I’m about to turn 28 in a few months. I’m just now able to save these kinds of percentages because I had a lot of setbacks in life (abusive parents, on my own at 18, no college degree) but I’ve worked really hard and I’m so thankful to hear it’s not to late for me to have a big beautiful tomorrow!
Same, though I’m fortunate to stay here till I’m 19, finishing my bachelors in software engineering before then (I could stay here longer but I’ve been sick of it for years, once I finish school, have livable wage and 6 months emergency fund I’m out)
I’m 42 and nowhere near the millionaire mark. With inflation soaring and investments getting trickier, I’m starting to feel like I’ve missed the boat. Any advice on how to turn things around?
It’s definitely a challenge, especially with so many people struggling to manage risk while growing their portfolio. One of the biggest mistakes is sticking to cash savings only. Inflation eats away at its value over time, so investing is key-but you’ve got to do it wisely!
I agree. I learned the hard way when I suffered big losses back in 2020. The main issue? I was chasing quick wins without a solid plan. These days, I focus on diversifying and sticking to a long-term strategy. Have you considered working with a professional? A good advisor can make all the difference
I’ve tried managing my portfolio myself, but honestly, I don’t know what I’m doing half the time. I’m in my late 30s and still feel stuck. Do you know any reputable advisors who can help?
Yes, I highly recommend Joseph Nick Cahill. He’s an experienced CFA who has helped countless people grow their portfolios-both for short-term goals and long-term wealth. What’s great is he offers free consultations, so you can explore your options before committing. Working with him has really helped me avoid common pitfalls
Thank you so much for the suggestion! I really needed it. I looked him up on Google and explored his website; he has an impressive background in investments. I've sent him an email, and I hope to hear back from him soon
*I didn't become financially independent until I was in my late 40's, and I'm still in my 40's. In addition to having purchased my second home and earning money on a monthly basis through passive income, I've also achieved three out of five goals. I just hope this inspires someone to realize that it doesn't matter if you don't have any of these things yet, you can start today no matter your age. Change your future by investing! I made a rather big decision by investing in the financial market.*
Investing in many sources of income that are independent on government paychecks is the prudent thing that everyone should be thinking about right now, especially given the global economic crisis. Stocks, forex, and digital currencies are still good investments at this time.
Sure, investing is essential for maintaining your financial stability, but making any kind of legitimate investment without the correct advice of a professional can result in a significant loss as well.
I found a guy on YT, James Conole, has awesome content for ppl close to or considering retirement. He will show full walkthroughs that he did with clients considering retirement. He is a cfp
They do talk about this regularly. 3 buckets to limit tax liability. Glide path of more conservative portfolio as you get closer to retirement. Build larger cash reserves and/or bonds of 3-5 years expenses so you don’t have to sell in bad markets, etc. But you are right hasn’t been all in one episode or the focus of one single episode
Great episode guys. The wife and I are well ahead of schedule with around $650,000 as of Jan 1 at the age of 39, with a goal of 2 million in present day dollars. Your content is very motivating and reassuring that what we are doing is working. Keep up the amazing work. pS, can’t wait to get and read your book.
Guys we need to stop using 65 as the desired retirement age , no one wants to have to work that long let’s start a new movement of the new goal of age 60 regardless of Medicare age ,one can save enough to cover the bridge between 60-65 let’s get people in to retirement earlier so they can have some good healthy years to enjoy it , after all you are referencing financial mutants .
Average marketplace healthcare premium for a 60 year old is more than $1000. Not to mention that most people are better off delaying social security til at least 67. They focus on 65 because they are grounded in reality, and retiring responsibly and safely is significantly easier at 65 than it is at 60.
I'm with you there. Yes, 65 is safer. Yes 65 (changing to 67?) is full retirement age for social security. Maybe 65 was in reference to medicare? I don't that age. Regardless, I think there's value in trying to be ready sooner if one can invest adequately. Worst case scenario, we would have more money to retire at 65.
Thank you for expanding my understanding of personal finance and investment. I recently subscribed to your channel. I'd like to express my appreciation to everyone working diligently to earn a living and accumulate wealth during this recession. My husband and I are both retired and debt-free, and we're being prudent and frugal with our finances. Despite the recession, we continue to generate passive income through our savings and investments in the financial market. This investment-focused lifestyle has allowed us to receive a consistent monthly income through passive means, for which we are truly grateful.
Congratulations on your early retirement! That's fascinating news. I'm currently in urgent need of investment advice or tips. Earlier this year, I hesitated and didn't take any action until now. However, I'm determined to try something new and am very open to various investment ideas.
Absolutely, making informed and thoughtful decisions when it comes to finances is crucial. Whether it's budgeting, investing, or managing debt, having a plan and taking the right steps can lead to financial security and success.
Absolutely! If you aim to achieve significant profits from your investments, I recommend defining your investment horizon and establishing a long-term plan.
I am 35 and my wife and I have just started to do yearly vacations last year. Our yearly vacation fund is less than 25% of our retirement contributions and it is built into our monthly budget and automatically put into a separate HYSA.
Same here - my husband and I bootstrapped it in our twenty and vacations were weekend trips to friends’ houses. Now we are in our thirties and started doing longer trips to exotic places. All with cash. Just glad to have found the Money Guys and Dave Ramsey in my late twenties
@@alexanderwalls4466 that is awesome, I got into financial UA-camrs in Feb of last year and we have made awesome progress since then. Previously we would use a bonus or no interest financing on trips. This year we cash flowed a 3 week vacation to NZ. We were already on a good path, but have increased our investments by 10% and are currently on track to hit 25% in about a year since we will have all of my wife’s student loans paid off. I found Dave first, but resonated more with MoneyGuy principles.
Interested in that credit card section around 13:05 where Bo affirmed the average credit card debt figure only includes carried balances, how can someone interested in seeing statistics on cc debt uniquely as opposed to credit card usage find that information? I was under the impression most data on those figures only reported whatever balances were on a card during its respective closing date, that alone would tell you nothing about whether someone pays in full in carries in a given month.
@The Money Guy Show: For the 2024 tax year (filed in 2025), I am now predicting that I have already overcontributed to my SEP IRA. Can I pull those funds now and put them into my Roth IRA instead? Penalties? I will eventually max out my Roth IRA no matter what (because FOO). Alternatively, can I just take a hit for exactly one year's filings and apply any excess which I contributed in 2024 toward 2025, thereby keeping the money in play but not incurring a repeating penalty nor an early withdrawal penalty? I am 31 years old.
You must correct deposits by year end. Not April 15. You can still invest up to April 15 for last year but cannot correct overfunding after Dec 31. And significant penalties.
Excellent question. I'm trying to be careful not to do this in my 457b, and calling them they have no automatic or manual safeguards, it's all up to the saver 😮
8:28 I realized the investment chart utilizes a return of 10% and I was just curious what that investment was in? Most HYSAs I’ve been finding don’t go much over 5%, most hovering between 4-5%.
Unfortunately, almost all these channels use the term “savings”, when they should be using ‘investing’. The S&P 500 has averaged 10.37% annual return since its inception in 1957. I went 100% S&P 500 in 1990 and never looked back.
@@daundredemars5028 I'm not, but I'm 26! I have enough to stop contributing and have 1.5 million dollars! I'm literally wearing a shirt that says "blessed," and I am!
Fair! I know a few people in my area who would like to downsize but would be paying more for less if they do because the market has changed so much since they bought. Combine that with limited inventory, it’s just not going to work. Kinda weird times!
I am so excited to watch this video! I'm 30 with my first child on the way and I am curious to see how/what my finances look like by the end of this year.
Sorry about the medical situation! On the bright side, your $140K, without another contribution, will grow to $2.44 million in 40 years if you average 10% return.
I had initially planned to retire at 62, work part-time, and save money, but the impact of high prices on various goods and services has significantly disrupted my retirement plan. I'm worried about whether those who experienced the 2008 financial crisis had it easier than I currently am. The volatility of the stock market is a concern as my income has decreased, and I fear that I won't be able to contribute as much as before, potentially jeopardizing my retirement savings.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
Reaching this mile marker of nearing 60 years old I can tell you that my husband and I never thought that the financial crisis of 2008 was an easy thing to live through. Many aspects of our financial life (as well as that of most every other investor's financial life at that time) were negatively affected. Housing VALUES DROPPED, wages across the board were affected negatively, etc. It takes time for financial markets to recover, but they do. I got nervous at the time, but my very intelligent spouse told me we needed to stay the course. We did. The stock market is by nature volatile. Stress is stress. No one can get away from it. I disagree with the idea that Baby Boomers had it "easier" back then. I can tell you that no one made us multi - millionaires, but my husband and I, engineer and teacher. We did not inherit ANY money. Invest, learn how to correctly invest. I really like this channel for these reasons. Sound advice from The Money Guy team.
Man I've done all the oops things in life. too much credit card debt. Car payment is too high. House payment is actually about half what the percentages say I can afford (we're at 13%). credit cards will finally be paid off this summer and then there's the student loans.
The only issue I have with this video is that you’re already at retirement age when you hit $1m… but if you’re 25 right now and just starting… will $1m be enough to not rejoin the workforce like we see so many doing today? If you’re living on 4%, is $40k going to be enough after 40 years of inflation?
One million probably won’t make you feel rich or wealthy in 40 years but you’re still going to be well ahead of your peers. I would have to guess that you will still be able to live a modest, comfortable life and that should certainly give some peace of mind. We have to hope our uncontrolled government spending doesn’t erode all of our purchasing power through inflation.
Even if inflation is rampant in the 8-13 percent range, the market would still average return your $1m at average 10% year over year. So... a mil is fine for most people.
@@flyingscalpel7 I interpreted the original comment as asking whether having 1 million dollars in 40 years will be enough. Not that he has 1 million now and will let it grow for 40 years.
Im in my 30s and already hit the lump sum amount but im still investing almost double the monthly amount. Maybe i could take my foot off the gas a bit and enjoy life now more.
To be clear a million at 65 wont be enough to retire. Make sure you do the math for what you will actually need and make that your goal. Still very easy to hit but 1 million is just the start.
They also don’t adjust for inflation. 1 million 30 years from now will probably net an inflation adjusted income of less than 20k per year. That plus social security is a very modest living.
11:46 you misinterpreted the stat. The average American is not paying $700/mo on car payments or even the average for all car payments. It is the average for new car loans.
Am I understanding this correctly? If I was 20 years old I can either with $0 in savings, save $95 a month until I retire and I should be a millionaire or put a one-time lump sum $11,318 and let it sit and contribute no more to it and it would still become a million dollars
Let me give you the correct answer: yes. But don’t limit yourself to that. Aim higher. I think the bigger point is to realize the massive difference it takes to hit the same milestone the longer you wait.
Currently in my mid 30s and trying to get on top of my finances. I was just hoping for some advice, when they talk about saving 20-25% of your gross income, does that include pension contribution. And would that also include your employer match. (I.e) if I was contributing £100 and my employer £100 would I count either 0, £100 or £200 towards my savings of 20-25%?
They really don’t talk much about pensions, but you are way, Waaay ahead of the pack if you have one. I include the match as part of the 20% (employer 5% + you 15%). Save/invest as much as you can and as you get 5 years out from retirement, figure out what you need to live on and with the pension, when you can retire. Can you invest in the S&P500 where you live?
Whats the difference between lumpsum and monthly investment? Monthly investment = How much money to invest if you start from zero. Lump sum = the one that lump investment at an age and do not need to invest another dollar ?
a million dollars isn't what it used to be. Getting increasingly worried that who knows how much I'll need with inflation. I was thinking I can just calculate everything in todays dollars and hopefully that will be a good estimate? Costs go up but so will my real estate
Car is 6% but it’s a 5 year loan. Mortgage is 17% with taxes and insurance. Investing $1500/month at 28. $6000 emergency fund. Just hit the six figure mark invested!
Well I'm the 50 yr old that tried to be a client of yours, but was turned down. I guess my plane was too small. Money Guy only wants huge airliners!!😂😂💰
I obviously have no idea about the details of your portfolio, but I can understand that it's not worth their time to manage small accounts that don't have many funds to work with to build a solid plan or that has potential for them to earn a living.
While a million is a lot of money but unfortunately the inflation just robbed our dream to retire as a millionaire in the US. Still doable but just not in expensive cities.
Would like to see this topic discussed: how long does it take for someone to go from $100000 in retirement balance to $150000 by average contributions & various contributions amounts. Took me almost 15 months to get to the next milestone I mentioned.
Took right at 2 years for me. Hit 100k at end of July 2021. Hit 150k at end of July 2023. I’m already at 185k now, but you have to keep in mind that such short term changes GREATLY depends on the market, which has been on fire since the initial crash from COVID. Took me 6 years to get to my first 100k invested, but i also saved up 80k for a down payment during that time…
Elephant in room: In ones 20's or 30's (or even later) doesn't ones savings rate go to zero right after they put that down payment on a house? Then they show up at the MoneyGuys offices at age 39 with NO SAVINGS (but they have a big mortgage). How does this fit into the plan?
The stats they gave were from a survey of their clients (meaning they’ve at least reached that critical mass they talk about where it’s time to get a financial advisor, think 600k+ to multi millionaires). So out of their clients, that’s how much they have in their emergency fund. You’re right that the average person falls into the other stat you mentioned.
Just to keep you guys honest - the average car payment, according to nerd wallet, is $726 for NEW cars. It's $533 for USED cars. And that is a 60 - 40 split USED to NEW. I just looked this stat up earlier today, how odd.
Because we used the other half of the money as part of our down payment on something else. We got a 2.49% interest rate. @@chemquests We can pay off the car in full but we want to use the money for other things.
Well, we didn't do a 3 year loan, the payment is about 3% of our gross income (not including insurance) and we choose not to pay off the car right now. @@margaretbehre6461
@@chemquests We took the other 50% and invested it for a higher ROI. We can pay off the car today but investing it is better for us. At 2.49% loan it is practically free money. The interest payment is $44 a month. That is not a lot.
Nice insight! Big fan of your channel, I Retired with a seven-figure portfolio and i'm receiving around $169,500 in dividends yearly. I've been investing in stocks for nearly ten years. Passive income is likely one of the most essential and central ways millionaires accumulate wealth. I started putting money into ETFs and other stocks last year, 2k weekly to be precise and my ETF portfolio has risen to 190k since i started January last year, whereas what I have invested is 48k. I'm grateful for my broker Dianne Sarah Olson, who handles all of my investments and ensures I stay above the market.
Looks like she really knows her stuff. I also found her online page and read through her resume, educational background, qualifications and it was really impressive.
Combine your gross incomes and try to invest 20% of that number. Hopefully, your employer matches some. Put it all in the S&P 500 and don’t move it around no matter what the market does.
Wait until I could die an any moment to become a millionaire. Sounds like a bad deal. I want to be a play boy millionaire while I’m still young in my 30’s and 40’s. Planning to become a millionaire at 65 is not a good plan 😂. If you want to be a millionaire do it while your young and you’ll have to be aggressive and disciplined with how you save and make money
You just don't get it. The earlier you start saving and investing, the easier it will be to retire young and enjoy a carefree life and be a millionaire. That doesn't mean you can't enjoy life now. You need to find a balance and do both. Building wealth responsibly takes time. The get-rich quick schemes don't usually work out too well.
@@rmw837 I’m not saying do a get rich quick scheme lol. I’m saying that so many people make plans to become millionaires at a very old age. Most would be dead within 10-15 years. I’m not saving for my entire life just to be able to partially enjoy it for 10-15 years. I say partially because there’s not too many things you’re doing at 65 yrs old. I want to enjoy that while I’m young and can still move(30’s-50’s). I’d rather sacrifice my 20’s and some of my 30’s saving extremely aggressively, living a minimalist life lifestyle so that I can reach my goal faster and be able to enjoy it in my 40’s all the way till death, over saving moderately for pretty much my entire life only to be able to do elderly things with it for 10-15 years then. Even if I lived longer, I still would be able to do less and less over time. Idk why people plan that way. It’s a waste of time imo. Unless you want to pass it down or something, because you certainly can’t enjoy your wealth to the fullest at that age. Also I started investing in index funds at 29. I WISH I knew about stocks in my teenage years. I promise I wouldn’t be working now, or would have maybe 6 years left of working. I would tell any teenager to start investing now. There’s a reason they don’t teach stocks in school 😂
I feel like when talking about these young ages we need to be talking about becoming a 3 millionaire or maybe 4 since that is what will mean the same thing as 1 millionaire by the time we retire.
@@darthstrukt I doubt we will see eye to eye on this. Bitcoin just doesn't have the track record to back these claims. Good luck holding onto your bitcoin, I genuinely wish you the best. I will stay out of that game though.
Are they factoring inflation to their million dollar calc? Assuming 2.4% inflation, your million dollars today will only get you as far as 500k will in 30 years.
I've learned that when playing around with a compound interest calculator, to reduce the anticipated return by 2-3% (eg, using a 7 or 8% return value even though you anticipate a 10% actual return) that will account for inflation over the years and give you a total amount in today's dollars that reflect's today's cost of living.
Two keys to getting wealthy. First is to realize you get paid what your worth and to add value to yourself over time. The second is to live below your means and invest the difference.
12:23 how did everyone on the team misread this stat? It is clear the $700/mo number is only for new vehicle loans. Some people have no cars. Many people have paid off cars or used car loans which this figure does not take into account. The median American doesn’t have a new vehicle loan…
I am a 42 guy with 450k net worth. Mortgage paid in full. Cars paid off, too. Bringing home 7k monthly net. Soon to be 9k net with an upcoming promotion. I spend a maximum of 2.5k to accommodate my lifestyle. I am debating if I should invest the difference in etf stocks or buy real-estate for cash flow. I am not currently married, nor do I have children or dependants.
I need to understand this: Why do so many financial gurus keep treating house like a consumption item? A house is a long term investment that generally appreciates in value, that also has the utility of usage. You want to have a big house, it's a biggest chunk of investment you'll own for most people. If you are a stock guru, then think of it as a diversification item. Still, in my mind, don't leverage too much, but yes do get as big of a house as you can.
A home is a lifestyle investment and net returns after all the mintainance costs, loan interest, insurance, and property taxes are accounted for are negligible in most cases. If you have a majority of your networth tied up in your personal residence, you aren't wealthy. So let's do what you say and see it as an investment and diversification..... a personal residence is a highly illiquid and undiversified asset.... if someone came to you and said, " I want to put 70-90% of my networth into an illiquid and undiversified investment." Without you knowing it was a personal residence, I bet you would be screaming "no! That's so risky!" But they say don't worry, there isn't much risk because it's a bond paying 3%!.... your answer would still be a hard no... I'll keep home equity to sub 10-15% of my networth because I want the vast majority of my networth to be investments that return 4-6% above inflation on average instead of right around inflation like most personal residences.
You need to have liquid assets to live off of in retirement. If you have enough liquid assets to meet your needs, Financial Advisors wouldn't have a problem with it. Most people will need the cash. If it is tied up in a real estate, they will either need to sell the real estate or borrow against it.
My wife and i have our roth IRAs nearly fully funded. Do to alot of sidework we may go over the income threshold. Should we work less to avoid going over or do something else
If you're in that high of a tax rate now, you should be more heavily in tax-deferred plans anyway. For you, the Roth is only beneficial if you will be in a higher tax bracket in retirement than you are now.
@@papasquat355The OP could be in his 20s or 30s - maybe even very likely if both he and his wife do a lot of extra work. There are a lot of good reasons to choose Roth, even with higher income. Perhaps you don’t want required distributions, or just like that you can put more in than with traditional
For the future, you are able to contribute to an IRA for a previous year until April 15th. ie contribute to 2023 IRA until April 15 2024. You may want to wait until Jan 2025 to contribute to a 2024 IRA to make sure you are not above the income threshold before you fund the IRA. Also if you have contributed to a traditional 401k these dollars are subtracted from your MAGI (modified adjusted gross income). So if you haven't maxed that out yet, then you can add more money to trad 401k to lower your income. (I know I have heard Bo say not to take less income in some video at some point).
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
You are only just getting started. 25 is a great age to be. Also it's important to define what's "enough" otherwise we will be continuously chasing a moving goal post.
In today’s inflation market we need a show about 10 million! I’m not joking. It sounds ridiculous but it really isn’t for someone in 20 or even 30/40 to aim. In your example 3400$ a month will get to 10 million.
Tbh it'd just be a lot simpler if they calculated everything using a real rate of return rather than a nominal rate of return. Then "$1mm" would be equivalent to "$1mm with todays purchasing power".
@@chemquestssure I agree. But if someone is already on the program and is a mutant (or a scenario of someone following them starting at different ages) then they should make a video about such people and what can happen to them.
@@NiranjanBendre Serious follow-up question: if someone had $10M and stuck to the 4% withdrawl rule, that would be spending $400k per year without reducing the principal balance at all. I definitely want to earn as much as possible, but I don't think needing $400k+/yr is a reasonable benchmark for a comfortable life, even accounting for inflation over 2-3 decades. Also, saving $3,400 a month as a 20 year old would be like 75-100% of the average wage for that decade, definitely not realistic unless they are already independently wealthy or in the top 0.1% of income earners.
They only refer to $1M in accounts when it comes to a millionaire. Do net worth millionaires (assets minus liabilities) not count as real millionaires?
Our primary residence has equity so we count it. The car has value so we count it too. @@christinewallace9251 There is a certain definition for net worth. Otherwise, can I decide to exclude my mortgage in the calculation since I don't want to count it?....
Nobody knows that one because the few people who do it got really lucky and did something unique. Becoming a millionaire is trivial and easy to do, but it doesn't scale up to ti billionaire status for people with a human-life time horizon.
We live in Florida and typically do three cruises a year each cruise is usually 6k plus we’ve done a two week vacation to Dubai and Maldives that cost approximately 16k by itself lol
Disagree. A minor number of billionaire and multi-millionaire investors can skew up the average/mean from a whole lot of people with savings below maybe $100K. Using the middle/median number shows you equal number of investors above and below that median value.
Try living in Commiefornia during your prime earning years, and living through the Great Recession, losing your home and taking on debt just to survive through it - that's when all financial planning and good financial behavior flew out the window for many.
I’m about to turn 28 in a few months. I’m just now able to save these kinds of percentages because I had a lot of setbacks in life (abusive parents, on my own at 18, no college degree) but I’ve worked really hard and I’m so thankful to hear it’s not to late for me to have a big beautiful tomorrow!
28 is great. You're investing much earlier than most. My wife and I started at 27 and we should be able to retire somewhere between 55-60.
@@cody5596 that’s so nice to hear! Thanks for the encouragement, Happy Easter!
You are doing great! Feeling for you on the setbacks, sounds like grew fast and are incredibly resourceful and capable. Pat yourself on the back! 🎉
Same, though I’m fortunate to stay here till I’m 19, finishing my bachelors in software engineering before then (I could stay here longer but I’ve been sick of it for years, once I finish school, have livable wage and 6 months emergency fund I’m out)
28 is awesome age to start
"Retirement isn’t an end goal, but a journey best secured by careful and consistent investments."
Well said! Retirement is the reward of disciplined investing over the long term, not just a destination.
Well said! My adviser guided me through retirement planning, ensuring my investments were strategically positioned for long-term rewards.
That's a great point! Finding a reliable financial adviser would be essential for me to ensure my retirement plans are well-structured.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.
I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you
I’m 42 and nowhere near the millionaire mark. With inflation soaring and investments getting trickier, I’m starting to feel like I’ve missed the boat. Any advice on how to turn things around?
It’s definitely a challenge, especially with so many people struggling to manage risk while growing their portfolio. One of the biggest mistakes is sticking to cash savings only. Inflation eats away at its value over time, so investing is key-but you’ve got to do it wisely!
I agree. I learned the hard way when I suffered big losses back in 2020. The main issue? I was chasing quick wins without a solid plan. These days, I focus on diversifying and sticking to a long-term strategy. Have you considered working with a professional? A good advisor can make all the difference
I’ve tried managing my portfolio myself, but honestly, I don’t know what I’m doing half the time. I’m in my late 30s and still feel stuck. Do you know any reputable advisors who can help?
Yes, I highly recommend Joseph Nick Cahill. He’s an experienced CFA who has helped countless people grow their portfolios-both for short-term goals and long-term wealth. What’s great is he offers free consultations, so you can explore your options before committing. Working with him has really helped me avoid common pitfalls
Thank you so much for the suggestion! I really needed it. I looked him up on Google and explored his website; he has an impressive background in investments. I've sent him an email, and I hope to hear back from him soon
*I didn't become financially independent until I was in my late 40's, and I'm still in my 40's. In addition to having purchased my second home and earning money on a monthly basis through passive income, I've also achieved three out of five goals. I just hope this inspires someone to realize that it doesn't matter if you don't have any of these things yet, you can start today no matter your age. Change your future by investing! I made a rather big decision by investing in the financial market.*
Investing in many sources of income that are independent on government paychecks is the prudent thing that everyone should be thinking about right now, especially given the global economic crisis. Stocks, forex, and digital currencies are still good investments at this time.
Sure, investing is essential for maintaining your financial stability, but making any kind of legitimate investment without the correct advice of a professional can result in a significant loss as well.
The financial market could be very difficult and tricky..
I barely made any profit from it. I'm off the market please
You should seek for a professional assistance if you're new in the market
I would love to hear more about the "stay wealthy" behaviors. It would be great content for those of us who are closer to retirement.
I found a guy on YT, James Conole, has awesome content for ppl close to or considering retirement. He will show full walkthroughs that he did with clients considering retirement. He is a cfp
I doubt they’ll ever do a deep dive on that since that’s the point they want to manage your money.
Apparently this is pretty easy for people who accumulate wealth, given how retirees fail to spend their wealth before exiting life.
They do talk about this regularly. 3 buckets to limit tax liability. Glide path of more conservative portfolio as you get closer to retirement. Build larger cash reserves and/or bonds of 3-5 years expenses so you don’t have to sell in bad markets, etc. But you are right hasn’t been all in one episode or the focus of one single episode
And also for those of us who suffer from fear of poverty and are unable to relax. Having some math to it would help
Bo 🤝 Being So Excited
Great episode guys. The wife and I are well ahead of schedule with around $650,000 as of Jan 1 at the age of 39, with a goal of 2 million in present day dollars. Your content is very motivating and reassuring that what we are doing is working. Keep up the amazing work. pS, can’t wait to get and read your book.
Best thumbnail yet. Brian is the uncle I wish I had at 15 when I got my first job.
I was 15 when I got my first job and I wish I knew what a 401k was 😭 first American gen here.
Guys we need to stop using 65 as the desired retirement age , no one wants to have to work that long let’s start a new movement of the new goal of age 60 regardless of Medicare age ,one can save enough to cover the bridge between 60-65 let’s get people in to retirement earlier so they can have some good healthy years to enjoy it , after all you are referencing financial mutants .
I think that's just the government's age to retire my dude, so that's what they go off
Average marketplace healthcare premium for a 60 year old is more than $1000. Not to mention that most people are better off delaying social security til at least 67. They focus on 65 because they are grounded in reality, and retiring responsibly and safely is significantly easier at 65 than it is at 60.
I'm with you there. Yes, 65 is safer. Yes 65 (changing to 67?) is full retirement age for social security. Maybe 65 was in reference to medicare? I don't that age. Regardless, I think there's value in trying to be ready sooner if one can invest adequately. Worst case scenario, we would have more money to retire at 65.
@aerated I have every intention of retiring in my 50s, so does my wife. May not happen, but we are more then on track… set the bar high.
Just adjust your age then. If you want to retire at 55 instead of 65 for example just add 10 years to your current age
My biggest lesson from this video is that I must be getting old because I didn’t know YOLO was out 😄.
I mean the song it originated from is from 2011 lol
Thank you for expanding my understanding of personal finance and investment. I recently subscribed to your channel. I'd like to express my appreciation to everyone working diligently to earn a living and accumulate wealth during this recession. My husband and I are both retired and debt-free, and we're being prudent and frugal with our finances. Despite the recession, we continue to generate passive income through our savings and investments in the financial market. This investment-focused lifestyle has allowed us to receive a consistent monthly income through passive means, for which we are truly grateful.
Congratulations on your early retirement! That's fascinating news. I'm currently in urgent need of investment advice or tips. Earlier this year, I hesitated and didn't take any action until now. However, I'm determined to try something new and am very open to various investment ideas.
Absolutely, making informed and thoughtful decisions when it comes to finances is crucial. Whether it's budgeting, investing, or managing debt, having a plan and taking the right steps can lead to financial security and success.
Absolutely! If you aim to achieve significant profits from your investments, I recommend defining your investment horizon and establishing a long-term plan.
@@AlexKowalski-mp3gu May I know the name of the financial advisor who has been helping you with your investments? If you're comfortable sharing.
The financial advisor I work with is *NICOLE ANASTASIA PLUMLEE
Great vid guys. This is a perfect "cover it all in one" overview. You guys have become a huge part of my financial journey. Thank you!
I am 35 and my wife and I have just started to do yearly vacations last year. Our yearly vacation fund is less than 25% of our retirement contributions and it is built into our monthly budget and automatically put into a separate HYSA.
Same here - my husband and I bootstrapped it in our twenty and vacations were weekend trips to friends’ houses. Now we are in our thirties and started doing longer trips to exotic places. All with cash. Just glad to have found the Money Guys and Dave Ramsey in my late twenties
@@alexanderwalls4466 that is awesome, I got into financial UA-camrs in Feb of last year and we have made awesome progress since then. Previously we would use a bonus or no interest financing on trips. This year we cash flowed a 3 week vacation to NZ. We were already on a good path, but have increased our investments by 10% and are currently on track to hit 25% in about a year since we will have all of my wife’s student loans paid off.
I found Dave first, but resonated more with MoneyGuy principles.
I love these shows when they do "By age, By income, By ___." They're usually my favorite. It also happens to be their most viewed videos too! :)
Interested in that credit card section around 13:05 where Bo affirmed the average credit card debt figure only includes carried balances, how can someone interested in seeing statistics on cc debt uniquely as opposed to credit card usage find that information? I was under the impression most data on those figures only reported whatever balances were on a card during its respective closing date, that alone would tell you nothing about whether someone pays in full in carries in a given month.
I don't think Bo has EVER NOT been so excited about this...
@The Money Guy Show: For the 2024 tax year (filed in 2025), I am now predicting that I have already overcontributed to my SEP IRA. Can I pull those funds now and put them into my Roth IRA instead? Penalties? I will eventually max out my Roth IRA no matter what (because FOO). Alternatively, can I just take a hit for exactly one year's filings and apply any excess which I contributed in 2024 toward 2025, thereby keeping the money in play but not incurring a repeating penalty nor an early withdrawal penalty? I am 31 years old.
Bumping the comment so more people can see it
You must correct deposits by year end. Not April 15. You can still invest up to April 15 for last year but cannot correct overfunding after Dec 31. And significant penalties.
@@WallaceDunn: Good to know. Thank you! But how does the correction work?
Excellent question. I'm trying to be careful not to do this in my 457b, and calling them they have no automatic or manual safeguards, it's all up to the saver 😮
8:28 I realized the investment chart utilizes a return of 10% and I was just curious what that investment was in? Most HYSAs I’ve been finding don’t go much over 5%, most hovering between 4-5%.
Total market index probably
Invest in the stock market, think the S&P 500 index
Unfortunately, almost all these channels use the term “savings”, when they should be using ‘investing’. The S&P 500 has averaged 10.37% annual return since its inception in 1957. I went 100% S&P 500 in 1990 and never looked back.
Thank you for doing it for the plot Money Guys
I'm definitely house-poor, but I'm okay with it. I bought a house in 2020 at 2.75% interest, and the house value has doubled!
As long as you are contributing 25% to your retirement that sounds like a great situation!
@@daundredemars5028 I'm not, but I'm 26! I have enough to stop contributing and have 1.5 million dollars! I'm literally wearing a shirt that says "blessed," and I am!
Fair! I know a few people in my area who would like to downsize but would be paying more for less if they do because the market has changed so much since they bought. Combine that with limited inventory, it’s just not going to work. Kinda weird times!
I hit 7 figures of invest able assets at 50. I am almost 51 now. I raised two kids with a stay at home wife and I only broke 100k a year a few times.
Where can I leave my questions to get answered on your Q&A show?
I am so excited to watch this video! I'm 30 with my first child on the way and I am curious to see how/what my finances look like by the end of this year.
FOMO is a serious thing but I would rather spend my time saving and investing now and have fun later
I started investing at 32 racked up a 140k portfolio, but have slowed down since medical unexpectations ha poped up
Sorry about the medical situation! On the bright side, your $140K, without another contribution, will grow to $2.44 million in 40 years if you average 10% return.
I had initially planned to retire at 62, work part-time, and save money, but the impact of high prices on various goods and services has significantly disrupted my retirement plan. I'm worried about whether those who experienced the 2008 financial crisis had it easier than I currently am. The volatility of the stock market is a concern as my income has decreased, and I fear that I won't be able to contribute as much as before, potentially jeopardizing my retirement savings.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
Mind if I ask you to recommend this particular coach to you using their service?
the stock market is at an all time high
Reaching this mile marker of nearing 60 years old I can tell you that my husband and I never thought that the financial crisis of 2008 was an easy thing to live through. Many aspects of our financial life (as well as that of most every other investor's financial life at that time) were negatively affected. Housing VALUES DROPPED, wages across the board were affected negatively, etc. It takes time for financial markets to recover, but they do. I got nervous at the time, but my very intelligent spouse told me we needed to stay the course. We did. The stock market is by nature volatile. Stress is stress. No one can get away from it. I disagree with the idea that Baby Boomers had it "easier" back then. I can tell you that no one made us multi - millionaires, but my husband and I, engineer and teacher. We did not inherit ANY money. Invest, learn how to correctly invest. I really like this channel for these reasons. Sound advice from The Money Guy team.
* SCAM ALERT * Always be careful of fake advisor tips on UA-cam! 🤦♂️
Man I've done all the oops things in life. too much credit card debt. Car payment is too high. House payment is actually about half what the percentages say I can afford (we're at 13%). credit cards will finally be paid off this summer and then there's the student loans.
It's never too late. Step by step you can turn things around. You got this!!
Most people have done those things and now you're ahead of the curve taking action and making progress! Keep on the path !
Im in my 30's and forget "keeping up with the Jones'" i just want the life my parents had on my dads mechanic salary alone. 😢
This “lump sum investment” does it need to all be in one account or can it be spread across different accounts?
The only issue I have with this video is that you’re already at retirement age when you hit $1m… but if you’re 25 right now and just starting… will $1m be enough to not rejoin the workforce like we see so many doing today? If you’re living on 4%, is $40k going to be enough after 40 years of inflation?
One million probably won’t make you feel rich or wealthy in 40 years but you’re still going to be well ahead of your peers. I would have to guess that you will still be able to live a modest, comfortable life and that should certainly give some peace of mind. We have to hope our uncontrolled government spending doesn’t erode all of our purchasing power through inflation.
Even if inflation is rampant in the 8-13 percent range, the market would still average return your $1m at average 10% year over year. So... a mil is fine for most people.
@@flyingscalpel7 I interpreted the original comment as asking whether having 1 million dollars in 40 years will be enough. Not that he has 1 million now and will let it grow for 40 years.
Im in my 30s and already hit the lump sum amount but im still investing almost double the monthly amount. Maybe i could take my foot off the gas a bit and enjoy life now more.
To be clear a million at 65 wont be enough to retire. Make sure you do the math for what you will actually need and make that your goal. Still very easy to hit but 1 million is just the start.
Yes, this.
I can't get the math to work out on their lump sum numbers, I think they are wrong.
@@bensproat1150, they might be assuming a 10% rate of return
They also don’t adjust for inflation. 1 million 30 years from now will probably net an inflation adjusted income of less than 20k per year. That plus social security is a very modest living.
Do us a favor: time stamps
Thank you for all the great information! Brilliant❤
11:46 you misinterpreted the stat. The average American is not paying $700/mo on car payments or even the average for all car payments. It is the average for new car loans.
Am I understanding this correctly? If I was 20 years old I can either with $0 in savings, save $95 a month until I retire and I should be a millionaire or put a one-time lump sum $11,318 and let it sit and contribute no more to it and it would still become a million dollars
Well if you put 11k that’s not enough because that’s only 2yrs if you put 12k so that would be only 6k for 2yrs
It’s $100-200/mo from 20-62
Let me give you the correct answer: yes. But don’t limit yourself to that. Aim higher. I think the bigger point is to realize the massive difference it takes to hit the same milestone the longer you wait.
This is good. This let me know that I'm doing better than I thought. Thanks for the info.
What are we suppose to invest in? Only the s and p 500?
Low cost index fund are a good place to start
Does the 8% for car payment include insurance payment as well? If not, what would be a reasonable percentage between the two?
Currently in my mid 30s and trying to get on top of my finances. I was just hoping for some advice, when they talk about saving 20-25% of your gross income, does that include pension contribution. And would that also include your employer match. (I.e) if I was contributing £100 and my employer £100 would I count either 0, £100 or £200 towards my savings of 20-25%?
They really don’t talk much about pensions, but you are way, Waaay ahead of the pack if you have one. I include the match as part of the 20% (employer 5% + you 15%). Save/invest as much as you can and as you get 5 years out from retirement, figure out what you need to live on and with the pension, when you can retire. Can you invest in the S&P500 where you live?
Whats the difference between lumpsum and monthly investment? Monthly investment = How much money to invest if you start from zero. Lump sum = the one that lump investment at an age and do not need to invest another dollar ?
a million dollars isn't what it used to be. Getting increasingly worried that who knows how much I'll need with inflation.
I was thinking I can just calculate everything in todays dollars and hopefully that will be a good estimate? Costs go up but so will my real estate
The real win would be as excited about what you do as Bo is!
Discipline, money and time? DMT?? Money Guy turning into Joe Rogan now
🤣🤣
Minus the weird conspiracy junk
14:03 "You don't wanna be the poorest guy on your street."
Don't worry I'm not. 60-70% of the neighborhood are rentals.
Car is 6% but it’s a 5 year loan.
Mortgage is 17% with taxes and insurance.
Investing $1500/month at 28.
$6000 emergency fund.
Just hit the six figure mark invested!
Incredible work man!
why have an emergency fund instead of selling portion of portfolio during an emergency?
The markets may be down when you have your emergency
Emergency fund is insurance for your investments so you don’t sell when market is down say 30%
And, if it’s in a 401K, you won’t pay a 10% penalty on top.
"Sequence risk"
Well I'm the 50 yr old that tried to be a client of yours, but was turned down. I guess my plane was too small. Money Guy only wants huge airliners!!😂😂💰
Edelman financial doesn’t have a minimum…or not sure, check them out to verify.
I obviously have no idea about the details of your portfolio, but I can understand that it's not worth their time to manage small accounts that don't have many funds to work with to build a solid plan or that has potential for them to earn a living.
While a million is a lot of money but unfortunately the inflation just robbed our dream to retire as a millionaire in the US. Still doable but just not in expensive cities.
Would like to see this topic discussed: how long does it take for someone to go from $100000 in retirement balance to $150000 by average contributions & various contributions amounts. Took me almost 15 months to get to the next milestone I mentioned.
This is where you're better off just playing with an investment calculator using the numbers that are relevant for you.
Took right at 2 years for me. Hit 100k at end of July 2021. Hit 150k at end of July 2023.
I’m already at 185k now, but you have to keep in mind that such short term changes GREATLY depends on the market, which has been on fire since the initial crash from COVID. Took me 6 years to get to my first 100k invested, but i also saved up 80k for a down payment during that time…
Elephant in room: In ones 20's or 30's (or even later) doesn't ones savings rate go to zero right after they put that down payment on a house? Then they show up at the MoneyGuys offices at age 39 with NO SAVINGS (but they have a big mortgage). How does this fit into the plan?
Soooo true. So many people say "I don't have any debt". But they also don't own a house. I have debt, but it's my mortgage...
25 percent gross or net income?
Gross
Only applies on net if its a taxable account
Is 1 to 2 million dollars going to be enough in 2060?
Better than 0 million that’s for sure
Paid off 9k of debt thanks to the FOO 3k more and I’ll be debt free
Congratulations! Great work!
MMM.....Bo's new acronym:
Millionaire Mutant Mindset
National surveys say 56% of people have less than 1k in the bank how do 48% have over 6 months. And 39% have 3 to 6 months. Some people are lying.
The stats they gave were from a survey of their clients (meaning they’ve at least reached that critical mass they talk about where it’s time to get a financial advisor, think 600k+ to multi millionaires). So out of their clients, that’s how much they have in their emergency fund.
You’re right that the average person falls into the other stat you mentioned.
@@kennycrump ty. I was confused
Just to keep you guys honest - the average car payment, according to nerd wallet, is $726 for NEW cars. It's $533 for USED cars. And that is a 60 - 40 split USED to NEW. I just looked this stat up earlier today, how odd.
It’s crazy how inept the majority of people are at interpretation statistics
What if I put 50% down on a car for 72 months? The payment is not even close at all to 8% of the gross income.
Why string it out?
Because we used the other half of the money as part of our down payment on something else. We got a 2.49% interest rate. @@chemquests We can pay off the car in full but we want to use the money for other things.
The 3 in 20-3-8 is 3 years. So the payment should be less than 8% for a 3 year loan term length.
Well, we didn't do a 3 year loan, the payment is about 3% of our gross income (not including insurance) and we choose not to pay off the car right now. @@margaretbehre6461
@@chemquests We took the other 50% and invested it for a higher ROI. We can pay off the car today but investing it is better for us. At 2.49% loan it is practically free money. The interest payment is $44 a month. That is not a lot.
Nice insight! Big fan of your channel, I Retired with a seven-figure portfolio and i'm receiving around $169,500 in dividends yearly. I've been investing in stocks for nearly ten years. Passive income is likely one of the most essential and central ways millionaires accumulate wealth. I started putting money into ETFs and other stocks last year, 2k weekly to be precise and my ETF portfolio has risen to 190k since i started January last year, whereas what I have invested is 48k. I'm grateful for my broker Dianne Sarah Olson, who handles all of my investments and ensures I stay above the market.
I did read about Dianne Sarah Olson on the web., quite a great resume she has
That's quite impressive, you surely made a good bit of money..
Looks like she really knows her stuff. I also found her online page and read through her resume, educational background, qualifications and it was really impressive.
How much does your FA take in AUM fees?
How would this work for 2 adults who are 30? Does that mean we need to put away almost 700$ a month for both of us
Also trying to find a home for 2 adults and a child rent it easily over 25% in California with a household monthly income of 5,000$
Combine your gross incomes and try to invest 20% of that number. Hopefully, your employer matches some. Put it all in the S&P 500 and don’t move it around no matter what the market does.
Wait until I could die an any moment to become a millionaire. Sounds like a bad deal. I want to be a play boy millionaire while I’m still young in my 30’s and 40’s. Planning to become a millionaire at 65 is not a good plan 😂. If you want to be a millionaire do it while your young and you’ll have to be aggressive and disciplined with how you save and make money
You just don't get it. The earlier you start saving and investing, the easier it will be to retire young and enjoy a carefree life and be a millionaire. That doesn't mean you can't enjoy life now. You need to find a balance and do both. Building wealth responsibly takes time. The get-rich quick schemes don't usually work out too well.
@@rmw837 I’m not saying do a get rich quick scheme lol. I’m saying that so many people make plans to become millionaires at a very old age. Most would be dead within 10-15 years. I’m not saving for my entire life just to be able to partially enjoy it for 10-15 years. I say partially because there’s not too many things you’re doing at 65 yrs old. I want to enjoy that while I’m young and can still move(30’s-50’s). I’d rather sacrifice my 20’s and some of my 30’s saving extremely aggressively, living a minimalist life lifestyle so that I can reach my goal faster and be able to enjoy it in my 40’s all the way till death, over saving moderately for pretty much my entire life only to be able to do elderly things with it for 10-15 years then. Even if I lived longer, I still would be able to do less and less over time. Idk why people plan that way. It’s a waste of time imo. Unless you want to pass it down or something, because you certainly can’t enjoy your wealth to the fullest at that age.
Also I started investing in index funds at 29. I WISH I knew about stocks in my teenage years. I promise I wouldn’t be working now, or would have maybe 6 years left of working. I would tell any teenager to start investing now. There’s a reason they don’t teach stocks in school 😂
Save $38,250 by age 29 without contributing any more money to become a millionaire at age 65. 😊
I feel like when talking about these young ages we need to be talking about becoming a 3 millionaire or maybe 4 since that is what will mean the same thing as 1 millionaire by the time we retire.
That’s why you need bitcoin. 100% YOY on average. Deflationary asset, great long term hold. It’s very volatile so not for short term saving.
@@darthstrukt I doubt we will see eye to eye on this. Bitcoin just doesn't have the track record to back these claims. Good luck holding onto your bitcoin, I genuinely wish you the best. I will stay out of that game though.
Or I could give all my money to Gerry Selbee of Evart MI who will guarantee 50% ROI?
No
Are they factoring inflation to their million dollar calc? Assuming 2.4% inflation, your million dollars today will only get you as far as 500k will in 30 years.
I've learned that when playing around with a compound interest calculator, to reduce the anticipated return by 2-3% (eg, using a 7 or 8% return value even though you anticipate a 10% actual return) that will account for inflation over the years and give you a total amount in today's dollars that reflect's today's cost of living.
Two keys to getting wealthy. First is to realize you get paid what your worth and to add value to yourself over time. The second is to live below your means and invest the difference.
12:23 how did everyone on the team misread this stat? It is clear the $700/mo number is only for new vehicle loans. Some people have no cars. Many people have paid off cars or used car loans which this figure does not take into account. The median American doesn’t have a new vehicle loan…
Its all cool but who wants to be rich when there old?
I save 82% of my paycheck every check at 36. Paid house off completely and debt free. Now I’d like to enjoy life
I am a 42 guy with 450k net worth. Mortgage paid in full. Cars paid off, too. Bringing home 7k monthly net. Soon to be 9k net with an upcoming promotion. I spend a maximum of 2.5k to accommodate my lifestyle. I am debating if I should invest the difference in etf stocks or buy real-estate for cash flow. I am not currently married, nor do I have children or dependants.
Honestly, do whichever brings yoy joy
Bitcoin
❤❤❤
If I had 70k at 28. How much would it be at retirement?
With a conservative 8% rate of return over the next 40 years, that 70k will turn into $1.7 million
I need to understand this: Why do so many financial gurus keep treating house like a consumption item? A house is a long term investment that generally appreciates in value, that also has the utility of usage. You want to have a big house, it's a biggest chunk of investment you'll own for most people. If you are a stock guru, then think of it as a diversification item. Still, in my mind, don't leverage too much, but yes do get as big of a house as you can.
A home is a lifestyle investment and net returns after all the mintainance costs, loan interest, insurance, and property taxes are accounted for are negligible in most cases. If you have a majority of your networth tied up in your personal residence, you aren't wealthy. So let's do what you say and see it as an investment and diversification..... a personal residence is a highly illiquid and undiversified asset.... if someone came to you and said, " I want to put 70-90% of my networth into an illiquid and undiversified investment." Without you knowing it was a personal residence, I bet you would be screaming "no! That's so risky!"
But they say don't worry, there isn't much risk because it's a bond paying 3%!.... your answer would still be a hard no...
I'll keep home equity to sub 10-15% of my networth because I want the vast majority of my networth to be investments that return 4-6% above inflation on average instead of right around inflation like most personal residences.
You need to have liquid assets to live off of in retirement. If you have enough liquid assets to meet your needs, Financial Advisors wouldn't have a problem with it. Most people will need the cash. If it is tied up in a real estate, they will either need to sell the real estate or borrow against it.
My wife and i have our roth IRAs nearly fully funded. Do to alot of sidework we may go over the income threshold. Should we work less to avoid going over or do something else
Any funds in stocks with monthly dividends. That can help grow the amounts over time with reinvesting the dividends for more shares and dividends.
If you're in that high of a tax rate now, you should be more heavily in tax-deferred plans anyway. For you, the Roth is only beneficial if you will be in a higher tax bracket in retirement than you are now.
@@papasquat355 I believe we entered the 24% tax bracket. We are also maxing out 401k and HSA
@@papasquat355The OP could be in his 20s or 30s - maybe even very likely if both he and his wife do a lot of extra work. There are a lot of good reasons to choose Roth, even with higher income. Perhaps you don’t want required distributions, or just like that you can put more in than with traditional
For the future, you are able to contribute to an IRA for a previous year until April 15th. ie contribute to 2023 IRA until April 15 2024. You may want to wait until Jan 2025 to contribute to a 2024 IRA to make sure you are not above the income threshold before you fund the IRA.
Also if you have contributed to a traditional 401k these dollars are subtracted from your MAGI (modified adjusted gross income). So if you haven't maxed that out yet, then you can add more money to trad 401k to lower your income. (I know I have heard Bo say not to take less income in some video at some point).
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Rule Number 1 to be a millionaire: convert $3k USD into Zimbabwean Dollars and BOOM instant millionaire…jk dont do that.
Is it bad that im 25 with $35k saved and it still doesn't feel like enough?
You are only just getting started. 25 is a great age to be. Also it's important to define what's "enough" otherwise we will be continuously chasing a moving goal post.
Sounds like an overachiever that is on his way to retirement at 55! How much are you contributing monthly and where is it invested?
😊
In today’s inflation market we need a show about 10 million! I’m not joking. It sounds ridiculous but it really isn’t for someone in 20 or even 30/40 to aim.
In your example 3400$ a month will get to 10 million.
Tbh it'd just be a lot simpler if they calculated everything using a real rate of return rather than a nominal rate of return. Then "$1mm" would be equivalent to "$1mm with todays purchasing power".
But the average person today barely has $100k, so $1M is a huge improvement!
@@CageMatchRunnerUptbh I don’t know the difference between the two.
@@chemquestssure I agree. But if someone is already on the program and is a mutant (or a scenario of someone following them starting at different ages) then they should make a video about such people and what can happen to them.
@@NiranjanBendre Serious follow-up question: if someone had $10M and stuck to the 4% withdrawl rule, that would be spending $400k per year without reducing the principal balance at all. I definitely want to earn as much as possible, but I don't think needing $400k+/yr is a reasonable benchmark for a comfortable life, even accounting for inflation over 2-3 decades. Also, saving $3,400 a month as a 20 year old would be like 75-100% of the average wage for that decade, definitely not realistic unless they are already independently wealthy or in the top 0.1% of income earners.
They only refer to $1M in accounts when it comes to a millionaire. Do net worth millionaires (assets minus liabilities) not count as real millionaires?
You can’t spend your house or car so I wouldn’t count it but you can is you want.
Our primary residence has equity so we count it. The car has value so we count it too. @@christinewallace9251 There is a certain definition for net worth. Otherwise, can I decide to exclude my mortgage in the calculation since I don't want to count it?....
Technically, yes.
Realistically, no.
Why not?
It counts for your networth, but you don't use your networth to determine if you can afford to retire or not.
But how do I become a billionaire by age?
Nobody knows that one because the few people who do it got really lucky and did something unique.
Becoming a millionaire is trivial and easy to do, but it doesn't scale up to ti billionaire status for people with a human-life time horizon.
Marry someone with 2 billion dollars.
Create
How to become a billionaire?
Nice photoshop glasses 😂
I wish my vacations only cost $3500 we spend approximately $20,000 a year
My wife and I spend maybe 1-2k a year on vacations. What the heck are you spending 20k on?
We live in Florida and typically do three cruises a year each cruise is usually 6k plus we’ve done a two week vacation to Dubai and Maldives that cost approximately 16k by itself lol
@@jamesr5735 then quit complaining and make the change yourself. Don't say "I wish..." when the only thing in your way is yourself.
@@splunk17 whose complaining bedside sock spunk
"I wish my vacations only cost $3500" is complaining...@@jamesr5735
I think mean not median is a better marker….
Disagree. A minor number of billionaire and multi-millionaire investors can skew up the average/mean from a whole lot of people with savings below maybe $100K. Using the middle/median number shows you equal number of investors above and below that median value.
🤙🏽
Money guy always teaches us about compounding. but not when it comes to their fees. Sad!
: )
Try living in Commiefornia during your prime earning years, and living through the Great Recession, losing your home and taking on debt just to survive through it - that's when all financial planning and good financial behavior flew out the window for many.
No one in they're 20s are listening to you guys! Talk to us 40 and ups!!😂
False
I’m sure there are plenty of 20 something’s listening, myself included! For 5 more months at least, then I’ll be 30 haha
Hey I am 30 and present bro🤣
Probably not very helpful to talk about the 20s. As a matter of fact, I doubt any 20s would watch this video if at all.
hello, 20's here
Smart people in their 20s watch it! I personally know of a few "kids" that do and it is paying off for them, big time!
The term is “lost the plot”
A million will mean nothing if we do not get the democrats out of office.
I'm so excited 🤩
I would be to if I was charging people 1-2% of their net worth every year for simple asset allocation.
What a surprise, Bo is “so excited”.