Rick Edelman, Isabel Barro, David discussed on Ric Edelman


Back to the Rick Edelman show Isabel barro in for today and we're heading to Brooklyn New York we're going to be talking with David How can I help you I am seeking help actually lots of help I'm 55 years old I have very little savings just a little over a $100,000 And as I think about retirement what I have pretty much left on my name I'm married I have no children on unemployed right now seeking seeking employment and really I have this pot which is not much of a pot in terms of thinking about where I'm going to be several years down the road So I'm getting nervous This is stressful very anxiety provoking situations So I need some ideas on what to do What do I do with this little money that I have sitting around that will vanish in no time with my current daily living expenses And I just want to get an idea of what I can do to catch up I've always been a very frivolous vendor and just kind of throwing money out the window left to right and here it is Now it's caught up with me and now I'm trying to figure out what to do David unfortunately the story that you're telling is one that just so many people are familiar with But let me just start off by saying it's not as bad as you might think Are you living off this 100,000 right now Yes Okay And how much are you spending Do you think on a monthly basis It's got to be between rent and utilities and food There's really not much else outside of that It's between three and $4000 Okay And I'm doing some odd jobs side work and that brings in a little bit of money here and there It's nothing steady but I mean I just see this savings just kind of dwindle It's becoming less and less it's not drastic when I look back and think about what it expend at this past month But it's going to be gone if I don't do something And like you said other people are in the situation and I hear about that all the time that people approach it retirement with nothing Even people that have won the lottery True Sometimes it's just a matter of procrastination David you know sometimes it's just that people think more about spending you know what they're going to spend on vacations and they think about what they're going to spend on their retirement And then all of a sudden you wake up one day and you're 65 and you say wait a second I'm getting close you know Exactly But the average American has less than a $100,000 in retirement savings And that's up this year from where it was last year even So like I said you're not as bad shape as you think you are But that doesn't mean that we can't make it better So you're married is your wife working No not Carly Okay and are you both thinking that work is in the cards for you or you considering working in the future Yes She's closer to getting some type of study work And I'm getting there I've been talking to folks and I've been scheduling interviews and I'm getting close Which will be a decent paying job So I mean I'd like to get a sense of okay So if you're looking to retire at let's say unlimited 5 years or let's say another ten years back then what do I need to do How much do I need to build how much catch up per se Do I need to play in order to be in a situation where let's say 5 or ten years from now Okay I can safely retire Okay Well let's try to figure that out But let's also let's just get some of the other financials here because that's I think going to help us with this bigger picture So you know let's sort of assume that okay you're going to have some work that's going to offset this for the next couple of years But may I just take a moment and also say that you're 65 So in theory you're also eligible at age 62 or over for a social security benefit I'm not saying you should take it right now but in theory if you couldn't get work you know if you were in a situation other than the one you're in right now where you said you know my wife and I really are just not able to work We just can't find jobs and it's just not going to happen in our area What would your social security checks be Are you familiar with what your benefits are going to look like Either at full retirement age or if you were to take it now Yes And I looked at that There's a statement of earnings or some type of an earnings statement that I can access online with social security and I believe that at full retirement which I think is 67 That's right And I didn't know I could retire as early as 28 I'm sorry about 28 62 62 Full retirement I know that it'll be around $2000 monthly Okay That'll get 2800 and do you have any idea about your wife Was she similar earner as you No And she's about ten years younger Okay so she is only 55 She's not going to be eligible for social security for a while But correct Even if let's say she didn't work or she didn't have benefits She would at her full retirement age or 62 or older be eligible for some spousal benefits So even if she didn't work and she didn't have a scenario where she's going to be working in the future Eventually she would have been eligible for a may still be for spousal benefits which is roughly half of what you'd be getting So you know if she waited until her full retirement age and you were taking social security that'd be another $1400 a month So by my math that's $4200 between the two of you You're 28 and her 14 So that covers almost all of your expenses Now not including taxes but if you're living between three and $4000 a month you might have a lot of that the majority of it covered by your social security check down the road So hopefully that gives you a little bit of peace of mind as well Now in the event that we are not going to take social security now because ultimately the longer you wait the more you're going to receive So in this case given that you do want to work and that you are planning to work for the foreseeable future go ahead and delay it If you take it earlier than full retirement age and you.

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