Jame's 5 Common Regrets... 1. "Dream Home." 2. Unnecessary Insurance. (Annuities and LTC Insurance Policies) The WRONG Ones. 3. Investment Property 4. Financial Gifts to Adult Children 5. "Trendy" Retirement Trips Another excellent video from James.

Retirees who remained in their starter homes seem to have been able to retire in these homes. I've seen retirees who have sold, moved up, bought "up", and sold several times. And...they now are in rentals. This is what I've seen. Good luck to all of us! 👍😊

@user-bt9cm7ze4c

4 күн бұрын

That is kind of my goal. I've made several million dollars trading up in homes. My current home is worth 1.25 M and i have two rentals worth 250K each. When i cash out of EVERYTHING i plan on investing the money and using the cash flow to pay rent to someone else. This way i can pretty much move whenever i want and not have to worry about repairs etc etc.

@nikij.6058

4 күн бұрын

I’ve lived in my 1950s ranch 1560 square feet for 26 years and will retire here too!

@dqretirement

4 күн бұрын

It's interesting to see the different paths retirees take with their housing decisions. Some find that staying in their starter homes allows them to retire comfortably without the financial strain of larger mortgage payments or rent.

@Laura-kb5sr

2 күн бұрын

Haha, yeah, in 1999, my husband and I bought our first home; our realtor told us to save her contact info for when we wanted to move up from our "starter home." We had two kids and it sometimes felt extremely "cozy," but any bigger place would've meant at least $1K more per month mortgage, and we always had things we preferred to do with that money (including going back to school for a more fulfilling career, cutting back work hours to focus on family & community activities, and saving for retirement). Now we don't feel like we should "downsize" (to what?!). Though I do wish we'd listened to her warning that with 25+ steps to reach the front door, we wouldn't be aging in place.

You forgot the Big Yacht or the Big Motorhome. It's fun at first and then it's another anchor.

@muxi0121

4 күн бұрын

I expected to see this on here for sure

@dqretirement

4 күн бұрын

Absolutely, larger investments like yachts or motorhomes can be particularly demanding in terms of upkeep, storage, and overall maintenance costs. What may seem like a thrilling adventure at first can indeed become a significant responsibility and financial burden over time.

Great video and advice. The kids and Grandchildren can fight over what’s left when I’m gone. They need to support themselves.

It's over 90 degrees where I am. Your long sleeve, heavy, flannel shirt is killing me.

With interest rates well under 4%, we will keep our original home and investment duplex. We can rent our “dream homes” whenever and wherever we want to knowing we will always have our base property to fall back on.

I’m watching this on our last night of a 17 day trip in Europe. Half of it was on a cruise of the Norway coast, and half of it was our own exploration of castles on the Rhine river. Both required a lot of time of research and effort, there were definitely moments of stress, but I think all of that is true of anything you want to be good at. I loved the cruise, but I also loved traveling independently. I don’t think travel is for everyone. we all have our preferences.

Great content. Been following you for several years. You provide a real perspective on retirement that others don’t always address.

Buying expensive toys without renting at least a few times or seasons first. RVs, trailers, boats, touring motorcycles, etc. We probably all know folks who dropped major cash on buying something they had never tried or only tried once, only to find the reality of the experience to not be what they expected. The toys gather dust or soak up major maintenance expenses for years, or are sold back for a fraction of what they cost.

@everlastingarms3065

4 күн бұрын

Excellent point about renting first. I've been looking at RVs, and the price is daunting. Thanks for this.

@dqretirement

4 күн бұрын

You're absolutely right. Buying expensive recreational vehicles or toys without first renting or trying them out can sometimes lead to unexpected realities.

Good calls and definitely no what the other finance channels are talking about. I laugh at people talking about their "forever homes". There are often four homes in our lives. 1. The starter; 2. The larger home when kids get bigger; 3. The down-size when the nest empties; and sometimes 4. The retirement home. Let's not talk about the old folks home!!!

@dqretirement

4 күн бұрын

You make a great point about the different phases of homeownership that many people go through in their lives. Each stage often corresponds to different needs and circumstances, such as starting a family, accommodating a growing family, downsizing once children move out, and possibly transitioning to a retirement home later on.

Great channel. So grounded and realistic.

Great list! Others to approach with caution are RV, sailboat, 2nd home. Rent first and multiple times before purchasing. You may find out you can still have the dream but only when you are enjoying it and not the rest of the year you must maintain that big purchase.

Thanks James for another video with great information!

I retired in late 2022 at the age of 70 and am doing just fine. My home was paid for and I didn't have any debt. I have about $550,000 in savings, IRAs, and a brokerage account.

@elizabethandrews4199

4 күн бұрын

Maybe not a good idea to share this on the internet.

Great video, James. Very well done. Not judgmental. Just, beware. Thanks.

Beautifully put Thanks for sharing God bless

Great and useful information. Thanks a lot.

Awesome tips James.

Good info

I think the key take away from this video is that if you can’t afford an investment, home, vacation,etc before you retire, you can’t afford it after. Making increases in your living expenses after your employment income has ended is very risky. My biggest financial gift to my adult children is contributions to our grandchildren’s’ 529 accounts. It allows our adult children to contribute more to their retirement savings and gives us the satisfaction of empowering our grandchildren with educational opportunities.

Thank you for the wise words in this video. Although there were years when I wished I had bought that dream home and our kids had the huge house, we stayed put. Now the kids are gone and the house is paid off. It is such a freeing feeling to not have a mortgage in retirement. Travel for me is important though, but only within the budget we established. I know there are many places I will never get to, but I will enjoy those that I can visit.

Gotta see what I need to avoid!

James, I like the clarity of your videos! You might want to make a video on the most basic question in retirement, which needs to be asked first, before thinking about "how much is needed for retirement?" ...e.g. what does your retirement "look like'". Scenario1 ... Husband wants to hunt and build ship models in the basement. Wife wants to paint the next greatest landscape. Scenario 2 ....Husband wants to finally study monetary policy and investments, and wife wants to travel on cruise ships all over the world. Scenario 3 ....Husband gets Parkinson's, and wife stays at home as the Care Taker. The dollars need to support these 3 retirements is VERY DIFFERENT!!

Well done

No. 5. Travel. I travel a lot and far away. The Facebook and Instagram doesn’t show time and frustration spent on reservations, tickets, and planning. The pain and torture in lines at airports, trains, busses, taxis, subways, museums, attractions… The hassle of packing, organizing and carrying luggage. The hot and humid weather, noise, crowds, smells, dirtyness and discomfort at destinations and accommodations

@patpeifer7871

5 күн бұрын

Agree, travel to far away places is not without its challenges. My spouse and I retired in early May and just spent four weeks in France and Italy. We saw amazing things and learned so much. But it was also hard. I can see why some people would not want to deal with the planning and the challenges of travel. It may be somewhat like having investment properties, where you need to enjoy the process and challenges or you are going to be disappointed.

@fialee8ca132

5 күн бұрын

If you hate traveling so much... why do you keep doing it? If you want a very smooth travel experience, book an executive tour package. It will cost 5x-10x the travel experience, but you are catered to and pampered, with a dedicated agent who will make everything go smoothly.

@info781

3 күн бұрын

You only need a backpack, you can buy everything else, travel light.

@dhamm3815

3 күн бұрын

Recently retired at 58. Rode bicycles with my wife from Rome to Amsterdam over three months then another month in the UK. Planned one day ahead and had the time of our lives. @pronetowander.together for the videos. KZread and insta taught us to push ourselves beyond our usual comfort zone and I’m so thankful for the time with my wife and the wonderful people that we met in 10 different countries.

We’re living in our dream home that we paid just over $400k for. It’s 3 stories 5 bedrooms rooms. Two fireplaces. With just the two of us now, we have 2 guest rooms-one on its own floor with a fireplace/ living area and deck. A formal living and a great room. It was valued over $1.2 million last Summer. It was in foreclosure, in a great neighborhood and several homes sold for over $1 million last year. Oh, did I mention the 3.2% interest rate we bought it at? We’re keeping this home but selling our beach home in another state we bought with a 3.9% rate now worth double what we paid for it. Writing this after a Transatlantic cruise to EU and planning to travel while waiting on 9th grandchild to be born next month. I’m retired but my husband, a Physician is still working. Which he loves. He’s over 70 and had to start taking his Social Security which is a nice monthly sum and I decided to also take mine though I’m just 65.

But James, if I don't watch ads how will I know what I can't live without?

Yes, the Financial Service Industry often uses fear and complexity as a selling tool. Remember: "Money Doesn't Grow on Fees."

Yes purchasing an Annuity depends on 2 things 1. The right annuity for your situation 2. What the market does in the beginning of your retirement I plan on buying a single premium immediate annuity and I hope the market does well and it was waisted insurance.

Luckily, I have looked at these issues prior to retirement and went through a similar line of reasoning. We moved to an area that with the lifestyle attributes that we really enjoy that is exponentially more affordable than where we were. We did this 10 years before retirement, so we wouldn't be rushing into anything while we were on the cusp of retiring. And we still love living here. Your list is a good one. The one thing that sticks in the gut, though, is LTC. We always maintained LTC policies and still do. But I am not sure that there is a good plan out there . All of the plans seem shaky and expensive. But it's one of those things that you feel you may regret if you don't have one.

It is always strange to see retired couples buy huge, 3000+ sq ft. homes. The problem is that you need the big house when the kids are young but you may not be able to afford it, so when you can afford the dream, you have a bunch of empty rooms.

Ty

Start early with diversified investments in stocks, bonds, and real estate. Maximize contributions to tax-advantaged accounts like 401(k)s and IRAs. Regularly review and adjust your strategy to ensure security.

I don’t know anyone who purchased a dream home after retirement. Boat or RV has to be number 1/2.

Very true about investment properties. Great income but a steep learning curve that is not passive even with the best manager. Would I change it? Not now. Was I surprised for the first few years? All the time.

You completely forget using reverse mortgages to buy your dream home and that’s what we did and we love it and our payment is zero in our taxes and utilities are reasonable

I plan to retire at 62 in another country outside the US that is free, safe and very cheap with a high quality of life. I could fully just rely on only my SS if I wanted to when that times arrives but I'll also have at least one pension, a 403 (b) and a very prolific lnvestment account with my Abby Joseph Cohen my FA. Retiring comfortably in the US these days is almost impossible. I honestly don't understand why people don't move to another country when they get older in retirement. It seems everybody has excuses for almost anything to not take action to better their situation.

Thank you for the great tips for retirement that I am very close to! 😂

Good thoughts here. I expected 2nd home/beach house to make the list!

@DWilliam1

5 күн бұрын

The second home/beach house became my retirement home…love it!

@nikij.6058

4 күн бұрын

Have a 2nd beach house had for 9 years. Hope to stay there a lot during retirement. When done it will add to my retirement account…

Highly recommend Die with Zero, especially the chapter concerning children. We’re giving our children the money to contribute to their Roth IRA so they benefit now and in the future and we get joy from helping them now.

I plan on purchasing a dream home, and love traveling. I agree with you on the other pitfalls but having a cool home and traveling is something I plan to pursue. I was thinking about a travel van but decided that pooping in a fancy bucket is not for me. Maybe I will rent a van for a month and test the waters.

@jameschaves5723

5 күн бұрын

I strongly recommend you go the rental route. Even if it’s $5,000/week you will know if your ready to spend $100,000

With condos investment properties are NO WORK!!! Awesome!! If the unit has a clog or issue, you just enter a work order and the building maintenance fixes it! All you have to do is clean it between renters… travelling nurses are the best … 3 month stints, responsible and clean!

Dream board on a date night?

That "investment" apartment building will open a can of tax worms. Nothing in the tax code is simple, but anyone considering this should consult a tax expert first.

Where can i go on safari in Europe? That would be an interesting adventure.

If I have a property manager then what is the problem ? In retirement you need a property manager for your rentals . There are plenty of good ones out there .

@fredflintstone9508

4 күн бұрын

True. But all properties require maintenance and upkeep. Some property managers may handle all of this for you but you can rest assured that it will come at quite the cost and greatly erode your ability to achieve a true financial benefit. Hard to beat 5% CDs if what you’re looking for is cash flow.

@HappyPenguin75034

3 күн бұрын

Why. You have time. If you have 5 homes. You cousi be spending $6-$20k a year. That’s your vacations!

So how do you plan financially for gifts to kids? Especially if you plan to “Die with Zero.” We would like to gift our kids when they most need it. Is it the one time payments built into a plan? How do you know if you are “enabling” when they are just struggling financially with no other issues?

I don’t know anyone who purchased a dream home after retirement.

My European safari was a total let down. 😂

Dream home Dream luxury car Dream vacation/cruise 2nd home HOA

I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are ridiculously high and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways

@info781

3 күн бұрын

Renting is always an option, especially in a new city.

lol, my largest home was 3300 sq. Ft. My dream home would be closer to 1800 sq ft.

Incredible safari through Europe? Hehe swole Conole rarely slips so I’ll take this as intentional. BTW your target audience seem the 55-65 near retirement cohort. How about some advice for 45 year olds?

@DougASAP

5 күн бұрын

You might enjoy some of the videos from Jame's partner who focuses more on early retirement and a younger cohort. www.youtube.com/@earlyretirementari

@fredflintstone9508

4 күн бұрын

Here is some advice for 45 year olds and younger. Save. Save. Save. Do math and look at the actual cost of things. Most people bleed off far more money than they realize.

And here I thought you were going to say "Buying too many cars and guns." Then I realized no one ever regrets that. In all seriousness, I've actually re-evaluated buying my dream home. As I plan on moving away from where I've lived for the last 20 years due to work, I'll probably look to rent in a different state before I decide to buy.

Regret #6: Purchasing an RV.

@patpeifer7871

5 күн бұрын

I was thinking the same thing!!

How does everyone feel about purchasing umbrella insurance? I feel like I'm wasting my money on it. Asking for a friend. Thank you.

@rightwingprofessor1356

5 күн бұрын

I live in NC. I have a PUL policy from State Farm for $2M. It costs me $281.00 a year. All you need to do is get into a car accident, for which you are responsible, and you will see WHY you need a PUL policy. There is no excuse for an adult who has an meaningful assets, NOT to own a PUL.

@luketeague

5 күн бұрын

Keep the umbrella but hope you never need it.

@DWilliam1

5 күн бұрын

Depends how much money/assets you need to protect…I have it and sleep much better.

@buckibanker

5 күн бұрын

It's a waste of money until you need it, just like full coverage auto and home insurance. As your net worth increases I think its a good idea. Not in insurance at all, but that was my logic when I bought mine

@Tonymanero1960

5 күн бұрын

I buy it because it is relatively inexpensive,....and it certainly can't hurt to have it. I have a 1 million dollar policy that only costs about $400 a year. Every year I happily pay it. And in this sue culture today you need extra protection,......in my opinion.

I’m watching this on our last night of a 17 day trip in Europe. Half of it was on a cruise of the Norway coast, and half of it was our own exploration of castles on the Rhine river. Both required a lot of time of research and effort, there were definitely moments of stress, but I think all of that is true of anything you want to be good at. I loved the cruise, but I also loved traveling independently. I don’t think travel is for everyone. we all have our preferences.

@linziee.8651

2 күн бұрын

Same here. Finished a Transatlantic cruise to England where we visited Stonehenge. Now in Amsterdam to await the arrival of our 9th grandchild due next month but before that we’ll travel to Portugal because we’ve never visited there. Have been to Paris, Italy and Spain already and Switzerland. Our daughter lives in Amsterdam with her European husband. We love traveling at least once a year. If you can just save $200/week for a year. That’s over $10,000+ for a trip. I’ll br staying for at least two months while hubby returns to the States and continues working-which he does while we travel anyway.

You completely forget using reverse mortgages to buy your dream home and that’s what we did and we love it and our payment is zero in our taxes and utilities are reasonable

@tpolerex7282

4 күн бұрын

Reverse mortgages are just about the worst financial product out there.