Download the spreadsheet here: mappedoutmoney.com/wealthcalc 0:00 - Intro 0:11 - #1 Key To Building Wealth 1:00 - Problem With Traditional Focus 3:10 - Calculating F.I. Number 7:25 - Example Investment Portfolio 8:55 - Calculating Monthly Contributions 9:55 - Mapping Out Yearly Contributions 13:30 - My Plan Overview
This was a longer video but I liked seeing your perspective. Seeing how others manage their risks in their investments is a good way to learn more about my own risk tolerance. Thank you!
Love this video and thanks so much for the spreadsheet! Will there be another video that explains the other tabs? If not, two questions, please and thanks!: 1. On the Input sheet, Wealth Building column, should that include pre- and post-tax contributions? (Ex. 401k and brokerage) 2. On the Returns sheet, do you have advice for how to calculate or estimate total contributions? For some of us, we've been investing for years and would have no idea what this number would be.
When you landed on the $12,500 per month amount, was that based on 2022 dollars or did you use an estimated inflation rate to calculate dollars in your expected year of retirement?
Good question. So it's all based on 2022 dollars. My assumption for this video is that my investments will return 6% PLUS inflation. Whatever inflation happens to be. That means any given year, I might have an actual return of 9% (6% plus 3% inflation). This also means that by the time I'm 60, I'll likely have more than $5M and likely be living off something like $15k/month or $20k/month. But it will FEEL like $12,500 feels in 2022. Which as you might guess, is why I update this quarterly and make changes as I go. Does that make sense?
Awesome video! Apology if I missed it in the video, how do we calculate our current RE portfolio value? Is it how much payment we've made? Or is it the total value of the property. Currently how I input it is to include mortgage payment into monthly cashflow and calculate current portfolio, is that correct way to use it?
where were you when I was 20?... ok silly question if i'm 50+... love the spreadsheet use and projecting then working backwards to 'reality'. Also the concept of quarterly meetings with yourself to review and adjust. very simply explained and laid our - great video
Love the video, great advice! What I don't understand is how someone is supposed to acquire a $750,000 rental property in the first place to start making money off of real estate? Assets buy more assets but I guess I just don't know where to begin with even low-value real estate. How am I supposed to make significant contributions to an index fund/ETF and still have money for buying real estate? Seems like a lot!
I wish I had come across this stuff in my 20’s. Unless I get a large inheritance I have pretty much no chance at a comfortable retirement. Hopefully I can pass this knowledge on to my kids so they can get ahead.
I think you're right to focus on the positive of what you can do moving forward. You push forward to make the best of the time you have between now and retirement and like you said, pass it along to your kids so that each generation gets better and better.
When did "back of the envelope" become "back of the napkin"? Do napkins even have backs? How often are people writing on napkins? Been hearing this more and more lately and don't really know where it came from.
Everything that you said is really bright and we clearly see you know what you talk about but after a really simple calculation in my head and a few reflections, I will try to find a spreadsheet about how to be happy right now and for the future because for sure I will not own that money :D
At a time when you're not taking care of kids, not financing vehicles, and not financing your home, why on Earth would anybody need $150K/year in income? At least 2/3 of that should be donated
First off, cost of living in different cities are wildly different. And there are some cities where this would be considered middle class living. But to answer you directly there’s lots of situations like ours where we are planning to need to continue to help kids and family members with special needs and ongoing expensive medical conditions. Don’t be so quick to assume that all retirees are not needing to continue helping other family members. You don’t always know the details of people’s situations.
@@mappedoutmoneyto be fair, I certainly wasn't factoring in a situation like that because they're pretty rare, and also because the reason you gave in the video was "big ambitions." I will definitely say that's righteous and very noble of you. I do still have skepticism that you all would need quite so much money. I certainly know that cost of living varies wildly, but I'm from Southern California and have lived in both the Palm Springs area as well as LA. There's no major city where that's a middle class living. The median household income in LA or NYC is around $90K or so, and that's pre tax, vs your goal of $150K post tax. And those are people who do still pay rent/mortgage as well as multiple vehicles in most cases and quite often with kids. $150K post tax with most large expenses paid for is an upper class life. Even in San Francisco, which is less expensive to live in on average than LA or San Diego, the median household income is $137K pre tax. It's your life and certainly your decisions, but there are an awful lot of suffering people in the world to be living so large. And yeah, you won't be able to make as much of an impact as Bill Gates or Jeff Bezos, but you can feed and house a lot of people and cure a lot of diseases with $100K a year, and you can usually live pretty comfortably on $50K in a whole lot of places. I do appreciate the content and hope not to upset you. I just feel it's the responsible thing for humanity to point out. Myself, I overextended in my 20s like an idiot and am now living modestly and paying off debt to save for retirement and hope to get back to more charitable giving once I'm debt free again.
@@mappedoutmoneyinteresting. Well, I'll post a much shorter reply this time: I didn't realize that was your situation because it's pretty rare, and because you mentioned having "big ambitions", but I think it's noble and righteous that you plan on taking care of family that way. Good on you. But having lived in the Palm Springs Area, Los Angeles, Phoenix, and now the Denver area, I can tell you that's far more than middle class. The median household income of places like LA, NYC, etc are around $90k/year and that's for families that generally still pay for kids, car loans and mortgages - and that's before being taxed and before saving/investing for retirement. $150k/year post-tax is a wealthy income. But I recognize it's your money so you do you. I just disagree with the general lack of charity in this country and thought it should be pointed out. Take care.
Calculation of FI number has intrinsic assumption about time horizon, correct? 30 years or something. Seems fine based on your example, but may not apply for all time horizons. Have watched your videos on and off for a bit. You're a bright dude. RE investing for rentals is so unethical in my mind, especially with SFH. Wish it hadn't become so ubiquitous. It's parasitic. Financial independence via suppression of other people's life and financial opportunities.
![⭐️( ลอยกระทง 2024 ) Ver. แดนซ์ Remix BY [ ดีเจกิต รีมิกซ์ ]](http://i.ytimg.com/vi/rMWOLhgXUHc/mqdefault.jpg)
Download the spreadsheet here: mappedoutmoney.com/wealthcalc
0:00 - Intro
0:11 - #1 Key To Building Wealth
1:00 - Problem With Traditional Focus
3:10 - Calculating F.I. Number
7:25 - Example Investment Portfolio
8:55 - Calculating Monthly Contributions
9:55 - Mapping Out Yearly Contributions
13:30 - My Plan Overview
Spreadsheet game is strong with this one🐐
haha, thanks y'all! Love me a good spreadsheet
This is life-changing! I've never thought about ramping up savings and tried (and failed) to save up the average instead. Thank you!
This was a longer video but I liked seeing your perspective. Seeing how others manage their risks in their investments is a good way to learn more about my own risk tolerance. Thank you!
Thanks Robert! Appreciate you watching and glad you enjoyed the perspective.
This was great! Loving the FI content and your practical map to getting there.
Thanks Nakita! Glad you enjoyed the video.
Love this video and thanks so much for the spreadsheet! Will there be another video that explains the other tabs?
If not, two questions, please and thanks!:
1. On the Input sheet, Wealth Building column, should that include pre- and post-tax contributions? (Ex. 401k and brokerage)
2. On the Returns sheet, do you have advice for how to calculate or estimate total contributions? For some of us, we've been investing for years and would have no idea what this number would be.
Thanks for the video and spreadsheet. $12,500 per month is a big number!
Thanks for watching Ryan, I appreciate it. Hope the spreadsheet helps!
When you landed on the $12,500 per month amount, was that based on 2022 dollars or did you use an estimated inflation rate to calculate dollars in your expected year of retirement?
Good question. So it's all based on 2022 dollars. My assumption for this video is that my investments will return 6% PLUS inflation. Whatever inflation happens to be.
That means any given year, I might have an actual return of 9% (6% plus 3% inflation). This also means that by the time I'm 60, I'll likely have more than $5M and likely be living off something like $15k/month or $20k/month. But it will FEEL like $12,500 feels in 2022.
Which as you might guess, is why I update this quarterly and make changes as I go.
Does that make sense?
Awesome video! Apology if I missed it in the video, how do we calculate our current RE portfolio value? Is it how much payment we've made? Or is it the total value of the property.
Currently how I input it is to include mortgage payment into monthly cashflow and calculate current portfolio, is that correct way to use it?
where were you when I was 20?... ok silly question if i'm 50+... love the spreadsheet use and projecting then working backwards to 'reality'. Also the concept of quarterly meetings with yourself to review and adjust. very simply explained and laid our - great video
haha, thanks John! Wish I could've been there when you were 20! But glad you're here now. Really appreciate you watching.
Wow. So much value in this video! This is what mapped out money really looks like 🙂 Thanks Nick!
Haha thanks Devin! Mapping it out is exactly right :)
Thanks Nick & Hanna! This is a really helpful video. Looking forward to checking out my numbers with the spreadsheet!
Thanks Tammy! Glad you enjoyed the video. Hope the spreadsheet is helpful!
This is really high-quality content
Love the video, great advice! What I don't understand is how someone is supposed to acquire a $750,000 rental property in the first place to start making money off of real estate? Assets buy more assets but I guess I just don't know where to begin with even low-value real estate. How am I supposed to make significant contributions to an index fund/ETF and still have money for buying real estate? Seems like a lot!
I was left with many questions as well. Most 40 year old aren't even earning 6k a month let alone saving that much
I wish I had come across this stuff in my 20’s. Unless I get a large inheritance I have pretty much no chance at a comfortable retirement. Hopefully I can pass this knowledge on to my kids so they can get ahead.
I think you're right to focus on the positive of what you can do moving forward. You push forward to make the best of the time you have between now and retirement and like you said, pass it along to your kids so that each generation gets better and better.
@@mappedoutmoney my only shot is building my business and maybe be lucky enough to sell it for $5 mil when the time comes.
@@liers99 same boat. At least we own businesses with growth potential!
When did "back of the envelope" become "back of the napkin"? Do napkins even have backs? How often are people writing on napkins?
Been hearing this more and more lately and don't really know where it came from.
Appreciate the breakdown!
Thanks Jake! Appreciate you stopping by.
Everything that you said is really bright and we clearly see you know what you talk about but after a really simple calculation in my head and a few reflections, I will try to find a spreadsheet about how to be happy right now and for the future because for sure I will not own that money :D
Totally get that Samuel! Money is definitely not the end all be all. I do appreciate you watching and wish you all the best.
Very reassuring! Thanks!
Wow, this is amazing.
At a time when you're not taking care of kids, not financing vehicles, and not financing your home, why on Earth would anybody need $150K/year in income? At least 2/3 of that should be donated
First off, cost of living in different cities are wildly different. And there are some cities where this would be considered middle class living.
But to answer you directly there’s lots of situations like ours where we are planning to need to continue to help kids and family members with special needs and ongoing expensive medical conditions. Don’t be so quick to assume that all retirees are not needing to continue helping other family members. You don’t always know the details of people’s situations.
@@mappedoutmoneyto be fair, I certainly wasn't factoring in a situation like that because they're pretty rare, and also because the reason you gave in the video was "big ambitions." I will definitely say that's righteous and very noble of you.
I do still have skepticism that you all would need quite so much money. I certainly know that cost of living varies wildly, but I'm from Southern California and have lived in both the Palm Springs area as well as LA. There's no major city where that's a middle class living. The median household income in LA or NYC is around $90K or so, and that's pre tax, vs your goal of $150K post tax. And those are people who do still pay rent/mortgage as well as multiple vehicles in most cases and quite often with kids.
$150K post tax with most large expenses paid for is an upper class life. Even in San Francisco, which is less expensive to live in on average than LA or San Diego, the median household income is $137K pre tax.
It's your life and certainly your decisions, but there are an awful lot of suffering people in the world to be living so large. And yeah, you won't be able to make as much of an impact as Bill Gates or Jeff Bezos, but you can feed and house a lot of people and cure a lot of diseases with $100K a year, and you can usually live pretty comfortably on $50K in a whole lot of places.
I do appreciate the content and hope not to upset you. I just feel it's the responsible thing for humanity to point out.
Myself, I overextended in my 20s like an idiot and am now living modestly and paying off debt to save for retirement and hope to get back to more charitable giving once I'm debt free again.
@@mappedoutmoneydid you delete my response?
@@isaiahayers1550 Nope I didn’t. I didn’t ever receive a reply.
@@mappedoutmoneyinteresting. Well, I'll post a much shorter reply this time:
I didn't realize that was your situation because it's pretty rare, and because you mentioned having "big ambitions", but I think it's noble and righteous that you plan on taking care of family that way. Good on you.
But having lived in the Palm Springs Area, Los Angeles, Phoenix, and now the Denver area, I can tell you that's far more than middle class. The median household income of places like LA, NYC, etc are around $90k/year and that's for families that generally still pay for kids, car loans and mortgages - and that's before being taxed and before saving/investing for retirement. $150k/year post-tax is a wealthy income.
But I recognize it's your money so you do you. I just disagree with the general lack of charity in this country and thought it should be pointed out.
Take care.
If that is your real birth date your numerology is wealth, intelligence, and communication.
Well thanks!
Hi
You can make so much more with rental real estate.
That's part of my plan! We close on our first property next week :)
Calculation of FI number has intrinsic assumption about time horizon, correct? 30 years or something. Seems fine based on your example, but may not apply for all time horizons.
Have watched your videos on and off for a bit. You're a bright dude. RE investing for rentals is so unethical in my mind, especially with SFH. Wish it hadn't become so ubiquitous. It's parasitic. Financial independence via suppression of other people's life and financial opportunities.