You guys are the best show about wealth building I’ve seen. You could make shorter, clickbait content like more producers and get more views, but instead you respect your audience and provide levelheaded advice in long form. Keep up the good work!
I would like to point out that someone falling off the Forbes 400 list doesn't necessarily mean they lost wealth. The number 400 spot is constantly increasing in value. 2.9 billion is needed to hold the 400th spot
I could really relate to the segment about Dave Grohl. That kind of sums up my attitude toward money. You never know what's going to happen, and you don't know that you can replicate your current income stream if you were to lose it. It's much better to set yourself up for the future than to spend it carelessly.
How do millionaires lose their wealth, I am going with divorce. My divorce lasted 9 years. I got custody of our daughters and she took everything else. By my estimate, going through 6 attorneys, all of my expenses of raising my children and supporting them through college, internships, Peace Corps, cars, health and auto insurance-that's about a million dollars right there. No regrets, got through it, great kids with great occupations, no debt, have savings for retirement. For me, marriage, one and done. I don't know how people do this three or four times.
"Don't blow it" is actually step 1. Keep it simple is step 2. Count yo money is step 3. Running this proven 3 step system in the incorrect order, keeping it simple and then counting yo money before you don't blow it as you suggested, may lead to suboptimal results depending on market conditions and other factors.
I thought this episode wouldn't connect with me because of the title & me not being a millionaire or thinking the reasons would have been like gambling or lottery winners with bad spending habits & knowing I would never do either but MG Team goes so deep all of their videos help you to learn & prepare & teach others if they're willing to listen. Good job MG Team!
My thoughts exactly! I hesitated clicking because so many other things seem more appetizing/relevant, but I'm betting there will be nuggets here I will find useful. Keep it up, TMG :)
It's a delicate balance between being frugal and preserving wealth and enjoying fruits of our labor in retirement. Risk profile, reduce risk as we move towards retirement. Great info...
na. I want to be a billionaire and while money guys love to say 88 times over, if you actually save for around 80 years, it becomes 4k times over. I could be a billionaire by the age of 100 with my current savings rate and compound interest.
>80% of people i knew who bought houses before 35 in CA got down payment help from 1 or both set of parents. I didn't think that was going to be the case in the south, but I was wrong, just slightly less common in my circles and the threshold is younger. Its also tough out here trying to date adult women who are on daddy's payroll.
Great recommendation, The Psychology of Money by M. Housel was excellent. Business Adventures by J.Brooks is another great read. Fantastic show, great content, thank you!
Naughty timing selection in discussing diversified portfolio performance. Diversification hedges against downturns so selecting a period with heavy downturns will of course make it appealing.
I'm curious what % of millionaires didn't inherit wealth, but came from wealthy families (maybe they just haven't inherited any "yet", so they did become millionaires on their own but they had a strong fiscal support system).
I came from wealthy family but didn’t inherit til later. Best plan my dad had. I had to work hard before I inherited anything. Made me a good steward of moeny
Exactly why I will spend and enjoy most of my money while I'm alive....leave all that money just for the kids to piss it away. No thanks. My legacy to them will be teaching them how to earn and grow wealth themselves.
If you’re confident that you can teach them to be responsible with money, then you should feel confident they won’t piss it away. I’m trying to build a dynasty and teach my kids how to handle it.
At 39:29, you mention that businesses pass on their higher costs in the form of higher prices. True. However, customers resist higher prices and seek substitutes when prices reach a certain point. During the last recession, companies like P&G and Unilever noted that people started to buy private labels and shop at EDLP retailers like Walmart and Aldi. Notice that P&G had to come out with a Tide Simple to counter their loss of market share of Tide Original. I know that when I raised prices on my products, I spend a LOT more time analyzing sales trends to ensure that we did not lose market share.
@the money guy show. I have a question. Why do you use average and then make inferences about what most common person does. Wouldn't median work better in many of your stats. Is there a pragmatic reason like the median stats not existing?
By the way, the real beneficiaries of inflationary policy are those who are heavily in debt. My father was paying his 1960s home mortgage with 1990 dollars which were worth significantly less.
That's funny how Brian said he succeeds in this particular time because his particular skillset is good now but I'm willing to bet his success isn't an accident and if he was living in a different civilization/time he would develop the necessary skillsets to thrive
I relate to Brian's statement about that. I'm a software engineer. In this time I can be gainfully employed as a nerd with imperfect social skills, but if I had been born 50 years earlier I'd probably still be able to support myself but with a much lower income. Maybe I could have been a librarian or something...
Depends greatly on the social mobility of the civilization. Most civilizations in history were very hierarchical or even caste, think about feudalism. Being able to change SEC is a novel feature of free societies. It’s one thing about our country we have to value, even though it’s not perfect at this.
The only nit I have to pick with this is in regards to the diversification part at the end. That analysis of the sp500 vs the 60\40 is accurate, but keep in mind that is for someone looking to maintain their existing wealth (makes sense given the title of the video.) Keep in mind though, the numbers will look substantially different for a younger person building their wealth through consistent dollar cost averaging over those years. With the higher volatility all sp500 option coming out much better than it did here. Again, nothing wrong in what was discussed, as long as viewers keep in mind this isn't directly applicable to all mutants at all stages of life.
@@richardsnyder5402 Yes, without a doubt. The point I was making is that comparing a lifetime of dca soldiers into a straight sp500 index fund will not come out like that compared to the same amount of dca dollars put into a 60/40 mix.
@@danh2716 I can here to make that same point. I would love to see the slide at 57:47 repeated, but with monthly contributions of like $200 over that same time period.
I backtested snp 500 vs 60/40, and in the end snp was way ahead of 60/40, so regardless where this numbers came from everyone should run the numbers himself than rely on some "analysts"
Good chart at end about diverse portfolio, but I wonder what the numbers would look like with people who are still buying in the market in S+p 500 fund with dollar cost averaging. I think that would be the better way, ex maxing your 401 k during that time. What do u guys think
I don't think Bo understands the meaning of decimate. It means to lose one in ten. The term is derived from a punishment in the Roman legions where soldiers would draw lots and one in ten soldiers would then be beaten to death with sticks by their friends.
The 60/40 example at the end is pretty misleading. They cherry picked a start date that happened to occur right before the worst market crash since the Great Depression. They also didn’t mention bonds were in the middle of a 40-year bull run that is now ending. I’d definitely do your own research before even thinking about investing in bonds of any kind, especially to the tune of 40% of your portfolio!
It's not cherry picked. Multiple studies on multiple retirement starting points were used and 60/40 held up. Ironically It's you who is cherry picking. Your assumption is that the state of bonds today will be the same low rate throughout a person's retirement. That's a hell of an assumption.
@@ariefraiser140 The trouble with bonds is that they don't increase in value as interest rates rise - in fact the opposite is true. Falling interest rates are what has caused the bull run in bonds, and they really can't fall any further. That said, I still would only recommend a 0% bond allocation for younger people. Bonds suck but they're still less volatile than stocks. Anyway I would echo the comment about doing some research and going in with eyes open.
@@travis1240 I've done a ton of research but no amount of research will negate the fact that you're bassing your analysis on today's bond rate ie one point in time or if you will a number of recent years point in time while the basis for 60/40 used the bond rates of multiple points in time. For your assumptions to hold true bond rates would have to remain very low throughout a person's retirement and my only point was that's a hell of an assumption.
@Arie Frasier the bonds you buy today won't and can't get better. This is how bonds are unlike stocks. Generally the coupon rate is fixed. If you buy a fund containing longer term bonds and interest rates go up, the value of the fund falls. Likewise, If you buy an individual 10 year bond today, you'll get that low interest rate for the entire 10 years. I don't disagree that in the future there may be better bonds to buy, and I'm not even arguing for a 0% allocation now, despite such low yields. I'm only saying to be aware of that and not blindly follow ratios.
There are situations, though,which take multi- generational help. Severely disabled grandkids- sorry, but $, unfortunately, is critical to getting the needed help and health services. There are situations where all relatives that can help can profoundly change a life in the balance. This should be celebrated and encouraged. I wish I could share my full story which highlights this so profoundly.
You don't need to get your kid a brand new car, but don't stick them in a beater either. In the long run it'll end up costing more in maintenance and lost opportunities than getting a decent reliable used car.
Why should large fortunes persist for generation after generation? I don't see the fundamental problem with 70% of wealth being gone by the 2nd generation and 90% by the 3rd generation. To me that suggests that the generation that earned it is the generation that spent it, or at a minimum that someone they knew and loved spent it. That's how it should be, in my opinion. We don't need any more of these tabloid-fodder trust fund brats. The journey to wealth is more important than actually being wealthy. Future generations shouldn't be robbed of the opportunity for self actualization that only comes when you forge your own path. Why is it that we deride "economic outpatient care" for adult children (as we should) but in the same breath lament that more people aren't passing down great-grandpa's fortune to another family generation that never even knew the guy? What's the difference? So the goal is to make fully independent, self sufficient adult children, but then give them a few million dollars when we die? If all goes to plan they should already have a couple million of their own by then. I don't get it.
"We" don't need that? What gives you the mistaken impression that your need plays any role at all in the wishes of someone else’s wealth and how they would like their estate to be handled?
@@danh2716 Spare me the indignation and get over yourself. I didn't tell you what to do with your money. If you want to raise the next long line of "do you even know what the f*** my dad does!!" types then be my guest. I am pointing out the logical inconsistency with the personal-finance dogma on the subject. The idea that "generational-wealth" is something to aspire too, even though subsidizing your adult children is bad. It's irresponsible and makes them weak, unless you're long dead and have a bunch of lawyers and financial advisors involved apparently. Look at these fools who built a fortune and then, *gasp*, used it for something! Oh the injustice. I guess their descendants will have to actually make something of themselves.
On your point that your kids should have their own millions by the time you pass, that is the perfect scenario for leaving a large legacy. I want to raise children that build their own wealth and that I can trust to manage a large inheritance. I don’t know if I will manage this but it’s an admirable goal many have. Your description is pretty cynical (& certainly does happen) but it’s not a reason not to try to aspire for generational greatness.
I'm not sure the turnover in wealth is that bad a thing. If you are saving for your retirement then the majority of your wealth will be spent during that retirement and if our calculations were correct or the markets were bad during the retirement, then you're not going to have much left in inherited wealth? Do your survey's identify and filter this kind of lifestyle choice out of those that are saving specifically for inheritance? (edited to correct spelling health > wealth)
Good point. In fact, you could probably also make a compelling argument that too little wealth turnover among the wealthiest people is actually destabilizing to the economy and the society they live in. Otherwise it's probably inevitable that you end up with some kind of "ruling class" or aristocracy that lords over everyone else. Some would probably argue we are already there but I don't see it that way. Either way, it's not necessarily a bad thing in my opinion for someone to spend down most of their wealth over the course of their life. That's probably closer to ideal than the idea of generational-wealth being handed down through families.
If I make $50k a year with no 401k option from my work does my 3 buckets for retirement become.. 1st. Roth IRA maxed out 2nd. HSA maxed out 3rd. Taxable brokerage account. Should mention I’m 31 and married with no kids. My wife is in the same situation as me (no work 401k option). Without having a company match or 401k option at all, does my HSA account become that “401k” bucket for distributions that are not health related come retirement time? Or is there something I’m missing here. Maybe I need to open a IRA and a Roth and just split the contributions evenly throughout the year. Looking for clarity with the 3 buckets for retirement without a company 401k option. Thanks. Love the show on here and the podcast. Such great content.
Tim I think you’re off to a very good start. My simple math says that you are putting about 18% of your income into retirement. The Money Guys philosophy is to invest 20 to 25% of your income into retirement. Perhaps when your income increases you could add a IRA. Also, I think it is wise to add money to your taxable brokerage account and not just be retirement heavy on your investments. Maybe you mentioned this but from what I understand your HSA can be used for any expenditure after the age of 65, which in fact turns it into a 401(k).
Brian and Bo, debt becomes cheaper only when your wages increase in step with inflation. It is not absolutely true that inflation causes debt to be cheaper!
7:16 Kids -- take care of yourself before your kids; know aging parents finances 31:46 Inflation -- own assets (i.e. stocks) rather than have cash above emer. fund 47:50 Risk -- take on risk when young, diversify, phase out risk near retirement
18 and the kids out the door. No more help. They will have been given the tools to succeed. from 18 on, not my problem. Then again I dont have kids because they are just waste of time and money. Also, nobody is inheriting my money. It all goes to charities setup through trusts. My family can make their own damn money.
TLDR: 1) Kids - Providing financial outpatient support before you take care of your own financial future 2) Inflation - Ah well, elections have consequences. Adapt accordingly 3) Risk - Adapt as you age, or suffer the consequences.
Most men lose their money in divorce. The power of family court is never explained to men. They find out in front of the judge. Most of what you own will go to her because it's all a gift to the marriage. Know the laws early in life.
You don’t find that a funny feature of the show? It’s totally ironic & in jest, as he’s doing it on purpose. At this point it would be disappointing not to hear it
![[UNCUT] The Loyal Pin ปิ่นภักดิ์ EP.15 (2/4)](http://i.ytimg.com/vi/qbHbshrA1f0/mqdefault.jpg)
1) Kids 7:23
2) Inflation 31:44
3) Risk 47:48
Thanks!
Very helpful
You guys are the best show about wealth building I’ve seen. You could make shorter, clickbait content like more producers and get more views, but instead you respect your audience and provide levelheaded advice in long form. Keep up the good work!
I would like to point out that someone falling off the Forbes 400 list doesn't necessarily mean they lost wealth. The number 400 spot is constantly increasing in value. 2.9 billion is needed to hold the 400th spot
Exactly!
Yup. Was going to comment about that but will just add a thumbs-up to yours!
They pick and choose data/numbers for a wow factor
"The Psychology of Money" is a dang good read. Highly recommend picking it up.
Care to share some key points that stuck with you?
Yes AGREED!
@@Bshugs You see a nice car and you automatically think of how much money they must have, but it's really a sign of how much money they USED to have!
most impactful financial advice I received - from HS Sociology teacher - don't start out with what your parents ended up with.
@@Dom-xi8je LOL 😆
I could really relate to the segment about Dave Grohl. That kind of sums up my attitude toward money. You never know what's going to happen, and you don't know that you can replicate your current income stream if you were to lose it. It's much better to set yourself up for the future than to spend it carelessly.
How do millionaires lose their wealth, I am going with divorce. My divorce lasted 9 years. I got custody of our daughters and she took everything else. By my estimate, going through 6 attorneys, all of my expenses of raising my children and supporting them through college, internships, Peace Corps, cars, health and auto insurance-that's about a million dollars right there. No regrets, got through it, great kids with great occupations, no debt, have savings for retirement. For me, marriage, one and done. I don't know how people do this three or four times.
The point is to do it right, so you can do one and done, and stay with the one.
@@Mexicobeanpole Do it right? I agree, but sometimes things happen LOL 😆
Divorce is the best way to lose a fortune, next to TV preachers and addictions.
Keep it simple.
Count yo money.
Don’t blow it.
"Don't blow it" is actually step 1. Keep it simple is step 2. Count yo money is step 3.
Running this proven 3 step system in the incorrect order, keeping it simple and then counting yo money before you don't blow it as you suggested, may lead to suboptimal results depending on market conditions and other factors.
Hey Bill
I thought this episode wouldn't connect with me because of the title & me not being a millionaire or thinking the reasons would have been like gambling or lottery winners with bad spending habits & knowing I would never do either but MG Team goes so deep all of their videos help you to learn & prepare & teach others if they're willing to listen. Good job MG Team!
Thanks Nelly 👍
Hey Nelly it’s cool you are on this channel. I am a fan of your music.
@@Abraham.Lincoln22 lol
My thoughts exactly! I hesitated clicking because so many other things seem more appetizing/relevant, but I'm betting there will be nuggets here I will find useful. Keep it up, TMG :)
It's a delicate balance between being frugal and preserving wealth and enjoying fruits of our labor in retirement.
Risk profile, reduce risk as we move towards retirement. Great info...
na. I want to be a billionaire and while money guys love to say 88 times over, if you actually save for around 80 years, it becomes 4k times over. I could be a billionaire by the age of 100 with my current savings rate and compound interest.
>80% of people i knew who bought houses before 35 in CA got down payment help from 1 or both set of parents. I didn't think that was going to be the case in the south, but I was wrong, just slightly less common in my circles and the threshold is younger. Its also tough out here trying to date adult women who are on daddy's payroll.
This is so gooood!!!! 1 hour seems so fast when i’m listening to you guys! Thank you
Great recommendation, The Psychology of Money by M. Housel was excellent. Business Adventures by J.Brooks is another great read. Fantastic show, great content, thank you!
I image over usage of debt, lack of diversification, health issues are the top 3
Naughty timing selection in discussing diversified portfolio performance. Diversification hedges against downturns so selecting a period with heavy downturns will of course make it appealing.
So much of sane advice here. Thank you moneyguys. Always I watch out for your new episodes.
I'm curious what % of millionaires didn't inherit wealth, but came from wealthy families (maybe they just haven't inherited any "yet", so they did become millionaires on their own but they had a strong fiscal support system).
I came from wealthy family but didn’t inherit til later. Best plan my dad had. I had to work hard before I inherited anything. Made me a good steward of moeny
@ 24.50, 77% is the first generation millionaire.
@@dgwilliams65 right that is not an Inheritance, but a huge leg up
When Thomas Stanley wrote the Millionaire Next Door series in the 90s through 2009, the percentage of millionaires who inherited was very small.
Always question someone selling you "get rich quick". If it is that good why are they telling you?
As they say in Chinese, “富不过三代” == “Wealth does not exceed three generations.”
Exactly why I will spend and enjoy most of my money while I'm alive....leave all that money just for the kids to piss it away. No thanks. My legacy to them will be teaching them how to earn and grow wealth themselves.
If you’re confident that you can teach them to be responsible with money, then you should feel confident they won’t piss it away. I’m trying to build a dynasty and teach my kids how to handle it.
Thankyou both for sharing your knowledge with us all , Such a lot of very useful information .
Brian and bo are changing lives!
At 39:29, you mention that businesses pass on their higher costs in the form of higher prices. True. However, customers resist higher prices and seek substitutes when prices reach a certain point. During the last recession, companies like P&G and Unilever noted that people started to buy private labels and shop at EDLP retailers like Walmart and Aldi. Notice that P&G had to come out with a Tide Simple to counter their loss of market share of Tide Original.
I know that when I raised prices on my products, I spend a LOT more time analyzing sales trends to ensure that we did not lose market share.
@the money guy show. I have a question. Why do you use average and then make inferences about what most common person does. Wouldn't median work better in many of your stats. Is there a pragmatic reason like the median stats not existing?
By the way, the real beneficiaries of inflationary policy are those who are heavily in debt. My father was paying his 1960s home mortgage with 1990 dollars which were worth significantly less.
That was stated pretty clearly in the video
That's funny how Brian said he succeeds in this particular time because his particular skillset is good now but I'm willing to bet his success isn't an accident and if he was living in a different civilization/time he would develop the necessary skillsets to thrive
I relate to Brian's statement about that. I'm a software engineer. In this time I can be gainfully employed as a nerd with imperfect social skills, but if I had been born 50 years earlier I'd probably still be able to support myself but with a much lower income. Maybe I could have been a librarian or something...
Depends greatly on the social mobility of the civilization. Most civilizations in history were very hierarchical or even caste, think about feudalism. Being able to change SEC is a novel feature of free societies. It’s one thing about our country we have to value, even though it’s not perfect at this.
The only nit I have to pick with this is in regards to the diversification part at the end. That analysis of the sp500 vs the 60\40 is accurate, but keep in mind that is for someone looking to maintain their existing wealth (makes sense given the title of the video.) Keep in mind though, the numbers will look substantially different for a younger person building their wealth through consistent dollar cost averaging over those years. With the higher volatility all sp500 option coming out much better than it did here.
Again, nothing wrong in what was discussed, as long as viewers keep in mind this isn't directly applicable to all mutants at all stages of life.
I think the regular viewers of the show know how much Brian and Bo encourage DCA for non-retirement age investors
@@richardsnyder5402 Yes, without a doubt. The point I was making is that comparing a lifetime of dca soldiers into a straight sp500 index fund will not come out like that compared to the same amount of dca dollars put into a 60/40 mix.
@@danh2716 I can here to make that same point. I would love to see the slide at 57:47 repeated, but with monthly contributions of like $200 over that same time period.
The stocks Vs inflation data was very skewed towards proving a point. The 1970s saw high levels of inflation but the stock market barely grew!
I backtested snp 500 vs 60/40, and in the end snp was way ahead of 60/40, so regardless where this numbers came from everyone should run the numbers himself than rely on some "analysts"
Yesss I'm glad I'm not the only one who noticed their slides were skewed to prove nonsensical points
Good chart at end about diverse portfolio, but I wonder what the numbers would look like with people who are still buying in the market in S+p 500 fund with dollar cost averaging. I think that would be the better way, ex maxing your 401 k during that time. What do u guys think
Great content. That last slide was gold. Thanks a bunch! Subscribed.
I don't think Bo understands the meaning of decimate. It means to lose one in ten. The term is derived from a punishment in the Roman legions where soldiers would draw lots and one in ten soldiers would then be beaten to death with sticks by their friends.
The 60/40 example at the end is pretty misleading. They cherry picked a start date that happened to occur right before the worst market crash since the Great Depression. They also didn’t mention bonds were in the middle of a 40-year bull run that is now ending. I’d definitely do your own research before even thinking about investing in bonds of any kind, especially to the tune of 40% of your portfolio!
It's not cherry picked. Multiple studies on multiple retirement starting points were used and 60/40 held up. Ironically It's you who is cherry picking. Your assumption is that the state of bonds today will be the same low rate throughout a person's retirement. That's a hell of an assumption.
@@ariefraiser140 The trouble with bonds is that they don't increase in value as interest rates rise - in fact the opposite is true. Falling interest rates are what has caused the bull run in bonds, and they really can't fall any further. That said, I still would only recommend a 0% bond allocation for younger people. Bonds suck but they're still less volatile than stocks. Anyway I would echo the comment about doing some research and going in with eyes open.
@@travis1240 I've done a ton of research but no amount of research will negate the fact that you're bassing your analysis on today's bond rate ie one point in time or if you will a number of recent years point in time while the basis for 60/40 used the bond rates of multiple points in time. For your assumptions to hold true bond rates would have to remain very low throughout a person's retirement and my only point was that's a hell of an assumption.
@Arie Frasier the bonds you buy today won't and can't get better. This is how bonds are unlike stocks. Generally the coupon rate is fixed. If you buy a fund containing longer term bonds and interest rates go up, the value of the fund falls. Likewise, If you buy an individual 10 year bond today, you'll get that low interest rate for the entire 10 years. I don't disagree that in the future there may be better bonds to buy, and I'm not even arguing for a 0% allocation now, despite such low yields. I'm only saying to be aware of that and not blindly follow ratios.
There are situations, though,which take multi- generational help. Severely disabled grandkids- sorry, but $, unfortunately, is critical to getting the needed help and health services. There are situations where all relatives that can help can profoundly change a life in the balance. This should be celebrated and encouraged. I wish I could share my full story which highlights this so profoundly.
I wish there were municipal bonds (triple or double A rated) that had a 5-7% return).....a man can only dream...
You don't need to get your kid a brand new car, but don't stick them in a beater either. In the long run it'll end up costing more in maintenance and lost opportunities than getting a decent reliable used car.
Why should large fortunes persist for generation after generation? I don't see the fundamental problem with 70% of wealth being gone by the 2nd generation and 90% by the 3rd generation. To me that suggests that the generation that earned it is the generation that spent it, or at a minimum that someone they knew and loved spent it. That's how it should be, in my opinion. We don't need any more of these tabloid-fodder trust fund brats.
The journey to wealth is more important than actually being wealthy. Future generations shouldn't be robbed of the opportunity for self actualization that only comes when you forge your own path.
Why is it that we deride "economic outpatient care" for adult children (as we should) but in the same breath lament that more people aren't passing down great-grandpa's fortune to another family generation that never even knew the guy? What's the difference?
So the goal is to make fully independent, self sufficient adult children, but then give them a few million dollars when we die? If all goes to plan they should already have a couple million of their own by then. I don't get it.
"We" don't need that?
What gives you the mistaken impression that your need plays any role at all in the wishes of someone else’s wealth and how they would like their estate to be handled?
@@danh2716 Spare me the indignation and get over yourself. I didn't tell you what to do with your money. If you want to raise the next long line of "do you even know what the f*** my dad does!!" types then be my guest.
I am pointing out the logical inconsistency with the personal-finance dogma on the subject. The idea that "generational-wealth" is something to aspire too, even though subsidizing your adult children is bad. It's irresponsible and makes them weak, unless you're long dead and have a bunch of lawyers and financial advisors involved apparently.
Look at these fools who built a fortune and then, *gasp*, used it for something! Oh the injustice. I guess their descendants will have to actually make something of themselves.
@@dohczeppelin37 I noticed you didn't answer my question...
@@danh2716 Yes because your "question" isn't actually a question. Your comment was a trite and meaningless strawman.
On your point that your kids should have their own millions by the time you pass, that is the perfect scenario for leaving a large legacy. I want to raise children that build their own wealth and that I can trust to manage a large inheritance. I don’t know if I will manage this but it’s an admirable goal many have. Your description is pretty cynical (& certainly does happen) but it’s not a reason not to try to aspire for generational greatness.
I'm not sure the turnover in wealth is that bad a thing. If you are saving for your retirement then the majority of your wealth will be spent during that retirement and if our calculations were correct or the markets were bad during the retirement, then you're not going to have much left in inherited wealth? Do your survey's identify and filter this kind of lifestyle choice out of those that are saving specifically for inheritance? (edited to correct spelling health > wealth)
Good point. In fact, you could probably also make a compelling argument that too little wealth turnover among the wealthiest people is actually destabilizing to the economy and the society they live in. Otherwise it's probably inevitable that you end up with some kind of "ruling class" or aristocracy that lords over everyone else. Some would probably argue we are already there but I don't see it that way.
Either way, it's not necessarily a bad thing in my opinion for someone to spend down most of their wealth over the course of their life. That's probably closer to ideal than the idea of generational-wealth being handed down through families.
Someone count the number of times Brian said "Experience Share" this episode
If I make $50k a year with no 401k option from my work does my 3 buckets for retirement become..
1st. Roth IRA maxed out
2nd. HSA maxed out
3rd. Taxable brokerage account.
Should mention I’m 31 and married with no kids. My wife is in the same situation as me (no work 401k option). Without having a company match or 401k option at all, does my HSA account become that “401k” bucket for distributions that are not health related come retirement time? Or is there something I’m missing here. Maybe I need to open a IRA and a Roth and just split the contributions evenly throughout the year. Looking for clarity with the 3 buckets for retirement without a company 401k option. Thanks. Love the show on here and the podcast. Such great content.
Tim I think you’re off to a very good start. My simple math says that you are putting about 18% of your income into retirement. The Money Guys philosophy is to invest 20 to 25% of your income into retirement. Perhaps when your income increases you could add a IRA. Also, I think it is wise to add money to your taxable brokerage account and not just be retirement heavy on your investments. Maybe you mentioned this but from what I understand your HSA can be used for any expenditure after the age of 65, which in fact turns it into a 401(k).
Not having any children, problem solved 😅
alternatively do a futurama, put your money in S&p 500, go to a cryo sleep for 1000 years for compound interest to do its work. Wake up a trillionaire
Brian and Bo, debt becomes cheaper only when your wages increase in step with inflation. It is not absolutely true that inflation causes debt to be cheaper!
Sure but wages going up with inflation has been happening. It’s a reasonable assumption given wages have been ~flat for decades
If you have grown adult children living at your house you failed as a parent here's your F
Let's not be these pepole lol
Man poor Rick.
Don’t be like mom. Spoiled my sister rotten and my sister is still making my 75 year old mom pay every time they dine out.
Only borrow money to make money. No toy loans.
You heard the lesson of Rick, right? Tread carefully on those paths
Can someone please provide a summary, or the main 3 points. A bit short on time here. Thanks :)
7:16 Kids -- take care of yourself before your kids; know aging parents finances
31:46 Inflation -- own assets (i.e. stocks) rather than have cash above emer. fund
47:50 Risk -- take on risk when young, diversify, phase out risk near retirement
Please react to wall st bets 🙏
Misspelled their
Fast cars gambling a top dog of wealth losing. And women
I’m not going to watch this but I wonder if they’ll have enough balls to mention divorce
18 and the kids out the door. No more help. They will have been given the tools to succeed. from 18 on, not my problem. Then again I dont have kids because they are just waste of time and money. Also, nobody is inheriting my money. It all goes to charities setup through trusts. My family can make their own damn money.
Menit 5 👍👍
You should research fast hair growth fortified shampoo to double hair growth.
TLDR:
1) Kids - Providing financial outpatient support before you take care of your own financial future
2) Inflation - Ah well, elections have consequences. Adapt accordingly
3) Risk - Adapt as you age, or suffer the consequences.
They said nothing about politics or elections in their segment on inflation. To put elections in your TLDR is misrepresenting their presentation.
anyone got the TL:DR for me of this video?
Don’t have kids. Cash is trash. Diversify (kinda, no way I’m putting 40% of my portfolio in 10 yr treasuries unless I’m 85)
Most men lose their money in divorce. The power of family court is never explained to men. They find out in front of the judge. Most of what you own will go to her because it's all a gift to the marriage. Know the laws early in life.
: )
"Yeah Brian, I'm SUPER EXCITED about this show......and every show we do. Blah, Blah, Blah..
You don’t find that a funny feature of the show? It’s totally ironic & in jest, as he’s doing it on purpose. At this point it would be disappointing not to hear it