I’d be retiring or working less in 5 years, curious to know how best people split their pay, how much of it goes into savings, spendings, and investments. I earn around $150k per year but nothing significant to show for it yet.
money advice is subjective, what works for you may not work for me. I would suggest getting rid of any unnecessary purchases, especially things that cost you monthly, or better still consider advisory services for better planning
I'm quite lucky exposed to finance at early age, started full time job at 19, purchased first home 28. Going forward, got laid off 36 amid covid-outbreak and at once consulted a professional. As of today, I'm just about 10% short of $1m after 100s of thousands invested.
bravo!! retired in my 40s after inheriting money from a childless relative, traveled overseas and found love almost my age, happily married but only issue is how to grow and preserve our wealth... think your FA can be of help?
The idea of investing a significant sum of money may be both thrilling and intimidating. There is potential for considerable wealth increase with the correct strategy. How can one take advantage of compound interest and potentially grow your retirement savings to about $1M over time?
I think the safest strategy is to diversify investments. Like spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.
Having an lnvestment adviser is the best way to go about the market right now, especially for near retirees, I've been in touch with a coach for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I nettd over $220K so far, that made it clear there's more to the market that we avg joes don't know
Bob Brinker passed away sadly August 2024 at 82 years old-he helped me tremendously to understand index funds with Vanguard and do it yourself long term investing! Great man! RIP Bob!❤
The way he did it is the safer way to do it without seriously running the risk of having to restart the process of savings when "the messy middle" rears it's head. Grown kids, so expenses are basically set. Unfortunately, he didn't talk $$ of salary for he and wife, what they did when kids growing up, did they help kids pay for college, etc. Those are the expenses that occur during those middle-later years, which could destroy FIRE if you didn't have the $$ already available.
54, in edtech sales, looking to decelerate into FI with short, targeted, high caliber PT work, eager to hear more about how 1-3 hours of sales work per week generates 30-40K per year. That sounds great. Good episode, thx. Grit and discipline get you there, agreed.
I've been exploring tax-advantaged accounts for retirement savings, especially since I'm self-employed and want to minimize my tax liability. Has anyone considered Roth IRAs?
Yeah, I converted my traditional IRA to a Roth IRA last year after consulting with my financial advisor. It's been a game-changer for my long-term tax strategy.
How did you decide between Roth and traditional? I'm unsure, as I've heard pros and cons of each. I'm 35 and just starting to build my retirement nest egg.
Consider your current tax bracket versus expected retirement tax rate. Since I'm in a higher tax bracket now, I opted for a Roth IRA to pay taxes upfront.
'Rule of 55' can work for people who want to tap into 401k from your last employer before 59.5. There is also SEPP (Substantially Equal Periodic Payment) where you can tap your IRA before 59.5 but it may be too restrictive for most people. A brokerage account with healthy Long Term Gains is a very good option also but I would recommend maxing out the Roth first because LT gains may still require state income taxes to be paid at the full rate - even though the federal taxes will be favorable. This of course applies only to people living in states that have high state income tax (like CA).
It’s really heartbreaking to see how inflation and recession impact low-income families. The cost of living keeps rising, and many struggle just to meet basic needs, let alone save or invest. It’s a reminder of the importance of finding ways to create financial opportunities. You've helped me a lot sir Brian! Imagine i invested $50,000 and received $190,500 after 14 days
Investments are the roots of financial security; the deeper they grow, the stronger your future will be. With my adviser, I've cultivated deep investment roots, strengthening my financial security for the future
It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I completely agree; 1 am 60 years old, recently retired, and have approximately over million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglect not rejected. Just do your due diligence to identify a fiduciary one.
While I enjoy this show/podcast, I feel like it could be contributing to the "One More Year" syndrome for some, including myself. It seems like a fair number of guests have or need at least $3 million to reach what they consider FI. While I don't want to have Early Retirement Extreme levels of spending when I retire, I also don't see why most people would need $120K+ per year (even in a HCOL area). However, after seeing so many Fat FI guests, I am starting to feel like I need more and more money even though I have 25x my annual spend.
Hows he been retired for 10 years and not his wife (i mean maybe she enjoys her work). But it seems like half his bills are covered by someone that works. Kinda like how sahm can not work. 😶
That's only cuz his hair is white and not dyed. Is somebody who works in the hospital and like 70% of the people I care for are age 60 to 90... He looks about mid-60s
I’d be retiring or working less in 5 years, curious to know how best people split their pay, how much of it goes into savings, spendings, and investments. I earn around $150k per year but nothing significant to show for it yet.
money advice is subjective, what works for you may not work for me. I would suggest getting rid of any unnecessary purchases, especially things that cost you monthly, or better still consider advisory services for better planning
I'm quite lucky exposed to finance at early age, started full time job at 19, purchased first home 28. Going forward, got laid off 36 amid covid-outbreak and at once consulted a professional. As of today, I'm just about 10% short of $1m after 100s of thousands invested.
bravo!! retired in my 40s after inheriting money from a childless relative, traveled overseas and found love almost my age, happily married but only issue is how to grow and preserve our wealth... think your FA can be of help?
The idea of investing a significant sum of money may be both thrilling and intimidating. There is potential for considerable wealth increase with the correct strategy. How can one take advantage of compound interest and potentially grow your retirement savings to about $1M over time?
I think the safest strategy is to diversify investments. Like spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.
Having an lnvestment adviser is the best way to go about the market right now, especially for near retirees, I've been in touch with a coach for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I nettd over $220K so far, that made it clear there's more to the market that we avg joes don't know
I listened to Bob Brinker too! Critical Mass was my favorite term.
Me too! Loved Bob Brinker! ❤He was amazing! Loved his critical mass term of art!
Bob Brinker passed away sadly August 2024 at 82 years old-he helped me tremendously to understand index funds with Vanguard and do it yourself long term investing! Great man! RIP Bob!❤
Thank you as newly divorced single mom in her early 50s you confirmed I’m on track 🙏🏼
You rock! ❤🎉
Love that closing sentiment, this channel is getting me through the week!!
The way he did it is the safer way to do it without seriously running the risk of having to restart the process of savings when "the messy middle" rears it's head. Grown kids, so expenses are basically set.
Unfortunately, he didn't talk $$ of salary for he and wife, what they did when kids growing up, did they help kids pay for college, etc. Those are the expenses that occur during those middle-later years, which could destroy FIRE if you didn't have the $$ already available.
54, in edtech sales, looking to decelerate into FI with short, targeted, high caliber PT work, eager to hear more about how 1-3 hours of sales work per week generates 30-40K per year. That sounds great. Good episode, thx. Grit and discipline get you there, agreed.
Bob brinker was on am radio back when it was great and informative. That's all gone now.
Yep he was amazing, he too is gone now as of August 2024 -RIP Bob Brinker❤
I've been exploring tax-advantaged accounts for retirement savings, especially since I'm self-employed and want to minimize my tax liability. Has anyone considered Roth IRAs?
Yeah, I converted my traditional IRA to a Roth IRA last year after consulting with my financial advisor. It's been a game-changer for my long-term tax strategy.
How did you decide between Roth and traditional? I'm unsure, as I've heard pros and cons of each. I'm 35 and just starting to build my retirement nest egg.
Consider your current tax bracket versus expected retirement tax rate. Since I'm in a higher tax bracket now, I opted for a Roth IRA to pay taxes upfront.
My financial advisor recommended Roth accounts for long-term tax savings, especially since I have a pension plan from my previous employer.
'Rule of 55' can work for people who want to tap into 401k from your last employer before 59.5.
There is also SEPP (Substantially Equal Periodic Payment) where you can tap your IRA before 59.5 but it may be too restrictive for most people.
A brokerage account with healthy Long Term Gains is a very good option also but I would recommend maxing out the Roth first because LT gains may still require state income taxes to be paid at the full rate - even though the federal taxes will be favorable.
This of course applies only to people living in states that have high state income tax (like CA).
I think using the 72t is better too.
@@joy2world97 - 72T is same as SEPP.
Spend as little as possible and invest the rest until it can pay for your lifestyle.
Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments
It’s really heartbreaking to see how inflation and recession impact low-income families. The cost of living keeps rising, and many struggle just to meet basic needs, let alone save or invest. It’s a reminder of the importance of finding ways to create financial opportunities. You've helped me a lot sir Brian! Imagine i invested $50,000 and received $190,500 after 14 days
Absolutely! Profits are possible, especially now, but complex transactions should be handled by experienced market professionals.
Investments are the roots of financial security; the deeper they grow, the stronger your future will be. With my adviser, I've cultivated deep investment roots, strengthening my financial security for the future
Thank you 😊👍.
It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Effective personal finance management is more important than the amount of money saved, regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I completely agree; 1 am 60 years old, recently retired, and have approximately over million dollars in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, the Fin-advisor can only be neglect not rejected. Just do your due diligence to identify a fiduciary one.
15 percent of low income doesn't help, you can max $ 23k in your 401k in 2024, so you definitely should try to get to the max.
While I enjoy this show/podcast, I feel like it could be contributing to the "One More Year" syndrome for some, including myself. It seems like a fair number of guests have or need at least $3 million to reach what they consider FI. While I don't want to have Early Retirement Extreme levels of spending when I retire, I also don't see why most people would need $120K+ per year (even in a HCOL area). However, after seeing so many Fat FI guests, I am starting to feel like I need more and more money even though I have 25x my annual spend.
Lets go!
I've retired in my early 30s because of turnkey multifamily real estate
I need y’all help??
Hows he been retired for 10 years and not his wife (i mean maybe she enjoys her work). But it seems like half his bills are covered by someone that works. Kinda like how sahm can not work. 😶
I’m not waiting until 57! That’s ancient! 😂
He looks 70.
That's only cuz his hair is white and not dyed. Is somebody who works in the hospital and like 70% of the people I care for are age 60 to 90... He looks about mid-60s
I don’t understand married couples that have separate finances. 🤷🏻♀️
I do!!!!
My wife and I have both separate and combined accounts. It works well for us.
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