*I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone's that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.*
The wisest thing that should be on everyone mind currently should be to invest in different streams of income that doesn't depend on government paycheck, especially with the current economic crisis around the world. This is still a time to invest in Stocks, Forex and Digital currencies.
People dismiss the importance of advisors until they are burned by their own emotions. I remember a couple of summers ago, following my lengthy divorce, I needed a good boost to assist my business stay alive, so I looked for qualified consultants and came across someone with the highest qualifications. He has helped me raise my reserve from $275k to $850k, despite inflation.
Investing with an expert is the best strategy for beginners and busy investors, as most failures and losses in investment usually happen when you invest without proper guidance. I'm speaking from experience.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?.
Chapters: 0:00 - Intro 1:14 - What is Net Worth? 4:23 - The Money Guy's Net Worth Tool 6:07 - Net Worth by Age Updates 9:58 - 20s 17:50 - 30s 26:39 - 40s 36:05 - 50s
Net worth truly snowballs after $100k! Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE!
My advice to everyone is this : if you want to grow big this year especially in your finances. Be willing to make investments. Saving is great but investing puts you on a pedestal where you wouldnt have to worry about savings as you do now. Thanks to my FA, my portolio is doing really great and im proud of the decisions i made last year.
Nice. People often underestimate financial advisors' importance. Over 50 years of data reveal that those who work with advisors typically earn more than those who go it alone. I've been fortunate to work with one for 13 years, resulting in a $1 million portfolio, largely from early investments in AI and other growth stocks.
Lauren Christine Campbell is the CFA I work with and im just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
In case my situation makes anyone feel better, here is mine. Age 24 Current net worth: -15k Current FOO step: 1 Goal by age 30: - Have 30k net worth - Begin investing 20% Overall, I am feeling very good about my situation and outlook if I follow my plan :)
I was about 20k in debt at 24 and now I'm 32 own my own home and have 120k in retirement and I only make 80k a year. It's def possible just stick to your guns u got this.
In 2024, I went from net worth of $-7K to $+500 thx to FOO. I'm 30 years old, and haven't made the best financial decisions, but I now feel confident that I will be able to catch up to where I need to be in the coming years!
No one should ever be in the negative if they're not paying for a house / setting up a business. Getting in debt for any other reeason is insane. Good job getting out of the hole, never go back there.
Nice! Keep building on that base. I remember when I was 26, I was at -15k net worth. I am 35, and through small steps I am at 400k+ (25% of that is house equity). Those wins will add up quick and next thing you know you are at 100k
I am 53 and my net worth is at 10.25x my annual salary+bonus. Earlier this year I finally reached the "financial mutant" status of net worth being 2x the millionaire next door formula. When I saw them say I need to have 13.75x income by the end of my 50's I was not sure if I was even tracking, but looking at projections, I should make that by 60 with some room to spare. Just have to stay the course for the next few years.
It's 2025 and Bo is soooo excited!! I've listened to you for a long time and you are always spot on! I updated my net worth worksheet (yours) over the past couple days. I did some major gifting in 2024 ($75K), which resulted in a large increase in Fed & State taxes. Despite all that, my net worth only decreased $7,808. I'm 75, retired 13.5 years and NW is now $1.4M.
Crossed the $100k NW at 24, can’t wait at get to $200k! Thanks for these helpful videos, they help more than you know! 2025 is my first year that I’ll be maxing out my HSA account all thanks to your advice 🎉 soooo excited
Social media, with info and videos like this, has really changed how people manage their finances. Now that we can see what others are doing, plus get educated, it seems like we all have a much higher net worth than people our age a couple of decades ago. I feel like we're all millionaires or on our way, if we're younger.
I did my first net worth statement in September of 2004, at 24 years old after completing FPU. Net worth was $153,000 with my then fiancee. Fast forward to Jan 1, 2025, my wife and I have a NW of $2.75M at 44 years old. We’ve also been a single income household for the past 8 years. Listen to these guys! It works. I’m not a doctor or anything like that (I only have a high school diploma). You can do it!
@@awesomekj58123 options, either: 1. They had all there initial money invested and then continued to invest about 2,500 a month for 20 years. 2.They own a house that skyrocketed in price or sold some real estate. 3. Some combination.
My net worth is -$10k, but i just graduated nursing school at 21 with a job offer for 75k and minimal living expenses. This whole year i'm going to be getting my 76x wealth multiplier :)
Also going to community college for the prerequisites and the nursing program was only $15k, that’s amazing. It blows the Money Guy rule of keeping total tuition costs below first year salary out of the water
I reached $90k today. Thank you for all the knowledge and insights you've shared with me over the past few months. I began this journey in November 2024. Financial education is essential for over 70% of the population, as only a few are truly literate in this area. Thanks so much Angie Chen Owens
Just exited my 20s, and almost matched the example given at 14:20 exactly; been consistently saving at least 10k/year since 2017. Only difference is the market has already doubled the contributions inside our TSP. Your wisdom has helped affirm that we're on the right track to financial success, so thank you!
Did an updated networth statement yesterday. Husband and I crossed 100k invested last year and 300k NW! 🎉 We are 30 with two young kiddos. We have learned so much from you the past year, thank you money guys!
We have just crossed $100k invested this year, with a net worth of $222k! Four years ago, we had a negative net worth. It’s never too late to make a change and start building wealth. Never give up!
13:28 33m Graduated at age 22 and got a 36k salary. Don't go into education kids. I'm being a little facetious, but it's difficult trying to save for retirement, pay the bills, pay for dates while trying to find a partner, save an emergency fund, and still pay rent. Now I'm 33 and the goal posts seem to just be getting further away.
Wife and I hit $400k NW at 29 this past year, 167k household income. Everything is just exploding now. Thank you so much for your videos and encouragement. They’ve helped set us up for so much success.
In my 50s, I'm focused on investments for retirement. I've heard of people generating substantial passive income, like someone who earned $650K in under a year on a podcast. What's the strategy for such returns?
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
Opting for an inves-tment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 85% since 2023
Zareen Grace Church has always been on the top of my list. She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend her if you want excellent collaboration.
I like the recommendation to use the purchase price of the home in the annual net worth statement and having a separate tracker for liquid net worth. This is a good way to document how a house isn't as liquid as other assets and you may not be able to sell it for what it seems to be worth. It's also an asset you're actively using to live as opposed to an investment that is producing additional money for you. I like the mindset with your 20's that the goal should be to build discipline and avoid making the big bad decisions. Starting out is hard. I think if you can finish step 4 of the FOO in your 20s, you're doing well. I would also add that your 20's should be about building valuable skills and starting to build your career. Because that's where you're going to have the biggest return and will set yourself up for success later in life.
I've never actually done a net worth assessment. At age 30, with my wife, we're almost to 500k, currently sitting at 440k. Im so grateful and blessed for my life, and thank God for making me into the man I am today. My family has given me happiness and encouragement, and channels like this keep me in line. Thank you, Money Guys!
Just filled out my Net Worth statement yesterday! Last year was my first year tracking it on the free tool. This year I bought the full tool with the dashboard. It's great to see those numbers and lines going up!
At the end of 2024, at age 23, I had a liquid net worth around $73.8k. A decent chunk of that is cash (emergency fund and a sinking fund for large purchases), but my retirement accounts are around $31k. I'm very lucky to have parents who saved for my college. I was able to graduate debt free, and my parents gave me one of their cars. No student debt and no car loan were a huge leg up for me. I was able to build my emergency fund pretty quickly, and immediately after that I went from just getting the employer match to investing 25%. I'm also glad I discovered The Dave Ramsey Show in high school and The Money Guy Show in college, so I knew how to manage my money once I got out into the world.
I’m in the same boat. Don’t let jealous people whose parents didn’t love them or weren’t smart enough to invest in their children’s futures discount your ability to carry on the generational wealth. It’s all about financial literacy and discipline, for example, if the world started with everyone having $1M, 80% of people would blow it all in the first year anyways. Be proud of you are respecting your parents’ gift to you
My wife and I had a net worth of -354,000 at age 26 due to student loans. Now at age 39, we have a net worth of 3.4 million, 1.5 million being in investment accounts, and the rest in real estate (home and short term rentals). We are following the FOO.
Great show Money Guy team, always looking forward to the NW show! The new calculation vs Fidelity's was a great addition. But I was disappointed that the show didn't do the NW broken out by the early, mid, and late age for each decade like how it was in the 2024 show. That was super exciting to see, so hopefully it'll make a return for next year.
My wife and I just crossed $100k NW at the beginning of December, with around 75% in our Roth IRAs and 401ks. We will both be turning 25 this year, can't wait to see what 2025 has in store for us!
@@yuanxiaoxu5754 not a “huge” return.. Compounding at the average 8-10% return will take my networth to 2M+ in 6-7 years. Add contributions to it and reaching 3M isn’t difficult.. not easy but not difficult either.. I am invested in aggressive growth etfs like VUG which is higher risk-reward than VOO.
I am 26 years old. Thanks to your help I ended last year with 80k NW and am now just shy of 240k NW. Your advice on increasing income and savings rates helped a lot.
The market has also helped a ton. Will be interesting to see how it performs this year. I just started putting extra cash in treasuries because how long can we keep making new highs....
Been saving for 26 yrs. Have 403b, a Roth and IRAs. Enterd 2024 with excitement to start the wealth stacking years of my career with only debt being approx $55k on my home (mortgage life policy). Welcome April and my first colonoscopy at 46 yrs old. Received the devastating diagnosis if stage 4 rectal cancer with mets. Unable to work by basically being medically retired and placed on SSDI. Son began college in Fall of 2024. Wife laid off from job in September 2024. Thank God for our 6 month emergency fund that will easily stretch to 12 months by reducing our spending. Sons college fund was saved separately. Now we continue to live within our means and pray the value of my retirement accounts continue to expand and grow significantly. Instead of planning a great retirement with my wife i simply want to ensure my wife and son are financially secure when im gone.
Unfortunately, not all of us were financially literate early. I was 35 when I finally educated myself and started taking steps. I went from $176,000 in debt with zero savings or retirement to now, 2 years later, fully debt-free and over $1000,000 net worth. I know that doesn't SOUND like a lot, but I'm incredibly proud of it. Now I'm fast-tracking my wealth building (investing $400,000 annually) and don't owe a dime to anyone. It's a good feeling!
4 years ago, I was living paycheck to paycheck, working 40 hours a week. I was a high school dropout with a GED and had a 489 credit score, along with an eviction, repossession, and collections. I got into real estate but encountered unqualified clients who couldn't qualify for a mortgage due to their credit. I found this home-based business here on TH-cam, and it just made sense.
Elizabeth Regina Nelson has really set the standard for others to follow, we love her here in the Uk 🇬🇧 as she has been really helpful and changed lots of life's.
Happy New Year, Money Guy family and mutants! 🎉 Celebrating one year since I've discovered the Money Guys and this community. Ironically enough, I actually found this channel with last year's "Net Worth by Age". Thank you for all that you do!
My wife and I crossed the $250k net worth mark a few months ago. Both in our early 30's with two young kids. Not up to 25% contributions yet but it's the goal!
No one to share with besides my wife ofc, but we are 22 & 23. Net worth : $80k FOO: Step 6 we will be upping our contributions to max our TSP accounts in 3-4 months. Goals for 2025: Cross $150K Net worth should be doable as we will max 2 TSPs and both Roth IRAs. Start saving up a down payment for a home. We are both military and move often so we are hesitant on buying until we have at least 30-40% down and when we are freshly moved so that way we will at least be in the home for around 4 years. This is our first year doing being around the money guy show and our first Net Worth statement and can’t wait to continue doing it our whole lives!
I’m 25 and can guiltily but gratefully proclaim myself as a trust fund baby. Ironically, I wasn’t taught an ounce of finances , only from the internet. I have a NW of 410K and gross income of 100K as a civil engineer in one of the lowest taxed states. I never take it for granted and remind myself everyday how privileged I am. I save about 39% of my gross income, and about 50% of my take-home (before 401K contributions)
We did not start investing until our 30's, so we started late. We also bought our house in our 30's. We didn't get really serious about money until our 40's. We are now in our late 50's and, not including our home equity, have more than the recommended amount for our age. We live in one of the most expensive areas (Bay Area) and don't have the high salaries that are common here, but we live within our means. It can be done people! Please talk to your kids about money. Our parents didn't and did not invest, so we figured it out ourselves but wish that we had started earlier.
6:53 The methodology being used to determine how much is needed for retirement that was shared here assumes you're getting social security which replaces 30-40% of your income. So in the example talked about if a person makes $100,000 their 10x income by age 65 would be $1 million. 4% rule means a $40,000/year withdrawal. Ad that $40,000 to social security payout of $30,000 - $40,000 and that should be enough.
That's assuming social security benefits are still a thing 30 to 40 years from now, which is not likely. Idk if you notice but most well known "financial youtubers" never include ss payments in their retirement plan. I invest for retirement with the idea I won't get anything from social security when I retire. And if I do then cool, that's just extra income
@guiltyred6144 Ok. If the money guy show chooses to use another company's assessment they need to mention all the caveats and assumptions that institution made to arrive at their conclusion. This is not my assumption. And it has nothing to do with what I noticed other TH-camrs never include. I just stated a fact that wasn't mentioned in the video to make sense of the other institutions' recommendation of 10x salary at 65.
Yes they should've mention it I agree, even if just briefly. I didn't even consider the numbers were off due to the missing ss benefits until your comment popped up. My brain is already wired to not rely on those benefits, my retirement income is up to me only. I listen to the money guys because they do seem to have their viewers best interest in mind. I wouldn't trust any financial advice from someone that says " don't invest/save too much because 30% to 40% of your retirement income will be covered by social security". Where there's literally no 100% guarantee we'll be getting it.
I am sure we are not the only ones, but we don’t count our home equity or kids investments at all when calculating our net worth. Very fortunate that we just hit 2 million at age 43 and 46. My biggest takeaway during this process is not to have debt if possible ( or sacrifice to pay it off ASAP) except for a mortgage kinda thing. And please start early. We started as soon as graduating from college, at the age of 21/22. However my kids started when they were born per se. Huge difference.
Love the comment on primary residence being a "use asset." I always used the phrase "non-deployable asset" (but I guess people find all kinds of ways to deploy the equity which I wouldn't).
Wife and I recently retired at age 64. SS and teacher retirement contributions at 40%, so calculation on retirement account needs pretty close. NW at $2.2 m in Vanguard accounts. Retirement budget is $150k with lots of discretionary spending. This math really works as described.
I used to think it was just about buying stocks, but I didn’t realize there are strategies for managing risk and actually making a profit. Now I feel kinda stuck since I’m not seeing any gains in my portfolio. Do you have any recommendations on what I should consider? I’d really appreciate it!
It's not just about having money to invest in stocks; it's about knowing the right strategies for profit and managing risk. That's why working with an investment advisor is important-they have insights not available to everyone.
I totally agree with you. I started out investing on my own too and lost quite a bit. After the 2020 crash, I managed to pull out about $160k. I then invested that money with an analyst, and in just seven months, I made almost $580,000. It's amazing how having the right guidance can turn things around!
My CFA, Laurel Ann Watkins, is a renowned figure in her field. I recommend researching her name online; you’ll find all her credentials and everything you need to work with a reliable professional. With many years of experience, she is a valuable resource for anyone looking to navigate the financial market.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
I agree, if social security replaces about 40% of your income, and Fidelity's savings goal replaces 40% that gives that same 80% replacement rate that they are shooting for.
Did my net worth statement a couple days ago and it was a pleasant surprise. It's nice to know I'm on track. I'm in the messy middle but it's really not that messy with SINK life and no kids in my future.
Just turned 30. HH income is 250k (150/100). NW is 750k 335k Traditional 150k Tax Free 200k Brokerage 40k Cash 25k Home Equity If this is a green market year, we're hoping to hit 1M by the end of the year.
I think the trick with the buckets is the building part ... depending on earning situation getting the tax-free bucket big enough to make a difference is hard!
Happy new years to the money guy team and all financial mutants!! My net worth is already equal to my annual income due to my home equity so I am on track to blow it out of the water by the time I am 29 as I save and build up my financial assets!
It's not unrealistic. Don't get defeated and get started. Can I ask how old you are? If you are in your 50's and have saved nothing, I guess it's not going to happen, but if you are younger, you have some time to do something about it. Even if it is $100 a month, get started.
My rule of thumb: 28-40 years old: max out everthing literally. (401/ira) and front load your retirement (reinvest dividends). 40-65 years old: take advantage of just the employer match, nothing else and pay off house (reinvest dividends).. I am doing this at 48 w/ wife 45. I have ran investment calculator at 7% return and you should have 7.5M at 65.
Just keep swimming. Just keep swimming. Just keep swimming, swimming, swimming! About to enter 2024's data into my net worth tool and I can't wait to see progress finally! Started in 2021, saw a difference finally after 3 years of tracking net worth (including the yucky 2022) so I'm expecting things to really take off now!
I’m 26 and reached 100k in cash and investments. I have about 17k in student loans and that’s pretty much it for debt. I have 50k in my checking and hys account and the other half in a 401k from work, acorns, and Roth IRA account. I know I’m ahead yet I feel it’s not enough. I’m changing careers to teach for less pay but I hope teaching is good for me. My pay should rise as NJ teachers get paid very well the longer they stay. And their benefits are better than any company around
It's so annoying that everyone uses household income instead of individual salary. Not everyone is lucky enough to find a partner. Single people are constantly looked over trying to navigate wealth building and it's so frustrating.
I didn’t know much about investing until I got through school (thankfully as an Actuary, I had courses adjacent to this info) and felt way behind after grad school. Had near 0 net worth after undergrad. It was slightly positive after grad school. Now 3 years into my career as an Actuary (soon to be 27 years old), I have a net worth of 230,000 - Retirement Assets of 100,000 - Brokerage Assets of 30,000 (dollar cost averaging an additional 15k bonus over the next couple of years as well) - Starter down payment for future home of 20k in HYSA / 40k for a new car (new RAV4 Hybrid coming more than likely!) / 10k for extra cash for stock pile if the markets see a dip Been saving prodigiously since I got out of college and I still am not where I want to be but feel like overall I am in a solid position!
@arethouready I’d rather dollar cost average to let it even out any swings. If it were over a long time horizon that would be one thing.. but for a 2 year horizon I’m not concerned.
This is honestly terrifying. I'm perpetually worried about saving enough. The average 40 year old having 34,055 is insanely low. Ive had a Roth IRA since i was 16, investing in my Roth IRA and Roth TSP this year too. Im 20, 21 in July and have ~32k invested and own my house and Im just an E5
When factoring 20x at 60, You’re not taking into account that people will be receiving Social Security or pensions in the near future. 20x you salary would be overkill
Fidelity's calculation assumes that your investment will cover 40% of your pre-retirement income and social security benefits will cover the other 40%. So if you want to have double the amount then save and invest double the amount.
In the messy middle currently. I worked my ass off in my 20s and am well ahead of the curve for my early 30s. Sure I could stay the course and live some fat fire at 50 but that's not what we decided to do as a family. My wife went to stay at home status to raise our children and im still working. We're now not able to save much at all but we have a healthy emergency fund and a house full of love. Sure this will set us back but we chose our priorities. The FOO doesn't have to be rigid. You can move up or down as needed or, more importantly, as desired.
My wife and I are 30/31 and just did our NW statement, 851k. She transitioned to a stay at home mom last year so our savings rate has dropped and we are fully in the “messy middle”. With a decent market this year, I am hoping we cross the 1M mark this year. I recommend house hacking, I have had a negative mortgage from owning a duplex for years now. It really frees up income for savings.
@ started investing when I was an intern in college (2014) and was making $15/hr, our highest year household was 166k before my wife stopped working. Now we’re down to ~115k between rent / my income as an engineer. Savings rate has fluctuated from almost my wife’s entire income to now about 2k / month
41 years old here. Just paid off my house last month. I’m beyond excited about this year. The key for people in their 20’s or 30’s is to do something that the older you will benefit from. Ask yourself the question of how does this financial decision impact me in 5 years, 10 years? Be critical and objective. The future you will thank the younger you.
If an individual is saving 25% of gross income, wouldn’t that imply income replacement would be at most 75% if retirement spend matches pre-retirement spend? With a lower spend and lower tax rate in retirement the income replacement requirement would likely be even lower than 75%, right?
One of the things that doesn’t make sense to me is not counting your primary residence in your net worth as what it’s actually worth right now. We don’t do that with stocks. And stocks have also gone up tremendously in the past couple of years. So what’s the difference?The value of the house is what it is. If you sell it, that’s what it’s worth.
I have questions. I'm 35 years old, I work with my family in a family business. We are in a supermarket, water park, and real state. My mom passed away 3 years ago, so her side got split into 6 sons. She left us around a million each in Real state and stocks in this enterprises. During previous time I received a salary which helped me create my personal net worth around 500K, but now I received dividend and collect rent from what she left me. Should I consider that part she left me part of my net worth? I don't consider mine because it depends on my family decisions. So, I'm living life like I'm not a millionaire myself, currently making 110K a year after taxes with my wife. Investing 60K a year to achieve self millionaire. Thanks for sharing your thoughts.
For what it's worth, most places/people recommend their metrics for savings for retirement based on INCLUDING social security. I think if you take your model and add social security payments into it, you'll probably end up pretty close to what Fidelity recommends.
Let’s talk about how most people out here are struggling. I’m 31 and have a negative net worth right now of like 30k. It’s very difficult to have a good stable income, broke, debt, still single, and no house yet. Life is too damn hard. That’s the harsh reality for a lot of people today.
I'm retired at 47, went from Grace to Grace. This video here reminds me of my transformation from a nobody to good home, honest wife and 35k biweekly and a good daughter full of love❤️. thanks to Katherine Grace Maier for helping me achieve this.
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
@TDyaaa 40k but with OT about 70k. Then after 10 years I started making 100-120k. I saved an insane amount first 2 years into my 401k. Then I saved about 35% of my check on brokerage investimg and real estate. I made excellent returns on all my investment.
My income was average 40k-80k first 10 years. 100k-120k towards retirement. First 2 years i saved a ton of my check. Possibly 70% of it maxed 401k and also had cash. Then I dropped my savings rate tp about 30% and 401k to 3% and invested in stocks and real estate on my own. My returns are amazing in everything I invested in
Imagine you retire 1Jan2000 with a plan to withdraw 8%/year. Fastforward to October2002. The market is down 49% and you've taken out another 24% to live off of. Your portfolio is around 30% of the size you retired at. 2003 returned about 24%(7% of the current portfolio's value) factor your 8% and the account lost value in a year the market was up 24%. Down to 29%. 2004 returned 9%. That's less than 3% but we'll round up.. Remove your 8% and you have 24% of your original portfolio. 2005 returns 3%, or about .75%. Again, we'll round up and remove your 8%. Now you're at a staggering 17% from original portfolio. 2006 is a good year. +14%(rounded up) for a 2.5% portfolio gain and after removing the 8%, you're down to 11.5% of original portfolio. 2007 is weaksauce with a 3.5% return, or about 0.5% portfolio gain. Take the 8% out and you're down 4% of your original portfolio value. 2008 was -39%. Congratulations. Your portfolio lasted less than 8 years with an 8% withdrawal rate without even including inflation adjustments and rounding in your favor every chance I could. This isn't the only time in the past 100 years you don' even make it a decade with 8% as your initial withdrawal rate. There is a *lot* of research that's been done on withdrawl rates based on the documented past we have. Maybe you get lucky and retire 1Jan2009 and have an unprecedented bullrun over the next dozen years, but that's the exception to the norm. Please talk to a professional before you pick a withdrawal rate without doing the research on how to determine yours. 4% is likely not your best withdrawal rate, now is it likely to be as predictable as that research would have you behave aplying it to life, ut it's a great napkin plan for looking ahead 20+ years.
If you read the fine print on fidelity their chart assumes your retiring at 67 with social security and I believe they are combining both of those income streams to get to 80% income replacement. Interesting I’ve personally shot for 3x income saved by 40. If I stopped investing at 40 hypothetically (which I wouldn’t) following the “rule of 72”, I could completely stop investing and I would have 6x by 50, 12x by 60 and 24x by 70. If you can hit 3x by 40 and keep investing you will crush these stats
I always love these episodes to ground us in what we need to do to "have our great, big, beautiful tomorrow," and aspire beyond it. Since you ran your own numbers, would be nice to see it broken down by half decade too. I'm turning 35 this year and while I'm more than killing it, it would be a good place for someone to see how they're doing and redirect their course before they leave the decade.
*I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone's that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.*
The wisest thing that should be on everyone mind currently should be to invest in different streams of income that doesn't depend on government paycheck, especially with the current economic crisis around the world. This is still a time to invest in Stocks, Forex and Digital currencies.
That's awesome!!! I know nothing about investment and I'm keen on getting started.
What are your strategies?
People dismiss the importance of advisors until they are burned by their own emotions.
I remember a couple of summers ago, following my lengthy divorce, I needed a good boost to assist my business stay alive, so I looked for qualified consultants and came across someone with the highest qualifications. He has helped me raise my reserve from $275k to $850k, despite inflation.
Investing with an expert is the best strategy for beginners and busy investors, as most failures and losses in investment usually happen when you invest without proper guidance. I'm speaking from experience.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?.
I’m over here 100k in debt for student loans. Paid 50k already. 50k left to go! Wish me luck.
Good luck!
That's amazing!! You've got this!!
Probably should start investing along the way, check out the financial order of operations (FOO)
Good luck! You’re halfway there!
Good luck
Chapters:
0:00 - Intro
1:14 - What is Net Worth?
4:23 - The Money Guy's Net Worth Tool
6:07 - Net Worth by Age Updates
9:58 - 20s
17:50 - 30s
26:39 - 40s
36:05 - 50s
thanks boss
Thank you so much
You the real MVP
Thank you so much! Much appreciated!
I did my net worth statement on Tuesday and I should have a positive net worth by the middle of this year 💪🎉
Congratulations!
Keep killing it 🎉
Thats a huge step in the right direction 💪💪
Net worth truly snowballs after $100k! Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE!
My advice to everyone is this : if you want to grow big this year especially in your finances. Be willing to make investments. Saving is great but investing puts you on a pedestal where you wouldnt have to worry about savings as you do now. Thanks to my FA, my portolio is doing really great and im proud of the decisions i made last year.
Nice. People often underestimate financial advisors' importance. Over 50 years of data reveal that those who work with advisors typically earn more than those who go it alone. I've been fortunate to work with one for 13 years, resulting in a $1 million portfolio, largely from early investments in AI and other growth stocks.
I've been considering but haven't been proactive. Can you recommend your advisor? Could really use some assistance.
Lauren Christine Campbell is the CFA I work with and im just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip
Reached 1M networth at the end of 2024 at age 40. So excited to see our money continuing to grow. Let's go, mutants! We can do this thing.
Nice!
@@turbocfn39awesome! 1M alone or together with your partner ?
Awesome! I’m around 300k at 31, hoping to be where you are when I hit 40. We got this!
Hey Giovana, I’m 23 with 180k NW, you have any advice to get to 1m??
Same here but majority of it is house equity. Would like to cross the investments percentage to over $1M.
In case my situation makes anyone feel better, here is mine.
Age 24
Current net worth: -15k
Current FOO step: 1
Goal by age 30:
- Have 30k net worth
- Begin investing 20%
Overall, I am feeling very good about my situation and outlook if I follow my plan :)
You got this! Time is on your side. Best of luck, my friend!
First steps are the hardest. But you got this 👍
The 20s are hard, but you can do this! Keep up the great work!
Why are you waiting another 6 years before you save 20%?
I was about 20k in debt at 24 and now I'm 32 own my own home and have 120k in retirement and I only make 80k a year. It's def possible just stick to your guns u got this.
In 2024, I went from net worth of $-7K to $+500 thx to FOO. I'm 30 years old, and haven't made the best financial decisions, but I now feel confident that I will be able to catch up to where I need to be in the coming years!
Congrats!!
No one should ever be in the negative if they're not paying for a house / setting up a business.
Getting in debt for any other reeason is insane. Good job getting out of the hole, never go back there.
That’s phenomenal man. Keep it up
Good job on your work, congratulations!!! And keep going!!
Nice! Keep building on that base. I remember when I was 26, I was at -15k net worth. I am 35, and through small steps I am at 400k+ (25% of that is house equity).
Those wins will add up quick and next thing you know you are at 100k
I am 53 and my net worth is at 10.25x my annual salary+bonus. Earlier this year I finally reached the "financial mutant" status of net worth being 2x the millionaire next door formula. When I saw them say I need to have 13.75x income by the end of my 50's I was not sure if I was even tracking, but looking at projections, I should make that by 60 with some room to spare. Just have to stay the course for the next few years.
If Bo's excited, I'm excited!
Is Bo ever not excited though?!
It's one of the guarantees in life. Death, taxes, and Bo being so excited.
@@MetallicaRules lol! so true
I wanna be as passionate about my work as Bo is, guy looks as happy as a Labrador when he talks smart money
I crossed the $100k NW last year!
It goes much faster from there. Great job!
Hell yeah nice!
I crossed $100k NW in Canadian Dollars last year! 😂
Congrats!!
Nice job! That is awesome!
It's 2025 and Bo is soooo excited!! I've listened to you for a long time and you are always spot on! I updated my net worth worksheet (yours) over the past couple days. I did some major gifting in 2024 ($75K), which resulted in a large increase in Fed & State taxes. Despite all that, my net worth only decreased $7,808. I'm 75, retired 13.5 years and NW is now $1.4M.
Crossed the $100k NW at 24, can’t wait at get to $200k! Thanks for these helpful videos, they help more than you know! 2025 is my first year that I’ll be maxing out my HSA account all thanks to your advice 🎉 soooo excited
Social media, with info and videos like this, has really changed how people manage their finances. Now that we can see what others are doing, plus get educated, it seems like we all have a much higher net worth than people our age a couple of decades ago. I feel like we're all millionaires or on our way, if we're younger.
age 20 net worth is currently 55,000$ been watching these guys since covid, can't thank them enough.
Keep at it. You are killing it.
Dude, you're doing awesome!
32 and $900k - aiming for $1m this year!
Well pin a rose on your nose.
Amazing!
I did my first net worth statement in September of 2004, at 24 years old after completing FPU. Net worth was $153,000 with my then fiancee. Fast forward to Jan 1, 2025, my wife and I have a NW of $2.75M at 44 years old. We’ve also been a single income household for the past 8 years. Listen to these guys! It works. I’m not a doctor or anything like that (I only have a high school diploma). You can do it!
How did you grow 150k to 2.75M in 20 years ?
@@awesomekj58123 options, either:
1. They had all there initial money invested and then continued to invest about 2,500 a month for 20 years.
2.They own a house that skyrocketed in price or sold some real estate.
3. Some combination.
Hey! We're buddies! I do my annual net worth in September, too. 😊
@@awesomekj5812 It's called lying and exaggerating which unfortunately alot of the commenters do in this channel in order to one up others.
That was a great start! Hard work pays off!
My net worth is -$10k, but i just graduated nursing school at 21 with a job offer for 75k and minimal living expenses. This whole year i'm going to be getting my 76x wealth multiplier :)
Also going to community college for the prerequisites and the nursing program was only $15k, that’s amazing. It blows the Money Guy rule of keeping total tuition costs below first year salary out of the water
-10k x 76 = -76k
Just joking, congrats on graduating! You’re ahead of the curve, here’s to staying on track and a great year 🥂
@@CabatoCK 💀math moment...
Just out of college with that NW is pretty good. Keep it up.
$10k student loan debt as a new grad is phenomenal, let alone net worth including all debt.
My first year crossing over $1M!!! I just turned 48, so right on time. Money Guy certainly inspired decisions over the past ~6 years.
I reached $90k today. Thank you for all the knowledge and insights you've shared with me over the past few months. I began this journey in November 2024. Financial education is essential for over 70% of the population, as only a few are truly literate in this area.
Thanks so much Angie Chen Owens
I'm surprised that this name is being mentioned here, I stumbled upon one of her clients testimonies on CNBC news last week...
Angie Owens strategy has normalised winning trades for me also. and it's a huge milestone for me looking back to how it all started
The first time we had tried, i invested $1400 and after a week we received $4,230. That really helped us a lot to pay our bills.
I'm new at this, please how can I reach her?
I was skeptical at first until I decided to try. It’s huge returns is awesome! I can’t say much.
Just exited my 20s, and almost matched the example given at 14:20 exactly; been consistently saving at least 10k/year since 2017. Only difference is the market has already doubled the contributions inside our TSP. Your wisdom has helped affirm that we're on the right track to financial success, so thank you!
Did an updated networth statement yesterday. Husband and I crossed 100k invested last year and 300k NW! 🎉 We are 30 with two young kiddos. We have learned so much from you the past year, thank you money guys!
We have just crossed $100k invested this year, with a net worth of $222k! Four years ago, we had a negative net worth. It’s never too late to make a change and start building wealth. Never give up!
460k in my 401k and im 32! Lets go!!
Curious how this is possible, have you been maxing your contributions since you started working?
I started my job at 20 and the union is work 4 puts 25% or 13$ per hr into the plan, and I put in 16% on my own on top of that
@kelsiuss 25% comes from the company I work for and I put 15% in on top of that, started at 20
Let’s goooo! Great job
It is good when the amount is greater than the account type.
My net worth went positive this year 🥳 Didn't think it was possible. Thank you guys for your videos.
Great job 🎉
CONGRATS!
That’s huge!, being worth zero is a hell of an achievement. Keep at it
It grows like crazy! Keep at it
13:28 33m Graduated at age 22 and got a 36k salary. Don't go into education kids.
I'm being a little facetious, but it's difficult trying to save for retirement, pay the bills, pay for dates while trying to find a partner, save an emergency fund, and still pay rent. Now I'm 33 and the goal posts seem to just be getting further away.
Wife and I hit $400k NW at 29 this past year, 167k household income. Everything is just exploding now. Thank you so much for your videos and encouragement. They’ve helped set us up for so much success.
Great. How much do you invest monthly ?
I’m at 30k net worth and I’m 27!
Congratulations!
In my 50s, I'm focused on investments for retirement. I've heard of people generating substantial passive income, like someone who earned $650K in under a year on a podcast. What's the strategy for such returns?
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
Opting for an inves-tment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 85% since 2023
I've been looking to get one, but have been kind of relaxed about it. Could you recommend your advis0r? I'll be happy to use some help.
Zareen Grace Church has always been on the top of my list. She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend her if you want excellent collaboration.
FYI- a podcast is not passive. It is a job. Passive income streams require no actual labor, only monitoring.
Following you guys since my university days. Starting early is the best decision one can make!
I like the recommendation to use the purchase price of the home in the annual net worth statement and having a separate tracker for liquid net worth. This is a good way to document how a house isn't as liquid as other assets and you may not be able to sell it for what it seems to be worth. It's also an asset you're actively using to live as opposed to an investment that is producing additional money for you.
I like the mindset with your 20's that the goal should be to build discipline and avoid making the big bad decisions. Starting out is hard. I think if you can finish step 4 of the FOO in your 20s, you're doing well. I would also add that your 20's should be about building valuable skills and starting to build your career. Because that's where you're going to have the biggest return and will set yourself up for success later in life.
I've never actually done a net worth assessment. At age 30, with my wife, we're almost to 500k, currently sitting at 440k. Im so grateful and blessed for my life, and thank God for making me into the man I am today. My family has given me happiness and encouragement, and channels like this keep me in line.
Thank you, Money Guys!
Just filled out my Net Worth statement yesterday! Last year was my first year tracking it on the free tool. This year I bought the full tool with the dashboard. It's great to see those numbers and lines going up!
~750k NW, will turn 34 this year. I started investing the day I turned 18...
At the end of 2024, at age 23, I had a liquid net worth around $73.8k. A decent chunk of that is cash (emergency fund and a sinking fund for large purchases), but my retirement accounts are around $31k.
I'm very lucky to have parents who saved for my college. I was able to graduate debt free, and my parents gave me one of their cars. No student debt and no car loan were a huge leg up for me. I was able to build my emergency fund pretty quickly, and immediately after that I went from just getting the employer match to investing 25%.
I'm also glad I discovered The Dave Ramsey Show in high school and The Money Guy Show in college, so I knew how to manage my money once I got out into the world.
Bruh your parents just set you up lol
I’m in the same boat. Don’t let jealous people whose parents didn’t love them or weren’t smart enough to invest in their children’s futures discount your ability to carry on the generational wealth. It’s all about financial literacy and discipline, for example, if the world started with everyone having $1M, 80% of people would blow it all in the first year anyways. Be proud of you are respecting your parents’ gift to you
My wife and I had a net worth of -354,000 at age 26 due to student loans. Now at age 39, we have a net worth of 3.4 million, 1.5 million being in investment accounts, and the rest in real estate (home and short term rentals). We are following the FOO.
Bot
31 years old, and I have a positive net worth for the first time in my adult life
Great show Money Guy team, always looking forward to the NW show! The new calculation vs Fidelity's was a great addition.
But I was disappointed that the show didn't do the NW broken out by the early, mid, and late age for each decade like how it was in the 2024 show. That was super exciting to see, so hopefully it'll make a return for next year.
My wife and I just crossed $100k NW at the beginning of December, with around 75% in our Roth IRAs and 401ks. We will both be turning 25 this year, can't wait to see what 2025 has in store for us!
Let’s Gooo!!!! Favorite show of the year !!! So excited !! as Bo would say haha
Love watching these vids! I am 39 with 1.2M networth.
Hoping to cross 3M by my mid-40s
That's a huge return. Can I ask what you are invested in?
@@yuanxiaoxu5754 not a “huge” return.. Compounding at the average 8-10% return will take my networth to 2M+ in 6-7 years. Add contributions to it and reaching 3M isn’t difficult.. not easy but not difficult either.. I am invested in aggressive growth etfs like VUG which is higher risk-reward than VOO.
I am 26 years old. Thanks to your help I ended last year with 80k NW and am now just shy of 240k NW. Your advice on increasing income and savings rates helped a lot.
The market has also helped a ton. Will be interesting to see how it performs this year. I just started putting extra cash in treasuries because how long can we keep making new highs....
@ in my opinion we’ll be going up all of next year, even faster than we did this year.
Scammer lol.
I hit 115k net worth at the end of the year, 26M. I owe a lot of that to you guys! Thank you!!!
Been saving for 26 yrs. Have 403b, a Roth and IRAs.
Enterd 2024 with excitement to start the wealth stacking years of my career with only debt being approx $55k on my home (mortgage life policy). Welcome April and my first colonoscopy at 46 yrs old. Received the devastating diagnosis if stage 4 rectal cancer with mets. Unable to work by basically being medically retired and placed on SSDI. Son began college in Fall of 2024. Wife laid off from job in September 2024. Thank God for our 6 month emergency fund that will easily stretch to 12 months by reducing our spending. Sons college fund was saved separately.
Now we continue to live within our means and pray the value of my retirement accounts continue to expand and grow significantly. Instead of planning a great retirement with my wife i simply want to ensure my wife and son are financially secure when im gone.
I'm glad you made this video it reminds me of my transformation from a nobody to good home, $34k monthly and a good daughter full of love
My advice to everyone is that saving is great but investment is the key to be successful imagine investing $15,000 and received $472,700.
Unfortunately, not all of us were financially literate early. I was 35 when I finally educated myself and started taking steps. I went from $176,000 in debt with zero savings or retirement to now, 2 years later, fully debt-free and over $1000,000 net worth. I know that doesn't SOUND like a lot, but I'm incredibly proud of it. Now I'm fast-tracking my wealth building (investing $400,000 annually) and don't owe a dime to anyone. It's a good feeling!
Thanks to Mrs. Elizabeth Regina Nelsen's time in my life, which had a profound impact on me.
4 years ago, I was living paycheck to paycheck, working 40 hours a week. I was a high school dropout with a GED and had a 489 credit score, along with an eviction, repossession, and collections. I got into real estate but encountered unqualified clients who couldn't qualify for a mortgage due to their credit. I found this home-based business here on TH-cam, and it just made sense.
Elizabeth Regina Nelson has really set the standard for others to follow, we love her here in the Uk 🇬🇧 as she has been really helpful and changed lots of life's.
Happy New Year, Money Guy family and mutants! 🎉 Celebrating one year since I've discovered the Money Guys and this community. Ironically enough, I actually found this channel with last year's "Net Worth by Age". Thank you for all that you do!
My wife and I crossed the $250k net worth mark a few months ago. Both in our early 30's with two young kids. Not up to 25% contributions yet but it's the goal!
No one to share with besides my wife ofc, but we are 22 & 23.
Net worth : $80k
FOO: Step 6 we will be upping our contributions to max our TSP accounts in 3-4 months.
Goals for 2025: Cross $150K Net worth should be doable as we will max 2 TSPs and both Roth IRAs.
Start saving up a down payment for a home. We are both military and move often so we are hesitant on buying until we have at least 30-40% down and when we are freshly moved so that way we will at least be in the home for around 4 years.
This is our first year doing being around the money guy show and our first Net Worth statement and can’t wait to continue doing it our whole lives!
I’m 25 and can guiltily but gratefully proclaim myself as a trust fund baby. Ironically, I wasn’t taught an ounce of finances , only from the internet. I have a NW of 410K and gross income of 100K as a civil engineer in one of the lowest taxed states. I never take it for granted and remind myself everyday how privileged I am. I save about 39% of my gross income, and about 50% of my take-home (before 401K contributions)
Bo is like Ned flanders, getting excited for paying taxes on January 1st
We did not start investing until our 30's, so we started late. We also bought our house in our 30's. We didn't get really serious about money until our 40's. We are now in our late 50's and, not including our home equity, have more than the recommended amount for our age. We live in one of the most expensive areas (Bay Area) and don't have the high salaries that are common here, but we live within our means. It can be done people! Please talk to your kids about money. Our parents didn't and did not invest, so we figured it out ourselves but wish that we had started earlier.
6:53 The methodology being used to determine how much is needed for retirement that was shared here assumes you're getting social security which replaces 30-40% of your income. So in the example talked about if a person makes $100,000 their 10x income by age 65 would be $1 million. 4% rule means a $40,000/year withdrawal. Ad that $40,000 to social security payout of $30,000 - $40,000 and that should be enough.
You are correct! I was surprised they missed that detail
Exactly!
That's assuming social security benefits are still a thing 30 to 40 years from now, which is not likely.
Idk if you notice but most well known "financial youtubers" never include ss payments in their retirement plan. I invest for retirement with the idea I won't get anything from social security when I retire. And if I do then cool, that's just extra income
@guiltyred6144 Ok. If the money guy show chooses to use another company's assessment they need to mention all the caveats and assumptions that institution made to arrive at their conclusion. This is not my assumption. And it has nothing to do with what I noticed other TH-camrs never include. I just stated a fact that wasn't mentioned in the video to make sense of the other institutions' recommendation of 10x salary at 65.
Yes they should've mention it I agree, even if just briefly. I didn't even consider the numbers were off due to the missing ss benefits until your comment popped up. My brain is already wired to not rely on those benefits, my retirement income is up to me only.
I listen to the money guys because they do seem to have their viewers best interest in mind.
I wouldn't trust any financial advice from someone that says " don't invest/save too much because 30% to 40% of your retirement income will be covered by social security". Where there's literally no 100% guarantee we'll be getting it.
I am sure we are not the only ones, but we don’t count our home equity or kids investments at all when calculating our net worth. Very fortunate that we just hit 2 million at age 43 and 46. My biggest takeaway during this process is not to have debt if possible ( or sacrifice to pay it off ASAP) except for a mortgage kinda thing. And please start early. We started as soon as graduating from college, at the age of 21/22. However my kids started when they were born per se. Huge difference.
This was great🙌🏻🙌🏻💯
Love the comment on primary residence being a "use asset." I always used the phrase "non-deployable asset" (but I guess people find all kinds of ways to deploy the equity which I wouldn't).
Wife and I recently retired at age 64. SS and teacher retirement contributions at 40%, so calculation on retirement account needs pretty close. NW at $2.2 m in Vanguard accounts. Retirement budget is $150k with lots of discretionary spending. This math really works as described.
I used to think it was just about buying stocks, but I didn’t realize there are strategies for managing risk and actually making a profit. Now I feel kinda stuck since I’m not seeing any gains in my portfolio. Do you have any recommendations on what I should consider? I’d really appreciate it!
It's not just about having money to invest in stocks; it's about knowing the right strategies for profit and managing risk. That's why working with an investment advisor is important-they have insights not available to everyone.
I totally agree with you. I started out investing on my own too and lost quite a bit. After the 2020 crash, I managed to pull out about $160k. I then invested that money with an analyst, and in just seven months, I made almost $580,000. It's amazing how having the right guidance can turn things around!
This is incredible. Could you recommend who you work with? I really could use some help at this moment.
My CFA, Laurel Ann Watkins, is a renowned figure in her field. I recommend researching her name online; you’ll find all her credentials and everything you need to work with a reliable professional. With many years of experience, she is a valuable resource for anyone looking to navigate the financial market.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
Fidelity must be accounting for social security. If they are, then their calculation is pretty accurate.
I’m 22. And have a ROTH IRA and just started it
It’s very funny seeing I’m going to have $8 a month in retirement.
I agree, if social security replaces about 40% of your income, and Fidelity's savings goal replaces 40% that gives that same 80% replacement rate that they are shooting for.
Did my net worth statement a couple days ago and it was a pleasant surprise. It's nice to know I'm on track. I'm in the messy middle but it's really not that messy with SINK life and no kids in my future.
The Money Guys are truly helping our society.
$4 million at age 50 but trailing behind my peers by a significant amount. Hoping to be able to retire by age 60.
Just turned 30. HH income is 250k (150/100). NW is 750k
335k Traditional
150k Tax Free
200k Brokerage
40k Cash
25k Home Equity
If this is a green market year, we're hoping to hit 1M by the end of the year.
Gah damn. Well done
Home equity is brutal. Get some more in RE. Diversification is key and IMO the market is ready to HALF!
My favorite video series you guys make.
I think the trick with the buckets is the building part ... depending on earning situation getting the tax-free bucket big enough to make a difference is hard!
Happy new years to the money guy team and all financial mutants!! My net worth is already equal to my annual income due to my home equity so I am on track to blow it out of the water by the time I am 29 as I save and build up my financial assets!
Just got your net worth tool. Love it and the footnotes idea is such a great addition for getting the household on board and keeping them informed! 🙌
How many people stop watching once you say 20x, feeling how completely unrealistic it is?!!
It's not unrealistic. Don't get defeated and get started. Can I ask how old you are? If you are in your 50's and have saved nothing, I guess it's not going to happen, but if you are younger, you have some time to do something about it. Even if it is $100 a month, get started.
My rule of thumb:
28-40 years old: max out everthing literally. (401/ira) and front load your retirement (reinvest dividends).
40-65 years old: take advantage of just the employer match, nothing else and pay off house (reinvest dividends)..
I am doing this at 48 w/ wife 45. I have ran investment calculator at 7% return and you should have 7.5M at 65.
Just keep swimming. Just keep swimming. Just keep swimming, swimming, swimming! About to enter 2024's data into my net worth tool and I can't wait to see progress finally! Started in 2021, saw a difference finally after 3 years of tracking net worth (including the yucky 2022) so I'm expecting things to really take off now!
I’m 26 and reached 100k in cash and investments. I have about 17k in student loans and that’s pretty much it for debt. I have 50k in my checking and hys account and the other half in a 401k from work, acorns, and Roth IRA account.
I know I’m ahead yet I feel it’s not enough. I’m changing careers to teach for less pay but I hope teaching is good for me. My pay should rise as NJ teachers get paid very well the longer they stay. And their benefits are better than any company around
Love these shows. Thanks for helping me keep on the right track!
Oh boy! I'm so excited i will be able to retire by the time I'm 70! Lucky me! 🙃😭🙃
It's so annoying that everyone uses household income instead of individual salary. Not everyone is lucky enough to find a partner. Single people are constantly looked over trying to navigate wealth building and it's so frustrating.
Household income covers a single person household. It isn't a jab at single people. It covers both
lol Bo always so excited at the beginning of each video 😂
150k at 25! Been following you guys for years. Thanks and happy new year money guys :)
I didn’t know much about investing until I got through school (thankfully as an Actuary, I had courses adjacent to this info) and felt way behind after grad school. Had near 0 net worth after undergrad. It was slightly positive after grad school.
Now 3 years into my career as an Actuary (soon to be 27 years old), I have a net worth of 230,000
- Retirement Assets of 100,000
- Brokerage Assets of 30,000 (dollar cost averaging an additional 15k bonus over the next couple of years as well)
- Starter down payment for future home of 20k in HYSA / 40k for a new car (new RAV4 Hybrid coming more than likely!) / 10k for extra cash for stock pile if the markets see a dip
Been saving prodigiously since I got out of college and I still am not where I want to be but feel like overall I am in a solid position!
Dollar cost average 15k over a couple years? While having hysa of more than that? Just get that 15k in the market working.
@arethouready I’d rather dollar cost average to let it even out any swings. If it were over a long time horizon that would be one thing.. but for a 2 year horizon I’m not concerned.
This is honestly terrifying. I'm perpetually worried about saving enough. The average 40 year old having 34,055 is insanely low. Ive had a Roth IRA since i was 16, investing in my Roth IRA and Roth TSP this year too. Im 20, 21 in July and have ~32k invested and own my house and Im just an E5
When factoring 20x at 60, You’re not taking into account that people will be receiving Social Security or pensions in the near future. 20x you salary would be overkill
Fidelity's calculation assumes that your investment will cover 40% of your pre-retirement income and social security benefits will cover the other 40%. So if you want to have double the amount then save and invest double the amount.
In the messy middle currently. I worked my ass off in my 20s and am well ahead of the curve for my early 30s. Sure I could stay the course and live some fat fire at 50 but that's not what we decided to do as a family. My wife went to stay at home status to raise our children and im still working. We're now not able to save much at all but we have a healthy emergency fund and a house full of love. Sure this will set us back but we chose our priorities. The FOO doesn't have to be rigid. You can move up or down as needed or, more importantly, as desired.
My wife and I are 30/31 and just did our NW statement, 851k. She transitioned to a stay at home mom last year so our savings rate has dropped and we are fully in the “messy middle”. With a decent market this year, I am hoping we cross the 1M mark this year. I recommend house hacking, I have had a negative mortgage from owning a duplex for years now. It really frees up income for savings.
Well done! What’s been your income throughout the years? How much are you investing monthly?
@ started investing when I was an intern in college (2014) and was making $15/hr, our highest year household was 166k before my wife stopped working. Now we’re down to ~115k between rent / my income as an engineer. Savings rate has fluctuated from almost my wife’s entire income to now about 2k / month
@@rickymaki2336well done. Keep going!
16:10
Don’t worry about where your peers are. That’s not going to help you decide how you stack up to your goals and what next steps you need to take
41 years old here. Just paid off my house last month. I’m beyond excited about this year. The key for people in their 20’s or 30’s is to do something that the older you will benefit from. Ask yourself the question of how does this financial decision impact me in 5 years, 10 years? Be critical and objective. The future you will thank the younger you.
If an individual is saving 25% of gross income, wouldn’t that imply income replacement would be at most 75% if retirement spend matches pre-retirement spend?
With a lower spend and lower tax rate in retirement the income replacement requirement would likely be even lower than 75%, right?
Also, while working you were paying into social security and medicare.
And a lot of people will have mortgages paid off by retirement
27 and 27K NW this year! 🎉
Thank you guys for teaching us what our education system does not. So valuable!!!
You should do an episode on if you know you’ll have to take care of your parents financially
One of the things that doesn’t make sense to me is not counting your primary residence in your net worth as what it’s actually worth right now. We don’t do that with stocks. And stocks have also gone up tremendously in the past couple of years. So what’s the difference?The value of the house is what it is. If you sell it, that’s what it’s worth.
I have questions. I'm 35 years old, I work with my family in a family business. We are in a supermarket, water park, and real state. My mom passed away 3 years ago, so her side got split into 6 sons. She left us around a million each in Real state and stocks in this enterprises. During previous time I received a salary which helped me create my personal net worth around 500K, but now I received dividend and collect rent from what she left me. Should I consider that part she left me part of my net worth?
I don't consider mine because it depends on my family decisions. So, I'm living life like I'm not a millionaire myself, currently making 110K a year after taxes with my wife. Investing 60K a year to achieve self millionaire. Thanks for sharing your thoughts.
For what it's worth, most places/people recommend their metrics for savings for retirement based on INCLUDING social security. I think if you take your model and add social security payments into it, you'll probably end up pretty close to what Fidelity recommends.
What are acceptable fees in a retirement account?
Let’s talk about how most people out here are struggling. I’m 31 and have a negative net worth right now of like 30k. It’s very difficult to have a good stable income, broke, debt, still single, and no house yet. Life is too damn hard. That’s the harsh reality for a lot of people today.
I'm retired at 47, went from Grace to Grace. This video here reminds me of my transformation from a nobody to good home, honest wife and 35k biweekly and a good daughter full of love❤️. thanks to Katherine Grace Maier for helping me achieve this.
I'm surprised that you just mentioned and recommended Katherine Maier, I met her at a conference in 2018 and we have been working together ever since.
The very first time we tried, we invested $2000 and after a week, we received $9500. That really helped us a lot to pay up our bills.
I'm new at this, please how can I reach her?
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
she's mostly on Instagrams, using the user name
7.7M NW at 46. I started at age 30 too.
Well done. What’s been your average income through the years? How much are you investing monthly ?
@TDyaaa 40k but with OT about 70k. Then after 10 years I started making 100-120k. I saved an insane amount first 2 years into my 401k. Then I saved about 35% of my check on brokerage investimg and real estate. I made excellent returns on all my investment.
My income was average 40k-80k first 10 years. 100k-120k towards retirement. First 2 years i saved a ton of my check. Possibly 70% of it maxed 401k and also had cash. Then I dropped my savings rate tp about 30% and 401k to 3% and invested in stocks and real estate on my own. My returns are amazing in everything I invested in
Every financial adviser preaches you can average 8-10% in the S&P over 30-40 years, but then wants you to live on 4% 🤦🏻♂️
Tell me you haven't read the study on the 4% rule without telling me you haven't read the study on the 4% rule.
Imagine you retire 1Jan2000 with a plan to withdraw 8%/year. Fastforward to October2002. The market is down 49% and you've taken out another 24% to live off of.
Your portfolio is around 30% of the size you retired at. 2003 returned about 24%(7% of the current portfolio's value) factor your 8% and the account lost value in a year the market was up 24%. Down to 29%. 2004 returned 9%. That's less than 3% but we'll round up.. Remove your 8% and you have 24% of your original portfolio. 2005 returns 3%, or about .75%. Again, we'll round up and remove your 8%. Now you're at a staggering 17% from original portfolio. 2006 is a good year. +14%(rounded up) for a 2.5% portfolio gain and after removing the 8%, you're down to 11.5% of original portfolio. 2007 is weaksauce with a 3.5% return, or about 0.5% portfolio gain. Take the 8% out and you're down 4% of your original portfolio value. 2008 was -39%. Congratulations. Your portfolio lasted less than 8 years with an 8% withdrawal rate without even including inflation adjustments and rounding in your favor every chance I could. This isn't the only time in the past 100 years you don' even make it a decade with 8% as your initial withdrawal rate. There is a *lot* of research that's been done on withdrawl rates based on the documented past we have.
Maybe you get lucky and retire 1Jan2009 and have an unprecedented bullrun over the next dozen years, but that's the exception to the norm. Please talk to a professional before you pick a withdrawal rate without doing the research on how to determine yours.
4% is likely not your best withdrawal rate, now is it likely to be as predictable as that research would have you behave aplying it to life, ut it's a great napkin plan for looking ahead 20+ years.
Net worth is Assets- Liabilities = Net Worth. My greatest assets are in real estate
Team, please address a military pension that starts in your early 40’s? How does that factor in?
TY and Happy New Year🎉
If you read the fine print on fidelity their chart assumes your retiring at 67 with social security and I believe they are combining both of those income streams to get to 80% income replacement.
Interesting I’ve personally shot for 3x income saved by 40. If I stopped investing at 40 hypothetically (which I wouldn’t) following the “rule of 72”, I could completely stop investing and I would have 6x by 50, 12x by 60 and 24x by 70.
If you can hit 3x by 40 and keep investing you will crush these stats
I always love these episodes to ground us in what we need to do to "have our great, big, beautiful tomorrow," and aspire beyond it. Since you ran your own numbers, would be nice to see it broken down by half decade too. I'm turning 35 this year and while I'm more than killing it, it would be a good place for someone to see how they're doing and redirect their course before they leave the decade.
24 years old with $130k net worth. Life is good