Retire Rich: 2023 Ultimate Planning Guide (Step-by-Step)

- What's going on you guys.

Welcome back to the channel.

So in this video today,

we're gonna be going over a ultimate guide

to retirement planning in 2021.

You already know I got my seltzer here.

I gonna go ahead and crack this bad boy open.

And we're gonna get this video started shortly.

So at the end of the day, most people do not want to spend

the rest of their life working.

And since your expenses don't just magically disappear,

when you turn 60 or 65 or whatever that retirement age is

you have to do things in order to plan for your retirement.

And so in this video, I'm gonna go through exactly

what you need to know to start off this process

of planning for retirement.

This is going to include a number of different topics.

We're gonna talk about,

how to tell when you can retire based on

your level of income.

We're gonna cover three primary ways

that people derive income during retirement,

when to start saving for retirement,

which is as soon as possible obviously,

where to save for retirement?

And we're also going to cover,

how to make your retirement money last?

Now real quick here, guys

I just want to say thank you to today's video sponsor

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We're gonna talk about that more later on guys

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Not to mention guys,

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Other companies like Verizon and AT&T

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In addition, if you're thinking about upgrading your phone

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5G is included at no extra cost with this plan.

But more on that later.

Now I'm definitely not looking to waste your time here

with this video guys.

So I wanna go ahead and identify who this video is for.

Well, mainly this video is geared

towards people who are approaching retirement age.

You're probably not ready to retire

but it's something that's on the horizon

in the next 5 to 10 years.

And you're wondering what things

should you be aware of right now,

and how can you get your ducks in a row

for when you do approach that retirement age.

This video is also helpful for those who are just

looking to prepare for retirement early on.

Even if you're in your 20s like me or your 30s,

there's things you can start doing today

that are gonna be relatively painless.

And trust me, you're gonna thank yourself later,

when you have a lot of money

set aside for your golden years.

Now, many hours of research did go into this video.

So I just have three small favors to ask you here, guys.

First of all, if you are sitting there

and watching this on your computer,

go ahead and put your phone on silence

and put it away for a little bit,

because you wanna focus all of your attention

on this video, and not be distracted

with all those social media apps,

you can go back to those shortly.

Also guys, make sure you pause the video

and grab a pen and paper.

And if you need one, go ahead and grab a beverage as well.

We are gonna be here for a little bit

but I promise to you

that I'm gonna answer probably every question you have

about retirement planning in this video.

So you're not gonna have to jump to like

10 different videos to get all of your questions answered.

Lastly guys, if you enjoy this video

just go ahead and drop a like,

it shows me that this information was helpful

and I'm not asking you to like the video now

but at some point, if you're watching it and you say,

"Hey, this was pretty helpful."

That little thumbs up button certainly does help out.

Lastly, a few quick disclaimers I have to make here.

I am not a financial advisor.

This is not financial advice.

You need to do your own research

before investing in anything out there.

Don't do what some guy on the internet just tells you to do.

I'm not here to sell you any products.

I'm not selling any courses or anything like that.

And lastly, I have been getting a lot of scam comments

down below where people are impersonating me.

They're trying to get people to send money.

That is not me.

I wanna put up two comments on the screen here.

This is a comment that's from me.

And you can see the check mark

and the different way that it looks

versus this scam comment that doesn't have those things.

So if you're communicating with someone down in the comments

and it's me, make sure I have that check mark in place

otherwise you better bet that is a scammer,

and they're trying to take your money.

Hopefully YouTube does a better job at policing this

but for the time being, it is utterly out of control.

And I don't really know what else to do

other than make this disclaimer in every single video.

That being said, guys, let's get right into it

and start off with when can you retire?

And to be honest with you guys, it's a pretty simple answer

but the way of figuring this out

is a little bit more complicated

and we're going to cover that later.

But the truth is when you're able to retire

is when you no longer need to rely on active income

to pay for your expenses.

So most people out there have a mortgage,

they have car payments,

they have different monthly expenses.

And so in order to retire,

you have to make sure that all of those expenses added up,

and even those unforeseen expenses that you can plan for.

Well, your level of income derived

from your different investments

needs to be enough to cover those expenses.

Otherwise you may have to go out there

and get a different job

to supplement your retirement income.

And so for most people that may not be the

ideal retirement scenario.

So short answer here, guys, you can retire

when your passive investment income exceeds your expenses,

but the longer answer is

there's a calculation we're gonna use to figure this out,

that we'll discuss later in the video.

So next up,

what are your different options for retirement income?

Well, this pretty much comes down to

anything out there that can make you money,

but there's pretty much three main areas

where people derive retirement income.

The first one is your personal savings

and your personal investments.

So maybe you're somebody who's worked a job

for your entire life

and you've been slowly contributing to that 401(k).

And then maybe you also have some IRA accounts.

Maybe you have a Roth IRA or a traditional IRA.

And then beyond that,

you might have a nest egg with your savings.

Maybe you have the taxable brokerage account as well.

And the goal is for eventually all these things

to be able to provide income

for you to not have to work in order to pay for your bills.

Now, the second area where people derive income

for retirement is social security.

However, we've certainly heard a lot about this

in recent years, and I don't think it's such a safe thing

especially for young people to be reliant on that

in the future because social security is kind of

in shambles right now where we don't know how

long it's going to last.

However, if you are approaching retirement age,

that may be something you can count on

for the time being is deriving income

from social security.

However, social security alone, 90% of the time

is not going to be enough money to pay for your expenses

unless you're living in like

the smallest apartment in your entire city

and you pinch every penny.

And at least for me

that's not my idea of a good retirement.

And just a couple of statistics

I wanna share with you guys here about social security,

40% of those who are 60 and above are 100% reliant

on social security as a means of income.

And so, like we said, here, there's three different ways

people typically derive income,

but most people are just fully reliant on social security

which is something to be worried about.

And if you're a younger person watching this video,

you don't want to put yourself in that situation.

Another surprising statistic here

is that the social security trust fund

based on the current rates

is likely going to run out around 2035.

Now, are they gonna let it run out entirely?

Probably not.

What they're gonna do is probably decrease

payouts over time, which means that

those who are reliant on that as income

are gonna start making less and less money

if they have to decrease those payouts.

So that is why you really don't wanna be in the situation

where your reliant on this social security income

as a means to sustain yourself.

And then lastly, the third source

of retirement income for most people

that's becoming less and less common

is something called a pension.

Now pensions vary from company to company.

In the past, it was typically a percentage of

your highest earning year basically paid to you

in perpetuity until you are passed away.

But what they found is that

these things are not very profitable for companies.

And it's very rare to find any companies today

that still offer this pension.

But if you're an older person watching this

nearing retirement age,

you may still have a pension plan

to derive income during retirement.

So your best case scenario here for retirement

is that you're deriving income

from these three different sources.

Number one, personal savings and personal investments.

Number two, social security, number three, your pension.

That's like the perfect scenario for retirement.

However, unfortunately only about 6.8% of people

over age 60 are deriving retirement income

from all three of those sources.

So the vast majority of people probably don't have pensions

and some unfortunately don't have any personal savings

or personal investments.

So that's the big picture right now.

And that's why it's very important to have your ducks

in a row and start thinking about this early on

and planning that way.

You can try to have a a three-legged stool here

where you're able to derive income from multiple sources.

You don't want to be fully reliant

on social security or fully reliant on pension income

or personal investments, personal savings.

You wanna have different things that are able

to generate income for you that way you're diversified.

Because basically people who are deriving income

from one source are balancing on a one-legged stool.

It's not very stable.

You wanna have multiple legs to that stool, ideally three.

And of course in that personal investments

and personal savings category, there's a lot

of different things that fit under this category.

For most people, it's stocks and bonds

but a lot of people also invest

in things like real estate or precious metals.

And there's a lot

of people who literally will just put all their money

in real estate, build up, you know

a portfolio of 30 or 40 units.

And then they live off of that rental income cashflow.

So there's many different ways to skin a cat here, guys

but just understand that your goal here should be

to derive money from multiple different sources

and have three legs to that stool.

So next up here, guys, let's answer the question of,

when should you start saving for retirement?

Well, short answer as soon as humanly possible.

Now, what I mean by this is

when you're younger and your expenses are lower.

Let's say you're in your 20s and early 30s.

Maybe you don't have kids yet.

Maybe you're still living with your parents.

This is your prime opportunity to put as much money

as you can into your 401(k),

maxing out Roth IRA contributions,

and basically holding onto as much money as you can

and putting it in something that grows value.

Because the main factor

in how much money you have in retirement

isn't based on how much money that you invest.

It's how much time you allow that money to grow.

So even if you're in your 20s or 30s watching this,

and you're thinking,

"I don't really have a ton

that I could set aside right now."

It doesn't matter how much you put aside,

the main factor is the amount of time

that you allow that money to grow.

So just for an example here, guys

if you're looking to have $1 million in your retirement

let's say your 401(k) for example

you could invest just $300 per month, over a 40 year period

earning the average return from the stock market.

Or if you wanted to do it in 20 years,

you would have to invest $1,750 per month.

That's almost six times more money to get you

to the same result.

So you can either invest a smaller amount of money

for a much longer time

or you're going to have to invest a lot of money

for a shorter window of time.

So the sooner you start, the better off you are.

And I highly encourage you to check out

a compound interest calculator

and play around with some of those numbers

if you are a young person watching this video.

If you're already close to retirement age

and you didn't do these things, don't worry.

I still have more options

for you that we're going to discuss in a little bit.

And again, it's important to understand that

truly it's never too late to start saving

and investing for retirement.

So even if you are in your 50 and you have no assets,

you should still do something.

You know, doing something is better than doing nothing.

It's gonna be a lot harder because

you don't have that much time to let your money grow,

but it's never too late.

It's just important to understand the sooner you start

the better off you are.

So now, let's talk about

where you should be saving money for retirement.

And there's a pretty simple process to follow here

that most financial experts agree on

and I'm going to teach it to you right now.

So the very first thing you should do

before investing your money in the stock market

and opening up different investment accounts

is to set up an emergency fund.

And this is just simply a liquid account.

It sits there in a online savings account

or a savings account at your bank

or maybe a certificate of deposit.

And so what you want here is a rainy day fund.

So what most experts recommend is setting aside

three to six months of all of your expenses.

So what you wanna do is sit down on a piece of paper

write down every one of your expenses,

your car payment, your mortgage, groceries, utility bills

and come up with that figure.

Let's say for most people

maybe it's $3,000 per month is their monthly expenses.

Well, I would encourage you to save

up six times that expense in a liquid emergency fund.

So your very first step is to have

let's say anywhere from 10,000 to $20,000 parked

in a savings account where it just sits there

in case of emergency.

And then you're not going to invest that money.

You just leave it sitting there.

And if you end up taking money out for an emergency

like a car repair or a medical expense,

you replenish that fund and you keep that amount there.

And of course,

if your monthly expenses are going up over time,

you're going to want to adjust your emergency fund

accordingly to make sure you keep enough money in there.

So that's your very first step is, begin saving up money

for an emergency fund and aim have three to six months

of expenses sitting in a liquid account.

The very next thing you should do

after you have your emergency fund

in place is to take advantage

of any employer match with the 401(k).

So if you're not familiar,

the 401(k) is an employer sponsored retirement plan

which allows you to take money pre-tax

and put it away for retirement.

And it also gives you a pretty nice write-off

on your tax return, which is something else to consider.

Now, I don't recommend putting all of your money

into the 401(k) because it's hard to access it

and you'd have to pay taxes and penalties

to get that money out.

However, if your employer is offering a company match,

you should maximize whatever they're offering you

because that's literally free money.

So back before I was a full-time YouTuber guys,

I used to work for a utility company

and they didn't have a pension or anything like that,

but they did have a employer match.

So every dollar I would put in,

they would match me with an additional 50 cents up to 6%.

So what I would do is I put 6%

of my paycheck into my 401(k) and then they matched me 50%.

So I got another 3% for free.

So, effectively 9% of my total pay

was going into my 401(k) every single week automatically.

So after you have your emergency fund established,

or at least started.

You don't have to have all that money there

before you move to step two.

You just want to kind of start that

and begin putting a little bit over there

every single week to build up that fund.

The next thing is to take advantage

of those employer 401(k) matches.

After that, if you have any high-interest debt, you know

like personal loans, credit card debt, things like that.

You wanna pay that debt off next,

because the average return you're gonna see

from the stock market is somewhere around 8 to 10% per year.

And so if you have high-interest debt,

like let's say you have a credit card with 25% interest,

the most wise move you can make financially is to pay off

that debt because you're paying way more in interest

than you're gonna earn as a return.

If you had $1000 invested

and you're gonna make 10% in one year,

you're going to make $100.

If you have a $1000 on a credit card

at 25% interest over the course of one year

you'd pay like 250 in interest.

So even though you could invest that $1,000 and make $100

you're still paying 250 in interest.

So overall it's a net loss.

So if you have high-interest debt,

you got to get that paid down first

before you begin investing in other stuff,

just because that's your wisest move financially.

So after you have your emergency fund in place

and after you maximize your employer match

and then you pay off your high-interest debt, if applicable

the next thing to consider is an IRA.

And in particular, I like the Roth IRA.

Assuming you're able to contribute to this

based on your level of income.

Now I'm not gonna get into a whole thing here guys

on Roth IRA versus traditional IRA.

I could probably spend 30 minutes

on an entire video talking about that.

So for now, we're just gonna cover some very basic stuff

about the Roth IRA.

With your 401(k) as mentioned,

you're contributing pre-tax income

and you get the write-off.

However, down the line when you draw out of that account

that is when you pay taxes.

With the Roth IRA,

you're actually contributing post tax income.

So you've already paid taxes on it,

meaning you don't get any write-off.

However, if you follow the rules and you know

you start drawing from that by a certain age

you don't actually have to pay taxes

on the growth of your money.

So it's a very powerful account

and it allows you to grow your wealth tax free.

The other advantage of the Roth IRA

is you can pull out your contributions at any time.

So if you were putting a $2,000 per year of contributions

into that Roth IRA, every single year,

you can pull out those contributions at any time,

tax free, penalty free.

You just can't touch the earnings

or the growth of your money.

So let's say you're putting money into a Roth IRA.

And then 10 years later, you decide that

you want to invest in a business or something.

You can pull that money out and pull your contributions out

and not have to worry about penalties and taxes.

So I liked the Roth because it's flexible,

you can choose where you put that money.

You can put it in stocks, bonds, precious metals

there's all kinds of different Roth IRAs.

And you have access to that money

where you can take out your contributions,

if you do need to access it.

So now assuming that you have the emergency fund in place,

you're maxing out your 401(k),

you've paid off high-interest debt,

you've maxed out Roth IRA contributions for the year.

After that, that's when I would put that money

into a taxable brokerage account

where you're able to invest that money,

you're able to touch it you're able to access it.

The only thing is you pay taxes on your dividends

and taxes on those capital gains.

But for the most part,

that is the generally agreed upon plan

for where you should save money for retirement,

is in these different things that you have control of.

And this is all within that category

of your personal savings and personal investments.

As far as your pension goes

that's all based on your employer,

most of them are not offering any pensions today.

However, if they offer it

and it's something you have to contribute towards,

if you expect to stay with that employer for a long time

and make a career out of it, that is definitely a wise move.

And then you automatically pay

into social security if you are a W2 employee.

So that's not really something you have any choice over.

So now let's go ahead and cover how much money

that you're going to need in order to retire.

Well, it's kind of a moving target

and it's going to change based on your lifestyle.

I mean, are you looking to live in a

one bedroom apartment and drive a ten-year-old vehicle

and you know, eat canned beans for a living?

Or do you want to retire on a beach in Miami?

So it all depends based on your lifestyle.

But there is again, another generally accepted calculation

that financial experts use,

to calculate necessary retirement income.

And it's something called the 4% rule

that I'm gonna teach you right now.

Also guys, just a quick reminder,

I know I mentioned this earlier,

but if you have found any value in this video so far,

a like would certainly be appreciated.

It helps this video to be shared with more people.

And if you have any thoughts or questions

leave me a comment down below.

But anyways let's talk about this 4% rule now.

Now, as far as the math behind this goes,

I'm not going to get into it.

If you wanna watch, there's plenty of videos

about the 4% rule that we'll go into a lot more detail

but essentially it's a very simple calculation.

What you're going to do, is you're going to multiply

your desired retirement income by 25.

So let's say for example

you wanna have $40,000 per year of income in retirement.

If that's how much money you want,

you want to multiply that by 25.

And that will tell you a rough idea

of how much money you should have

in your savings and your investments

in your personal investment and savings accounts.

So for example, if you wanted $40,000 per year,

you would multiply that by 25

and you would come to the conclusion

that you're going to want to have $1 million saved

and invested in these different accounts

in order to sustainably derive $40,000

per year from that account without running out of money.

Now, if you wanna be a little bit more conservative,

there is the 3% rule which is going to be a multiple

of around 33, but anywhere between 25 to 33 times,

your desired annual retirement income

is how much money you should have set aside

saved and invested for retirement.

So obviously guys,

the main thing here is the less money that you need

per month based on your lifestyle,

the less money you need saved and invested

and the sooner you can retire.

That's where that whole FIRE movement comes from

or Financially Independent Retire Early,

that's people who live off of as little money as possible.

They save as much as possible

and they aim to be retired in their 30s.

And they're able to accomplish that

by living off of as little money as possible.

I did a whole video on this called how to retire by 30.

If you guys wanna check it out at the end

I will include a link down below.

So now what I want to cover here is what to do,

if you're somebody who doesn't have 25 to 33 times

their desired annual income

in a savings or retirement account.

Maybe you're already in your 50s or early 60s.

And you're saying, "What am I gonna do?

I don't have money

that's just going to fall out of thin air

to put in this account, what options do I have?"

Well, let's cover those right now.

The main things that you can do

are surrounded by things that you can control.

And the main thing you can control is how much money

you're actually spending during your retirement.

So essentially you have two options.

You can try to make more money

or you can try to spend less money.

Now I'm more of a fan of the offensive approach here

which is figuring out how to make more money.

And so let's talk about that now.

The first thing you could do is figure out some kind

of side hustle that you wanna start maybe in retirement

or maybe you wanna do this before retirement and save up

extra money and take all that money and invest it.

I've done a lot of videos about side hustles.

We're not going to get into them here

but just understand that this right here, this laptop

this provides a lot of opportunities to make money.

And it's certainly not rocket science,

and I know a lot of people who

in their later years have started YouTube channels and blogs

and these different things that allow them

to make extra money on the side.

So the first thing you wanna consider is,

"Hey, let me look into starting a side hustle."

Second of all, pretty simple,

spend less money now, pre-retirement.

That way you can save more money to invest.

So if you're in your 40s or 50s, and let's say

for example, you're driving a brand new luxury car

and you're watching this video and you're realizing,

"Oh crap, I'm not preparing for retirement."

Maybe you make some small sacrifices today,

that allow you to save and invest more money.

So maybe you trade that car in

and you get an economy vehicle

and you take that difference in your monthly payment,

and you put that into your Roth or your 401(k) instead.

Another option, pretty simple,

spend less money in retirement.

We're gonna cover that more in a little bit.

I'm gonna give you guys some tips on how you can do that.

And then lastly, option number four

not the best one, which is delaying retirement.

Maybe you wanna push it until age 70, age 75,

which will allow you to stay working longer.

It will allow you to contribute money

towards retirement accounts and investment accounts longer

and allow that money to have more time to grow

before you have to start drawing.

So now what I wanna cover here is a rough idea

of how long your retirement money is going to last.

And I don't wanna sound morbid here guys

but the truth is, you want your retirement money to last

until you pass away.

And then you also wanna make sure you have enough money

sitting there to cover medical bills,

funeral costs, and things like that

because most people just don't wanna be a burden

on their family when they pass away.

Where they're out of assets, they're in debt

and then their family has to scrape together

10 or 20 grand for a funeral.

So it's not something that we like to think about

or really talk about but it is something

that's important to prepare for.

And so your goal here should be to have enough money

that you can have your money outlive you

and cover some of those costs

and maybe have a little bit of money to pass on

to your family as well, maybe towards, you know

college expenses or things like that.

But anyway, let me give you a couple of pointers here on,

how long that money will last

in a couple of different factors to consider.

Well, first of all how long your money will last

is going to largely depend on your investments.

Some of them are lower risk

and some of them are higher risk.

And so if you're investing in higher risk assets,

they may be more volatile

but you may also see greater returns.

On the other hand, if you're super conservative

and let's say you only put your money in

fixed income assets, you may find that

you're not taking on enough risk, and you could find that

your money doesn't last as long as you need it to.

So, one of the main things you have to understand

with retirement is that asset mix.

And for most people, it's a split between stocks and bonds.

And so that's the main thing you wanna focus on

is that allocation.

If you'll have too much money in stocks

and not enough in bonds,

you might be taking on too much risk

and your portfolio could be very volatile,

going up and down in value all the time, stressing you out.

If you're too low-risk

you might not be growing your money fast enough

and it might run out too soon.

So figuring out that asset mix is very important.

Now as far as that number goes,

there's a couple of different rules of thumb out there,

but one that most people agree upon

is the 110 or the 120 rule.

And it's based on your life expectancy.

So, I actually am a fan of the 120 rule,

which basically means you take your current age

and subtract it from 120.

And that tells you how much money you should have

in stocks and the rest should be in bonds.

So for example, I am 25 years old,

I would take 120 minus 25, and that leaves me with 95.

That tells me that 95% of my money

should be in stocks and only 5% should be in bonds.

Whereas if we take a 70 year old, for example

we would take 120 minus 70, and that leaves us with 50.

And that tells us that 50% should be in stocks,

50% should be in bonds.

Now, of course, guys that is a very basic example

and it doesn't take into account

your unique personal situation.

So for exact numbers I would actually recommend

speaking with a financial advisor and you don't necessarily

have to have them manage your money,

you can pay them for a one-time consultation

where you're basically saying, "Hey I want you to tell me

what my allocation should be,

and help me understand how that changes over time."

But by far that's one of the most important factors

to consider is your asset mix or asset allocation?

Now in general guys, that 4% rule that we discussed earlier

has been pretty successful, and most people have found

that it lasts them around 30 years,

which is a pretty long retirement.

That's about how long most people expect to be around

once they retire.

However, the success of that 4% rule is largely dependent

on that asset allocation we discussed.

Because if you're not taking on enough risk,

and you're only earning a very small return,

you're going to dwindle that money a lot sooner.

Another important factor to consider is taxation.

And this varies based on the types

of accounts that you have.

As mentioned earlier,

the Roth IRA is an account where you put your money in

and you pay taxes on the way in.

But when you draw from that account

you don't pay any taxes.

Whereas with the 401(k) it's tax-free going in

but when you come out, you're actually going to pay taxes.

So this tax situation is largely dependent on

your own investment accounts.

Maybe one person has all of their money in a Roth

and somebody else has all of their money in a 401(k).

Those are vastly different tax situations.

And this is a scenario again where a financial advisor

can look at this for you,

and help you with some tax planning.

And you can understand what are the tax implications

associated with your different investments.

So now that you have a general idea of the factors

that will tell you how long your money will last,

let's talk about some different ways

to make your retirement money last longer.

So the first thing you can do

to make your money last longer,

which is getting more and more popular

is something called downsizing.

So most people end up having a home

where they raise their kids.

And let's say that you're still together with your spouse.

You may now be in this situation where

you have this three or four bedroom house,

you're paying to heat all those bedrooms.

And you're maintaining this big house,

when you're only utilizing like 25% of that space.

Even if your mortgage is paid off,

you're still paying for utilities and landscaping

and things that on a much larger property than you need.

So you could downsize into an apartment

or downsize into a smaller house.

That's becoming more and more popular

with the goal of reducing your fixed monthly expenses.

Another option, going back to the side hustle idea,

maybe you Airbnb, a part of your home

or you do one of your bedrooms or something like that,

to figure out how to generate income from that unused space.

But downsizing is a very popular option.

Another one is reducing your fixed expenses

like your car payment, as well as things like your

utility payment and things like your phone bill.

So this is where I wanna talk more about our sponsor

for today's video, which is T-Mobile,

because they have specific wireless plans

designed for people in retirement to save you money

on those fixed monthly costs.

So, 55 and up customers who live anywhere

in the United States, not just Florida

are able to get two lines of unlimited talk, text

and data on T-Mobile's network, starting at under $30 each.

Which if you have an existing phone plan

you have a general idea of what you're paying,

and I can tell you guys right now

I'm paying a heck of a lot more than $30 per line.

Now you might be wondering

if you're getting some really cheap plan in the process

and the answer is no.

In fact, it comes with a lot of different bells and whistles

and extra perks.

For example, it comes with the industry's

best scam protection, unlimited 3G mobile hotspot data,

international texting, no annual service contracts,

your very own dedicated customer service team,

as well as additional free items here and there

and discounts every single week through T-Mobile Tuesdays.

So oftentimes if you switch from a carrier like,

AT&T or Verizon, over to T-Mobile with this plan,

you could save upwards of 50% every single month.

And while it may not sound like a lot of money upfront

when you factor in that cost over the next 20 or 30 years,

these little things you can do to save money

on those monthly expenses really are going to add up.

So if you are interested in those 55 plus plans

through T-Mobile, switching carriers is very easy.

If you're ready to make the switch,

you just have to stop into a T-Mobile store,

or you can call 1800 T-Mobile

or visit T-mobile.com/55,

and I'll go ahead and include links to all of that

as well as the phone number down below,

if you guys wanna go ahead and take advantage

of those discounted plans.

Now another thing you can do to make your retirement money

last longer is falling into that category of

delaying your retirement.

You can also delay taking social security,

and this can lead to you having a larger monthly benefit.

So for every year that you wait,

you're going to get an additional 8% in social security,

every single month.

And if you wait until age 70 to start taking social security

you can get up to 24% more every single month.

So if you can delay retirement,

and delay taking your social security benefit,

that can result in additional monthly income.

Another great strategy is

exactly what we're talking about here,

which is having a retirement spending plan

before you stop working.

So you do things in advance to get your ducks in a row.

You cut down on recurring monthly expenses

like your phone bill, maybe you take advantage

of something like T-Mobile's 55 and up plans.

Maybe you downsize, or you decide to Airbnb a spare room

as us as a side hustle.

You just start planning early on

before you hit retirement age, and then you think,

"Okay, I haven't planned for this at all.

Let's get something going."

You're better off to plan in the beginning

and get your ducks in the row early.

Another suggestion that I have is

utilizing credit card reward points, because a lot of people

in their later years want to travel during retirement.

We're in a unique situation right now

with the global pandemic, but once it's safe to travel,

that's a popular thing in your retirement age is

seeing the world.

Well, if you're able to effectively use credit cards

and get free points for travel or free miles,

that's another way to get more bang for your buck.

And as long as you're not paying interest

on those credit cards

and you're paying them off every single month,

I would highly recommend utilizing credit card reward points

and bonuses for travel.

Lastly, one of the things that you can do is

make investments in your health

to make sure that you're not having a lot of

medical stuff coming up in retirement.

Hopefully you have some plan for health insurance.

So let's say now that worst case scenario,

you're somebody who is in retirement right now

and you're slowly realizing that

you're going to run out of money.

You don't have enough for that 4% rule

and maybe you only have one leg to your stool,

which is social security.

What options do you have available to you,

if you know, you're going to fall short?

First of all, as covered earlier, you can reduce expenses

or pick up a part-time job or side hustle.

A lot of people in retirement end up working

10 or 15 hours per week on the side.

Number one for something to do,

and number two, just to have extra spending money.

Another option is to tap into the value of your home

with a home equity line of credit or a reverse mortgage.

That's pretty complicated,

not gonna get into that too much in this video,

but if you want to hear more about that

leave me a comment down below,

and maybe I'll do a whole video

talking about the reverse mortgage.

Another option that you may explore is,

if you have a life insurance policy,

you may be able to tap into the value

of your life insurance policy

and get something called the cash value,

if you draw on that early.

Again, complicated subject maybe a topic for another video

but if you have a life insurance policy,

you should sit down with a financial planner

or financial advisor and ask them about those options.

And one thing I want to mention here is,

if you're somebody who's in retirement

and you know that your money supplies dwindling,

don't ignore this problem.

There are things that you can do.

The longer you wait the worst it's going to be.

So I would start addressing these issues now.

So just to wrap up here guys,

one of the main things that I want to recommend

as a call to action is it may be worthwhile to sit down

with a fee only certified financial planner.

It's gonna cost you a couple of $100 out of pocket,

but they're going to be able to help you answer

a lot of questions you may have,

such as asset mix, asset allocation.

There'll be able to look at your different

retirement accounts and help you understand

the tax implications, because on the surface

retirement planning is pretty simple.

It comes down to your expenses, your income,

your lifestyle needs, and basically

what you're looking to get out of your retirement.

But when you look into the individual details

that each person has with their different accounts,

that's where it becomes more personalized

and more complicated.

So I think you're going to get a lot of value

out of a fee only certified financial planner

that you pay an hourly rate to,

that way you can get unique information

about your personal financial situation.

At the end of the day here guys,

if you fail to plan, you're essentially planning to fail.

And I want to discourage you from doing that.

This isn't the most exciting topic

and it's certainly not on the top of my to-do list

but retirement planning is very important.

So I encourage you to take action on this advice today.

I thank you so much for watching this video.

I hope you've got a lot of value out of it.

Let me know down in the comment section below

what your thoughts are on this.

And if you made it to the very end, let me know too

because I'm always curious how many people stick around

for full videos.

Lastly, one last, thank you here to T-Mobile

for sponsoring this video.

I have a link down below,

if you wanna check out T-Mobile's essentials,

55 and up plan, which is a great option to

minimize your monthly recurring expenses in retirement,

to make sure that money lasts longer.

If this is your first time seeing me make sure you subscribe

and hit that bell for future notifications,

and on that I hope to see you in the next video.