Financial Planning 101 (By Age) - The Complete Guide to Winning Financially
ฝัง
- เผยแพร่เมื่อ 28 ก.ย. 2024
- Financial Planning 101 (By Age) - The Complete Guide to Winning Financially
Take Your Finances to the Next Level ➡️ Subscribe now: www.youtube.co...
Download FREE Financial Resources from the show ➡️ www.moneyguy.c...
Sign up for the Financial Order of Operations course ➡️ learn.moneyguy...
Download The Money Guy Net Worth Tool ➡️ learn.moneyguy...
Our professional focus is on financial planning and investment management, and we leverage our knowledge for your benefit. We help you focus on the things you can control and manage the things you can’t. Visit our site for more info ➡️ www.moneyguy.c...
Facebook: / themoneyguyshow
Instagram: / moneyguyshow
Twitter: / moneyguyshow
TikTok: / moneyguyshow
Let’s make sure you’re on the path to financial success - then help you stay there!
The Money Guy Show takes the edge off of personal finance. We’re financial advisors that believe anyone can be wealthy! First, LEARN smart financial principles. Next, APPLY those principles! Then watch your finances GROW!
We can’t wait to see you accomplish your goals and reach financial freedom! New shows every week on TH-cam and your favorite podcast app. Thanks for coming along on the journey with us.
![[TH] FS vs BME - VCT Ascension Pacific - Lower Bracket Final](http://i.ytimg.com/vi/wnygqsR2Fig/mqdefault.jpg)
Some time it just blows my mind that all this is free on the internet. Thank you guys!
Exactly!
Abundance Cycle at work = the more we give away the faster we seem to grow and prosper. I love creating win - win scenarios ❤️👍
@@MoneyGuyShow hhh
@@MoneyGuyShow hhhhh
im 24, started to take my finances seriously at 22. I feel good 👍
I recently inherited almost $500k. I REALLY need to make this money work for me, and not just disappear over time. All roads have pointed to the equity market of some sort which is a good idea buh where else should I put money besides the equity/stock market?
Consider hiring financial advisors, estate planners or tax experts. They can provide specialized knowledge and help you navigate complex financial decisions.
This goes to show how essential it is prominence of financial advice before taking a jump at whatever. Glad to have found your page.
Most people don’t plan to fail they fail to plan........John Beckley
I truly wish I would have known all this and the other things you teach 10 years ago.. it's going to be one hell of a mountain to climb now but I guess at least I started learning now at 30 rather than later in life... thanks to all of you for insuring I have the information to pass on to my children so they do not grow up as ignorant as I have
It's never too late to start Markg330! Good luck in your journey.
What are you complaining about. I'm in my forties
Tell me about it 😂
6:00 - One way to enjoy life on the cheap that I heard from Mr. Money Mustache: when it comes to the weekend, make a list of all the fun things that you would want to do over two days. Then organize it by cost, cheapest first. Then, just start doing the stuff on your list until you run out of weekend. You'll have fun (since you made this list of fun things) and it won't cost too much.
I basically do this. I spend my weekdays working mostly and weekday evenings chilling with my family, not really interested in going out. But on the weekends, I just have the most energy (still young, early 20s), I’m pumped to get out and about. So will do the things I enjoy/have fun, usually go to a restaurant or club. I’m soo simple and basic tbh, so usually enjoy the cheaper things in life like hikes, reading, watching movies, personal finance content etc.
I don’t have any very expensive hobbies tbh, it’s just holidays but again, I don’t care about travelling lots. Once a year is fine. So Mr Money Mostache’s principles are pretty easy for me to implement 😂💕
Y'all do things other than sleep on your weekends?
If Bo is only excited and not super excited, I don't watch the show.
Noooo don’t perpetuate this. We’re here for the information, not the hype.
I predicted that Bo would be super excited about this topic, and I was right!!
Honestly this was excellent! Very well thought out. I consume tons of financial content (for years) and sometimes feel I won’t hear anything new. This however was refreshing. Excellent!
Will we ever see..................."The Money Guys" Show? :) Asking for Bo
I am learning so much from watching your videos. Thank you so much for sharing this amazing source of information. This one is quite helpful.
I'm hooked. These guys are great
Can you please do a deeper dive on the rule of 55? Thanks for great content!
17 right now started investing in stocks around mid october 2022 and i have roughly 1,600 in my account with over $600 in dividends and over the summer i do stock options. I did a trial run on options for about a week in nov. and made a little over $100. I know $1,600 isnt too much but im hoping that by the time im 30 ill be able to retire off of dividends and stocks
19:19 I feel attacked. Of course I needed the $14k custom bar installed in the basement that I will only use for Super Bowl parties and for my kids when they get to be teens and want to hang out in the basement.
36:02 I liked that one too, Bo. I love it when you two come up with different ways to help the audience visualize and relate to the importance of self-discipline and especially enacting that self-discipline early on. Great video, Money Guy team.
Love the video. Can you guys expand on this and let us know how we can teach financial planning to our kids? I wish my parents raised me with financial planning as a part of life. Why wait until you’re 20 to start learning?
I am coming up on 63. According to Fidelity I need about 12× my curent income in (ira, 401k) retirement funds. Almost at that amount. Planning to retirement at my FRA, 67. How do i plan a little ahead for distribution?
Thank you.
Dale
Thank you so much for the contents guys!
Not many people make 25 percent more than they need to live.
What would be the FOO for teens? How much does it change?
This is my fifth year after retirement. I’ve been following the 4% rule thing, but this isn’t really how hard I expected things to be. I still have about $460k outside funds in my IRA to invest in stocks. Pls how do I take advantage of the market turnaround?
now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.
Yes true, I have been in touch with a financial advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
There are a lot of independent advisors you might look into. But i work with Nicole Desiree Simon , and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her
Just when you think you're doing great, the boys bring up estate planning.
We ready, we ready, we ready for y'all!
Love you guys; this is great comprehensive content! I agree with you guys 99% of the time, however, I have to disagree with you guys on pushing Target Date Funds right now.
Every TD fund I've seen starts you off with at least 10% in bonds even with a long time horizon. With this high inflation/Rising rates environment, that portion of your portfolio is a guaranteed loss with negative real returns for years to come.
For young people just starting to invest, having any bond exposure right now is just throwing a portion of your "army" on the front lines without a weapon.
For all parents out there, for the love of god invest in your retirement. If you truly love your kids, you won’t force them take care of you because you lacked basic financial knowledge. You want your kids to use their wealth for their own families, not to pay for you to stay alive, that seriously hinders your kids. It sounds harsh but it’s true. Your kids should want to help you out because they want to, not because they have to. That’s how it is
16:49 Year 30s baby
Why is the investment tips on gross income?
Should i be saving 25% of my gross income or 25% of the wage they gets put into my bank account (aka after taxes)
25% of before tax doesn't make sense to me? To make plans and investment based on pre-taxed money.
Every month i get x amount of money in my bank account from my job. Tax already taken. That's the money i have to pay my rent invest etc.
Some of the investment accounts (traditional 401k and IRA, HSA, etc.) are pretax. So you always start your planning from your income before taxes as the starting point.
I have zero net worth. 400k in student loans and single mom now. Im already in my mid40s. What is the first step . My ex left us homeless
Random unimportant comment :
I miss the bookshelf with the sub counter :/
There are ways to eat healthy and cheaper. It will never be as cheap as eating only ramen but you will pay far more in health costs if you don’t eat healthy
I think I over invest, I'm 19 make 40k a year with OT and I invest in a roth IRA and Roth 401k. I max out my roth, and do 12% towards my 401k (is about $200 every 2 weeks). I feel like i'm investing a bit too much anyone have any advice?
Well if your 19 and making 40k. Maxing your Roth IRA and putting 12% to 401k your unvesring quite a bit of money for your age. It will pay off in the long run all the cash your investing now. Great job!!!
When I was younger i did a similar thing. Problem was When I got a little older and wanted to do some things I was retirement richer and cash flow poorer. I've had the opportunity to change that but, had I started about 5 is 6 years earlier, in your age range, it would definitely have changed the equation. So some food for thought. Sorry it's long winded.
I would caution you to look at how much you have in savings outside of retirement. You are young so the assumption would be your probably living with parents or guardians and not having to pay rent or much of it if you are. Of course not knowing the full situation it's hard to advise but fallow the financial order of operation.
If you don't have much as a emergency fund I would set a goal of 6 months to 1 year of spending. It helps if you get laid off, fired, or if you just dont ever want to worry about the rising prices of things. Also could help you if you do decide to go to school, or change careers. You'll see the security blanket and feel better. Im 43 and the last 2 years during the pandemic I thankfully, have been continuously employed. However, I didn't really worry to much about losing my job because my emergency fund would sustain me for quite a bit if it needed to.
Also if you haven't moved out that savings will happen quickly, but be mindful of what your 6 month or 1 year fund would look like if you were on your own, paying rent or a mortgage. Maybe make sure you have extra cushion. Then when you do get on your own (if your not already) your not having to start saving to increase it then at that time.
Are you wanting to further your education? Save money for that so you don't go into any unnecessary debt. If your looking to buy a home, start setting that money aside. If your not planing on doing that in the next 5 years get it into a non retirement account and start investing for that goal. That way you get the growth. If it's under 5 years save it cash. Markets go up and down and you don't want to lose any cash on short term investing.
Maybe save for a car. Is your current vehicle good? Is it paid off? If so having a non retirement investment account set up with 20k to 30k for a car will allow you to car hack if you already have a reliable car. Letting that money grow until you need a car and buying one cash for 10k to 15k and the rest starts building again for the next one. Or allows you to make your "car payment" be like 100 or so for future vehicles on top of it so you can keep up with the inflationary cost. It's something people don't think of doing but is really nice when your older and you can not worry about that expense. You just pull the cash and buy the car. The leftovers keep building and you feel peace knowing you can pay for repairs or replacement should you need.
There are lots of things you can do at this point. If you are not spending because you have free rent take total advantage and set up your future. Your older self will be thanking your younger self later in life. You'll watch your friends family and acquaintances struggle by trying to be like everyone else always having the new and improved stuff. Chances are they won't fully understand why your calm cool and collected when life's little rainy days don't seem to affect you like they would everyone else. You'll know your covered, cuz you prepared for it while you were younger.
As long as your other responsibilities are taken care of your golden
Ahh welcome to my train of thought brother I’m 20 I max out my Roth IRA and I put 25percent into my Roth 401k. I started at 18 not as much I’m doing now but a decent amount. This is something I still struggle with if I’m doing enough or to much. The best advice I can tell you is what my financial advisor told me “What your doing is great but don’t live in the spreadsheet set some money for fun” There’s never to much investing it’s what am I sacrificing to invest this much. If your sacrificing waaaaaaay to much than I would cut back a little
I agree with what everyone else said! As long as you're not investing so much that you sleep in a shed and eat only what you can scrounge from a dumpster, it's not bad to be investing a lot now. Because investing a lot now means a few things in the future: you will have a ton of money for retirement, or maybe you're able to retire earlier than 65. Neither is a bad situation to be in!
Keep it up! The power of compounding Is incredible, so you are making steps on a path your future self will high 5 you for!!
Is "side rail" a southern saying?
Is it not a saying in the north?
I’ve heard it before down here in the south. Putting up “side rails” or “guardrails” to keep you on track (like guardrails between lanes on a highway)
@@DrWarBear it sounded like a combination of side track and derail
Frosted Flakes and Cinnamon Toast Crunch
Ugh! Some player's coach get the best out of players by understanding their players better than field general coaches.
4:10 how Bo would sound if he was born in South London
but wait, somebody on Tick Tock told me to cash out my ROTH and buy Whole Life. I'm confused 😄
I just realized what a waste of time education is
Automatic.for the people...REM reference Brian? 😁
Athens GA reference 😉👍
I do love both REM, UGA, and Athens 🙏
@@MoneyGuyShow I did wonder if it was by design when I heard it.
This team, literally, changed my financial life
*It requires money to make money. this is the best secret I have ever discovered we don’t make money, we EARN and MULTIPLY money......*
I can’t believe this video is free. God bless you and your families. Thank you.
I found you guys in my late 30’s I’m glad I did I wish it was a few years earlier but the knowledge is useful to implement at any age
Thanks for uploading! I was late to the show so I really appreciate this. 😄
These videos get better and better every time! Thanks guys
You guys are awesome for tips and realistic pictures that coming up.We r on our 50s but our son his 20s but he is very much buying buying kind specially computer stuff, how can we help him ?
In what aspect are you trying to help him with as a 20 year old I think I can shine some light for you
It depends on what he will be doing with the computer stuff, if he is using it to make money I would be less worried. Sit down with him and learn what he has planned, not to judge either it's a good or bad plan, but to understand what he wants to do. For years many parents tried to get their kids to stop playing video games, but many of these kids have gone in to become programmers engineers, computer technicians, etc. Likewise, there are kids who where into cosplaying as their favorite fantasy and science fiction characters who have gone on to become successful in the fashion industry. Just as many into sports have started their own gyms, become fitness trainers, etc.
I have often wondered if the 25% of your gross income includes your employers match when calculating. For example, if you put in 10% and your employer puts in 4% does that indicate you are at 14%?
MG Team has said if you make less than 200k you can count the match towards 25%, if you make more than 200k do not count the match towards the 25%.
nice, thanks for the talk
The body language between the two interacting just seems off. Something’s up
Wonderful to see a great video of good content. we all have to win in order to overcome recession and inflation
The stock market provides a place where companies raise capital by selling shares or shares to investors. Shares give shareholders voting rights, as well as a residual claim on corporate earnings in the form of capital gains and dividends.
But it is better to Invest in Cryptocurrencies because you earn more and better.
In my role as a financial planner, I serve clients with different income levels. But my goal is the same for everyone I know. I want to help wealthy families continue to grow wealth while helping young families achieve their financial goals. Your investment creates a safe haven for the future and helps you weather the economic crisis
>
INSTAGRAM
You guys are the best!!! I've been listening to you all for 10 years now and my financial outlook has improved GREATLY because of it. Thank you!
“Pay yourself first” Givens.
That’s when I woke (no, not that one) up in the 80’s.
Where is Financial Planning 101 for the 90 year old?
Automatic For The People!!
QUESTION FOR THE MONEY GUY SHOW:
First of all, I would like to say how awesome you guys are. I found the show a few months ago and have been hooked ever since. Also, Bo, thanks for sharing your background in a lot of the shows. I also grew up in extreme poverty, but I have been blessed enough to be able to break the cycle and am now trying to build success.
The Question:
My wife will become eligible for a 401k plan through her employer later this year. Should she opt for a roth 401k if possible?
For context:
My wife and I are both 23 years old, and we are currently working towards Step 4 in the FOO. I have a pension that I contribute 10% of my income to (my employer contributes 14%). I also contribute a small amount to a Roth 457b. Our household income is right around $100k.
Roth, you're most likely at the lowest income bracket you'll ever be at and it has a lot of time to grow. Hit all the Roth you can while you are young.
If they match at all getting the full match will be your #1 priority even if they don't offer a Roth
This made me laugh. 😅
Another great show. Thanks for sharing your knowledge.
Best video so far. Simple to the point
Is this in Athens ga. I feel like I know your faces.
3:00
I’m curious on your take on counting your PTO bank towards emergency fund? My work has 500 PTO max.
No way! Pto is icing on the Cake
Absolutely not. PTO bank is just a bonus. Emergency fund is liquid cash.
This needs time markers
I reccomend setting up a trust instead of a will.
That gets a lot more expensive fast, and is not always appropriate.
It depends on your state, and in some cases a trust can protect your family's assets. When someone gets old and long term care, many states require they sell their assets to pay for care before Medicare kicks in. If assets are in a trust, they will be protected and can be passed on to children rather than being sold to pay for the parents care.
25% savings? After 30+% tax what do you live on??
unless you are making no money it's really not hard to live off 50% of you're income
You have to make a fairly high salary to be paying 30% in taxes. Unless you live in a state with really high state taxes.
That house purchase age statistic shocks me. My wife and I are 20 & 23 respectively and we just closed on our first house this past May. Of course, that was largely possible due to both of us having no debt, living for our first year rent-free in a building owned by family, and both of us working full-time with a side gig giving us a few hundred dollars a month. Now we're gonna buckle down and get our degrees and start building those savings.
Dang I would kill to have family members that let me live with them for free. You are lucky my friend. That’s awesome and you should be very happy you’re saving and thinking about your financial future
@@daveisdead Thanks for the reply - yes we are super blessed.
Also, to update my comment from a year ago - We paid off our first car last month, I graduated with my bachelors in accounting last week, we took out a cheap 3-year loan on a rebuilt 2018 this week, and just today we found out we're expecting! It's been an insane year - God just won't stop blessing us.
Hi! I found money guys not too long ago, and really appreciate the insight. My parents have money, but I never really got a financial education. You guys and a few other youtubers have got me more interested in personal finance and making money.
I had a question/request: you go over what 20s should be doing in general terms, but can you be a bit more specific? You talk a lot about the 20 year old’s dollar being worth more than the 40 year olds because of compounding interest in the stock market, so we should live thriftier and put more in our Roth IRAs. How does this balance for the literal 20 year old, who might not be working a lot because they’re in college, or might be at least partially supported by their parents? Basically, the advice for young people is to invest as much as they can as early as they can because of the growth potential of time. How does that translate to people who have money coming in or saved up while still dependents?
I’m 21, going to college on full scholarship and my parents pay for my housing and food. I have a fair bit of money saved up from my childhood and working summers, and just got a low-paying, minimal-hours job for during the semester. How much money should I be keeping in an emergency fund/saved for the near future when I expect my present income in to be almost negligible? I don’t want to wait to invest it until after I graduate because of how much less valuable those dollars will be even two years later. Should I keep 1K, 5K, more, less? Thanks so much for all the free financial education and resources, it really motivated me to do something NOW for my financial future rather than wait until I have an actual career.
The benefit of time is that you don’t have to invest as much to get the same outcome as someone starting later. You may hear them talk about “88 times over”, which means every dollar of a 20 year old is worth $88 at age 65. The same conditions indicate that to have $1Million at 65 you need to contribute $95/month. The recommendation is to work up to contributing 20-25% of your gross income by your 30’s. If you can do those things, you’ll be in good shape for retirement.
To your specific question about emergency fund, I hear what you’re saying that 6 months income might not be a good indicator. Think about what would constitute an emergency for you. Maybe that’s a car problem for example or perhaps to be able to take advantage of opportunities (unpaid internship, transition from school to job, travel/conference). Sounds like you don’t need much cushion before diving into investing. On your point about inflation decreasing the value of your money, if it’s just a few thousand, a few dollars lost is worth it to keep you out of the ditch. At my age in the 40s, I have to keep tens of thousands to keep my children and family safe through any job loss or significant emergency, and even though inflation is still a downside, it’s totally worth it to not have to worry that everyone will be ok. Rely on your growth assets to stay ahead of inflation overall.
I’m twenty I’ve been listening to them for a year I keep 5000 on hand. 4500 in my capital one that I can get in two to three business days. The other 500 in my chase bank saving account that I can get access to as soon as possible. I’m in the same situation as you I don’t have debt of any kind and my parents take care of pretty much everything. Now on to the reason 5g well that’s very simple it’s a 6months+ of what I live on. Do the math on what you spend a week times by 4 than by 6. I spend less than the 5g but I feel better if I have a little more incase something absolutely terrible happens. Like both my parents die and I have to take over everything. Filing for the life insurance and figuring out all the mess left behind takes time. I recommend you read I will teach you to be rich it’s a great book a little corny author. I’ll send you a copy on audible if you would like
Can you explain the aspect of having 3-6 months of expenses in cash. Would you consider investing account liquid enough for this? I am not worried about losing my job. (0% risk of it in the next few years) and even if I lose my job I could get one quickly. Should I still have 3-6 months of expenses in cash? That is between 9k-18k for me, which seems too much. I currently have more then that because I knew the market was overpriced back in 2020, but my plan is to start averaging in soon. I just want to know how much I should put in.
Cash is like oxygen - we all take it for granted until you are underwater- yes you need 3-6 months of cash 👍
Great advice. Thank you for all the help over the years.
How much should a 50 something have saved to be millionaires
To be a millionaire at any age you need about $1,000,000 saved, give or take.
They did a video on this just a couple weeks ago. Look at their channel videos and find how to become a millionaire by age.
@@jeumd lmao
I'm 62 and finally debt-free but with no real assets beyond 6-month savings. I guess I'm screwed because no plan seems to address the needs of older people on a fixed income. It would be great if somebody came up with a financial plan for us...
Same content, new video
I can remember when I had a similar feeling after recognizing the concepts and lessons of Carnegie, Stanley, Covey, and Buffett all intersected and even seemed redundant. There comes a point in everyone’s life where you take the education and turn it into action. If you know everything we are going to say memorized I commend you and also nudge you to take the next step - congrats 🍾
@@MoneyGuyShow like a true financial mutant! Thanks for the reply
I've bought 2 different houses both in my 20's and neither was over 150k lol