Keep going buddy I started at 41... was in 7K debt and living in my overdraft. I'm now debt free have a 15K emergency fund. 20K saving pot and just surpassed ~$150K in my brokerage account. Diversification and consistency is key... I am almost 43 now!
I lost a lot chasing individual stocks and I feel pretty silly for not understanding how investing works. I have a double major in economics but I’ve been trying to make sense of the market. Well done on profits!
Great advice here. Keep it simple, buy things you understand, take some risk but don't try to shoot the lights out. I’m invested in ETFs, equity index funds, and individual stocks and use a CFA. On average, she takes 10% of earnings, but using *Lina Dineikiene's* system makes it fairly simple. I conservatively follow her recommendations and market entry and exit points, and tbh this saves me countless hours analysing companies... I am convinced it's not just hard work but smart work :-)
I'm glad you mentioned focusing on the job when you're in your 20s. There's a lot said about being frugal, avoiding debt, etc., early on, and this is great. But the thing that will really jump-start financial success is getting a good-paying job. Formal education may be part of it, but this can be taken further by continuing to learn, developing skills, and networking through your career. Though there isn't a set path to do this and it depends a lot on natural skills and interests, along with luck. But getting a job that pays well makes building wealth so much easier.
I unwittingly followed your car rule when I bought my car after college when I started my first job. I put down 35% and the payment was $280 for 36 months on $86k salary. I’m grateful I had the right instincts on those choices but the truth is I had no idea what I was doing, I just thought more money down and less time on the loan = good. But I’d never do that again. Looking forward to buying all future cars in cash
25, just hit 7k in my Roth. I live with my mom so I can invest more aggressively and save for my emergency fund as well. The only issue is I work a really low-salary job
I’m 27 and have only 9k in my Roth. I’m on a 45k a yr salary. You’re doing good brother, keep going. I’m doing college work on the side so by 30 I can make more. Maybe think of side hustles or a way to make more in the future my friend.
The key is to have multiple jobs. I’m 26 with about $190k from working 2 “low” paying jobs and odd jobs every weekend. Day job went from $15/hr to $25/hr and night job is at $18/hr. Living at home means you have no excuse to not be saving, assuming most if not all your bills are covered and you just spending money on eating out. Its a tough grind but very doable
This show has truly changed my life. I’m now much more financially stable than I was three years ago. At 35, I was a broke, but now, at 38, I have $65K invested, no debt, and my house is paid off. I consistently invest 25% in my Roth 401(k) in addition to my personal Roth IRA. I know I’m a bit late to the game, but like you always say: the best day to invest was yesterday, and the second best is today. Thank you so much, Brian and Bo-you guys are the best! I eagerly wait for your videos and always listen to your podcast at work.
I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my goals.??
Agreed, having a good financial advisor is invaluable, my portfolio is well-matched for every season of the market and has just yielded 120% from early last year. I and my advisor are working on a 7 figure ballpark goal, tho this could take another year.
Julianne Iwersen-Niemann is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
The continuously changing economic conditions in our society have made it necessary for people to find additional sources of income, thus I am looking at the stock market to fuel my retirement goal of $3m, my only concern is the recent market crash.
Every collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass wealth amid economy crisis, and even pull it off easily in favorable conditions. That should be the least of your concern. Also explore the option of working with a CFA to reduce greatly your chances of loss.
You're right, I and a few Neighbors in Bel Air Area work with an Inveestment Adviser who prefers we DCA across other prospective sectors instead of a lump sum purchase. As a result, my portf0lio has recorded significant improvement even during the most unfavorable market season.
You're right, I and a few Neighbors in Bel Air Area work with an Inveestment Adviser who prefers we DCA across other prospective sectors instead of a lump sum purchase. As a result, my portf0lio has recorded significant improvement even during the most unfavorable market season. `
You're right, I and a few Neighbors in Bel Air Area work with a CFA who prefers we DCA across other prospective sectors instead of a lump sum purchase. As a result, my portf0lio has recorded significant improvement even during the most unfavorable market season. `
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?.
People dismiss the importance of advisors until they are burned by their own emotions. I remember a couple of summers ago, following my lengthy divorce, I needed a good boost to assist my business stay alive, so I looked for qualified consultants and came across someone with the highest qualifications. She has helped me raise my reserve from $275k to $850k, despite inflation.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Stacy Lynn Staples is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
We decided for my wife to stay home with our baby and our future babies and now I think we are too poor for the money guy show lol. We were saving/investing 33% on two incomes, but now down to 18% from just one income. Not even close to maxing hsa or 401K 😢. 32 y/o right around 200k invested. Hoping that the early work we did will make things still ok for us.
I'm 24 and putting 15% to retirement, 20% to savings for a house, 50% on needs, and 15% on fun. I still feel like I can't reach the goals that I want. I do value my time a lot, but maybe because I'm impatient? I want to buy a house, but it'll likely take 4-6 years to get the 20% down payment. And the prices will only go up. Not to mention wanting to retire in my 40s. I probably need to wait a few more years to plan this. But 15% is definitely not enough. After inflation, retiring at 45 would only let me spend 40k a year in today's money(I adjusted for inflation). I'm assuming no social security benefits. I'd need to invest 22% of my income to afford 54k per year by 45(adjusted for inflation). Or I'd need a better job. This isn't including any cars, but I'll just fully buy a used car to save some cash on interest. I also bought a Toyota and it has 119k miles on it, I probably have another 180k left on it, so another decade left hopefully.
You actually don’t need to put down 20%. The guys actually recommend that for your first home it completely fine to put down less. Especially with current prices. It’s all about the cost of owning the home. Mortgage, tax, insurance, HOA, regular maintenance, and maybe supplementary insurance like flood/wind. Even if you’re not in a flood zone, anywhere can be a flood zone under the right conditions
We felt discouraged in our twenties because it felt like so little traction was being made. But honestly it's very easy to catch up if you've instilled the discipline and autopilot habits when you're in your twenties. Once the household income shot up in our thirties, we caught up very quickly. Focus on getting good at your career and maintaining that discipline and you'll be fine. Once that compound interest starts to work for you, you'll be amazed.
Why do you guys keep talking about replacing your pre-retirement income? If you are a high earner, what’s the point of doing that? It’s much more important to save a multiple of your expenses instead of your income.
I paid cash for my first car at 17, but it cost $500 + $700 for repairs. I also was making more money than the average teen due to an internship through my school. Really wish I knew about investing back then.
Going from 3.1x at 40 to 12x at 50 is an absolutely wild suggestion. Using your 8% growth suggestion, you'd end up with 6.7x just based on growth (and no further contributions). According to my math, you'd have to save about 34% of your gross income from 40-50 to reach that goal.
I agree! I have been blessed to have increased my salary a great deal since my 20’s but doing the quick math based on my current salary about to begin my fifth decade there is no way I’m even close to this number! I don’t really know if this is based on that original income of my 20’s decade. I hope so because otherwise I’m tapping out 😂
Well the topic is "wealthy" by age so I think it's meant to be in the upper tier of the range. At 39 I'm currently at 5.9x income in invested assets and projecting it out to 49 (with lots of assumptions of course) it looks like roughly 17x income is possible. But it does require a significant savings rate which is probably overkill if you're not hyperfocused on early financial independence as a goal.
If you start at 3.1 and it doubles it's 6.2x. if you invest 25% that's another 3.75x. together it's ~10x. If the market does better or if you income doesn't increase as much then you can hit 12x.
I'm living somewhat frugal now and investing. But would also want to own a house one day and my dreamcar (50k ish), but for some reason I kinda HATE the idea of having to use money that i could be investing.
I totally agree, I am in a house now, but know as the family grows we will need a bigger house sometime in the near future. The thought of spending all that money on a down payment is crazy to me.
@@zackcinq-mars2129 yea like and im checking to use my investments for the loan. So not a regular mortgage but loan backed. But that would take me another 10-15y at least when excluding things such as bonuses, raises and combining finances someday with gf(still studies)
Mid 30's, no kids, single, no debts, and only responsibility is helping my retired parents that I live with, and I have about 7x my income saved. Nice to know that I'm very much ahead of the game. Its also making me think I'm saving too much.
If we are at the point where we save 25% and invest all of this in a S&P500. When it comes to buying a car and paying cash, do use the money we had previously invested or should we have a separate pot for personal purchases?
From $10K to $25k that's the minimum range of profit return every week I think it's not a bad one for me, now I have enough to pay bills and take care of my family.
I am a little bit behind. I make $115k a year, have $260k in my 401k, contributing 23%, and I am 41 years old. Really trying to play catch up. My wife is 33, makes $160k, contributes 22%, and has $250k in her 401k. She is a financial mutant
I would be entertained to see a video of Bo Hansen in real life doing things with his kids and have him starting out meetings and moments in life with "I LOVE [insert anything positive]".
Great point. I love my Tacoma though and plan to keep it for the next 15 years at least if not more. 36000 gone from investing but having no car payment combined with reliability is very nice now.
Great video, I lived it , looking back savings is one part, investing in index funds is another. I plan on retiring in top 5 percent. Hope my health holds out.
I am retiring next yr at 55 with 3 houses paid off worth 4.5 million . One is my place of residence the other 2 properties will give me $80,000per/yr rent . I will have an income stream of $20,000 per yr through my super which gives me total $100,000 a yr to live comfortably . I have no debts
You have done great for yourself. I understand the fact that tomorrow isn't promised to anyone, but investing today is a hard thing to do for me now because I have no idea of how and where to invest in. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.
Starting with investing may feel challenging, but focusing on passive income, like rental properties or REITs, can offer stable returns. Seeking advice from a financial advisor and researching high-demand rental areas can help you find investments that match your goals, ensuring future financial stability.
My CFA Julianne Iwersen Niemann, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I’m 30 with $25k in 401k, $8.5k in Roth IRA, and $70k in cash. I feel like I’ve created the discipline but not so strong in the allocation of money. Any advise on what to do with some of the cash? Or just start bumping up the saving/investing up to 25% for here? Any help would be much appreciated. Big fan of the show
I’m 22 and I feel horrible about myself because I am driving myself away but I do have the plan to get out of it! Wish I would’ve found financial help before but better late then never, I’m not technically driving my wealth away because my 401k contributions are more than my car note, but it’s money I feel like I’m throwing away now :/
I'm 36 and I have 4 years to double what I have to be at 3x income....I'm not sure it's possible but I'm able to invest atleast 1500 a month on top of my 401k contribution of 15%.
I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Brooke Miller.
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
I have two questions, 1 is very involved though. 1. When should someone transition to having a financial advisor-generic rule of thumbs. 2. A financial advisor is going to know a lot more than me, as such when trying to make sure I’m as informed as reasonable, what are some green and red flags to look out for in financial advisors?
I believe they have a guide on their website about questions to ask your financial advisor. As for Q1, they have said generally when your finances gets so complicated that you feel like you can't manage it yourself anymore. That is pretty handwavey though. I have heard from others whenever you get to 500k or 1M net worth. Definitely depends on the individual.
@@zackcinq-mars2129 thank you! I looked over everything. They suggest 1m net worth to get an advisor, but I haven’t seen a list of things to look out for good or bad
Nice video but I don’t think setting gross income multipliers as targets makes any sense. Targets should be based on living expenses. If my savings rate is 50%, you are saying I need 46 times my living expenses for financial independence based on your 23x gross income target, which is close to 2% withdrawal rate. Way off!
@@Guffman30 In their defense it is a simplified formula, most people know what they make, but wayyy fewer have a good grasp on what they spend in a year (not to mention it can fluctuate a lot year to year). I completely agree that the gross income multipliers get way off when dealing with people who save large portions of what they make 40%+, but most people do not save this much, so the formula generally works for most people. Would be good to see them address this though. What I like to do is pretend that I make the dollar amount such that my spending+taxes = 75% of my income. Then I take that as my "income" for these income multiplier videos. Ie if I make 140k/yr and my savings is 65k/yr it means I am spending+taxed 75k/yr. I will then pretend that my income is 75k/(75%)=100k/yr and use this to set my targets. Meaning instead of 12x income being 1.68M my 12x income target is 1.2M. Its still not perfect, but a pretty easy adjustment to make to correct for the issue we are talking about.
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 Brooke Miller for helping me achieve this
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
So does “savings” mean investments (Roth, 401k, etc) + cash savings (monthly cash savings) = 20%? Or does it mean cash savings after your monthly investments?
I currently have $2,000 in my 401k at age 30. Just recently got out of all debt and rent. I am trying to make up for lost time and am investing 50% of my monthly income to try to catch up. I am currently investing $1,500 monthly. How long will it take me to catch up to where I should be at that rate?
That Stephanie Janis Stiefel lady just discovered life on another planet, repaired the ozone, created world peace, defeated Thanos, Darkseid, Apocalypse, the Antimonitor, and Galactus while also repairing the DC and Marvel timelines, and she’s even more excited than Bo.
I have a question for you guys. I have an extra $750 a month to put towards either paying off my mortgage or invest in a brokerage account. My APR is 4.25% on the mortgage. I know investing that money would have a greater return but I also feel like I want to put it towards the mortgage. What should I do? I contribute 20% into a Roth 403b, Max my Roth IRA, & Max out my HSA. I also have 6 months of expenses saved. This is after that
You didn’t say how long is left on the mortgage. And investments might not beat that % because it’s compounded monthly on the principal. Just plug in what you pay monthly into a loan calculator and add the $750. Then go to an investment calculator and say $750/month at 9%. See if you earn more or save more in interest. You also would need to consider, if it’s close, that with no mortgage you can rapidly increase your savings.
Pay it off, I never regretted it. How much risk are you willing to take. Then take that payment amount and invest it, that’s where the real growth comes in
gross income, and no the number doesn't get ridiculous. for the average salary in the us it's less than 1.5m in your investments by the END of your 50's. That's actually pretty low in my opinion. I would hope to have double that or more by then
The planning should be done with your annual spending + health benefits and Roth conversions - SS, pension or any other guaranteed income. I only spend about 30-40% of my total comp and invest the rest. 25-33x of your annual spending (minus SS and pensions) is a good place to be in when you are 62+ y/o but a lot of people have a happy retirement with significantly less money. Retirement planning (taxes, health insurance, diversification, Roth conversions...) is the important part after you have reached that goal.
I've been teaching these things for more than 30 years. I've been able to help a lot of people. I have to say that your content is the best I had ever seen including Dave Ramsey and Suze Orman
Have a question when an employer match’s $ for $ on the first 3% and then $.50 on $ next 2% how do you calculate that in ur savings rate? Say I do 10% would that bump it to 15% or what please help
I'll never unstead paying cash for a 40k car at 6%. 40k in the market at 8% for 6 years is 63k less interest expense of 9k you are positive 13k on the 40k investment.
I think yeah the math works out like that but for such a close percentage we can’t ignore human nature that people most likely aren’t just investing the money they just spend it
I would guess they think if you're buying a new $40k car, you better have enough in your portfolio that this kind of luxury is simply a drop in the bucket of your portfolio value; it's just not worth the stress of additional debt at that point.
Would you consider spending some time in future videos advocating for someone to avoid purchasing a car? Maybe in a video remind people that it is possible depending on their needs to live without a car, and reap the benefits of avoiding insurance, maintenance, and debt, say by using a bike or public transportation instead.
@The Money Guy Show. Does the wealth multiplier formula address inflation? In other words is the result an estimate of Nominal or Real dollars in the future?
@@rebeltheharem7028 On their web page, talking about their formula, it says the opposite: "Our Wealth Multiplier shows what invested dollars could become by age 65, based on historical returns of the S&P 500 (which has annualized over 11% since 1950). However, it does not account for variables such as inflation and taxes. Since 1950, inflation has averaged 3.54% annually." So that would mean its Nominal dollars.
@@rebeltheharem7028 Nominal Dollars. Their website, talking about the formula used, says the opposite: "Our Wealth Multiplier shows what invested dollars could become by age 65, based on historical returns of the S&P 500 (which has annualized over 11% since 1950). However, it does not account for variables such as inflation and taxes. Since 1950, inflation has averaged 3.54% annually."
I currently have a $17,000 car loan with a 3% interest rate, and I've been paying it off for two years now. I have some extra cash, and I’m considering whether I should use it to pay off my car loan early or invest the money instead. I plan to max out my Roth IRA contributions, but I will not be able to fully max out my HSA or 401(k) this year. If I choose to invest the extra cash, it would go into either the HSA or 401(k). Which option would be more financially beneficial in the long run-paying off the car loan or investing
Statistically, over the long term, the investment gain will be greater than the 3% interest savings over the next 3 years. But ultimately it depends on your risk tolerance. If you can't stomach seeing your investments go down 30~40% at any time, then I would recommend paying off the car loan first. If you can, then invest in the 401K or HSA. Just remember, average US inflation is around 2.5% a year, and wage raises are also around 2% a year (obviously depends on your work place), so the loan is actually worth "less" in the future, i.e., it gets cheaper to pay off as time goes forward.
I get that finance content is repetitive, but this feels like an exact replica of so many prior MG vids. Would love to see a different spin on one particular piece, an example on the screen, or something
The show used to be more freewheeling with more diverse content. I remember an episode about economizing at Walt Disney World a few years back. Back in the beginning there were more concrete suggestions as well. It does seem to have become a more corporatized version of its former self geared more towards marketing the firm. Which makes sense given they now have 40 employees. But I agree they need to mix it up a bit more.
@@kuebby that's not entirely true, the "scam" also scammed Grahm, he didn't advertise it to his viewers knowing it was a scam, he just didn't get legit info from them before accepting their sponsor. He never intentionally scammed anyone, just got caught up in a bad situation like many others did.
Goodness. My soon to be wife just started making her big girl money around 300k/yr at 37 (finished residency). That would mean we have to save 3.6mil in 13 years to make it by 50, not including my pay which would be another 2 mil? OOF! You guys are wild.
these are aspirational goals no? to be wealthy at each age group is a lot, even with the 20s balancing out to get 1x income with student loans, bills and car loans when u are figuring things out can be a lot
I think if you have very high incomes and comparatively low expenses then the multiple of income isn't as useful, as what you need to retire is 25-33x expenses.
I have two investment accounts both a good chunk. But I'm wondering if I should merge them to get the compounding to wrk harder, the thing is one is individual stocks and bringing in good returns (slightly better than market) and the other is the market etf/fund. Do I merge or leave it as is, pro for merge is compounding works a bit fast and it's simpler, con I enjoy the individual stock picking and it's going well, and safety concern of putting all the eggs in one service provider. Anyone have any thoughts?
How do you pay for a car in cash and still have the same savings rate? Is that an additinal adder or how do others navigate and think about this? Lets just say you want a 25k used car.
What do you do when you just hit 40 and have zero savings, zero investments, and have debt? It's overwhelming, and I know the boat already sailed, but what do I do now?
Refer to the FOO- save up enough cash to pay your highest deductible, maximize your employer 401k match, aggressively pay off high-interest debt, save up 3-6 months of emergency cash, then work up to 15-25% savings rate (ideally through a Roth IRA, Roth 401k, and HSA). 40 isn't too late, but you do need to be more diligent. Reduce your expenses, increase your income, sell stuff you don't need or use, and focus on what you CAN control.
Lots of people are in your position. Well done for watching the video. This video is the aim if you want to be wealthy so is kind of the ideal. I’d start and try to ramp up your savings rate as quickly as you can
It's so weird watching these guys as they turn a blind eye towards the coming wave in AI and robotics, and how that will impact the world. Assuming the world won't change definitely makes planning easier, though much less likely to actually be correct. That said.. being financially intelligent is still a good idea.
My wife and I are both 34, she works as a teacher and has a pension plan through the state of Kansas for being a teacher. I'm currently investing 10% into my 401k, with a company match of 6% and then I'm sending 5% of my paycheck to a high yield savings account and another 5-10% to mutual funds each month outside of my 401k. Are we doing enough? We got started late (2.5 years ago), and I'm worried about playing catch up.
You are saving over 25% and I’d say you are doing well. If I were you, when you get any raises (or she does), I’d put the majority of it towards saving, and then a bit towards your lifestyle. I’ve kept doing this and raised my savings rate over time to 50%
You gotta save extra. Or hold off on buying a house or saving for kids. If you really want to save for kids and a house, you can truly make it happen. Will you be living on super little, yeah, but that’s ultimately the sacrifice required to reach one’s retirement goals but also do other things, such as save up for kids or a house.
I’ve been watching the for years. You need to know your goals and your why. You should be investing the 25%, kids come after that (they don’t give retirement loans but they do give loans for school and cars). Also, if a house is very important to you and you don’t have wiggle room it is ok to reduce your investments for a small time frame to get the house. Put 3-5% down on the first one. Make sure you are scared for those 1-3 years you reduce your investments so you get back to 25% ASAP. Also, you are ahead of the game if you reach the investing rate of 25% before you are 30-35.
![[안방1열 풀캠4K] 베이비몬스터 'DRIP' (BABYMONSTER FullCam)│@SBS Inkigayo 241110](http://i.ytimg.com/vi/AQ4RIghEvUs/mqdefault.jpg)
Watching in my 40s... And only just starting investing I feel so behind!
Gotta start
Keep going buddy I started at 41... was in 7K debt and living in my overdraft. I'm now debt free have a 15K emergency fund. 20K saving pot and just surpassed ~$150K in my brokerage account. Diversification and consistency is key... I am almost 43 now!
You still have time , keep on dca into your asset of choice.
I lost a lot chasing individual stocks and I feel pretty silly for not understanding how investing works. I have a double major in economics but I’ve been trying to make sense of the market. Well done on profits!
Great advice here. Keep it simple, buy things you understand, take some risk but don't try to shoot the lights out. I’m invested in ETFs, equity index funds, and individual stocks and use a CFA. On average, she takes 10% of earnings, but using *Lina Dineikiene's* system makes it fairly simple. I conservatively follow her recommendations and market entry and exit points, and tbh this saves me countless hours analysing companies... I am convinced it's not just hard work but smart work :-)
If Bo isn’t excited, then I’m not excited
! This !
Luckily Bo is always excited 😂
If bo isn't excited then I'm down right scared of the subject material.
So what you’re saying is that you’re ALWAYS excited.
I’m convinced he’s a southern Baptist youth pastor on the side
35 and only 20k away from hitting the mark for the this decade, which is about 1 year savings for me, how exciting, thanks money guys you made my day.
I was nervous when Bo said, "I love", but then he said he was so excited, so I'm feeling much better!!😂😂😂
Please put timestamps in your videos. It's hard to keep track.
Just watch their highlights, they break down each question or topic into a separate video
Its at 0:11 that Bo gets excited
I'm glad you mentioned focusing on the job when you're in your 20s. There's a lot said about being frugal, avoiding debt, etc., early on, and this is great. But the thing that will really jump-start financial success is getting a good-paying job. Formal education may be part of it, but this can be taken further by continuing to learn, developing skills, and networking through your career. Though there isn't a set path to do this and it depends a lot on natural skills and interests, along with luck. But getting a job that pays well makes building wealth so much easier.
I unwittingly followed your car rule when I bought my car after college when I started my first job. I put down 35% and the payment was $280 for 36 months on $86k salary. I’m grateful I had the right instincts on those choices but the truth is I had no idea what I was doing, I just thought more money down and less time on the loan = good. But I’d never do that again. Looking forward to buying all future cars in cash
You’re a wise person👍
25, just hit 7k in my Roth. I live with my mom so I can invest more aggressively and save for my emergency fund as well. The only issue is I work a really low-salary job
I’m 27 and have only 9k in my Roth. I’m on a 45k a yr salary. You’re doing good brother, keep going. I’m doing college work on the side so by 30 I can make more. Maybe think of side hustles or a way to make more in the future my friend.
The key is to have multiple jobs. I’m 26 with about $190k from working 2 “low” paying jobs and odd jobs every weekend. Day job went from $15/hr to $25/hr and night job is at $18/hr. Living at home means you have no excuse to not be saving, assuming most if not all your bills are covered and you just spending money on eating out. Its a tough grind but very doable
Take advantage of the gift your mom is giving you, get a second job or side hustle to up the income.
All of you here are killing it great job!
@davydavepapi car sales is a good industry to get into. I make about 70k per year. The job is all about quickly building rapport with new customers.
This show has truly changed my life. I’m now much more financially stable than I was three years ago. At 35, I was a broke, but now, at 38, I have $65K invested, no debt, and my house is paid off. I consistently invest 25% in my Roth 401(k) in addition to my personal Roth IRA. I know I’m a bit late to the game, but like you always say: the best day to invest was yesterday, and the second best is today. Thank you so much, Brian and Bo-you guys are the best! I eagerly wait for your videos and always listen to your podcast at work.
I love these videos! It’s not new info, but it’s fresh encouragement! I cannot thank you enough for giving this education for free!
“Love AND excited”
I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my goals.??
Agreed, having a good financial advisor is invaluable, my portfolio is well-matched
for every season of the market and has just yielded 120% from early last year. I and my
advisor are working on a 7 figure ballpark goal, tho this could take another year.
Julianne Iwersen-Niemann is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.
The continuously changing economic conditions in our society have made it necessary for people to find additional sources of income, thus I am looking at the stock market to fuel my retirement goal of $3m, my only concern is the recent market crash.
Every collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass wealth amid economy crisis, and even pull it off easily in favorable conditions. That should be the least of your concern. Also explore the option of working with a CFA to reduce greatly your chances of loss.
You're right, I and a few Neighbors in Bel Air Area work with an Inveestment Adviser who prefers we DCA across other prospective sectors instead of a lump sum purchase. As a result, my portf0lio has recorded significant improvement even during the most unfavorable market season.
You're right, I and a few Neighbors in Bel Air Area work with an Inveestment Adviser who prefers we DCA across other prospective sectors instead of a lump sum purchase. As a result, my portf0lio has recorded significant improvement even during the most unfavorable market season. `
You're right, I and a few Neighbors in Bel Air Area work with a CFA who prefers we DCA across other prospective sectors instead of a lump sum purchase. As a result, my portf0lio has recorded significant improvement even during the most unfavorable market season. `
Bitcoin
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?.
Well as you know bigger risk, bigger results, but such impeccable high-value trades are often carried out by pros.
People dismiss the importance of advisors until they are burned by their own emotions. I remember a couple of summers ago, following my lengthy divorce, I needed a good boost to assist my business stay alive, so I looked for qualified consultants and came across someone with the highest qualifications. She has helped me raise my reserve from $275k to $850k, despite inflation.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Stacy Lynn Staples is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thank you for this amazing tip. I just looked the name up and wrote her.
Love, love, love the content created by Brian and Bo! Keep up the good work, from the UK.
When Bo said hey that’s my line 😂😂😂
We decided for my wife to stay home with our baby and our future babies and now I think we are too poor for the money guy show lol. We were saving/investing 33% on two incomes, but now down to 18% from just one income. Not even close to maxing hsa or 401K 😢. 32 y/o right around 200k invested. Hoping that the early work we did will make things still ok for us.
Absolutely. That's a great number.
I'm 24 and putting 15% to retirement, 20% to savings for a house, 50% on needs, and 15% on fun. I still feel like I can't reach the goals that I want.
I do value my time a lot, but maybe because I'm impatient? I want to buy a house, but it'll likely take 4-6 years to get the 20% down payment. And the prices will only go up.
Not to mention wanting to retire in my 40s. I probably need to wait a few more years to plan this. But 15% is definitely not enough. After inflation, retiring at 45 would only let me spend 40k a year in today's money(I adjusted for inflation). I'm assuming no social security benefits.
I'd need to invest 22% of my income to afford 54k per year by 45(adjusted for inflation). Or I'd need a better job.
This isn't including any cars, but I'll just fully buy a used car to save some cash on interest. I also bought a Toyota and it has 119k miles on it, I probably have another 180k left on it, so another decade left hopefully.
You actually don’t need to put down 20%. The guys actually recommend that for your first home it completely fine to put down less. Especially with current prices.
It’s all about the cost of owning the home. Mortgage, tax, insurance, HOA, regular maintenance, and maybe supplementary insurance like flood/wind. Even if you’re not in a flood zone, anywhere can be a flood zone under the right conditions
We felt discouraged in our twenties because it felt like so little traction was being made. But honestly it's very easy to catch up if you've instilled the discipline and autopilot habits when you're in your twenties. Once the household income shot up in our thirties, we caught up very quickly. Focus on getting good at your career and maintaining that discipline and you'll be fine.
Once that compound interest starts to work for you, you'll be amazed.
And don't be afraid to seek out that better job wherever it may be. A couple cross-country moves later. Our household income has gone up 300%.
Why do you guys keep talking about replacing your pre-retirement income? If you are a high earner, what’s the point of doing that? It’s much more important to save a multiple of your expenses instead of your income.
The math works much easier using percentages of income and applies to everyone.
I'm 37. Wife is 36. We are 108K in the hole. my parents never taught me about how to use money and I am starting from scratch with nothing
🗣🔊.. I absolutely LOVE ❤️ it here‼️
Great quote “…..you don’t want to be all hat no cattle”
I paid cash for my first car at 17, but it cost $500 + $700 for repairs. I also was making more money than the average teen due to an internship through my school. Really wish I knew about investing back then.
Thanks to the ppl takin the surveys much appreciated
Ooh, I like #3 "Your portfolio earns more than you save". Applicable globally.
Going from 3.1x at 40 to 12x at 50 is an absolutely wild suggestion. Using your 8% growth suggestion, you'd end up with 6.7x just based on growth (and no further contributions). According to my math, you'd have to save about 34% of your gross income from 40-50 to reach that goal.
I agree! I have been blessed to have increased my salary a great deal since my 20’s but doing the quick math based on my current salary about to begin my fifth decade there is no way I’m even close to this number! I don’t really know if this is based on that original income of my 20’s decade. I hope so because otherwise I’m tapping out 😂
Well the topic is "wealthy" by age so I think it's meant to be in the upper tier of the range. At 39 I'm currently at 5.9x income in invested assets and projecting it out to 49 (with lots of assumptions of course) it looks like roughly 17x income is possible. But it does require a significant savings rate which is probably overkill if you're not hyperfocused on early financial independence as a goal.
12x at 40 is hilarious and unrealistic.
Well it would be at 49 (exiting the decade) not 40, but I do agree that 12x is incredibly aspirational 😅
If you start at 3.1 and it doubles it's 6.2x. if you invest 25% that's another 3.75x. together it's ~10x. If the market does better or if you income doesn't increase as much then you can hit 12x.
I'm living somewhat frugal now and investing. But would also want to own a house one day and my dreamcar (50k ish), but for some reason I kinda HATE the idea of having to use money that i could be investing.
I totally agree, I am in a house now, but know as the family grows we will need a bigger house sometime in the near future. The thought of spending all that money on a down payment is crazy to me.
@@zackcinq-mars2129 yea like and im checking to use my investments for the loan. So not a regular mortgage but loan backed. But that would take me another 10-15y at least when excluding things such as bonuses, raises and combining finances someday with gf(still studies)
Mid 30's, no kids, single, no debts, and only responsibility is helping my retired parents that I live with, and I have about 7x my income saved.
Nice to know that I'm very much ahead of the game.
Its also making me think I'm saving too much.
If we are at the point where we save 25% and invest all of this in a S&P500. When it comes to buying a car and paying cash, do use the money we had previously invested or should we have a separate pot for personal purchases?
From $10K to $25k that's the minimum range of profit return every week I think it's not a bad one for me, now I have enough to pay bills and take care of my family.
I'm celebrating a $30k stock portfolio today. started this journey with 6k, I have invested on time and also with the right terms now.
Oh, yeah. That was possible with the help of my Guru expert, Jenifer Spencer ❤❤❤❤❤
She's a licensed broker and successful entrepreneur from the state.
That's great!!. I don't know anything about investing and I intend to start. What are your strategies?
The best strategy is starting with a professional coach, as a beginner who knows little or nothing in the market to avoid losing out.
I am a little bit behind. I make $115k a year, have $260k in my 401k, contributing 23%, and I am 41 years old. Really trying to play catch up. My wife is 33, makes $160k, contributes 22%, and has $250k in her 401k. She is a financial mutant
Not at all behind my friend. As long as your other liquid assets are doing well. You should be proud
@@jackhans474 I don’t have much in other liquid assets. My wife has a boat load. So I guess combined we are doing great
one of my favorite episode to keep me on track
I would be entertained to see a video of Bo Hansen in real life doing things with his kids and have him starting out meetings and moments in life with "I LOVE [insert anything positive]".
A new car in your early 20’s could cost you 3-4 million dollars at retirement.
Great point. I love my Tacoma though and plan to keep it for the next 15 years at least if not more. 36000 gone from investing but having no car payment combined with reliability is very nice now.
Great video, I lived it , looking back savings is one part, investing in index funds is another. I plan on retiring in top 5 percent. Hope my health holds out.
I am retiring next yr at 55 with 3 houses paid off worth 4.5 million . One is my place of residence the other 2 properties will give me $80,000per/yr rent . I will have an income stream of $20,000 per yr through my super which gives me total $100,000 a yr to live comfortably . I have no debts
You have done great for yourself. I understand the fact that tomorrow isn't promised to anyone, but investing today is a hard thing to do for me now because I have no idea of how and where to invest in. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.
Starting with investing may feel challenging, but focusing on passive income, like rental properties or REITs, can offer stable returns. Seeking advice from a financial advisor and researching high-demand rental areas can help you find investments that match your goals, ensuring future financial stability.
My CFA Julianne Iwersen Niemann, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Yes, thanks for sharing.
Another bage upload!!!
Here’s to hoping I can catch some of these salaries many currently have. Trying to climb myself out of a hole to have more leeway to save
I am SO EXCITED
I’m 30 with $25k in 401k, $8.5k in Roth IRA, and $70k in cash. I feel like I’ve created the discipline but not so strong in the allocation of money. Any advise on what to do with some of the cash? Or just start bumping up the saving/investing up to 25% for here? Any help would be much appreciated. Big fan of the show
I’m 22 and I feel horrible about myself because I am driving myself away but I do have the plan to get out of it! Wish I would’ve found financial help before but better late then never, I’m not technically driving my wealth away because my 401k contributions are more than my car note, but it’s money I feel like I’m throwing away now :/
I'm excited!
I'm 36 and I have 4 years to double what I have to be at 3x income....I'm not sure it's possible but I'm able to invest atleast 1500 a month on top of my 401k contribution of 15%.
I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Brooke Miller.
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I'm surprised that you just mentioned and recommended Brooke Miller, I met her at a conference in 2018 and we have been working together ever since.
The very first time we tried, we invested $1000 and after a week, we received $5500. That really helped us a lot to pay up our bills.
I'm new at this, please how can I reach her?
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
I have two questions, 1 is very involved though.
1. When should someone transition to having a financial advisor-generic rule of thumbs.
2. A financial advisor is going to know a lot more than me, as such when trying to make sure I’m as informed as reasonable, what are some green and red flags to look out for in financial advisors?
I believe they have a guide on their website about questions to ask your financial advisor.
As for Q1, they have said generally when your finances gets so complicated that you feel like you can't manage it yourself anymore. That is pretty handwavey though. I have heard from others whenever you get to 500k or 1M net worth. Definitely depends on the individual.
@@zackcinq-mars2129 thank you! I looked over everything. They suggest 1m net worth to get an advisor, but I haven’t seen a list of things to look out for good or bad
Never had calculate my investing rate…thought I was below 25%… just did the math I’m at 29.5% :)
I'm so excited for the episode that Bo is not "so excited" about... Just once.. please 😁
When you talk about investment assets, do you include savings and/or equity in your primary residence?
Can ya’ll do an arbitrage deep dive? What it is. What the opportunities are. What to avoid. Thanks! 💰 🤔
Nice video but I don’t think setting gross income multipliers as targets makes any sense. Targets should be based on living expenses. If my savings rate is 50%, you are saying I need 46 times my living expenses for financial independence based on your 23x gross income target, which is close to 2% withdrawal rate. Way off!
Agreed. Multiplying by gross income is non-sensical. You need to look at your expected expense burn at retirement. How do they miss this basic point?
@@Guffman30 In their defense it is a simplified formula, most people know what they make, but wayyy fewer have a good grasp on what they spend in a year (not to mention it can fluctuate a lot year to year). I completely agree that the gross income multipliers get way off when dealing with people who save large portions of what they make 40%+, but most people do not save this much, so the formula generally works for most people. Would be good to see them address this though.
What I like to do is pretend that I make the dollar amount such that my spending+taxes = 75% of my income. Then I take that as my "income" for these income multiplier videos. Ie if I make 140k/yr and my savings is 65k/yr it means I am spending+taxed 75k/yr. I will then pretend that my income is 75k/(75%)=100k/yr and use this to set my targets. Meaning instead of 12x income being 1.68M my 12x income target is 1.2M. Its still not perfect, but a pretty easy adjustment to make to correct for the issue we are talking about.
is the saving rate post tax or pretax ?
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 Brooke Miller for helping me achieve this
The very first time we tried, we invested $1000 and after a week, we received $5500. That really helped us a lot to pay up our bills.
I'm new at this, please how can I reach her?
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
she's mostly on Instagrams, using the user name
FXBROOKE 7 💯.. that's it
This is great! But it assumes you started in your 20s for everything. Catching up in my mid 30s.
Thanks!😊
You are so beautiful 😍 😊
So does “savings” mean investments (Roth, 401k, etc) + cash savings (monthly cash savings) = 20%? Or does it mean cash savings after your monthly investments?
"Savings" is cash savings and investments.
I believe these guys usually use it to mean cash for an emergency fund, then investments beyond that (for the 20-25%)
All investments/assets
I currently have $2,000 in my 401k at age 30. Just recently got out of all debt and rent. I am trying to make up for lost time and am investing 50% of my monthly income to try to catch up. I am currently investing $1,500 monthly. How long will it take me to catch up to where I should be at that rate?
Almost 500k subs guys let’s goo!!
I wonder why yall never talk about the cashflow index. The moment I learned about this, mathematical, it just makes sense.
That Stephanie Janis Stiefel lady just discovered life on another planet, repaired the ozone, created world peace, defeated Thanos, Darkseid, Apocalypse, the Antimonitor, and Galactus while also repairing the DC and Marvel timelines, and she’s even more excited than Bo.
I love that scambot! Please please scambot overlords….lets me use bad English and bless god for my imaginary 30k weeksly from my scambot advisor😂
I want a tshirt with Bo’s face that says I’M EXCITED
When do you fit in saving for a deposit?
Hmm..when did the 25X thing change from annual expenses to annual gross income? It is a like a moving target 😢
With the 23x gross income number, would that include equity in your primary residence?
Seeing into the 2025 future!
Been waiting a year for this!
Why? It's literally always the same.
I have a question for you guys. I have an extra $750 a month to put towards either paying off my mortgage or invest in a brokerage account. My APR is 4.25% on the mortgage. I know investing that money would have a greater return but I also feel like I want to put it towards the mortgage. What should I do?
I contribute 20% into a Roth 403b, Max my Roth IRA, & Max out my HSA. I also have 6 months of expenses saved. This is after that
You didn’t say how long is left on the mortgage. And investments might not beat that % because it’s compounded monthly on the principal. Just plug in what you pay monthly into a loan calculator and add the $750. Then go to an investment calculator and say $750/month at 9%. See if you earn more or save more in interest. You also would need to consider, if it’s close, that with no mortgage you can rapidly increase your savings.
Pay it off, I never regretted it. How much risk are you willing to take. Then take that payment amount and invest it, that’s where the real growth comes in
Did Beau mean 23 times annual expenditures or gross income? If it's gross income, the number becomes ridiculous.
gross income, and no the number doesn't get ridiculous. for the average salary in the us it's less than 1.5m in your investments by the END of your 50's. That's actually pretty low in my opinion. I would hope to have double that or more by then
The planning should be done with your annual spending + health benefits and Roth conversions - SS, pension or any other guaranteed income. I only spend about 30-40% of my total comp and invest the rest. 25-33x of your annual spending (minus SS and pensions) is a good place to be in when you are 62+ y/o but a lot of people have a happy retirement with significantly less money. Retirement planning (taxes, health insurance, diversification, Roth conversions...) is the important part after you have reached that goal.
Just hit 100k in my 401k retirement account no property yet
I've been teaching these things for more than 30 years. I've been able to help a lot of people. I have to say that your content is the best I had ever seen including Dave Ramsey and Suze Orman
Bot
Gotta reach that bowling point! 🎳
If you’re in your 30s, do you mean to invest 25% into a 401k (as an example), or 25% including employer matching?
Great video! Does your house equity count as an invested assets when you're figuring out if you have 3x your annual gross income?
Liquid Invested Assets or Investment Real Estate
Is the 25% savings rate from gross or net income?
Gross, including employee match unless you or your household income is over $100k-$125k/adult
@@2744ducksdman what happens when your household income is over that?
Have a question when an employer match’s $ for $ on the first 3% and then $.50 on $ next 2% how do you calculate that in ur savings rate? Say I do 10% would that bump it to 15% or what please help
When it comes to 20s you say that tou should have the amount of your income in investments. But do you mean monthly income or yearly?
2025 edition? C'mon guys. :p
I'll never unstead paying cash for a 40k car at 6%. 40k in the market at 8% for 6 years is 63k less interest expense of 9k you are positive 13k on the 40k investment.
I think yeah the math works out like that but for such a close percentage we can’t ignore human nature that people most likely aren’t just investing the money they just spend it
I would guess they think if you're buying a new $40k car, you better have enough in your portfolio that this kind of luxury is simply a drop in the bucket of your portfolio value; it's just not worth the stress of additional debt at that point.
If you buy a car with credit you are psychologically more likely to buy a more expensive one than if you pay in cash
Leveraging debt is not for everyone. Takes a certain stomach. %8 each year is the risk there.
I’m so behind! 😭
Would you consider spending some time in future videos advocating for someone to avoid purchasing a car? Maybe in a video remind people that it is possible depending on their needs to live without a car, and reap the benefits of avoiding insurance, maintenance, and debt, say by using a bike or public transportation instead.
@The Money Guy Show. Does the wealth multiplier formula address inflation? In other words is the result an estimate of Nominal or Real dollars in the future?
Real dollars. Most of the time, they use the average return post inflation, because there's no point in pre-inflation adjusted estimates.
@@rebeltheharem7028 Thanks. I read their explanation of the formula but didn't see any mention of inflation or that their avg. return is adjusted.
@@rebeltheharem7028 On their web page, talking about their formula, it says the opposite: "Our Wealth Multiplier shows what invested dollars could become by age 65, based on historical returns of the S&P 500 (which has annualized over 11% since 1950). However, it does not account for variables such as inflation and taxes. Since 1950, inflation has averaged 3.54% annually." So that would mean its Nominal dollars.
@@rebeltheharem7028 Nominal Dollars. Their website, talking about the formula used, says the opposite: "Our Wealth Multiplier shows what invested dollars could become by age 65, based on historical returns of the S&P 500 (which has annualized over 11% since 1950). However, it does not account for variables such as inflation and taxes. Since 1950, inflation has averaged 3.54% annually."
Having 12x your income at age 49 means nothing hard or bad happened in your life to that point. Feels very unrealistic.
What’s a CFA, CPA, CFP, PFS?
I currently have a $17,000 car loan with a 3% interest rate, and I've been paying it off for two years now. I have some extra cash, and I’m considering whether I should use it to pay off my car loan early or invest the money instead. I plan to max out my Roth IRA contributions, but I will not be able to fully max out my HSA or 401(k) this year. If I choose to invest the extra cash, it would go into either the HSA or 401(k). Which option would be more financially beneficial in the long run-paying off the car loan or investing
Statistically, over the long term, the investment gain will be greater than the 3% interest savings over the next 3 years.
But ultimately it depends on your risk tolerance. If you can't stomach seeing your investments go down 30~40% at any time, then I would recommend paying off the car loan first. If you can, then invest in the 401K or HSA.
Just remember, average US inflation is around 2.5% a year, and wage raises are also around 2% a year (obviously depends on your work place), so the loan is actually worth "less" in the future, i.e., it gets cheaper to pay off as time goes forward.
I get that finance content is repetitive, but this feels like an exact replica of so many prior MG vids. Would love to see a different spin on one particular piece, an example on the screen, or something
The show used to be more freewheeling with more diverse content. I remember an episode about economizing at Walt Disney World a few years back. Back in the beginning there were more concrete suggestions as well. It does seem to have become a more corporatized version of its former self geared more towards marketing the firm. Which makes sense given they now have 40 employees. But I agree they need to mix it up a bit more.
reminds me of Graham Stephen. Used to love him but he says the same thing every video so i got bored lol
@@Ravetar101 He's also sold out to scam his viewers... So bored is probably better than believing him.
Financial advice has a celling. There’s no new advice.
@@kuebby that's not entirely true, the "scam" also scammed Grahm, he didn't advertise it to his viewers knowing it was a scam, he just didn't get legit info from them before accepting their sponsor. He never intentionally scammed anyone, just got caught up in a bad situation like many others did.
You scared me there for a second Bo.
Wait...not just so excited?
@moneyguyshow invest in what?
Should some one include the home equity on that invested asset amount?
When you say invested assets are you referring to net worth? So I mean like house, 401k, Roth, brokerage, and emergency savings?
Not the home you live in, that's not an investment, but it is part of your NWorth
Goodness. My soon to be wife just started making her big girl money around 300k/yr at 37 (finished residency). That would mean we have to save 3.6mil in 13 years to make it by 50, not including my pay which would be another 2 mil? OOF! You guys are wild.
these are aspirational goals no? to be wealthy at each age group is a lot, even with the 20s balancing out to get 1x income with student loans, bills and car loans when u are figuring things out can be a lot
Getting started early is the only way this works. With that high of income, hopefully you can save more than 25% per year to catch up.
To be honest - saving that amount (in all your assets) is very aspirational but if your incomes are that high, that seems right.
I think if you have very high incomes and comparatively low expenses then the multiple of income isn't as useful, as what you need to retire is 25-33x expenses.
So when you say "saved 3.1x" do you mean out of pocket or including compounding?
The total balance including everything.
Thank you!! @@isiah675
Fellas…the cybertruck on the shelf? No way that thing is a practical financial choice
It's an abundance goal
I have two investment accounts both a good chunk. But I'm wondering if I should merge them to get the compounding to wrk harder, the thing is one is individual stocks and bringing in good returns (slightly better than market) and the other is the market etf/fund. Do I merge or leave it as is, pro for merge is compounding works a bit fast and it's simpler, con I enjoy the individual stock picking and it's going well, and safety concern of putting all the eggs in one service provider. Anyone have any thoughts?
How do you pay for a car in cash and still have the same savings rate? Is that an additinal adder or how do others navigate and think about this? Lets just say you want a 25k used car.
Just get a new car for that price 😂 and take advantage of the 0% from the manufacturer
@@cormaro13 in oscyzd
What do you do when you just hit 40 and have zero savings, zero investments, and have debt? It's overwhelming, and I know the boat already sailed, but what do I do now?
Refer to the FOO- save up enough cash to pay your highest deductible, maximize your employer 401k match, aggressively pay off high-interest debt, save up 3-6 months of emergency cash, then work up to 15-25% savings rate (ideally through a Roth IRA, Roth 401k, and HSA). 40 isn't too late, but you do need to be more diligent. Reduce your expenses, increase your income, sell stuff you don't need or use, and focus on what you CAN control.
Start. Just start. They always say in other videos the best day to start saving/investing is today.
Lots of people are in your position. Well done for watching the video. This video is the aim if you want to be wealthy so is kind of the ideal. I’d start and try to ramp up your savings rate as quickly as you can
Start saving and budgeting now.... Best time to start is right now
It's so weird watching these guys as they turn a blind eye towards the coming wave in AI and robotics, and how that will impact the world. Assuming the world won't change definitely makes planning easier, though much less likely to actually be correct.
That said.. being financially intelligent is still a good idea.
we're so back
You sound like a Helldiver after that last round of buffs haha
Managed democracy and portfolios
My wife and I are both 34, she works as a teacher and has a pension plan through the state of Kansas for being a teacher. I'm currently investing 10% into my 401k, with a company match of 6% and then I'm sending 5% of my paycheck to a high yield savings account and another 5-10% to mutual funds each month outside of my 401k. Are we doing enough? We got started late (2.5 years ago), and I'm worried about playing catch up.
You are saving over 25% and I’d say you are doing well. If I were you, when you get any raises (or she does), I’d put the majority of it towards saving, and then a bit towards your lifestyle. I’ve kept doing this and raised my savings rate over time to 50%
In “invested income”? So even if I am saving 25% it needs to go into investments? What about buying a house or savings for children?
may be try disposable children? :)
Typically savings are a total of all your saving needs. Large goals, investment, sinking funds etc
You gotta save extra. Or hold off on buying a house or saving for kids. If you really want to save for kids and a house, you can truly make it happen. Will you be living on super little, yeah, but that’s ultimately the sacrifice required to reach one’s retirement goals but also do other things, such as save up for kids or a house.
I’ve been watching the for years. You need to know your goals and your why. You should be investing the 25%, kids come after that (they don’t give retirement loans but they do give loans for school and cars). Also, if a house is very important to you and you don’t have wiggle room it is ok to reduce your investments for a small time frame to get the house. Put 3-5% down on the first one. Make sure you are scared for those 1-3 years you reduce your investments so you get back to 25% ASAP. Also, you are ahead of the game if you reach the investing rate of 25% before you are 30-35.
Also, if you are under $200k income you can include your employer match