from somewhere else and to make it harder we're going to tax it at 25 percent so that
this number is actually higher we now have to put in 64 81 in the next 12 months we've got to raise it each

year

by 3% someone should bug you to do that or whatever inflation is you got to raise it and when this person gets to

retirement

they would have put in a total what's the 166 thousand I'm not gonna write it cuz I'm out of space there to put in a hundred and sixty six thousand dollars in total contributions including the money that they already had they will have check this
out when they get to

retirement

in future dollars right they will have a total of 551 to 93 that's it and I don't say that to be disrespectful I say that because do you notice how many people say you have to save a million dollars two million dollars oh my gosh you're never gonna get there that makes you feel pretty bad about yourself here is a example of someone who took this questionnaire and write and they're like I'm never gonna stop working and we were able to pull them
out of this dark cloud of life that thinks they're never going to be able to stop working and say hey if you want to retire at 70 you to put away 6480 $1 you know what happens when you tell somebody that they go WOW I mean I think I can do that not everybody can but to go you know I think I can do that and then they go hey Dustin what if I want to retire it's 68 right now we're thinking now they're positive and they're going this is a real opportunity I may not have to work
the rest of my life okay Dustin runs 68 everybody that joins us here at jazz wealth I run you through these numbers and of course we could play with them as many times as you like but let's do 68 so if I change the number to 68 the newness up here the

retirement

age goes to 68 now all of a sudden instead of 64 81 it's not that bad you get a total of 88 26 I don't have to write it you got you know what I'm doing right 88 26 so we went from 66 81 to 88 26 also not too bad if
you're serious about it and you're really gonna try to sock away some money take a little tax return money take a little bit of savings you know what I mean you're gonna go for it you have a 401k at work a lot of that's gonna be taken care of for you if you make 40,000 already and you get a 3% match that's 1,200 bucks plus 1,200 bucks there's $2,400 knocked off right there so just I wanted to kind of share with you that you know I get why people answered the survey the
way they did if we could all just have old Dustin calcu

late

the number for you or your financial adviser whoever you're working with oh what a weight that lifts off your shoulders you realize what's possible and what is maybe wishful thinking or where you need to tweak your number a little bit that's all I have for you okay I just wanted to share that with you I like to keep things positive on this channel and I saw a pretty negative article and thought well how do we make people
feel like there's a possibility here and that's how I did it today if you liked it maybe you'll hit the subscribe button or thumbs up button that does something when you hit the thumbs up button or thumbs down either way is okay with me we'll be back

late

r we're going to do the closing beat show every day 5 o'clock we do a stock market update show we put a lot of attention into it and sort of a lot to go over what happened we your investments and if you have questions
about any particular investment that had a good or bad day we're happy to help you there as well so I hope you'll check it out live on the YouTube channel jazz wealth at five o'clock why should you choose jazz wealth as your

retirement

or long term investing service our portfolios are managed by us not some faceless mutual fund manager our private classes will teach you everything about investing and

getting

your dough straight best of all our fiduciary standard means your best
interests comes before ours