Should You Save for Retirement or Buy a House?
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- Опубліковано 13 лип 2024
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I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
Got it! Buying stocks during a recession when prices are down could be a good move. You might get them at a lower price and sell later when they go up. Just do your homework and be aware of the risks before diving in!
That's awesome! Investing in stocks with a reliable trading system can lead to great outcomes. It's fantastic that you've been working with a financial advisor for a year now. Starting with less than $200K and being just $19,000 away from making half a million in profit is impressive! Keep up the good work!
Mind if I ask you to recommend this particular coach you using their service?
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
You work for a 40yrs to have $1m in your retirement, meanwhile some people are putting just $10k in a bitcion coin for just fe months and now they are multimillionaires thanks to Charlotte Grace Miller
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I'm surprised that you just mentioned and recommended Charlotte Miller, I met her at a conference in 2018 and we have been working together ever since.
The very first time we tried, we invested $1000 and after a week, we received $5500. That really helped us a lot to pay up our bills.
I'm new at this, please how can I reach her?
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
The housing market is inflated and oversaturated with homes being on the market with astronomical price tags just stagnant for months. It is very clear that or generation will be likely one of the most devastating bubble pops in modern history. Seeking best possible ways to grow 250k into $1m+ and get a good house for retirement, I'm 48.
I don't think here is the place for personalized investment guidance. However, I suggest consulting with a reliable advisor like Azul to ensure appropriate retirement planning.
I’m closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t really start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in over 80% profit than some of my peers who have been investing for many years. Maybe you should consider this too
I've been considering getting one, but haven't been proactive about it. Can you recommend your advisor? I could really use some assistance.
'Kristin Amber Landis' is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
Most people waste their most valuable asset: time. You really only get 5 chances from age 25 to start a low-risk 30-year investment journey towards financial freedom. Miss those windows, and it gets tougher with each passing year.
That’s deep. People don’t realize how quickly those opportunities slip away until it's too late. Planning ahead is crucial
It’s like watching sand slip through an hourglass. You think you have plenty of time until you suddenly don’t. Better to start early and stay consistent
Whoa, this makes me realize how little I know about investing. Can anyone point me to a good advisory firm? I could really use some guidance.
Check out Kristin Amy Rose. Just research her name, you'll find everything you need to set up an appointment.
@@Erinmills98 Just looked her up, she seems perfect. thanks for the rec!
George!! I took your advice about student loans a little while ago. I paid off $41,360 in 2 years! Now I’m adding to my emergency fund so I can save for a house after that.
Way to go!!!
That’s Awesome! 🎉
@@savanah1407 Thank you! I was so excited when I did my last payment in June. Felt like such a weight lifted off my chest
@@maddy-books Super. People don't understand how good it is to be debt free. Less stress, more options!
Keep going! Paid all 40k of mine (25 years old) off in March & now I’m hyper focused on building my e fund
My $2m retirement account has gone up only by 2% in the past year due to rebalancing I did out of fear uncertainty and doubt. What are best alternatives to take in other to secure a financially free retirement and achieve ultimate peace? I don’t want to fail after 22 years of working hard.
At a point like this, when the pressure is already on you to retire, its best recommended you seek the services of an advisor, as this allows you make smarter investing decisions.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $30k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
This sounds very incredible. Could you recommend who you work with please
Amber Michelle Smith has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.
Thank you for sharing, I must say she appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive. I reached out and scheduled
We did exactly as you said we shouldn't: We depleted our emergency funds to make the last final payment on our house. We had $4500 left on our mortgage, and just over $4500 in cash. "Let's do it!" It was an amazing feeling to have it paid off, but we paid a price in stress, due to timing... This was January 2020, just as the pandemic hit and nobody knew what would happen. That's a scary time to have no cash. Fortunately it all worked out, and without a mortgage, we built a decent emergency fund again a couple months later. Whew!
Keep up the great work on your channel!
The rising interest rate can surely control inflation, but won't prevent erosion of the eroding purchasing power of the US dollar. I have learnt my lesson this time. The banks can't be making money off my money, while inflation eats into it. I have set aside 650k to invest in the stock market now, since that keeps up with inflation, but I don't know how to get started.
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
Keeping money in the bank is like paying banks and the Govemment. Here's how it works: The bank gives out your money as loan, and charge interest obviously higher than inflation rate, and then give you, the depositor, interest lower than inflation rate. That means net loss for you. That is why I prefer to invest, and on average, my advisor makes returns that always beats inflation!
To be honest, I've been wary of banks for a while, but I wasn't sure how to speak with an advisor first. Please let me know who your adviser is if it's okay; I need some recommendations.?
Melissa Jean Talingdan a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
Retirement is now more difficult than it was in the past. I've been saving for a long time instead of investing, and right now I only have about $400K. considering all the inflation, i'm thinking of investing in stocks, i dont just have idea on market strategies.
At a point like this, when the pressure is already on you to retire, its best recommended you seek the services of an advisor, as this allows you make smarter investing decisions.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $30k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
Please can you leave the info of your investment advisor here? I'm in dire need for one.
Monica Shawn Marti has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.
Thank you for sharing, I must say she appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive. I reached out and scheduled
The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.
Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.
Safe to say not everybody has the skill to pursue investing. But it's always easy to follow the advice of someone who knows how to i.e a financial advisor. You could anywhere between 10--40k with the right ones. Online businesses are a good bet too if you are savvy.
Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.
Vivian Jean Wilhelm is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
I went with the house. I had a rate of 3.6% and saved like crazy for 2 years. I paid off my house in 9 years. I'm single and appreciate the security of owning an asset/liability. I don't have an escrow or mortgage and have thousands more to invest every year.
My wife and I save about $35,000 a year in income taxes by funding retirement accounts instead of paying down the mortgage, which only costs a little over $9000 a year. Security: It took only about four years to fund enough in those accounts to pay the mortgage for decades if we had to. If you are single and managed to pay off your house early, I suspect your tax rate might be significantly higher than your interest rate was....
I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my goals?
keep contributing to your 401K, remember you are in for the long haul, but I'd suggest you consider financial advisory
Agreed, having a good financial advisor is invaluable, my portfolio is well-matched for every season of the market and has just yielded 120% from early last year. I and my advisor are working on a 7 figure ballpark goal, tho this could take another year.
@@Lindsay-jy this is striking! who is your investment adviser please, if you dont mind sharing? he/she is definitely grade-A smart
She goes by KATHERINE NANCE DIETZ a renowned figure in her industry with over two decades of experience. It's best you research her further on the web, can't divulge much.
Thank you for the lead. I just searched KATHERINE NANCE DIETZ by her full name and easily spotted her profile, no sweat. I have sent her an email, hoping she gets back to me soon.
92% of 72 inches is 66 inches……..5’6” …….there people…..that’s how tall George is 😂👍🏼
Errrrr that’s how short George is 🤭
I had to do the math as well. Good job!
All the pictures I’ve seen of him with ppl on the debt free stage, I can’t believe he’s 5’6”. I’m betting 5’4”
@@criscristofferson7381 LOL
Wow. He's super tall
The thought of retirement makes me cry. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you weren't to blame for.it's especially difficult for people who are retired.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my portfolio this red season. I’ve made over $250k since then.
Glad to stumble on this commentary, I've been getting suggestions to use one, but where and how to find one has been challenging, Can i reach out to the one you use?
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.
I just googled her now and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.
I'm 44 and Ive been putting my money into investments instead of buying a home (I rent) I've got just shy of 7 figures and live quite comfortably off of the dividends and haven't had to punch a clock in nearly 3 years. This works well for me, I really enjoy enjoying my time to do what I want. Thanks George!!!!!
If you are single and can handle it temporary -- I would recommend just renting out a room with 3-4 others for as long as you can -- then INVEST THE REST!!! -- Owning a house is pretty expensive with phantom cost/tax and maintenance -- and have gotten MORE expensive recently.
Rent a room with 4 or 5 other people in one room?? That sounds horrible lol that's what illegal immigrants do
Don't EVER give up on the employer match.
Not entirely true. especially in short durations. It's entirely possible and very likely that paying off debt in a short window would allow you to save more had you payed off instead of invested. You really should calculate this out and make an informed decision.
@@pdxmusl1510almost entirely true. Only reason to not is unless you are in a payday loan situation or are MASSIVELY in debt. Free compound interest for your future is better than paying off a lower interest loan slightly earlier.
I kept mine by hair prior to my layoff in 60 some days. I just hit my 3 year requirement to be vested and almost lost all of it. Got lucky.
@@pdxmusl1510I can’t think of any debt in the world that clocks in at 50% or 100% interest. Which is what it would take for debt to outweigh the gains of an employer match in a 401k. But if you are going to be terrified of your consumer debt just to get that employer’s match, then it could maybe be the best move psychologically. Just not mathematically.
@@pdxmusl1510 the match is a higher rate of return than any interest on debt.
I just graduated from school and am single and making $250k. My rent is $1400 but any house in my area I'd want to actually buy is minimum $800k. I would much rather invest my money than buy a house I have no use for at the moment
Just rent. You would have to look way outside your area for home less than $500k. Dave Ramsey advice is to buy a low price home then move to a more pricey home later. Its not going to fit everybody idea of owning a home.
Wtf you do just graduated from school and making 250k??😂
@@crzycolchris dentist
Increase Emergency fund to 6 months if you’re planning to get pregnant. A lot of things can happen during pregnancy and other complications on delivery of the baby. It will give you peace of mind and really focus on the pregnancy journey and other stuff.
I most certainly wouldn't advise you just leave your money to lie fallow in the market in the name of saving for retirement. Buy a house, maybe yes. But most importantly consider diversification and give priority to investment
Couldn't agree more. AI stocks especially, will dominate 2024. I prefer NVIDIA reason being that they are better placed to maintain long term growth potential, and provide a platform for other AI companies. I know someone who has made more than 700% from NVIDIA n few years.
NVIDIA is lit, other AI stocks many people do not know will continue to dominate for at least the next 5 years. I was lucky to have my CFP advise me on this at a very early stage of the market boom. I'm proud to say it's been an amazing journey
You're right, I and a few colleagues equally keyed into this early with our salaries. Today our portfolios' worth have accrued 6figure dividends, individually. Super happy I took the advice and equally passed it down to colleagues, when my portfolio manager suggested that.
This is awesome! I know I'm late to the party but better late than never. Please how to start on this journey, and can I be able to seek the assistance of your manager who's got an amazing foresight
Sure. Kathleen Cheryl Constantz is a hot topic among the finance elite in America and beyond. All the info you need to set up an appointment is on her web page. Just a search away.
I have a similar issue. I'd like fix my house, but I'd hate to stop saving. And every time I feel like I'm doing well something breaks and ruins my savings.
If the house fix is just cosmetic, and you already have a fully funded emergency fund, wait until your investments are at $100k to do them. Because by then, you can afford to just contribute up to your match and your capital will do most of the heavy lifting for you. Now if it’s an urgent matter, that’s what an EF is for.
92% to 6ft tall = 5' - 6 1/4". I did the math
I calculated 5 ft. 6.24 in.
@@TheDigger1967The 0.01" matters!
I got 5’ 5”
I am so glad you did this episode because we literally discuss this monthly, do we just bulk up our HYSA at 100k and other retirement max outs or buy a house, because houses are insane right now and home ownership cost more than one realizes.
Start early with diversified investments in stocks, bonds, and real estate. Maximize contributions to tax-advantaged accounts like 401(k)s and IRAs. Regularly review and adjust your strategy to ensure security..
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian C Nelson.
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
I'm surprised that you just mentioned and recommend Mr Brian Nelson. I met him at a conference in 2018 and we have been working together ever since.
It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $875k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
As a new investor it's always great to hear from a person who has gone through all the difficult times and come ahead of it. What are some strategies i can employ to be successful?
Her name is ‘Sharon Marissa Wolfe’. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks
Thanks for this one George, this is the point that always confuses me with the Ramsey babysteps: How it goes from 6 month emergency fund, to save for retirement, then pay off the house early with no mention of saving for the downpayment.
I think Dave Ramsey must have come up with his baby steps with a specific demographic in mind--middle-income homeowners with credit card debt and not enough retirement savings.
Doing both. Baby step 4 is rocking, and I'm saving for cash property. In my case, I may start with a small mother-in-law house to live in for a few years, then the shop for tractors, tools, equipment, etc., then save to build the real house. "The road less traveled..."
most of us can only dream of saving up for the smallest houses on the market...
Recalculated my BS 3b today. With selling my Tacoma, I should be able to buy in about 240 days! Credit will be N/A by then as well. SO EXCITED!!
6:55 Well, since you asked how I'm doing, I currently have a 4.5 month emergency fund sitting in a HYSA. Slowly but surely building up that savings to reach 6 months saved.
5:18 You have roughly 84% odds to live to 60. You can make adjustments based on how you live, but it's not guaranteed you'll make it to 60. That doesn't mean don't save, but you could spend your entire life holding off on buying something until 60 and you never actually make it.
You can’t afford the house if you can’t also afford to save 15% towards retirement. YOLO works both ways. You might be on this earth a very short time, but you might also live to 90. Statistically, it’s about the same chance you die before 60 as it is living to 90 (per actuarial tables), about 15% chance of either scenario occurring
@@dynoFF30 I think you're a bit confused. The discussion point is about his statement you're going to live to 60 and how that relates to saving for retirement, which I then made the point that one should save for retirement and also enjoy things in the moment. What's a house have to do with it? Why add that you may live until 90, of course that may happen, I never said otherwise lol.
You can’t go by average life expectancy. Average includes a lot of people very different from you. My life expectancy is pretty high, like 92. since my
Father died I look at people 45+ and estimate how long they are going to live based on lifestyle. Of course I don’t know their family history. And random disease/accident can happen. But in general you can see the path people are on. it’s disturbing when it’s bad.
I’d rather plan for the high chance I live past 60. Surveys clearly show most people over 40 wish they saved more when they were younger and very few wish they saved less. Also, there’s no reason you can’t enjoy life while also saving at least 15% of your income.
@BadMannerKorea A 20 year old has a 90%+ chance of making it to age 60.....
I’m 5’6” too. If George and I get on each other’s shoulders we would be the tallest person ever. Strength in numbers.
My husband and I are already on babysteps 4 and 6 and have gone through FPU but I just think you’re funny so I watch for the laughs
*❤️❤️WHAT ARE THE THINGS YOU WISH YOU KNEW EARLIER IN THE TRADING WORLD*
In trading, one thing I wish I had known earlier is the power of copy trading. It's a method where you replicate the trades of successful traders automatically. This approach allows you to learn from seasoned professionals and potentially achieve profitable results without needing extensive market expertise. Copy trading simplifies the process for newcomers and offers a way to participate actively in the financial markets with reduced risk and increased confidence..
No doubt copy trading is revolutionary. I can now copy trades directly from a hedgefund manager. Literally changed a whole lot and I am glad people with the opportunity are paying attention to it now
I am really interested in this but which hedgefund manager is best and can help me on this?
I have tried quite a good number of hedge fund managers but Menon stands out. His approach is unique and he's consistent and always delivers good ROI
How can I get to the Menon Hedgefund manager???
Thank you! I'm a 53 year old renter and have been stalled at baby step 3 because I want to buy a house but can't do it putting 15% towards retirement. I will continue saving for down payment and invest up to the match. Thanks for making it make sense
At 53 i’d want to buy ASAP.. it’s a lot of security imo. I’d lower investments and fast forward to buying a house, especially with rental pricing and housing instability currently.
When we retired life became less expensive. But the downsizing did not apply. We were at home more, took up hobbies, some like my husbands carpentry saved money, but we needed at home space.
Thanks for clarifying take home pay
I have a idea I have been toying around with and would like your opinion. I work for a City that pays out a pension when I retire. The plan offers a "buy service credit" option for up to 5 years. Here's how it breaks down. I can buy 5 years starting today for about 160K paid back monthly over 10 years. I am approx 16 years away from retirement based on my figures. The difference for when I retire (between buying service credits and not) is about 1600 a month. Basic math tells me I would spend 1300 a month now for 1600 a month increase in retirement paid out for my lifetime and then at 50% when I die paid to my spouse for her lifetime. For full transparency, both of our homes are not paid off, hers is being rented out. Both will be paid off before we retire as we are making extra payments on each. Should I take the extra 1300 and put that on the house or buy those service credits? The other option I thought of, is using some of my 457 as a down payment on the service credits. Both of us max out our 457 and 403 as well as a ROTH. I know to get rid of debt first, but being that our plan is pay off the houses before we retire anyway, should I take advantage of the service credits while I still can?
I agree paying off debt first the only caveat is if you don't have a 401k instead contribute to a roth IRA since you are capped at a yearly amount with it being tax free on earnings I would still contribute to that and max it out yearly since right now its only 7k a year max.
Great vid great question!
I love the boy meets world reference! Best of luck "plays with" or Mr squirrels
I agree with everything except pausing investing to pay off debt if we’re talking about employer match. 50-100% instant return on investment trumps 30% APR debt any day.
I think it’s best to invest the minimum needed to get the employer match for 401k, then everything else towards consumer debt in step 2.
Thanks for continuing updates I'd rather trade the crypto market as it's more profitable. I make an average of 25k per week even though I barely trade myself
That's impressive! When you say you barely trade yourself,' what do you mean?
I signed up for Dave Boozer's *'Earn and Learn'* system
It's a secure and supportive way to improve your trading skills while earning, the best part is there's no upfront payment required
That sounds interesting! Can I sign up too? How can I reach out to Dave for a session?
Is it true that there's no upfront payment for a 1-on-1 session with Dave? I want to confirm before signing up
I rent a modest duplex and I retired early so that was the path I chose and am content. Doing the math (cost of buying/owning a home vs probable rent increases over 30 years) and it just makes zero financial sense for me to buy a house, I don't even want one really (I really hate yard work), I just wish I had a garage.
Might as well save for retirement as you are not "buying a house" of you have a mortgage. Who wants to have a house that the bank owns? Spending your life and money paying while falsely believe that you own.
When you are in your 20s it seems crazy to save and invest money for when you you retire in your 60s. Afterall, the thought is that you might not live to see 60 anyway.
The reality is that you don't have to wait until you are in your 60s to retire. So think of it as two goals. There's regular retirement, which is full retirement age in your 60s, and early retirement, which is anytime before that. Save and invest money in the appropriate buckets for both if you can, and if you can't then save and invest money for regular retirement.
I'd say that if you can max the contribution limit to retirement accounts for 30+ years you'll be set for regular retirement unless your expenses are high.
I choose to have a 3-month emergency fund because I have personal leave at work, so I get paid when I am home recuperating from surgery. If I was receiving a paycheck while I was home recuperating, then I would definitely need a 6-month emergency fund.
Yes
I can relate, but in the opposite way, George. I'm a 6 ft tall woman, and I get stopped in the street all the time with ppl demanding to know how tall I am. 🙄
Better to be tall than short.
I was not expecting twirking squirrel. I'm disturbed. 😂😂😂
Good sound advice👍
10% of a portfolio in single stock isn’t a bad idea. Especially when some ESPPs offer -15% off the lowest share price of the money. Has the potential to be a huge wealth builder
Depends on the stock, obviously but general random company I would rather sell the stock at vest date and put it in S&P500. Now if it is a great company like Amazon, Microsoft, or Nvidia then I would be fine with having it be 10% of my portfolio
I bought about $20k worth of my company stock at a discount over the course of several years. In 2021 the stock ran 20x. I sold almost everything when it hit 10x. Cashed out $200k that I then rediversified into a house and maxed out retirement contributions since then.
Plays with squirrels is a Boy Meets World reference!! Come on, George 😂
The numbers that I personally used are that I have a roughly equal number in my retirement and equity in my house. Also I have a full 6 month emergency fund in a high yield savings connected directly to my checking so I can do an instant transfer if necessary.
The reason I’m about 50/50 between retirement and real estate is just because I’m generally very confident in the long term returns in the American housing market.
Personal residence values have only increased an average of 3-5% gross in the long term. Your home isn't making you money unless you're renting it out. Keep your home equity to sub 15% so the majority of your networth is actually working for you at a much higher rate than inflation over time. Your home is more likely to just keep up with average inflation. The wealthy don't keep 50%+ of their wealth tied up in their single personal residence.
@@thehomeless_trucker you’re doing your math incorrectly. I put 20% down in cash and am making 3-5% on the total leveraged value. Multiply 3-5% by 5 and you have the real number
@@tylersanders2388 I made 26% on my total portfolio last year, which is conpounded... If you didn't buy a home until that 20% down only made up sub 15% of your investments, your home value would never come close to touching your investment portfolio after 30 years. You will never see 10M going your route.
Run the numbers over 30 years and watch your investment portfolio swallow your home equity when you put investing first. Again, the wealthy didn't become wealthy by throwing half their money into their single personal residence.
@tylersanders2388 Just ran the numbers.... 80k for your 20% down on a 15yr note with 4% average gross return on total value, and 80k invested at 10% average gross return.... 30 years, your home is valued at 1M with no mortgage... investments at 1.4M... networth of 2.4M. so much for leverage, eh?
Now, let's not buy the home until that 80k down is 15% of your investments.... leaving your 533k portfolio at 453k, and grow to 7.9M over 30 years, leaving you a networth of 8.9M.... invest an extra $600/mo for those 30 years, and your networth would cross 10M.
@@thehomeless_trucker your math is done in a bubble, not taking into account the fact that without buying a home you have the majority of your monthly budget getting thrown away towards rent. Housing is a rapidly increasing monthly cost, and the mortgage fixes that cost over a long period of time while taking advantage of leveraged 4% average annual returns.
We have a 10 year fixed rate mortgage instead of a 15 year to get a little lower rate (payment fits within the 25% guidelines). I know the Ramsey plan recommends 15 years but does doing a 10 yr fixed mortgage go against the plan? I figured it would be a positive getting out of debt quicker. 10 year always pays off within 10 years.
It’s fine. Nothing wrong with it as long as you still invest 15%. The idea is not to lose the benefits of compound interest while also paying off house early for security and reduced amount you pay on interest.
0:11 The question asks: "George, have you ever thought about opening a towing company?" 🤣🤣 Kamel Towing!!!
that's hilarious 😂
Which SAP 500 do you put money in though? There are different versions
For a 24 year old, it's a good thing you can't access your retirement money until you're 65!
People should be retiring at 50 years old NOT 65 Especially in Bidenomics dumpster fire.💩
You can access it. 72t, Roth conversion ladder, rule of 55, and Roth contributions all allow penalty-free early withdrawals from retirement accounts. And the age to withdraw without any of those strategies needed is 59.5, not 65.
I'm 21 years old, and my net worth is $27,326.61 and 0 debt. I am investing 80%-90% of my monthly income in a fidelity brokerage account. VOO (66.34%) for foundation, QQQ (9.55%) for growth, and NVDIA (23.88%) for experimental fun.
My question is, why would i lock up my money in a roth ira until i am 65 when i could do the same thing in fidelity and preserve financial flexibility at the cost of some taxes on capital gains?
But if i really cared too much about those capital gains taxes, i could utilize an SBLOC to avoid taxes and, due to the risky nature of an SBLOC, hold multiple asset classes to protect against a market downturn.
@@exotic_poiison9070Sounds like me at your age I’m 27 😂 but that’s a great start! It will only keep growing enjoy the journey! And I do recommend most of your portfolio in QQQ and VOO but have some fun like you said but do the research as well before buying individual company’s and these guys have a lot of good advice but I agree having the financial flexibility is way better these guys are giving the traditional work your whole life away as a slave to a 9-5 and contribute to your 401k it works but not if you plan to retire early or even like a barista/coast fire situation don’t think they include People that want to quit there jobs asap!
Home ownership in HCOL is a tough nut to crack. Miami median home price is $580K (aka a shed). Assuming 25% down, 6% rate (low I know), 15-year fixed + tax + insurance = $4,750 monthly PITI * 4 = $19,000/month or $228,000/year net of tax annual salary required! Send help.
tell me about it Andy same in hawaii
@@thebestthingthatneverhappe6729just do a 30 year mortgage and make extra payments when you can! I don’t know why they say the 15 year bullshit makes no sense!
I would recommend getting your company match, then saving for a house, then investing for retirement based on my personal experience. Match is free money, don't leave it on the table. Getting a house helps you save more for retirement (fixes your housing cost at a lower price than rent), but saving for retirement doesn't help you buy a house.
@GeorgeKamel
Do you ever recommend pausing investing to aggressively pay off mortgage once in baby steps 4,5 and 6? I didn’t do the baby steps in order because I was so late being introduced to them so I had been investing 12-15% all along as well as having an emergency fund. I finished baby step 2 in March and step 3 in June. Feeling gazelle intense about paying off the mortgage. Would pausing investing or even decreasing investing down to employer match make sense short term to pay off house?
No. Never pause investing to pay down the house faster. Find other ways to trim your budget and expenses, and/or make more money.
$40k in student loan debt (finishing my masters) and we have savings to wipe almost all of it out, but we have a major life transition in 15 months (husband is leaving the military & moving to family, but has a job secured already). Should we wipe out student loan debt (our only debt) and have 8-10 months to rebuild savings or hold tight to our savings until after the transition?
Where do you keep your emergency fund? All in a cash savings account or mixed with some investment accounts? I feel like that's a lot of capital to have sitting in savings account doing very little.
I'd keep a small fund in cash and dump the rest into a 401k. Six months of expenses means job loss. and in a long term job loss, drawing from a 401k will be the same as after tax money, even with the early withdrawal penalty. 401k -> bypass income taxes -> build wealth / emergency money faster -> if you don't have an emergency, you are still growing your money tax free
RSU in my company can be sold after 3 years.
I have a question does the 25% mortgage payment include escrow or only Principal and Interest?
include escrow and hoa maintenance
“Who run the world, SQUIRRELS!” That is soooo George’s tune 😂
12:20 Great advice, too bad it's essentially impossible. More than a 50% downpayment for a small home, and that's with a good income.
Plays with squirrels is a Boy Meets World reference aka Eric Matthews
A little over simplified regarding RSUs, in my opinion.
Some companies give them to you at a discount - I worked at a company that would guarantee a price 15% below market. So guaranteed 15% ROI but it was not tax advantaged.
Also should not sell immediately. Understand when they vest and when you can pay long term capital gains tax vs short term
You’re confusing RSUs and ESPPs. They are very different. What you described is an ESPP.
At least grab your employer 401(k) match, but preferably 15-20% going to retirement. Anything leftover can go into after-tax investment account or HYSA to save for a house.
That’s a good strategy!
All a 401K does is keep your money hostage. Set it free.
@@miketheyunggod2534 It does not keep your money hostage. You can pull money out with a 10% penalty, which should be covered by the tax you saved on income going into it. You can also borrow against it for a house down payment, and pay the interest to yourself. You also don't have to invest it in the stock market, most 401k's have a cash equivalent or a money market fund that will earn interest and is very low risk. I have literally done all of this myself and it works just fine. funding a 401k funds your retirement, boosts your savings through tax deferrals, can be an emergency fund and a source of a home down payment, all at the same time.
@@miketheyunggod2534 That’s not all it does. It provides a tax incentive, and your employer will often double your contributions. But it does disincentivize people from touching it early, which is a good thing. People need that money for retirement.
Also, I include HSAs as retirement accounts, and those don’t have any kind of early withdrawal penalty. Which is good because I will need access to mine when I retire early.
I live in Charlotte and a 2400sq 4 room to 3 bath is upwards of high 500k to 600k but I’ve seen places in Texas that same dimension but higher 400k to low 500k. Can anyone explain?
Property taxes in TX is high.
Depending on the company you are working for, I would *absolutely* wait a year before selling those RSUs so you pay less taxes on that sale!
George, do I count my state government pension contribution that my employer and I put in as part of the 15%? 🤔
Wondering the same thing
Thank you for sharing such an amazing message 🙏Indeed God’s blessings and manifestation over my family has come to pass. I am so grateful!❤️Awesome God ❤️my family are happy once again and can now afford anything for my family even with my Retirement.$67k weekly returns has been life changing, after so much struggles.
Hello, how do you achieve such weekly returns? As a single parent i haven’t been able to get my own house due to financial struggles, but my faith in God remains strong.
Maria Angelina Alexander I really appreciate her efforts and transparency.
I remember giving her my first savings $20000 and she opened a brokerage account for me it turned out to be the best thing that ever happened to me.
This is a definition of God's unending provisions for his people. God remains faithful to his words. I receive this for my household.🙏
Wow...I know her too she is a licensed broker and a FINRA agent she is popular in
US and Canada she is really amazing woman with good skills and experience.
3:10 - This is a great clip on why a home is not an asset. Thanks for explaining it to those not familiar with Robert Kiayosaki's assets vs liabilities.
You take advice from the criminal? And think he invented anything?
??? an asset is anything that has value. Maybe Robert Kiyosaki should buy a dictionary.
@blanketwodahs6741 Clearly it isn't or George wouldn't have made a difference between having net worth and having assets in this video.
Assets put money in your pocket. Unless you are renting out that house, it is not an asset.
100% an illiquid asset that u can sell and now u have cash a liquid asset
@@M_SC How is he a crininal?
lmao at George's picture at age 24.
George! As a millennial you should know that Plays with Squirrels is a reference to Boy Meets World!
The 24 year old should get a Roth IRA or just an individual taxable account I’m 27 and started at 21 I did have an employer match on the 401k but I hated that somebody else was managing it! Now I manage all my accounts myself! They have some good advice for the most part but you should be investing as much as possible as long as you can afford your debt but not if your drowning in it! The market goes up more then not you for sure want to participate as much as you can afford to!
8:54 George do not tell me you don’t know that’s Eric Matthew’s name in Boy Meets World
The squirrels dancing 😂😂😂
Ridiculously good episode
12:30 This is where the Ramsey advice loses a ton of people due to the reality of the market.
Because there wants continue to exceed their spending abilities.
I live in an expensive area if the country. 25% for housing is easily achievable. NY & ca. Might not be. But most of the country it is.
@@pdxmusl1510 if you look at the actual data, you’d find your idea to have VERY limited validity.
4.7% money market for my Emergency funds
Research seems to show a correlation between shorter people and life expectancy...maybe because us tall folk are always hitting our heads?
the part about pausing your 401k investments to pay off your debts first. Does that mean you for go the price match too? Or should you stick with the matching at least? I feel like you'll lose more money that way no?
Ramsey team recommends you forgo the match but you shouldn't. A match is 100% guaranteed return, there is no debt with 100% interest.
I wouldnt recommend that. Continue with the match at minimum
George is 5 foot 6in 😁👍🏻
Oh snap, so this isn't George's solo channel. Ramsey has a bite.
Is 40% of a 6 month emergency fund in a conservative ETF crazy? (young, single, seasonal worker).
Justification: All of my financial accounts are with the same bank (checking, credit, brokerage, retirement, etc.)
Opening a high interest savings account to park that 40% seems like it would reduce online security, and make it harder to keep track of my $.
...alternatively holding all of the over 10k in cash feels wasteful.
Plays with squirrels is from Boy Meets World.
Definitely retirement. The average returns are above the interest rates on the mortgage (right now and for the past decades), and my retirement will grow enough to off my house when I retire, and not have any more mortgage payments, which is the main purpose of paying off the mortgage early. But by adding more the retirement, that snowball will grow much bigger.
You actually should do a break even calculation. Pretty much no matter the spread, I can pretty much always give you examples of all 3 outcomes. Loan payoff better. Keep loan better. Or it doesn't matter.
My break even point on my house is 20 years. Which is roughly when I plant to retire. So it doesn't matter what i choose. All things being equal, my net worth will be the same at retirement age. I have a 2.865% mortgage rate. So I've chosen to pay it off early. For the piece of mind. Even though mathematically it doesn't matter.
What’s the difference between investing money into my personal Roth IRA where my money is locked up vs longterm investing just regular, like shares in the S&P500?
Taxes. Taxes on the dividends and when you sale. otherwise its the same.
Also, your money isn't locked up in an IRA. You can get at if you need to, I have done it several times. It isn't near as bad as it is made out to be. Retirement accounts can give a huge advantage if you use them right, but people are so hung up on interest costs they fail to see all the money going out the window in income taxes.
A huge tiny favor!
Me and my wife have 6 months of expenses saved, but have a baby on the way. Which means, our emergency fund will need to be higher. Plus, we’re saving for a house. Do we save for both at the same time now? Thanks
6 months is plenty saved, save for the house
Your emergency fund is better than 99% of the global population and all of them have kids. You'll be fine. Save for the house.
Selling your company shares simply because theyre a single stock is pretty asinine.
If it’s a newer, possibly more volatile company; sure, maybe.
But if it’s a legacy company that’s been around for forever (I dunno, like FORD) - and likely isn’t going anywhere; or you actually pay attention at work, and can see it’s only booming; (at least at the moment) why take the capital gains loss so soon?
The squirrel dance 🐿️😂
If I’m investing into a Roth IRA but at age 40 exceed the income limit, what happens to my account?
What if I am 5 years away from wanting to retire? Do I still pause my investing while in baby step 2?
How are you 5 years from retirement if you’re in BS 2?
Man, if I got a lower than 3% mortgage rate, I would never pay it off early, and would just invest the money instead. But I'm financially literate and I have the emotional mindset to be able to handle debt, budget myself, and invest my left over money. But if I had an 8% interest rate, well, I wouldn't be able to afford it anyways, but I would totally pay that off first.
Other people aren't like me (in fact, we are the rare ones), so its understandable that for some people, paying off huge debts should come first, before reinvestments.
This is actually based off of faulty math. You cannot just compare interest rates like this and have it give you meaningful results. I don't care how wide the spread is. I can give you examples where it is mathematically better to pay off the loan. Mathematically better to keep the loan. Or it's a wash either way. With nearly any two number combinations.
Comparing interest like this may come to the correct conclusion. But it's happenstance. Not math. You need a break even calculation. Not a rate comparison.
Think how much more money you would have to invest if you did pay off the mortgage? That monthly payment would be freed up for investing
Playswithsquirrels is from Boy Meets World just sayin
Before you buy a house you should get a 100 k in a HYA first then the house
Message to the editors, especially the guy named Chris:
If you guys manage to fit a Zelda reference into the next video I will die happy! (If you can’t manage that… do The Emperor’s New Groove!)