Haven't Yet Saved a Million. Can We Still Retire Early? - 520

Summary

Your Money, Your Wealth - Episode 520: "Haven't Yet Saved a Million. Can We Still Retire Early?"

Released on March 11, 2025

In Episode 520 of the acclaimed podcast Your Money, Your Wealth hosted by Joe Anderson, CFP®, and Alan "Big Al" Clopine, CPA of Pure Financial Advisors, the hosts delve into the pressing question many face: "Can you still retire early even if you haven't yet saved a million dollars?" This episode features multiple listener scenarios, offering tailored advice and strategic insights into early retirement planning.

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1. Martin and Katerina from Green Bay

Profile:

• Ages: Martin (44) and Katerina (42)
• Location: Green Bay, Wisconsin
• Assets: $767,000 total (including brokerage accounts, retirement funds, Roth IRAs, HSA, and inheritance)
• Debt: $50,000 mortgage
• Savings Rate: 27% of annual income, augmented by employer contributions totaling $44,828 annually
• Retirement Goal: Age 58 with an annual post-tax expenditure of $90,000
• Inheritance Expectation: Up to $500,000 in the next 10 years

Discussion: Martin and Katerina are keen on retiring at 58 but are uncertain if their current savings trajectory will suffice. They rely minimally on Social Security, hoping for an inheritance to bolster their brokerage account.

Key Insights:

• Inflation and Savings Projections: Joe and Big Al emphasize the impact of inflation, estimating the need for approximately $3.7 million to sustain a $90,000 annual expenditure in today's dollars by retirement.

  Big Al (04:17): "He’s about $30,000 short. It's close, though."

• Investment Growth Assumptions: With a conservative 6% return over 14 years, their projected savings would reach $2.7 million, indicating a shortfall.

  Joe (04:04): "So he needs $3.7 million."

• Diversification and Saving Practices: The hosts commend Martin and Katerina for their disciplined savings and diversified investment approach, especially their consistent contributions to both retirement accounts and brokerage accounts.

  Joe (07:19): "I like the fact you're disciplined enough to put money into a brokerage account. That's very uncommon."

Recommendation:

• Adjust Savings or Retirement Age: To bridge the gap, the couple might consider extending their retirement age slightly or increasing their savings rate.

• Inheritance Utilization: Strategizing the inheritance to maximize investment growth or reduce debt can further support their retirement goals.

  Big Al (05:56): "Maybe if you really do want to retire at 58, then maybe you get a part-time job."

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2. Piggy and Kermit from California

Profile:

• Ages: Piggy (50) and Kermit (57)
• Location: California
• Assets: $5.25 million total (including brokerage accounts, Roth IRAs, pre-tax IRAs, 401ks)
• Income: $350,000 combined pre-tax (self-employed)
• Expenses: Approximately $200,000 annually, including significant out-of-pocket costs for healthcare, dental, and children's activities
• Retirement Goals:
  • Piggy wants to retire immediately to spend more time with their children and pursue personal interests.
  • Kermit contemplates part-time work to offset expenses.

Discussion: Piggy and Kermit aim to retire early to focus on family and personal well-being but are grappling with high annual expenses and the desire to leave a substantial legacy.

Key Insights:

• Distribution Rate Analysis: With $5.25 million in assets and $225,000 in annual expenses, the implied distribution rate is approximately 4.3%.

  Big Al (14:18): "At 50, 57, but that's not..."

• Pension and Social Security Contributions: Incorporating pension income and potential Social Security benefits indicates that their financial foundation is robust, albeit tight considering their high spending goals.

  Joe (15:56): "If you don't spend more than $200,000, you're going to be fine."

• Self-Employment Considerations: The hosts suggest leveraging their self-employed status to potentially hire help, enabling a semi-retired lifestyle without fully relinquishing their income streams.

  Joe (14:58): "Maybe that would be a good way to go."

Recommendation:

• Spending Adjustments: Reducing annual expenses from $225,000 to closer to $200,000 can enhance financial security.

• Hybrid Work Models: Maintaining a part-time presence in their business could provide additional income and flexibility.

  Big Al (16:09): "I think they should spend closer to 200. I think they would feel safer with that."

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3. Galahad and Zoot from Chicago

Profile:

• Ages: Galahad (56) and Zoot (52)
• Location: Northwest Suburb of Chicago
• Assets: Approximately $600,000 combined (including traditional and Roth IRAs, 401ks, and brokerage accounts)
• Income:
  • Galahad earns $140,000 annually.
  • Zoot is eligible for a $145,000 transferable pension and plans part-time work post-retirement.
• Expenses: $15,000 monthly ($180,000 annually)
• Debt: $50,000 in loans and credit cards (aiming to pay off over five years)
• Retirement Goals: Retire around age 62 with plans to sustain $200,000 annual spending post-tax.

Discussion: Facing potential early retirement due to uncertainties in the tech industry, Galahad seeks advice on whether he can retire at 62, possibly with part-time work, while ensuring financial stability for his family.

Key Insights:

• Spending vs. Income: The couple's desired $200,000 annual spending exceeds their fixed incomes, necessitating substantial reliance on investment withdrawals.

  Big Al (23:59): "They want to spend $200,000 a year... close to 10,000 a month."

• Distribution Rate Concerns: A 4.8% distribution rate is considered high, especially when accounting for Social Security and pensions.

  Big Al (28:51): "But I think they should spend closer to 55, 60 grand."

• Tax Implications: Emphasis on tax-efficient withdrawals and the strategic use of Roth conversions to optimize taxable income streams.

  Joe (41:17): "What's the tax bill going to be on the income that you need?"

Recommendation:

• Adjust Spending Goals: Reducing the annual expenditure target to align more closely with sustainable withdrawal rates (e.g., $175,000 - $200,000).

• Optimize Retirement Accounts: Continue aggressive Roth conversions and diversify investment portfolios to balance growth and risk.

  Big Al (30:21): "He's still young... you’re going to make it work."

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4. Bo and Daisy from Upstate New York

Profile:

• Ages: Bo (61) and Daisy (56)
• Location: Upstate New York
• Assets: Approximately $700,000 combined (including IRAs, Roths, and pensions)
• Income:
  • Bo earns from a $2,400 monthly pension and $28,000 from part-time work.
  • Daisy earns $27,000 annually.
• Expenses: $3,200 monthly ($38,400 annually)
• Debt: None (houses fully paid)
• Retirement Goals: Retire at 62 (Bo) and 59 (Daisy) with plans to draw $36,000 annually from investments until Social Security kicks in.

Discussion: Bo and Daisy seek assurance that their savings are adequate for early retirement, highlighting their desire to maintain a comfortable lifestyle while minimizing debt and maximizing existing pensions.

Key Insights:

• Pension and Social Security Integration: Their combined pensions and potential Social Security benefits form a substantial income base.

  Joe (28:54): "The total fixed income is what, is."

• Investment Withdrawal Strategy: Drawing $36,000 annually from a $700,000 portfolio implies a 5.1% withdrawal rate, which, while slightly above the traditional 4%, is feasible given their other income streams.

  Big Al (24:35): "That's what I'm saying. A lot of ways to skin the cat on this."

• Lifecycle Adjustments: The couple should remain flexible, adjusting their withdrawal rates based on market performance and unforeseen expenses.

  Big Al (38:32): "These things never happen. It's a dynamic process."

Recommendation:

• Monitor Withdrawal Rates: Maintain a vigilant approach to spending, ensuring that withdrawals remain sustainable amidst market fluctuations.

• Leverage Fixed Income Streams: Utilize pension income to alleviate the pressure on investment portfolios, thereby enhancing longevity.

  Joe (38:21): "If you are 60 years old, we might use... it's going to be the worry."

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5. Chuck from South Carolina

Profile:

• Age: 46
• Location: South Carolina
• Assets: Approximately $1.5 million (including traditional and Roth IRAs)
• Income:
  • Part-time work bringing in $28,000 annually
• Expenses: $120,000 annually ($10,000 monthly)
• Debt: None (houses paid off)
• Retirement Goals:
  • Retired at 46 and fully transitioned to a stay-at-home dad role.
  • Draw $36,000 annually from investments until Social Security begins.

Discussion: As a recent retiree at 46, Chuck shares his experience transitioning to retirement, highlighting the lifestyle changes and newfound freedoms. His narrative serves as a testament to the qualitative aspects of early retirement beyond mere numbers.

Key Insights:

• Lifestyle Benefits: Chuck emphasizes the personal growth and enhanced family relationships that early retirement can facilitate.

  Chuck (43:23): "It's been amazing... volunteer in their schools."

• Financial Viability: Despite a high annual expenditure relative to his asset base, Chuck's fixed income streams and strategic withdrawals appear manageable.

  Big Al (37:16): "But when you factor that in, I think it's probably okay."

• Psychological Shift: Transitioning from a work-centric life to a purpose-driven retirement requires a mindset adjustment, focusing on personal fulfillment and community engagement.

  Joe (38:21): "You got to create your own paycheck."

Recommendation:

• Balance Financial and Personal Goals: Ensure that financial strategies align with personal aspirations to maintain a fulfilling retirement.

• Continuous Evaluation: Regularly reassess both financial status and personal satisfaction to adapt to evolving needs and circumstances.

  Big Al (46:25): "Write us back in five years, and hopefully you still feel the same."

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Key Takeaways and Insights

1. Early Retirement is Achievable with Strategic Planning:

   • Even without a million dollars in savings, disciplined saving, diversified investment strategies, and leveraging additional income streams or inheritances can pave the way for early retirement.

2. Importance of Diversified Income Streams:

   • Pensions, Social Security, part-time work, and investment withdrawals collectively enhance financial security, reducing reliance on any single income source.

3. Flexibility and Adaptability:

   • Financial plans must remain dynamic, accommodating market fluctuations, unexpected expenses, and lifestyle changes to sustain long-term retirement goals.

4. Tax Optimization:

   • Strategic Roth conversions and tax-efficient withdrawal strategies are crucial in maximizing disposable income while minimizing tax liabilities.

5. Psychological and Lifestyle Considerations:

   • Beyond the numbers, early retirement offers opportunities for personal growth, family bonding, and community involvement, though it requires a shift in mindset and lifestyle adjustments.

6. Cautious Optimism with Financial Tools:

   • While retirement calculators and financial blueprints provide valuable insights, they are based on assumptions and should be used as guidelines rather than definitive answers.

   Joe (41:17): "We use distribution rates depending on your age... when the market turns, do you have enough confidence to... that’s when things get dicey."

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Conclusion

Episode 520 of Your Money, Your Wealth underscores that early retirement is attainable through a combination of disciplined savings, strategic investment, diversified income streams, and a flexible financial plan. Joe Anderson and Big Al Clopine provide invaluable guidance to listeners navigating the complexities of retirement planning, emphasizing both quantitative strategies and qualitative life enhancements. Whether you're a seasoned saver or just beginning your financial journey, this episode offers actionable insights to help you achieve a secure and fulfilling retirement.

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Notable Quotes:

• Big Al Clopine (04:17): "He’s about $30,000 short. It's close, though."
• Joe Anderson (07:19): "I like the fact you're disciplined enough to put money into a brokerage account. That's very uncommon."
• Big Al Clopine (16:09): "I think they should spend closer to 200. I think they would feel safer with that."
• Joe Anderson (28:54): "The total fixed income is what, is."
• Big Al Clopine (38:32): "These things never happen. It's a dynamic process."
• Joe Anderson (41:17): "We use distribution rates depending on your age... when the market turns, do you have enough confidence to... that’s when things get dicey."

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For more detailed discussions and personalized financial advice, visit YourMoneyYourWealth.com to access free financial resources, episode transcripts, and to request a Retirement Plan Spitball Analysis tailored to your unique financial situation.

Transcript

[Andy]

Martin and Katerina in Green Bay are in their 40s and haven't yet saved a million bucks. Are they on track to retire at age 58? Can Piggy and Kermit in California retire today at ages 50 and 57 and still build wealth for their children? Can Galahad and Zoot in Chicago retire early in their 50s? Or do they need to keep working? And do Beau and Daisy have enough saved to Retire now at 61 and 56? Spitballing early retirement today on youn Money, you, Wealth podcast number 520. Andy I'm executive producer Andi Last with the hosts of youf Money, you, Wealth, Joe Anderson, CFP and Big Al Clopine, cpa. If you've got money questions or want a retirement spitball analysis of your own, click or tap ask Joe and Big Al in the episode description and send us an email or a voice message like this one.

[Martin]

Thanks for taking our spitball, Joe, Big Al and Andy, we love your show and never miss an episode. I'm hoping that our spitball will be useful to some others out there who are saving heart but haven't yet hit a million dollars. Here's our details. You can call us Martin and Katarina. I'm 44 and she's 42. We live in the frozen tundra, home of the Green Bay Packers. He I drive a Honda and she drives a Kia. Both cars are paid off. Neither of us are daily drinkers, but I love a strong bourbon Old Fashioned with extra cherries and she's a sucker for red wine. Here are our assets. We've got about $15,000 in cash high yield which is our Emergency savings with $50,000. Brokerage account was 125,000 tax deferred retirement accounts 405,000 Roth IRAs 99,000 HSA 5,529 25,000 inherited IRA 43,000. That's a total, if my math is right, of $767,000. Our total debt is $50,000. We've only got the mortgage. We spread out our annual savings between the different accounts as follows. HSA About 7230 per year 5291200 per year Roth IRAS 14,000 per year Brokerage 6000 per year Tax deferred 8400 per year for a total annual savings of 36,842, which is about 27% of our annual income. Our employers contribute another $8,000 per year, which brings our total annual savings to 44,828. We both like to be able to retire by age 58, but we're open to working longer if we're in a good work situation and healthy. We think we need about $90,000 per year to live on in retirement. Post tax, we'll likely receive up to $500,000 inheritance over the next 10 years, which will go straight into the brokerage. Unless you want to suggest an alternative. We never count on any Social Security, but if that's still a thing, then we'll both take it at 70 and I estimate about $5,000 per month. Our son is about to go to college and we have a plan to pay for it as he goes, without changing our savings. So that's our financial life in a nutshell. Thanks for spitballing.

[Joe Anderson]

No idea. I guaranteed most people either. Got off the show. Turn it off. Fast forwarded it.

[Big Al Clopine]

What was that? It was a little tough to understand. Well, he told us his assets. He wants to retire at 58, wants to know if he's on track. So I will recap what I think I heard.

[Joe Anderson]

Okay, well, he wants to spend $90,000. Right? Is that. I heard that.

[Big Al Clopine]

Yeah.

[Joe Anderson]

And that's in today's dollars, or I.

[Big Al Clopine]

Assume it's today's dollars. So just by doing a little math. Joe, if you take his 767,000.

[Joe Anderson]

Let me do it the other way real quick. Okay, so he wants 90,000. When does he want to retire?

[Big Al Clopine]

14 years.

[Joe Anderson]

14 years. Let's call three and a half percent inflation. Okay, so he needs 145,000. He doesn't believe in Social Security. It's not going to be there.

[Big Al Clopine]

Yeah, right. Yeah.

[Joe Anderson]

And then, so point zero four, he needs 3.7 million.

[Big Al Clopine]

Yeah. And by using his numbers, at a 6% rate of return over 14 years, he'll have 2.7.

[Joe Anderson]

So he's short.

[Big Al Clopine]

Little bit.

[Joe Anderson]

Robot is short.

[Big Al Clopine]

A little bit. A little bit short. It's close, though.

[Joe Anderson]

How does that robot even need to spend that much money to get.

[Andy]

This one was actually a robot. I think this one had a little bit of personality to it, but still, he was very, very monotone for most of it.

[Joe Anderson]

You don't think that was AI?

[Andy]

I don't think so. Not that one.

[Joe Anderson]

Now I feel like an ab jerk.

[Big Al Clopine]

So I will. I'll say it a slightly different way. So I just used a 3% for.

[Joe Anderson]

I can't even concentrate. I just. I said so bad.

[Big Al Clopine]

So. So I. I got 136,000 of spending. I think a 4% distribution rate at 2.7 million is about 108. So he's about 30,000 short. Ish. Now that's without considering Social Security. And you know that anytime you're that far out from retirement, you know, 14, 15, 20, 30 years, there's so many variables that can happen that could change everything. But just based upon these numbers, I would say it, it's, it's close, but it seems to be like 30 or $40,000 short. Maybe if you really do want to retire at 58, then maybe you get a part time job. So maybe that would close the gap. But again, when you're looking this far out, it's just kind of numbers on a paper. You're in the ballpark, I would say, Joe, but there's so many things that could happen that could change it.

[Joe Anderson]

So here's Martin. I apologize if that wasn't to an AI machine. We get a lot of those lately.

[Big Al Clopine]

We do.

[Joe Anderson]

You have $800,000 at 42 years of age or 44 years years of age and your wife is 42. You're saving like $50,000 a year. You're in the top 1%. So I mean, I think you'll be able to do whatever you want to do. If you want to retire a little bit early at age 58, that's right around the corner. You're saving enough. We're using a fairly conservative growth rate on the overall assets. We're using a fairly high inflation rate on the living expenses. You. So there's a ton of variables. So over a 14 year, if you continue to save what you're saving and as long as you don't make any huge mistakes and blow this thing up, I think you're sitting in a really good situation.

[Big Al Clopine]

Yeah, I think that's a good way to say it. Plus you get to 58, you know, you're still healthy. Right. So maybe you keep working a little bit longer or maybe you do want to retire and you want to adjust your spending a little bit better because. Or a little bit downward if that's in fact what happens and maybe that's worth it to you. So there's a lot of variables. Your rate of return is huge. I mean I just use the 6%, which is pretty conservative. Could you earn more? Yes. Could it be worse? Yes. It's just, it's hard to say. But I, but I think I like.

[Joe Anderson]

The diversification from a savings perspective too. You got $14,000 going into Roth. You're putting money into a brokerage account. Most people don't save into a brokerage account, especially on a monthly or annual Basis, it's usually stock options, RSUs, inheritance, things of that nature. We usually see a big bulk up of cash and they don't necessarily know how to invest it. But then we see huge balances in retirement accounts. So I like the fact you're disciplined enough to put money into a brokerage account. That's very uncommon. And you're diversified in your savings. So I think as you approach retirement, you already have $100,000 in Roth. You're putting $14,000 away a year into the Roths. Yeah. I think from a spitball perspective, you're doing a lot of things right. Of course, we could take a deeper dive. And what are you actually invested in? Probably stay globally, diversified, low cost, and make sure that you manage the risk and you can tax, manage the accounts. And when markets are going to go bad, I don't know when they're going to go bad, but they're going to go bad at some point. That's maybe when you double down and save a little bit more or do Roth conversions. But you just got to stay disciplined over the next several years. And I think money will not be a worry. It's like, where do you want to spend the money? I think it's going to be the worry.

[Big Al Clopine]

Yeah, I think that's a good point. You talked about the market. The market will correct. And when it does, just keep on investing. In fact, that's, as Joe just said, that's when you double down, that's when you invest more even though it feels like it's the wrong time to invest. That's when you double down because the market's lower. Wouldn't you want to rather buy the market or stocks or mutual funds while they're on sale, while they're cheaper? And the answer is yes, the tendency when the market goes down, people stop investing because, oh, this doesn't work anymore. I'm going to wait till it works again. And you kind of want to do just the opposite. I'll say one more quick thing, and that is Social Security. Now, my dad, rest his soul, he would have been 93 this year. And he told me probably he was probably in his late 50s, Joe, and he said, I don't expect to get any Social Security. And he got decades of Social Security. My belief is it's going to be around who knows in what form, but there's too many people that depend upon it. So it will be around in some shape or form, I believe.

[Joe Anderson]

Yeah, I think Social Security is probably one of the largest asset that most retirees have as they go into retirement, if you take the present value of what their cash flows are. Like your dad. So he lived until what?

[Big Al Clopine]

Yeah, he was 90. Actually almost 91 when he got 91.

[Joe Anderson]

And he collected probably around what, 62, 65.

[Big Al Clopine]

Yeah, yeah.

[Joe Anderson]

Almost 30 years of payments.

[Big Al Clopine]

And he used to complain about he was having Social Security withheld and it was paying for his mother in law.

[Joe Anderson]

Well, he loved his mother in law.

[Big Al Clopine]

Well, he did, but that was just. It was a frustration because he didn't feel like he'd ever get to see a penny.

[Joe Anderson]

Got it, got it, got it, got it. All right, let's switch gears. We got Piggy and Kermit. Hello. Just discovered your podcast few weeks ago and have already binged many episodes. Thank you for your high level content and humor. We are Piggy and Kermit from California. I'm 50, husbands 57. We both drive Toyota hybrids. I love a cappuccino. My husband likes a pilsner. We would like to pivot to working less or choose not to work. Ideally, we'd like to spend more time with our kids 10 and 14, get more exercise and pursue personal interests. Oh God. Here's what we got.

[Big Al Clopine]

Where do they get you?

[Joe Anderson]

4 million in a brokerage account. Okay. Piggy and Kermit, where's Fozzie? You could probably have him join you. $500,000 in a Roth, $750,000 in pre tax IRAs and 401ks. You're 50? 57. All right. Got $5,500,000. We are both self employed and earn roughly $350,000 in pre tax income combined. However, we pay out of pocket for healthcare and dental. Our kids activities, camps, Orthodontia. Orthodontia.

[Big Al Clopine]

That's coming in your life.

[Joe Anderson]

What the hell does that mean? That's like braces. Braces, yes, but that's not an activity.

[Big Al Clopine]

No, but it's a cost.

[Joe Anderson]

Got it. All right. Thus we spend about $200,000, $225,000 a year and save the remainder in our pre tax accounts. You got a little other info? We have approximately $1 million of equity in our primary residence and $400,000 equity in our rental. The income and expenses from our rental property is included in our stated income and expenses. We are on track with savings for kids College saved about 400,000 for each child. That's it.

[Andy]

It's going to be a good education.

[Joe Anderson]

Yeah. Where are they going? Stanford. Because we want to set up our kids for success in education, in life. We anticipate giving Them money and maxing out annual gift contributions or paying for education or health related expenses for at least 10 years. Thus we don't anticipate our current expenses declining anytime soon. Two questions. Could we retire today given our expenses and desire to build wealth for our kids? If not, what net worth do you think we need to make the described financial scenario be viable? We'd love. Any thoughts on a part time work or cutting expenses to make our next bay's dreams happen asap? Thanks in advance. Oh boy. Okay.

[Big Al Clopine]

Can they make it work?

[Joe Anderson]

So they want to stop working. 5 million, get a little bit more exercise.

[Big Al Clopine]

Yeah, right.

[Joe Anderson]

Okay, they're going to stop working and they're going to hit the gym and then after a week they're going to be like well this sucks.

[Big Al Clopine]

Maybe not, maybe they'll like it.

[Joe Anderson]

Come on.

[Big Al Clopine]

I don't know. Anyway, you know what, when you have in this case five and a quarter million.

[Joe Anderson]

Yeah, that's what I think about too man. You know when I stop working I'm just going to exercise.

[Big Al Clopine]

Go to the gym.

[Joe Anderson]

Yeah, go to the gym and just dial in my golf game that much.

[Big Al Clopine]

More you're going to start volunteering all the time.

[Joe Anderson]

Guess what?

[Big Al Clopine]

Eating better.

[Joe Anderson]

I'm going to start cracking cocktails at.

[Andy]

8:00Am how would it be spending 247 with your kids, Joe?

[Joe Anderson]

Yeah, well you know, 10 and 14 maybe when the kids are 10 and 14.

[Big Al Clopine]

Yeah, that's your goal is Piggy and Kermit? Yeah, there you go.

[Joe Anderson]

They live in California, maybe we can. Right, what do they got five point some million dollars?

[Big Al Clopine]

Yeah, 5.25 million. They want to spend $200,000 to. 220. 225. Couple hundred thousand a year would be a 3.8% distribution rate. Good enough.

[Joe Anderson]

Yeah, at 50, 57 but that's not.

[Big Al Clopine]

Even including Social Security which they didn't give us. Right. And you know what, I think I'll just go back almost like the last one. It's like when you have a certain amount of dollars you're going to make it work. If you end up spending a little bit too much you're going to see your money going down. Well maybe you spend a little bit less but you can at 50, 50.

[Joe Anderson]

I wonder what they do self employed wise.

[Big Al Clopine]

Good question.

[Joe Anderson]

I wonder if you could parlay some of that. You just hire an employee where you still get a little bit of income or.

[Big Al Clopine]

Yeah, it depends what kind of business. Right?

[Joe Anderson]

Yeah because they make a ton of cash.

[Big Al Clopine]

A lot of people do that. They've got self Employed business. And they keep the business alive. Right. And they have employees or they have a couple trusted employees that, that run it or run a lot of it.

[Joe Anderson]

Tax write off. Yeah.

[Big Al Clopine]

And they still, they still stay involved, but not near as much. They travel more. Maybe that would be a good way to go.

[Joe Anderson]

Yeah.

[Big Al Clopine]

But there's plenty of assets here to make something work.

[Joe Anderson]

Yeah. I'm not sure what they do. They're just both self employed and make a lot of money. They've done a phenomenal job of saving some cash and $4 million in a brokerage account, 500 in a Roth, 750 in the IRAs, and 401ks at 50 and 57. So they're spending $225,000 plus tax though, Right? Plus tax, plus the cost of living. So if I'm like at $225,000 and, well, most of it's a brokerage account, so the tax isn't going to be all that much. You have 4%. They need $5,600,000. They probably need.

[Big Al Clopine]

If they spend $225,000.

[Joe Anderson]

Yeah. At $225,000, a 3% distribution is $7 million.

[Big Al Clopine]

Yeah. So I think, I think the number. I think they should spend closer to 200. I think they would feel safer with that or even 175.

[Joe Anderson]

But I think they're exercising. That costs a lot of money.

[Big Al Clopine]

No, no, no, no. You can get, you can get like for 18, a home gym, whatever, like an app.

[Joe Anderson]

I just sound like I lost.

[Big Al Clopine]

Or chair yoga.

[Joe Anderson]

Chair yoga.

[Andy]

And they could just run up and down their stairs like, al, there you go.

[Joe Anderson]

It's like, yeah, I was like 240 pounds. I weigh 189 pounds. By walking by three minutes a day for the last two weeks. Like, what the. Remember that commercial where you sprinkle.

[Big Al Clopine]

Yeah. The salt shaker. That's exactly what I was thinking when you said that. I don't even, I don't even have to walk. I put a little salt on my food and I lose weight like crazy. It's ridiculous.

[Joe Anderson]

I'm going to do chair yoga and.

[Big Al Clopine]

Have the magic salt.

[Joe Anderson]

The magic salt. And the walking app. You get the walking app.

[Big Al Clopine]

Yeah.

[Joe Anderson]

Yeah. So, yeah. Great. Yeah, they're pretty close. I don't know. It sounds like they want to leave like a larger legacy. They want to hang out with the kids. They're going to travel, they're going to do other things. They're probably going to spoil them a little bit more. They're going to spend more things. If you Give up that business. You're self employed. Can you go back to the business? Let's say you take a five year hiatus or a couple year hiatus and now the kids are in college, right? You got one at 14. So that kid's in college in three to four years. So then it's just the three of them. That kid's 14, 15, he's like, oh my God.

[Big Al Clopine]

Right.

[Joe Anderson]

That enough?

[Big Al Clopine]

Well, I'm wondering if they, they have, they have a business or maybe they sold their business to get all that, that brokerage. Maybe they just work in the business. I don't know, who knows? But yeah, there's lots of ways to.

[Joe Anderson]

We got $5 million, you're going to be fine.

[Big Al Clopine]

That's what I'm saying. Lots of ways to skin the cat on this. If it were me, I would probably just based upon the straight numbers, I would probably spend around 200, not 225. But then I would watch the dollars depending upon is it shrinking too quickly? Then I might readjust or whatever.

[Joe Anderson]

Pull back a little bit.

[Big Al Clopine]

Yep.

[Andy]

You've spent your entire life saving for the future after all that discipline and effort. Don't let the courts decide what happens to your money when you're gone. Learn how to avoid common will and trust mistakes that can lead to an expensive and overly complicated estate plan. Watch 10 will and trust Mistakes to avoid on youn Money, you, Wealth TV with Joe Anderson, CFP and special guest Allison Alley, cfp, sitting in for Big Al. Plus, download the estate planning organizer and Survivor's Guide for free from the podcast Show Notes to make things as easy as possible for your loved ones. Fill it out, give them a copy and don't forget to update it for them regularly. Click or tap the links in the episode description to watch YMYW TV and to download the Estate Planning Organizer for free.

[Joe Anderson]

Okay, here we go. Next up. Hey, Joe, Big Al, Andy, this is Galahad and Zoot here in the northwest suburb of Chicago. Zoot thinks my Monty Python reference makes me sound like a dip. Yeah, I'm with Zoot for sure, but she's a python hater, so I'm good. Rolling with it. All right. I like that term dip.

[Big Al Clopine]

You do?

[Joe Anderson]

Yeah.

[Big Al Clopine]

Do you use it a lot?

[Joe Anderson]

No, I don't know. I haven't really heard it. Now it's going to be dipped in the repertoire. Wow.

[Big Al Clopine]

Yeah. Making a comeback.

[Joe Anderson]

It's definitely making a comeback. Been listening for about six months. Really enjoy the show and hoping for a quick spitball. All right, here you go. I currently plan to work until I'm 65, and I'm reasonably sure we're fine if that happens. Since I'm an older person, 56 in the tech field and younger people are cheaper, I'm not certain I'll make it to 65 with my current employer. If I get laid off at 62, can I get by with retiring early and taking part time work maybe 15, $20,000 a year? Or should I consider going back to work full time? Since my plan is to delay my Social Security until I'm 65, my drink of choice is a light beer in Zoot Performers pinot. I have two kids, 14 and 17. Snookadoodle, snooky doodle Schnoodle. Well, I like Snooky Doodle.

[Big Al Clopine]

Snooky Doodle. That's good.

[Joe Anderson]

All right, we have three cars. They're all paid off. She drives our 2018 Sienna. My daughter drives a 2010 Outlander, and I drive a piece of crap 2008 Abio that I bought cheap to use. When Zoot is at work and my daughter's at school, I work from home. Our Castle Anthrax.

[Andy]

Monty Python reference.

[Big Al Clopine]

Yeah, these are all Monty python references.

[Joe Anderson]

The $400,000 mortgage at 3.25% is appreciated $750,000. We have $50,000 in debt, loans and credit cards. We were triple whammied in 2009, 2010 when the market crashed. My wife was taking time off to stay at home with the kids and I lost my job. This took a huge toll on our retirement savings. I'm 56, Zoot's 52. She currently makes 165, will retire at 57 with a $145,000 pension transferable to me if something horrible happens to her. Cola starts at 62 and plans to get a part time job with a hotel chain or airline for travel benefits once retired. We're thinking about $15,000 to $20,000 a year. So far, this sounds pretty good, Al.

[Big Al Clopine]

There you go.

[Joe Anderson]

$150,000 pension.

[Big Al Clopine]

Yeah, I like that.

[Joe Anderson]

All right. She's currently eligible for Social Security. I make $140,000. I currently have $200,000 in a traditional IRA, $10,000 in a Roth, $200,000 in a traditional Ira, $40,000 in a Roth. I'm contributing $12,000 a year to my Roth, 401, $6,000 a year to my. Converting $20,000 a year from my traditional to my Roth, and paying the taxes through payroll deductions. We have $2,000 in our brokerage account, $5,000 in a savings account and $40,000 in a 529 plan. Okay. I view the pension as our fixed income savings. So over 95% of my retirement is split between various stock index funds. We currently spend $15,000 each per month and would like to spend $200,000 after taxes, adjusted for inflation when I retire. The plan is to pay off the $50,000 in debt over the next five years. But since we'll probably replace it with the student loan debt for the kids or a car loan, I'd like to keep the payments there for spitball purpose. Open up a Roth IRA contributing $1,000 a year in a brokerage account contributing $500 a year for my 17 yaw. And we'll do the same for my 14 yaw when he starts working. Wow. This will be their inheritance. If Zoot and I have the luck of longevity and run through all of our cash. We plan on our home covering any long term care needs. At a glance, does this sound like this will pass the SNF test? Thanks for sharing the spitball. In an unofficially and totally un, non binding way, he wants to spend $200,000 a year. They're going to have $150,000 pension. He's 56, she's going to retire at age 57. So that money's going to come in. He makes $140,000 and he wants to retire at when?

[Big Al Clopine]

Well, he's planning to work till 65, but he's afraid being in the tech industry might get laid off by 62. So he wants to know, can he retire at 62? So that's six years from now.

[Joe Anderson]

So 62, he's going to get $15,000 to $20,000, let's say 20, some odd thousand dollars in Social Security at 62,000. At 65, he's got $36,000, $150,000, $36,000. He's got how much saved? About $600,000.

[Big Al Clopine]

Yeah, about $500,000.

[Joe Anderson]

$500,000?

[Big Al Clopine]

Yeah. If you just.

[Joe Anderson]

Yeah, you're fine.

[Big Al Clopine]

You take his savings, you got $150,000 pension.

[Joe Anderson]

I know you can't live off of that.

[Big Al Clopine]

Might not be able to spend $200,000 though. I mean, just follow this math. So I started with, well, he needs another million two.

[Joe Anderson]

So he needs what, $700,000?

[Big Al Clopine]

Yeah, yeah. So I've got, with what he has at a 6% rate of return, six years, adding $18,000 a year, he ends up with about $800,000. Okay. 4% is $32,000. You add that to the $145,000 plus, she's going to make 15 or 20 just from being working in the travel industry. So it's really close. It's just a tad short. I mean, if you just go by straight numbers, but. And of course I'm using. I didn't really index expenses for inflation, so that could be more, but it's pretty close.

[Joe Anderson]

$145,000 pension. I think you're going to be fine.

[Big Al Clopine]

There's a lot to work with.

[Joe Anderson]

Most people don't even. Can't even sniff that. So if you want to sniff, test. Smells pretty good. It smells all right to me. Before dip, you marry good.

[Big Al Clopine]

He did, didn't he?

[Joe Anderson]

Good morning. This is Bo and Daisy. We'd like to know if we've saved enough for retirement. All right, Bo and Daisy. Is that Bo and Daisy Duke?

[Andy]

I think it's probably from.

[Joe Anderson]

Yeah, from the John Snyder.

[Andy]

Duke's a Hazzard. Yeah. Was Bo. Yeah. He was the blonde, right?

[Joe Anderson]

Yeah.

[Andy]

Luke was the dark haired. Yeah, but now weren't they brothers and sisters? So if this is Bowen Dick. That's a little weird. Oh, cousins. That's it. Still weird, but okay, cousins.

[Joe Anderson]

Come on, cousins. I like bourbon on the rocks.

[Andy]

I like the accent you picked up.

[Joe Anderson]

So my wife was watching. I don't know what the hell it was, but there was some. Some good old boys.

[Big Al Clopine]

Okay.

[Joe Anderson]

Got home from the office pretty late last night, right. She's watching. I was like, oh, you watching some family videos?

[Big Al Clopine]

I bet she didn't like that comment.

[Joe Anderson]

I didn't really care for that. Yeah, she lived in Arkansas. I like a little bourbon on the rocks and the wife a margarita. I'm 61, wife's 56. We live in upstate New York. We have two pensions, one I'm drawing from now, which is $2,400 a month health insurance paid for me and my wife by the employer. The wife will draw $62,000 at $650 a month in pension. I work part time and bring in $28,000 a year. And the wife is working and brings in $27,000 a year. Social Security for me will be at retirement, which is age 67, for $3,100 per month. And the wife at 62, which will be half of mine. I have $410,000 in an IRA, $155,000 in a Roth, and the wife has $50,000 in a 403, and another $30,000 in a Roth. Our expenses are around $3,200 a month, and we have no debt. My house is paid for, and we'd like to retire at age 62, and the wife wants to retire at 59. I'd like to draw about $36,000 per year from my investments, mostly from my traditional IRA for about five years until Social Security kicks in. And then the wife at 62 would like to hear your spitball. Thanks, Bo. Okay. Okay, so we gotta annualize some of this stuff.

[Big Al Clopine]

Yeah. So the way I read it, he's getting about a $29,000 pension right now.

[Andy]

It's annualized in the green part.

[Big Al Clopine]

At the top, he wants to pull out another 36,000. So that's 55. So my guess is he's spending 55, not 38, which is what he said. So at 55, that can. I guess the real question is, can he pull out 36,000 from his portfolio? Because he's got about 650,000.

[Joe Anderson]

Yes. Like round up 700,000.

[Big Al Clopine]

Yeah, Roundup.

[Joe Anderson]

So 4% is 28.

[Big Al Clopine]

Yeah, it'd be probably closer to 5% distribution rate, but that's not including her pension or their Social Security. So I think that's probably fine.

[Joe Anderson]

Yeah, the. The total fixed income is what, is.

[Big Al Clopine]

Going to be $92,000 once it all comes in.

[Joe Anderson]

Once it all comes in. Yep. And they want to spend, well, $50,000 a year.

[Big Al Clopine]

Yeah, but he's.

[Joe Anderson]

Or that's on top. He wants to draw $36,000 a year from his investment.

[Big Al Clopine]

Yeah, that's what I'm saying. If he spent. If he wants to. He says, well, he's making. He's making 29 right now from his pension, and he wants to draw 36. So I think he wants to spend 55 or 60, is what. I'm sort of reading between the lines here.

[Joe Anderson]

Yeah, I don't know. That's rich in my blood.

[Big Al Clopine]

Well, but it's not rich when you think about that doesn't include her pension coming and their Social Security coming. But I think it's probably okay.

[Joe Anderson]

Yeah. If he just wants to draw a lot of that down. But he's still young. I mean, they're 61 and 56.

[Big Al Clopine]

I mean, by the time all the fixed income comes in, it more than covers what they want to spend. I think. I think that's what they want to spend.

[Joe Anderson]

The math makes sense. Real life, it's. It's a little sketchy.

[Big Al Clopine]

Well, you never see, because we're not 100% clear, really, on what you want to spend. But just trying to read between the lines. That's what I came up with. We want to spend closer to 55, 60,000. It's a higher distribution rate than we would like, but that's not including her pension and your Social Security. So I think when you factor that in, I think it's probably. Okay.

[Joe Anderson]

So he's working part time, making $28,000 a year, and then this his Social Security. Let me just kind of see if I can kind of read between some of these lines here.

[Big Al Clopine]

Yeah, right, Right.

[Joe Anderson]

So if he's working part time at 28, his Social Security at age 67 is $36,000 a year. $37,000.

[Big Al Clopine]

Right.

[Joe Anderson]

So, okay, I'm guessing. And then hers is she's going to take the spousal benefit.

[Big Al Clopine]

Well, he thinks it's half of his, but that's not how it works.

[Joe Anderson]

Well, let's just assume. I think he's stating that she's going to take the spousal benefit. Would you agree with that?

[Big Al Clopine]

Yeah, but she won't get half of his benefit if he takes it at 62. Well. Or if she takes it 62, it'll be about 30% reduced.

[Joe Anderson]

Yeah. So, all right, if I'm just trying to read between the lines on their spending, Alan, is what I'm trying to do. So let's say he is 61, she is 56. If she's going to take the spousal benefit. His Social Security is $36,000 a year. So if I've maxed out my Social Security payments or the tax or FICA tax, your. Your top benefit is probably, what, $45,000 a year? So he's at 36,000. Yeah. So I'm guessing he's probably made $100,000.

[Big Al Clopine]

Yeah. Up to the max, probably each year.

[Joe Anderson]

No, he's below the max.

[Big Al Clopine]

Yeah, but close.

[Joe Anderson]

I would say maybe a little bit less than that, because the max would be closer to 45. He's at 36. I'm guessing. I'm just kind of going off the top of my head. Right. But let's say if he makes 100 and she wasn't working and they've saved $700,000 a year, I guarantee their living expenses are low, where they would be totally fine. If her benefit was the same as his and she didn't have any savings, then I would assume that because he doesn't give us what his living expenses are, he's like, here, I want to take $36,000 out for five years to.

[Big Al Clopine]

Bridge the gap he said his expenses are 3,200amonth, which is 38,000 total. Yeah, that's why I don't trust that.

[Joe Anderson]

Yeah, I don't. Well, maybe if that's really the case, then, yeah, by all means. Bo and Daisy, pick up Luke.

[Big Al Clopine]

But he wants to retire, Uncle Jesse. He wants to retire.

[Joe Anderson]

Moonshine.

[Big Al Clopine]

He wants to retire right now. He's already making 29,000. Pension and go for it. Then he wants to take another 36,000. Now. That's why I think he's spending 55 or 60 grand at least.

[Joe Anderson]

Roscoe, Pico train. Yeah, Boss Hawk.

[Big Al Clopine]

I did watch that show.

[Joe Anderson]

Let's see.

[Andy]

Who's the dog's name?

[Joe Anderson]

What?

[Big Al Clopine]

I don't remember.

[Andy]

What was the dog's dog? Yeah.

[Joe Anderson]

Enos. No, that's the other cop.

[Big Al Clopine]

Yeah, that's right.

[Joe Anderson]

What is the dog's name? Come here, Coco.

[Andy]

Oh, no. Yeah, the basset hound named Flash.

[Joe Anderson]

Flash.

[Big Al Clopine]

Flash, yeah. That I wouldn't have got.

[Joe Anderson]

Flash. What was the name of the bar?

[Big Al Clopine]

Don't know. Do you know?

[Joe Anderson]

Yes. The Boar's Nest.

[Andy]

The Boar's Nest.

[Big Al Clopine]

Wow.

[Joe Anderson]

Oh, gosh.

[Big Al Clopine]

Look at that.

[Joe Anderson]

Guilt trap.

[Big Al Clopine]

You still got it?

[Joe Anderson]

I still got it. I haven't seen that show in 20 years.

[Andy]

Calculate whether you're on track for retirement. For free, input your current cash flow, assets and projected spending for retirement into our Financial Blueprint tool. It'll calculate a detailed report with three scenarios to help you determine your probability of retirement success with actionable steps you can take now to achieve your financial goals. Click or tap the Financial Blueprint link in the episode description. To get started, please use aliases Hepa.

[Joe Anderson]

Wannabe and Jane from Oklahoma. That's the aliases that they came up with, or that's what you picked?

[Andy]

That's what they came up with. And I think it's Hef Wannabe, which sounds like he wants to be Hefeweisen.

[Joe Anderson]

I don't know, half Wannabe. And Jane from Oklahoma.

[Big Al Clopine]

Yep.

[Joe Anderson]

All right. I like his spitball. Please. I drive a 20, 23 Tesla. Jane drives a 2014 Ford Explorer. I'm 61. Jane's 58. No pets. Favorite drink is bourbon, which is my main question. How far, financially, can I step up my bourbon game? Getting tired of the cheap stuff. I want to retire at 62. Wife will retire at four years. Here's the numbers. 401, $830,000. Jane's 401, $330,000. Jane's rollovers, $333,000. Pension for me is $1,700. Survivor's $850,000. My Social Security is 2,463. We're $3,500 or $4,300 change. Social Security is $2,000, $3,000 or $4,000. I have health care through the VA. No debt, houses paid off. We'd like to move in the next couple of years. Guessing we would need another $100,000 on that. We spend. Come on, folks, let's go.

[Andy]

Annually, it's in the green. Spending $120,000 a year. $93,460,000.

[Joe Anderson]

$7,789 a month.

[Big Al Clopine]

$93,000.

[Joe Anderson]

All right. Everyone always tells you what they spend a month. Oh, my God. Everyone always tells you what they spend a month. But I want you to know how much we can spend a month.

[Andy]

Everyone tells you what they want to spend a month, but I want to know how much we can spend a month.

[Joe Anderson]

No, they don't tell me how much they can spend a month. They tell me how much they can spend a year.

[Big Al Clopine]

Easier to follow.

[Joe Anderson]

It's a lot easier than giving me monthly numbers. All right, he wants to know, is $10,000 a month $120,000? Reasonable. Bourbon can be expensive. What kind of bourbon do you like, Grant?

[Andy]

Probably pappy.

[Joe Anderson]

Little pappy. You want to get a little pappy in you. So maybe more traveling. If we do not move, when should we take Social Security? No health issues. We'd use it in the Fidelity's retirement planning tool. If we both wait until age 67 for Social Security, our withdrawal rates hit 4.8% for four years. Until June starts drying or Jane starts drying. Is that a problem? Is this a reliable tool? Thanks for the spitball. Okay, that was confusing. All right. Hefa wannabe is 61 years old.

[Big Al Clopine]

Yeah.

[Joe Anderson]

So he wannabe wants to retire when?

[Big Al Clopine]

At 62.

[Joe Anderson]

All right. Next year.

[Big Al Clopine]

Yep.

[Joe Anderson]

Okay.

[Big Al Clopine]

And they got. They have about a million and a half right now.

[Joe Anderson]

$1,500,000.

[Big Al Clopine]

Okay, so $1,500,000 and pension right now is about $20,000 plus. Yeah. So if you look at just. This is just one way you could look at it. So it's pensions, $20,000, Social Security. He took it at 62, which I'm not recommending, but let's say he did. That'd be another 27 grand. So. So 47,000 plus. If you just take a million and a half at 4%, that's 60. I get 107. I think that's roughly 10,000amonth. Yeah. Close to 10,000. But I haven't really factored in higher Social Security or her Social Security. But yeah, I think, I think 120 is in the ballpark. The question sometimes we get is a 4.8% distribution. Is it too high? Well, it feels a little bit too high, but that doesn't include then your future Social Security. It's okay to have.

[Joe Anderson]

Well, no, what he's seeing is that this 4.8% distribution rate is only for a few years until it bridges the gap to Social Security.

[Big Al Clopine]

That's what I'm saying. Yeah, yeah, yeah, exactly. So short term, 4.8% to bridge a gap to Social Security. And if you're a lot lower than. I'm generally okay with that.

[Joe Anderson]

So is a Fidelity retirement planner a good tool? I don't know. I suppose I've never used it. But here's the deal. With any of these tools or any of shows like this, this is nonsense. We're giving you a ballpark figure in regards to how much money that you have to see. Hey, do you have enough in liquid assets or savings that potentially could produce enough income for you long term? And so we use distribution rates depending on your age. So if you are 60 years old, we might use, let's say don't take out any more than 4% out of the portfolio. If you're younger than that, maybe it's don't take out any more than 3%. There's many studies out there. 3% is probably a better number. But it really depends on how the portfolio is managed or I guess, what target rate of return that you're generating. Is it more equities? Is it more cash? Is it more bonds? Is it, is it a globally diversified portfolio? How much stocks versus how much bonds that you have? And then you have to consider your fixed income. What is your Social Security? What is your pension going to be? Do you have real estate income? And then you have to consider taxes. What's the tax bill going to be on the income that you need? So if most of your dollars, let's say, is in a retirement account, if you want to spend $120,000 a year, and most of that is going to be taxed at ordinary income rates. Okay, well, at 120,000, you're, some of that is going to be taxed at 12, some of it's going to be taxed at 22. So you got to consider. All right, well, what is going to be the tax bill? What state do you live in? You live in Oklahoma. So what is the state Tax on top of that. So that 4% could just be the dollar amount that you need to live off of. But then you have to pay federal tax, state tax. Then there's also health care, there's irmaa. There's all sorts of different things that you really want to get dialed in in regards to this. So when you're online and you're playing with computers and they're telling you it's a 4.8% distribution rate for four years, I can guarantee you that is wrong. It's either going to be zero or it's going to be seven. We don't know what the market's going to do. We don't know what your spending is going to do. You're in really good health today. Could something happen? You slip and fall, you have too much really good bourbon and then you break a hip. I don't know. I mean, just life happens. So these calculators help to see, all right, do you have enough money at a certain level. But that means nothing in regards to once you retire, your paycheck stops. So then you got to create your own paycheck. So are you ready to do that? And then when the market turns, do you have enough confidence to say, you know what, I trust that the markets are going to come back when you don't have a paycheck coming in, that's when things get dicey.

[Big Al Clopine]

Yeah, I think that's well said. I think when you think about it this way. So the 4% rule is just kind of a guideline to see if you have enough. But the fact is nothing ever works out. This is based upon like a 6% or 7%, we call it 6% rate of return flat over the rest of your life. And your spending is consistent. These things never happen. Right. So the thing to think about this is the market goes up and down at different points. You may have to adjust your spending, see your portfolio going down too quickly. You may want to spend less for a little while or maybe get a little part time job for a little bit a while and then things turn around and then you're more comfortable again. It's a dynamic process. So when we run numbers like this, it's only just to give you a guideline if you're close. I think that's well said.

[Joe Anderson]

Yeah. And the retirement calculator, Fidelity calculator, sure, whatever. I'm sure the numbers add up. You put your stuff in there, it's going to calculate. Fidelity is a pretty good company. So. All right, good luck. Let's go to Chuck from South Carolina. Hey, Big Al, Joe, Andy, longtime listener. Love the show. Thank you for producing it. Thank you, Andy, for producing it. Thank you, Aaron, for doing whatever you do. I wrote it about a year and a half ago, shortly after I retired at the age of 46.

[Big Al Clopine]

There you go. Okay, Discord.

[Joe Anderson]

Currently working to get all my savings rolled over to the Roth. Thank you for the spitball suggestion. In a recent episode, you had a few people writing in that are thinking about retiring in their 40s. You made the comments. Why? What are you going to do? You're going to get bored. I was just kind of thinking about myself and my bias. My bias were coming out because I was putting myself in their shoes and I was thinking of myself being retired because I want to retire every day, Chuck. But then I think to myself, what would I do? I'd get bored. So thought I would share my experience.

[Big Al Clopine]

Okay, let's see.

[Joe Anderson]

It's been amazing. For decades, I've measured my life and success by how much money I can make in a crew, how many promotions I can get at work. Now my perspective on what successes has changed. Oh, this is getting deep.

[Big Al Clopine]

It is.

[Joe Anderson]

I like it. Chuck, bring it home. Oh, man. Since retiring and becoming a stay at home dad, I get to make my girls lunches, take them to school, build new friendships, play new sports like pickleball, get involved in church work and lead charities, grocery shop and cook amazing dinners, attend my kids activities, volunteer in their schools, make them snacks for when they get home. Oh, this guy is a saint.

[Big Al Clopine]

Can you see yourself?

[Joe Anderson]

This is picture. This is exactly what I'm gonna do. I mean to a T. With old fashioned in hand, my kids snake little snacks during the day so I can spend time with my family on the weekends.

[Big Al Clopine]

He doesn't guard work during the days.

[Joe Anderson]

During the days while there's school, he visits colleges after he makes those snacks for the kids. Just a few of the freedoms that come with retiring younger. And honestly, one of the very best is when I get sick, I can actually lay in bed and just rest without guilt and stress of missing work or working through an illness. I'm a happier, healthier and holistic person since retiring early. Well, I mean, that's impressive.

[Big Al Clopine]

It is. I mean that's Chuck's doing all right.

[Joe Anderson]

Chuck is checking a lot of boxes in life here.

[Big Al Clopine]

He sure is.

[Joe Anderson]

There's a few few boxes I need. I mean, this sounds like you, Big Al. This is definitely you. My question is I. I could see.

[Big Al Clopine]

You doing this for a week.

[Joe Anderson]

Maybe the Snacks for the kids.

[Big Al Clopine]

That's what got you.

[Joe Anderson]

Yeah. Grocery shopping. Just panic attack with those lights.

[Big Al Clopine]

I can. I. I'd love to come over and get your amazing dinners.

[Joe Anderson]

Yeah. It's called takeout. Uber eats.

[Big Al Clopine]

Yeah. Yeah.

[Joe Anderson]

If you have the skills, knowledge, and discipline to save enough and live within your means to retire early and experience all these things, why wouldn't you? Thank you for taking the time and taking my question and again, putting out such a great show. Long time listener. Well, Chuck, appreciate the very nice sentiment.

[Big Al Clopine]

It's a different perspective. It's a totally different than what we talked about.

[Joe Anderson]

Yeah. You know, I don't know. It's. I get it. He probably worked a pretty stressful job. He saved enough money, can retire in his 40s, and, you know, he could do yard work during the week, so he's got free time on the weekend. He makes little snacks.

[Big Al Clopine]

Yeah. I think this is fantastic. I would say. The only thing I would say is, Chuck, write us back in five years, and hopefully you still still feel the same. And if not, that's okay, too. It's okay to go back.

[Joe Anderson]

I mean, he's leading charities. I mean, this guy is going to do some really cool things and help a lot of really, you know, people in need, so. Right. Yeah. I think if he's got the energy. He's young, 46, man. Congrats.

[Big Al Clopine]

So, yeah, it's a great story.

[Joe Anderson]

All right, well, I might change my perspective. This could be seeing.

[Andy]

First step, take a cooking glass.

[Joe Anderson]

I'm going to take a cookie. Yeah. I got to take a cookie class. And I got to figure out how to get over my anxiety of going into a grocery store.

[Andy]

You can't have groceries delivered, you know.

[Joe Anderson]

Oh, okay.

[Big Al Clopine]

Well, there you go.

[Joe Anderson]

There you go. But then.

[Big Al Clopine]

Great. I'd love to see you make lunches in the morning. Totally. What are you going to make? Like peanut butter?

[Joe Anderson]

I can make PB and Jay, no problem at all.

[Big Al Clopine]

Throw a little apple in there. Rice Krispies treat. Call it good. Yeah. You can play pickleball.

[Joe Anderson]

I don't know. I kind of like the challenges that I have every day, even though some days are harder than others. Making my kids snacks wouldn't.

[Big Al Clopine]

Wouldn't quite do it for you.

[Joe Anderson]

No, I don't think it will just get me going, so.

[Big Al Clopine]

But I'd love to have you retire for a year, and then you write. You write us with your experience.

[Joe Anderson]

Yeah. Soon to come. Yeah. Netflix is special.

[Big Al Clopine]

Okay, Perfect.

[Joe Anderson]

All right, that's it for us. Andy, wonderful job. Thank you. Aaron. Great as always. For just sitting there. Big Al, wonderful job and back at you. And we'll see you guys next time. Show's calling. You'd Money, you, Wealth this is yous.

[Andy]

Money, you, Wealth, you, podcast. If you enjoy ymyw, tell your friends and help us reach more listeners and viewers like you. And don't forget to leave your honest reviews, comments and ratings for your Money, you Wealth in Apple Podcasts, on YouTube, and in all the other apps that let you do that like Amazon, Audible, Castbox, GoodPods, Pandora, Player, FM Podcast Addict, Podchaser, and Podknife. We're on all of them. Your Money, you, Wealth is presented by Pure Financial Advisors. To really learn how to make the most of your money and your wealth in retirement, you you need more than a spitball. Schedule a free, no obligation, comprehensive financial assessment with the experienced professionals on Joe and Big Al's team here at Pure. Click the free financial Assessment link in the episode description or call 888-994-6257 to book yours. You can meet in person at any of our locations around the country. We're growing every day. Or meet online right from your couch. No matter where you are, the Pure Team will work with you to create a detailed plan that's tailored to meet your needs and goals in retirement. Pure Financial Advisors is a registered Investment advisor. This show does not intend to provide personalized investment advice through this podcast and does not represent that the securities or services discussed are suitable for any investor. As rules and regulations change, podcast content may become outdated. Investors are advised not to rely on any information contained in the podcast in the process of making a full and informed investment decision.