Show Notes

• 00:00 – Intro: This Week on the YMYW Podcast
• 01:09 – We’re 45 and 44. Can We Retire in the Next 2 Years? (Peter & Joanna, NJ)
• 10:24 – Watch 10 Big Retirement Regrets to Avoid (Before It’s Too Late) on YMYW TV, Calculate your Free Financial Blueprint
• 11:23 – I’m 42 and I Work in a Toxic Office. Can I Afford to Retire? (Burned Out and Ready to Retire, NJ)
• 21:53 – Download the 2025 Key Financial Data Guide for free
• 22:32 – I’m 69 and Need $60k/Year for the Next 30 Years. Am I All Right? (Suzanne, MA)
• 25:19 – I’m 45. If I Never Earn Another Dollar How Much Can I Withdraw Every Year? (Maryland Chicken Man)
• 34:54 – Outro: Next Week on the YMYW Podcast

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Transcription

Intro: This Week on the YMYW Podcast

Andi: Today on Your Money, Your Wealth podcast 513, YMYW listeners in their 40s are ready to call it quits at work, become financially independent, and retire early. Can they afford to do it? Peter and Joanna want to retire in the next two years. Burned Out and Ready to Retire wants out of his toxic office. If Maryland Chicken Man never earns another dollar, how much can he afford to withdraw from his retirement accounts each year? And Suzanne in Massachusetts is 69 and needs $60K a year for the next 30 years. Is she all right? Click Ask Joe and Big Al in the episode description to get a Retirement Spitball Analysis of your own. I’m Executive Producer Andi Last, and here are the hosts of Your Money, Your Wealth, Joe Anderson, CFP® and Big Al Clopine, CPA.

Joe: Hey, what’s up, Big Al?

Al: Hey, aloha.

Joe: Yeah. In Hawaii, you’re looking good, man.

Al: Well, I’m more relaxed than typical, which should make for a better show. We’ll see, or maybe a worse show. I don’t know. I have not had the Mai Tai yet. That’s coming after.

Andi: Well, that definitely puts us in a better position.

We’re 45 and 44. Can We Retire in the Next 2 Years? (Peter & Joanna, NJ)

Joe: So we got, let’s see from New Jersey. “Greetings from New Jersey. My name is Peter. I’m 45 yo, and my lovely wife, Joanna, 44. We will both enjoy a good beer to you. Usually a local IPA or seasonal. Together we have 3 kids, ages 6 to 10. I’ve been listening for about a year while I run to commute to work and would love to spitball on my situation. Here’s our breakdown. My total income is $350,000 per year. I have a company contribution of 8% and contribute the max to my Roth 401(k). Joanna started a second career a few years ago and now has income of $75,000 per year. She contributes $500 a month to our 403(b). As a state employee, she says, she has paid health care that would contribute through retirement and will receive about 60% pension with inflated base COLA at 62. We spend about a hundred- or $10,000 a month. We’ll have the following assets. So Peter, he’s got $1,400,000 in a brokerage account. $900,000- so okay and an additional $900,000 in a Roth and additional $400,000 in a traditional 401(k)-“is that- what?

Andi: Correct.

Joe: Okay. Thank you. Anyway, “Joanna’s got $100,000 in her brokerage account, $100,000 in her IRA, Roth IRA, $15,000 in a 403(b). And then they have joint $100,000 cash. We got a $700,000 house that’s fully paid for and a 529 plan that has about $500,000 in it for the kids.” Wow, this guy’s 45?

Al: Yep.

Joe: What does he got? Man, that’s several million dollars.

Al: It’s a lot-

Andi: $3,000,000.

Joe: So future income, “Peter’s expected Social Security at age 70 is $3600 a month. Joanna’s expected pension at age 62 is $5000 a month. Joanna’s expected Social Security at age 70 is $3000. I’d like to explore retiring to take care of the family. Joanna will continue working until 62. Is it feasible to retire in the next couple of years?” All right. So they spend $120,000 a year, and Joanna makes how much?

Al: Yeah, she makes $75,000, Joe, and if you subtract out her 403(b) of $6000 and taxes, I just estimate about $9000, so maybe she nets about $60,000. Right. So if they’re spending $120,000 and she’s making a net $60,000, so their shortfall is $60,000. You divide that into the $3,000,000 they have, you get a 2% distribution rate, which for a 44 and 45 year old, I’m okay with that. If that’s what he wants to do, even right now, not even waiting two years.

Joe: Would you take 2% out of your portfolio every year at age 45? And that money’s got to probably last for 45 more years.

Al: If I had, if I had kids that, and I felt like I wanted to be there for them. Sure. Why not? I think the math works is what I’m saying. Now, on the other hand, I think at age 45, he may do this for a few years and realize maybe I want to do something else and that’s okay too. Basically the question is can I if I want to and I think he can.

Joe: I don’t know. I don’t know if he can or not. The number makes sense, but I don’t know how long that money’s gonna last depending on, he’s not working, 2% plus tax. He lives in Jersey. They got 3 kids. He’s spending $10,000 a month now, He’s got $500,000 in a 529 plan. I don’t know. Let’s say the market tanks. He doesn’t manage it correctly. Now he’s pulling 3% out. Taxes go up. I think it’s rich. At 45, I would not want to be pulling 2% out of my portfolio, but-

Al: Really? I disagree with that. I think that doesn’t even include Social Security and pensions.

Joe: At age 70? I know, but that’s 25 years from now. Who knows? It’s probably not even going to be there.

Al: I say try it.

Joe: I think he’s got, well, the guy’s making $350,000 a year. Can he get a job making $50,000? Do something online, work, you know, a couple hours a week. So they’re in school during the day anyway. Are they gonna do homeschool?

Al: So, well, not even considering the financial part, what’s he going to be doing? And that to me, that’s the second question that he didn’t ask, right? Which is, I mean, he asked, does it make sense financially, but you and I know that a 45-year-old and you’re, you and I are both past that. Right?

Joe: Not by much for me. I’m just putting them in my shoes. So let’s say I’m close to, I’m close to 45 years old and it’s like, all right, and I have two young kids. I have one that’s 3 and a half and one that’s 9. So it’s like picturing me retired with the kids taking 2% out of my portfolio. I think that’s a lose lose.

Andi: So Joe, would your thoughts have changed on this before you had the kids?

Joe: No, I just think 45 is too young and 2% burn rate. I think it’s rich. I think the math is flawed. I think they’re a good distribution rate for someone that is in their 60s is probably 3%. The 4% rule, I don’t know, given so many different studies that have coming out, I think it’s a good gauge to see how much money that you have. They’ve saved a lot, but I don’t know, I think that’s- to me, I would never do that. That would be a little bit too rich for me.

Al: Well, I wouldn’t do it either, but for the secondary reasons that you talked about. As far as financially, see here’s what I think may happen. I’m not going to predict, but what may happen is he does this for a few years. He starts to see his portfolio start to change- that 2%. I mean, if a portfolio over time, a globally diversified portfolio would earn 6%. Now there’s no guarantees. What if it loses 10% for 5 years in a row? How is that going to feel? And I think that’s what you’re getting at. And, that’s a valid concern. And if that happens, then it’s like, well, heck, maybe I’ll just go back to work. But I think it’s, I think the numbers are close enough that he can try it.

Joe: He’s looking at his statement and he sees $3,000,000. And he feels pretty good. Yeah. How about if that goes to $2,200,000?

Al: Well, then he goes back to work.

Joe: Right. It’s like, oh, he’s got a good job making, you know, $350,000 a year. Yeah, you’re right, Al. I mean, if we looked at just kind of this in a bubble of, hey, 2% out of the $3,000,000, that’s going to cover the shortfall, pay a little tax. It’s close. But. At 45, this money’s gonna last, $3,000,000 is a ton of money, but it has to last this family for probably another 40 years.

Al: Yeah, a long time for sure, at least 40.

Joe: But she’s going to continue to work, but she’s not going to say they’re going to be- so I don’t know. I mean, go for it. I guess. Yeah. If you want to take care of the kids, you want to homeschool the kids. You’re burnt out. You know, you got, you’ve done $3,000,000 at 45. You’re in the top 0.01% of people. So you’ve given yourself the luxury to do something like this. So what the hell? And I’m sure if he’s making $350,000 and he’s got $3,000,000, he’s marketable. In a couple of years, he could probably get a job pretty quickly.

Al: I would expect he’s got some skills that people might want. You know, it’s kind of Joe, it’s kind of like the FIRE movement. You know, those people retire sometimes in their 30s and then they end up doing blogs and YouTube videos and they make a lot of money that way. You’re probably right. You’ll probably want to make some kind of money, but I don’t think he necessarily has to, certainly at the beginning, I think he has to see how it feels and see what happens to the portfolio. It somewhat depends upon what the market, like if the market corrects over the next two or 3 years, it’s not going to feel very good. And I think that’s what you’re getting at.

Joe: What, I haven’t heard much of the old FIRE movement lately.

Al: No, not me neither. It’s still out there. I’m sure.

Joe: Financial Independence, Retire Early, right?

Al: Early. Yep. That’s it.

Joe: Yeah. People would live in their mother’s closet.

Al: So they, yeah, they saved 80% of their income.

Joe: Yeah, 85% of their take home, they eat Spam every day.

Al: That’s right.

Watch 10 Big Retirement Regrets to Avoid (Before It’s Too Late) on YMYW Tv, Calculate your Free Financial Blueprint

Andi: Have you ever heard the term “no regrets”? It’s a good way to live your life. Unfortunately, plenty of retirees have plenty of regrets. This week on a brand-new episode of Your Money, Your Wealth TV, learn from their mistakes! Joe and Big Al show you how to avoid the 10 biggest retirement regrets and to set yourself up to retire happy and secure. They also share retirees’ recollections on everything from lending money to boredom, to give you wisdom of the ages without having to learn it the hard way. Then, 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. Watch 10 Big Retirement Regrets to Avoid and calculate your free Financial Blueprint – you’ll find the links to both in the episode description.

I’m 42 and I Work in a Toxic Office. Can I Afford to Retire? (Burned Out and Ready to Retire, NJ)

Joe: All right, here we go. Let’s go to the next one. This sounds very similar. This guy’s burned out too, Al.

Al: Okay. We got a theme going.

Joe: I think I’m burnt out. This is actually me.

Al: This probably was you. You changed the name, didn’t you?

Joe: “I love the show, Joe, Big Al. Stumbled across-“

Andi: Oh yeah, Joe wrote this.

Joe: Yeah.

Al: Cuz he put his name first.

Joe: “I love your show, Joe.” So he stumbled across our podcast this year, hoping for a little spitball, looking to retire next year. “I’m 42! Single. Living in New Jersey.” Is this double New Jersey?

Andi: It is.

Joe: I think people are just getting burnt- It’s Winter. You know, it’s cold in Jersey.

Al: Yeah, they’re like, they’re not going to work.

Joe: I’m done. “He drinks a little Stella in the Summer and apple cider in the Winter. Net worth $2,250,000.” Good for you. Jeez. “He’s got a 401(k) of $1,000,000, Roth IRA of $150,000, brokerage account of $400,000. Cash, $700,000, earnings, makes $100,000 in interest and dividends is $40. He’s got $40,000 of expenses. He’s working in a toxic office and trying to see if I can afford to retire.” See, I’m with you.

Andi: Is your office toxic? Really? It’s that bad?

Joe: I feel the- that’s why Big Al’s in Hawaii. So let’s see. Here’s his plan. Alright, this is good. I like people that- he’s formulating a plan, a strategy. He’s like, alright, “age 43 and 51, he’s gonna have $50,000 expenses. He’s gonna have another $10,000 for insurance. He’s got a drawdown from $700,000 cash, CDs and bonds. Alright? Age 52 to 62. He’s going to have $80,000 in expenses. He’s going to draw down his brokerage account, assuming a 4% return now worth $600,000. All right. And then at age 62, he’s going to have $100,000 in expenses draw down. He’s going to have a $15,000 pension, $14,000 from Social Security. Then he’s taking his 401(k) and Roth IRA will be worth $2,200,000 by the time he’s 62. Does this work?” All right. “Plan to regroup and spend some time volunteering.” All right. So the other guy wants to take care of his kids. He wants to volunteer, take care of other people’s kids.

Al: I like it.

Joe: Cool. 42, guy’s got $2,500,000, single. What do you think? You like this plan, Al?

Al: Well, I’ll break it down. So if you’re spending $40,000, which it’s pretty hard to only spend $40,000 in New Jersey, I would think, but let’s just go with that number for the time being. He’ll have an extra $10,000 or so he thinks for insurance. So that’s $50,000. You divide that into about $2,300,000 liquid. That’s 2.2%. Our last one was 2%. It’s a little bit higher, but it’s in the ballpark. If you, let’s then go forward 8 years, because that’s what he’s saying, 8 years from now, so he starts with $2,000,000, 8 years from now, he’s drawing 2.2%. I don’t know what it’s going to grow. I just said, what if he only gets a net 2% growth just to throw in a number? Okay, and then he’s pulling out, you know, $50,000 per year. He actually ends up with about, I think, $2,700,000, if I did that math right. And then he’s got about a 3% distribution rate if he’s wanting to spend $80,000 into $2,700,000, you know, that’s again, that’s kind of on the margin in the early 50s, but it’s not that far out of whack. So, and then by the time he gets to 62, he’s spending a little bit more, but he’s $20,000 more, but he’s got $30,000 more of income based upon his assumptions. I think it’s, I think it’s potentially doable. It’s to me, it’s a little bit tighter than the last case. But it’s, it’s possible. And we’ll say some of the same things again, which is, if the market does well and cooperates, I think, he’s going to feel good. If it doesn’t do well, and we have some pretty big corrections, he’ll probably want to go back to work.

Joe: Yeah, I’m doing, he’s going to pull roughly $1,200,000 out of his $2,200,000 before he turned 62. So over half of his liquid portfolio is going to be gone before he’s even full retirement age.

Al: No, no, no. That’s considering no growth and that’s not reasonable.

Joe: I don’t, I think you’re way too optimistic. Have you ever heard of the lost decade? Have you heard of the lost decade? How about it means that the S&P 500, what did the S&P 500 do for that 10 years?

Al: Yeah, you didn’t listen to what I said. I said, if you go with a 6% average return of a globally diversified portfolio-

Joe: But I think you can’t assume that at 42, can you? If you’re pulling that much money out?

Al: Of course not. But if you go with just basic mathematics, it’s pretty close. The problem is the sequence of returns, right? If you have built let’s say there’s a lost decade. And there’s no rate of return for the 10, which is what you came up with. I think in 5 years, you’re going back to work because you’re just seeing your portfolio just get decimated. So yeah, 100%. In fact, that $2,300,000, you’re pulling half of it. Plus it goes down 20%, 30%, 40%. Yeah. Any reasonable person watching this would then go back to work. Right. So I’m not saying it’s guaranteed, but I’m saying it’s close.

Joe: Yeah. I think on paper, it’s a lot easier just to kind of run some of this stuff, but in actuality, there’s no way. I don’t think this is even close to reasonable just because if he’s fully, if he has to be at least 60% in stocks. Would you say to get a 6% return?

Al: Yeah, I would.

Joe: So at least 60% in stocks. And let’s say, and then the other 40% is in cash and bonds, if cash and bonds do 2% to 3%, All right. Then you have inflation running that 2% to 3% and then the stocks go down. Now your distribution rate is not 2.5%. It’s probably 4%. Yeah. I mean, I just think there’s so many different moving parts here for such a long period of time. And I think that’s the problem with like financial planning calculators. I think that’s, I knew I probably shouldn’t have done the show today. I told you I’m hot, I’m tired. I’m spicy.

Al: You are hot.

Andi: That makes for a good show, come on now.

Joe: But no, I think it’s, it just gives people false confidence a lot of times. All right, well here, I’m going to plug it into- who was the guy that was like, hey, well I plugged this thing into the financial, you know, the Fidelity financial planning calculator or whatever, and it said I was going to be great. And then you and I looked at it, we’re like, yeah, I don’t know. Right. I mean, it just depends on what assumptions that you put into this. So we’re assuming, okay, a 6% growth rate. That is a straight line growth rate, right? Well, you’re not going to get a straight line 6% growth rate. You’re going to get 20% and you’re going to lose 10% and then you might get 4%, then you’re going to lose 20%. Then you might get 25%. And then as you’re pulling dollars from these accounts, plus he has most of his money in a retirement account. And so he’s going to drain 100% of his brokerage account to zero. That’s going to be hard to do. You’re going to see that pool of money just go from X amount to zero. Psychologically, I think it’s going to be challenging for him to pull it off. But if we look at it again, if I plug this into a financial planning software, it will probably say yes. Or like a Monte Carlo, it might say, yeah, you could probably do this.

Al: Well, if you look at his brokerage account and cash and CDs, it’s currently $1,100,000. So if we use your math, right? So basically, he’s going to spend that, assuming zero growth, right? Yeah. So, so he can do it. He gets to 59 and a half before then. So then he could pull from retirement accounts. I get your point though, Joe, and your point is there’s so- the longer the time period there’s more chance for uncertainties and things that could happen that are not in your favor. And although it could go the opposite, we could have really good markets. And then you’re thinking, why didn’t I retire at 38?

Joe: Exactly. Right. It’s going to show, you know, he plays this thing out and then he’s got $5,000,000 and he’s like, all right, or he’s going to play this thing out and he’s broke by 55.

Al: Yeah. So, so I think when we’re talking about such a long timeframe, so in both examples, I was kind of doing the straight mathematics. The reality though, behind it is you have to react to what cards you’re dealt based upon the market, based upon what you’re really spending. Right. Right. And you may have to go back to work when you’re retiring this young. It’s just the reality of it. Or you may need to work part time if you start seeing your money slip away, particularly in a bad market.

Joe: He’s done such a great job. He’s 42 years old. You’ve got $2,200,000. You could work another 8 years.

Al: Yeah, but it’s toxic.

Joe: Find another toxic environment.

Al: He needs to come live in Hawaii with me. He’ll be much more relaxed. And then he can keep working.

Joe: Oh, yeah.

Andi: So that’s gonna really cause his expenses to go up.

Al: Well, that’s true. Good point.

Download the 2025 Key Financial Data Guide for free

Andi: As promised back in episode 511, the 2025 Key Financial Data Guide is now here and ready for you to download for free from the episode description.  Joe and Big Al use it daily themselves. It lets them see at a glance the 2025 tax brackets, capital gains tax rates, retirement plan contribution limits, tax on Social Security, Medicare premiums, and current credits, deductions, exemptions, distributions, and exclusions. All the numbers that affect your financial strategies as you plan for retirement. Just click or tap the link in the description of today’s episode to download the 2025 Key Financial Data Guide for free, courtesy of Your Money, Your Wealth® and Pure Financial Advisors.

I’m 69 and Need $60k/Year for the Next 30 Years. Am I All Right? (Suzanne, MA)

Joe: Alright, let’s keep going here. We got Suzanne from Massachusetts. “I drive a 2016 Lexus 350 GS. Alright. Dry wine. Dry red wine is my-“

Andi: Tipple.

Joe: “-tipple of choice.”

Al: You ever use that word before?

Joe: Tipple?

Al: Tipple.

Joe: That’s the first time. I didn’t even know how to read it.

Al: I never used that either.

Joe: Alright. Andi, is that what you use?

Andi: It officially means drink alcohol, especially habitually. Ooh.

Al: Oh. Ooh. I bet maybe you should know that word, Joe.

Joe: Oh, wow. Shots fired. “I’m 69.”

Andi: What’s your tipple, Joe?

Joe: Yeah. A little tipple. My tipple of choice. Who’s the lady that wrote in and was like, man, I’ll drink everything, even gasoline, or something?

Andi: I don’t remember that one.

Joe: “I’m 69 and working in healthcare on a per diem basis. I make $40,000 a year. I plan to draw Social Security at age 70. Estimated benefit is $48,000 a year. I have $1,000,000 in retirement savings with a mixture of annuities. I rent and have a small emergency fund of $100,000. I need $55,000 to $60,000 a year for the next 30 years. Am I alright?”

Andi: Her emergency fund is $10,000. And her retirement savings is in annuities and 401(k). You said $100,000 emergency fund.

Joe: Okay, she’s got $10,000. She needs $60,000.

Al: So we’ve got $1,000,000 in retirement.

Joe: Yeah, she’s gonna have $50,000 in Social Security benefits. She needs $15,000 from $1,000,000, $1,500,000 at 69.

Al: 1.5%?

Joe: I’m good with that.

Al: Oh, you’re good with something. I’m good with that too, but what if she lives to 110?

Joe: She’s still fine.

Al: That’s so different than a 42-year-old living to 80.

Joe: Yeah, 42 year old. Well, by the time that 42-year-old turns 80, the life expectancy, there’s going to be a magic pill that you’re going to live until like 150.

Al: Good point.

Joe: According to your boy.

Al: Yeah, my boy.

Joe: You know what I’m talking about?

Al: I know you’re talking about.

Joe: Okay. So are you, do you agree with me, bud?

Al: Yeah, of course. I’m good with this. 1. 5% distribution rate at 69. Yeah, it looks good.

Joe: Okay, good job. All right. We’re just going to keep plowing through here.

I’m 45. If I Never Earn Another Dollar How Much Can I Withdraw Every Year? (Maryland Chicken Man)

Joe: We got Maryland Chicken Man. We’re a little, we’re a little late on this one. “Happy turkey day, Joe, Al, Andi.” Whoopsie.

Al: Whoops, yep.

Andi: Well, it just goes to show how many people have been emailing us.

Joe: “I’ve been listening to your podcast since the beginning of 2020. I work alone on my chicken farm every day, so I listen to online books and your podcast. Keeps the boredom at bay. I knew that my career wouldn’t make it until 59, so I started investing into a brokerage and traditional IRA early in life. I’m 45 now and as good as married, but not legally. We have no kids and we are not going to in the future. Just to spoil a 10-year-old lab and we have expanded a puppy family. I estimate in 3 years my contractual job will end as I would have to upgrade my infrastructure to continue and the return on investment wouldn’t be worth it. Never did like it anyway.”

Andi: Another toxic workplace.

Joe: Toxic. So, here’s the breakdown. He’s got, let’s see, a couple million bucks it sounds like. “$1,700,000 in our brokerage account. He’s got an IRA of $100,000. Solo 401(k) of $100,000. Roth IRA, $8000, just opened. He’s got two rental properties worth about $450,000. Not going to sell. Is there next door to me. They profit $15,000 a year. Business assets are land worth $500,000, which I’ll be happy to sell, but not right away. Zero debt, and not going to get any. My income is 100,000 a year. I max out my solo 401(k) of about $40,000 a year. Roth IRA is $7000, HSA $4000. After my job ends, I’d like to withdraw an amount to get to the top of the 12% tax bracket- to get to the top of 12%. FIFO on the brokerage is 170% earned.” FIFO on the brokerage is 170% earned.

Al: I think what he’s saying is-

Joe: first in, first out?

Al: Yeah, well, yeah, first in, first out, but I think what he’s implying is that most of the brokerage was growth and earnings. And that’s all I can, that’s what I, that’s all I get from that.

Joe: He’s got 170% rate of return over the years of cumulative return?

Al: Well, I suppose you could look at it that way, yeah. So if his account was whatever, $300,000, 170% is earnings and the rest- I don’t know. Who cares? Who knows?

Joe: All right. He’s not a FIRE guy, but I love FI-

Al: Financial independence. Yeah.

Joe: “I would like to use up the assets potentially because I have no heirs. $80,000 withdraw per year is what I’m looking- plus $80,000 withdraw per year is what I’m hoping for plus the $15,000 for the rentals. Question, “If I never earn another dollar, how much can I withdraw every year? What would be the best strategy to do? So just a spitball, please. I drive a Silverado and a top off jeep wrangler. I like Coors Light, Sam Adams, and occasionally a little vodka and pineapple over crushed ice. Make up a funny name for me, please. Don’t worry, I won’t stop listening if you don’t answer my spitball.”

Andi: That’s why he got called Maryland Chicken Man.

Joe: The Chicken Man. Maryland Chicken Man.

Andi: Tells you everything you need to know.

Al: Okay. So we got another person that wants to retire young, Joe.

Joe: If I knew this was a FIRE show, I wouldn’t have showed up. Who is that guy, Cupert?

Andi: Yes.

Joe: Do you think he’s broke?

Andi: I don’t know. Let’s see if Cupert is out there still.

Al: Was he the real estate guy?

Joe: Yeah, that just leveraged everything.

Andi: Yeah, he did – He did Airbnb and all that, didn’t he?

Al: Oh, I don’t know. something like that. Yep. Okay, so Joe, to recap. He’s 45, he wants to retire in 3 years. 48. Got $1,900,000. I’m just doing the math, don’t- before I answer, I’m just doing the math. So, 3 years, 6% return. He then about $50,000 a year, and his savings 401(k) and Roth, he’d have about $2,400,000 and, let’s say like what, you know, what. What would be a distribution rate mathematically for a 48-year-old? I’m going to say 2.5%.

Joe: Yep. I agree.

Al: So I get $60,000 and he’s got $15,000 from a rental. I think he can spend $75,000. That’s what the math says. But then trying to- I think how you’re going to respond to that, yes, it depends. It depends on what really happens with the market retiring this young. There’s a lot of variables that may cause you to have to go back to work if the market doesn’t cooperate or if you spend more than you think or any number of things.

Joe: Well, this guy is, I think he’s a little bit different than the other two.

Al: In what way?

Joe: Because he’s like a small business guy. He works at a chicken farm.

Al: He doesn’t want to keep working because he’s got to reinvest in the farm and he got to be expensive and he doesn’t even like what he’s doing.

Joe: Right. But he’s working with chickens. He works on a chicken farm. He doesn’t have a cushy office job that’s making, you know, a couple hundred thousand dollars a year with a very toxic office environment. He’s got a toxic environment because the chickens are like-

Al: Have you ever worked with chickens?

Joe: They probably don’t smell great.

Al: That would be hard to work with chickens for 30 years.

Joe: Oh, yeah, but what I’m saying that he’s got rentals, the debt is paid off, he’s got cash flow, he’s building assets that will, you know, give reoccurring revenue. I think if he did this, and I don’t think he would do this. I think he’s going to start another business. I think he would do another side hustle. I think this guy would do, you know, different things. And I think he’s capable. A lot of people can’t build a business or, you know, do things, I think like the Chicken Man does. If you work in a, in an office and you have a W2 job that made your skill, which is phenomenal, I think that’s a skillset where you got someone that can kind of, he’s making a lot less money, mind you. But I think he got, he might have a little bit more grit where, I don’t want to go back to the office, but I’m going to, you know, raise llamas.

Al: Right. Yeah. And I’ll feed off of what you just said. And that is, people that are self-employed, you have good years, you have bad years, you’ve learned how to live within that.
As opposed to someone that gets the same salary year in, year out, maybe a 3% raise or whatever. It’s a little tougher to make those quick course corrections. So, I think I’m agreeing with what you’re saying.

Joe: Oh, you think you are. All right.

Al: Yeah.

Andi: Okay, so to address the question of whether or not Cubert retired, he apparently did in June of 2023.

Joe: And was that his last blog?

Andi: No, he is still blogging. His most recent one was December 27th, and it says, “Retiring early? Better get familiar with Roth conversions.”

Al: Wow. Oh.

Joe: He’s probably still a big fan of the show.

Andi: I bet so.

Al: Probably. I think we’re done, right, Joe?

Joe: Yeah. You know what I did? I went ice skating with my kids.

Al: Oh, yeah.

Andi: Were you actually on skates?

Joe: I was on skates, yes. But it wasn’t ice. It was plastic.

Al: Really?

Joe: Yeah, I was at a hotel in Del Mar. So, we had dinner. It was nice. Kids wanted to go ice skating. I’m like, I’m from Minnesota. I can ice skate. Guess what?

Al: Not so much on plastic.

Joe: I cannot ice skate. I took a header, I hit the ground so hard, and I bruised like 3 ribs.

Andi: Oh no!

Joe: I’ve been miserable for like two and a half weeks. I can’t sleep. Playing golf, I was like, hey, we got some time off of work, I’m gonna play golf every day. Nope.

Al: Nope. Nope. Well that’s too bad.

Joe: Yeah. So I got an excuse for being a little ornery today.

Andi: Ice only next time, Joe. Maybe you need ice on your side.

Al: It makes for a better show, I think. Just keep getting injured.

Joe: Yeah. Sounds good. All right. Very good. Thanks, Al. Thanks, Andi. And have a good trip, Al. Be safe in Australia and New Zealand and everything else.

Al: Yes. I’ll be back in a couple weeks.

Joe: Yeah. We’ll see. Probably a month. Okay. We’ll see you later.

Outro: Next Week on the YMYW Podcast

Andi: Listen next week for more “spicy Joe”, as the fellas spitball retirement for Mike and his wife in Tampa, and Kate in California. They’ll also answer some questions from our YouTube viewers on Roth conversions, tax planning, and gold. Do us a favor and help other people find YMYW: leave your honest reviews and ratings for Your Money, Your Wealth in Apple Podcasts and all the other podcast apps that accept them, listen or watch us on Spotify and YouTube, and meet me in the YouTube comments to join in the conversation. You’ll find all the necessary links in the episode description.

If you’re worried about outliving your retirement savings and wondering if you’re on track, get a free financial assessment from the experienced professionals on Joe and Big Al’s team at Pure Financial Advisors. They’ll go beyond a simple spitball to give you a comprehensive analysis of your entire financial picture and your risk tolerance to help you create a customized retirement plan that aligns with your needs and goals. Click or tap the free assessment link in the episode description or call 888-994-6257 to schedule your meeting, either in person or online.

Your Money, Your Wealth is presented by Pure Financial Advisors, 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.
_______

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