Money Expert Reacts To Bad Financial Takes
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- Опубліковано 10 лют 2025
- Millionaire Reacts To Bad Financial Takes
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Sometimes the internet nails it, and other times . . . well, I have some thoughts. In this episode, I react to the latest money content on social media and share my key takeaways.
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Canadian here. 42% tax bracket, NOT including: Property tax, Canada Pension Plan, Employment Insurance tax, GST, PST, Carbon tax, Fuel tax, User fee tax. ect...
Yeah, the Ramsey Team really needs to learn that there are other countries in the world besides the US, and that there are other parts of the US that are not the Midwest or South.
Don’t forget about your “free health care” a friend’s grandma waited months to see a specialist and the doctor informed them they could’ve treated the cancer if she was seen a few months earlier…
@@Enkid4675 in deed being directly deny by your insurance company will have saved you all this time!
@@tcgtplLOL… you’re better off to vote for new leadership that doesn’t stutter over the alphabet soup.
@@tcgtpl Not sure the context was given to George. Best to not assume that they don't care if the context wasn't explicitly given.
George, you are forgetting, we don’t just pay income tax. We pay sales, property, real estate, gas, excise, tolls, (family leave tax here in MA), and probably a few more I am missing. Maybe not 5 months worth, but definitely more than a month more.
If we count social security, state taxes, medicare, and all that jazz, and I do a super rough estimate of how much sales tax and other taxes I pay, I get about 33% tax rate... or 4 months. I have no idea you get from that to 5.5 months, but yea, maybe it's only a month if you JUST look at federal income tax, but that's only a chunk of taxes.
@@c0horst DO you pay at the 34% Federal rate, live in a 10% rate state, pay 5 figures property taxes, nearly 10% sales taxes, $.32 per gallon plus sales tax gas tax, etc? On top of this add Social security, medicare, "investment income" taxes, etc and it is indeed possible for many Americans to pay this much.
I've heard the five or six month figure before. I guess there is some variance based on the state. The Federal Government only wants to us to look at income tax. But if we factor all of the money the government tax between medicare, medicaid, social security, employment tax, state income tax, federal income tax, sales tax, gas tax and (here in MO) property and real estate tax, the government (local, state and federal) takes a big chunk of our money.
I keep hearing politicians say they want more government programs to help people. I just keep thinking I'd be fine if they let me keep the money I made in the first place.
If you're self employed, you pay 15.3% in self employment before State and Federal income taxes. For example, in MD if you live in howard county, don't contribute to a 401k, are self employed, are single, and make $130,000. You will pay an effective tax rate of 39.04%. That's $50,752 if you didn't do good tax planning.
George i love you , but you are wrong.(unfortunately the video you watched did not explain the Math) Ramsey should do a study around US of real peeps taxes for 12 months... what better way to start 2025. Include all the suggestions here... the normal Property, Sales, Auto registration, gas, etc.... the easy ones, but also don't forget if you are traveling... the increased taxes for Airport, Rental Car and Hotels....
The girl talking about taxes was showing a Canadian calendar so it could be 46%
That was my thought as well.
Not unless you have a 7-figure salary and don’t do any kind of tax optimization. For average Canadians, taxes are in the low 20%s before deductions or credits. I make about $100k a year and my actual tax rate is currently right around 14% after taking advantage of all the legal ways to reduce tax load I can.
Now I will say, cost of living overall is generally higher here in Canada, so I’m not saying we have it easy, we don’t. Housing, food, utilities and transportation all generally cost more here than in the US, but taxes aren’t actually as bad as some make it out to be.
@@nodsib BS, my friend makes 130k and they take 50k every year.
@ That does sound probable if you include ccp and pension contributions, union dues and whatever other stuff comes out of his paycheck that isn’t technically taxes, AND do no contribution to tax advantaged accounts or charitable giving or take any kind of tax credit, AND don’t count getting a tax refund at the end of the year, only looking at what comes out of each paycheck.
income tax isnt the only tax either.
0:57 if i am going to spend 6k on a trip, the last place I want to go is disney... hot, crowded, huge lines, absolutely not!
I'm gonna assume you also don't have kids....
Amen. Sounds like vacation hell to me
@@datownkidd i dont, and i could see why parents would go there for there kids, the disney marketing is just to strong...
If I’m going to go somewhere, the last place I would go is Disney
If I am paying that kind of scratch, better have sand for my toes and umbrellas in the drinks
3:20 It's all taxes, not just Federal. Federal income, FICA, state, local, sales tax, property taxes. In many states, it can add up to 30-40%.
or more!
High IQ answer right here ☝🏾
Yes exactly. 1/3 of my paycheck is taken out for taxes, meaning 1:3 days I work is just to pay the government. Makes my stomach hurt after seeing what it’s actually spent on.
Yea, he knows but he doesn't want Dave to get on his butt like he did a while ago lol
Exactly. While I don't know if all taxes make up 46% of the average person's income, they do make up a lot more than 16%.
5:24 - I most definitely agree with her. She’s talking about people who take forever to make a simple decision like ordering coffee instead of figuring out what they want before they get to the counter. To me, this behavior indicates that they have nowhere important to be, they lack efficiency, and they clearly don’t value their time or the time of the people waiting behind them.
Exactly. There's a line. Know what you want before it's your turn. Don't be selfish. Get in line when you know
No
I also agree. Why are you in line, if you haven't decided yet. Just get the hell out of the line, decide what you want, then get into the line.
This is why digital kiosks and mobile ordering are the future. I don't have to wait for people to take 5 minutes to decide on their drink when they've already been in line for 10 minutes.
Needing coffee means you lack efficiency.
That used to be hilarious when I worked fast food. You’re swamped, you tell someone “I’ll be right with you.” You come back minutes later and THEN the customer looks up at the menu and says “Hmm. What do I feel like today?”
the AUDACITY to call a 3200 sq ft house costing 800K "super average"
Super average for Boulder, not the country. Calm down.
I'm guessing because it was 3 bed so that's average lol but so is my 975 square foot 😆
@@nowthatsurban "middle class america"
As someone from Vancouver, I wish houses only cost 800k.....
Haha right.... 3200 sqft is bordering on a literal mansion. Also, 3200 sqft for bolder is alot cheaper than I thought it would be.
I kind of agree with the lady @4:50 . No, she is not saying indecisive ppl are narcissistic or poor. There is a time and place to be indecisive, and it is not at the checkout when there is a long line behind you. If i dont know what i want, i let the person behind me go or think of something quickly.
Those are the type of ppl that think their time is more valuable than everyone elses. It's rude.
George Kamel is the furthest thing there is from an intellectual; unsurprisingly, he was incapable of comprehending the nuance of her argument.
It’s cause her argument is stupid
I sort of agree with her, but it was too broad of a brush. My dad was abused growing up and it made him be indecisive, but he wasn't narcissistic: his indecisiveness did lead to our poverty....yet I have known indecisive people neither. And decisive people who were narcissistic.
@DonaldRedeemed I'm very indecisive too, however, if you're aware of it, you try your best to not inconvenience others. Like you said it is a broad statement, but I wouldn't be surprised if she's ok with indecisive ppl as long as they value others'time and are aware of their issue.
Also she was talking about hiring a person….and seemingly how that affects time management and relationships with others?
The word "narcissism" has ZERO meaning anymore.
A lot of words have been totally ripped from their meaning thanks to the content economy.
The vocabulary of these people is just based around short content. Shortest sentences conveying the most strongest idea of what you want to say.
Being Unaware of others, becomes narcissistic.
She was on the right track. People who take forever to order at a restaurant really lack self awareness... The whole narcissist part is on the extreme side lol.
@@fabbz94take one to know I’m I right. You must have taken days to write this comment. Ho wait narcissistic comment without thinking. Right back at you.
That anyone would purposefully go into debt.. for a Vacation!!! is just mind blowing to me. 💥 What is wrong with these people???
3:40 I believe they are referring to other taxes outside of income tax. Like property tax, sales tax, and state taxes as well as federal.
Came to say this, but going to add in -- Social Security and Medicare taxes. This is 6.2% and 1.45% of income (total 7.65%) where your employer also has to pay the same amount.
Cries in Canadian
I bet with all the taxes, car registration, sales, property its near 50% :/
@@AILofiGuy-beats Car costs, sales tax, property tax, etc, are all post-income tax money. Say I need to earn $15 to take home $10. A $9.50 item at 5% sales tax will cost me about $10, while needing to earn about $15.
Yeah, George is completely wrong here. His example is pretty much only accounting for Federal tax. Not everyone lives in a tax advantaged state (fellow Californian here), so it will vary per person but definitely isn't that low
money gets taxed when you earn it, spend it, invest it, use it and save it (inflation)
Pretty much.
I am 27 and i just started my ROTH IRA and deposited the max for 2025! I feel stupid for how long it took to get my life straight. The problem here is, what is the best way to invest the money to grow for retirement?
I believe every Investor should start with ETFs for a solid foundation, then diversify across asset classes and maintain disciplined, regular investing to minimize risks and maximize growth.
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks
I agree with you. I started out with investing on my own, but I lost a lot of money. I was able to pull out about 200k after the 2020 crash. I invested the money into stocks using an analyst, and in seven months, I raked in almost 673k
Actually, I’ve actually been looking into that lately, the news I've been seeing in the market hasn't been so encouraging honestly. If you don't mind me asking who's the person guiding you?
Lauren Christine Campbell is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
Most people pay 10-12% in taxes 😂😂😂 good one George, that might cover my state taxes only.
I can’t imagine my parents going in debt for Disney for me. Like thanks, guys, for going broke for that trip back in 1995.
Yeah exactly!
I think the 5.5 months of taxes is also trying to include property and sales tax, on top of payroll tax, fica, etc.
Yeah I think he's forgetting about state tax, town/county/city/school taxes, property taxes. sale tax, personal property tax. A full month of my income goes just to my property tax. That doesn't mean we don't use services provided by our taxes, but I'd bet the total taxes paid by most middle class families is a lot higher than 10%
Yes, "taxes" basically.
I live in CA, a tax heavy state. Everything's on w-2 is about 20% off the top. That's still only 3 months rounded. That's what George is talking about. Not all the stuff that gets taxed that is specific for the person like sales tax or property tax.
Hit 240k today Appreciate you for all the knowledge and nuggets you had thrown my way over the last months. Started with 24k in September 2024..
I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear that you saved me from huge financial debt with just a small Investment, thank you Jihan Wu you're such a life saver
As a beginner in this, it’s essential for you to have a mentor to keep you accountable.
Jihan Wu is also my trade analyst, he has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.
Jihan Wu Services has really set the standard for others to follow, we love him here in Canada 🇨🇦 as he has been really helpful and changed lots of life's
Most rich people stay rich by spending like the poor and investing without stopping then most poor people stay poor by spending like the rich yet not investing like the rich but impressing them. People prefer to spend money on liabilities, Rather than investing in assets and be very profitable
Please how can I get in touch with this coach Jihan Wu ? I really need to give him a try
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Charlotte Miller for helping me achieve this
I'm celebrating a $30k stock portfolio today. started this journey with 6k. I have invested on time and also with the right terms now I have time for my family and the life ahead of me
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I'm new at this, please how can I reach her?
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
she's mostly on Instagrams, using the user name
46% taxes is likely for Canada. Maple leaf is a huge hint. Also have friends that live in Canada that have told me roughly 50% of their income is taxed. One of the costs of “free health insurance” that still made a friends sick grandma wait 9 months to see a specialist. Doctor said if they caught the cancer a few months early they could’ve done something about it…
I mean the same would have happened in the US just with a huge debt.
@ what are you talking about? Here in the US you’d of been able to a specialist a lot sooner, and get treatment. In Canada they’ll determine if you’re worth it to society to spend tax dollars to treat you. In the US you’ll very likely go into debt but you’ll have your life. Better than having your money taken from you at gun point (being taxed) to then turn around and be denied by “free healthcare”. Healthcare is expensive largely due to insurance companies. I used to self pay because I didn’t have insurance and everything was cheaper. First year I had insurance the same labs done for my yearly physical was billed 5 times more expensive… regardless annual premiums for insurance for my whole family is less than $4000. A lot less than a single persons average yearly cost of healthcare in Canada. I’d rather keep my money, save and invest it and use my emergency fund than have nothing to show for it.
@@Enkid4675 this take is...yikes. Living while in crippling debt is really no better than being dead.
@@Enkid4675 I make almost six figures and pay less in taxes than I ever did in the US. I've used Canadian health care a lot, and for me it's been great. I understand it's not for everyone, but for me, I'd rather wait a little longer and never have to pay anything out of pocket.
@@CNHFTC2010 there are ways to consolidate your debt. I’ve known a few people that were on medical bill payment plans, that after some time some rich person made charitable donation towards multiple peoples medical bills. Sure for tax purposes but it took them out of crippling debt that’s worse than death. My church also helps people with all sorts of debt. The issue still comes down to medical insurance companies and “free healthcare” ain’t gonna fix the problem.
But I guess if money and stuff is the world to you yeah death is better…
Base tax deductions from every paycheck is 36% (fed, state, and local) but that doesn’t include property taxes, sales taxes, and excise taxes built into products I buy. It’s very easy to see how you could get to 46% or in many cases much higher. This is without even discussing de facto taxes from mandated government programs and laws such as insurance.
3:45 the clip felt more real then your response 😂😭 taxes is way higher then 10-16% unless you in a poor tax bracket
My total tax burden is likely in the 25-30% range.
My household income is around $150k (married, filing jointly). Federal, state, local, and FICA is around 23.5% effective rate.
Say I spend half my income on items that have sales tax (7% for me), that's 3.5% of my income on sales tax. (Groceries, mortgage/rent, etc. don't have sales tax.)
Property tax is around 2% of my income for my house.
Various other special taxes for gas, vehicle registration, restaurants, etc. are maybe another 2%.
So 23.5% + 3.5% + 2% + 2% = 31%
But I get some tax deductions/credits for 529 contributions, HSA contributions, and child tax credit. So it's somewhere around 27% for me.
3:40 George only mentions federal income tax, and mentions benefits which are primarily from state and local taxes. I guess it's better to think you're working to pay for roads than interest on the national debt.
Here's how you do disney the right way! You get out of debt and save up a deposit for a value resort. If you travel on the offpeak times this should only be $1200 dollars for 3-4 nights. You book this one year in advance so you have plenty of time to cash flow your transportation and the rest of the disney cost. That way, come time to actually go on your trip, the only money you need on hand is for food and souvenirs. Another tip: eat at quick serve counter spots vs sit down restaurants. The food is way cheaper, of similar quality, and is usually served in a more exciting way
You can also just get a 3 star hotel.. You don’t need a resort since you will probably not even spend time there..
@ well that’s about personal preference. The pros of Disney properties include 30 min early admission every day, quick rides to the park for free, and the feeling of being in Disney even when you’re not in the park. I’d hate to leave magic kingdom and be back in a white walled Marriott. Plus we travel with young kids, so its cool to be in the disney atmosphere when you take a rest day and stay at your hotel's pool
I am one of those people that takes a long time to order at the coffee shop. Reason - I only go to a coffee shop a few times a year, usually because someone else wanted to go, so I have no idea what is on the menu before I get there. In my experience, the people that are the fastest are people that go daily and order the same thing every time.
You are correct, or boring people
George, since you obviously didn’t notice the maple leaf in the bottom corner, the girl talking about taxes is in Canada where I am. The average Canadians tax burden is 43%. If you make six figures and up it’s more like 50-58%.
I didn't even notice the maple leaf and immediately thought to myself. "That's almost half of the year, it might be Canada" . He made Americans look bad by assuming it was the U.S 🤦♀️
To be fair, she definitely doesn't have the stereotypical Canadian accent. But yeah, maple leaf.
@
That’s because the “typical” Canadian accent is something that is greatly over exaggerated on tv and movies lol
For the most part, Canadians (other then Quebecers and east coasters) sound pretty much like the Americans in the states just south of them sound
46% tax rate feels bang on, especially if you live in Canada !!
I make close to six figures, and I pay under 20% in Canada. And my Healthcare experiences have been way better than I had in the States.
Kids don’t know Disney land exists until you tell them. I have no sympathy for this self imposed guilt excuse.
Competent agree. And they can know it exists and still not go. This is not a human right.
To be fair that is pretty much everything.
Agreed
I’d actually disagree and say that while this is probably true for half the families that go to Disney, I’d say the other half is accounted for by other kids from school telling their classmates about the trips they went on over break, or ads on the internet that kids see while on their tablets.
@@tristananthony8198absolutely. Cousins, too. Kids talk.
We are definitely close to being taxed at a 50% all in. Income tax, property tax, tax to buy stuff, tax to sell stuff, etc. That 30% he’s talking about is just income tax. That girl in the second clip was right.
He said 12% which is also lower than what most Americans pay
@@matthewrudomin yeah he lives in Tennessee. They don’t have state income tax but they’re one of the few states that doesn’t. You’d think he’d take that into consideration🤷🏻♀️
@@NatalieSpain True, their response is come to Tennessee if you don't like state taxes. Like we should all move to a no state income tax state
You probably are paying much more than your income tax rate if you include all taxes. For example, my local sales tax is 8.25%, the taxes on your internet, taxes on your phone bill, taxes on gas, etc. And remember your OASDI tax is half paid by your employer, but that's really coming out of your pocket because it's money you can't have, so you have to remember your payroll tax is really 6 and some change percent higher. I'm not sure it's 46% all together though. It's also not necessarily true you're working for "free" because some of these services like trash takeout and road maintenance are value added propositions, though they may not be efficient or cost effective if your local government isn't well run. Federal government is obviously trash (at least in USA), but it's hard to say all taxes go to nothing.
property tax on a 400k home in Texas is 12k a year
@@patp9819 oof. Thats... rough
Also, don’t forget about registration fees for vehicles and sales taxes. Also - don’t forget about hidden taxes like tariffs and inflation!!
@@patp9819Depends on school district, too.
If I add up state & fed income tax, I get to 34%, no need to pull in other taxes
George totally misses the tax thing. Property tax, sales tax, income tax, SS tax…. She’s about right.
Calculate taxes beyond payroll. Include all sales taxes, property taxes and fees passed onto consumers. I’d be curious of the true answer.
Its too damn high that's for sure
On average tax burden in the US it's 25% - 30%. In Canada the average is 45%. In Europe you won't probably find a lot of places below 50%, and most are in the 60% probably.
@@konradterlikowski8788 what I’m referring to is beyond income taxes. I’d like to see the true percentage when you include sales taxes, property taxes, fuel taxes and mandatory government fees that are either direct or passed along. Government fees are just another word for taxes.
I’m sure it’s higher than 25 percent and is not basic math.
@@r-crewproductions814 From what I found the average in the US is about 25%. Again, this is an average and varies state-by-state. There are states where the average income is quite low, there are people that are net tax beneficiaries etc. So it very much depends on how much you earn, what income bracket you're at, how much you spend and it may feel for many, that it's more than 25%.
Oh George. You have so much to learn about how much we’re being robbed.
22% tax bracket for us 😡
Personally, at this point in my life I feel I don’t owe anything to the crime syndicate in DC.
You're also paying taxes on your auto fuel, and sales taxes. There's also property taxes. You are paying property taxes: If you rent your landlord is surely passing the cost of property taxes on to you as inflated rent. Social security tax is also 6.2% for you and 6.2% for your employer. If your employer didn't have to pay that 6.2% it would probably be included in your salary, so there's another 12.4% on top of your 22% right there. I could go on, but most people are around 40% and don't even know it. It is worse if you live in a high tax state like CA or NY.
Bad financial advice with a Codie Sanchez as a thumbnail is perfect. lol 😂
Glad I’m not only one to see through the BS lol
@ she be like. So I flipped this for 10x and opened up 5 hotdog stands and it makes 5x annual and it’s perfect
George you forgot state and social security taxes
I remember hearing a famous financial expert give the horrible advice that any idiot can pick the market beating mutuap funds and that an 8% yearly withdrawal rate is perfectly fine. Who was that again?
Paying the conversion tax out of a taxable account effectively shifts dollars from the taxable account to the Roth account where it can grow tax free (with the amount shifted equal to the tax). I view this as a kind of "backdoor" way of making a Roth contribution when I no longer have earned income to make an actual contribution.
It's recommended to save at least 20% 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 20% 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; I am in my mid 40s, approaching retirement, and have approximately over 2million 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 neglected, not rejected. Just do your due diligence to identify a fiduciary one.
pls how can I reach this expert, I need someone to help me manage my portfolio
I've experimented with a few over the past years, but I've stuck with ‘’Jessica Dawn Walters” for about two years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Regarding the taxes issue, the items George listed that are "paid" with taxes are things NOT PAID via the income tax he is referencing! That's how she got the extra months - all those gas taxes, property taxes, school levies, and what not that pay for the things he mentioned. (Of course, even with income tax, there are also Social Security and Medicare withholdings taken out as well that bump that number up much closer to her 5.5 months!)
I'm going to subscribe because your advice is sound and you produce clean material. Most finance bros think they need to drop f bombs constantly for some reason
I've never been to Disneyland or Disney World. I have no intention of ever going.
What a nightmare
I have been there twice as a kid.. It was cool. BUT all I really remember was that it was cool amusement parks.. Which are everywhere.. Would've been happy going to any other amusement park. The stunt shows were cool to see.. But again.. They're available at other places that aren't nearly as expensive..
To me, it often seems a waste. Friends with young kids say it’s better to wait until the youngest going is 9 or 10. They’ll make actual memories - unlike toddlers - and can get around on their own all day rather than turn into 50-lbs of luggage just past lunch time.
@@epbrown01 plus able to actually ride a lot of rides
Do you have kids and do they want to go?
But I agree.
I agree with the food ordering. I dated a narcissist and had narcissistic friends who need to make a big deal of themselves all the time. The word salad to the server is one of the many ways. It’s not the serious, it’s just a drink or food, and they will find a way to complicate it to get attention.
The second video was clearly in reference to Canada...
George, you are only looking at Federal income taxes. You forgot state income taxes (not everyone lives in no state income tax states), local income taxes (in a few dozen places), social security taxes (12.4% - and yes it is just another generic TAX "Flemming v. Nestor, 363 U.S. 603 (1960)"), medicare taxes (2.9%), property taxes, vehicle/tag taxes, sales taxes, embedded corporate taxes in the price you pay for any product or service you buy, etc....
That girl in the TikTok is Canadian and she added up the sales and income taxes that you listed to get there. Even with our higher taxes, no one is paying an effective tax rate of 46% (it's typically in the mid 20's for Fed/Provincial(state)). As for the other taxes you mentioned:
1) Majority of Americans are employees and only pay 6.2% for social security. This is similar in Canada.
2) Medicare is 1.45% for employees.
If you are self employed, you pay double that (like you mentioned) but you get to deduct all that plus you get favourable tax sheltering in your corp. Employees have no way to shelter or defer their W-2 income.
The rest of the taxes are property or consumption taxes. If you are incurring taxes for business, you basically get to deduct all that. If personal you only incur taxes when you...consume (duh). The more things you buy and the bigger your house, the more taxes you incur. Want to keep your taxes low? consume less. I personally know wealthy people who live modest lives and pay nowhere near the tax rates mentioned. On the flip side, I know people who spend lavishly and then complain about all the "taxes" they pay.
I think what the gal meant that some people who stand in line for service who are indecisive have no concept of consideration for other people behind them in line which she refers to them as almost narcissistic... I guess?
I actually just added up all my taxes: Federal, State, Medicare, Social Security, and average sales tax and my total tax rate is 25%.
As far as taxes go, you need to include all of them. You are paying 6.2% for SS 1.45% on Medicare, depending on your state you can have another few percent and then 16-20% so you can top 30% but nothing near 46%.
As far as the 5.5 months to pay your taxes, Hidden Fuel taxes are outrageous! Having a traveling job would make the difference.. Haveing a smoking or drinking habit, you pay high taxes too...Check your Cell phone bill...!
2:32 Fun fact from Germany: We Germans work for „free“ (pay taxes) up until Juli 11 th! We even gave this day a name „taxpayer memorial day“. After that we get to keep our money….so it is basically true what she is saying 😢
I think the 46% tax rate girl may have been Canadian. There was a red leaf at the bottom.
"Why do we need a payment? Why do we do broke people things?" really sums up the difference between the financially savvy and the chronically poor. The chronically poor just automatically expect that they'll have a car payment indefinitely.
My parents took me to Disneyland once. It was fun, yes. But I enjoyed the many family vacations to national parks and such much more. As for taxes, when you take federal and state income tax, property tax, and sales tax all into consideration I think it's a fair bit more than a month and a half. Property taxes alone are almost $15K for us and that looks cheap compared to our federal income tax.
There’s already about 100 other comments saying this… but as a Canadian there are SO MANY different taxes that all together we probably do pay 46%+ on taxes. Even lower tax brackets are up 30% (including provincial and federal) plus there’s GST, HST, PST, carbon tax, property tax etc…
It’s insane…
If you only count income taxes, you are correct. But that isn't even close to the total taxes we pay. Payroll taxes plus those paid by the employer, state taxes, property tax, sales tax, auto fees etc etc etc.
Don't just look at one and think thats all there is
I heard a guy in a tight shirt giving terrible advice and thought "Oh, so Justin Waller?"
I’m moving to wherever you are if that’s all you pay in tax. In Oz the average income tax is 25%, (I’m paying a lot more) then there’s tax’s such as GST, rates, fuel tax the list goes on and on and on.
The coffee shop thing is real! Don’t think it means you don’t have money or any of that nonsense but frankly there’s other people that want to order so at least know what you want rather than mess around and waste everyone else’s time. Surely it’s not that hard to go into a cafe, look at the menu while waiting your turn and make a decision before ordering.
It’s amazing that the money expert doesn’t understand the basics of tax.
That's why he's a "money expert" not "tax expert" 😆 (and frankly I wouldn't even call him a money expert).
In the US, where he works, a 46% effective tax rate is very rare. 46% marginal is not the same as effective
He's just an expert in parroting pre-written talking points someone else gave him. Groupthink is a terrible curse.
We did a combo Disney Universal Studios vacation two years ago. We kept the entire costs at 3300 including transportation, food, the parks of which we spent 3 and a half days at Universal and Islands of Adventure and 1 day at magic kingdom.
First we went in the end of August. We stayed at a 3 bedroom two bathroom resort outside of Disney World costing 80 dollars a night. It had a large kitchen and we brought and made our own food for all meals. We allowed each kid to spend 60 dollars on Souvenirs, anything else they wanted was from their money. Which I think they spent another 60 dollars combined from Birthday money.
We drove from NJ to Florida and stayed at modest hotels going and coming 1 overnight each way. My kids are used to us driving to different places for vacation, bringing food etc. We also explain to them that we need to budget our money and that this is the only way we can take affordable vacations but we still all have fun (well at least the kids do)
4:08 - I billion percent agree!!! How you do one thing in intention habit is usually how you do other things🙏🏽
The map behind the tax girl is from Canada where they have higher taxes and universal healthcare.
You're paying around 40% in America and you don't even get universal healthcare on top of that. You are also paying property taxes: If you rent, your landlord is passing the property tax on to you. If you drive, the local govt is adding anywhere from $0.75 to $3.50 to every gallon of gas (that's how you get $7 gas in CA). If you receive a W-2 your employer is passing the cost of the "employer" portion of social security and Medicare tax to the employee as lower wages. It adds up. Even if you get a tax refund ever year, you are paying a LOT of taxes.
@johnthewalrus7308 Only tiny tiny portions of CA has $7 gas.
The overwhelming majority (LA area) is around 5 bucks and some places reach 4.50.
@@Diggler569 I stand corrected.
Come to Canada. Unless you make a ton of money, taxes are comparable and from my experience, healthcare is better in Canada.
@@edwinroyal9734 Last month (Dec 2024) a woman's leg was unnecessarily amputated due to Canadian healthcare bureaucracy. Her name was Roseanne Milburn. I recommend a quick google search of her name. I've also spoken to other Canadians who say it is not fine, according to their experience.
Please end social security tax. We know it's going to fail. Refund all of us who won't get it and let us invest it
I recommend everyone to find the book titled The Hidden Path to Manifesting Financial Power, It changed my life.
George, the real tax rate is around 50%. or more. So half a year is about right. Every move one makes is taxed at some level. The trick in the game is to reduce that to near zero by using the tax laws. Happy 2025!
The resort one made me laugh because she got specific in the average living part of her video, but then didn't even mention the food costs when talking about the resort... just free drinks... because, you know... you can live on "just drinks" during your stay.
I bought / downloaded a spreadsheet that lets me keep track of my expenses, but you can also make one yourself. Every box of paperclips, every box of Depends (I'm getting older). This spreadsheet won't tell me when I need a new set of tires, or a roof, or a refrigerator. But it can tell me what I spent in previous years, so I can tell how long it will take to build an emergency fund or save for big items. Everyone should keep track of expenses as well as they can.
"Tax Freedom Day" encompasses all taxes federal, fica, state, local (usually property taxes) and usually is about 4 months. For example in NJ If you're single making $75k & single you pay $20k total in taxes.
About the taxes.. in St. Louis area, I pay taxes on the money I make, the money I spend, and on the value of things I own (which constantly raises). Maybe she totaled all the taxes (not just IRS) on the calendar comparison.
She was actually in Canada in that video, but ya I'd agree with your layout too. Plus st. Louis city charges a separate tax to work in the city limits. I learned that the hardway. I live on the other side of the river from STL, crazy how often IL is compared to MO on taxes when people move across the river to save, only to learn that MO has personal property tax!!!!
@Crystal.Calvin I understand about the city limits tax 😂
The lengths some people might go to.
So I guess you forgot that after income tax we also pay... Property Tax, Sales Tax, Gas Tax, Car Registrations, Taxes on Cell Phone Bills, it goes on and on. I promise almost half of all your money goes to the worthless, inept government. You give "financial advice" and do not understand that there are tons of taxes beyond income taxes?
You are out in left field talking about marginal tax brackets from federal. Then you go on talking about police and schools that come from state taxes. She's obviously talking total tax burden. Federal, state, property, sales, which yes, she's pretty spot on. Don't try and call her wrong to look good yourself.
I pay nearly 46% when you add federal tax and state tax in California.
"It goes to maintaining the roads, and police, etc."
I've heard this countless times. Show me the proof. We all accept it as "true", but the federal income tax doesnt go towards any of that shit
He looks at federal taxes as a percentage of income... And justifies federal taxes based on locally funded municipal projects that are paid for by property and sales tax. Very cogent.
9:40 MILLION DOLLAR BABY. That song slaps 🔥🔥🔥🔥
George, I literally teared up 🥺 when you said “you’re not a bad parent if you don’t take your kids to Disneyland.” Thank you. My kids are 16, 12, 9, and 2, and have never been there, and I have a TON of guilt over it. The fact is that we’ve never been able to afford it, and we won’t be irresponsible to get there. But it doesn’t make it any easier when their friends and cousins talk about their LATEST trips there. I don’t know how people afford to go so often! (Oh, wait-debt…)
George stop referring to yourself as a “money expert.”
You’re a Ramsey Disciple with no actual background in finance
He's definitely winning with money and gives reasonable advice. Having over a million dollar network in your 30s after having a to pay off student debt and starting a family is a good resume for being a money expert
No it’s not. Being financially literate does not make you an expert.
George seems like a good guy but he’s not allowed to be an independent thinker because he works for Dave. Perfect example came from this video - George said to not use Skymiles to book a trip. That’s the definition of tossing away free perks for people who don’t pay interest on credit cards.
An actual money “expert” would tell you the dangers of credit (or other debt instruments) while still demonstrating the upside
@pauchopkins12 the real problem from their perspective (not mine) is that they believe people who benefit from credit card rewards are doing so at the cost of people who are terrible with credit cards. For me, that's not my problem.
It’s amazing really. We have a financial crisis, caused by greedy, reckless financial institutions. Congress passes legislation requiring those institutions to be less greedy and reckless. The institutions then lobby to have those restrictions removed, usually in the name of “remaining competitive”. This leads to another financial crisis. It’s completely predictable, and we have been doing this dance since the Great Depression almost 100 years ago.
That tax chart was from Canada.
After property tax, sales tax, etc. the US tax rate is over 40% for most. Sometimes people rent, so they think they're not paying property tax, but your landlord pays the tax and passes the cost on to you through inflated rent. People think their employer pays half their social security, but that cost is passed on to the employee as lower wages. 40% is average. It is worse for those who live in high-tax states.
@@johnthewalrus7308still we're not taking all of the taxes we pay into account. I feel that's what she was trying to do.
I think S&P 500 is going for a correction soon. It is 2 years after the correction and it is about time. I aim to gain from this and I'm doing it with 200k and less, thru covered call ETFs, ranging 9-11% divs paid monthly. Am i on the right track?
Did you listen to what Tom Lee said? Small caps are under valued. That's the best place for growth in the next year.
Such uncertainties are the reasons I don’t base my judgement on a ''heresay''. My dollar portfolio is made up of 30% S&P500, 25% Index funds(ETFs),15% Gold and over 30% in digital assets, thanks to my CFA for this accurate asset allocation. This strategy is what works for my spouse and I. We've made over 80% capital growth minus dividends
@@Robertgriffinne I find your situation fascinating. Would you be willing to suggest a trusted advisr you've worked with?
@@05kkmujgaa I've stuck with ‘’Zareen Grace Church” and her performance has been consistently impressive. She’s quite known in her field, look her up.
@@Robertgriffinne Thanks for the info. I searched for her full name and found her website right away. I reviewed her credentials and did my research before reaching out to her.
George,
Many people do in fact have a tax rate of 46% of higher. 5.5 months of your work is a reasonable estimate for how much you are paying in taxes.
Income tax is not the only tax we pay. That may be a shocking statement, but it is unequivocally true.
Average income tax rate in the US (for many it's much higher): 14.5%
State income tax (varies by state): 5%
Employee paid FICA: 7.65%
Employer paid FICA (could otherwise be paid to employee): 7.65%
Embedded corporate income tax: 21% of your spending
State and local sales tax(varies): 7-8% of spending
Hard to quantify taxes listed below:
Property taxes (may include vehicles in some states)
"Luxury tax" if you drive a "nice" car
Vehicle registration fees
VAT for hotel stays
Gas tax
"Sin tax"
Taxes and fees for flying on a commercial airline
Toll road fees
Permitting fees
Business licensure fees
Pretending that we aren't taxed to death and that everything is just fine is a weird coping mechanism.
If you pay 25% between Fed and State, 7% sales tax, 1% of your homes value, call it 3k on a 75k family household income, that's about 4%. Add it together that's about 37% total taxation, that's if you don't include government fees from places like the dmv, 46% might not be so far off if you are in a higher tax bracket and have more property taxes to pay.
Save the tall fescue ftw! 😂 Loved this!
Taxes are insane in the US i thoroughly disagree with Kamel on this one.
In what country is it 10-12% tax?? My first year working i paid 30% on a minimum income and then some (food tax, gas tax, rent transaction tax) and this is in the US
I like how that one woman put "Electricity and Power" as if they are different things lol
@3:00 That's Canada, so its actually slightly lower than I thought. But even if its not canada, and it was the US, it sounds pretty applicable. There's more than just income tax, so if you include all taxes like property, gas, sales, etc, it could come to 46% in the US. Its unlikely if you live outside of CA, but its possible.
as an Aussie who loves Ramsay and Kohler, I’m SOOOOOO here for a collab!! Yes!
going to japan in march for the formula 1 everything has been budgeted and using our credit cards, for the points, do not see any wrong with it, we already got the money, tickets paid, hotels booked, do not see anything wrong with using a CC
My wife and I paid up front for everything for last year's European trip with our kids. Going to travel on an expensive trip without worrying about a penny of debt is an amazing feeling--everything was covered ahead of time, with the exception of meals and souvenirs, which we budget for smartly. Sure, we needed to save for a full year to make it happen, but that's not a bad thing!
The bonus to saving ahead of time is that you can keep that money in interest-bearing accounts. So you save $10k over a year, but that money can earn several hundred, if not a thousand or more, dollars in interest during that time frame.
The five months working for taxes thing is FOR CANADA, and from the Fraser Institute, a well. known financial center up there. They pay up to 30% on their income taxes, depending on their bracket, PLUS federal tax, and provincial tax, so yes, she is correct about that.
When we spend our money in Kansas we have a 7.6% sales tax. She figured that in when you didn't. We also have property tax on our homes and vehicles which can be 6k a year. She is right george.
You pay property taxes on a car?
George love your stuff ❤
Disney is NOT worth it.
My parents never took me or my siblings to Disney World. We did go to Disneyland, for 1 day, while we were in CA also visiting family. I never felt deprived as a child, and I am glad they didn't go into debt to take us on a vacation.
Federal tax, state tax, local tax, and FICA can definitely add up to 46% for some people.
When I lived in Massachusetts 20 year's ago I did the math on all the taxes and fees including federal income and Social Security . All told it was something North of 34%
3:45 Another swing and a miss from the Ramsey crew.
3:35 She is canadian, canadian flag in the bottom left corner. Also you in the USA might have 20% income tax but then you have to pay for health insurance, retirement, etc yourself.
I’m not sure 5.5 months is accurate at all but we pay a lot more than income tax. There’s sales tax, property tax etc. My property tax makes up probably 4-5 percent of our income each year.
It’s amazing really. We have a financial crisis, caused by greedy, reckless financial institutions. Congress passes legislation requiring those institutions to be less greedy and reckless. The institutions then lobby to have those restrictions removed, usually in the name of “remaining competitive”. This leads to another financial crisis. It’s completely predictable, and we have been doing this dance since the Great Depression almost 100 years ago.
Agree; the rules should be applicable to all banks - big or small. First; very few meaningful laws are passed and then this cycle of doing-undoing seems to support deregulation risking the economy and the faith in banks.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Lisa Grace Myer for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up on web, and I have sent her an email. I hope she gets back to me soon.
You didn’t debunk the days working for tax video. Instead you assumed people only pay federal taxes?!? That tax percentage obviously includes aggregate taxes people pay in the USA.
There is actually a term for the day every year you finish paying all taxes called “tax freedom day”. There are several calculations, the official one uses the overall tax burden of the USA, another method includes fed state and local income tax, payroll tax, sales tax, property tax, all gas taxes, service taxes, fees, telephone taxes etc etc etc. which is a larger tax bill than the first method.
Either way its significant.
In 2024 it was April 17 as far as I can tell, but that was by the official method vs all taxes and fees.
High earners in Canada can pay close to 50% . Our federal tax is brutal. You can pay upto 33% federal and provincial varies. Im in sk its 14.5%...thats 47.5% total. This is my first year in the highest tax bracket and its going to hurt. But I prepared and put away so its fine. ( I day trade for a living, so i need to really stay on top of setting money aside!)