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Great points, James. I'm often amazed at what people think they need to spend $$ on.

Great global comprehensive analysis...excellent notes.

Great informative video!

if one hates working ...

My investment pay me more than enough to live on right now, by about 4x expenses. Social Security wouldn't be able to support me at all, at any age. So my investments are much more important. I still might delay taking SS if I decide roth conversions are needed. Then again taking SS early would help protect my investments from a market crash, and negate needing to do roth conversions by just delaying roth withdrawals until much later. Still have a couple more years to decide.

'It's not just our net worth that makes us feel wealthy, it's cash flow' - so true!!!! Recently, I've been deep into my financial reviews and adjustments to my plan. I've felt this strong. My net worth is great, but the cash flow stresses me out. It took me some time to figure this out - now I've experienced this and agree 100%!!

SS is going to be bankrupt in less than a decade. This makes no sense.

Some people will never feel wealthy even when they have millions of dollars because they lack contentment.

The biggest assumption is SS will even be around in it's current form or even at ALL. If you are GenX or younger you are screwed

Bill and Susan sound like the kind of people that have sex once every 120 days through their pajamas with the lights off after a mandatory 4 minute Listerine gargle. I've literally never felt bad for rich people before this video. So sad.

The big question here I think was missed is if the advise is a fiduciary or simply an “advisor.” There is a big difference, a fiduciary has to legally provide you the best advice for your financial situation, a “financial advisor” has no such obligation. They could steal you into higher fee managed funds or funds in which they or their employer have a vested interest (a higher commission). The best thing I ever did was to make sure I was in low cost index funds. I might make a fraction of a percent less, but I’m not paying out large management fees on statistically insufficient gains. The only fund/advisor that ever consistently beat the market enough to justify their fee was Bernie Madoff and we all know what was really going on. Low cost index funds, regular deposits, and let it ride for a few decades. Time value of money works in your favor.

Having a good financial planner is good advice simply because you do not want to use your retirement years managing your portfolio. At this stage you simply want safe very low risk investments which any bank can do for you. Don’t get caught up with the fast talking intelligent sounding persons that promise to make a high return, you don’t have the time and frankly you do not need it. Learn to live with what you have.

I am worried I won’t have enough saved for retirement, it’s a constant stress.

I retired at 62 after teaching for 23 years. I never looked back and regret nothing. I have had time to watch my grandchildren grow up and to form really strong relationships with all of them.

My test for being wealthy is feeling like I can afford to fly better than coach class. By that measure, I’m not sure I will ever get there.

Excellent way of thinking about how to align money and lifestyle with what’s most important to you!

Great point and I have been thinking the same way about our retirement. When looking at can you retire don't look at net worth look at your expenses and income (cash flow). For example if you own a home having it paid off does increase your net worth but more importantly it reduces you expenses and gives you some protection from inflation. Our retirement plan has been to look to increase income, reduce expenses, basically increasing our cash flow. For example I am retiring in 14 days at 67 1/2 but will take my SS at 70. This will cause us to withdraw a more from our investment for the 1st 2 1/2 years of retirement. After SS starts we can reduce the amount we will withdraw from our investment for the rest of our life. It will also help protect us from 1. Living a long life 2. Inflation (SS is adjusted for inflation and having 24% more they amount we will get from the inflation adjustment will be more) 3. When one of us dies.

It's a matter of perspective. Someone who has never been wealthy shouldn't be part of the survey. It's like asking a virgin what sex feels like. They can describe something what they think it might be like... but unless you had sex, you can really accurately explain or describe it.

One of your best videos James ! People need to wake up ! As i read in a book: the value of money decays with time.

I hate work. Ive hated every job ive ever had. So ive decided to work as much and as hard as i can so i can retire at 35. The math right now is saying 37 so im a bit behind, but its still better.

I think my 1380 a month would probably take me far lol

People want to travel when they retire. Screw that. Traveling is extremely stressful, especially in or near bigger cities. I hate people, so travel isn't for me. I'll take a slow, simple, quiet, boring life around Nature and do my hobbies to stay busy.

The notion that couple with pensions having a capitalized value well north of a million dollars has no assets is a gross distortion. You often see this used to imply that, for example, a pair of retired government employees with $3 million in combined pensions (measured as if these were private annuities) have less wealth than a private sector couple with $2 million in 401ks. This kind of categorical error infects far too many net worth studies.

I would argue that $575k should feel quite ok to a 70 year old, much more than, say, a 60 year old. They are, after all, in the spend-down phase and usually don’t have a lot of years left. $2.2 million “feels wealthy” because you’ll probably have more money when you die than you have now, with an upper middle class lifestyle. Basically, you can’t run out of money unless you’re stupid.

and this comes from a turd that doesnt know shit about it.

It all depends on where you live. If you live in West Virginia, you need very little to retire. If you live in LA you need a lot to retire. Also, depends on your kids. If they’re still financial,y dependent on you, then you need even more to retire. Also, depends on your living arrangement. Do you have a mortgage or not? My rule of thumb is to have about the same income in retirement that I had while I was working.

$1 million at age 60 or 65 isn't close to being wealthy; it's the bare minimum.

A generation is about 20 years. A generation is a cohort that has had similar experiences over the course of their lives

Cash flow is hugely underrated in retirement planning. The idea of retiring dept free is a fundamental misunderstanding. Lots of people can do much, much better letting their mortage run and keeping the money in their own hands instead of giving it to their bank. People almost never have financial issues due to lack of income - its lack of liquidity that wreaks havoc in people’s lives. Remember you can only borrow money if you have money!

Silly video. I would consider myself wealthy if I had $25-30 million. And that is trailer park wealthy.

James - Thanks for all your videos. Very informative! Wife and I are 58. Teachers. Considering retiring in 2 years and researching now by watching a lot of YT videos. Our net worth is comfortable. The thing that is SUPER hard to find on YT is how our large pensions factor into both our cash flow and Net Worth. Would love a video on that James.

Annuities are the biggest rip off.

Okay, I am getting advice from a youngster on when to take Social Security. My father took it as soon as he could. Never believed in it, but would have been eating cat food in retirement if it had not been for SS. My parents had a very good retirement. Not exorbitant, but they enjoyed their free time within their means. Father got colon cancer at 72, 10 years after he retired. Had colonoscopy and lived for 10 more years. He had excellent medical care thanks to Medicare and Tricare because of his military service in WWII and continued service in the Reserves, that gave him a military retirement and health care. Here is my take on when to take SS. My number is 82. My dad and Uncle died at 82. I was in military and fortunately retired. I dragged my wife around the world, preventing her from establishing her own career. As a result, she is taking SS at her earliest time. It is very minimal. As such, because we have been very frugal, we have enough in savings to support our retirement. Total reason I have deferred taking SS retirement until 70, is 1) fortunately because of our frugal lifestyle I don’t need the money. 2) Because my wife had to limit her career earnings, she will receive my SS benefits when I’m gone and I believe an 8% return between 62 & 70, I would take any day of the week. Really would enjoy your response.

This video benefited everybody and was explained very well. Thank You

😂 2.2 M to feel wealthy 😂 That’s cute poor people. No it don’t make you feel wealthy one bit. What’s wealthy is the inflation adjusted 30 M Is there idea of wealth paying for your cat litter and affording rent ok? 😂 Sorry I’m just laughing as a wealthy person myself and being around wealth. . You need a lot more than you think / you have extremely low expectations for your life. You decide what side of the fence you want to be on

Cash flow as Kevin O’Leary says. I like having cash flow and net worth a perfect combo.

Great example of a balanced life. Thank you

It’s interesting that the oldest baby boomer is nearing 80 years old vs the youngest which is just over 60 🤔

What ever the number is, it’s always more than I got.

A simple excel spread sheet makes it clear. Unless you plan or have to work, or didn't pay in for any serious time, take SS at 62.

Great video. Just subscribed!

If you feel wealthy with only a 500K net worth close to retirement, you’re smoking the ganja

How many times are you going to switch back and forth between saying “median” and “average?”

Isn’t it fairly easy to turn the non house part of the net worth into cash flow? Once you have enough money outside the house, do you really need to worry about cash flow?

“Comparison is the thief of Joy” From a financial perspective, most folks likely “feel wealthy” in direct relationship to the amount their income exceeds their needs. These values will vary greatly by person.

$692K Baby Boomer vs $560K overall… that’s “not significantly different”? For most folks if their net worth or wealth rose by 25%, they’d consider that petty “significant”!

My dad died of cancer rapidly a few months before he would have gotten his SSA/Medicare. He worked all his life until 6 months before his death.

I’ve never understood these groupings of people like boomers. There is an 18 year difference between the oldest and youngest. That is a huge difference. We should just study by decade or smaller group. The information and studies have no value.

The number is going to vary for different people. Prior to retirement, I never felt wealthy. Even after retirement, our numbers would not impress most people. However, our modest home and two cars are paid, and we have no other debt. We have some money in investments, savings, and an emergency fund. Cash flow includes my social security income and a small annuity, which are enough to cover our monthly living expenses. That leaves our savings and investments free to grow. It may not seem like much on paper, but it sure feels like wealth to me.

Thank you for addressing the difference between net worth and cash-flow! Recent retiree here, still struggling to achieve the equilibrium of being prudent and making sure not to run out of money and giving myself permission to spend some "fun" money. It is not easy to undo the mindset of saving, saving, and more saving! :)