Dude, you’re a friggin machine. Love your hustle. Thanks so much. Just wanted to let you know you make a difference.
@TdaddyRed
2 ай бұрын
This is a perfect example of how the financial media has brainwashed folks to believe you can’t ever touch the amount you put into the “nest”. Why not? Simply because it’s best for the brokers and firms if you never touch the principal. Sure it’s possible to go bust if you are reckless with withdrawals but most people disciplined enough to accumulate a significant nest are likely to be disciplined taking from it. There’s nothing wrong with leaving a legacy smaller than what you began retirement with.
@wisgolf1185
2 ай бұрын
Not spending my principal because income from money market fund, stock dividends, annuities, rental income (2 condos), and wifes $1038 per month from SS is adding up to $100K per year. We spend 60K per year, so we are still accumulating. There isn't anything we want to splurge on, so will keep on the current plan. BTW - those that are serious about income from stock dividends are doing much better than 1.5%. We have 213K in dividend paying funds which are getting us 8% in annual dividends. Some of our stocks include VZ, RITM, TXO and MPLX. Most of our stocks have had capital gains in addtion to the dividends. BTW - am 62 years old and have been retired for 3.5 years.
@juangarcia8828
2 ай бұрын
Social Security is Federal welfare for the elderly
@HeritageWealthPlanning
2 ай бұрын
Welfare…🤣
@juangarcia8828
2 ай бұрын
@@HeritageWealthPlanning Yes. One person pays a tax to the Federal government and another person, based on some codified plan receives a benefit. The benefit is totally the result of the tax paid by someone else.
@Gary-rh2tc
2 ай бұрын
Josh, I took some gains when good and invested in some cd’s and cash. 2 years later, my investment is back where it was.
@TheBeagle1956
2 ай бұрын
It all depends on how much you have invested and what you spend. At 68, we bring in $165k/yr in dividends, $61k in interest, $49k in SS and pension, and my wife hasn’t started her SS yet. So yes, we can live off of our investments easily. We’re setting up our grandkids, some nieces and a nephew with college funds, and a custodial account for each grandkid. We’re spending down our taxable accounts and letting our Roth accounts reinvest the dividends so they grow. One more Roth conversion next year and we’ll be done, using the rest of our IRAs for charity.
@2anonymous
2 ай бұрын
You have an impressive principal to spin off those kind of numbers.
@TheBeagle1956
2 ай бұрын
@@2anonymous I’ve been doing this for a while. We’re both 68yo, and time in the market is the best investment tip there is.
@theb190experience9
2 ай бұрын
Josh, Changed the way I look at retirement. Wish I had caught your videos earlier. Keep up the good work. Oh, and you are soooooo handsome......
@Lolatyou332
2 ай бұрын
I'm one of these people who'd want to mostly be able to live off the SP500 dividend, though I wouldn't just do the 1.5% ultimately. It's more just for planning for worse case scenarios and it'd be more so where 1.5% dividends is essentially your baseline expenses. So it's a floor and ceiling withdrawal strategy, if markets are down or flat you live off the dividends, if the markets are up you live on a dynamic amount up to a maximum ceiling which would be a percentage of your portfolio. One additional benefit of this strategy is that it gives you buffer room to do Roth conversions and tax gain harvesting at the same time, as if markets are down it's going to be more tax effective to do Roth conversions / tax gain harvesting. I'd only consider it as part of an early retirement strategy where you expect to have A LOT of money saved (3-4+ Million). Otherwise if you do 1.5% your whole retirement, yeah you'll see close to 5-6% gains in income every year but you'd also just die with WAAY too much money which is a terrible idea if you are pinching pennies your whole retirement.
@jimk59
2 ай бұрын
Don't fly coach so your kids can fly first class! You earned it, so spend it..
@daveharness70
2 ай бұрын
I'm spending a bunch before taking SS. Generational wealth is great, but how many families actually pull it off?
@penelope5500
2 ай бұрын
About, oh idk at least 20 yr's. ago, I worked a temp. job at the trust dept. of a bank. So, I was able to read a lot of wills of wealthy people. And one thing that struck me was how many of them did NOT leave their money to their kids.
@southlove
2 ай бұрын
@@penelope5500I can see how that would happen. Didn’t use to think that way but family dynamics change.
@genxx2724
2 ай бұрын
@@penelope5500 I met a banker who worked in the trust department. She told me some people set up a trust to match the beneficiaries’ earnings each year. Each beneficiary submits his W-2, and the trustee cuts a check. I thought that was a good idea. It rewards work.
@genxx2724
2 ай бұрын
@@penelope5500 I know an estate planning planning lawyer who is not going to leave an inheritance to her children. She is quite religious, and her daughters were children when she told me this, so it’s not as if they had done anything wrong. She simply said, “You have to make your own way in the world.”
@cutehumor
2 ай бұрын
@@genxx2724I have the same mindset. I worked hard and saved and invested. I see adult kids waiting for their parents to die to get the inheritance. It makes me mad to think as a parent my kids want only money from me when I am old and sick
@dforrest4503
2 ай бұрын
If you have decent returns and can be flexible with spending in a down market, I would absolutely spend principal if it gives you joy to do so. If you don’t need it to enjoy retirement, then don’t just wastefully spend it.
@bwhite9993
2 ай бұрын
i am so touching my principal (on my right capital schedule)... im just going to watch my account balances and make sure they are on target with the budget...
@July.4.1776
2 ай бұрын
Go for the gusto take what you have at age 62 divide it by 20 that will get you till age 82 if you’re a male add 5 additional years if you’re a female. Every year after divide by that number 19,18, etc. 😎😎
@brucef1299
2 ай бұрын
Will need to run this past you at some point before 2025 retirement, but I'm planning to spend down all non-ROTH retirement accounts from age 62 to 75 and avoid RMDs completely. Social Security deferred to 70 for max benefit plus residual ROTH retirement accounts (invested in income producing investments) to provide my living expenses from 75 to end of life. If I feel a financial pinch at any point, I'll sell something from a taxable account and take the long term capital gains 15% tax hit.
@livingontheedge8680
2 ай бұрын
That is our plan.
@thomasmoshier3920
2 ай бұрын
Oh Josh! Your dad died last year and lived a hard life. Your mom is still with us and is a heavy smoker. Sharlott’s got you on the straight and narrow living a clean, healthy life. You’ll live north of 85. I wouldn’t spend that principle too fast. On the other hand, you could talk yourself into dying early. Leaving Sharlott and the pool boy with all that sweet, sweet KZitem money…….
@randymillhouse791
2 ай бұрын
That's like asking what's wrong if Mr. Winkie shrinks a few inches.
@jdgolf499
2 ай бұрын
Agree 100% with taking principal from time to time, however, as retiree, I have about 1/3 of my portfolio in dividend payors, and the average yield is abou 4% at today's prices. At cost, I'm at around 5.3%. I have holdings such as SCHD (etf), VZ, DTE, DTM, CAT, LMT, MO, MAIN, BX, and BKH, to name a few. I don't see the s&p as a dividend play.
@jameslongstreet5139
2 ай бұрын
Keep em coming, Josh...
@Mahan1914
2 ай бұрын
Kudos. Psychologically, it seems to make sense to not withdraw principal, but in reality, the optimal withdrawal strategy is dependent upon many factors unique to the individual and their spouse/family situation. That's what I like about this channel, the information is not "cookie cutter", but rather, information is presented that emphasizes options based on various scenarios/conditions.
@mj625
2 ай бұрын
Keeping a portion of your money in a covered call ETF like JEPI, within your Roth IRA, is another option for people who want higher yield income. I would never heavily rely on the SP500 for dividends.
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