Planning to retire in 20 years? With rising inflation, the cost to maintain your current lifestyle could reach $2.6 million or more. The combination of high inflation, lower projected stock market returns, and stagnant wages makes securing an early retirement more challenging than ever
There are numerous strategies to achieve high yields during a financial crisis, but it is crucial to undertake such trades with the guidance and supervision of a professional financial advisor to ensure informed decision-making and risk management.
That's true. I've been assisted by a financial advisor for almost a year now. I started with less than $200K, and I'm just $19,000 short of half a million in profit.
My advisor is Diana Casteel Lynch , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Agreed, I've always delegated my excesses to an advisor, since suffering major portfolio loss early 2020, amid covid outbreak. I'm now semi-retired and only work 7.5 hours a week, with barely 25% short of my $1m retirement goal after subsequent investments to date.
Thanks for sharing your experience! I've been managing my portfolio myself, but it's not working out. Do you have any recommendations for a good investment advisor? I could really use some help
My CFA, Joseph Nick Cahill, is a renowned figure in his field. I recommend researching his name online; you'll find all his credentials and everything you need to work with a reliable professional. With many years of experience, he is a valuable resource for anyone looking to navigate the financial market.
I'm retired now, and I don't have a million dollars. But I'm doing just fine, and my money will last me at least 20 years and probably more. I don't know whether I'll even be around for that! But I have no debt, none at all, not even mortgage. I track my expenses carefully each month, and that helps me see where things are going. I don't worry about spending from my nest egg because I have no children and no one to leave it to. I plan to spend it on myself and my needs because no one else is going to support me financially. It all depends on your own circumstances.
I'm right with you! I'm 52, a month into a layoff and I believe I've decided to try retirement. I've tracked my expenses for the last 10 years and I've calculated that as long as my investments can do no less than 5% on average, I should be fine. To ensure that I can survive the gap until age 59 1/2, I'll try for some kind of low stress job next year that won't pay anywhere near what I was making at the time of the layoff. Plus, it will help to keep me busy. I just want to take a break from the work place for the remainder of 2023.
@@KayKay0314 Fifty-two is pretty young! I could not have retired at that point. My major contributions to my retirement were made from 52 to 62, and it made a big difference for me. I also did not take Social Security benefits until age 68.
This is my fifth year after retirement. I’ve been following the 4% rule thing I saw on a TH-cam channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get worried.
Amazingly, you were able to save that much during your active years. Not a lot of people can save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital, so you are not left devastated during a market crash or recovery. To simplify the process, you could allocate your resources with the help of a financial advisor.
@@KheroFrei Yeah, I’m also closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who have been investing for many years.
@@KennithsAbadies Hey, this caught my interest. I worry that I have a couple more months before retirement, and I want to switch to using a financial advisor, but I don’t know how to find one.
@@DarnellsStevenses Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with MARGARET MOLLI ALVEY for the last five years or so, and her returns have been pretty amazing.
@@KennithsAbadies Thank you for this tip. it was easy to find your coach. Did my due diligence on her. She seems very proficient and I'm grateful for your guidance.
Use the 4% Rule. According to the Trinity University research on retirement income. • Take 4% of your nestegg to fund each year of retirement • Then adjust upward by the rate of inflation. • To reverse calculate how much you will need to replace your income in retirement multiply your annual expenses by 25. Keep reading on this subject. It’s very important as you plan for retirement
Use the dividend rule and keep most of your money… a lot of companies and etfs pay a dividend use the dividend income to fund your retirement and keep most of your principal 😊😊😊
the problem with the 4% rule is its been proven to be WAY to aggressive even by the guy who invented it. The dude that invented it said more realistically you could do 5-6% and be perfectly safe. Now my opinion on it is you want enough to be able to live on 2-3% so that you are never breaking even at 90 which is the present formula, where you end life with $0 and leave nothing. If u want to leave generational wealth all that you create needs to be left and than some to the next generation so they can start from where you left off. Meaning if u have 5mil that you created and instead of living off $250k per year and you can enjoy 100k that money will live forever and continue to grow. If you leave your kids 5mil+ and you raised them well with strong understanding of money they will than grow that to 70-80+ and so on and so forth
4% rule was debunked. 2.4% is a what most legitimate advisors are recommending now. Ramsey has no licenses or certifications. he's just a financial entertainer.
Lol. If someone did that starting in 1999, then would have run out of money in 2010 or so. Assuming taking out 8% of the original amount. Even ignoring inflation. What pessimists we are!
if it isn't it's because you confuse NEEDS vs. WANTS. You don't NEED a new car every two years, a four bedroom home,[ when the family gets together put them up at Howard Johnson},two cars, a boat a rv ,world vacation every year. I have about 35 k income including S>S> and I can still go visit family 2 thousand miles away every 4 years.
Dave always drops the ball on this and it drives me crazy. 10-12% is a high goal to aim for in returns, but that's another topic. It's fine to aim for that when you're WORKING AND CONTRIBUTING. But when you retire, you wouldn't have your 401k invested in only the S&P500 anymore. You would want it to involve much more fixed assets like bonds, which would drastically lower your ROR in retirement. That means you wouldn't be able to pull 10% off it it every year without touching the principal. It would be more like 3-5% off every year. That's why the optimal ROR for retirement is 4% withdrawals. 10% is based on a portfolio that is heavily S&P500-based, which is NOT recommended for retirees as it is too high risk.
You would be better off with gold and silver than bonds lol Gold is up %7.7 a year since 1950 and is break even after inflation Bonds go down guaranteed because of inflation
This is exactly how you do it. I retired last November at 60 and never had a 401k until I was 41. In 19 years I saved $1.1 million. I've averaged 14.95% each year for the last 10 years.
I was 35 before I found a "real" job with benefits including a retirement account. At 43 that job laid me off and I had a net work of less than 100k. But two years later got rehired and got to work. I turned 60 in June and just passed $1 million in net worth. I plan to double that and then retire at 67.
@23chnge Fidelity FSELX 35%, FBGRX 15%, FXAIX 25%, FSPTX 25%. 5 year avg is 14.13% and 10 yr avg is 12.85%. My money has doubled in the last 5 years. These percentages were a little higher, but the last 3 months have not been good.
*past returns are not an indicator of future performance. The last 20 years we have seen the meteoric rise of companies like Amazon and Apple. We can't assume this performance will continue. Dave's insistence on an 8% withdrawal rate is just reckless, and it infuriates me every time I hear it out of his fat mouth.
I have $1,000,000 in savings and I'm ready to retire, but I'm worried about rising inflation. Is this enough for a comfortable retirement,I’m looking at investing in stocks
Got laid-off at 36 just after covid-outbreak, and at once hired an advisor with grit to help stay afloat. I've been fortunate enough to achieve a 10x return compared to my previous efforts as a DIY investor, summing up nearly 85% ROI as of today.. My best so far!!
I've stuck with Victoria Louisa Saylor for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Yes it is. My dad and stepmom retired 3 years ago on less than a million. Like only $750k - they moved to a cheaper area, sold their old house and bought a cheaper house in cash, and have no debt at all. They live simply but they are happy. If you don't care about lavish luxury, it's enough. They are 70 years old now, retired at 67.
In my opinion this is key being completely debt free going into retirement is a big factor that it seems like I don't hear enough about in the conversation of retirement. All I ever really hear people talk about is the size of their nest egg and what dollar figure do they need to retire on without looking at the other side of the equation. Sure if I retire with a mortgage and other consumer debts then you're going to need a much bigger pile of cash going into retirement.
@@RichyLucch It doesn't matter. If you retire with a million dollar home then you better have the additional finances. If you don't, then you can't afford the house.
@@RichyLucch I specifically said they "moved to a cheaper area". They lived their whole lives in Cook County north suburbs out of Chicago which is an incredibly expensive area to live in. They never could have retired there and that's why they moved to a cheaper area (New Mexico). My point stands that without any debt, it's possible to retire on less than a million if you are willing to relocate. You can guess all you want about me. I personally live in a home that I paid over a million to build and that was before all the covid price hikes. Homes in my neighborhood sell for anywhere from 1.1 to 1.5 million and 2 miles up the street many homes going up are 2 million+. I am well aware of how much it costs to live where I do in Wisconsin here but I'm 40 and owe 400k on my 7 figure house which will be paid off well before my retirement. Point being get the house paid off and don't carry other debt and you will have some options for retirement.
With 750k in the right place that’s plenty of money to generate a decent income for 2 and no debt. If it’s in the market you will lose your butt. If it’s in an FIA you will be just fine. High participation, guarantees no market losses and 10% free withdraw every year. My FIA has averaged 12.7% over the last 10 years with ZERO risk. That means I did not lose anything over the last decade even when the market went down. My gains lock in and I never lose. It’s a no brainer
Sincerely, I'm genuinely moved by what you said about early retirement. And yes i equally agreed with you It's the FREEDOM from being able to make a conscious choice, each and every day, in terms of how you’re going to spend your time… I have about 40k that I am willing to invest if given the appropriate knowledge and I am highly interested in investing. My greatest concern is losing money on a bad investment. I'm open to hearing your advice on how to make sensible investments as a result.
no time to look back! avoid unnecessary spendings, you can move to wealth by increasing your investments and as far as i'm concerned, advisors are ideal reps for the job
Right, using an invt-advisor is ideal especially for near retirees and newbies that barely understand how the mkt works, my portfolio used to be up and down like a seesaw, not until I hired an advisor around March2020 amidst the lockdown. This is how I've been able to scale up tremendous 7figures in ROl, after subsequent investment as of today
bravo! thinking what stocks you have in your wheelhouse.. i've been on-and-off the mkt for 3 yrs and still cant get right, mind if I look up this person assisting you please?
My portfolio comprises of three major markets, and Mrs Marisol Cordova is the investment advisor that guides me, she's well renowned, most likely the internet is where to find out about her.
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.
Mutual funds or Index funds which is a better buy right now? just got my lump sum inheritance and would love to put my money to work, so i can earn in dividends, i'm also looking at paying mortgage where rates are not so high.
I’m currently working towards financial freedom with a focus on dividends & growth investing. Since 2014, I’ve built a portfolio made up of 30% Mutual funds , 25% Index funds, 15% STP and over 30% in digital assets, thanks to my CFA. This strategy has helped me earn $49,000 a year in dividends. Back in 2014, I only earned $21 in dividends.
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.
Someone pulled the four percent number out of their arse, and people ran with because it sounded good. It's really not an industry standard, just some BS numbers some clowns were using, and it stuck.
There is a lot of criticism regarding that conventional wisdom of 4%/yr. Many people have looked into it in depth and determined that 5% is fairly conservative and you'll probably be safe. 4%/yr is super ultra conservative.
I've decided that I am going to try to do the equivalent of RMDs starting at age 60. I may just do the mid-point life expectancy of the number for both males and females. At age 60, those numbers are 20.57 and 23.67 respectively. The mid-point of those numbers are 22.12. If I have $1 million in total in my retirement accounts, then I would divide $1 million by 22.12, which is $45,207 (4.52%). That's how much I would pull from my retirement accounts, doing my best to avoid sequence of returns risk. If that's not enough money for the year, which it likely won't be, then I might want a part-time job until enough time passes to where the RMDs are finally enough.
Its also industry accepted to be in debt and strive for an 850 credit score or else you will be broke, you do realize most financial advice is garbage right?
I’ve been saving for a long time instead of investing, and right now I only have about $516k. I'm not sure how to make it grow, considering all the inflation, into something substantial that I might use for retirement. I’m just here for ideas
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $30k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
*Marissa Lynn Babula* is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Becoming a millionaire through a Roth IRA or a 401(k) involves different strategies for maximizing profits. A Roth IRA offers tax-free withdrawals in retirement, which can be advantageous if you expect to be in a higher tax bracket later in life. On the other hand, a 401(k) provides tax-deferred growth and potential employer contributions, boosting your savings. The optimal choice depends on factors like your current and future tax situation, employer match, and investment options. Consulting a financial advisor can help tailor a strategy that aligns with your financial goals and circumstances.
Prioritizing effective personal finance management holds greater significance than the sheer amount saved, irrespective of income source. Consulting a certified financial advisor can offer tailored strategies to optimize financial results by reducing expenses and enhancing income, regardless of whether it's earned through employment or investments.
I wholeheartedly concur. At 60 years old and newly retired, my external retirement funds total around One million two hundred fifty thousand dollars.. With no debt and minimal retirement fund allocation relative to my portfolio's value over the last three years, I recognize the importance of a financial advisor. Neglecting them isn't an option; however, thorough research is vital to find a trustworthy fiduciary advisor.
I'm guided by “Christine Morrison Evans an experienced coach with extensive financial market knowledge. While you can consider other options, her strategy has yielded positive results for me. She offers valuable insights, including entry and exit points for the securities I concentrate on.
Thank you for the information. I conducted my own research and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call. Her expertise is impressive, and I'm eagerly anticipating our conversation.
I wouldn't be surprised if some portion of his portfolio beats the S&P500. But he is likely taking more risk by doing so. Small cap and mid-cap may be around 11-12% but international has been lower, so I can't imagine his entire portfolio does 11-12%. Also I'm sure he doesn't count the fees he pays against his return.
Haha exactly!!! What world can you get a reliable 12% interest!!?? That is such a ridiculous assumption and he uses it to just enhance his idea of investing and becoming this super millionaire easily. Oh just invest this much money in your 20s and get 12+% every year, for 30yrs and you will be rich lol. Right right
@@micker9830 You don't get 12% every year. Some years you get 28% and some years you'll be down 4% or whatever. The average is the average, not a guarantee. If your car averages 30 mpg, that doesn't necessarily mean you can drive 90 miles and use 3 gallons every time. It will depend on the temperature, tire pressure, acceleration, stop and go, etc. It's the same with the market. Sometimes it will be up and sometimes down. There was a fund called the Magellan fund, that a guy back in the 80's created with some primitive AI he came up with. It had a crazy return. It was a closed fund to people he knew.
Have your home and cars completely paid off. Retire to an area with a relatively low cost of living. But the best advice is to make a lot of money in the decade or so leading up to retirement. I don't know what the future holds for Social Security, but if you collect at or near the maximum now, it's pretty easy to live on it. I retired 2 1/2 years ago and haven't touched any retirement savings. In fact, we have more cash on hand now than the day I retired.
Hi Dave, New subscriber and I am sharing my story. My age is 55 and I have zero debt, 110k in the bank, 35k NVDA shares, 401k $270k, IRA 145K and 2 houses in Bay Area with zero mortgages. Just got a Mercedes SUV as my 3rd car. I started saving after marriage only after marriage but will all this be enough to retire?
Tell me about it. My 401k? Practically useless right now. I’ve got over $500k in there, but with everything going on, I’m wondering if I should just cash out and figure something else out. I’m getting closer to retirement, and the idea of relying on that fund is stressing me out.
I’m currently working towards financial freedom with a focus on dividends & growth investing. Since 2014, I’ve built a portfolio made up of 30% NVDA, 25% PLTR, 15% VOO and over 30% in digital assets alongside my employer 401k, thanks to my CFA. This strategy has helped me earn $49,000 a year in dividends. Back in 2014, I only earned $21 in dividends. I can boast of stable IRA and cash accounts and At 66, my portfolio has yielded far more than I expected for my retirement.
I've stuck with ‘’Jennifer Leigh Hickman ” for years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Time stamp 0:28, Excellent point. You don't want to BURN through your nest egg. You want to invest the nest egg, and live off the income generated by the nest egg.
Life is too complex these days for many people. Simplicity is the best. I have an aunt in Odessa TX that immigrated from Mexico many years ago and in now retired at 72. No 401k no investments of any kind other that her small house on a acre of land in the desert on social security and Medicare. Drives a ford explorer and cooks mainly at home on a 30 dollar a month cellular plan and uses an antenna to watch her spanish channels on a 75 inch HDTV my cousin gave her when he decided to get a new one. Drinks her coffee every morning on her porch and waters her plants cooks vast majority of the time and has family and friends than come over to visit and talk. Ask her and she will tell you life is great and that she is blessed. I just don't get why people who have more than her seem to struggle financially and worry so much it's just baffling.
Odessa TX -- you said it yourself. That's basically one of the lowest COL in the entire U.S. You can't just cherry pick the cheapest cities in America and then generalize to the whole country. That's literally insane. Someone lost a few b-cells when they were teaching Stats 101.
@@athens31415 Odessa the lowest cost of living??? Apparently you have never been there. 10 dollars for a breakfast taco, they have the highest gasoline prices in the state of Texas, highest rentals. It's an oil town. Do yourself a favor and use your remaining brain cell and Google property prices and see what you get for the money.
He makes it sound as if it is so easy to find a fund that will beat the S&P. The risk, which is more likely to happen, is that you will find a fund that UNDERPERFORMS the market.
@@TheFirstRealChewy Mr. Stewart; focus ALL your resources on what YOU control. Don’t let fear worry or doubt distract you. • Every generation in America for the last 100 years has had legitimate reasons to doubt and fear the future. Yet the stock market has averaged 10% annually. • You are living in the wealthiest country on the face of the earth. At the wealthiest period of human history. • I encourage and challenge you to get to your 1st million (if you desire to). • Once that milestone is reached your wealth starts snowballing at an astounding rate. • Investing is your BEST hedge against inflation.
@@TheFirstRealChewy Keep in mind that that is an AVERAGE. You can have four years of BIDENOMICs and four years of outrageous growth, and ON AVERAGE, you do well.I had a professor in college point out that you can have one foot in a fire and the other foot frozen in a bucket of ice, but ON AVERAGE, you feel fine.
I opened an ROTH IRA at the age of 27 and put the maximum amount possible for 2025. I feel foolish for letting my life fall into order so slowly. The issue at hand is how to invest the funds most profitably in order to save for retirement
You're 27 years old. It is alright. The compound interest period has begun. To build a strong foundation and reduce risk while maximizing gain, I think all investors should begin with ETFs. From there, they should diversify across a range of asset classes and continue to invest consistently and systematically
You do not need to locate the next NVIDIA to be successful in investing. Simply choose top tier ETFs and work with a financial counselor, as I did. I turned $90,000 into $53,000 in annual dividends, which is a huge accomplishment for me today
Impressive! I admit I'm scared about retirement as I turn 60 on my next birthday. I need to ensure I have enough money to survive on. How can I consult your advisor? My retirement account isn't performing well
''Aileen Gertrude Tippy'' is the licensed advisor I use. Just research the name online you will find necessary details to work with to set up an appointment
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her
10-12% is a little optimistic. I would say 7-8%. Expenses also play a huge part in this equation. High expenses and you can easily blow through this $$.
I have avg 12 and 14 % Over 20+ years. I don't bank on that. I use something lower than that for expected income, not needed income, expected. At this rate, I am going to have 4 million at 75. Retiring in my 50s and going to ride into the sunset.
The thing Dave never seems to admit is that every advisor would recommend dropping your exposure to equities more and more as you get closer to retirement age so these 12% estimates that are based on equity heavy portfolios isnt a fair expectation as you get close to 60 or retirement age whatever that is for you
He has a video or two from a couple years ago that talks about them. He generally shies away from naming them outright. He uses a couple that are actively managed, which he generally shoes away from, because of the fees. But the funds he uses earn enough to justify the management fees. Maybe search his channel for "mutual funds" or "actively managed funds".
This is financial advice and I never give financial advice: DONT LEAVE DURING THE BEAR. If you don’t want to invest…learn. If you don’t want to learn…build. If you don’t want to build observe. DO SOMETHING…other than leave. There is so much opportunity here. Take advantage!
Just because there are opportunities in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth, I'll advise you to seek the help of a professional.
Here is the advice Dave should have given, the amount does not matter nearly as much as your expenses do. So understand exactly what your expenses are and you can easily back into the number you need. A great additional strategy is to invest money outside of your 401K (After max) and build some cash up. If you plan on retiring early, this cash will give you a bridge (Money to live on) as well as show income of almost nothing which will help a ton with healthcare cost. I would also take a much more conservative approach on expected return, 5-7% average is more normal.
My wife and I are retired. Even with the 'wonderful economy, no inflationary' times (so they tell us) we have lived through the past couple of years, my investments have grown 7% overall and that is even with my wife and I withdrawing roughly $80K to live on in the past 12 months. We have lived, saved, and spent as Dave has counseled for as long as I can remember. No debt at all and we just purchased a new car - cash of course. Listen to Dave - his words carry the strength of iron.
Average returns are misleading. The market has averaged 10% sure, but what if you retire in the year the market is down 50%? You will run out of money withdrawing 10% or 8% per year. Also, beating the market is not easy, average market returns are above average actual returns for the majority of investors.
@@MrJimmy3459 the market has never gone down 50% does not mean it will never happen though. But… if that happens we all have bigger problems than retirement. 😂
The thing is that when you retire you dont run to your 401k and pull all the money out. You live off what it makes and also draw social security. It is still there. If you are in a position where you also get a pention you are living really well . Everyone's situation is different but for sure planning and saving gives you better results.
Excellent… invest in your company 401k drive a cheap car with no car payment… live in a small apartment at first… save a buy your first home … live on less then you make … 25 % of your income for housing 15% for transportation 15 % phone and utilities 25 % food and entertainment… you’ll have 20% left over to save and invest 🤗🤗🤗
EXACTLY right. The whole idea is to live off whatever "income" you have, most likely and primarily social security, and the other things like 401k or other pensions allocations or whatever are meant to be supplemental, but not primary, sources of income.
Retirement is a very nuanced thing and there is no one-size-fits-all strategy. People have different risk tolerances, pensions, no pensions, 401ks, health concerns, cost of living, debt, you name it. My advice is don't listen to idiots like Dave on the internet. Learn about finance on your own. READ. Stop listening to these click-bait short video clips.
@@roymcpherson1639 A moderate expense ratio at .38 but yes on average they both do just that. But looking at their investments I see mostly what I already own individually minus the.38%.
1.4 million is a lot, if you own your home, cars and are in good health. Should be easy to love off of if you have found out what is enough in life for you.
I have way lesser than that, I could lived in different countries for 6 months at a time, eat really well but have a fully paid house walking distance to beach, town and supermarket. I have relocate out of USA and lived in Europe. House insurance $230 a year, car insurance $350 a year, supermarket bill for 1 week $100. Health insurance$110 a month
I retired in May and so far have not had to touch my savings. SS and a 1300 a month pension. No debt. Last few years before retirement replaced roof, furnace, water heater, garage doors, carpeting. New car. Still have a kid in college but saved for her since first grade and that comes out of a 529. I'm a fairly simple person. I just go to the gym everyday and socialize with friends and like sports bars. So I don't spend much. Single. Can see where a married couple might want to travel of have a place in Florida. That obviously would cost more and would have to live off the savings. I like the peace of mind of having the savings and not worry about draining it. My moms nursing home was $8000 a month. So those places will drain you pretty quick unfortunately.
If Dave truly believed it is such a slam dunk to.double your money every 7 years then he would recommend that you all borrow on everything and throw it at the stock market . Why would you pay off a house that appreciates 3% a year when you can get a 10% return. Why pay off a 6% loan in exchange for 10% rate of return. In Dave’s world there is no sequence of return risk.
I make 35% annually on the Nasdaq?? It's possible, but then again I don't just chuck my money In and leave it, I manually place trades and dollar cost average manually, occasionally taking a short position if I'm confident. I prey on the markets repetitive nature, the nasdaq will spend days going up down up down in a range, and every time the dip happens I buy in and take 20 points profit and then wait for dip again and then bang buy another and take 20 points profit. Last couple weeks have been poor tho, its just going down, but it will be good again soon
It is called the Rule of 72 Please Use an investment calculator. For those familiar with investing concepts this is very basic knowledge. Example An Initial (one time) investment of $10,000 at 10% per year will grow to $12,100 after 2 years After 3 years = $13,310 After 5 years = $16,105 After 7 years = $19,487 Not exactly double of $10,000 but close enough. The same thing happens with $50k, $500k or $1 million. Stay Hungry
That's the approach that he took early in his career and he went bankrupt. So, no, he's not going to recommend leveraging your way to wealth. The hypothetical 3% appreciation happens independently of being encumbered by debt or not so it is a weird point to make. Paying off a 6% debt instrument returns 6%, and that is a RISK FREE investment. That is a slam dunk. The arbitrage between 10% returns and 6% interest has risk. People ignore that. Dave is not ignorant of sequence of return risk. He argues that the behavior over a lifetime of actually investing is far more important than the minutiae of rates of returns. If you don't regularly invest then you'll have no money invested to even fuss about rates of returns, sequence of returns, and all that. The act and habit of investing is far more important than the nuance of investment earnings. Sequence of return risk is an argument FOR being debt free and having a nest egg at retirement so that you're buffered.
I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement, I'm 55.
Those sound like great picks! consider financial advisory so you don’t keep switching it up, top 3 payers for the month were $OHI, $KMI, and $EDP... not bad for 350k
You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 14.3%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an advisor.
I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
I just wanna say - Jade has the most beautiful skin. I mean. It's beautiful. Beauty with brains and an attitude and the right attitude and right amount of attitude. You go, girl.
Retirement planning for high-net-worth individuals can be even more complex. These people, who have at least $1 million in cash or investable assets, have a lot to think about when it comes to planning for retirement. I still want to know how best to compound at least $10m in retirement savings.
if you’re considered a high-net-worth individual and the steps you can take to maximize this time of your life. Beyond these strategies, consider enlisting a financial advisor to tailor a retirement plan that’s right for you.
FIA!!! Forget these scammy financial advisors. You’re way better off using a FIA for guaranteed principle , high participation and guaranteed income for life. No brainer. Don’t waste money on someone you have no clue how good or bad they are with other peoples money. And the stock market guarantees nothing..
Stop saying that it's not hard to beat the S&P 500. More than 90% of fund managers don't beat the S&P 500. Put your money in index funds rather than so-called growth funds that may be the S&P a couple years but don't do it consistently
It depends entirely on where you live when you retire. In the Coastal Cities in the U.S., 1.4M is hardly anything. Cost of living is so high in those regions. Even if you own your home, you'll be shelling out 15K - 20K/year in Property Taxes alone (which is $1250-$1666 per month).
I shake my head at people like you who make statements like 1.4M is hardly anything in coastal cities. What percentage of retirees on coastal cities do you believe have $1.4 million? You can say anything you want when you do quantify things. But once things start getting quantifies and numbers start being provided I see statements like the one you made are full of sh*t. I'm serious. So I will ask..what percentage of retirees households on the coasts have $1.4million that you claim is hardly anything?
"you'll be shelling out 15K - 20K/year in Property Taxes" -- You are so clueless. I live in California and I do not know anyone who is paying property taxes in that amount. Don't ever post an ignorant comment like that again.
@@johnnastrom9400 I thought I was the only one who knew this guy was full of sh*t. We need to call out guys like this so someone who's looking for guidance don't get discouraged by a person like him who obviously knows little about money.
@@johnnastrom9400No, he's right. Property tax, on average, is 0.0132% of a home's value. $15000 to $20000 a year would equate to a $1.13M to $1.51M home. Some states like New Hampshire have no income tax but have higher property tax (0.0173%) Edit: forgot a "1" and corrected values.
Dave, PLEASE stop telling your listeners that 8% is a safe withdrawal rate. When you take sequence and volatility risk into account, you will find that 5% on an all-stock portfolio might be 'aggressive' for an average retirement. Some very long retirements would be looking at a SWR of 3% to avoid undue risk. 8% is HARMFUL advice! Please watch my podcast episode from last week addressing you on this topic. Calling those who care enough to call you out on this "bananas" won't stop our mission to help you and your listeners on this front!
@@casework781 I am serious about this topic. I think it is the most important change that Dave can make to his regular advice, and I want to help everyone avoid undue risk that can cost them their retirement.
Exactly. Heck, just going for S&P 500, or funds like VTI/FSKAX (overall US) paired with VXUS/FTIHX (overall international), often will do the trick for at least decent, consistent returns without getting "cute." For growth funds, something like VUG or QQQ could work, as long as the funds have good returns AND low expenses.
Not at all. In the Coastal Cities in the U.S., 1.4M is hardly anything. Cost of living is so high in those regions. Even if you own your home, you'll be shelling out 15K - 20K/year in Property Taxes alone (which is $1250-$1666 per month).
As an investing enthusiast, I often wonder how veteran investors get rich off dividends. I do have a good amount of capital to to invest for passive income, but my focus right now is how to gain wealth from market resurgence, I'm keen on retiring early with at least $3.5m.
I was taught well on how to save, nothing on dividends, but now I'm really ratcheting up investments with the help of a reputable advisor, realized at least $800k after subsequent investments in so far this year. I do think I have dropped a lot of stress about finances having a long term perspective about investing.
This is great! think your advisor would get on the phone with an unknown? I'm retired and don't know what to do with my money, concerned about my savings due to high inflation
There are many financial experts who excel in their profession, you just have to do your research. Personally, I employ the exemplary service of Lisa Ann Moberly, and luckily she has a web presence.
Very much appreciated, curiously inputted her name on my browser, found her site ranked top, and skimmed through her credentials no-sweat.. she actually shows a great deal of expertise.
Hey Dave, i was Dave Ramsey before you went broke in your 20's. In general, for the last 20 years international stocks have left money on the table vs USA equities. The key to all these folks being wealthy is save every dollar and dime possible while you're young and drive a Toyota or Honda vehicle until the wheels fall off. When you double your money every 7 years it becomes eye popping numbers. It's not difficult. And you can index half your money and either active manage the other half or like me, handle my own stock selection and have di e exceedingly well since starting with John Boagle and Vanguard in 1985. Actually, 7% interest rates are a good thing for savers. No risk and insured allows you the ability to take the equity risk to boost your returns. Great info man.
Saying it is not hard to beat the S&P 500 because the S&P 500 is the average is not true. Beating the S&P500 is not average because the average investor does not have the discipline to stay invested through ups and downs. Charlie Munger says 95% of people have no chance of beating the S&P 500 over any extended period of time. On top of this, saying there are mutual funds that can consistently return 10%+ is wishful thinking. Over the past 20 years, the S&P500 returned 8.19% annually. I'd love to see Ramsay actually list out what these high-quality mutual funds are that have consistently returned 10%+.
Dave has solid advice on how to live a financially sound life. Live beneath your means and save for the future and be generous to others. But his financial advice is ludicrous. There isn’t a mutual fund that outperforms the S&P 500 every year. Look it up. Mutual funds over and underperform regularly. Also, a 10% burn rate is going to deplete the portfolio very quickly. If you withdrew 10% in 2020 you probably lost 30% that year. To make up for that loss the stock market has to increase by 45% the following year plus the $100,000.00 burn for that year. 4% burn rate isn’t a made up calculation. It’s so your not 84 years old and working at Walmart. Dave has a big enough portfolio he can afford mistakes. The average person doesn’t.
When they pull from off returns from that 401k there will also be taxes. Better to work longer than need to and grow the retirement income portfolio than to not work not as long as need to. Coming up short is far worse than having more than needed.
lol I don't have even a tiny fraction of that and am very happily retired, debt free, and living a wonderful life. People put far too many expectations on their money bringing them contentment. :) And I could not afford where I lived so moved where I could make it.
I'd like to retire or work less in 5 years, and I'm curious how others split their pay, how much of it goes into savings, consumption, or investments; I earn roughly $250K per year but have nothing to show for it.
For a successful long-term strategy I recommend you seek the guidance of a broker or financial advisor, Who will advise you buy stocks with market-beating yields and shares that at least keep pace with the market for a long term.
Very brilliant idea, I was managing my portfolio by myself using TH-cam and Incurred a huge loss which made me hire an advisor. It's been 2yrs already and I have made up to $380K in returns and would pay fully for my 3rd rental property in Ohio by next month.
I have been working with *SHARON LOUISE COUNT* whose expertise in portfolio diversification is unsurpassed and client-focused, my portfolio has gained so much more since the second quarter
@@imveryhungry112 I'm happy for you. Some doing it, however, is not proof that it is easy. Much greater than 50% of professional investment managers fail at this "not hard" thing.
Dave - always so sound and wise with financial advice, except when talking about investment returns. "Just get 10%. Its easy." People don't get 10% year after year. Maybe 7-8% with some better and some worse. It not that easy and mutual funds don't match the market over the long term. However, he's right. It's not the rate of return, it's the saving of money that matters.
Hi Dave, New subscriber and I am sharing my story. My age is 55 and I have zero debt, 110k in the bank, 35k NVDA shares, 401k $270k, IRA 145K and 2 houses in Bay Area with zero mortgages. Just got a Mercedes SUV as my 3rd car. I started saving after marriage only after marriage but will all this be enough to retire?
Tell me about it. My 401k? Practically useless right now. I’ve got over $500k in there, but with everything going on, I’m wondering if I should just cash out and figure something else out. I’m getting closer to retirement, and the idea of relying on that fund is stressing me out.
I’m currently working towards financial freedom with a focus on dividends & growth investing. Since 2014, I’ve built a portfolio made up of 30% NVDA, 25% PLTR, 15% VOO and over 30% in digital assets alongside my employer 401k, thanks to my CFA. This strategy has helped me earn $49,000 a year in dividends. Back in 2014, I only earned $21 in dividends. I can boast of stable IRA and cash accounts and At 66, my portfolio has yielded far more than I expected for my retirement.
I have stuck with Lauren Christine Campbell for years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Dave’s advice is to live like a homeless person your entire life, never enjoy it and maybe live long enough to enjoy your money. Truth is a lot of people die before retirement. Enjoy your youth people go out and do stuff, buy a motorcycle, travel while you’re young. Yes save but not all of it. It’s a balance.
@@imveryhungry112 With 62% of the population living paycheck to paycheck. Yes. Though i'm more in the camp of investing in your career until you get to the point of being able to save 60% and retire after a few years. It's more fulfilling.
@@eric3434 62 percent of the population is living paycheck to paycheck because 81 million of them voted to let in 50 million additional low cost migrants and send a trillion dollars to ukraine over the next 5 years. If people wanted a change they could get one but apparently the population is happy with things the way they are.
Dave is not advocating the things you suggest he is. I've done it the YOLO way and I've done it Dave's way. Being broke sucks more than the enjoyment of having a motorcycle and debt. I rationalized buying a motorcycle when young. Cool and all, but it was a stupid purchase because I wasn't on good financial footing. Being broke was demoralizing and extremely limiting. When you are poor there is no balance. Just tradeoffs. Paying cash last month for a 2025 pickup and already having banked cash for next summer's family trip to Europe is liberating -- as is knowing I have cash reserves for emergencies and a growing retirement nest egg. Thank you, Dave for the advice. Do broke people stuff and stay broke -- e.g. buy the motorcycle like I did. Or you can dig in and change course and gain financial freedom. These behaviors compound, so the earlier one starts the sooner the financial freedom arrives.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Donnafrank-k6e However, if you do not have access to a professional like SUZANNE GLADYS XANDER, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
answer to this question will always be "It all depends". Depends on where you live. Do you live in San Fran or in the middle of nowhere Idaho? is your home paid off, how will you spend your retirement, are you married? does your spouse work if you have one?, is the million dollar mark cash? or does that include the value of your home and that million is your net worth?
That is not a lot of money if you are on the Coasts. I have more than that plus 1.5 million in home equity. I also have a pension from work. I plan to work until 60. The goal is to retire with a net worth of 5-6 million.
The fact that your watching Dave Ramsey shows you are interested is finance you might be a student in college looking for advice… your on the right track Dave does a great job showing how to live below your means and invest in your future… start ASAP …you’ll be rewarded later on in life 😊😊😊
Not very many mutual funds beat the market … then they have high maintenance fees.. plus tax implications if the fund managers are trading in and out… I’ll stick with my etfs and index funds .
Smartvestor Pros can't make money selling no load index funds, and if they don't make money, they won't pay DR his fee. So you should buy a managed fund with a heavy up front load.
Unlike what is said here, "beat" the S&P does not mean beating its rate of return. It means beating its risk-adjusted rate of return. I highly doubt that Dave's funds have "beaten" the S&P by yielding a 14% CAGR.
Many folks are doing just that along with social security $$$ at retirement age or alternative income such as rentals, part time job etc. although if one takes 4% a year from a million dollar portfolio (which is conservative to keep from running out of money) that's only $40,000, and you still have to pay taxes unless it's in a Roth IRA, and don't forget if you are paying a financial advisor that can be an additional 1 to 1.5% in fee's ($10-$15k)
@@mocheen4837 In your example, they will be doing extremely well. At 4% that's some $80,000 from the nest egg and maybe $20,000 single, $40,000 married or more from Social Security. Average Social Security is $1800 right now or $21,600 per year single, $43,200 married. For many folks they need maybe $60,000 a year to live on and do some fun stuff. They don't need to pull very much out of their investments to cover that difference and it could be under $1 Million nest egg.
@@mocheen4837 Why the heck you need that much for? People must blow money like water in retirement. I get 2300 SS a month and only have a 150K in my IRA at 62. Wife gets 980.00 SS. Home is paid, taxes are 920.00 a year. Three cars, one boat, nice garage to play in. Own the lot beside me about 1 acre. I made 1.8 Million working until 62. Why would I need that much to retire. I have everything I want and a home worth 220K paid. I uses the ACA for insurance until 65. I guess people just can't stop spending and live high a mighty and worry about working until 70 and getting that 2 million for what. You only live once!
Why would I want to live off the interest and die without spending the principle? - Figure it out based on Fixed income and 5-6% interest and let the money run out by the time you're 90 - Chances are you'll be dead at 90
Well if you don't care to leave a legacy at all then no and just want to be selfish and spend it all for yourself(not judging), then yeah there's no point in not spending down to nothing.
@@David-rg6vjNo one said you should not enjoy yourself when you are young. You are only putting away 10-15% of your income away for a few decades. If you can't have fun and enjoy your life on 85-90% of your income, then you have bigger problems than retirement.
Maybe you want to leave something for your children or grandkids. Or you hit the genetic lottery and hit 100 years old you just never know. Also priorities change has you get older. At the end of the day it's your money, blow it on cars and hookers or travel the world you deserve it at that point. lol
The funds that beat the market might do it for awhile but over the long term for many years they aren't beating the avg. Plus you have high expense cost so you make less...index funds the way to go.
I'm prepared for retirement and have $1,000,000 saved, but I'm concerned about growing inflation. Would this be sufficient for a decent retirement? I'm considering stock investing.
Immediately after the COVID-19 pandemic, I was laid off at the age of 36 and immediately engaged a grit-filled advisor to help me keep afloat. As a do-it-yourself investor, I've been lucky enough to get ten times the return; as of right now, my ROI is close to 85%. So far, my best!
Depends on your expenses, debt amount, and location/local cost of living. $1 million should theoretically net you between $3k and $4k per month in interest/dividends depending on your investments and risk tolerance. If you're debt free, low expenses, and don't live in a high cost of living area, there's a good chance you'll be ok. Especially if you stay 20% below your dividend per month payout. It will keep growing and compounding, just slowly. Again, theoretically. Talk to a financial services professional for specifics.
Investments double every 7 years on average in the market, unless of course you have your money is an expensive mutual fund that fails to beat the market. Then the average yearly return after expenses is 7-8%. And no you can't choose winning mutual funds. 1/20 mutual funds beat the S&p500 over a decade. Rounded to the closet number, 0% of mutual funds beat the s&p500 over more than one decade. So it is kind of misleading to say your money will double in 7 years when you're recommending a mutual fund.
I don’t think the question should be “is it enough” It should be, how does it compare to what Dave originally based the numbers off of back 20-30 years.
Cd rates 3-5 percent 3 months to five years. Hysa 3-5 percent annually, or real estate investing 10-12 percent annually. These are certain investments where you can make your money work by making more money
No one beats the market lol. Plus you’re asking people to work till 70. What is the point if I never touch it till 70? Good chance I’ll be dead before than.
That is not how the math works on the withdraw rate because you still need to withdraw during a downturn and so although your investment may average 11% returns there are times where it is down 50% and you are still withdrawing. A 50% downturn isn't matched by a 50% upturn, you have to gain 100% to recover from that. There have been lots of studies on this and the general consensus has been for a while that a 4% withdrawl rate from an investment in the broad market is relatively safe (95% confidence). An 8% withdrawl rate is DEFINATELY not safe and I am surprised you would recommend that.
I agree completely… when retired you investments should be conservative not aggressive focus on dividends … dividend growth companies and etfs and high quality bonds… try not to withdraw from the principal 😊😊😊
A lot of people want to leave an inheritance. We also don't know when we will leave this earth, so it's wise to prepare for being here longer. Average life expectancy is increasing and we need to have enough to get well into our 80s and 90s.
@@Mavryck_Tha_Myghty , Exactly but I must add that if you raise your children in the fear of God, they will do well too and you don't have to leave a lot.
@@Mavryck_Tha_Myghty My children have already received their inheritance: $0.00 in student loans, and they’ll get whatever the house is worth when we die. I’m done with my children’s inheritance.
At 55 I was in a similar situation/mindset. Then the value of those mutual funds which earn the average that Dave refers to, plummeted by 30-50%. And stayed down for approx 3+ years. Now 5 years later it has recovered , plus about 15%. If I had retired just before the market plummeted, I would of had to get another job. Dave feels safe with his money because he has multimillion's. The only way to feel that comfortable is to have enough saved/invested, so that a 50% decrease doesn't bother you.
Planning to retire in 20 years? With rising inflation, the cost to maintain your current lifestyle could reach $2.6 million or more. The combination of high inflation, lower projected stock market returns, and stagnant wages makes securing an early retirement more challenging than ever
There are numerous strategies to achieve high yields during a financial crisis, but it is crucial to undertake such trades with the guidance and supervision of a professional financial advisor to ensure informed decision-making and risk management.
That's true. I've been assisted by a financial advisor for almost a year now. I started with less than $200K, and I'm just $19,000 short of half a million in profit.
That's quite impressive! Can you share more information about your financial advisor?
My advisor is Diana Casteel Lynch , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I searched for her name on the internet, found her page, and reached out via email to schedule a conversation. Thank you.
Investments are the roots of financial security; the deeper they grow, the stronger your future will be."
I would suggest he doesn’t overlook the sequence of return risk, if he retire and the stock market was down then he’s screwed.
He should actually put the money to good use rather than burning it for decades at the end of his life.
I have thought about this, but haven't figured out how to get consultation, I don't live in a big city.
Agreed, I've always delegated my excesses to an advisor, since suffering major portfolio loss early 2020, amid covid outbreak. I'm now semi-retired and only work 7.5 hours a week, with barely 25% short of my $1m retirement goal after subsequent investments to date.
Thanks for sharing your experience! I've been managing my portfolio myself, but it's not working out. Do you have any recommendations for a good investment advisor? I could really use some help
My CFA, Joseph Nick Cahill, is a renowned figure in his field. I recommend researching his name online; you'll find all his credentials and everything you need to work with a reliable professional. With many years of experience, he is a valuable resource for anyone looking to navigate the financial market.
I'm retired now, and I don't have a million dollars. But I'm doing just fine, and my money will last me at least 20 years and probably more. I don't know whether I'll even be around for that! But I have no debt, none at all, not even mortgage. I track my expenses carefully each month, and that helps me see where things are going.
I don't worry about spending from my nest egg because I have no children and no one to leave it to. I plan to spend it on myself and my needs because no one else is going to support me financially. It all depends on your own circumstances.
I'm right with you! I'm 52, a month into a layoff and I believe I've decided to try retirement. I've tracked my expenses for the last 10 years and I've calculated that as long as my investments can do no less than 5% on average, I should be fine. To ensure that I can survive the gap until age 59 1/2, I'll try for some kind of low stress job next year that won't pay anywhere near what I was making at the time of the layoff. Plus, it will help to keep me busy. I just want to take a break from the work place for the remainder of 2023.
@@KayKay0314 congrats...great plan!
@@rafeeqm It's great! I have everything I need!
@@KayKay0314 Fifty-two is pretty young! I could not have retired at that point. My major contributions to my retirement were made from 52 to 62, and it made a big difference for me. I also did not take Social Security benefits until age 68.
@@jodylarson4697 Then who will you leave it to? You don’t want the government getting their grimy hands on what you worked your whole life for.
This is my fifth year after retirement. I’ve been following the 4% rule thing I saw on a TH-cam channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get worried.
Amazingly, you were able to save that much during your active years. Not a lot of people can save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital, so you are not left devastated during a market crash or recovery. To simplify the process, you could allocate your resources with the help of a financial advisor.
@@KheroFrei Yeah, I’m also closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who have been investing for many years.
@@KennithsAbadies Hey, this caught my interest. I worry that I have a couple more months before retirement, and I want to switch to using a financial advisor, but I don’t know how to find one.
@@DarnellsStevenses Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with MARGARET MOLLI ALVEY for the last five years or so, and her returns have been pretty amazing.
@@KennithsAbadies Thank you for this tip. it was easy to find your coach. Did my due diligence on her. She seems very proficient and I'm grateful for your guidance.
Use the 4% Rule.
According to the Trinity University research on retirement income.
• Take 4% of your nestegg to fund each year of retirement
• Then adjust upward by the rate of inflation.
• To reverse calculate how much you will need to replace your income in retirement multiply your annual expenses by 25.
Keep reading on this subject. It’s very important as you plan for retirement
Use the dividend rule and keep most of your money… a lot of companies and etfs pay a dividend use the dividend income to fund your retirement and keep most of your principal 😊😊😊
the problem with the 4% rule is its been proven to be WAY to aggressive even by the guy who invented it. The dude that invented it said more realistically you could do 5-6% and be perfectly safe.
Now my opinion on it is you want enough to be able to live on 2-3% so that you are never breaking even at 90 which is the present formula, where you end life with $0 and leave nothing. If u want to leave generational wealth all that you create needs to be left and than some to the next generation so they can start from where you left off. Meaning if u have 5mil that you created and instead of living off $250k per year and you can enjoy 100k that money will live forever and continue to grow. If you leave your kids 5mil+ and you raised them well with strong understanding of money they will than grow that to 70-80+ and so on and so forth
4% rule was debunked.
2.4% is a what most legitimate advisors are recommending now.
Ramsey has no licenses or certifications. he's just a financial entertainer.
@willfull1604 that is wildly incorrect most institutions are leaning towards 5-6%
4% was proven wrong it's just you went wrong in the other direction.
Love Dave's optimism! Screw it, I'm going for 13% average returns and a 9% withdrawal rate! Sequence of return risk, schmequence of return risk!
Lol. If someone did that starting in 1999, then would have run out of money in 2010 or so. Assuming taking out 8% of the original amount. Even ignoring inflation. What pessimists we are!
If you're being serious, you must be working with room-temperature IQ.
@@mplslawnguy3389 if Dave says it, it has to be true. Get with the program man! 😂
Yeah screw it and learn. Last ten years I’ve averaged 14%, one down year was 6. This year in the 22% range. I just followed Dave’s advice
if it isn't it's because you confuse NEEDS vs. WANTS. You don't NEED a new car every two years, a four bedroom home,[ when the family gets together put them up at Howard Johnson},two cars, a boat a rv ,world vacation every year. I have about 35 k income including S>S> and I can still go visit family 2 thousand miles away every 4 years.
Dave always drops the ball on this and it drives me crazy. 10-12% is a high goal to aim for in returns, but that's another topic. It's fine to aim for that when you're WORKING AND CONTRIBUTING. But when you retire, you wouldn't have your 401k invested in only the S&P500 anymore. You would want it to involve much more fixed assets like bonds, which would drastically lower your ROR in retirement. That means you wouldn't be able to pull 10% off it it every year without touching the principal. It would be more like 3-5% off every year. That's why the optimal ROR for retirement is 4% withdrawals. 10% is based on a portfolio that is heavily S&P500-based, which is NOT recommended for retirees as it is too high risk.
The S&P average is at best 8%.
@@situated4Wrong.
Dave doesn't believe "decreasing risk" after you retire.
@@evr0.904I don’t either. lol 100 years is enough data for me
You would be better off with gold and silver than bonds lol
Gold is up %7.7 a year since 1950 and is break even after inflation
Bonds go down guaranteed because of inflation
I’m retired 6 years and still haven’t touched my savings. We live off our social security. It can be done if you retire debt free.
Sounds boring.
Why would you want to live on a small budget rhe rest of your life😂
@@rbu245 Lol because we’re basically simple folk. I don’t feel deprived of anything. Unfortunately my husband doesn’t like to travel.
@@fishroy1997 Not really. It depends what you like to do.😊
@@fishroy1997It is...😢
I’m not ready to retire yet but I live a simple little life. A million is still a crapload of money to me in my world 😂
Yes, but if you would want to retire for 20 years you also have to take into account the inflation… so 1 million will be way less
“A wise man saved for his future, but a foolish man spends all that he has.” -Proverbs 21:20
Dave ignores the Bible when it's inconvenient. Good quote though.
What if there is no future?
@@evr0.904 "Dave ignores the Bible when it's inconvenient."
Examples please.
@@thomasd5488 Literally any time he mentions anything other than money.
@EricSmyth4Christ
"A man who earns $10, and spends $11, is unhappy man.
A man who earns $10, and spends $9, is happy man."-source unknown
This is exactly how you do it. I retired last November at 60 and never had a 401k until I was 41. In 19 years I saved $1.1 million. I've averaged 14.95% each year for the last 10 years.
How?
@@sb8404hes lying
I was 35 before I found a "real" job with benefits including a retirement account. At 43 that job laid me off and I had a net work of less than 100k. But two years later got rehired and got to work. I turned 60 in June and just passed $1 million in net worth. I plan to double that and then retire at 67.
@23chnge Fidelity FSELX 35%, FBGRX 15%, FXAIX 25%, FSPTX 25%. 5 year avg is 14.13% and 10 yr avg is 12.85%. My money has doubled in the last 5 years. These percentages were a little higher, but the last 3 months have not been good.
*past returns are not an indicator of future performance.
The last 20 years we have seen the meteoric rise of companies like Amazon and Apple. We can't assume this performance will continue. Dave's insistence on an 8% withdrawal rate is just reckless, and it infuriates me every time I hear it out of his fat mouth.
I have $1,000,000 in savings and I'm ready to retire, but I'm worried about rising inflation. Is this enough for a comfortable retirement,I’m looking at investing in stocks
comfortable retirement depends on your lifestyle... you should consult with a fiduciary to explore options.
Got laid-off at 36 just after covid-outbreak, and at once hired an advisor with grit to help stay afloat. I've been fortunate enough to achieve a 10x return compared to my previous efforts as a DIY investor, summing up nearly 85% ROI as of today.. My best so far!!
Pls how can I reach this expert, I need someone to help me manage my portfolio
I've stuck with Victoria Louisa Saylor for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Wow, her track record looks really good from what I found online. I'll take a chance and see how it goes. Thanks for the info
Yes it is. My dad and stepmom retired 3 years ago on less than a million. Like only $750k - they moved to a cheaper area, sold their old house and bought a cheaper house in cash, and have no debt at all. They live simply but they are happy. If you don't care about lavish luxury, it's enough. They are 70 years old now, retired at 67.
In my opinion this is key being completely debt free going into retirement is a big factor that it seems like I don't hear enough about in the conversation of retirement. All I ever really hear people talk about is the size of their nest egg and what dollar figure do they need to retire on without looking at the other side of the equation. Sure if I retire with a mortgage and other consumer debts then you're going to need a much bigger pile of cash going into retirement.
Thats not the case for everyone, You arent from an area where the average home price is 1million im guessing lmao.
@@RichyLucch It doesn't matter. If you retire with a million dollar home then you better have the additional finances. If you don't, then you can't afford the house.
@@RichyLucch I specifically said they "moved to a cheaper area". They lived their whole lives in Cook County north suburbs out of Chicago which is an incredibly expensive area to live in. They never could have retired there and that's why they moved to a cheaper area (New Mexico). My point stands that without any debt, it's possible to retire on less than a million if you are willing to relocate.
You can guess all you want about me. I personally live in a home that I paid over a million to build and that was before all the covid price hikes. Homes in my neighborhood sell for anywhere from 1.1 to 1.5 million and 2 miles up the street many homes going up are 2 million+. I am well aware of how much it costs to live where I do in Wisconsin here but I'm 40 and owe 400k on my 7 figure house which will be paid off well before my retirement. Point being get the house paid off and don't carry other debt and you will have some options for retirement.
With 750k in the right place that’s plenty of money to generate a decent income for 2 and no debt. If it’s in the market you will lose your butt. If it’s in an FIA you will be just fine. High participation, guarantees no market losses and 10% free withdraw every year. My FIA has averaged 12.7% over the last 10 years with ZERO risk. That means I did not lose anything over the last decade even when the market went down. My gains lock in and I never lose. It’s a no brainer
Sincerely, I'm genuinely moved by what you said about early retirement. And yes i equally agreed with you It's the FREEDOM from being able to make a conscious choice, each and every day, in terms of how you’re going to spend your time… I have about 40k that I am willing to invest if given the appropriate knowledge and I am highly interested in investing. My greatest concern is losing money on a bad investment. I'm open to hearing your advice on how to make sensible investments as a result.
no time to look back! avoid unnecessary spendings, you can move to wealth by increasing your investments and as far as i'm concerned, advisors are ideal reps for the job
Right, using an invt-advisor is ideal especially for near retirees and newbies that barely understand how the mkt works, my portfolio used to be up and down like a seesaw, not until I hired an advisor around March2020 amidst the lockdown. This is how I've been able to scale up tremendous 7figures in ROl, after subsequent investment as of today
bravo! thinking what stocks you have in your wheelhouse.. i've been on-and-off the mkt for 3 yrs and still cant get right, mind if I look up this person assisting you please?
My portfolio comprises of three major markets, and Mrs Marisol Cordova is the investment advisor that guides me, she's well renowned, most likely the internet is where to find out about her.
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.
Mutual funds or Index funds which is a better buy right now? just got my lump sum inheritance and would love to put my money to work, so i can earn in dividends, i'm also looking at paying mortgage where rates are not so high.
Index funds are more valuable than Mutual funds as of now, though a few people perceive it to be as a result of the pending correction.
I’m currently working towards financial freedom with a focus on dividends & growth investing. Since 2014, I’ve built a portfolio made up of 30% Mutual funds , 25% Index funds, 15% STP and over 30% in digital assets, thanks to my CFA. This strategy has helped me earn $49,000 a year in dividends. Back in 2014, I only earned $21 in dividends.
Oh I've heard similar things about hiring an advisor. It's hard to choose one that's very good though. Could you make some useful recommendations?
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.
The industry accepted safe withdrawal rate in retirement is 4%. Expecting to pull off 8% per year, double the standard, is crazy.
Someone pulled the four percent number out of their arse, and people ran with because it sounded good. It's really not an industry standard, just some BS numbers some clowns were using, and it stuck.
Instead of complaining,just invest. You can complain about the nuance when you have millions.
There is a lot of criticism regarding that conventional wisdom of 4%/yr. Many people have looked into it in depth and determined that 5% is fairly conservative and you'll probably be safe. 4%/yr is super ultra conservative.
I've decided that I am going to try to do the equivalent of RMDs starting at age 60. I may just do the mid-point life expectancy of the number for both males and females. At age 60, those numbers are 20.57 and 23.67 respectively. The mid-point of those numbers are 22.12. If I have $1 million in total in my retirement accounts, then I would divide $1 million by 22.12, which is $45,207 (4.52%). That's how much I would pull from my retirement accounts, doing my best to avoid sequence of returns risk. If that's not enough money for the year, which it likely won't be, then I might want a part-time job until enough time passes to where the RMDs are finally enough.
Its also industry accepted to be in debt and strive for an 850 credit score or else you will be broke, you do realize most financial advice is garbage right?
“What lifestyle do you want for retirement?” I think answering this will answer the “is it enough” question
I’ve been saving for a long time instead of investing, and right now I only have about $516k. I'm not sure how to make it grow, considering all the inflation, into something substantial that I might use for retirement. I’m just here for ideas
50% stock, 20% Bitcoin, 20% high yield CD/ bonds, 10% cash/ fully liquid stable asset
At a point like this, it's best recommended you seek the services of an advisor, as this allows you make smarter investing decisions.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $30k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
I've been considering this but haven't been proactive. Can you recommend your advisor? Could really use some assistance.
*Marissa Lynn Babula* is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Becoming a millionaire through a Roth IRA or a 401(k) involves different strategies for maximizing profits. A Roth IRA offers tax-free withdrawals in retirement, which can be advantageous if you expect to be in a higher tax bracket later in life. On the other hand, a 401(k) provides tax-deferred growth and potential employer contributions, boosting your savings. The optimal choice depends on factors like your current and future tax situation, employer match, and investment options. Consulting a financial advisor can help tailor a strategy that aligns with your financial goals and circumstances.
Prioritizing effective personal finance management holds greater significance than the sheer amount saved, irrespective of income source. Consulting a certified financial advisor can offer tailored strategies to optimize financial results by reducing expenses and enhancing income, regardless of whether it's earned through employment or investments.
I wholeheartedly concur. At 60 years old and newly retired, my external retirement funds total around One million two hundred fifty thousand dollars.. With no debt and minimal retirement fund allocation relative to my portfolio's value over the last three years, I recognize the importance of a financial advisor. Neglecting them isn't an option; however, thorough research is vital to find a trustworthy fiduciary advisor.
This aligns perfectly with my desire to organize my finances prior to retirement. Could you provide me with access to your advisor?
I'm guided by “Christine Morrison Evans an experienced coach with extensive financial market knowledge. While you can consider other options, her strategy has yielded positive results for me. She offers valuable insights, including entry and exit points for the securities I concentrate on.
Thank you for the information. I conducted my own research and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call. Her expertise is impressive, and I'm eagerly anticipating our conversation.
Did Dave seriously say it's not hard to beat the s&p, 😅 guess he should go teach warrent buffet sonething
Show us the receipts Dave!
Anyone with a net worth of 3 million is closer to Dave than Dave is to Warren Buffet. Lol.
I beat the s&p the past decade 😊
I wouldn't be surprised if some portion of his portfolio beats the S&P500. But he is likely taking more risk by doing so. Small cap and mid-cap may be around 11-12% but international has been lower, so I can't imagine his entire portfolio does 11-12%. Also I'm sure he doesn't count the fees he pays against his return.
@@emoney1231 At his net worth, the fees are near zero. Companies fight to have his investments.
Much of what Dave says is very wise. But he really needs to publish his unicorn 4-fund portfolio that consistently gets that 11-13%.
It doesn’t consistently get 11-13… he said it avg’s that since it’s inception. Trust me, they are out there.
You are right to question. What happens in a couple years of -14%....-29%.......they do happen.
Haha exactly!!! What world can you get a reliable 12% interest!!?? That is such a ridiculous assumption and he uses it to just enhance his idea of investing and becoming this super millionaire easily. Oh just invest this much money in your 20s and get 12+% every year, for 30yrs and you will be rich lol. Right right
@@micker9830 You don't get 12% every year. Some years you get 28% and some years you'll be down 4% or whatever. The average is the average, not a guarantee. If your car averages 30 mpg, that doesn't necessarily mean you can drive 90 miles and use 3 gallons every time. It will depend on the temperature, tire pressure, acceleration, stop and go, etc. It's the same with the market. Sometimes it will be up and sometimes down.
There was a fund called the Magellan fund, that a guy back in the 80's created with some primitive AI he came up with. It had a crazy return. It was a closed fund to people he knew.
Over many years you can average 10-12% per year factoring in the down years.
Have your home and cars completely paid off. Retire to an area with a relatively low cost of living. But the best advice is to make a lot of money in the decade or so leading up to retirement. I don't know what the future holds for Social Security, but if you collect at or near the maximum now, it's pretty easy to live on it. I retired 2 1/2 years ago and haven't touched any retirement savings. In fact, we have more cash on hand now than the day I retired.
Hi Dave, New subscriber and I am sharing my story. My age is 55 and I have zero debt, 110k in the bank, 35k NVDA shares, 401k $270k, IRA 145K and 2 houses in Bay Area with zero mortgages. Just got a Mercedes SUV as my 3rd car. I started saving after marriage only after marriage but will all this be enough to retire?
Tell me about it. My 401k? Practically useless right now. I’ve got over $500k in there, but with everything going on, I’m wondering if I should just cash out and figure something else out. I’m getting closer to retirement, and the idea of relying on that fund is stressing me out.
I’m currently working towards financial freedom with a focus on dividends & growth investing. Since 2014, I’ve built a portfolio made up of 30% NVDA, 25% PLTR, 15% VOO and over 30% in digital assets alongside my employer 401k, thanks to my CFA. This strategy has helped me earn $49,000 a year in dividends. Back in 2014, I only earned $21 in dividends. I can boast of stable IRA and cash accounts and At 66, my portfolio has yielded far more than I expected for my retirement.
Well it seems like a lot of your interest is riding on your source, I could really get well accustomed to your viewpoint, get me involved.
I've stuck with ‘’Jennifer Leigh Hickman ” for years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Time stamp 0:28, Excellent point.
You don't want to BURN through your nest egg.
You want to invest the nest egg, and live off the income generated by the nest egg.
Life is too complex these days for many people. Simplicity is the best. I have an aunt in Odessa TX that immigrated from Mexico many years ago and in now retired at 72. No 401k no investments of any kind other that her small house on a acre of land in the desert on social security and Medicare. Drives a ford explorer and cooks mainly at home on a 30 dollar a month cellular plan and uses an antenna to watch her spanish channels on a 75 inch HDTV my cousin gave her when he decided to get a new one. Drinks her coffee every morning on her porch and waters her plants cooks vast majority of the time and has family and friends than come over to visit and talk. Ask her and she will tell you life is great and that she is blessed. I just don't get why people who have more than her seem to struggle financially and worry so much it's just baffling.
Odessa TX -- you said it yourself. That's basically one of the lowest COL in the entire U.S. You can't just cherry pick the cheapest cities in America and then generalize to the whole country. That's literally insane. Someone lost a few b-cells when they were teaching Stats 101.
@@athens31415 Odessa the lowest cost of living??? Apparently you have never been there. 10 dollars for a breakfast taco, they have the highest gasoline prices in the state of Texas, highest rentals. It's an oil town. Do yourself a favor and use your remaining brain cell and Google property prices and see what you get for the money.
God bless ur aunt in Odessa. Cheers
He makes it sound as if it is so easy to find a fund that will beat the S&P. The risk, which is more likely to happen, is that you will find a fund that UNDERPERFORMS the market.
Not if you do a little research.
It will be great if the S&P 500 grows by 10% or more until I retire, but I'm very skeptical. I expect growth to match inflation.
Hes such a liar
@@TheFirstRealChewy
Mr. Stewart; focus ALL your resources on what YOU control. Don’t let fear worry or doubt distract you.
• Every generation in America for the last 100 years has had legitimate reasons to doubt and fear the future. Yet the stock market has averaged 10% annually.
• You are living in the wealthiest country on the face of the earth. At the wealthiest period of human history.
• I encourage and challenge you to get to your 1st million (if you desire to).
• Once that milestone is reached your wealth starts snowballing at an astounding rate.
• Investing is your BEST hedge against inflation.
@@TheFirstRealChewy Keep in mind that that is an AVERAGE. You can have four years of BIDENOMICs and four years of outrageous growth, and ON AVERAGE, you do well.I had a professor in college point out that you can have one foot in a fire and the other foot frozen in a bucket of ice, but ON AVERAGE, you feel fine.
I opened an ROTH IRA at the age of 27 and put the maximum amount possible for 2025. I feel foolish for letting my life fall into order so slowly. The issue at hand is how to invest the funds most profitably in order to save for retirement
You're 27 years old. It is alright. The compound interest period has begun. To build a strong foundation and reduce risk while maximizing gain, I think all investors should begin with ETFs. From there, they should diversify across a range of asset classes and continue to invest consistently and systematically
You do not need to locate the next NVIDIA to be successful in investing. Simply choose top tier ETFs and work with a financial counselor, as I did. I turned $90,000 into $53,000 in annual dividends, which is a huge accomplishment for me today
Impressive! I admit I'm scared about retirement as I turn 60 on my next birthday. I need to ensure I have enough money to survive on. How can I consult your advisor? My retirement account isn't performing well
''Aileen Gertrude Tippy'' is the licensed advisor I use. Just research the name online you will find necessary details to work with to set up an appointment
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her
10-12% is a little optimistic. I would say 7-8%. Expenses also play a huge part in this equation. High expenses and you can easily blow through this $$.
I have avg 12 and 14 % Over 20+ years. I don't bank on that. I use something lower than that for expected income, not needed income, expected. At this rate, I am going to have 4 million at 75. Retiring in my 50s and going to ride into the sunset.
The thing Dave never seems to admit is that every advisor would recommend dropping your exposure to equities more and more as you get closer to retirement age so these 12% estimates that are based on equity heavy portfolios isnt a fair expectation as you get close to 60 or retirement age whatever that is for you
Slow and steady pace wins the race.
Can anyone find the mutual funds that he uses? I can’t find any that consistently return 12-13% over an extended period of time
He has a video or two from a couple years ago that talks about them. He generally shies away from naming them outright. He uses a couple that are actively managed, which he generally shoes away from, because of the fees. But the funds he uses earn enough to justify the management fees. Maybe search his channel for "mutual funds" or "actively managed funds".
pretty sure people have narrowed it down to The Growth Fund of America (AGTHX)
Etf “cowz”
This is financial advice and I never give financial advice: DONT LEAVE DURING THE BEAR. If you don’t want to invest…learn. If you don’t want to learn…build. If you don’t want to build observe. DO SOMETHING…other than leave. There is so much opportunity here. Take advantage!
Just because there are opportunities in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth, I'll advise you to seek the help of a professional.
This guy posts the same stupid comment on multiple videos 😒
I know a couple who cashed out of the stock market years ago during a downturn. They lost a literal fortune by doing so.
Never take financial advice from randos on TH-cam
Here is the advice Dave should have given, the amount does not matter nearly as much as your expenses do. So understand exactly what your expenses are and you can easily back into the number you need. A great additional strategy is to invest money outside of your 401K (After max) and build some cash up. If you plan on retiring early, this cash will give you a bridge (Money to live on) as well as show income of almost nothing which will help a ton with healthcare cost. I would also take a much more conservative approach on expected return, 5-7% average is more normal.
I love how Dave talks about the spread on return versus inflation yet ignores it for debt.
Because there isn't any additional risk. Thanks for playing.
Yet you ignore risk that comes with debt.
Levearge is useful. If you don't understand leverage don't use debt
@@tracym8952 "Leverage" is risky. Don't use leverage and then complain when it fails.
@@evr0.904having all of your funds in only growth stock allocations during retirement is very risky
4:10 “not hard to beat the s&p” 😂
Then why do 94% of funds fail to beat the s&P. 😂.
Yes, very laughable. It is actually quite difficult to beat the S&P consistently over the long run.
8% withdrawal rate is not safe in retirement, also high fee investments and paying advisors kill returns
I pay no one. Manage it yourself
My wife and I are retired. Even with the 'wonderful economy, no inflationary' times (so they tell us) we have lived through the past couple of years, my investments have grown 7% overall and that is even with my wife and I withdrawing roughly $80K to live on in the past 12 months. We have lived, saved, and spent as Dave has counseled for as long as I can remember. No debt at all and we just purchased a new car - cash of course.
Listen to Dave - his words carry the strength of iron.
You must have 2-3 million
Jade is so good at explaining this to the younger folks.
She really isn't. She sucks at her job.
No she's not, that was horrible.
@@mplslawnguy3389 agreed how is she so terrible at this and made it on ?
Average returns are misleading. The market has averaged 10% sure, but what if you retire in the year the market is down 50%? You will run out of money withdrawing 10% or 8% per year. Also, beating the market is not easy, average market returns are above average actual returns for the majority of investors.
If you retire in a year the whole market is down 50% I suggest investing in ammo.
Put it under your mattress then lol
50% has never happened ever in history, where do you guys come up with these ridiculous arguments?
@@MrJimmy3459 the market has never gone down 50% does not mean it will never happen though. But… if that happens we all have bigger problems than retirement. 😂
Would the returns be above average about half the time?
The thing is that when you retire you dont run to your 401k and pull all the money out. You live off what it makes and also draw social security. It is still there. If you are in a position where you also get a pention you are living really well . Everyone's situation is different but for sure planning and saving gives you better results.
Excellent… invest in your company 401k drive a cheap car with no car payment… live in a small apartment at first… save a buy your first home … live on less then you make … 25 % of your income for housing 15% for transportation 15 % phone and utilities 25 % food and entertainment… you’ll have 20% left over to save and invest 🤗🤗🤗
Until social security runs out lol.
EXACTLY right. The whole idea is to live off whatever "income" you have, most likely and primarily social security, and the other things like 401k or other pensions allocations or whatever are meant to be supplemental, but not primary, sources of income.
Retirement is a very nuanced thing and there is no one-size-fits-all strategy. People have different risk tolerances, pensions, no pensions, 401ks, health concerns, cost of living, debt, you name it. My advice is don't listen to idiots like Dave on the internet. Learn about finance on your own. READ. Stop listening to these click-bait short video clips.
Dave should disclose his managed growth stock mutual fund portfolios that beat index funds so we can follow along.
I mean, theres a reason, its not ture
Vpmcx, fcntx are apparently two mutual funds that beat the S&P
@@roymcpherson1639 A moderate expense ratio at .38 but yes on average they both do just that. But looking at their investments I see mostly what I already own individually minus the.38%.
I’ll happily stay invested in cd’s while they are at or above a guaranteed 5%
I love the hair and outfit today Jada!
1.4 million is a lot, if you own your home, cars and are in good health. Should be easy to love off of if you have found out what is enough in life for you.
I have way lesser than that, I could lived in different countries for 6 months at a time, eat really well but have a fully paid house walking distance to beach, town and supermarket. I have relocate out of USA and lived in Europe. House insurance $230 a year, car insurance $350 a year, supermarket bill for 1 week $100. Health insurance$110 a month
It is not as much as it seems. It will not last long in San Francisco.
It depends entirely on where you live. In the Coastal cities in the U.S., 1.4M is nothing.
I retired in May and so far have not had to touch my savings. SS and a 1300 a month pension. No debt. Last few years before retirement replaced roof, furnace, water heater, garage doors, carpeting. New car. Still have a kid in college but saved for her since first grade and that comes out of a 529. I'm a fairly simple person. I just go to the gym everyday and socialize with friends and like sports bars. So I don't spend much. Single. Can see where a married couple might want to travel of have a place in Florida. That obviously would cost more and would have to live off the savings. I like the peace of mind of having the savings and not worry about draining it. My moms nursing home was $8000 a month. So those places will drain you pretty quick unfortunately.
Not really I live in San Francisco and have 1.7 M saved at my age 55 and worry I’ll run out eventually.
If Dave truly believed it is such a slam dunk to.double your money every 7 years then he would recommend that you all borrow on everything and throw it at the stock market . Why would you pay off a house that appreciates 3% a year when you can get a 10% return. Why pay off a 6% loan in exchange for 10% rate of return. In Dave’s world there is no sequence of return risk.
“Risk” but he can’t fathom sequence of returns risk when recommending an 8% withdrawal rate.
I make 35% annually on the Nasdaq?? It's possible, but then again I don't just chuck my money In and leave it, I manually place trades and dollar cost average manually, occasionally taking a short position if I'm confident. I prey on the markets repetitive nature, the nasdaq will spend days going up down up down in a range, and every time the dip happens I buy in and take 20 points profit and then wait for dip again and then bang buy another and take 20 points profit. Last couple weeks have been poor tho, its just going down, but it will be good again soon
It is called the Rule of 72 Please Use an investment calculator.
For those familiar with investing concepts this is very basic knowledge.
Example An Initial (one time) investment of $10,000 at 10% per year will grow to
$12,100 after 2 years
After 3 years = $13,310
After 5 years = $16,105
After 7 years = $19,487
Not exactly double of $10,000 but close enough.
The same thing happens with $50k, $500k or $1 million.
Stay Hungry
There is a mindset that embraces debt. While another mindset rejects debt. Very different paradigm’s. But the world is big enough for both mindset 😊
That's the approach that he took early in his career and he went bankrupt. So, no, he's not going to recommend leveraging your way to wealth. The hypothetical 3% appreciation happens independently of being encumbered by debt or not so it is a weird point to make. Paying off a 6% debt instrument returns 6%, and that is a RISK FREE investment. That is a slam dunk. The arbitrage between 10% returns and 6% interest has risk. People ignore that. Dave is not ignorant of sequence of return risk. He argues that the behavior over a lifetime of actually investing is far more important than the minutiae of rates of returns. If you don't regularly invest then you'll have no money invested to even fuss about rates of returns, sequence of returns, and all that. The act and habit of investing is far more important than the nuance of investment earnings. Sequence of return risk is an argument FOR being debt free and having a nest egg at retirement so that you're buffered.
I just switched up my Roth IRA to 50% SCHD, 25% SCHX, 25% SCHG, and my Roth 401k is 70% vanguard S&P 500 index, 20% vanguard growth index, and 10% vanguard international index. Seeking best possible ways to grow $350k into $1m+ before retirement, I'm 55.
Those sound like great picks! consider financial advisory so you don’t keep switching it up, top 3 payers for the month were $OHI, $KMI, and $EDP... not bad for 350k
You have a very valid point, I started investing on my own and for a long time, the market was really ripping me off. I decided to hire a CFA, even though I was skeptical at first, and I beat the market by more than 14.3%. I thought it was a fluke until it happened two years in a row, and so I’ve been sticking to investing via an advisor.
I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Wow, her track record looks really good from what I found online. I'll take a chance and see how it goes. Thanks for the info
I just wanna say - Jade has the most beautiful skin. I mean. It's beautiful. Beauty with brains and an attitude and the right attitude and right amount of attitude. You go, girl.
Retirement planning for high-net-worth individuals can be even more complex. These people, who have at least $1 million in cash or investable assets, have a lot to think about when it comes to planning for retirement. I still want to know how best to compound at least $10m in retirement savings.
if you’re considered a high-net-worth individual and the steps you can take to maximize this time of your life. Beyond these strategies, consider enlisting a financial advisor to tailor a retirement plan that’s right for you.
FIA!!! Forget these scammy financial advisors. You’re way better off using a FIA for guaranteed principle , high participation and guaranteed income for life. No brainer. Don’t waste money on someone you have no clue how good or bad they are with other peoples money. And the stock market guarantees nothing..
Disgusting bots
Stop saying that it's not hard to beat the S&P 500. More than 90% of fund managers don't beat the S&P 500. Put your money in index funds rather than so-called growth funds that may be the S&P a couple years but don't do it consistently
It depends entirely on where you live when you retire. In the Coastal Cities in the U.S., 1.4M is hardly anything. Cost of living is so high in those regions. Even if you own your home, you'll be shelling out 15K - 20K/year in Property Taxes alone (which is $1250-$1666 per month).
I shake my head at people like you who make statements like 1.4M is hardly anything in coastal cities. What percentage of retirees on coastal cities do you believe have $1.4 million? You can say anything you want when you do quantify things. But once things start getting quantifies and numbers start being provided I see statements like the one you made are full of sh*t. I'm serious. So I will ask..what percentage of retirees households on the coasts have $1.4million that you claim is hardly anything?
"you'll be shelling out 15K - 20K/year in Property Taxes" -- You are so clueless. I live in California and I do not know anyone who is paying property taxes in that amount. Don't ever post an ignorant comment like that again.
@@johnnastrom9400 I thought I was the only one who knew this guy was full of sh*t. We need to call out guys like this so someone who's looking for guidance don't get discouraged by a person like him who obviously knows little about money.
@@johnnastrom9400No, he's right. Property tax, on average, is 0.0132% of a home's value. $15000 to $20000 a year would equate to a $1.13M to $1.51M home. Some states like New Hampshire have no income tax but have higher property tax (0.0173%)
Edit: forgot a "1" and corrected values.
Depends when u buy them. I have 3 houses on the coast of california and combined don’t pay that much in property tax
Dave, PLEASE stop telling your listeners that 8% is a safe withdrawal rate. When you take sequence and volatility risk into account, you will find that 5% on an all-stock portfolio might be 'aggressive' for an average retirement. Some very long retirements would be looking at a SWR of 3% to avoid undue risk. 8% is HARMFUL advice! Please watch my podcast episode from last week addressing you on this topic. Calling those who care enough to call you out on this "bananas" won't stop our mission to help you and your listeners on this front!
Ok guy..
Your plugging is bad and you should feel bad
@@casework781 I am serious about this topic. I think it is the most important change that Dave can make to his regular advice, and I want to help everyone avoid undue risk that can cost them their retirement.
@@MrJimmy3459 If you have a counter-argument for me, I am all ears. Debate helps parse out truths from disagreements.
I go 8 percent 😊
The product of inflation is an increase in prices. This includes increased prices of stocks. Stocks passively adjust for inflation.
Guys not just any growth stock mutual funds, they’ve got to be “good” growth stock mutual funds.
Exactly. Heck, just going for S&P 500, or funds like VTI/FSKAX (overall US) paired with VXUS/FTIHX (overall international), often will do the trick for at least decent, consistent returns without getting "cute." For growth funds, something like VUG or QQQ could work, as long as the funds have good returns AND low expenses.
401K have a required withdraw rate. It can be reinvested, but it has to be taken out and then taxed.
yeah but that's not until you are 70.
@@freedomring3022going to be 75 soon.
@@freedomring3022Actually 72.
The people asking if 1 million will be enough are the same people who will never invest a dime.
Not at all. In the Coastal Cities in the U.S., 1.4M is hardly anything. Cost of living is so high in those regions. Even if you own your home, you'll be shelling out 15K - 20K/year in Property Taxes alone (which is $1250-$1666 per month).
As an investing enthusiast, I often wonder how veteran investors get rich off dividends. I do have a good amount of capital to to invest for passive income, but my focus right now is how to gain wealth from market resurgence, I'm keen on retiring early with at least $3.5m.
Not falling for yield traps is important, focus on long term growth. ideally, a good advisor can help you earn those dividends over time
I was taught well on how to save, nothing on dividends, but now I'm really ratcheting up investments with the help of a reputable advisor, realized at least $800k after subsequent investments in so far this year. I do think I have dropped a lot of stress about finances having a long term perspective about investing.
This is great! think your advisor would get on the phone with an unknown? I'm retired and don't know what to do with my money, concerned about my savings due to high inflation
There are many financial experts who excel in their profession, you just have to do your research. Personally, I employ the exemplary service of Lisa Ann Moberly, and luckily she has a web presence.
Very much appreciated, curiously inputted her name on my browser, found her site ranked top, and skimmed through her credentials no-sweat.. she actually shows a great deal of expertise.
Hey Dave, i was Dave Ramsey before you went broke in your 20's.
In general, for the last 20 years international stocks have left money on the table vs USA equities.
The key to all these folks being wealthy is save every dollar and dime possible while you're young and drive a Toyota or Honda vehicle until the wheels fall off. When you double your money every 7 years it becomes eye popping numbers.
It's not difficult. And you can index half your money and either active manage the other half or like me, handle my own stock selection and have di e exceedingly well since starting with John Boagle and Vanguard in 1985.
Actually, 7% interest rates are a good thing for savers.
No risk and insured allows you the ability to take the equity risk to boost your returns.
Great info man.
Saying it is not hard to beat the S&P 500 because the S&P 500 is the average is not true. Beating the S&P500 is not average because the average investor does not have the discipline to stay invested through ups and downs. Charlie Munger says 95% of people have no chance of beating the S&P 500 over any extended period of time.
On top of this, saying there are mutual funds that can consistently return 10%+ is wishful thinking. Over the past 20 years, the S&P500 returned 8.19% annually.
I'd love to see Ramsay actually list out what these high-quality mutual funds are that have consistently returned 10%+.
Jade you have a beautiful smile!
Dave has solid advice on how to live a financially sound life. Live beneath your means and save for the future and be generous to others. But his financial advice is ludicrous. There isn’t a mutual fund that outperforms the S&P 500 every year. Look it up. Mutual funds over and underperform regularly. Also, a 10% burn rate is going to deplete the portfolio very quickly. If you withdrew 10% in 2020 you probably lost 30% that year. To make up for that loss the stock market has to increase by 45% the following year plus the $100,000.00 burn for that year. 4% burn rate isn’t a made up calculation. It’s so your not 84 years old and working at Walmart.
Dave has a big enough portfolio he can afford mistakes. The average person doesn’t.
When they pull from off returns from that 401k there will also be taxes.
Better to work longer than need to and grow the retirement income portfolio than to not work not as long as need to. Coming up short is far worse than having more than needed.
lol I don't have even a tiny fraction of that and am very happily retired, debt free, and living a wonderful life. People put far too many expectations on their money bringing them contentment. :) And I could not afford where I lived so moved where I could make it.
I stopped going to Starbucks and my net worth is now 8m.
Congrats! 👏
I'd like to retire or work less in 5 years, and I'm curious how others split their pay, how much of it goes into savings, consumption, or investments; I earn roughly $250K per year but have nothing to show for it.
For a successful long-term strategy I recommend you seek the guidance of a broker or financial advisor, Who will advise you buy stocks with market-beating yields and shares that at least keep pace with the market for a long term.
Very brilliant idea, I was managing my portfolio by myself using TH-cam and Incurred a huge loss which made me hire an advisor. It's been 2yrs already and I have made up to $380K in returns and would pay fully for my 3rd rental property in Ohio by next month.
Please How can one reach this advisor of yours?
I have been working with *SHARON LOUISE COUNT* whose expertise in portfolio diversification is unsurpassed and client-focused, my portfolio has gained so much more since the second quarter
Found her webpage by looking up her name online. She seems very proficient, scheduled a call.
Depends on your vices.
"It's not hard to beat the S&P..." 😂
Just get a big stick and go over there.
I've beat it the last decade! 😊
@@imveryhungry112 I'm happy for you. Some doing it, however, is not proof that it is easy. Much greater than 50% of professional investment managers fail at this "not hard" thing.
@dillontarr8112 just buy Lockheed Martin democrats war with russia will keep that going up the next 20 years!@
What funds are used instead? Everyone always say they beat the market, but don't divulge the funds..
Regarding where to invest your money, being average is the best thing you can do.
Dave - always so sound and wise with financial advice, except when talking about investment returns. "Just get 10%. Its easy." People don't get 10% year after year. Maybe 7-8% with some better and some worse. It not that easy and mutual funds don't match the market over the long term. However, he's right. It's not the rate of return, it's the saving of money that matters.
The stock market average is around 6.5% year over year. I'd like to know myself where he's getting that 10% year over year average.
@@michaelb.8953 It's something like 10.38% year over year. Do the math.
@@michaelb.8953When you say “the stock market” what are you referencing? The S&P 500 index has annualized returns of 9.9% over the past 30 years.
Hi Dave, New subscriber and I am sharing my story. My age is 55 and I have zero debt, 110k in the bank, 35k NVDA shares, 401k $270k, IRA 145K and 2 houses in Bay Area with zero mortgages. Just got a Mercedes SUV as my 3rd car. I started saving after marriage only after marriage but will all this be enough to retire?
Tell me about it. My 401k? Practically useless right now. I’ve got over $500k in there, but with everything going on, I’m wondering if I should just cash out and figure something else out. I’m getting closer to retirement, and the idea of relying on that fund is stressing me out.
I’m currently working towards financial freedom with a focus on dividends & growth investing. Since 2014, I’ve built a portfolio made up of 30% NVDA, 25% PLTR, 15% VOO and over 30% in digital assets alongside my employer 401k, thanks to my CFA. This strategy has helped me earn $49,000 a year in dividends. Back in 2014, I only earned $21 in dividends. I can boast of stable IRA and cash accounts and At 66, my portfolio has yielded far more than I expected for my retirement.
Well it seems like a lot of your interest is riding on your source, I could really get well accustomed to your viewpoint, get me involved.
I have stuck with Lauren Christine Campbell for years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
He's beating the index funds? Come on bro
She's killin it.
Dave’s advice is to live like a homeless person your entire life, never enjoy it and maybe live long enough to enjoy your money. Truth is a lot of people die before retirement. Enjoy your youth people go out and do stuff, buy a motorcycle, travel while you’re young. Yes save but not all of it. It’s a balance.
all he says is to 1. pay off your debt 2. save 15 percent for retirement. Like legit is that considered extreme today?
@@imveryhungry112 With 62% of the population living paycheck to paycheck. Yes.
Though i'm more in the camp of investing in your career until you get to the point of being able to save 60% and retire after a few years. It's more fulfilling.
@@eric3434 62 percent of the population is living paycheck to paycheck because 81 million of them voted to let in 50 million additional low cost migrants and send a trillion dollars to ukraine over the next 5 years. If people wanted a change they could get one but apparently the population is happy with things the way they are.
Dave is not advocating the things you suggest he is. I've done it the YOLO way and I've done it Dave's way. Being broke sucks more than the enjoyment of having a motorcycle and debt. I rationalized buying a motorcycle when young. Cool and all, but it was a stupid purchase because I wasn't on good financial footing. Being broke was demoralizing and extremely limiting. When you are poor there is no balance. Just tradeoffs. Paying cash last month for a 2025 pickup and already having banked cash for next summer's family trip to Europe is liberating -- as is knowing I have cash reserves for emergencies and a growing retirement nest egg. Thank you, Dave for the advice. Do broke people stuff and stay broke -- e.g. buy the motorcycle like I did. Or you can dig in and change course and gain financial freedom. These behaviors compound, so the earlier one starts the sooner the financial freedom arrives.
Dave have you heard of sequence of return risk?
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Donnafrank-k6e However, if you do not have access to a professional like SUZANNE GLADYS XANDER, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
@GeorgestraitStriat Oh I would love that. thank you.
@@Donnafrank-k6eSuzanne Gladys Xander.
Lookup with her name on the webpage.
Would like some clarity on taxation with an IRA 401k's and how to determine what taxes we'll pay.
answer to this question will always be "It all depends". Depends on where you live. Do you live in San Fran or in the middle of nowhere Idaho? is your home paid off, how will you spend your retirement, are you married? does your spouse work if you have one?, is the million dollar mark cash? or does that include the value of your home and that million is your net worth?
San Francisco is going downhill without brakes, so it could be getting cheaper in the not so distant future.
@@carlosmiro4932 💯
That is not a lot of money if you are on the Coasts. I have more than that plus 1.5 million in home equity. I also have a pension from work. I plan to work until 60. The goal is to retire with a net worth of 5-6 million.
The fact that your watching Dave Ramsey shows you are interested is finance you might be a student in college looking for advice… your on the right track Dave does a great job showing how to live below your means and invest in your future… start ASAP …you’ll be rewarded later on in life 😊😊😊
Not very many mutual funds beat the market … then they have high maintenance fees.. plus tax implications if the fund managers are trading in and out… I’ll stick with my etfs and index funds .
Smartvestor Pros can't make money selling no load index funds, and if they don't make money, they won't pay DR his fee. So you should buy a managed fund with a heavy up front load.
Unlike what is said here, "beat" the S&P does not mean beating its rate of return. It means beating its risk-adjusted rate of return. I highly doubt that Dave's funds have "beaten" the S&P by yielding a 14% CAGR.
Many folks are doing just that along with social security $$$ at retirement age or alternative income such as rentals, part time job etc. although if one takes 4% a year from a million dollar portfolio (which is conservative to keep from running out of money) that's only $40,000, and you still have to pay taxes unless it's in a Roth IRA, and don't forget if you are paying a financial advisor that can be an additional 1 to 1.5% in fee's ($10-$15k)
Having a financial advisor take 25% of your retirement income like Dave suggests is crazy
$2 million is a good starting point. Couple that with pension and social security and you might be fine.
@@mocheen4837 In your example, they will be doing extremely well. At 4% that's some $80,000 from the nest egg and maybe $20,000 single, $40,000 married or more from Social Security.
Average Social Security is $1800 right now or $21,600 per year single, $43,200 married. For many folks they need maybe $60,000 a year to live on and do some fun stuff. They don't need to pull very much out of their investments to cover that difference and it could be under $1 Million nest egg.
@@mocheen4837 Why the heck you need that much for? People must blow money like water in retirement. I get 2300 SS a month and only have a 150K in my IRA at 62. Wife gets 980.00 SS. Home is paid, taxes are 920.00 a year. Three cars, one boat, nice garage to play in. Own the lot beside me about 1 acre. I made 1.8 Million working until 62. Why would I need that much to retire. I have everything I want and a home worth 220K paid. I uses the ACA for insurance until 65. I guess people just can't stop spending and live high a mighty and worry about working until 70 and getting that 2 million for what. You only live once!
I have learned that the problem with any budget is not revenue...it's spending.
Why would I want to live off the interest and die without spending the principle? - Figure it out based on Fixed income and 5-6% interest and let the money run out by the time you're 90 - Chances are you'll be dead at 90
Exactly! This is living and enjoying yourself young is important, some peoples logic is to get so much money and just live off the interest to die
Well if you don't care to leave a legacy at all then no and just want to be selfish and spend it all for yourself(not judging), then yeah there's no point in not spending down to nothing.
@@David-rg6vjNo one said you should not enjoy yourself when you are young. You are only putting away 10-15% of your income away for a few decades. If you can't have fun and enjoy your life on 85-90% of your income, then you have bigger problems than retirement.
Maybe you want to leave something for your children or grandkids. Or you hit the genetic lottery and hit 100 years old you just never know. Also priorities change has you get older. At the end of the day it's your money, blow it on cars and hookers or travel the world you deserve it at that point. lol
“A good man leaveth an inheritance to his children's children: and the wealth of the sinner is laid up for the just.”
Proverbs 13:22
You dont even need to sell any % every year. Buy dividend stocks that pay you. O, MAIN, CALM, SPG, WPC, VLO, IIPR, NEE, etc
The "what you need" is what is your monthly and annual budget needs. Then you can figure out how big your portfolio needs to be.
For me it's enough
The funds that beat the market might do it for awhile but over the long term for many years they aren't beating the avg. Plus you have high expense cost so you make less...index funds the way to go.
I'm prepared for retirement and have $1,000,000 saved, but I'm concerned about growing inflation. Would this be sufficient for a decent retirement? I'm considering stock investing.
Your lifestyle will determine whether you have a pleasant retirement, so you should discuss your options with a fiduciary.
Immediately after the COVID-19 pandemic, I was laid off at the age of 36 and immediately engaged a grit-filled advisor to help me keep afloat. As a do-it-yourself investor, I've been lucky enough to get ten times the return; as of right now, my ROI is close to 85%. So far, my best!
Pls how can I reach this expert, I need someone to help me manage my portfolio
Her name is Annette Christine Conte can't divulge much. Most likely, the internet should have her basic info, you can research if you like
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
Depends on your expenses, debt amount, and location/local cost of living. $1 million should theoretically net you between $3k and $4k per month in interest/dividends depending on your investments and risk tolerance. If you're debt free, low expenses, and don't live in a high cost of living area, there's a good chance you'll be ok. Especially if you stay 20% below your dividend per month payout. It will keep growing and compounding, just slowly. Again, theoretically. Talk to a financial services professional for specifics.
Investments double every 7 years on average in the market, unless of course you have your money is an expensive mutual fund that fails to beat the market. Then the average yearly return after expenses is 7-8%. And no you can't choose winning mutual funds. 1/20 mutual funds beat the S&p500 over a decade. Rounded to the closet number, 0% of mutual funds beat the s&p500 over more than one decade. So it is kind of misleading to say your money will double in 7 years when you're recommending a mutual fund.
Indexed mutual funds basically give you the rate of return of the stock market.
@@TShirtAndReeboks That's not what is promoted, though. And besides, why get a indexed mutual fund when you can just get an ETF with lower fees?
@@Aubatron There are many indexed mutual funds with lower fees than ETFs. FXAIX is cheaper than VOO. And FZROX is a no-cost indexed mutual fund.
Let's see how long this doubling lasts.
@@TheFirstRealChewy Almost been 100 years now for the S&P500. Who knows what the future holds, the mutual fund managers sure don't lol.
This is fantastic news! If I buy your book I can withdraw 8% of my portfolio and still have it grow!!!! Where do I sign?
I don’t think the question should be “is it enough”
It should be, how does it compare to what Dave originally based the numbers off of back 20-30 years.
Every 10-12 years you have to factor in a 30-40% decline
Cd rates 3-5 percent 3 months to five years. Hysa 3-5 percent annually, or real estate investing 10-12 percent annually. These are certain investments where you can make your money work by making more money
No one beats the market lol. Plus you’re asking people to work till 70. What is the point if I never touch it till 70? Good chance I’ll be dead before than.
That is not how the math works on the withdraw rate because you still need to withdraw during a downturn and so although your investment may average 11% returns there are times where it is down 50% and you are still withdrawing. A 50% downturn isn't matched by a 50% upturn, you have to gain 100% to recover from that. There have been lots of studies on this and the general consensus has been for a while that a 4% withdrawl rate from an investment in the broad market is relatively safe (95% confidence). An 8% withdrawl rate is DEFINATELY not safe and I am surprised you would recommend that.
I agree completely… when retired you investments should be conservative not aggressive focus on dividends … dividend growth companies and etfs and high quality bonds… try not to withdraw from the principal 😊😊😊
You're missing his point if you think he's advocating for an 8% drawdown of the portfolio each year.
What’s the point of living off the interest only and leaving the principal untouched? You can’t take it with you when you die.
A lot of people want to leave an inheritance. We also don't know when we will leave this earth, so it's wise to prepare for being here longer. Average life expectancy is increasing and we need to have enough to get well into our 80s and 90s.
“A good man leaveth an inheritance to his children's children: and the wealth of the sinner is laid up for the just.”
Proverbs 13:22
@@Mavryck_Tha_Myghty , Exactly but I must add that if you raise your children in the fear of God, they will do well too and you don't have to leave a lot.
Unexpected expenses might come up. Or you might live longer than expected.
@@Mavryck_Tha_Myghty My children have already received their inheritance: $0.00 in student loans, and they’ll get whatever the house is worth when we die. I’m done with my children’s inheritance.
Question this advice. Sequence of returns with drops in the market (yes dave the market does drop sometimes) can severely damage this plan.
Jade is really great on the show. My fav co-host ❤🔥
At 55 I was in a similar situation/mindset. Then the value of those mutual funds which earn the average that Dave refers to, plummeted by 30-50%. And stayed down for approx 3+ years. Now 5 years later it has recovered , plus about 15%. If I had retired just before the market plummeted, I would of had to get another job. Dave feels safe with his money because he has multimillion's. The only way to feel that comfortable is to have enough saved/invested, so that a 50% decrease doesn't bother you.
Yes, as long as the 1M is not 800k house and 200 in 401k because that would be considered a golden cage.
Are you referring to $800K in equity?