Good afternoon, Josh,
I know you prefer shorter emails, but here goes anyway.
In case you don’t remember me, we had a planning session on July 1, 2023. At that time, I had bought into the prevalent opinions of most retirement “experts.” I believed:
- We needed well over a million dollars saved, and while diligent about saving for retirement, that threshold was still beyond us.
- I had to wait until age 70 to take Social Security to have a monthly income to support my lifestyle.
- My expenses would continue to rise throughout my lifetime.
- I could not afford to retire!
My wife, Jane, stumbled upon your YouTube channel and shared it with me. In the first video I watched, you challenged the notion of expenses increasing throughout retirement. You straightforwardly stated, ‘Show me the evidence!’ This simple question, which I had never considered, led me to reevaluate my retirement planning. I had always assumed that my expenses would continually increase with inflation. But what evidence supported my carefully crafted spreadsheets with moderate returns and ever-increasing costs that made retirement seem like a pipe dream? I met with my investment advisor, who ran Monte Carlo simulations based on the 4% rule and little else, and we ran out of money. With the knowledge I had before watching your videos, I determined that I could not retire anytime soon.
Later, I watched a video where you pointed out that most retirees are content with their retirement, even though they have saved much less than the experts recommend. I realized that you were right. Every retired person I know is happy, other than wishing they had done so sooner. Watching several more of your videos led me to buy your book, then your online course, and eventually schedule a consultation with you.
We learned:
- Rules of Thumb are great starting points but should not be the only considerations.
- Concentrate on our projected expenses rather than on how much we have saved.
- More often than not, attempting to achieve a 99% likelihood of never running out of money results in leaving a significant legacy rather than enjoying life now.
- Sometimes, even the best investment advisor is incentivized to maintain assets under management rather than create and use a rational spending plan that may draw down savings over a lifetime.
- Leverage what we already have in savings and social security.
- Allocate funds for both short and long-term needs.
- Retirement is not a distant dream, but it is possible sooner rather than later.
You showed we were in much better shape when we consulted than I assumed. You asked me a question I had never considered, ‘If you won the game, why keep playing?’ I am blessed that I didn’t have a ‘crappy old job.’ I worked for a good company, had a great boss, and a team of coworkers I respected. Even so, I lacked freedom and had come to value time over money. As of August 30th, I chose to prioritize time, and I am much happier for it. Thanks for providing me with the clarity to retire without fear. The next phase of our lives is just beginning, and I am genuinely excited. Your advice has given me the courage and belief to retire and led to the happiness that comes with it.
When we first started watching your YouTube channel, you were a lone voice in the wilderness. You emphasized the importance of good planning, reasonable savings, living within our means, and the flexibility to adapt to changing conditions. This last point, about adaptability, has been particularly eye-opening. It’s not about having a considerable sum in the bank, but about being open to change and adjusting our plans as needed. Now, other financial vloggers are coming around to your way of thinking.
Sadly, many other so-called advisors have increased their recommendations for minimal savings to more than a million dollars, precluding a significant portion of the population from retiring. Let’s hope those potential retirees have someone as smart as my wife who says, “You should listen to this guy!”
Thanks,
Jane and John