I believe the sales numbers are about 45% of S&P 500 company’s revenue comes from international sales. For decades, International funds have returned on average 5%.
Yeah but they are still mostly exposed to the us in terms of their regulatory risk and everything I’ve seen says that they still act like us stocks and not like total market stocks. As the market gets more interconnected they are getting more and more correlated but as of now they are still us companies and still should be diversified with international holdings.
@@mythicsword8169 International stock funds, have for decades, underperformed the S&P500 by about 5%. Any substantial holdings in international funds would have cost me a couple hundred thousand over my 34 years of investing. I know past performance is no guarantee of future performance, but……..
The diversification benefit of international comes from exposure to foreign stock markets themselves, what % of revenue comes from where isn't relevant.
love the content from you guys as always! another thing i would potentially see you all include is talking about walkable cities & living close to work as an alternative to buying cars. so many ppl are forced into the car purchases because of the design of our cities & lack of reliable public transit options that can compete with cars.
Would love to hear a better explanation of the nuisance in deciding between Roth and traditional 401k if you fall with in the 25-30% bracket. How does age, stage in career, multiple incomes, pensions, etc affect this decision.
One thing I've noticed for someone who starts saving later in their career for retirement, such as late 40's or early 50's, they are unlikely to be able to put enough into a traditional to where their withdraws will match their current tax burden. Hence, they should be taking advantage of every dollar in tax savings the accounts offer now, and it probably still won't be enough.
In the 25-30% tax bracket, the traditional 401(k) may seem appealing because it provides an upfront tax deduction. This is valuable if you believe your tax rate will be lower in retirement. However, if you anticipate that tax rates may rise in the future (either because of changes in tax laws or your income sources increasing), the Roth 401(k) can be beneficial as you pay taxes now at your current rate, but all future withdrawals are tax-free.
Of course, if you land somewhere in between and don't have a crystal ball, you can typically divvy up your 401(k) contributions to BOTH buckets based on any ratio you want
To the retirement question: Just gotta reframe it as “we’ll both retire and maintain our standard of living, and then babe if you want to travel, any income you make “in retirement” can go towards travel” 😅
Personally the choice of roth vs traditional in 401k savinhs is personal, my wife and I have large traditional 401k savings. Coming late to the game on roth 401k we are putting most retirement dollars into roth as older folk to bolster the roth bucket being only 10 years out from retirement. Yes we are doing it bass ackwards. But gotta make adjustments when you learn new information.
I work for a Fortune 500 company, a media & entertainment behemoth. No mention of Roth employer match on 401(k) (of course, larger companies are likely to move slower, if anything)
I'm in a similar position as the last question with an age gap as well as desire to retire early versus feeling purpose from the job. Long story short, our situation will put me at "full" retirement at age 48 and her at 55 because that is the year her pension will be full. At that point, it'll be a decision for whether she still feels the desire to do the job versus make the money.
SP500 is market cap weighted… you don’t want stocks equally weighted. Even if you buy a total stock market fund, the top 10 holdings will be 30-40% of the fund. Small and mid caps will not give the same returns as large cap for a reason. By the time a small cap or mid cap has grown, it’s not a small or mid cap 😂 (this is half a joke)
That last part isn't true. Most small caps needs to 10x+ before they leave the small cap status. If you bought Apple while they were a small cap company, you actually would have made more money off of them as a small cap then as a large cap. Small cap indexes historically do outperform large cap indexes over long time horizons for a reason. Granted, that does come with higher volatility.
12:42 What about those who are wanting to save for something down the road but before retirement? If I wanted to put a little extra money towards a house but I don’t see myself buying one for 5 or more years shouldn’t I put it in a tax deferred account so it’s not just sitting in a savings?
Tax deferred accounts typically have penalties for early withdrawal because they are designed to be retirement accounts or used for specific things like school or medical so no, you would likely end up losing money putting them in tax deferred accounts. Generally it's not worth risking losing money investing cash that you plan to use for a home purchase. That being said, if you're okay with postponing buying a house till the markets recover, assuming it drops during those 5 years, then it's okay to invest but it should still be in an after tax brokerage account in my opinion.
@50:00 I'm thinking the same thing and have planned extensively. I plan on retiring early since I'm older than her and then traveling cheap by road with a mattress and then when I find great places along my routes the wife will fly out and join me for a long weakened. Wife wants to keep working since she's not ready to give up that structure in her life. By the time she retires it's going to be some bucket list travel together while one of the adult children watch the house. We could totally swing it if we both got fired tomorrow but we've come to enjoy what our income affords us.
I read that as "cheap by road with a mistress" I was like, the balls to post that. Then I read it again and realized you are just traveling cheap. The wife will be the one with a plus 1.
Around 20:00 the 1.4 million a year docotrs, what is a cash balance plan? Sounds an awful lot like a life insurance policy. They love going after doctors. Run far away.
A company being 7% of an index breaks a rule that no company should be greater than 5% of your portfolio. I would like to see a sqrt ( cap weighted) S&P 500 index. I also add small cap and mid cap. I use an x-ray tool to try to make sure my portfolio is total market weighted. [small, mid, and large cap, and growth, value and blend]
Any company that is 5% of your portfolio and has a sudden increase in share price will be over 5% of the portfolio. Are you selling that individual stock and losing on potencial growth ? No, you invest in the other stocks to balance the portfolio later
To answer Brian's question, my employer is a large US company (40,000+ employees) and they will match 50% of the first 6% of your eligible compensation that you elect as pre-tax OR Roth contributions.
So there's a nuance here - are the *matches* in Roth? (For reference, I'm in a very large Fortune 500 company and they will match either, *but the match itself is always trad*)
@@SoParaholic oh but you left out 15.3% FICA and Medicare tax if you are self-employed, you pay both the employee and the employer portion on around 170,000 and then you pay a 3.8 percent federal surtax because you are too wealthy.
Hello Money Guys! Im 30 and currently making $50,000 a year and putting 25% into my 401k. My wife is in credit card debt for $10,000 and shes had a hard time paying it off. I want to help her out and get it done sooner. Should i drop my 401k contributions to 10% and put the rest to help her? Thank you for the great content as always! -Marshall
Financial mutant here with my thoughts, but not associated with the money guys. Lots of factors to consider there, but just by following the FOO CC debt definitely needs to be paid off as the interest rates are ridiculously high. If she is that far into CC debt then she definitely needs to consume more money guy and other financial content to break the consumer mindset and not build the debt back up after its gone. The worst thing would be to help her pay it down just to have that level of consumer debt creep back up in a few years. As long as you're still getting the company match for 401k you're still doing way better than most at 30.
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Kimberly A. Doran for helping me achieve this.
Just hit $216k in my emergency fund, now I'm ready to dive into investments. I aim to avoid FOMO and look for dips to buy. Am I better off investing into Gold as it seems stocks are a little too unstable right now?
Overall, most investors still think this year would favor stocks, and other equity-based investments over cash-like investments. Don't put all your eggs in one basket; instead, diversify into different asset classes to mitigate risk. If you lack extensive knowledge, consult a CFA.
58% year to date. I’m currently working towards FIRE with a focus on dividends & growth investing. Since 2014, I’ve built a portfolio made up of 30% NVDA, 25% SCHD, 15% VOO 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.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Victoria Louisa Saylor is the advisor I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
The level of dysfunction and corruption within this administration is beyond ridiculous. It’s sad that people who are financially unstable or disabled aren’t getting the help they’re legally entitled to. I’m truly grateful to Kris Lizette Dornbush for making such a positive change in my life. Just think about earning $6k in four days with a $1.5k investment.
Indeed, Kris changed my life in ways I couldn’t have foreseen. She’s the most trustworthy person I’ve encountered. It’s wonderful to know that you’re also connected with her!
Once American made cars are as reliable I’m sure they will. Your comment prompted me to check consumer reports’ list on brand reliability. Toyota is at #2, losing the top spot to their luxury brand Lexus. Chevy, Dodge, and Ford are down the list at 20, 21, and 22.
@@JeremyPerezthat list, is comparing whole brands, not individual vehicles. Regardless, it is still fair if they looked at a particular American car brand, chose the most reliable car they make, and recommended it. Some people want to buy American made. Some people want to see their own country succeed and do what they can to support products made in America.
@@pqfboxing358you committing one of the great weath sins, nationalism over economic prosperity. You say pick the most reliable model how does someone work that out it they have no interest in cars? and you made no suggestions. What they are saying is buy the best 8 to 10 year oldish Toyota or Honda you can afford as it should still be reliable enough to not need expense repairs, which can not be said for US brands. Also if you actual checked Toyota and Honda economy models are actually manufactured in the US, so they are buying used US cars, just the brand is not a US brand.
Bc it is wrong. Vote Harris and get the fker to pay. Trump would never make the rich pay taxes. Trump caused oct 7th and inflation and blaming it on Biden. Look it up.
@@BossMan_Jerm maybe the guy in the video paid. I didn’t listen but millionaires go thru so many loopholes and don’t make an income therefore they don’t pay taxes
@@nothin9891 they paid taxes all their life like everyone else until they got to that point… don’t be mad about legal loopholes. If you had that much money, you would be doing the exact same thing.
![ทุกครั้งที่หลับตา (Lucid Dream) - AYLA's [ Official MV ]](http://i.ytimg.com/vi/4i1OBAQyv58/mqdefault.jpg)
This throw pillow conversation is amazing 😂
The other argument about "international" is that,.. many of the S&P 500 have a significant presence in the international markets.
I believe the sales numbers are about 45% of S&P 500 company’s revenue comes from international sales. For decades, International funds have returned on average 5%.
Yeah but they are still mostly exposed to the us in terms of their regulatory risk and everything I’ve seen says that they still act like us stocks and not like total market stocks. As the market gets more interconnected they are getting more and more correlated but as of now they are still us companies and still should be diversified with international holdings.
@@mythicsword8169 International stock funds, have for decades, underperformed the S&P500 by about 5%. Any substantial holdings in international funds would have cost me a couple hundred thousand over my 34 years of investing. I know past performance is no guarantee of future performance, but……..
The diversification benefit of international comes from exposure to foreign stock markets themselves, what % of revenue comes from where isn't relevant.
@@thesorrow312 The international funds have performed well below the S&P500 for decades. Around 5% below.
love the content from you guys as always! another thing i would potentially see you all include is talking about walkable cities & living close to work as an alternative to buying cars.
so many ppl are forced into the car purchases because of the design of our cities & lack of reliable public transit options that can compete with cars.
The throw pillow tangent might be my favorite Money Guy tangent yet.
Mine too! Had this same conversation with my wife a few times lol!
Facts, hilarious
Would love to hear a better explanation of the nuisance in deciding between Roth and traditional 401k if you fall with in the 25-30% bracket. How does age, stage in career, multiple incomes, pensions, etc affect this decision.
I agree because this would apply to us
One thing I've noticed for someone who starts saving later in their career for retirement, such as late 40's or early 50's, they are unlikely to be able to put enough into a traditional to where their withdraws will match their current tax burden. Hence, they should be taking advantage of every dollar in tax savings the accounts offer now, and it probably still won't be enough.
In the 25-30% tax bracket, the traditional 401(k) may seem appealing because it provides an upfront tax deduction. This is valuable if you believe your tax rate will be lower in retirement. However, if you anticipate that tax rates may rise in the future (either because of changes in tax laws or your income sources increasing), the Roth 401(k) can be beneficial as you pay taxes now at your current rate, but all future withdrawals are tax-free.
Go to someone to run the numbers. This is 100% an individual question. I’d rather pay my taxes now than later.
Of course, if you land somewhere in between and don't have a crystal ball, you can typically divvy up your 401(k) contributions to BOTH buckets based on any ratio you want
There needs to be a clip of the throw pillow analysis
I have a Roth match with my company
My employer started putting Roth match as Roth money. (Company has about 2000 employees)
To the retirement question:
Just gotta reframe it as “we’ll both retire and maintain our standard of living, and then babe if you want to travel, any income you make “in retirement” can go towards travel” 😅
Always learn so much from TMG
Volume is too low. Great show as always.
Personally the choice of roth vs traditional in 401k savinhs is personal, my wife and I have large traditional 401k savings. Coming late to the game on roth 401k we are putting most retirement dollars into roth as older folk to bolster the roth bucket being only 10 years out from retirement. Yes we are doing it bass ackwards. But gotta make adjustments when you learn new information.
21:56 Now this is how you know the legendary duo is in sync. Literally thinking the EXACT same thing at the same time.
I work for a Fortune 500 company, a media & entertainment behemoth. No mention of Roth employer match on 401(k) (of course, larger companies are likely to move slower, if anything)
I'm in a similar position as the last question with an age gap as well as desire to retire early versus feeling purpose from the job. Long story short, our situation will put me at "full" retirement at age 48 and her at 55 because that is the year her pension will be full. At that point, it'll be a decision for whether she still feels the desire to do the job versus make the money.
SP500 is market cap weighted… you don’t want stocks equally weighted.
Even if you buy a total stock market fund, the top 10 holdings will be 30-40% of the fund.
Small and mid caps will not give the same returns as large cap for a reason. By the time a small cap or mid cap has grown, it’s not a small or mid cap 😂 (this is half a joke)
That last part isn't true. Most small caps needs to 10x+ before they leave the small cap status. If you bought Apple while they were a small cap company, you actually would have made more money off of them as a small cap then as a large cap. Small cap indexes historically do outperform large cap indexes over long time horizons for a reason. Granted, that does come with higher volatility.
Is there any episode that Bo doesn't get soooo excited at the beginning?
Sometimes he’s only excited
12:42 What about those who are wanting to save for something down the road but before retirement? If I wanted to put a little extra money towards a house but I don’t see myself buying one for 5 or more years shouldn’t I put it in a tax deferred account so it’s not just sitting in a savings?
Tax deferred accounts typically have penalties for early withdrawal because they are designed to be retirement accounts or used for specific things like school or medical so no, you would likely end up losing money putting them in tax deferred accounts. Generally it's not worth risking losing money investing cash that you plan to use for a home purchase. That being said, if you're okay with postponing buying a house till the markets recover, assuming it drops during those 5 years, then it's okay to invest but it should still be in an after tax brokerage account in my opinion.
How do I get a question to them?
I think you just ask during the livestream. You can try putting a question here, but I'm not sure if they read comments
Love this Content!!
@50:00 I'm thinking the same thing and have planned extensively. I plan on retiring early since I'm older than her and then traveling cheap by road with a mattress and then when I find great places along my routes the wife will fly out and join me for a long weakened. Wife wants to keep working since she's not ready to give up that structure in her life. By the time she retires it's going to be some bucket list travel together while one of the adult children watch the house. We could totally swing it if we both got fired tomorrow but we've come to enjoy what our income affords us.
I read that as "cheap by road with a mistress" I was like, the balls to post that. Then I read it again and realized you are just traveling cheap. The wife will be the one with a plus 1.
My company still hasnt implemented putting the match in a Roth 401k, otherwise, id definitely be doing that 😊
I’ve checked with both my employer and Fidelity and they only allow the match to go into pre-tax even though my contributions are Roth.
The employer has to set it up and it’s not something you turn on or off.
I don't see throw pillows on the Financial Order of Operations. Check-mate wives
Good luck with that logic
Abundance goals. 😆
Why don't you do a video on NIO
Around 20:00 the 1.4 million a year docotrs, what is a cash balance plan? Sounds an awful lot like a life insurance policy. They love going after doctors. Run far away.
Bo is saving money on razor blades.
❤❤❤
A company being 7% of an index breaks a rule that no company should be greater than 5% of your portfolio. I would like to see a sqrt ( cap weighted) S&P 500 index. I also add small cap and mid cap. I use an x-ray tool to try to make sure my portfolio is total market weighted. [small, mid, and large cap, and growth, value and blend]
Any company that is 5% of your portfolio and has a sudden increase in share price will be over 5% of the portfolio. Are you selling that individual stock and losing on potencial growth ? No, you invest in the other stocks to balance the portfolio later
The throw pillow karate chop is out of fashion now, from what I've heard 😂
To answer Brian's question, my employer is a large US company (40,000+ employees) and they will match 50% of the first 6% of your eligible compensation that you elect as pre-tax OR Roth contributions.
So there's a nuance here - are the *matches* in Roth? (For reference, I'm in a very large Fortune 500 company and they will match either, *but the match itself is always trad*)
Yo-yo on a long hike up a mountain.
My wife's employer match goes into a roth 401k. She works for a major fast food chain headquarters.
My employer offers 4% Roth match just started this year
Self employed household making 1.4 million in California will pay over 60% in income taxes.
Fed marginal tax rate is 37. California tax rate is 12.3
@@SoParaholic oh but you left out 15.3% FICA and Medicare tax if you are self-employed, you pay both the employee and the employer portion on around 170,000 and then you pay a 3.8 percent federal surtax because you are too wealthy.
The man retires, and the wife goes to work so he won't drive her crazy.
I'm going to own my car until it becomes an antique
An ad?????!
AWS Matches 401k Roth
Hello Money Guys! Im 30 and currently making $50,000 a year and putting 25% into my 401k. My wife is in credit card debt for $10,000 and shes had a hard time paying it off. I want to help her out and get it done sooner. Should i drop my 401k contributions to 10% and put the rest to help her? Thank you for the great content as always! -Marshall
Financial mutant here with my thoughts, but not associated with the money guys.
Lots of factors to consider there, but just by following the FOO CC debt definitely needs to be paid off as the interest rates are ridiculously high. If she is that far into CC debt then she definitely needs to consume more money guy and other financial content to break the consumer mindset and not build the debt back up after its gone. The worst thing would be to help her pay it down just to have that level of consumer debt creep back up in a few years. As long as you're still getting the company match for 401k you're still doing way better than most at 30.
You asked. All of my employer match is tax deferred.
: )
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Kimberly A. Doran for helping me achieve this.
Just hit $216k in my emergency fund, now I'm ready to dive into investments. I aim to avoid FOMO and look for dips to buy. Am I better off investing into Gold as it seems stocks are a little too unstable right now?
Overall, most investors still think this year would favor stocks, and other equity-based investments over cash-like investments. Don't put all your eggs in one basket; instead, diversify into different asset classes to mitigate risk. If you lack extensive knowledge, consult a CFA.
58% year to date. I’m currently working towards FIRE with a focus on dividends & growth investing. Since 2014, I’ve built a portfolio made up of 30% NVDA, 25% SCHD, 15% VOO 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.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Victoria Louisa Saylor is the advisor I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Am I crazy or is there constant breathing in the background? I’m not sure if it’s Rebie’s mic or someone else’s
I have never noticed that.
Must be Bo's excitement
I doubt they have someone mixing the audio live. They could potentially fix that by placing audio gates on each channel.
@@rapfreak7797 yeah needs a little higher noise gate
Boo look like he got tan😊
The level of dysfunction and corruption within this administration is beyond ridiculous. It’s sad that people who are financially unstable or disabled aren’t getting the help they’re legally entitled to. I’m truly grateful to Kris Lizette Dornbush for making such a positive change in my life. Just think about earning $6k in four days with a $1.5k investment.
Indeed, Kris changed my life in ways I couldn’t have foreseen. She’s the most trustworthy person I’ve encountered. It’s wonderful to know that you’re also connected with her!
This is an incredible opportunity! Can you tell me how I can get in touch with her?
Look up her full name on the web, and you’ll find comprehensive information available on her website.
When you recommend a 'reliable' car, you only recommend Toyota or Honda. I wish you would also recommend an American made car like Ford or Chevrolet.
Once American made cars are as reliable I’m sure they will. Your comment prompted me to check consumer reports’ list on brand reliability.
Toyota is at #2, losing the top spot to their luxury brand Lexus.
Chevy, Dodge, and Ford are down the list at 20, 21, and 22.
@@JeremyPerezthat list, is comparing whole brands, not individual vehicles. Regardless, it is still fair if they looked at a particular American car brand, chose the most reliable car they make, and recommended it. Some people want to buy American made. Some people want to see their own country succeed and do what they can to support products made in America.
@@pqfboxing358you committing one of the great weath sins, nationalism over economic prosperity.
You say pick the most reliable model how does someone work that out it they have no interest in cars? and you made no suggestions.
What they are saying is buy the best 8 to 10 year oldish Toyota or Honda you can afford as it should still be reliable enough to not need expense repairs, which can not be said for US brands.
Also if you actual checked Toyota and Honda economy models are actually manufactured in the US, so they are buying used US cars, just the brand is not a US brand.
Hearing someone with a million yearly income combined, saving a hundred thousand in taxes feels so wrong.
Bc it is wrong. Vote Harris and get the fker to pay. Trump would never make the rich pay taxes. Trump caused oct 7th and inflation and blaming it on Biden. Look it up.
When they already pay 400k in taxes?
@@BossMan_Jerm no. They don’t make income. How can they pay taxes.
@@BossMan_Jerm maybe the guy in the video paid. I didn’t listen but millionaires go thru so many loopholes and don’t make an income therefore they don’t pay taxes
@@nothin9891 they paid taxes all their life like everyone else until they got to that point… don’t be mad about legal loopholes. If you had that much money, you would be doing the exact same thing.