Most people think, investing in crypto is all about buying coins and leaving it to rise, come on it takes much analysis to be a successful crypto trader.
Trading without professional guide...Huh I laugh you, because you will remain where you are or even make huge losses that will stop you from trading, this has been one of the biggest problem to new traders
You're right! I have lost a lot trading all by myself without a guide. It's been an uneasy ride for me. Who is your mentor please. how can i reach her i really need help in this bear market now?
Amazing Q, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets 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.
@@AlexandersRodrigueza I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...
Quitting may not be the best approach if you ask me personally .When it comes to investment, diversification is key. That is why I have my interests set on key sectors based on performance and projected growth. They range from the EV sector, renewable energy, Tech and Health (AMD) alongside coins, and gold. I'm also working on an investment plan with my CFA that includes AI looking into Nvidia, MSFT, Alphabet stocks among others. I've been utilizing CATHERINE DIANE PELICAN advice for years and I've made over $1M. I could leave you a lead if you need advice help...
@@rick.austin i thought so. That's why i asked specifically. Makes me crazy to always hear this 401k and Roth IRA in all the videos but there is nothing like this here
@MegaBabygal1 yeah i totally get that. Germany even has a pretax on unrealized gains. Crazy. And recently I've read they introduced a new law to tax your portfolio unrealized gains at around 28% if you move abroad. I think it's called Wegzugsbesteuerung
... I'm new to trading, and I've lost a good sum trying out strategies I found in online tutorials. I would sincerely appreciate any recommendations you have 🤔
Shirley Mae Crisler was my lifeline during last year's bear market. I made numerous mistakes, but I also learned invaluable lessons from that experience, and notably from Shirley herself. She's unequivocally my go-to expert for cryptocurrency and technical analysis
Hi Rick, 1M today will be worth less thank 500k in 30 years. Same for cost of living, if you spend 40k today you will be spending a lot more in 30 years due to inflation. I find these computations misleading
Hi there, the computation is based on $40k "adjusted for inflation" over the years. not $40k fix forever. So you're totally right about the effect of inflation, but it's taken into account. Basically the $40k grow every year as much as inflation during the computation. This integrates the effect of "reduced purchasing power" into the calculation. Mind that applying the effect of inflation twice - once as a reduction of the $1M and once as an increase of the expense from the $40k basis, is wrong. That would be like having double inflation. So you either do it on the portfolio value and keep the $40k fixed, or the other way around. In this video I couldn't spend 10 minutes explaining the computation in every detail, but I did it in another video, if you're interested: ua-cam.com/video/pYO476KOHUc/v-deo.html
@@rick.austinyour file will be more helpful when you introduce an inflation rate. Based on average inflation rate, current annual expenses as inputs compute the target portfolio size and expenses taking into account inflation. This will be more realistic and convincing
@@HoussemEddineHoussem which file do you mean? I offer many. If you mean the compound interest calculator, the inflation is taken into account as separate input variable or do you mean the etf portfolio builder?
@@rick.austinHi Rick, I can see that you added the inflation factor in the compound interest calculator file after uploading the video. Thanks. My understanding from the 4% rule is that it gives the amount you can withdraw from your target portfolio when you reach retirement age. The next year you have to adjust to inflation. So in your file, what i don t understand is how you reach to the conclusion that the 1M which is the target amount in 30 years based on todays expense which is 40k. Ideally, i would prefer to know my target portfolio size based on todays expenses taking into account inflation and 4% rule
@HoussemEddineHoussem hi there, the definition of the portfolio value based on the 4% rule and your current expenses happens regardless. If you retire today and spend today 40k, and you have $1M portfolio today, that portfolio will be enough if you retire 40k on year 1, 40k + 3% on year 2 and so on. So it does take into account the effect of inflation. But it can't be shown in my compound interest calculator because there I show only the development of the portfolio using an average growth applied equally every year. The important point about inflation and 4% rule is that when you calculate your living expenses, they are - as you say - to be calculated based on the expenses of the year in which you retire. So if you retire in 10 years and TODAY you spend $40k, it would be wrong to calculate the portfolio with 4% rule based on 40k. You should first calculate 10 year inflation effect on the $40k (so it comes to around $53k) But let's assume that you retire today and you spend today $40k per year. Then with the 4% rule you get to $1.000.000. One million is actually going to be enough, considering inflation, because the 4% rule is based on empirical tests on past performance with inflation adjusted values. If inflation wouldn't exist, probably 5-6% withdrawal would be acceptable keeping a 99% of success. But considering inflation 4% is the optimal number. You can analyze that with www.ficalc.app and take a deeper look at the 130 simulations, testing first with inflation adjusted values and then with not adjusted. So 4% per year is the amount that, ADJUSTED FOR INFLATION, can be withdrawn in the long term in retirement with around 99% probability that the money doesn't run out. Mind, this is including inflation. So if you retire today and you calculate $40k, $1M is most likely going to be enough. To conclude, if you're close to retirement and you calculate your expenses, then multiply by 25, that portfolio result is enough WITH inflation effects. By the way, taxes are also to be considered. 4% rule considers expenses after tax but when wyou withdraw from your portfolio you pay taxes on earnings so you actually increase your annual expenses by the amount of taxes to be paid the following year.
Hello, I want to start investing, but I'm unsure where to start. Do you have any advice or contacts for assistance?
Trading in Bitcoin now is the wisest thing to do now especially beginner....
Most people think, investing in crypto is all about buying coins and leaving it to rise, come on it takes much analysis to be a successful crypto trader.
Honestly I really need help learning to trade. Seeing my portfolio low makes me very sad.
Trading without professional guide...Huh I laugh you, because you will remain where you are or even make huge losses that will stop you from trading, this has been one of the biggest problem to new traders
You're right! I have lost a lot trading all by myself without a guide. It's been an uneasy ride for me. Who is your mentor please. how can i reach her i really need help in this bear market now?
How much income will 100k generate? anybody with investment experience .
Amazing Q, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets 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.
@@AlexandersRodrigueza I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks...
Quitting may not be the best approach if you ask me personally .When it comes to investment, diversification is key. That is why I have my interests set on key sectors based on performance and projected growth. They range from the EV sector, renewable energy, Tech and Health (AMD) alongside coins, and gold. I'm also working on an investment plan with my CFA that includes AI looking into Nvidia, MSFT, Alphabet stocks among others. I've been utilizing CATHERINE DIANE PELICAN advice for years and I've made over $1M. I could leave you a lead if you need advice help...
@@AlexandersRodrigueza I will be glad if you do . Thanks!
@@AnnBurrow-vb8tt CATHERINE DIANE PELICAN
What's a european equivalent of a Roth IRA or a 401k please
Where do you come from, exactly?
@@rick.austin Germany
@MegaBabygal1 unfortunately Germany is not so investor friendly, they don't have anything of that kind which is worth using
@@rick.austin i thought so. That's why i asked specifically. Makes me crazy to always hear this 401k and Roth IRA in all the videos but there is nothing like this here
@MegaBabygal1 yeah i totally get that. Germany even has a pretax on unrealized gains. Crazy. And recently I've read they introduced a new law to tax your portfolio unrealized gains at around 28% if you move abroad. I think it's called Wegzugsbesteuerung
Great job explaining this and the video graphics were awesome. I see your channel is growing and so well deserved.
Mark! Long time no hear! Thank you so much, glad you enjoyed it.
... I'm new to trading, and I've lost a good sum trying out strategies I found in online tutorials. I would sincerely appreciate any recommendations you have 🤔
Shirley Mae Crisler was my lifeline during last year's bear market. I made numerous mistakes, but I also learned invaluable lessons from that experience, and notably from Shirley herself. She's unequivocally my go-to expert for cryptocurrency and technical analysis
The fact that I got to learn and earn from her program is everything to me. Think about it, it's a win-win situation
Please educate me. I've come across this name before. Now I am interested. How can I reach her?
This is correct, Shirley's strategy has normalized winning trades for me also, and it's a huge milestone for me looking back to how it all started..
Yes, I agree with you. Her platform is wonderful, and her strategies are exceptional
Hi Rick, 1M today will be worth less thank 500k in 30 years. Same for cost of living, if you spend 40k today you will be spending a lot more in 30 years due to inflation. I find these computations misleading
Hi there, the computation is based on $40k "adjusted for inflation" over the years. not $40k fix forever. So you're totally right about the effect of inflation, but it's taken into account.
Basically the $40k grow every year as much as inflation during the computation. This integrates the effect of "reduced purchasing power" into the calculation. Mind that applying the effect of inflation twice - once as a reduction of the $1M and once as an increase of the expense from the $40k basis, is wrong. That would be like having double inflation. So you either do it on the portfolio value and keep the $40k fixed, or the other way around.
In this video I couldn't spend 10 minutes explaining the computation in every detail, but I did it in another video, if you're interested: ua-cam.com/video/pYO476KOHUc/v-deo.html
@@rick.austinyour file will be more helpful when you introduce an inflation rate. Based on average inflation rate, current annual expenses as inputs compute the target portfolio size and expenses taking into account inflation. This will be more realistic and convincing
@@HoussemEddineHoussem which file do you mean? I offer many. If you mean the compound interest calculator, the inflation is taken into account as separate input variable or do you mean the etf portfolio builder?
@@rick.austinHi Rick, I can see that you added the inflation factor in the compound interest calculator file after uploading the video. Thanks.
My understanding from the 4% rule is that it gives the amount you can withdraw from your target portfolio when you reach retirement age. The next year you have to adjust to inflation. So in your file, what i don t understand is how you reach to the conclusion that the 1M which is the target amount in 30 years based on todays expense which is 40k.
Ideally, i would prefer to know my target portfolio size based on todays expenses taking into account inflation and 4% rule
@HoussemEddineHoussem hi there, the definition of the portfolio value based on the 4% rule and your current expenses happens regardless. If you retire today and spend today 40k, and you have $1M portfolio today, that portfolio will be enough if you retire 40k on year 1, 40k + 3% on year 2 and so on. So it does take into account the effect of inflation. But it can't be shown in my compound interest calculator because there I show only the development of the portfolio using an average growth applied equally every year. The important point about inflation and 4% rule is that when you calculate your living expenses, they are - as you say - to be calculated based on the expenses of the year in which you retire. So if you retire in 10 years and TODAY you spend $40k, it would be wrong to calculate the portfolio with 4% rule based on 40k. You should first calculate 10 year inflation effect on the $40k (so it comes to around $53k)
But let's assume that you retire today and you spend today $40k per year. Then with the 4% rule you get to $1.000.000. One million is actually going to be enough, considering inflation, because the 4% rule is based on empirical tests on past performance with inflation adjusted values. If inflation wouldn't exist, probably 5-6% withdrawal would be acceptable keeping a 99% of success. But considering inflation 4% is the optimal number.
You can analyze that with www.ficalc.app and take a deeper look at the 130 simulations, testing first with inflation adjusted values and then with not adjusted.
So 4% per year is the amount that, ADJUSTED FOR INFLATION, can be withdrawn in the long term in retirement with around 99% probability that the money doesn't run out. Mind, this is including inflation.
So if you retire today and you calculate $40k, $1M is most likely going to be enough.
To conclude, if you're close to retirement and you calculate your expenses, then multiply by 25, that portfolio result is enough WITH inflation effects. By the way, taxes are also to be considered. 4% rule considers expenses after tax but when wyou withdraw from your portfolio you pay taxes on earnings so you actually increase your annual expenses by the amount of taxes to be paid the following year.