I am 49. I started early with a good income and my stock investments really started to take off in my 40s. Rather than rebalancing away from stocks, as is a standard strategy, I started using more of my available funds to pay down my mortgage (which was only at 3.5%.) I considered this a form of low risk investing that served to diversify my overall financial setup. I have now paid off the mortgage, which of course massively increases monthly cash flow. It is important to remember that recent tax changes removed the mortgage interest deduction for most filers (because you now use the standard deduction). So your mortgage became more expensive to hold. Obviously mortgage rates are now higher for some people, which might make this strategy even more effective.
Around the 40s or 50s is the optimal time to think about paying off the mortgage, IMO. Earlier than that, I think investing and paying down non-mortgage debt is more impactful
You could try debt recycling the mortgage. Pay it off faster but by bit and every 6 months, draw out that same amount as an investment loan. The interest is tax deductible then (in Australia)
After college in 2000 I maxed out my 401k in Software Engineering. Wife also did the same as a Physician Assistant. With our high income we became debt free at age 30 living on one income. We have 22 years of savings and investments and OMG how fast things SNOWBALLED since the 2009!!!!! We will also have three Pensions when we are older. Today we are less concerned about our financial health and focusing on our two kids. Their college is paid off with their 529 and we helped them Max their Roth IRA since age 16. We will gift them the annual limit so they will be ready for their first home purchase. We are regular people down the block who practice stealth wealth with 15 year old Toyotas in the driveway.
Mid 30s and I'm here to see the 40s bracket to see how I compare... Thanks for the videos guys. Based on this I'm waiting on your 50s video because I feel I'll fall closer there and I'm very blessed to be 15-20 years ahead. My goal is to retire by 50 from corporate and work on my own passions and endeavors
When you are talking about financial assets, are we talking purely retirement accounts or also taking into brokerage vehicles? I am entering my 30s, and I have above median financial assets but they are mostly in retirement accounts. And what's the % breakdown between the two? I'm sure it all depends on when/if I want to retire from my line of work, let's say I am ok with pulling out at 67 where modern social security is. I'm commenting on the 40 y/o video as I'm trying to get a bigger picture of where I need to steer my investment dollars.
I'm 34. Me and GF paid off our first house in 2019. Bought second rental fam house aug '23. Will pay that off next year. Both houses will give us about 1.1 Mil net worth. I Will have pension, Gf will have 1/2 pension bc we will have her retire after house is paid off. Key: Had some help from parents in law. And did not do any renovations. Also good paying jobs. >100k each
I am 49. I started early with a good income and my stock investments really started to take off in my 40s. Rather than rebalancing away from stocks, as is a standard strategy, I started using more of my available funds to pay down my mortgage (which was only at 3.5%.) I considered this a form of low risk investing that served to diversify my overall financial setup. I have now paid off the mortgage, which of course massively increases monthly cash flow. It is important to remember that recent tax changes removed the mortgage interest deduction for most filers (because you now use the standard deduction). So your mortgage became more expensive to hold. Obviously mortgage rates are now higher for some people, which might make this strategy even more effective.
Around the 40s or 50s is the optimal time to think about paying off the mortgage, IMO. Earlier than that, I think investing and paying down non-mortgage debt is more impactful
You could try debt recycling the mortgage.
Pay it off faster but by bit and every 6 months, draw out that same amount as an investment loan. The interest is tax deductible then (in Australia)
Can you guys make a Playlist for all your "40s" videos? This is my decade at the moment and I just wanna binge all your videos related to the 40s.
In my 30s, so I love watching these about the 40s
After college in 2000 I maxed out my 401k in Software Engineering. Wife also did the same as a Physician Assistant. With our high income we became debt free at age 30 living on one income. We have 22 years of savings and investments and OMG how fast things SNOWBALLED since the 2009!!!!! We will also have three Pensions when we are older. Today we are less concerned about our financial health and focusing on our two kids. Their college is paid off with their 529 and we helped them Max their Roth IRA since age 16. We will gift them the annual limit so they will be ready for their first home purchase. We are regular people down the block who practice stealth wealth with 15 year old Toyotas in the driveway.
Nice job
That's awesome!
Stealth wealth with 15 year old toyotas!!! Freaking love it dude
Stealth wealth - love it
That’s if both parents can work…. Single house income
The median financial assets at 49 is so sad. That's like just two years of maxing your 401k with a decent match
Mid 30s and I'm here to see the 40s bracket to see how I compare... Thanks for the videos guys.
Based on this I'm waiting on your 50s video because I feel I'll fall closer there and I'm very blessed to be 15-20 years ahead.
My goal is to retire by 50 from corporate and work on my own passions and endeavors
I don’t think a house equity should be ever calculated into that formula because that can dramatically change and is not liquid
Turned 40 in November. I’m on step 8 but I feel like I need to buff up my emergency fund just a bit. Might go back to go forward again
6:45
Median Household income, so does this include couples/partners? If so then that means the income is significantly skewed.
Im 17.8 years away from 49. I need to increase my saving by nearly 50% to achieve a million at 49 :(
Unfortunately, in 18 years $1M will likely not be enough. 1M is barely even enough today.
@@jayflaggs yeah I wouldn't be stopping, that's just when compounding goes nuts. At 8% average return, you'd make 80k in 1 year alone!
@@cameronmmj9291 get some income producing fixed rate debt and you'll be doing very good at that time.
@@jayflaggs then don't save and have $0. Stupid argument.
They said 425.000 for me. I don’t have that… single income house hold for family of 6
When you say crossing into 7 figure status does that count your home's value also, or is that just your savings?
When you are talking about financial assets, are we talking purely retirement accounts or also taking into brokerage vehicles? I am entering my 30s, and I have above median financial assets but they are mostly in retirement accounts. And what's the % breakdown between the two? I'm sure it all depends on when/if I want to retire from my line of work, let's say I am ok with pulling out at 67 where modern social security is. I'm commenting on the 40 y/o video as I'm trying to get a bigger picture of where I need to steer my investment dollars.
I like how their coozies say beer but it’s obviously La Criox
It bothers me that you are using the terms average and median interchangeably. These are different. Mean and average are the same
Same !
(Brian’s Troll here) This show has good general information, but ‘one size fits all’ plans isn’t realistic. Good place for most to start though
I'm 34. Me and GF paid off our first house in 2019. Bought second rental fam house aug '23. Will pay that off next year. Both houses will give us about 1.1 Mil net worth. I Will have pension, Gf will have 1/2 pension bc we will have her retire after house is paid off. Key: Had some help from parents in law. And did not do any renovations. Also good paying jobs. >100k each
Two homes paid off that's great. What proportion of your NAV will not be in real estate after paying off your second home?
Saving to have money when ur 78 when u might be dead 💀💀💀💀
Average and median are not the same
Median is one of the statistics that can explain the average within a data set, so the Median is one of the forms of the average.