The Dark Side of Being an American Millionaire! (2024 Edition)
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- Опубліковано 22 чер 2024
- The Dark Side of Being an American Millionaire! (2024 Edition)
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Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.
Having retired at 55, I tell people that the greatest part about it is the freedom from stress and that for the very first time in my life, I am on nobody's schedule but my own. Those things are way better than a Lamborghini. Listening to the Money Guy show will help people get there and enjoy it when they arrive.
Absolutely. I just hit 40 years old.
This year, we are going to start pushing to get $1 million invested outside retirement accounts so we have the option to retire early.
This year, we are buying property and I'm planning to build my own house.
If I can build a house every 2 years, live in one 2 years, then sell it... take advantage of the section 121 capital gains tax exclusion. I might 100% quit the 8-5 after I get the 2nd house built. I've spent 15 years behind a desk, I want to get back to working with my hands, on my own time, making my own money. If I can make up to $500k tax free every 2 years... that's the equivalent of $390k a year as a w2 employee.
See how it goes.
Tax Tax Tax, i used to be a dividend investor My wife and I have invested in the s&p500, both through my TSP with the government, and through Fidelity in her 401-k.Cashed out 450k from the S&P and invested with a FA Anna Rounds Fay . Until around 3 years ago we were 100% in the s&p after over 20 years.I'm retiring at the end of this month at 59, while my wife will retire next year at 55. We currently have 4.7 million in our tax deferred savings and still with investments in individual companies.
Wow this is really impressive...congrats on your success
did a quick search and found her webpage. I must say her resume is pretty impressive.. will be writing her too
invest in stable stocks, my rule: if you previously liked the stock, then you should love it at a discounted price.
Hey, I'm in Australia. Wondering if the stuff you recommend is USA specific or does it translate to other western countries?
This is a scam right? The picture and bio don't line up with the LinkedIn profile it seems to be trying to impersonate.
I grew up poor (family of 6 lived in a one bedroom one bathroom trailer) and my wife grew up in poverty (Philippines raw sewage and squatters in federal abandon buildings). We are both nurses and gross $210k a year. Though money doesn’t buy happiness it sure helps and makes us more appreciative of it and invest wisely.
Best financial show on the internet. Thanks guys... even an old guy like me can transform his financial life.
I don't have a big salary but my only debt is my mortgage for my tiny condo. The peace that I have now is amazing. Lots of sacrifice when I was younger. Lots of self pity and crying but my god, was all that effort worth it. In my 40s and have peace.
My parents took me to a couple poverish areas in other countries in my pre teens and that definitely opened my eyes and made me grateful for what I had, a roof, clothes, utilities, and 3 meals a day. Made me learn the value of money and the simpme things in life.
Haiti did that to me back in the 1970s. I believe I was about 11 years old. I've never forgotten that.
Money doesn't bring happiness, but it sure as hell go a long way to making that happen.
One of the best things I did was instead of trying to make as much money as I could, I changed my mind set to "how can I make 100,000 a year working the least amount of days possible."
I switched to 100% remote work during covid, and I'm never going back to the office. The extra time with my family is worth more than any pay increase.
What age did you do this? I see most people do this at retirement.
This is my retirement plan. Get to the point where I don’t need to earn any more, but still work 10 hours per week to make that 100k. Enough to cover extravagant fun and charity, while also staying productive in retirement. Until I can’t keep up in my engineering business anymore.
@@eedre4864 In tech it's possible to do this by age 30 with the right degree and skills, there are a lot of remote jobs that are listed as full time but can be done in 10-20 hours of focused work per week. I'm 29 and make 180k doing software engineering for a fintech company, normal week is 10-15 hours of coding plus 5-10 hours of zoom meetings where I can just listen in on headphones. Alternatively you could get a CPA and work 80-100 hours a week during tax season then take the other 9 months of the year off. I have a friend about my age who does that, I'm not sure exactly how much he makes, but it is well over 100k.
Passive income is the key. My money works 24/7 and never sleeps.
I grew up poor as in “we can’t afford to get fries with that McDonalds hamburger” poor. Now I am a millionaire. Let me tell you this in no uncertain terms. Nothing makes a bigger difference in your happiness than having enough money. When people say “money doesn’t buy happiness”, I know they have never been in a situation where they really lacked money. Sure there is a diminishing return as your wealth increases. But we usually aren’t taking about someone who went from $200k to $250k a year. We are usually talking about someone who went from $30k to $80k. And that makes a huge difference.
I agree and this is why we need to redistribute wealth. This is the reason for the mental health crisis. The collapsing middle class. Oligarchs and big corpos can pay more taxes.
As someone who makes a very good income and currently hates my job (well... my boss), that first one feels very real. But I will say: having the resources and financial independence to know that I can quit if I need to makes it a lot easier to deal with.
One of the downsides is learning how to bring peace into your life as you ease off the gas. Decades going 100% is not a thing that just turns off.
This hits too close to home. Agreed.
I can confirm that buying things did not make me happy long-term. When I was 27, I purchased an excellent "used" luxury vehicle on a 6-year loan.
After the nice "new feeling" wore off with a couple of $1000+ repairs, I made the financial commitment and paid the vehicle off at the 3-year mark of the loan.
I would have felt better investing that money into a cash-flowing asset.
Part of me is glad I made that mistake earlier rather than later. It definitely set me on the path to financial planning and budgeting.
People aren't donating to charity because they've been exposed as fraud. Very little money actually helps the people who need it. Non profit is very profitable. But people are giving more than ever to people we know need help who receive 100% of what we give.
Very good point! Majority people think that Goodwill is a charity. It's not, Salvation Army is! Please point that out to your friends and family.
People can't donate to charity because they can't afford to put groceries in their own house or pay their electric bill...expenses are high. If you can't take care of yourself/family, you shouldn't be giving any money away.
Literally watch the video. You can donate more than money.
You can always find a way to be generous. It does not mean you have to give cash. You can also give time and talent.
@@ChristopherKilrain True but The Money Guys were giving stats on donating $$. I'm sure that is why @TeknoVKNG23 made the comment. After all the topic of the video is about The American Millionaire, not donating your time. Thanks Homie!
@@ChristopherKilrain Spot on! I prefer to give my time and expertise because I can see how it's used and know that it is being well spent.
I think people are more reluctant with charity’s because a lot of them aren’t really “charities”.
My tax rate is over 30% and roughly 2/3 of that goes to welfare programs. That's more than enough charity for me...
@themoneyguyshow - as an aspiring financial mutant each of my dollars has a purpose and as a result it feels like I still live paycheck to paycheck > "forced scarcity". Perhaps in future videos when you discuss the FOO and allocating dollars appropriately you can discuss forced scarcity and how that can cause a feeling of living paycheck to paycheck. That may help people be less stressed that self-induced scarcity is the type of living paycheck to paycheck that is the goal (I think - please correct me if I'm wrong).
These days, scarcity is the real deal. Ain't nothing "forced" about it. I can barely afford to buy groceries despite making $400k+ and living in a small rural Midwest town.
@@Rew123 I'm sure this comment is made up. Can't be true.400k and in a small midwest town and still can't afford groceries? Funny.
@@Rew123Doubt
My first pay check as a professional (after graduating college with mechanical engineering degree), was the most money I had in my bank account ever. My immediate reaction - “holy shit I have something to lose and now I am a target”.
The big thing that shocks me is people not realizing wealthy people usually work far in excess of 40 hours a week.
I came to this abrupt realization working for VPs directly. Their calendars are nuts and the president and C-suite leaders are even worse.
Great episode! Thank you so much for putting together awesome content backed by facts.
It's not that having money is so great; it's more that NOT having it really, REALLY stinks. And now that I've lived long enough, I've seen how money just allows some folks to dig themselves into a deeper hole than they otherwise would have. It's like money brings out more of who they really are.
Great message fellas! Especially the generosity piece
Some solid advice in this video. Well done 👍
Our parents were wealthy by the statistics. Pay for half of a car when we turned 16? Haha. We were lucky to have our first two-wheeler bicycle given to us! If we wanted our own car, we had to buy it ourselves. Otherwise, we were lucky to *borrow* the high miles, embarrassing shared family car when our parents replaced their own cars.
Best financial responsibility education we could have had. Partially as a result, now retired, I’ve never had a vehicle loan in my life. And we raised our kids the same way - in spite of many of their friends getting new Jeep Wranglers and 3-Series BMWs for their 16th birthdays.
Millionaire is WAY to broad a term.
Millionaire spans a range of money that is three orders of magnitude from the lower millionaire to the highest millionaire.
The range would be like thinking that someone with $1,000 in their pocket is in the same group as someone else with $100,000 in their pocket.
Telling your kids how to deal with money is one thing but they learn from watching their parents. If parents pay for housekeeping, lawn maintenance, car washes, and eat from restaurants everyday.... that's how your kids learn to live. If you go on vacation 3 times a year, your children grow up thinking thats a normal life. If you buy a new car every year or couple of years, your children grow up doing the same. If parents have the newest phones, fashion etc...kids learn to expect a life with the same. Which ask the question ❓ If we can afford something, does that always mean we should get it❓ The kids will give up saving 25% before they will learn to mow the lawn, cook, and do without new gadgets.
A note on generational wealth: You have the initial driven person focused on building wealth, but sacrifices their families while doing so. Those kids (second generation) grow up neglected and traumatized wanting to be nothing like their parent. That trauma is amplified by the third generation, further skirting their chances of becoming successful. Teaching your children how to be successful with money, requires spending time with your children.
That’s a whole lot of assumptions and bias there 😂
Great content, money guy team! I think it would be great to explain the distinction between paycheck-to-paycheck and practicing forced scarcity with your dollars. That episode made it clear that high earners think they’re living paycheck to paycheck (which might be true). You guys do a great job with examples discussing cash flow and wealth buckets. Keep up the great work!
Wealth is time. Can live well for a year without income is '1 year wealthy'.
Money might not be able to buy you happiness but it does keep alot of the stuff that makes you sad away
This is fantastic. Love what you said about assumptions. IM bad about assumptions.
I make much more money than I did a few years ago. Idk necessarily about happier. But MUCH less stressed. I also feel much better about my retirement outlook. And I have the freedom to do the things I love. “Happiness” I feel like is a state of mind and I have plenty of broke friends that are happy. But they’re never gonna own a house. Probably never buy a brand new car. And idk how in the world they’re gonna retire.
"Choose your work based on a better work life experience" That is an interesting statement. I had that option and took it with my first job out of college. Two offers were on the table, the first was $43K and I would have to work every other day 9 am to 9 pm including weekends and holidays, and the other was $28300 to work M-F 8-4:30. I chose the 8-4:30 and that is how I moved forward. I liked what I did and could live in the location on 50% of my net income. I learned to live within the income that I received and liked what I did. Liking what you do, makes life so much easier, and it became very profitable. No I never achieved or kept up with the income of the first job offer. Those jobs always paid more than my job, but when I learned that I was not working for money, only for the social aspect and value of doing that job. That and what I learned made me very comfortable.
talking to my European colleagues (most are 55+), a lot of them work 4 day a week. THat is indeed a better work-life balance. I would take 20% cut on my straight pay.
I think generosity declined when the standard tax deduction changed
Yeah, only the super wealthy people have the ability to benefit from charitable donations on their taxes.
Money doesn't buy you happiness. Money buys you options to obtain happiness, if you want it. People derail their happiness and money has nothing to do with it. It needs to come from within. But having money reduces stress and gives you avenues to get there. Some don't need money to get there. Most do.
It's actually a logical fallacy to suggest that because eighty percent of millionaires are first generation millionaires that there necessarily needs to be a lot of millionaire families that lose it. There could be just a growing number of new millionaire families.
Can we just be honest guys. Sure there are downsides to being rich but guaranteed you any bad things you can think of is going to pale in comparison to what people in poverty or middle class deal with. Whatever the “downsides” are. I’ll take them. I don’t care what they are cause it can’t be any worse than what reality already is for us down here
Very true. Anyone who started out poor and now has wealth would never want to be poor ever again. The only "dark side" of wealth is that you get villainized sometimes, but not all wealthy people are terrible. Also, being villainized as an adult once in a while has been far better than when I was a kid knowing my parents can't afford many things. Every example that is used in this video can apply to poor or wealthy people... they are more habits or mentality, rather than being wealthy.
@@vaderwashere365 exactly I grew up in poverty and would never do that again
@@mildchaos6037 yup, not in poverty, but we grew up poor and lower class. Only people who grew up with wealth and have a lot of privilege would think there is a dark side to being wealthy.
If money doesn't buy happiness, you're not spending it right.
I'm sorry, did you really just trash the opportunity of posting a video with *this title* on May the 4th *by one day* ?
I saw your episode on Roth vs traditional 401k's and I had a question- currently moved to up into a 34% federal tax bracket but Massachusetts has a flat 5% income tax rate for under 1 million . You said over 30% go traditional, under 30 Roth. Not sure what to do.
So there’s 24% and 32%, 35%,37% this year. First figure out your federal bracket. Now if you meant 24% and 5%, they gave you a thresh hold, you just have to make a decision. You answered your own question as far as their guidance.
Traditional. Ez game
think you may have options. you may look at using traditional to lower your taxable income, but you actually split trad and roth. like 75% of your investments to trad to lower taxable income but then the other 25% of your savings to Roth so you have tax free dollars also. nothing preventing you pulling both levers at the same time
Roth! So many people who have huge traditional retirement buckets are panicking about the tax implications now that they are in retirement. We don't know what the tax rates will be in the future. If you really can't give up the current tax breaks for future benefits, do some of each.
Perhaps the best advice would be to go consult a good financial planner who will take a look at your entire financial picture. Asking a broad question while giving very little to no other information in a UA-cam comment section will not likely lead you to the answers you really need.
Excellent episode! Thank you so much!
You need some rubber pads under those mics. I'm hearing the bumps on the countertop coming up the mic stands and through the mics. Touching the computer keys is also transferring. The sound is competing with your voices. Just some rubber mats should go a long way.
There are some who represent the “dark side” of wealth. There are others who, for example, allow their kids to find their own way and learn to bounce back from mistakes or errors or failures, give generously of their time and encourage their families to do so (we are a family of special Olympics and youth swimming volunteers), teach their children give save spend, and collect memories together, rather than gathering stuff.
I’m beyond happy to have a good paying software engineering job- no degree, took a free online course for 3 months and now make $55/hour in a low cost of living area. The job is also so fun- medium stress in my case
I don’t need a lot of stuff, or a big house or fancy cars. I think money just gives you more freedom and less stress. I retired at 37, and don’t live beyond my means. I am happy most of the time. 👍😋
Money will help you afford the things that cost money. It's as simple as that.
The more money you are paid, the higher the expectation. In my field it's not uncommon to see people sacrificing their personal life for their career. Those late night work sessions. Having to change plans with family due to an "emergency" at work. The moment you take your foot off the gas someone else is ready to take your place.
What you want to do is decide how hard you want to go and for how long. Once you reach age 40 you'll stop and smell the roses. You'll question everything you've done until then and what you want to do going forward.
I was stuck in an abusive marriage, having psych issues (due to the abuse and my body's negative reaction to medications). I was told by a psych nurse that I had no right to be upset because I had a big house in a desirable area and a BMW. It can very dismissive.
Happily divorcing now. We will both leave millionaires, but he will have more money. I'll be the happy one, though.
Does anybody feom the podcast/channel actually check comments or answer questions? I want to ask a question but would like to know if this is the right place to do so.
My wife and I are part of the 200k+ income and it feels sometimes like we live paycheck to paycheck cause near every dollar has a purpose through “budgeting”. No debt but saving and investing start to feel like rents and bills that are due monthly. The framing of the question is poor imo.
this wasn't a video on the dark side of being a millionaire. Just a rehash of previous talking points. High income earner doesn't equal millionaire, so it's not a dark side of being a millionaire. investable asset millionaire is vastly different than net worth millionaire. so, the dark side of being a net worth millionaire is you aren't an investable asset millionaire. dark side of being a millionaire is being too afraid to decumulate during retirement. dark side of being a millionaire is not having a good tax strategy. dark side of being a millionaire is huge swings resulting in not being a millionaire because of asset allocation.
If you have enough money to solve a problem, you don’t have a problem
Living paycheck to paycheck in my mind means needing the second paycheck of the month (many people are paid every two weeks) to finish paying their debts. I’ve heard others say if you can’t pay all of your debts and living expenses from your first paycheck then you’re still living paycheck to paycheck. Different strokes for different folks.
People expect me to bail them out of financial situations...
Just hit $1m net worth at age 31 so this episode is timely 🙌
no you did not!
If you have to tell us, it never happened.
@17:00 The ultra wealth just give to charity because it's a tax write-off and they can mass-fund projects they care about..
The majority of Americans don't have money to give and even those that are slightly well off only have it because they don't just give away all their money..
Additionally, when I think of charities I just know most of the time 90% of that money isn't going to people in need but to the people who manage those companies..
What incentive do they have to actually fix the issue when once they fix it they stop getting their funding?
I used to listen to these guys regularly but stopped as I feel their contents have gone stale. They tend to rehash the same message over and over without introducing anything of value. Talk to us about how to start a business or how to generate more income or how to capitalize on some of the current trends in the market.
When my todlers becom kids. I'm thinking of teaching them by using the marshmallows test, and then another time have them just just walk for a amount of time, give a fixed amount of $. From there have them spend it and reflect it they think it was worth the effort.
Are people who are the richest on their street happiest then?
16:26 It's like judging the depth of the river when looking at the surface. The reality is that its deeper than it looks.
How much money do you need to have invested to feel comfortable? It seems like an easy thing to calculate, but when you factor all the things that can go wrong that number keeps being inflated. When you finally reach your target you realize the money doesn't go as far as you thought it would. For most people they don't make the money quickly, it's a gradual process over many years. As a result their lifestyle gradually change over that timeframe. It's only when they no longer feel the need to inflate their lifestyle, but their wealth keep increasing, that they start giving more of it away.
If you ask random people on the street how much money they would give away if they got $2 million and you'd hear some good charity answers. Let them sit with that money for a few years then ask them again and that number will drop.
Why did Brian say lubricant? 😅
A million will drive you crazy
*IRS has entered the chat*
1 million is not a lot of money. Your going to need all of it just to survive that a fact
My tax rate is over 30% and roughly 2/3 of that goes to welfare programs. That's more than enough charity for me. If society wants me to be "generous" with my money they can stop taking it by force while at the same time calling me evil for being productive...
@@AugieBenDougie-wk9pr I don't do it lol...
Most of it is going to Medicare, Social Security and interest on the debt
I am working to become a real millionaire, meaning I have invested assets that are over $1MM bucks without my house.
Wait money is a lubricant to happiness?!?
This video isn’t the first place I’ve heard that metaphor. I get it.
Living paycheck to paycheck in my mind means needing the second paycheck of the month (many people are paid every two weeks) to finish paying their debts. I’ve heard others say if you can’t pay all of your debts and living expenses from your first paycheck then you’re still living paycheck to paycheck. Different stroke for different folks.
missed the dark side
Millionaire .. paycheck to paycheck…🤔
Taxes. It's taxes isn't it? lol
It's not.
Man, it’s all of a sudden not all the sudden…so annoying
As upper class parents, we practice scarcity with our two teens. We tell them we are lower middle class and they accept that. It's tough seeing them juggle school, work and social life knowing they don't have to, but it's good for them long term. Tough love I guess...since that is reality.
Lying to your children and giving them a false understanding of what being lower middle class means isn't helping them. They will enter into social situations being very misinformed about the actual experiences of their peers who ARE lower middle class. Why wouldn't you just teach them things like hard work and financial literacy without larping as a different class?
20:50 mark is for you. Many wealthy people we know do not share information with their kids and they rarely follow in their parents' footsteps - which is logical. Maybe it is because we grew up in poor immigrant families and we had to help translate various financial documents and such, but we are very transparent with our teen & preteen. We have been educating them on finance since they were small and using our real life documents, income, houses, etc. to have tangible teaching lessons. Our kids know that because we have gotten a great education and worked hard, we live in a neighborhood with business executives, doctors, lawyers and entrepreneurs. We aren't hiding the fact that it costs a lot of money to buy a home near us, in fact, our teen has been invested in us making an offer on a waterfront home. I highly recommend using real world examples from your life - even if it reveals your wealth - so they can learn how mortgages work, credit cards, etc. Real life examples are always far more impactful than "what ifs" and theoretical examples... at least for most people.
: )
Why having kids is assumed automatically?
A married couple is just as much a family.
Im so offended!
“Work-life balance” is a false dilemma fallacy. I wish people would stop saying that. It makes it sound like life is only made of work or life, and that the two are equally valuable and at odds with each other. Work is a part of life and you naturally bring who you are to your work. We should be talking about “work-life” wholeness. We’re not trying to balance anything. This fits with Bo’s comments that life is fluid and some stages will demand more time at work, while other stages more time at home. And that’s a good thing, not something to “balance”.
Exactly man. Life is split into two portions…accumulation & significance.
That's still balance; balance doesn't mean equal, it means balanced -- shifting the fulcrum left and right is part of that fluidity Bo spoke of.
@@SlovoSanctumI disagree. That’s why I put “work-life” in quotes. It should just be life wholeness. We don’t talk about balancing pedals with steering wheels in cars. You have both, they have two different functions, and we’re not balancing anything. Sometimes we’re steering a lot and other times we’re not. We’ve bought the fallacy so thoroughly that we can’t see the world any other way.
I like to work my butt off like 80 hours/week for a few months and then take a month where I'm only working 48-60 hours a week. Feels like a vacation for me, my wife, and kids.
O
Us millionaires will wipe our tears with wads of cash 😂😂😂. Dark side of being wealthy , this must be satire
Well, they are talking about people who want to be financially free and also be good for their family, friends, and community.
@@JoyceElFer No one has sympathy for the wealthy.
There's definitely a dark side to unearned wealth. I've seen it turn so many children of rich parents into entitled brats, and the death rate from su1c1de and overdose for lottery winners is higher than nearly any other group.
This was a waste of 30 minutes, 0/10 content
Why should anyone have sympathy for a millionaire?
Is net worth the only trait worth knowing? What specific dollar amount does someone need to have to deserve sympathy in your opinion
Have a feeling the “dark side” might be that it’s not spendable, home equity and 401k are of course better to have than not have, but you might not be able to spend like most would think
envy is a much uglier trait
Why are you judging man you know a lot of people earn it that doesn’t make them a bad person now why do you deserve sympathy because you play victim all the time people decide to be the hero of their own stories decided to take up their faith and make a difference in life maybe they don’t wanna be broke. Maybe they don’t wanna sit here and struggle like the average person. Does just because the masses run one way doesn’t mean you have to brother just like it says in the Christian Bible I don’t know what religion you hail too or what spiritual significance you come from but I’m gonna reference something from the Christian Bible, the road to hell is paved in good intentions Jesus said that many will follow the wide path which leads to hell, but few will follow the narrow path which leads to heaven, and I’m a strong believer that God or whatever you believe in or you believe in nothing doesn’t care if you’re rich or not it’s about what you do with it and then if you don’t believe in anything the law of the universe are still real you believe they are governed by God or they are just there but my point is it ain’t bad to be wealthy. It’s what you do with that wealth.
@@moistpeanut5986 I'm just saying if someone doesn't have to worry about their bills or putting food on the table they're in a great place in life
Money does not buy enjoyment. That is a gift from God.
Ecclesiastes 5:19
Everyone also to whom God has given wealth and possessions and power to enjoy them, and to accept his lot and rejoice in his toil-this is the gift of God.
😂
It’s all just a GIFT from the invisible old white man who lives in the sky- not the 75 hours a week I worked for twenty years. 🤦♂️