Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!
Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time .
In fact, I had no prior experience or understanding when I began investing in 2018, but by the end of 2019, I had made a profit of almost $750k. All I had been doing was going by what my financial advisor had told me. This demonstrates that all you truly need is a professional to assist you; you don't even need to be a great investor or put in a lot of work.
The decision on when to pick an Adviser is a very personal one. I take guidance from *Izella Annette Anderson* to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
Creating wealth entails establishing positive routines, such as consistently setting aside funds at regular intervals for sound investments. Financial management is a vital subject that many avoid, often leading to future regrets.
Indeed, currently I'm managing my finances wisely and being frugal. In the last 19 months, my investments grew by 43%, adding over $650K in profits. However, I've had losses in the past month, making me anxious. I'm unsure whether to sell everything or wait.
I always consult a financial advisor before investing. During the pandemic, I used their strategies to minimize risks and maximize profits, generating around $883k in three years with my advisor
No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.
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.
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Not always the case. I still have my first two cars and they have appreciated over time. The first was a 1952 Chevy hot rod I purchased with paper route money in 1962. The second was the only car I ever borrowed money to buy. I talked my father in cosigning on a loan to purchase a 1966 427 Cobra in 1968 for $4,995. The only time I have borrowed money since then is for home mortgages. The insurance company has set the current value of the Cobra at $863,500.
On one level a car is a means of getting from A to B. But there are many people who love cars, and don't think of them as a financial investment. If you want to get all technical about it, then spending time with your partner and family is a wealth destroyer, because you could be out doing a second job and making more money. But you can't put a value on spending time being with people you love, or doing things that you enjoy.
I have been retired for the last 7 years. The best thing you can do is retire debt free which includes a paid off home. With no debt it takes a lot less money to live. During your working years be modest in your home, drive cars until the doors fall off, avoid the toys others are spending money on. Put the money you save into investments. Don't be too aggressive or conservative in your investments. Watch investment cost. They can steal a majority of your returns long term and hey you are putting your capital at risk, not the agent you invest through. You have two money enemies in retirement. Inflation and sequence of returns. You need to beat inflation but also have a pool of safe money to get you through times when markets are down. So you are not forced to sell in down markets. Be flexible, spend less when markets are down and a bit more when they are up. And do go for experiences more than things. Memories last while things do not.
@@lindsay3793 to me spend money on goods and investing are not exactly the same thing. If retired and your money stash is down , spend less. If up you can spend a bit more on goods and services.
Wealth is the difference between what you earn and what you spend. Thus there are two routes to wealth....make more money, or spend less. My favorite route to true wealth is have as many children you can, raise them well and watch them grow into remarkable human beings.
Early marriage in ‘77 hubby took 1/4 of income to invest/save… I hated every minute of it then … retired early 50’s today our home is paid off we drive a new car paid cash … happy we made the sacrifice early..
I'm a single, 43-year-old father who resides in Hamburg. If everything continues to go well for me, I intend to retire at age 50. I couldn't be happier right now than I am that I just bought my first house last month. I'm so happy that I made wise choices that altered my life forever.
Salutations, dude. At your age, you're doing extremely well. I'm 54 years old, and right now my finances are a mess. Any helpful advice would be greatly appreciated in helping to mold my life. I want to buy a home of my own.
It seems like I used the FIRE movement to manage my finances. Investigate it further by doing some research. With the help of a financial professional, they were then successful when investing in stocks, cryptocurrencies, and real estate.
I encountered Julie Anne Hoover through my wife, and I emailed her. She is guiding me. Since then, she has given me chances to buy and sell the stocks in which I'm interested in. You can hunt her up online if you require care supervision.
@@jeffery_Automotive I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look Julie up and send her a message. You've truly motivated me. God's blessings on you.
My Dad taught me to play with a compound interest calculator when I was 18. I have used it every year to keep me focused on investing. At 54 I have $620,000 in my 401K and Vanguard Index Funds. I have an average salary but have always been focused on not getting into debt and not waisting money but instead investing it. I currently drive a Honda CRV with 300,000 miles on it to avoid a car payment. It looks like it's falling apart but still drives good. My co-workers all must hink I have no money. LOL I hope to retire at around 62 with about 1.3 million set aside and house paid off.
@DanielHBuchmann it didn't at first, but over time, I remembered what he said. Eventually, I started paying paying attention to those old teachings and implemented them.
Nice…real nice. You’re doing it right! My dad talked to me as well at age 18. Really pushing the Roth IRA. My ‘dumbassness’ didn’t cease until 30 (when I started). How I regret. I’m doing just fine, but to know where I could’ve been keeps me ruminating. Well done to you!
Starting early in your career is vital. Married later than most. Watched my spending on routine expenses. While single I had roommates to share the rent or rented very basic apartments on my own. Drove my first car for 117,000 miles. Saved & invested starting at age 25. Still had money for ski trips, beaches, etc. Now mid-60s with net worth of $4M. It can be done, but start early.
@@steveharrington8028 My dad was very much that way, you would never had guessed that a highschool shop teacher was a millionaire. ( I can say that now that he is gone, otherwise you don't talk about your money)
Thank you for this post. I’m 61… saved all my life, built retirement, saved for emergency. Worry because with inflation… everything is so darn expensive
I'm very happy to have stumbled onto your channel at age 61. I feel so much better at my situation and how my early sacrifices were the correct thing to do. Please consider creating a semester course for high school students. The kids could teach their parents a thing or two.
The greater the automated income you can build, the freer you will become. Taking the first step is the hardest, but 5 houses later living off automated income since July 6, 2016. You’ve got to start taking steps to achieve your goal.
The purpose of this comment isn’t supportive, encouraging advice, but an egregious and transparent attempt at trying to portray oneself as competent, successful, and ‘better’, poorly disguised as friendly advice. That you do it to strangers on the internet is even worse and tells me you’re so insecure and need validation from strangers.
Great video. We are all seeking for financial independence and a better way of life. This is not difficult to achieve with savvy investing, a frugal lifestyle, and cautious budgeting. I'm glad I learned early on to work hard for financial independence. As Warren Buffet said, he has seen this happen many times in his life. Not an investor, My husband and i never earned more than a middle class salary. We plan to get retired at 58 with a stock portfolio worth $1.7M. We have never sold so much as one share of stock.
People don't really know this, You need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.
@@TruckeeFam I totally agree; I am 66 years old, recently retired, with approximately $1.2 million in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, I didn't do all this alone, but with the help of a financial advisor. Having one is currently the best way to trade in the stock market, especially for people nearing retirement.
@@IAMBETTERTHANYYOU I'm glad I stumbled across this discussion. If you don't mind, could you tell me how to reach this investment adviser who helps you with your investments?
I started out with a Financial Adviser called "Jill Marie Carroll". Her honest approach gives me complete ownership and control of my position, and her rates are incredibly affordable given my ROI. However, do your due diligence before contacting a financial advisor.
Similar story here. Just middleclass working stiffs. I semi-retired at 58. The so -called financial planners held me back and skimmed way too much off of me in fees. One put me in a "special investment".. Lost a bunch with him... Fortunately I bought enough low cost, broad market index funds to put me ahead. Be your own fiduciary. Separate your banking, insurance and investing and win big. Divided everything in a divorce last year and I am still in great shape...and love my freedom at 64.
Holy cow, those are very disturbing numbers. I retired from the military 25 years ago and always planned that my military pension + SSA would be my retirement. I realized around age 50 I really needed to get serious about savings. Those numbers make me feel a lot better about where we are today.
I wish my parents taught me better about money, luckily a couple month into my first job i was like "i had to work two hours to go out and eat a $25 meal at a restaurant" thinking that way put things into perspective.
@@AutumnAspensThere ARE times when interest on a loan does make sense. If my mortgage is 3%, and the S&P 500 average is over 12%, I am not going to pay off my mortgage any time soon. But credit cards? Definitely.
@@Duke_of_Prunes I was wondering that myself. I have a little bit of disposable income and was weighing paying into my mortgage which is at 3.5% or investing in the market.
@@DanielHBuchmann You can still get over 5% on short term CDs. Reits are super low because of interest rates. And there are good stocks, still, at attractive prices. Something to consider....
Just found this channel and this info is staggering. It's hard to believe so many people have absolutely no plan for retirement but then again I realize most families don't push planning nor is it taught in schools. I am 42 and was fortunate to have a day show me the importance of saving and have been contributing heavily to 401k since 19yrs old and blessed with a wife that is always watching what comes in and goes out. I have been blessed to max my 401k out much of the past 15+ yrs and we have a healthy savings..... we all have to plan for our retirement because the government dosen't want to see us retire or be able to enjoy it.
The information is staggering but I can tell you of my five siblings only two of us make good money choices, we were taught at home. Our grandparents were successful business owners. Many schools are pushing for financial literacy.
Debt free for a year and a half now. I own two 20-30 year old vehicles. My house is 145 years old, and I paid cash for it. Fixing it up! It's no mansion but it's PAID FOR and it's a roof over my head. This much time since I've been out of debt and there isn't a thing in this world that could get me to sign on the dotted line again. It really does change you! I look like a poor guy from the outside, but I'm rolling in it.
I would like to see these strategies plotted out over the last 10 years. Did they do well or are they all about the same? I have been have a hard time with my allocations. I'm in my 50s and have started to move from more risky investment to more conservative investments. Less individual stock to more bonds
investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
Yes, I've been in constant touch with a Financial Analyst for approximately 8 months. You know, these days it's really easy to buy into trending stocks, but the task is determining when to sell or keep. That's where my manager comes in, to help me with entry and exit points in the industries I'm engaged in. Can’t say I regret it, I’m 40% up in profits just in 5months with my initial capital of $160k
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Having an advisor is essential for portfolio diversification. My advisor is Lisa Angelique Abel who is easily searchable and has extensive knowledge of the financial markets...
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
I never understood not saving for retirement. You are putting yourself first. It is amazing to me how people buy 70k pickups and don't have any saved money. Nobody today has a budget either. I learned when I was very young to have retirement money auto drawn from my account every month. Out of sight out of mind. I am self employed. No company matching ect, just discipline. Helping myself for later.
@@badinstinctsyoutube7108I agree yet some must be way smarter than others and figured out the basic concept of delayed gratification and reduced stress of being debt free and not living paycheck to paycheck
The numbers regarding median 401ks don’t include what people have saved in brokerage accounts or in other investments like real estate. Part of the reason I think those numbers are low is in part because employers only match up to a small % and IRA have a max contribution of 6,500. I think the real question is how much have people put away in ALL of their investment vehicles combined.
Also, the numbers are by account. People change jobs and don't necessarily combine 401K's into a single account. Some change jobs every couple of years. I suspect the numbers very much understate the total that individuals/couples have saved for retirement.
@@tpiety Median is actually more informative than the mean because the mean can skew the result higher or lower giving a false impression of the true numbers for each individual. For example, if your data set is 11 accounts, and 1 account has $10 million, 5 accounts have $100K and 5 accounts have $50K. The average, or mean account size is $977,273 which is clearly not reflective of what each person has in their account, and that number is misleadingly skewed higher by the $10million account. The median in that data set is $100K (half of the accounts are higher and half are lower) is a much more accurate representation of the range of values in most of the accounts.
My Aunt used to say " when you have bread , you have everything " it's quite simple but yet it's very profound . if you look at pictures from the 40s 50s and even into the sixties you'll see families with a small homes most of them just one floor because they didn't need anything bigger , and but society said you need big so you should build big and pay big. If you're not doing well in the money department pray more worry less
The problem is that now all of these small starter homes are getting priced like luxury. I'm looking to move and can't afford anything on a high salary. People don't realize how bad it's gotten until they go out there. Oh and I'm taxed like I'm rich since our tax code thinks six figures is upper middle class
Azul: thanks for giving the scam warning. There is a guy (or team) on EVERY financial video comments section. The guy first claims he made a ton of money from his F.A.'s advice. then he uses other names to reply with "that's my advisor and he made me lots of money." Then he uses another name to say, "maybe I'll try him, what's his details." All a big scam.
Wow! What an eye opener. Thinking I wasn’t ready to retire. I just turned 60. I have a current military pension. Working and nearing retirement on my second career that also has a pension. And I put nearly 30k a year in savings and retirement; including maxing 401k. Planning to retire and draw SSI around 65. Single and plan to live in an RV and travel until I cannot. I do not currently carry any debt. I owe nothing.
I'm a few years from collecting my "paycheck of the month". For your fellow service member friends still in, have them Google the COLA trap. It's how military COLA is calculated. The best month would be Q2 of the FY, ideally on 1 March. That's what I'm planning to do, I'll be 61. DoD is my second career so those 401k, IRAs from corporate world are growing. Thanks for serving!
I started investing/saving at 17 and have remained debt free my entire adult life. I only use debt if it serves me, a rental property as an example. I have also found out I have siblings who did not plan at all. I discuss finances with my nieces and nephews so that they can also take advantage of compound interest, my grandparents gave me the tools. Many thanks to Money and Kiplinger way back before the internet.
When I was in my 20s and relatively newly married, we had an evangelist come to our church, and he said to buy only assets. Don’t buy things that cannot make you money. I’ve tried to do that and so far it has worked out very well.
Whaaat? What kind of money making asset can u buy apart from real estate, and how many can afford that? Most people who say this shit are trust fund kids or those that inherited wealth that can be used on investments.
I live out in rural Kentucky. Can’t tell you how many beat up rusty trailers I see with $50,000 cars parked in their gravel driveways. We are in a 3,000 sf house that my husband built (he’s a builder by trade) and our cars are all used and well cared for
I'm skeptical of advice from people who use words like "only", "always", "never", and so on. There is no advice that works for everyone, I much prefer to hear "usually", "often", and the like.
I've been in that camp where i had less than $2k in savings because my mortgage was so expensive. That was in my late 20's. Now I'm in my late 30's and i have a smaller house a few toys, cars, kids and a wife and I'm better off now in every way. Thank God.
Looking at the median balance in 401k accounts is useful, but we also need to keep in mind that nowadays people have multiple employers over their career and thus could have multiple 401k (or 403b) accounts. The other consideration is that many people roll over the balance in 401k's to self-directed IRA accounts. So while I don't have the empirical data, I suspect that many folks are better off than the numbers you quoted. The real issue in my mind is the folks who are struggling just to make ends meet on a weekly basis and will only be able to depend on SSI when/if they retire.
I had two 401k's with different employers. In 1997, my Fidelity adviser was able to cash them all out and combine them into 1 401k and helped set up my Roth IRA. Funded 401k and Roth IRA with 12% to 16% and 401k was company matched at $1:$1 so 100% interest from the get go. Then in 2015 I was 58 Years old and forced to retire due to off the job disability and he again helped me roll everything into my IRA's. I was able to live off my IRA until SS kicked in for my disability 2 years later.
I'm 81, From 55 to 65 my income doubled. I decided that we were living comfortably on what we were making at age 55. I put every raise I got into savings. I maxed out my contributions to my 401k. As result at age 81 we are very comfortable, we travel and enjoy life, with more than $1,000,000 in savings. My point is to save as much as you can while you can, it pays in the end.
My husband started working mandatory overtime of 10 hours each week starting 3 years ago. We take that extra money and save and invest and keep living off of his regular salary. I know some people that as soon as they get some over time money, they spend it !!!
6 years or so ago I started adding any raises or extra pay to my retirement account. So basically I'm living on the same income over the years despite inflation. I was behind where I wanted to be retirement savings wise...although way ahead of the figures quoted in this video...which are absolutely terrifying. If I were in my 50s with no savings and 36k in a retirement account I'd be working a second and third job if needed. Several relatives of mine retired just on SS alone and some not even owning their own home. Living in poverty as a senior is the worst possible scenario I can imagine. I would just keep working if that were the case. I grew up poor and have no desire for history to repeat itself. Cheers to you in your retirement!
I am 55 and I will have my mortgage paid off in a few more years. I own both vehicles and a nice cushion in the bank. I may not qualify as wealthy but I sure feel rich.
Good video. I think one thing that skews the 401k numbers is that many -- probably most people - roll their 401k balances over to an IRA or Roth IRA when they retire or change jobs, in order to have more flexibiity, lower fees, and to consolidate with other retirement funds that they've rolled over from prior employers' 401k plans. So the people with the most overall retirement assets (those in their 50s and 60s) are missing from the stats when looking solely at 401k balances.
It feels good to see the market in green, but just how long until we actually break even, I’m the average retail trader, DCA-ing, buying and holding on to stocks for eons, but it’s like I’m up 5% today and down 17% the next week, Yes the market is very Darwinian, there’s winners and losers, and it’s looking like I’ve been on a losing streak, while others make huge 6figure gains in the same market. What strategies are these folks using?
So what I do is buy companies that are doing good things, executing on business plans and then short companies that are missing earnings, it’s as simple as that.
we’ve been in a rally for the last decade, you just gotta accept not everyone is as knowledgeable in the market to handle the opportunities a crash market presents, and unfortunately for me too, I got in 2019 right before the market’s melting point, I just hope I recover soon enough before retirement. S`tay strong.
@@Oly_laura Nicely said, I was thinking about going that route too, Jimmy Cramer has been going on about opportunities at stake in this present market and I’d really love to set my portfolio up for whatever is coming 2023, could you recommend this coach that guides you?
It definitely all starts with budgeting, finding out your monthly savings rate, trying to get it above 20% of your take home pay, and then figuring out how long it’s going to take based on your projected rate of return to get to where you want to be. This is why it pays to start early, compounding interest really only kicks off after 20 or so years of consistently investing. The key is consistency, meaning you’ve created enough of a cushion and a disciplined system of putting your savings rate away into the market that nothing will disrupt or halt that.
The “average” wealthy person does not flaunt their wealth. They drive a 3-5 year old car, which is paid off. They focus on wealth building instead of extravagant lifestyles. Contrast that with “fake rich” that drive a leased BMW.
I agree -Jason; the fake rich are living the dream, for the moment on borrowed time, large incomes and huge debts, big homes, toys/bling, etc. In Texas they call them Big Hat and No Cattle! You're spot on - the average wealthy person possess the attributes of the Millionaire Next Door. However, not everyone is a fake - I have a 7-figure investment portfolio, drive a 5-year old Ford pick up (paid for), live in modest home (paid for) in middle class neighborhood, do not have an extravagant life stye, but do have an American sports car I drive for enjoyment (except in winter months) and attend car shows. Got to enjoy life and live a little!
@AzuI-wells Since I doubt most folks are saving for retirement at all, it’s not hard to be above those numbers. However, even so, it is unlikely to be enough - depending on what kind of lifestyle you plan on having. There are plenty of guides online about what numbers to shoot for. Basically I just tell friends and family to save at least 10% for retirement, 10% for non-retirement goals (house down-payment, etc) from the moment you start earning a paycheck - even if that means adjusting your lifestyle to make that work.
@nanniecath528 I've driven same car for 22 years, paid cash for it and maintain it well. In that time repairs and maintenance about 8k. I don't trade my time to impress anyone. I do have a truck to use in business also a cash buy.
Hello Azul, many individuals always state that financial education should be taught at schools. As a retired teacher, teaching high school students for over 32 years, I really tried to implement a financial mindset with my students. There are also basic courses taught as well in my jurisdiction. The problem that I continuously encountered was general student apathy. Most students are so concerned with social media, their peers and consumerism, that learning about compound interest, the dangers of credit card debt, mortgages ect. is way beyond the latest trends on twitter. Most classes end up not being taken seriously by the students and cannot grip their attention as the latest tik tok video can. Personally, I have also witnessed many of my colleagues who need more financial education as well. Uphill battle but I did walk the talk and retired at 55 following many of the sound advice given on this channel. Thanks for your videos!
You were more effective than you think. Many times a teachers words hang out on the back burner till something triggers them to revisit what they heard way back when.
The class I had in high school (45 years ago) was called 'Consumers Ed' and it was the most God awful boring class ever. It's not the subject, it's how it's presented.
I always here, “teach them taxes”. We have lawyers that have to specialize in tax law and even they don’t know everything” How can a teacher teach that? Also there a multiple philosophies on the correct way to do personal finance. How can we say what is right vs wrong?
@@sstrongman1667 Learn how to use a bank account. Most kids don't know. Can't write out a check or even sign in cursive. Those that don't learn to play the money game go through life paying fees that chip away at their wallet. I listen to the young ones at work and they're stubborn. I learnt a long time ago to knuckle under and play by the rules. He who owns the gold makes the rules. They don't need to know taxes but they need to learn about bank accounts, credit scores and running a household (wants vs needs), and the fine print before you sign on the dotted line. Some just never learn.
This is so sad to me. These things need to be taught to everyone. Always pay yourself first even if its only 20 bucks over time it will keep adding up and bump it up every chance you are able to! Always take advantage of any employer matching by maxing it out if any way possible. These stats are grim.
Great video. Corporate America loves all of those that are "in debt to the company store". You correctly noted that we don't educate children on personal finance responsibility and the rewards for saving and building toward a successful retirement.
Charlie, good news from someone in the 401k business. People in their 20s are participating in their plan at much, much higher rates than 10 to 20 years ago. In many plans I see the 20 year old demographic participating at rates higher than the 30s and 40s.
@@scottl9144 That is great to hear as likely the young people in their 20's have seen how their parents have made a mess of their financail lives by not responsibly saving for their retirement.
Absolutely true. I have a niece that is very smart in this math subject they teach in school now but lacks the basic skill to learn to save. I don’t know if these kids think the government is gonna take ‘care’ of them or what. It’s heartbreaking.
A great rule for interest rates is the rule of 72. When the (years x interest rate) = 72, you double your money. So, at a savings interest of 1% (which the markets had been for years), it would take you 72 years to double. If you put it into an S&P 500 fund and average 9%, it will only take 8 years to double. It’s a good rule to know. Thanks.
Thanks Azul for making us feel more at ease. Your videos and explanations are reassuring. Your are doing an awesome job and great service to those of us nearing retirement and wondering if we we have enough.
I am 41 and my wife and I have around $320,000 in stocks, etfs etc. Sometimes I really wonder if that will even be enough for us when retirement time comes. I keep seeing people with upwards for 2 million saved at my age and it's scary to see that. Thanks for giving me some piece of mind.
I have a little more than that (2mm+) at 57 and the numbers say I need another 1mm for 3 total to generate what we WANT in retirement income - doesnt mean we'll get there...
The most important thing in retirement is being debt free. Day to day living costs (rent/mortgage/car payments) are what eat into most people’s retirement funds.
This is a new person for me to listen to and learn from. There are several good advisors to listen to on you tube, including Devin Carroll, Josh Scandlen of Heritage Wealth Planning, Cardinal Advisors, etc. Listening to several folks will give you more viewpoints to consider.
I am sixty one. I am cardiac and I have zero invested in the market and I am not worried at all. In fact these are my best years ever in terms of happiness. You do not need that much to live well in retirement. I mean, if you want the latest toy, the new beemer every 2 years, 4 trips a year, fancy groceries, your second home 2 miles from the beach where you go 3 weeks in the year...you better start saving when you are very young.
A few issues I've seen in the community I live in, is retirees not having enough to cover the cost of medicine, home and auto repairs, property tax, burial and settling their estate. Just modest savings could have made a big difference.
Critically important advice. I grew up poor but retired safe and comfortable. Some key things. 1. Make a record of what you spend. Be honest. Eliminate things that give no return. Subscriptions you won't miss etc. Once you know where the money goes you are on your way to becoming responsible. 2. Allocate money to savings just like you do food and shelter. 3. Maximize your earnings. Just believe you are worth more and you'll find a job that pays you more. 4. When you retire, defer your SSA to 70. It will then pay out substantially more and is indexed to inflation.
I fully agree. However, I just want to add, you get one life and you need to enjoy it. I think the key to success overall is a healthy balance. Seen to many cases where people save everything all their life, defer social security, work till 75, and die before ever seeing the benefit of their discipline. Their kids swoop in and blow through the wad quickly.
@@derrick9497 Agreed. More good advice. The only thing I'd do differently is to strike a better work / life balance and take far more vacations. The EU has that part right. You can still be effective, earn a lot and take time to enjoy life. And definitely retire. That said, being retired with more money than you can use is also fine. It is great to finally just not have to think about money. In my case I will enjoy anything I want in retirement and still leave a small fortune to an organization that serves the community. They have no idea I even exist. But I have no worries and get some small pleasure in knowing my work helped others less fortunate.
You were doing well until #4. I am a diabetic, and have already had a multiple bypass surgery - 22 years ago. I started collecting SSA the day I turned 62. If you wait until 70, you will need to live into your 80's to make up the difference. I'm not going to make it into my 80's. Each person, and their circumstances, are different.
In our high school we have a class called Consumer’s Education, which actually does teach kids about investing and money management. The problem is that 17-18 year olds have little to no interest in it, unless they have grown up talking about it in their homes. So, it is taught in schools, it just isn’t absorbed.
Hi Azul, Your show is helpful, fun and enjoy the topics. Been retired10 years, now 75 years old, enjoy travel, friends and family.. Have 4 rental properties all paid off which give good cash flow, help to beat inflation too. Also a 7 figure portfolio. We lived very frugally during our working years. Now in retirement have income of 220,000 which is more than we made when working!
Azul, thanks so much for your content. It's always interesting to listen to what you have to say. I'm soon to be retired and have invested heavily in mutual funds for many years and done very well. The importance of long term planning cannot be overstated. Thanks again.
Great info to hear. I'm right at the median for my age.. This is good news.. Unfortunately I only started saving anything for my retirement 4 years ago. I'm 61. I got myself tangled up in a bad relationship and lost what I had earned (through a bad MC accident\lawsuit) with alot of pain. So going trucking and listening to Dave Ramsey.. I got things turned around. Luckily because I saved; I recently went on a 900 mile road trip and was 92 miles from my destination, the engine in my car (Toyota with 152k) died. I was able to spend the money for a uhaul truck and tow dolly to get it back home. ($1,150) So.. because I made some good decisions.. I have 2 other vehicles to drive. So Azul.. I just found you\this channel least night. I have subscribed.
I retired 6 yrs ago. I saved well while working and have a decent retirement income. I leveraged all of this by moving to a much more affordable country, where the cost of living is about 1/3 of that back home (Seattle). Zero regrets...plus I get 320 days of sun/ yr.
Agreed! I’m 5 times the median for my age group, but I’m early in the pool….by the time I reach 59 I should have well in excess of 12-13 times the current median, with another 7 years to stack that cash! Plus we’re very close to only mortgage debt and should be 100% debt free when we retire at 67. Ideally we could retire at 65, but with the current make up of the government, honestly, I’ll just be happy if I can retire period.
I just 30 this year and have just under $40k in my own 401k and another $10k between my other retirement accounts. My wife has about $41k in her retirement accounts (she is not currently working). I currently make close to $63k a year. I only do 5% though to my 401k for the company match and another 10% of my income is split between an HSA and a ROTH IRA
51 years old. I have $295,588.25 in my Fidelity retirement account. I cranked my contributions up to 35% and I do all the investing on my own. Fidelity just holds my ETFs/stocks. I made that change earlier this year. I'm hoping to end the rat race by 60 but it's looking more like 63-ish. I want to have $1.5M and bring in about $60k in dividends each year. Pedal to the floor! Thanks for the video. Great content.
I completely agree; I am 60 years old, recently retired, and have approximately $1,250,000 in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, having a portfolio-advisor for investing is genius!
Do your due diligence and opt for one that has tactics to help your portfolio continue consistent and steady growth. "Helene Claire Johnson" is accountable for the success of my portfolio, and I believe she has the qualifications and expertise to accomplish your objectives.
Almost everyone, including the media, is anticipating a market catastrophe, and as a result, many are turning a blind eye to the opportunities in the market. I began investing in stocks and Defi earlier this year and it is the best choice I've ever made. My portfolio is rounding up to almost a million and I have realized that when a stock makes it to the news, chances are you’re quite late to the party, the idea is to get in early on blue chips before it becomes public. There are lots of life changing opportunities in the market, maximize it
I recently started trading in April, invested 38k in the market and my portfolio is currently worth slightly over 270k. That's alot more than I make in a year from my job
Superb video, I’m happy to be mechanically inclined. I’ve saved thousands on car repairs as well as home maintenance. You Tube videos can offer a free education on several topics, just like this video.
Hi Azul. Unless I missed it, you didn't specify for your followers 10% of gross or net to begin savings, or 401K contributions. Please clarify, because that's a major difference. I would hope it's of the net, but I'm not the video maker. Since you have the expertise, followers do need guidance. Thank you so much.
the size of your retirement portfolio will overwhelmingly be a function of the performance of the stock and bond markets between now and when you start withdrawing from it.
Private investing is the best way to go about the market right now, especially for near retirees, I've been in touch with a wealth manager for awhile now netted 370thousand this downturn, made it clear there's more to the markets than we average joes know.
She is a fee only, I won’t want to blow my horn but well over 60% on a 1 m portfolio in the past year despite economic conditions is commendable isn’t it?
It is hard to quit being so frugal. My kids tell me all the time to spend my money as they don't need it but I like being frugal. I have learned to enjoy some things money buys but I'd be fine without them.
@@grannygoes7882 so many put value on worthless needs! I do the cooking at my house, fantastic meals are prepared & served so inexpensively it amazes my wife & daughter. People feel they must have to newest phone/electronics, newest cars, …….
We paid off the house, cars, and any debts going into retirement, I had medical issues that forced me out at work early, so didn't enter as strong as we wanted to be financially when I left work. That said, because we downsized, and have no debt we are able to live on SS having a good Medicare supplemental coverage, we are still able to put some savings in the bank. Trying to avoid having to use retirement savings for living expenses, and just save it for cars, house maintenance etc.that will be coming along
In my opinion, investors ought to prioritize under-the-radar stocks, especially given the volatile nature of today's stock market. With 35% of my $270k portfolio tied up in declining stocks that were once highly regarded, I'm feeling lost and unsure about how to proceed amidst this turmoil.
@champhallier846890+% of the "professionals" cannot beat the S&P500 over time. Investing in individual stocks is a fools errand. You may be up now, but it's no different than gambling in Vegas. You're likely to lose over time.
I know I've been lucky, but I also worked very hard for many years. The best advice is to make a lot of money before you retire. And, this is key, don't spend it all! The maximum Social Security benefit is actually a pretty good chunk of change. My wife and I own our home, two late model cars and have zero debt. In addition to healthy retirement accounts, we saved a lot of cash. When we're forced to start making withdrawals, I don't know what we'll do with the money.
We need this to be taught in K12 schools. I'll be teaching my 2 children at home at in their home school curriculum. Start EARLY people, start as early as you can! That's the awesomest thing you can do for your future self
While my peers, neighbors and inner circle were busy buying stuff they don't need or can't afford. I was busy buying assets! My portfolio is now $2.9 million no Mortgage payments zero car payments or credit card debt! I'm only 48 years old currently retired my monthly cash flow is approximately $45k.
I'm currently writing a financial literacy course that I will be teaching at my church this fall. I'm putting a lot of time and effort into it, including creating spreadsheets that are basically mimicing an accounting program, and creating an entire Google Slides presentation. One of my main talking/teaching points centers on overspending... keeping up appearances or with the Jones. To me it's utterly foolish what so many people do with their money.
Could not agree more! We have many non-core classes that are far less important than financial literacy. It is a shame that the majority of schools teach nothing these days. Back in the 80's when I was in school, we had home economics and shop class -- invaluable as well
If government schools taught actual financial literacy, none of the graduates would vote in the political clowns who have chosen to mortgage America's future for power (for themselves) today.
If I was KING! I would require. A credit check to go into a casino or get the casino ap on your phone. No one under a 675 score can enter or play! Any lottery winner would need to payback in full any previous welfare or food stamps benefits first! No credit card interest rate over 22%. If you cannot qualify for rate lower than that you DO NOT NEED that CARD!!!! Student loans. A tier system. For Plumbers, electricians, truck drivers, farmers at 1%! Lesbian dance theory type degrees 10% above prime.
The average retiree, I believe, should have been able to have enough to last the rest of his days. I t just depends on choices during your working days, just as I came to realize later. Surprising how I still netted more $2m. by retirement. And this is while living in New York!
When I was a young'un I remember being puzzled why all my coworkers around my age had more and nicer things than I felt I could afford. Nice cars, toys like boats, snowmobiles, etc. Some were just _really_ good at investing (funny thing though, while they may have had some toys as a rule they weren't the ones with the fancy cars) but I couldn't believe how many coworkers were saving little or nothing. So if you are fortunate enough to have saved and invested and are way above average that is certainly good and worth celebrating. The sad thing is the average is so low that being way above average doesn't imply a luxurious retirement.
The main thing is to pay yourself first. It's really easy if your employer withdraws your money before it is taxed. If you don't see it you don't spend it. Plus if you have an employer match it's free money.
I retired in Jan 2023. In 2014 I bought a 2000 GMC Safari with low mileage in mint condition. I didn't drive it much because I drove for a living. I kept it in a heated garage. Since I have been retired it is now my daily driver. I get stopped often by people wanting to know what year my van is. lol. I only have about 450,000 in retirement funds. I feel I have more money now that I can spend it instead of trying to save it. I'm pulling out about $38 dollars a day but my funds are still growing by $40 a day.
Don't be concerned with how much the "Jones " have. As others said below, the important number is what you need. Too many have debt as they roll into retirement. Do your own thing and work hard to get to your goal. At the end, "you got what ya got!". Make sure to save along your career and use fee only Advisor. Time is your friend. Thanks Azul
This is very challenging especially with people always posting what they have on social media. There are so many people driving around in new Dodge Chargers and Challengers. I assume that they are all earning over $300,000 per year, own a home and are saving for retirement.
@@r.joseph8911 that's a Financial Advisor who charges a flat fee regardless how much money they manage for you. I've seen a range of $500-$800 for about an hour meeting to review and plan your investments. Some brokers charge 1% or more of your balance to manage. Can add up as you get more $$ over the years. $100 for every $10,000 so if you get $500,000 congrats BUT will pay broker $5,000.
@@mocheen4837 I see those people as well. While some do earn big $$ I'm guessing more than half are up to eyeballs in debt. My 7 yr old Honda is just fine :) Keep saving and when comes to retire, you can pay cash for about any car you want!!
Age 50-59 401k = $53,000 ?? HOLY CRAP ! These people are nearing retirement and they have almost nothing. How is that even possible when a lot of companies offer 401k's and match 50 cents to $1 for every dollar you put in. In almost 30-40 years of working a person has contributed $26,000 to $30,000 ? We have our priorities screwed up in this country. The average American household spends $2,000 to $4,000 a year just on cell phones, eating out, cable/satellite TV, and computers with high speed internet. All of those are luxuries, not necessities !! Crazy !! Life in America isn't expensive, all of our luxuries are expensive. We have forgotten the huge difference between wants and NEEDS !
Love your videos, thanks! Just checked my Social Security statement. I’m 57 years old. There’s a new statement on there that I have not seen before. It says because current tax payers are paying for the Social Security of people that are currently drawing it and there will be fewer tax payers over the next 10 to 20 years that they anticipate that we will only have 80% of what our social security estimate states actually available upon our retirement. Pull your statement up and take a look at it and let us know what you think. From what I understand from that statement, Social Security is not going to go completely away, it’s just that the payout will be reduced proportionally for future generations.
I have 3 retirement accounts: one from my old employer with employer contributions, one from my old employer with employee / my contributions, and one with my current employer containing both employer and employee contributions. They're all higher than that median, but just looking at a single one of them would give just a fraction of what my total 401k accounts are. Also, just an FYI as another data source that might capture that, the federal reserve does a survey for this. It says median for families (not individuals) is 65k, and for families whose survey reference person is between 55-64, median is $134,000. Best, and keep up with the financial prudence!
Imagine the shape of the country if 45% of working Americans who work full time actually made more than a Median wage of just $18,000 , and Union membership was what it was in the 1950s, and the top income earners paid the tax rate that they paid before 1981. Yes.....imagine.
@@Wasteoftime10 First of all, the current median income in the US is about $45,000 per year not $18,000. Secondly, the to 10% of earners in the US pay an average income tax rate of 25% and about 75% of the nation’s total income tax. So what you’re saying is you want even more taxes taken out of their paychecks just because they earn more, are more responsible with their money, chose not to have a bunch kids they couldn’t take care of, live and spend within their means, worked smarter/harder, etc? Jeez….where do you draw the line and what do you propose the IRS or other government entities does with all the $$$?
@@JCizzleSoCal When you understand the difference between 45% of the working population as I stated and not 100% as you are referring to, I'll then explain to you the difference between Keynesian economics and Friedman, which created the Middle Class from 1934 to the late 1970s, and which destroyed it from 1981 to Present.
@@Wasteoftime10Looks like you got a knee jerk reaction there! And you are right. 45% on an income that bearly provides sufficient for basic survival is fundamentally wrong. The US is the wealthiest nation on the planet and yet so many live in poverty. Not because they are lazy or stupid but because the odds have been stacked against them, and it's not getting any better. And who is stacking the odds? The wealthy and influential. For their own gain.
The 20th birthday of my truck is next year and I could pay cash for a new one but I'm not an idiot. My truck is like an old friend and does everything that a new truck could do. I'm looking forward to the 25th anniversary. Live below your means and you will be an happy camper
Rule #1 avoid debt but if you must take on debt never take in debt that isn’t fixed rate. Then blindly invest in the indexes and out no thought in to it whatsoever - just be consistent. Buy a used car at most every ten years. I’m a super saver, 45 and will easily retire at 57. It isn’t as complicated as people think.
I'm a major airline pilot and at 57 I've never bought a brand new car - the moment you drive it off the lot it is now a used car. Saving for retirement is easy. Max out the 401k, never accrue credit card debt and live below your means.
I bought a previously salvaged car and suv when they were cheap. Been driving them forever. Problem is now they want top dollar for them as well as used. Fortunately I have saved enough to buy new going into retirement. Need the peace of mind for going not just from a to b but from a to z.
I believe that there are a great number of individuals that have a pension (e.g. teachers) that have not saved for retirement - why should they when you retire with a guarantee of 80% of your salary for the remainder of your life.
Agreed, I have a federal pension and after I pay my health insurance, dental, life insurance premiums I net over six figures. If federal pensions fail in this country my assumption is that 401s etc have already crashed.
@@pcoc8694not sure what federal agency you are with but mine will likely be around 5 to 800 a month. I have other investments but that's a pretty crappy pension. Albeit, better than nothing.
As a retiree, my best advice is to live debt free asap. House and car need to be paid off before retirement and try to save as much as possible. Also, pay cash or use a credit card ONLY, if you can pay the full balance every month. (you pay Zero interest, if you pay off a credit card in full every month, cash back cards help too).
Negative, why would I want to pay off a 2% mortgage using somebody else’s money when my money annually makes over 12-19% invested! Your kind of thinking is what keeps people poor or barely comfortable. Smh..
@@_DB.COOPER It is psychological on the spending side. This is like when someone says that it does not pay to exercise because it takes 3500 calories of savings to equal a pound and thus a mile a day is not even a pound in a month. But exercise definitely changes the body and the nature of what a person "wants" to eat. What I would add to the above is something very different. It would be that a dollar saved at fifteen is worth many dollars at fifty. Start young.
@@jamesstrawn6087 you make no sense, I retired at the age of 51 by using other peoples money to make me money. I still have a 2% mortgage and over 2 mill in stocks drawing way more than 2% annually. Now you tell me what makes sense financially. Smh…
eh? I agree on living debt free, but I'm not going to pay off my house before retirement. !. I'm only paying 3.5%, I can do better investing, and 2. I'm not retiring where I currently living. I live in the south eastern part of the US, because that's where the job is, but I HATE living in the south. I like friendly people, culture diversity, a corner deli, great food and four seasons! - none of that can be found in the south. So I do put extra on the mortgage simply to build equality for when I do retire and down-size, but back in the real world - somewhere far away from all the bible-thumpers!
Would appreciate hearing about other ways of generating net worth other than saving. I put my extra money into properties doing quite modestly but its hard to save 15% after spending wages on supporting those and operations.
A number of good points made here. Small things add up over time. My company does "merit" raises each year, generally about 3%. Every year I get that 3%, I have always used it to increase my savings not my spending. When we refinanced our mortgage and went from an 8% rate to a 3.5% rate, we keep "paying" the same amount we had paid when our rate was 8%. The difference was we were making additional principal payments and paid off mortgage in half the amount of time and then started investing the amount were had been paying toward the mortgage. Same with a car purchase. Made additional payments, paid it off early but kept putting that payment amount into savings/investments so that future car purchases could be done with cash. Live below your means and let the Jones pretend they are rich, meanwhile you will become the millionaire next door that no-one knows about.
This is what I did and we paid our house off way early by our early 50's. Saved a bunch on interest.. Since then the extra money has been invested for our retirement. And we have been fixing up our home the way we want and are making it ADA friendly. We paid our son's college costs off and now we have amassed a comfortable amount for retirement and Long Term Care insurance. We have no debt so we splurged a little and bought a new crew cab truck to tow a little fishing boat or small trailer. Our other truck was on its last leg. 27 years old. And just a little 2 seater. We figure we can more than afford car payments for a little bit and put extra each month towards principle. We pay off things early or pay cash. I retire in 3 years so the truck will be paid off by then. 👍 We also enjoy having extra money to take fun trips off and on. We have tons of lakes within 1-2 hrs. From our house so it is fun to go to the lake. Or to take our small pop up trailer and kayaks and have fun! A real cheap vacation. 😊 Woo hoo! It feels great to have a good reliable income for retirement. 😊
Interesting comparison; however, that can be as much a trap as comparing what you have to what your neighbor has. Be satisfied with what you do have and strive to save more instead of being in a competition with others. Living life to keep up with the Jones’ will only add more stress than it’s worth in life.
I’m impressed with some of these UA-cam channels that are showing how CHEAP you can survive on. Not for everyone, but you won’t starve to death if you’re living on SS checks. Find a side hustle. This whole idea of you need $1M is a total farce. Be creative. Enjoy your life while you still can.
Mr. Azul rocks! Almost every subject that he brings up for a discussion resonates big time...I also share many other similarities: same age, same humble upbringing and I even drive a Mini Cooper as a weekender (with a manual tranny though)
One thing that's not considered is that people may have accounts with more than 1 provider. For instance, my roth is with fidelity, I have an old 401k in vanguard, and my current 401k is with schwab.
Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!
Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time .
Exactly ! That's my major concern and what lucrative investment can one venture into with the current rise in economic downturn
In fact, I had no prior experience or understanding when I began investing in 2018, but by the end of 2019, I had made a profit of almost $750k. All I had been doing was going by what my financial advisor had told me. This demonstrates that all you truly need is a professional to assist you; you don't even need to be a great investor or put in a lot of work.
@@hunter-bourke21Impressive can you share more info?
The decision on when to pick an Adviser is a very personal one. I take guidance from *Izella Annette Anderson* to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
Creating wealth entails establishing positive routines, such as consistently setting aside funds at regular intervals for sound investments. Financial management is a vital subject that many avoid, often leading to future regrets.
Indeed, currently I'm managing my finances wisely and being frugal. In the last 19 months, my investments grew by 43%, adding over $650K in profits. However, I've had losses in the past month, making me anxious. I'm unsure whether to sell everything or wait.
I always consult a financial advisor before investing. During the pandemic, I used their strategies to minimize risks and maximize profits, generating around $883k in three years with my advisor
No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.
My partner’s been considering going the same route, could you share more info please on the advisor that guides you.
Sharon Ann Meny is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
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.
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
I just checked her out on google and I have sent her an email. I hope she gets back to me soon.
“Buy the cheapest car your ego can afford”. Best advice I ever heard. Cars are the greatest destroyer of personal wealth.
Drives me nuts when I had a car note because I was paying for a depreciating asset.
Not always the case. I still have my first two cars and they have appreciated over time. The first was a 1952 Chevy hot rod I purchased with paper route money in 1962. The second was the only car I ever borrowed money to buy. I talked my father in cosigning on a loan to purchase a 1966 427 Cobra in 1968 for $4,995. The only time I have borrowed money since then is for home mortgages. The insurance company has set the current value of the Cobra at $863,500.
Nah...women are. 😂
I fond it cringe worthy to hear adult men talk about their "dream truck" that they bought. (on credit usually).....Yuck!
On one level a car is a means of getting from A to B. But there are many people who love cars, and don't think of them as a financial investment. If you want to get all technical about it, then spending time with your partner and family is a wealth destroyer, because you could be out doing a second job and making more money. But you can't put a value on spending time being with people you love, or doing things that you enjoy.
Azul, Your empathy is admirable. It’s important to communicate this important information without judgment. You are a master! Jay
I have been retired for the last 7 years. The best thing you can do is retire debt free which includes a paid off home. With no debt it takes a lot less money to live. During your working years be modest in your home, drive cars until the doors fall off, avoid the toys others are spending money on. Put the money you save into investments. Don't be too aggressive or conservative in your investments. Watch investment cost. They can steal a majority of your returns long term and hey you are putting your capital at risk, not the agent you invest through. You have two money enemies in retirement. Inflation and sequence of returns. You need to beat inflation but also have a pool of safe money to get you through times when markets are down. So you are not forced to sell in down markets. Be flexible, spend less when markets are down and a bit more when they are up. And do go for experiences more than things. Memories last while things do not.
This is pretty much anybody needs to know to be successful. You hit all points. It is nearly impossible to fail unless one deviates from your text.
I'm confused.... You said to spend less when the markets are down... But usually people say to buy low, sell high.
@@lindsay3793 to me spend money on goods and investing are not exactly the same thing. If retired and your money stash is down , spend less. If up you can spend a bit more on goods and services.
Great advice
Wealth is not defined by how much one has but how little one needs.
Wealth is the difference between what you earn and what you spend. Thus there are two routes to wealth....make more money, or spend less. My favorite route to true wealth is have as many children you can, raise them well and watch them grow into remarkable human beings.
Early marriage in ‘77 hubby took 1/4 of income to invest/save… I hated every minute of it then … retired early 50’s today our home is paid off we drive a new car paid cash … happy we made the sacrifice early..
It all depends if you are playing the "wealth game" or the "status game"
I'm a single, 43-year-old father who resides in Hamburg. If everything continues to go well for me, I intend to retire at age 50. I couldn't be happier right now than I am that I just bought my first house last month. I'm so happy that I made wise choices that altered my life forever.
Salutations, dude. At your age, you're doing extremely well. I'm 54 years old, and right now my finances are a mess. Any helpful advice would be greatly appreciated in helping to mold my life. I want to buy a home of my own.
It seems like I used the FIRE movement to manage my finances. Investigate it further by doing some research. With the help of a financial professional, they were then successful when investing in stocks, cryptocurrencies, and real estate.
I encountered Julie Anne Hoover through my wife, and I emailed her. She is guiding me. Since then, she has given me chances to buy and sell the stocks in which I'm interested in. You can hunt her up online if you require care supervision.
@@jeffery_Automotive I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look Julie up and send her a message. You've truly motivated me. God's blessings on you.
but what will you do after retirement? I like to keep working if it is fun work that interests me.
My Dad taught me to play with a compound interest calculator when I was 18. I have used it every year to keep me focused on investing. At 54 I have $620,000 in my 401K and Vanguard Index Funds. I have an average salary but have always been focused on not getting into debt and not waisting money but instead investing it. I currently drive a Honda CRV with 300,000 miles on it to avoid a car payment. It looks like it's falling apart but still drives good. My co-workers all must hink I have no money. LOL I hope to retire at around 62 with about 1.3 million set aside and house paid off.
I'm in a very similar situation. I'm trying to pound into my daughters head compound interest, so hearing it worked for you gives me hope for her!
@DanielHBuchmann it didn't at first, but over time, I remembered what he said. Eventually, I started paying paying attention to those old teachings and implemented them.
Nice…real nice. You’re doing it right! My dad talked to me as well at age 18. Really pushing the Roth IRA. My ‘dumbassness’ didn’t cease until 30 (when I started). How I regret. I’m doing just fine, but to know where I could’ve been keeps me ruminating. Well done to you!
Starting early in your career is vital. Married later than most. Watched my spending on routine expenses. While single I had roommates to share the rent or rented very basic apartments on my own. Drove my first car for 117,000 miles. Saved & invested starting at age 25. Still had money for ski trips, beaches, etc. Now mid-60s with net worth of $4M. It can be done, but start early.
The richest guy on your block probably doesn't look like he's the richest.
Bingo
@@badinstinctsyoutube7108See, you would never pick the guy who has the real money and not the borrowed money.
Often times, that is true. It's the way I want to be.
@@steveharrington8028 My dad was very much that way, you would never had guessed that a highschool shop teacher was a millionaire. ( I can say that now that he is gone, otherwise you don't talk about your money)
He who dies with the most toys wins!
Thank you for this post. I’m 61… saved all my life, built retirement, saved for emergency.
Worry because with inflation… everything is so darn expensive
Everything is high, right before the crash.
I'm very happy to have stumbled onto your channel at age 61. I feel so much better at my situation and how my early sacrifices were the correct thing to do. Please consider creating a semester course for high school students. The kids could teach their parents a thing or two.
For a lot of PEOPLE, Your MESSAGE is TOO LATE !....We already know what's wrong.... inflation without a REMEDY !
The greater the automated income you can build, the freer you will become. Taking the first step is the hardest, but 5 houses later living off automated income since July 6, 2016. You’ve got to start taking steps to achieve your goal.
What kind of investment would you advise? And what is the best way to follow it?
The purpose of this comment isn’t supportive, encouraging advice, but an egregious and transparent attempt at trying to portray oneself as competent, successful, and ‘better’, poorly disguised as friendly advice. That you do it to strangers on the internet is even worse and tells me you’re so insecure and need validation from strangers.
Great video. We are all seeking for financial independence and a better way of life. This is not difficult to achieve with savvy investing, a frugal lifestyle, and cautious budgeting. I'm glad I learned early on to work hard for financial independence. As Warren Buffet said, he has seen this happen many times in his life. Not an investor, My husband and i never earned more than a middle class salary. We plan to get retired at 58 with a stock portfolio worth $1.7M. We have never sold so much as one share of stock.
People don't really know this, You need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.
@@TruckeeFam I totally agree; I am 66 years old, recently retired, with approximately $1.2 million in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, I didn't do all this alone, but with the help of a financial advisor. Having one is currently the best way to trade in the stock market, especially for people nearing retirement.
@@IAMBETTERTHANYYOU I'm glad I stumbled across this discussion. If you don't mind, could you tell me how to reach this investment adviser who helps you with your investments?
I started out with a Financial Adviser called "Jill Marie Carroll". Her honest approach gives me complete ownership and control of my position, and her rates are incredibly affordable given my ROI. However, do your due diligence before contacting a financial advisor.
Similar story here. Just middleclass working stiffs. I semi-retired at 58. The so -called financial planners held me back and skimmed way too much off of me in fees. One put me in a "special investment".. Lost a bunch with him... Fortunately I bought enough low cost, broad market index funds to put me ahead. Be your own fiduciary. Separate your banking, insurance and investing and win big. Divided everything in a divorce last year and I am still in great shape...and love my freedom at 64.
Holy cow, those are very disturbing numbers. I retired from the military 25 years ago and always planned that my military pension + SSA would be my retirement. I realized around age 50 I really needed to get serious about savings. Those numbers make me feel a lot better about where we are today.
I wish my parents taught me better about money, luckily a couple month into my first job i was like "i had to work two hours to go out and eat a $25 meal at a restaurant" thinking that way put things into perspective.
@@AutumnAspensThere ARE times when interest on a loan does make sense. If my mortgage is 3%, and the S&P 500 average is over 12%, I am not going to pay off my mortgage any time soon. But credit cards? Definitely.
@@Duke_of_Prunes I was wondering that myself. I have a little bit of disposable income and was weighing paying into my mortgage which is at 3.5% or investing in the market.
@@DanielHBuchmann You can still get over 5% on short term CDs. Reits are super low because of interest rates. And there are good stocks, still, at attractive prices. Something to consider....
Just found this channel and this info is staggering. It's hard to believe so many people have absolutely no plan for retirement but then again I realize most families don't push planning nor is it taught in schools.
I am 42 and was fortunate to have a day show me the importance of saving and have been contributing heavily to 401k since 19yrs old and blessed with a wife that is always watching what comes in and goes out. I have been blessed to max my 401k out much of the past 15+ yrs and we have a healthy savings..... we all have to plan for our retirement because the government dosen't want to see us retire or be able to enjoy it.
Don't be paranoid of the government like that.
@@geoffreyharris5931 why the hell not? You think they are here to help? LMAO
@@Trignama1the gov needs everyone working to prop up their wasteful spending
The information is staggering but I can tell you of my five siblings only two of us make good money choices, we were taught at home. Our grandparents were successful business owners. Many schools are pushing for financial literacy.
Debt free for a year and a half now. I own two 20-30 year old vehicles. My house is 145 years old, and I paid cash for it. Fixing it up! It's no mansion but it's PAID FOR and it's a roof over my head. This much time since I've been out of debt and there isn't a thing in this world that could get me to sign on the dotted line again. It really does change you! I look like a poor guy from the outside, but I'm rolling in it.
Many people don't realize that the average millionaire looks, well, average.
I would like to see these strategies plotted out over the last 10 years. Did they do well or are they all about the same? I have been have a hard time with my allocations. I'm in my 50s and have started to move from more risky investment to more conservative investments. Less individual stock to more bonds
investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.
Yes, I've been in constant touch with a Financial Analyst for approximately 8 months. You know, these days it's really easy to buy into trending stocks, but the task is determining when to sell or keep. That's where my manager comes in, to help me with entry and exit points in the industries I'm engaged in. Can’t say I regret it, I’m 40% up in profits just in 5months with my initial capital of $160k
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Having an advisor is essential for portfolio diversification. My advisor is Lisa Angelique Abel who is easily searchable and has extensive knowledge of the financial markets...
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Thank you for taking the time to help by doing these videos. Between you and a few others on UA-cam I feel more secure. Thanks
Thanks!
I never understood not saving for retirement. You are putting yourself first. It is amazing to me how people buy 70k pickups and don't have any saved money. Nobody today has a budget either. I learned when I was very young to have retirement money auto drawn from my account every month. Out of sight out of mind. I am self employed. No company matching ect, just discipline. Helping myself for later.
Or supporting their kids into their 40's. Always put on your oxygen mask first before helping others.
@@badinstinctsyoutube7108I agree yet some must be way smarter than others and figured out the basic concept of delayed gratification and reduced stress of being debt free and not living paycheck to paycheck
@@badinstinctsyoutube7108Maybe retirement is unnatural as well. Just work until you die or can't anymore and starve.
The numbers regarding median 401ks don’t include what people have saved in brokerage accounts or in other investments like real estate. Part of the reason I think those numbers are low is in part because employers only match up to a small % and IRA have a max contribution of 6,500. I think the real question is how much have people put away in ALL of their investment vehicles combined.
Not to mention that means would be more helpful than medians.
Also, the numbers are by account. People change jobs and don't necessarily combine 401K's into a single account. Some change jobs every couple of years. I suspect the numbers very much understate the total that individuals/couples have saved for retirement.
@@tpiety Median is actually more informative than the mean because the mean can skew the result higher or lower giving a false impression of the true numbers for each individual. For example, if your data set is 11 accounts, and 1 account has $10 million, 5 accounts have $100K and 5 accounts have $50K. The average, or mean account size is $977,273 which is clearly not reflective of what each person has in their account, and that number is misleadingly skewed higher by the $10million account. The median in that data set is $100K (half of the accounts are higher and half are lower) is a much more accurate representation of the range of values in most of the accounts.
@@KayFabe87 you are right. Don’t know what I was thinking.
@@KayFabe87Indeed
My Aunt used to say " when you have bread , you have everything " it's quite simple but yet it's very profound . if you look at pictures from the 40s 50s and even into the sixties you'll see families with a small homes most of them just one floor because they didn't need anything bigger , and but society said you need big so you should build big and pay big. If you're not doing well in the money department pray more worry less
All newer homes have walk in closets. Homes were never built with walk in closets. Then again, clothes were made in the USA and they lasted longer
The problem is that now all of these small starter homes are getting priced like luxury. I'm looking to move and can't afford anything on a high salary. People don't realize how bad it's gotten until they go out there. Oh and I'm taxed like I'm rich since our tax code thinks six figures is upper middle class
Azul: thanks for giving the scam warning. There is a guy (or team) on EVERY financial video comments section. The guy first claims he made a ton of money from his F.A.'s advice. then he uses other names to reply with "that's my advisor and he made me lots of money." Then he uses another name to say, "maybe I'll try him, what's his details." All a big scam.
Wow! What an eye opener. Thinking I wasn’t ready to retire. I just turned 60. I have a current military pension. Working and nearing retirement on my second career that also has a pension. And I put nearly 30k a year in savings and retirement; including maxing 401k. Planning to retire and draw SSI around 65. Single and plan to live in an RV and travel until I cannot. I do not currently carry any debt. I owe nothing.
I'm a few years from collecting my "paycheck of the month". For your fellow service member friends still in, have them Google the COLA trap. It's how military COLA is calculated. The best month would be Q2 of the FY, ideally on 1 March. That's what I'm planning to do, I'll be 61. DoD is my second career so those 401k, IRAs from corporate world are growing. Thanks for serving!
I started investing/saving at 17 and have remained debt free my entire adult life. I only use debt if it serves me, a rental property as an example. I have also found out I have siblings who did not plan at all. I discuss finances with my nieces and nephews so that they can also take advantage of compound interest, my grandparents gave me the tools. Many thanks to Money and Kiplinger way back before the internet.
When I was in my 20s and relatively newly married, we had an evangelist come to our church, and he said to buy only assets. Don’t buy things that cannot make you money. I’ve tried to do that and so far it has worked out very well.
Whaaat? What kind of money making asset can u buy apart from real estate, and how many can afford that? Most people who say this shit are trust fund kids or those that inherited wealth that can be used on investments.
Gold, collectibles (comic books, sports cards, art), watches, etc the good ones that will hold their value.
Metals…gold, silver, and lead!
I live out in rural Kentucky. Can’t tell you how many beat up rusty trailers I see with $50,000 cars parked in their gravel driveways. We are in a 3,000 sf house that my husband built (he’s a builder by trade) and our cars are all used and well cared for
I'm skeptical of advice from people who use words like "only", "always", "never", and so on. There is no advice that works for everyone, I much prefer to hear "usually", "often", and the like.
What's really scary is when paper fiat goes up in smoke and becomes worthless and the market dropping dramatically. What are we supposed to do then?
If paper money goes down in value, that means stocks and other valuable assets will likely be going up in value.
Great video, as always. Most importantly for my husband and I was parents who were savers, not spenders.
I've been in that camp where i had less than $2k in savings because my mortgage was so expensive. That was in my late 20's. Now I'm in my late 30's and i have a smaller house a few toys, cars, kids and a wife and I'm better off now in every way. Thank God.
Looking at the median balance in 401k accounts is useful, but we also need to keep in mind that nowadays people have multiple employers over their career and thus could have multiple 401k (or 403b) accounts. The other consideration is that many people roll over the balance in 401k's to self-directed IRA accounts. So while I don't have the empirical data, I suspect that many folks are better off than the numbers you quoted. The real issue in my mind is the folks who are struggling just to make ends meet on a weekly basis and will only be able to depend on SSI when/if they retire.
I had two 401k's with different employers. In 1997, my Fidelity adviser was able to cash them all out and combine them into 1 401k and helped set up my Roth IRA. Funded 401k and Roth IRA with 12% to 16% and 401k was company matched at $1:$1 so 100% interest from the get go.
Then in 2015 I was 58 Years old and forced to retire due to off the job disability and he again helped me roll everything into my IRA's. I was able to live off my IRA until SS kicked in for my disability 2 years later.
True, but many more people have no retirement account whatsoever.
I'm 81, From 55 to 65 my income doubled. I decided that we were living comfortably on what we were making at age 55. I put every raise I got into savings. I maxed out my contributions to my 401k. As result at age 81 we are very comfortable, we travel and enjoy life, with more than $1,000,000 in savings. My point is to save as much as you can while you can, it pays in the end.
My husband started working mandatory overtime of 10 hours each week starting 3 years ago. We take that extra money and save and invest and keep living off of his regular salary. I know some people that as soon as they get some over time money, they spend it !!!
6 years or so ago I started adding any raises or extra pay to my retirement account. So basically I'm living on the same income over the years despite inflation. I was behind where I wanted to be retirement savings wise...although way ahead of the figures quoted in this video...which are absolutely terrifying. If I were in my 50s with no savings and 36k in a retirement account I'd be working a second and third job if needed. Several relatives of mine retired just on SS alone and some not even owning their own home. Living in poverty as a senior is the worst possible scenario I can imagine. I would just keep working if that were the case. I grew up poor and have no desire for history to repeat itself. Cheers to you in your retirement!
I am 55 and I will have my mortgage paid off in a few more years. I own both vehicles and a nice cushion in the bank. I may not qualify as wealthy but I sure feel rich.
Good video. I think one thing that skews the 401k numbers is that many -- probably most people - roll their 401k balances over to an IRA or Roth IRA when they retire or change jobs, in order to have more flexibiity, lower fees, and to consolidate with other retirement funds that they've rolled over from prior employers' 401k plans. So the people with the most overall retirement assets (those in their 50s and 60s) are missing from the stats when looking solely at 401k balances.
I rolled mine over and got a great financial advisor to manage it. Wisest decision ever
It feels good to see the market in green, but just how long until we actually break even, I’m the average retail trader, DCA-ing, buying and holding on to stocks for eons, but it’s like I’m up 5% today and down 17% the next week, Yes the market is very Darwinian, there’s winners and losers, and it’s looking like I’ve been on a losing streak, while others make huge 6figure gains in the same market. What strategies are these folks using?
So what I do is buy companies that are doing good things, executing on business plans and then short companies that are missing earnings, it’s as simple as that.
we’ve been in a rally for the last decade, you just gotta accept not everyone is as knowledgeable in the market to handle the opportunities a crash market presents, and unfortunately for me too, I got in 2019 right before the market’s melting point, I just hope I recover soon enough before retirement. S`tay strong.
@@Oly_laura Nicely said, I was thinking about going that route too, Jimmy Cramer has been going on about opportunities at stake in this present market and I’d really love to set my portfolio up for whatever is coming 2023, could you recommend this coach that guides you?
@@Oly_laura She appears to be well-educated and well-read. I just ran a Google search for her name and came across her website; thank you for sharing.
***SCAM ALERT***. Please don’t select a financial advisor based on an anonymous UA-cam tip!!!
It definitely all starts with budgeting, finding out your monthly savings rate, trying to get it above 20% of your take home pay, and then figuring out how long it’s going to take based on your projected rate of return to get to where you want to be. This is why it pays to start early, compounding interest really only kicks off after 20 or so years of consistently investing. The key is consistency, meaning you’ve created enough of a cushion and a disciplined system of putting your savings rate away into the market that nothing will disrupt or halt that.
that is why I rarely eat out anymore at restaurants way too expensive now
The “average” wealthy person does not flaunt their wealth. They drive a 3-5 year old car, which is paid off. They focus on wealth building instead of extravagant lifestyles. Contrast that with “fake rich” that drive a leased BMW.
I agree -Jason; the fake rich are living the dream, for the moment on borrowed time, large incomes and huge debts, big homes, toys/bling, etc. In Texas they call them Big Hat and No Cattle! You're spot on - the average wealthy person possess the attributes of the Millionaire Next Door. However, not everyone is a fake - I have a 7-figure investment portfolio, drive a 5-year old Ford pick up (paid for), live in modest home (paid for) in middle class neighborhood, do not have an extravagant life stye, but do have an American sports car I drive for enjoyment (except in winter months) and attend car shows. Got to enjoy life and live a little!
@AzuI-wells Since I doubt most folks are saving for retirement at all, it’s not hard to be above those numbers. However, even so, it is unlikely to be enough - depending on what kind of lifestyle you plan on having. There are plenty of guides online about what numbers to shoot for. Basically I just tell friends and family to save at least 10% for retirement, 10% for non-retirement goals (house down-payment, etc) from the moment you start earning a paycheck - even if that means adjusting your lifestyle to make that work.
Try a 23 year old car.
@nanniecath528 I've driven same car for 22 years, paid cash for it and maintain it well. In that time repairs and maintenance about 8k. I don't trade my time to impress anyone. I do have a truck to use in business also a cash buy.
Hello Azul, many individuals always state that financial education should be taught at schools. As a retired teacher, teaching high school students for over 32 years, I really tried to implement a financial mindset with my students. There are also basic courses taught as well in my jurisdiction. The problem that I continuously encountered was general student apathy. Most students are so concerned with social media, their peers and consumerism, that learning about compound interest, the dangers of credit card debt, mortgages ect. is way beyond the latest trends on twitter. Most classes end up not being taken seriously by the students and cannot grip their attention as the latest tik tok video can. Personally, I have also witnessed many of my colleagues who need more financial education as well. Uphill battle but I did walk the talk and retired at 55 following many of the sound advice given on this channel. Thanks for your videos!
You were more effective than you think. Many times a teachers words hang out on the back burner till something triggers them to revisit what they heard way back when.
Yes your words may ring loud later in your students lives. But social media is only a recent thing. I call bs on your post
The class I had in high school (45 years ago) was called 'Consumers Ed' and it was the most God awful boring class ever. It's not the subject, it's how it's presented.
I always here, “teach them taxes”. We have lawyers that have to specialize in tax law and even they don’t know everything” How can a teacher teach that? Also there a multiple philosophies on the correct way to do personal finance. How can we say what is right vs wrong?
@@sstrongman1667 Learn how to use a bank account. Most kids don't know. Can't write out a check or even sign in cursive. Those that don't learn to play the money game go through life paying fees that chip away at their wallet. I listen to the young ones at work and they're stubborn. I learnt a long time ago to knuckle under and play by the rules. He who owns the gold makes the rules. They don't need to know taxes but they need to learn about bank accounts, credit scores and running a household (wants vs needs), and the fine print before you sign on the dotted line. Some just never learn.
This is so sad to me. These things need to be taught to everyone. Always pay yourself first even if its only 20 bucks over time it will keep adding up and bump it up every chance you are able to! Always take advantage of any employer matching by maxing it out if any way possible. These stats are grim.
At 37 or 38 I started studying inheritence/living wills and it lead me to basic investing info. 2 years later I am set for life now.
Great video. Corporate America loves all of those that are "in debt to the company store". You correctly noted that we don't educate children on personal finance responsibility and the rewards for saving and building toward a successful retirement.
Charlie, good news from someone in the 401k business. People in their 20s are participating in their plan at much, much higher rates than 10 to 20 years ago. In many plans I see the 20 year old demographic participating at rates higher than the 30s and 40s.
@@scottl9144 That is great to hear as likely the young people in their 20's have seen how their parents have made a mess of their financail lives by not responsibly saving for their retirement.
Absolutely true. I have a niece that is very smart in this math subject they teach in school now but lacks the basic skill to learn to save. I don’t know if these kids think the government is gonna take ‘care’ of them or what. It’s heartbreaking.
16 Tons "I owe my soul to the company store"
A great rule for interest rates is the rule of 72. When the (years x interest rate) = 72, you double your money. So, at a savings interest of 1% (which the markets had been for years), it would take you 72 years to double. If you put it into an S&P 500 fund and average 9%, it will only take 8 years to double. It’s a good rule to know. Thanks.
Thanks Azul for making us feel more at ease. Your videos and explanations are reassuring. Your are doing an awesome job and great service to those of us nearing retirement and wondering if we we have enough.
I am 41 and my wife and I have around $320,000 in stocks, etfs etc. Sometimes I really wonder if that will even be enough for us when retirement time comes. I keep seeing people with upwards for 2 million saved at my age and it's scary to see that. Thanks for giving me some piece of mind.
I have a little more than that (2mm+) at 57 and the numbers say I need another 1mm for 3 total to generate what we WANT in retirement income - doesnt mean we'll get there...
The most important thing in retirement is being debt free. Day to day living costs (rent/mortgage/car payments) are what eat into most people’s retirement funds.
@@agates9383 Multimillionaire worried about not having enough money. That is hilarious. Rich People. Gotta luv them.
This is a new person for me to listen to and learn from. There are several good advisors to listen to on you tube, including Devin Carroll, Josh Scandlen of Heritage Wealth Planning, Cardinal Advisors, etc. Listening to several folks will give you more viewpoints to consider.
I am sixty one. I am cardiac and I have zero invested in the market and I am not worried at all. In fact these are my best years ever in terms of happiness. You do not need that much to live well in retirement. I mean, if you want the latest toy, the new beemer every 2 years, 4 trips a year, fancy groceries, your second home 2 miles from the beach where you go 3 weeks in the year...you better start saving when you are very young.
A few issues I've seen in the community I live in, is retirees not having enough to cover the cost of medicine, home and auto repairs, property tax, burial and settling their estate. Just modest savings could have made a big difference.
Critically important advice.
I grew up poor but retired safe and comfortable.
Some key things.
1. Make a record of what you spend. Be honest. Eliminate things that give no return. Subscriptions you won't miss etc. Once you know where the money goes you are on your way to becoming responsible.
2. Allocate money to savings just like you do food and shelter.
3. Maximize your earnings. Just believe you are worth more and you'll find a job that pays you more.
4. When you retire, defer your SSA to 70. It will then pay out substantially more and is indexed to inflation.
I fully agree. However, I just want to add, you get one life and you need to enjoy it. I think the key to success overall is a healthy balance. Seen to many cases where people save everything all their life, defer social security, work till 75, and die before ever seeing the benefit of their discipline. Their kids swoop in and blow through the wad quickly.
@@derrick9497 Agreed. More good advice. The only thing I'd do differently is to strike a better work / life balance and take far more vacations. The EU has that part right. You can still be effective, earn a lot and take time to enjoy life. And definitely retire.
That said, being retired with more money than you can use is also fine. It is great to finally just not have to think about money. In my case I will enjoy anything I want in retirement and still leave a small fortune to an organization that serves the community. They have no idea I even exist. But I have no worries and get some small pleasure in knowing my work helped others less fortunate.
You were doing well until #4. I am a diabetic, and have already had a multiple bypass surgery - 22 years ago. I started collecting SSA the day I turned 62. If you wait until 70, you will need to live into your 80's to make up the difference. I'm not going to make it into my 80's. Each person, and their circumstances, are different.
@@dennissvitak148 You are correct. My recommendation of deferred benefit only works if you expect average or above average longevity.
In our high school we have a class called Consumer’s Education, which actually does teach kids about investing and money management. The problem is that 17-18 year olds have little to no interest in it, unless they have grown up talking about it in their homes. So, it is taught in schools, it just isn’t absorbed.
We were interested in money by fourth grade.
Instant gratification is hard to overcome.
Comparison is the theif of joy
Spelling is the thief of a smart comment
@@jonalport😂 bam👊😂
@@jonalport great
sorri grate
Wow, that median is so low!
Hi Azul, Your show is helpful, fun and enjoy the topics. Been retired10 years, now 75 years old, enjoy travel, friends and family.. Have 4 rental properties all paid off which give good cash flow, help to beat inflation too. Also a 7 figure portfolio. We lived very frugally during our working years. Now in retirement have income of 220,000 which is more than we made when working!
What careers or jobs did you all have to do that?
@@travelseatsyellowlab Congressman....
@@lazvt8469 Makes sense..
Azul, thanks so much for your content. It's always interesting to listen to what you have to say.
I'm soon to be retired and have invested heavily in mutual funds for many years and done very well. The importance of long term planning cannot be overstated. Thanks again.
Great info to hear. I'm right at the median for my age.. This is good news.. Unfortunately I only started saving anything for my retirement 4 years ago. I'm 61. I got myself tangled up in a bad relationship and lost what I had earned (through a bad MC accident\lawsuit) with alot of pain. So going trucking and listening to Dave Ramsey.. I got things turned around. Luckily because I saved; I recently went on a 900 mile road trip and was 92 miles from my destination, the engine in my car (Toyota with 152k) died. I was able to spend the money for a uhaul truck and tow dolly to get it back home. ($1,150) So.. because I made some good decisions.. I have 2 other vehicles to drive. So Azul.. I just found you\this channel least night. I have subscribed.
I retired 6 yrs ago. I saved well while working and have a decent retirement income. I leveraged all of this by moving to a much more affordable country, where the cost of living is about 1/3 of that back home (Seattle). Zero regrets...plus I get 320 days of sun/ yr.
Agreed! I’m 5 times the median for my age group, but I’m early in the pool….by the time I reach 59 I should have well in excess of 12-13 times the current median, with another 7 years to stack that cash! Plus we’re very close to only mortgage debt and should be 100% debt free when we retire at 67. Ideally we could retire at 65, but with the current make up of the government, honestly, I’ll just be happy if I can retire period.
Where ?
Philippines
Thailand
South America ?
@@JAYY_JAYY Mexico.....love it here.
Azul I thank you for your videos. You are a skilled communicator and seem well informed and competent
I just 30 this year and have just under $40k in my own 401k and another $10k between my other retirement accounts. My wife has about $41k in her retirement accounts (she is not currently working). I currently make close to $63k a year. I only do 5% though to my 401k for the company match and another 10% of my income is split between an HSA and a ROTH IRA
51 years old. I have $295,588.25 in my Fidelity retirement account. I cranked my contributions up to 35% and I do all the investing on my own. Fidelity just holds my ETFs/stocks. I made that change earlier this year. I'm hoping to end the rat race by 60 but it's looking more like 63-ish. I want to have $1.5M and bring in about $60k in dividends each year. Pedal to the floor! Thanks for the video. Great content.
I completely agree; I am 60 years old, recently retired, and have approximately $1,250,000 in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, having a portfolio-advisor for investing is genius!
Do your due diligence and opt for one that has tactics to help your portfolio continue consistent and steady growth. "Helene Claire Johnson" is accountable for the success of my portfolio, and I believe she has the qualifications and expertise to accomplish your objectives.
I was unemployed for 2 months !
NO ONE HELPED ME !!
Thank God I had savings
Almost everyone, including the media, is anticipating a market catastrophe, and as a result, many are turning a blind eye to the opportunities in the market. I began investing in stocks and Defi earlier this year and it is the best choice I've ever made. My portfolio is rounding up to almost a million and I have realized that when a stock makes it to the news, chances are you’re quite late to the party, the idea is to get in early on blue chips before it becomes public. There are lots of life changing opportunities in the market, maximize it
What opportunities are there in the market and how do I profit from it?
@@Leighwilliams112 You can make a lot of money from the market regardless of whether it strengthens or crashes. The key is to be well positioned.
@@Randymanfred41 I will really like to know how this actually work
@@Randymanfred41 Do you have an idea of any good broker I can start with?
I recently started trading in April, invested 38k in the market and my portfolio is currently worth slightly over 270k. That's alot more than I make in a year from my job
Superb video, I’m happy to be mechanically inclined. I’ve saved thousands on car repairs as well as home maintenance. You Tube videos can offer a free education on several topics, just like this video.
Hi Azul. Unless I missed it, you didn't specify for your followers 10% of gross or net to begin savings, or 401K contributions. Please clarify, because that's a major difference. I would hope it's of the net, but I'm not the video maker. Since you have the expertise, followers do need guidance. Thank you so much.
the size of your retirement portfolio will overwhelmingly be a function of the performance of the stock and bond markets between now and when you start withdrawing from it.
Private investing is the best way to go about the market right now, especially for near retirees, I've been in touch with a wealth manager for awhile now netted 370thousand this downturn, made it clear there's more to the markets than we average joes know.
Our consultant is *Loren Lena Walker* , experienced and advanced and consults for many brokerages so is independent and can be a fiduciary to you.
She is a fee only, I won’t want to blow my horn but well over 60% on a 1 m portfolio in the past year despite economic conditions is commendable isn’t it?
I have lived below my means for so long, I don’t think I could change
It is hard to quit being so frugal. My kids tell me all the time to spend my money as they don't need it but I like being frugal. I have learned to enjoy some things money buys but I'd be fine without them.
@@grannygoes7882 so many put value on worthless needs! I do the cooking at my house, fantastic meals are prepared & served so inexpensively it amazes my wife & daughter. People feel they must have to newest phone/electronics, newest cars, …….
That is the best way to accumulate wealth. 👍🏻
We paid off the house, cars, and any debts going into retirement, I had medical issues that forced me out at work early, so didn't enter as strong as we wanted to be financially when I left work.
That said, because we downsized, and have no debt we are able to live on SS having a good Medicare supplemental coverage, we are still able to put some savings in the bank.
Trying to avoid having to use retirement savings for living expenses, and just save it for cars, house maintenance etc.that will be coming along
In my opinion, investors ought to prioritize under-the-radar stocks, especially given the volatile nature of today's stock market. With 35% of my $270k portfolio tied up in declining stocks that were once highly regarded, I'm feeling lost and unsure about how to proceed amidst this turmoil.
@champhallier846890+% of the "professionals" cannot beat the S&P500 over time. Investing in individual stocks is a fools errand. You may be up now, but it's no different than gambling in Vegas. You're likely to lose over time.
Spammers
I know I've been lucky, but I also worked very hard for many years. The best advice is to make a lot of money before you retire. And, this is key, don't spend it all! The maximum Social Security benefit is actually a pretty good chunk of change. My wife and I own our home, two late model cars and have zero debt. In addition to healthy retirement accounts, we saved a lot of cash. When we're forced to start making withdrawals, I don't know what we'll do with the money.
We need this to be taught in K12 schools. I'll be teaching my 2 children at home at in their home school curriculum. Start EARLY people, start as early as you can! That's the awesomest thing you can do for your future self
While my peers, neighbors and inner circle were busy buying stuff they don't need or can't afford. I was busy buying assets! My portfolio is now $2.9 million no Mortgage payments zero car payments or credit card debt! I'm only 48 years old currently retired my monthly cash flow is approximately $45k.
Wow- that is awesome! Best wishes in your retirement.
awesome i love it......i still farm with 40 year old tractors and proud of it.. Im not a sucker for new paint.
@@davehughesfarm7983 awesome we are 2 peas in a pot! My only vise is whiskey!
what assets?
@@TunesAndToys are you serious?
I'm currently writing a financial literacy course that I will be teaching at my church this fall. I'm putting a lot of time and effort into it, including creating spreadsheets that are basically mimicing an accounting program, and creating an entire Google Slides presentation. One of my main talking/teaching points centers on overspending... keeping up appearances or with the Jones. To me it's utterly foolish what so many people do with their money.
Financial literacy should be mandatory in high school. The less you make, the more money-smart you have to be.
Could not agree more! We have many non-core classes that are far less important than financial literacy. It is a shame that the majority of schools teach nothing these days. Back in the 80's when I was in school, we had home economics and shop class -- invaluable as well
If government schools taught actual financial literacy, none of the graduates would vote in the political clowns who have chosen to mortgage America's future for power (for themselves) today.
Some schools teach 3rd graders how to budget.
Agree 100%. I told my brother-in-law history teacher that 30 years ago. He didn't agree or understand why.
If I was KING! I would require. A credit check to go into a casino or get the casino ap on your phone. No one under a 675 score can enter or play! Any lottery winner would need to payback in full any previous welfare or food stamps benefits first! No credit card interest rate over 22%. If you cannot qualify for rate lower than that you DO NOT NEED that CARD!!!! Student loans. A tier system. For Plumbers, electricians, truck drivers, farmers at 1%! Lesbian dance theory type degrees 10% above prime.
Love the compounding dynamic and the time value of $
The average retiree, I believe, should have been able to have enough to last the rest of his days. I t just depends on choices during your working days, just as I came to realize later. Surprising how I still netted more $2m. by retirement. And this is while living in New York!
New York is sure as hell an expensive place to live in. Were you affiliated to Wall Street? Because how could you net such a huge amount?
That's incredible. Were you investing yourself? I'm really interested in this, because I'm in a similar position at the moment.
I have many 401k and IRA accounts. So if they don’t look at all my accounts, and just look at what is at Fidelity- then their data is worthless.
When I was a young'un I remember being puzzled why all my coworkers around my age had more and nicer things than I felt I could afford. Nice cars, toys like boats, snowmobiles, etc. Some were just _really_ good at investing (funny thing though, while they may have had some toys as a rule they weren't the ones with the fancy cars) but I couldn't believe how many coworkers were saving little or nothing. So if you are fortunate enough to have saved and invested and are way above average that is certainly good and worth celebrating. The sad thing is the average is so low that being way above average doesn't imply a luxurious retirement.
Im 63 and a1%'er on income and net worth from having two small businesses..but I'm still working.
The main thing is to pay yourself first. It's really easy if your employer withdraws your money before it is taxed. If you don't see it you don't spend it. Plus if you have an employer match it's free money.
I retired in Jan 2023. In 2014 I bought a 2000 GMC Safari with low mileage in mint condition. I didn't drive it much because I drove for a living. I kept it in a heated garage. Since I have been retired it is now my daily driver. I get stopped often by people wanting to know what year my van is. lol. I only have about 450,000 in retirement funds. I feel I have more money now that I can spend it instead of trying to save it. I'm pulling out about $38 dollars a day but my funds are still growing by $40 a day.
Don't be concerned with how much the "Jones " have. As others said below, the important number is what you need. Too many have debt as they roll into retirement. Do your own thing and work hard to get to your goal. At the end, "you got what ya got!". Make sure to save along your career and use fee only Advisor. Time is your friend. Thanks Azul
This is very challenging especially with people always posting what they have on social media. There are so many people driving around in new Dodge Chargers and Challengers. I assume that they are all earning over $300,000 per year, own a home and are saving for retirement.
What is “fee only Advisor”?
@@r.joseph8911 that's a Financial Advisor who charges a flat fee regardless how much money they manage for you. I've seen a range of $500-$800 for about an hour meeting to review and plan your investments. Some brokers charge 1% or more of your balance to manage. Can add up as you get more $$ over the years. $100 for every $10,000 so if you get $500,000 congrats BUT will pay broker $5,000.
@@mocheen4837 I see those people as well. While some do earn big $$ I'm guessing more than half are up to eyeballs in debt. My 7 yr old Honda is just fine :) Keep saving and when comes to retire, you can pay cash for about any car you want!!
Age 50-59 401k = $53,000 ?? HOLY CRAP ! These people are nearing retirement and they have almost nothing. How is that even possible when a lot of companies offer 401k's and match 50 cents to $1 for every dollar you put in. In almost 30-40 years of working a person has contributed $26,000 to $30,000 ? We have our priorities screwed up in this country. The average American household spends $2,000 to $4,000 a year just on cell phones, eating out, cable/satellite TV, and computers with high speed internet. All of those are luxuries, not necessities !! Crazy !! Life in America isn't expensive, all of our luxuries are expensive. We have forgotten the huge difference between wants and NEEDS !
Love your videos, thanks! Just checked my Social Security statement. I’m 57 years old. There’s a new statement on there that I have not seen before. It says because current tax payers are paying for the Social Security of people that are currently drawing it and there will be fewer tax payers over the next 10 to 20 years that they anticipate that we will only have 80% of what our social security estimate states actually available upon our retirement. Pull your statement up and take a look at it and let us know what you think. From what I understand from that statement, Social Security is not going to go completely away, it’s just that the payout will be reduced proportionally for future generations.
I have 3 retirement accounts: one from my old employer with employer contributions, one from my old employer with employee / my contributions, and one with my current employer containing both employer and employee contributions. They're all higher than that median, but just looking at a single one of them would give just a fraction of what my total 401k accounts are. Also, just an FYI as another data source that might capture that, the federal reserve does a survey for this. It says median for families (not individuals) is 65k, and for families whose survey reference person is between 55-64, median is $134,000. Best, and keep up with the financial prudence!
Imagine the shape the country would be in if the majority exercised financial restraint and living within one's means.
Imagine the shape of the country if 45% of working Americans who work full time actually made more than a Median wage of just $18,000 , and Union membership was what it was in the 1950s, and the top income earners paid the tax rate that they paid before 1981. Yes.....imagine.
@@Wasteoftime10 First of all, the current median income in the US is about $45,000 per year not $18,000. Secondly, the to 10% of earners in the US pay an average income tax rate of 25% and about 75% of the nation’s total income tax. So what you’re saying is you want even more taxes taken out of their paychecks just because they earn more, are more responsible with their money, chose not to have a bunch kids they couldn’t take care of, live and spend within their means, worked smarter/harder, etc? Jeez….where do you draw the line and what do you propose the IRS or other government entities does with all the $$$?
@@JCizzleSoCal When you understand the difference between 45% of the working population as I stated and not 100% as you are referring to, I'll then explain to you the difference between Keynesian economics and Friedman, which created the Middle Class from 1934 to the late 1970s, and which destroyed it from 1981 to Present.
@@Wasteoftime10Looks like you got a knee jerk reaction there! And you are right. 45% on an income that bearly provides sufficient for basic survival is fundamentally wrong. The US is the wealthiest nation on the planet and yet so many live in poverty. Not because they are lazy or stupid but because the odds have been stacked against them, and it's not getting any better. And who is stacking the odds? The wealthy and influential. For their own gain.
Imagine if our government would do the same!
Great symbolism...starting around 02:20 you are walking away from a sign that says "Dead End"
If everything is paid off. Inflation dont matter. My grocery bill goes from $70 a week to $77 if inflation is 10%
The 20th birthday of my truck is next year and I could pay cash for a new one but I'm not an idiot. My truck is like an old friend and does everything that a new truck could do. I'm looking forward to the 25th anniversary. Live below your means and you will be an happy camper
Rule #1 avoid debt but if you must take on debt never take in debt that isn’t fixed rate. Then blindly invest in the indexes and out no thought in to it whatsoever - just be consistent. Buy a used car at most every ten years. I’m a super saver, 45 and will easily retire at 57. It isn’t as complicated as people think.
I'm a major airline pilot and at 57 I've never bought a brand new car - the moment you drive it off the lot it is now a used car. Saving for retirement is easy. Max out the 401k, never accrue credit card debt and live below your means.
I bought a previously salvaged car and suv when they were cheap. Been driving them forever. Problem is now they want top dollar for them as well as used. Fortunately I have saved enough to buy new going into retirement. Need the peace of mind for going not just from a to b but from a to z.
Truely startling statistics. Makes me grateful for the superannuation scheme in Australia
Thank you for this insight Azul. One more year and I'm done 🙂
Thanks for the video. I enjoyed it.
I believe that there are a great number of individuals that have a pension (e.g. teachers) that have not saved for retirement - why should they when you retire with a guarantee of 80% of your salary for the remainder of your life.
Agreed, I have a federal pension and after I pay my health insurance, dental, life insurance premiums I net over six figures. If federal pensions fail in this country my assumption is that 401s etc have already crashed.
@@pcoc8694not sure what federal agency you are with but mine will likely be around 5 to 800 a month. I have other investments but that's a pretty crappy pension. Albeit, better than nothing.
As a retiree, my best advice is to live debt free asap. House and car need to be paid off before retirement and try to save as much as possible. Also, pay cash or use a credit card ONLY, if you can pay the full balance every month. (you pay Zero interest, if you pay off a credit card in full every month, cash back cards help too).
Negative, why would I want to pay off a 2% mortgage using somebody else’s money when my money annually makes over 12-19% invested! Your kind of thinking is what keeps people poor or barely comfortable. Smh..
@@_DB.COOPER It is psychological on the spending side. This is like when someone says that it does not pay to exercise because it takes 3500 calories of savings to equal a pound and thus a mile a day is not even a pound in a month. But exercise definitely changes the body and the nature of what a person "wants" to eat. What I would add to the above is something very different. It would be that a dollar saved at fifteen is worth many dollars at fifty. Start young.
@@jamesstrawn6087 you make no sense, I retired at the age of 51 by using other peoples money to make me money. I still have a 2% mortgage and over 2 mill in stocks drawing way more than 2% annually. Now you tell me what makes sense financially. Smh…
That’s what we did, and have been comfortably retired for many years.
eh? I agree on living debt free, but I'm not going to pay off my house before retirement. !. I'm only paying 3.5%, I can do better investing, and 2. I'm not retiring where I currently living. I live in the south eastern part of the US, because that's where the job is, but I HATE living in the south. I like friendly people, culture diversity, a corner deli, great food and four seasons! - none of that can be found in the south. So I do put extra on the mortgage simply to build equality for when I do retire and down-size, but back in the real world - somewhere far away from all the bible-thumpers!
Would appreciate hearing about other ways of generating net worth other than saving. I put my extra money into properties doing quite modestly but its hard to save 15% after spending wages on supporting those and operations.
A number of good points made here. Small things add up over time. My company does "merit" raises each year, generally about 3%. Every year I get that 3%, I have always used it to increase my savings not my spending. When we refinanced our mortgage and went from an 8% rate to a 3.5% rate, we keep "paying" the same amount we had paid when our rate was 8%. The difference was we were making additional principal payments and paid off mortgage in half the amount of time and then started investing the amount were had been paying toward the mortgage. Same with a car purchase. Made additional payments, paid it off early but kept putting that payment amount into savings/investments so that future car purchases could be done with cash. Live below your means and let the Jones pretend they are rich, meanwhile you will become the millionaire next door that no-one knows about.
This is what I did and we paid our house off way early by our early 50's. Saved a bunch on interest.. Since then the extra money has been invested for our retirement. And we have been fixing up our home the way we want and are making it ADA friendly. We paid our son's college costs off and now we have amassed a comfortable amount for retirement and Long Term Care insurance. We have no debt so we splurged a little and bought a new crew cab truck to tow a little fishing boat or small trailer. Our other truck was on its last leg. 27 years old. And just a little 2 seater. We figure we can more than afford car payments for a little bit and put extra each month towards principle. We pay off things early or pay cash. I retire in 3 years so the truck will be paid off by then. 👍 We also enjoy having extra money to take fun trips off and on. We have tons of lakes within 1-2 hrs. From our house so it is fun to go to the lake. Or to take our small pop up trailer and kayaks and have fun! A real cheap vacation. 😊 Woo hoo! It feels great to have a good reliable income for retirement. 😊
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@@ilikecontent2327 love it. Enjoy the crew cab!
Wow. Some real eye openers. I feel like I am wealthy, based on the figures you quoted.
Interesting comparison; however, that can be as much a trap as comparing what you have to what your neighbor has. Be satisfied with what you do have and strive to save more instead of being in a competition with others. Living life to keep up with the Jones’ will only add more stress than it’s worth in life.
You better believe it. Strive to live well below your means. Better toys and goods doesn't make a better person.
I’m impressed with some of these UA-cam channels that are showing how CHEAP you can survive on. Not for everyone, but you won’t starve to death if you’re living on SS checks. Find a side hustle. This whole idea of you need $1M is a total farce. Be creative. Enjoy your life while you still can.
Mr. Azul rocks! Almost every subject that he brings up for a discussion resonates big time...I also share many other similarities: same age, same humble upbringing and I even drive a Mini Cooper as a weekender (with a manual tranny though)
My Mini Cooper is manual as well. 😎 Azul
A Mustachian😂😂😂😂😂😂😂😂Mr Money Mustache🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉
Those 401k numbers are shocking.
One thing that's not considered is that people may have accounts with more than 1 provider. For instance, my roth is with fidelity, I have an old 401k in vanguard, and my current 401k is with schwab.
Same here. I have three separate 401ks, totaling $120k