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I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.

Really great video thank you

Lump sum will face immediately high taxes for the year. Pension will spread the taxes out on nany years. Do what is the best for your particularly situation. 😂🎉

I have a question I’ll be 41 when I retire and get $120k/year pension without taking lump sum or should I take lump sum of $420,000 and recieve a reduced $75k/ year pension?

Grey zone is still working 🤮

mine works out to 7.9%. Half of my pension includes COLA. I have no heirs. I feel more comfortable doing the monthly I think, paying a tax bill on the lump makes me feel sick lol. What to do?

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

if you die one month into retirement, your heirs either get that lump sum.. or 0.

What if you are single?

1:09 wrong… recasts do not affect interest rates, that’s a refinance. A recast resets the loan timeline and the payment is recalculate basted on time and loan amount. Recast typically make sense when you have a large one time principal payment

So your reaserch concludes retirement takes a lot of money. Brilliant

Interest rate on mortgage is 2.5%. Total disagree with you. Gonna down size as well with a few years. Make it with caveats. Not 100%. Set sail!!

I live in NJ and my property taxes each month are almost double my mortgage so paying off my mortgage wouldn’t really help when I retire. If this wasn’t the case I would stay in my home for a while after retiring but unfortunately I will need to sell.

Lump sum always and invest in index mutual funds. after you die you want the money in your pocket not the companies pocket.

what if you need to pay for a nursing home

Take the monthly and stiff your wife? If I want my wife to get my pension money the monthly payment is much less

I have this exact option in my company. Very useful information!

So the truth is that both sides are correct. WFH is awesome. And it can be done successfully IF you are already an expert at your job. If you are already an expert at your job, you are MORE successful working from home. I work MORE hours from home. I am not interrupted by people chatting in the office. I work during the time I would be getting ready for work and driving to work. I typically work through lunch and grab a sandwich in my kitchen and keep working. Also, as a manager, I can log off at 5 or 6 and start with family stuff BUT if an issue or emergency arises, I can log back in quickly and handle it. NOW THAT SAID, training people who are at home, or hiring inexperienced people as remote is VERY difficult. It isnt the same as a WFH person who's been doing it for 10+ years or in my case, 20. As usual, people are taking one side or the other, when in fact, it depends. Personally, I would rather have a team of experts, who are professionals that I can count on, NOT adding to their exhaustion with commutes, nice clothing, lunch issues, commuting home and for them to spend that extra energy on our customers!

Take the lump sum, tomorrow isn't guaranteed 😮

As a long time retiree: started work and 15, worked until I was 59, and am now 87, I concur with everything said in this video.

nice info

Sorry but gow did you determine the #s for the divisors? 23,000 for the DOW and 2,560 for S&P500?

My wife and I are divorcing, our 401k are almost identical and we work at the same employer. I want to keep the house and if possible, use a portion of my 401k to pay her out of her home equity….roughly $100k. If we agree and if the court orders it can I get a QDRO in place to tap just a portion of my overall 401k? Our retirement plan won’t allow me to touch it unless I quit or get a QDRO

Good information first time exploring this topic very insightful

garbage

How do you compute accounting for taxes? Meaning, do you use the lump sum amount computation with and AFTER TAX amount? Or before? Thank you!

More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.

40 now, and everything is paid for. Fortunately, I had a college economics teacher who taught me a lesson when I was 18 years old. That lesson was: you can't buy something else for every purchase you make. Having multiple sources of income is prudent, as is living within your means. I have a 13-year-old vehicle because it is all I need, I like it, and I can do whatever I want with it. My net worth is $4 million, and I can pay my bills without stress, but I don't live like I have that. I have no complaints.

It is “How never To Run out of money,” not ‘how To Never.’

More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.

Just take your core money from boring Mutual funds and put them into TSLY, QQQY, JEPY and IWMY. Around 40 to 60 percent div each month and you never touch the principle. Problem with the 4 percent method is that you could run out of money some day, this would last you forever. These funds are legit!

Thanks for the vid - this helps. With today's calculation - looks like my pension % works out to about 10.9%

Should you also pay attention to which mutual funds and other types of funds? You're leaving behind for your reinvestment in the consolidated iray?

he didn't really explain the dow divisor LOL OLOL OLOL

I am 70! X had military and postal pensions. I cannot find he has any social security wich is an auxiliary benefit that I got screwed out of correct???

Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k.

I have a fed pension with COLA

Retire in the Philippines. $3,000/mo is living like a king. $1,500/mo is good enough.

40 now, and everything is paid for. Fortunately, I had a college economics teacher who taught me a lesson when I was 18 years old. That lesson was: you can't buy something else for every purchase you make. Having multiple sources of income is prudent, as is living within your means. I have a 13-year-old vehicle because it is all I need, I like it, and I can do whatever I want with it. My net worth is $4 million, and I can pay my bills without stress, but I don't live like I have that. I have no complaints.

Building wealth from nothing involves consistent saving, disciplined spending, and strategic investments. Begin by creating a budget to track expenses and identify areas for savings. Prioritize paying off high-interest debt and establishing an emergency fund. As you build a foundation, start investing in low-cost options like index funds, and focus on continuous learning and improving your skills for better income opportunities.

I think of this way too much but thanks for this. I am 49 and can’t see myself working for the next 16-18 years

Thank you, Wes Moss, I'm currently working on this decision & your podcast simplifies the process. In today's financial markets with inflation, debt market & stock market volatility this information is very helpful.

Every crash /collapse/inflation or a recession offers an equal market opportunity if you are well prepared and knowledgeable. I've seen people accumulate up to $800,000 during crises and even pull it off with ease in a bad economy. Without a doubt, the bubble or crash has made someone extremely wealthy.

So if you have the 50:50 stocks/bonds split - when you take your annual withdrawal do you take if from the stocks or the bonds, a mix etc or does it not matter provided you realign to 50:50 afterwards?

Looks like this fund is now close to 4%. Thoughts still the same?

Dude, you are all over the board. There is a word, it is called "linear". Pls explain in a building block, linear fashion. Scrolling away now.

If you are financially literate. Lump sum. If you are not financially literate. Monthly payment

Hi, my company offers Medical attached to the monthly that they pay a certain percentage based off of years of service so mine would be 70% medical coverage. Should this sway my decision to take monthly vs Lump Sum? Thanks!

Most important to remember is that when you die so does your pension (single life annuity) and when you have the lump sum you have something to pass on to heirs. Inflation eats up your monthly checks over the years and makes the money almost worthless after 10 plus years if you live that long.

Thank you for this great video that explains the math and decision factors so clearly. My pension works out to 8% of the lump sum offer. I’m just worried because my company will be turning over the pension to a yet unnamed insurance company. Not sure how this will affect future pension payments, but I should be covered by the PBGC. Thanks again for sharing such valuable information.