The fact that you climbed out of debt and poverty and have any savings at all is a very good sign that you’ll do just fine going forward, you are definitely winning
Congrats. This is an absolute win. Most Americans cannot cover a $1000 emergency. You're in a situation to likely never have to go into debt to cover needs when life happens. All you have to do now is keep your foot on the gas. You can't rest on your laurels because you're out of debt and have some emergency savings. Keep living frugally and start putting that money that you were putting towards debt into a tax-advantaged/employer sponsored retirement plan. As you get raises, keep raising the amount you put towards retirement until you max out a 401k/IRA. Allow yourself a LITTLE bit of comfort creep, because it's important to enjoy life as you live it, but do what you can to stave off full-on lifestyle creep. Congrats, though. You're killing it compared to most.
At 37, all my debts paid off but not a home owner & my retirement numbers was around 80000. 2 years later thanks to bigger investing, retirement numbers over $140000.
Super thankful to have found you guys last year. Wife and I were always good savers, but we were operating under a lot of Ramsey financial advice/ our family's advice which was leaving a lot of dollars on the table. (paying down our 3% mortgage at age 26 doesn't make a whole lot of sense when we weren't even funding our Roth IRAs). Definitely following Foo now, thanks for all the financial advice.
Take today to be the moment of change. Yes. Unfortunately, people are using "am going to be broke forever" as a badge and spreading it on social media. Make a change even if you only start with a dollar
At 40, i was divorced and maxed out on debt to pay her out in one shot. I held on to the house but fully mortgaged. I had to live like i did in college. Debt snowball method worked in 2 years and i kept living like that for 5 more. 52 now and i hit my minimum financial freedom number! Im lucky/driven enough that i can let off the gas a bit and live well now while watching my nest egg continue to grow. Living proof that debt snowball (altho i do still have my mortgage at
Most TDFs are a bad choice for anyone remotely interested in DIY anyways. My options at work start deallocating from equities and into bonds at 10-15% like 30 years out still.
I know I’m behind, but luckily I have a vested pension. I might actually be able to max out my IRA for the first time this year. Have been saving faster than I ever have before.
The Roth dollar cost average question went over their heads. You can contribute all at once and wait to actually invest the funds into the market, which is what Connie asked about. I think if it was a significant portion of their net worth, dollar cost averaging would be good otherwise just invest all at once for simplicity 36:00
I’m 62 and want to retire in 6 months. I have a 30K annuity, plus a 401k depleted to 150K of money that I’m not sure what I can do with at this point. My retirement plans seem to be out the window. Is it a good idea to get professional help?
With everything going on, consider financial planning, … that is okay. You can get your money to work for you. but I would say delay retirement a little.
I have heard how they can help you make the best decisions and to be honest I don’t want to lose anymore money or I will have to work a job in retirement to sustain for God knows how long.
And what if that is all you have, even with SS you may not have enough to retire with. If you opt to work with a financial adviser, Dyor, make sure they are certified from AARP or FINRA.
It’s a good idea to look for a fiduciary who has a legal obligation to work in your best interest and can’t recommend products or services just because they’ll receive a financial kickback for doing so. I and my spouse work with a retirement planner, Monica Mary Strigle an advisor we met in NY, referred by Danielle Dimartino Booth in an interview. Under her guidance, we split our investments, traditional IRA and the individual brokerage account where she copies her moves on our account from her master. We have been up by 74% precisely in the past year She rebalanced again when the year began, we still hold cash and are cautious with how much we let into the market at this point.
I am regretting not investing in Nvidia stocks ever since my wife did. But still grateful i kept money in the money market. With about $200k maturing soon, i plan investing well in it. But then what other stocks should I look into as a newbie to safely grow my money?
Just out yesterday my New Employer matches 10% on 401k. I was so surprised. I can’t start until I’m a year in so I have a few more months. But 10% is absolutely insane. My old employer was 6% and that was great.
@@BooBae123 Yikes. That's slightly better than nothing I guess haha. I've never heard of anybody doing 25% match before I think the lowest I've seen is 40.
Awesome!!! Absolutely get that 10%. I did enough to get the matching when I was a new hire and was saving for a down payment on a house. Once I had the house, I increased my contribution a percent or two each time I got a pay raise until I was maxed out.
Are you really not able to start for a year? Or would they allow you to invest your money and just not make the match? If really a year, save the amount you would have put in into a Roth IRA. If you still have money left over, put into taxable investments or savings if you haven't maxed your emergency fund yet.
I don’t think anyone who cares about this stuff ever feels ahead, unless they make multiple six figures. I’m 39 with a net worth of over 600K and yet I’m still scared I won’t have enough for retirement. Objectively I’m ahead but I feel behind.
Depends on if your networth is mostly in your primary residence. If yes, you have some investing to do, but all isn't lost. 20 years is still a long time to catch up
Ha! That’s funny you feel behind. But 39 with $600k, you’re going to have well over $3M (that’s being low - I bet $5M) especially if you maintain solid amount of contributing. Honestly, if I were you, I’d stop and smell the roses a bit, you’re crushing more than 99% of people I know (including self) and I am 50. And I’m doing solid.
@@ThorMaximus thank you for saying that. I’ve learned from Ramit Sethi that our feelings towards money (I.e. me feeling behind) has nothing to do with the actual amount we have.
I'm about to turn 22 with $6.5k in the bank, a paid off car (paid $9k for it), $5000 in 401k. I feel behind lol. I follow all of their advice now. I'm active duty army. I'm in college (it's free) i save most of my money now but damn i wish i started at 18.
If you're starting at 0 at age 37, to replace 60% of your income at retirement you'd need to save and invest 15% of your income (assuming 10% average returns, 3% inflation, retirement age of 67). I'd still save 25% if you can so you have a safety margin in case of a rough economy and lower growth, but retirement is still within reach.
I am conservative with my estimations. I always assume a 6% rate of return. I think you should hope for 10% and assume more of a 7-8% return. 10% seems a bit aggressive especially when nearing retirement.
Great show and super helpful content as always. I have to say, based on the body language of Bo when Brian said a will and trust do completely different things (23:12), I don’t think he agrees with that statement and might be holding back saying what he really thinks.
Man, 37 must be a common age for waking up to the reality of personal finance. That was the age I realized I need to make changes quickly if I ever was going to be financially stable.
At 48 I took a hard look at what I was spending money on. Cut all the nonsense spending, paid my truck & house off it a matter of 6 months, and am now putting 50% of my gross away at 50.
42:56 kinda underemphasized the second part of the Mega Backdoor Roth requirements. 1. Employer provided retirement plan allows for non-Roth after-tax contributions 2. Plan also allows for in-plan conversions / in-service rollovers I want to blame the Brian tangent but I think actually Bo got distracted by being excited about the $69k (nice) 2024 limit.
Need to insert at 41:00 a take of Bo saying "And then if your retirement plan provider allows for either in-plan conversions or in-service rollovers you can convert those assets as Roth dollars or roll them into a Roth account, without any additional tax consequences today because you've already paid income tax on that money so in the future, as with all Roth assets, instead of being taxed on the gains your withdraws will tax free."
It's relatively rare to have a plan offer this, from what I have seen. So it's kind of annoying to keep hearing everyone talk about it as an option, it isn't for vast majority of people
I have been feeling bad listening to these videos because I'm in my late 40s and still in debt. But it dawned on me that although I may never retire, it doesn't mean I'll be poor. Especially if I continue to save. I'm doing 20% now in my 401k. And once I finish my master's degree I'm going to go FIRE. I think I'll be able to cross the finish line with a decent amount of money for a kid from the slums of Baltimore haha.
Only started saving 5 years ago and felt like I was so far behind that I put aside 60% for a few years. I need help finding a comfortable level to come down to because the sacrifice is unsustainable. Only 250k net worth now but retiring in just 20 years.
I had initially planned to retire at 62, work part-time, and save money, but the impact of high prices on various goods and services has significantly disrupted my retirement plan. I'm worried about whether those who experienced the 2008 financial crisis had it easier than I currently am. The volatility of the stock market is a concern as my income has decreased, and I fear that I won't be able to contribute as much as before, potentially jeopardizing my retirement savings.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
How old are you? If you're within 10 years of retirement, you may want to be a Money Guy (or other fiduciary advisor) client so they can run the numbers for you.
@@glasshalffull2930 1. Helps with down years 2. Makes the investor less likely to cash out during volatility 3. Easy and reasonable entry point without dozens of hours of research
If the grad program that the nursing couple is going to is Nurse Practitioner, they should definitely go for it, even with investing only two digits a month. NPs make so much, they are qualified to give a lot of the healthcare that medical doctors give 💚
I'm 39 and just realized my employer offers a Roth in addition to traditional 401k. I switched my contribution to roth. But do you have any advice on Roth conversion? About 300k in traditional 401k.
I wouldn't worry about it, with the way our tax system works it's better to do some Roth and some traditional so you can take advantage of low tax brackets.
What elmatao said, you can essentially withdraw around 50k a year from traditional right now and only pay 10% fed taxes. I'm sure you are in a much higher bracket now.
My companies 401K & ROTH 401K matches up to 25%. I'm currently at 12%, i make $105K per year. I have about $7,500 in debt & then my mortgage at 2.5APR. Would you suggest contributing to an Index Target Retirement Fund or bumping up to a higher Company match?
matched money is 100% ROI. I'm no finance expert, but if I were you I'd immediately start maximizing that match. If you can cut back a bit on lifestyle and get that debt paid off you're golden. 2.5% home loan is great especially if you're experiencing appreciation. If that appreciation is above 2.5% (my market is far above that) then you're essentially making money off the leverage your home loan created.
HOW DO I CATCH UP? 1. Increase net income to increase net worth - this could mean reducing operating expenses, not increasing revenue (ie. my mom once took a 2nd job but then realized that the family costs went up) 2. Increase personal value and skill - Jobs will come and go; but your attitude, work ethic, and skill set stays with you. 3. Increase positive communication - if married, your spouse is your most valuable treasure and business partner - (ie. My wife keeps me on track with what's important and motivated to achieve our goals 4. Increase productive work communication - often increasing hours or position at an existing job is more sustainable when done properly (ie. More than once, I have seen people miss out on a 25% raise because they are rushing to a 3-4hr 2nd job. 5. Increase giving lifestyle - neighborhood giving and bartering has been discounted over the last 3-5 decades, but there is something upliftingly beautiful about people that work together (ie. Growing up we often had at least one neighbour we could ask for some sugar, eggs, etc. We in turn would help mow, rake, or shovel when needed
With stock market positive 8.5yrs out of ten, does it really make sense to "go conservative" (more bonds, less stocks) until you are VERY close to retirement?
Nope. I would keep 80% in the S&P. 10% - 15% in an HYSA (so you can pull from here if the market drops, while waiting for the eventual recovery). 5-10% in cash (this is where you would draw from for your yearly needs).
Normally yeah I'd stick with close to 100% equities/ real estate until you're within about 10 years of retirement or less, but with interest rates being what they are now and likely to drop in the next few years bonds aren't looking too bad...
way behind and also lower income by the time I have a decent income, i'll probably need to contribute 50% of my income to maybe catch up. the numbers i see on here and read in the comments are crazy to me.
Agree. First they should talk about what a student loan means for your financial life, talk about compounding interest and how that spirals. It would be great to talk about the different repayment options and how your tax filing status impacts your ability to get on certain plans. It would be good to look at different earning brackets within each decade of age and how to set a budget to pay down the balance while also investing.
While I agree that could be useful to some people, I’ve also observed that they don’t talk much about budgeting. They have talked about when to payoff a student loan (when is it considered high or low interest debt for the FOO). Made this comment before seeing the whole video; this is what they always say (aside from the classic rule of limiting loans to the first year excepted income).
@@chemquests Perhaps not budgeting per se, but prioritization, maybe. For example, if you are over 40 with a student loan at 6% but don't have much in your 401k and your employer has a generous match, they'll tell probably tell you to take the match. BUT we know that if we do one of the income-based repayment plans, we're paying less than the accruing interest each month. At the end there will be a gigantic tax b0mb at the end. How do we plan for that?
They need to rename this show The Money Guys. It needs to be plural. There’s two guys. Two. For two people who are supposed to be good with numbers, this should not be hard. Thank you.😑
For some people it actually might be too late. They should probably cash out all of their investments and savings and just try to win big on a memecoin.
![[Full] 4 ต่อ 4 Celebrity EP.922 | 10 พ.ย. 67 | one31](http://i.ytimg.com/vi/zmV5HRIxIBI/mqdefault.jpg)
As a late 30s who has recently wiggled out of poverty, just paid off debt, less than 50k in savings, no home, I see this as a win.
congrats on the win!
The fact that you climbed out of debt and poverty and have any savings at all is a very good sign that you’ll do just fine going forward, you are definitely winning
That’s awesome 👏 Congratulations 🎉 and keep it up!
Congrats. This is an absolute win. Most Americans cannot cover a $1000 emergency. You're in a situation to likely never have to go into debt to cover needs when life happens. All you have to do now is keep your foot on the gas. You can't rest on your laurels because you're out of debt and have some emergency savings. Keep living frugally and start putting that money that you were putting towards debt into a tax-advantaged/employer sponsored retirement plan. As you get raises, keep raising the amount you put towards retirement until you max out a 401k/IRA. Allow yourself a LITTLE bit of comfort creep, because it's important to enjoy life as you live it, but do what you can to stave off full-on lifestyle creep. Congrats, though. You're killing it compared to most.
Out of debt is huge!
I can only imagine Bo started his wedding vows with I’m So Excited
😂
I missed the start. Is Bo excited?
So excited
He’s SO excited!
SO excited
Oh SO excited
I’m sure he was 😂❤
At 37, all my debts paid off but not a home owner & my retirement numbers was around 80000. 2 years later thanks to bigger investing, retirement numbers over $140000.
You are so beautiful 😍 😊
Super thankful to have found you guys last year. Wife and I were always good savers, but we were operating under a lot of Ramsey financial advice/ our family's advice which was leaving a lot of dollars on the table. (paying down our 3% mortgage at age 26 doesn't make a whole lot of sense when we weren't even funding our Roth IRAs). Definitely following Foo now, thanks for all the financial advice.
Should have done an April Fool’s episode where Bo wasn’t excited 😆
Take today to be the moment of change. Yes. Unfortunately, people are using "am going to be broke forever" as a badge and spreading it on social media. Make a change even if you only start with a dollar
At 40, i was divorced and maxed out on debt to pay her out in one shot. I held on to the house but fully mortgaged. I had to live like i did in college.
Debt snowball method worked in 2 years and i kept living like that for 5 more.
52 now and i hit my minimum financial freedom number! Im lucky/driven enough that i can let off the gas a bit and live well now while watching my nest egg continue to grow.
Living proof that debt snowball (altho i do still have my mortgage at
My 401k has T Rowe Price TDFs but they are actively managed. 😢 So I put my money in the S&P 500 index fund and said “See ya!” to the Target Date Fund.
Most TDFs are a bad choice for anyone remotely interested in DIY anyways. My options at work start deallocating from equities and into bonds at 10-15% like 30 years out still.
Love this content! And love all the side bars and tangents too. Seeing the personality of everyone is so great. Thank you for humanizing finances!!
Doing my bit to share the good work you do (from the UK!). Shared the FOO with my financial freedom church small group last week! :) Thank you !
I know I’m behind, but luckily I have a vested pension. I might actually be able to max out my IRA for the first time this year. Have been saving faster than I ever have before.
Congrats. That fantastic. I hope in 3 years to make out my Roth IRA for the first time .
Working through debt payoff for the next 19 months
The Roth dollar cost average question went over their heads. You can contribute all at once and wait to actually invest the funds into the market, which is what Connie asked about. I think if it was a significant portion of their net worth, dollar cost averaging would be good otherwise just invest all at once for simplicity 36:00
Catching up is a great topic. Would love to see more strategies here
I’m 62 and want to retire in 6 months. I have a 30K annuity, plus a 401k depleted to 150K of money that I’m not sure what I can do with at this point. My retirement plans seem to be out the window. Is it a good idea to get professional help?
With everything going on, consider financial planning, … that is okay. You can get your money to work for you. but I would say delay retirement a little.
I have heard how they can help you make the best decisions and to be honest I don’t want to lose anymore money or I will have to work a job in retirement to sustain for God knows how long.
And what if that is all you have, even with SS you may not have enough to retire with. If you opt to work with a financial adviser, Dyor, make sure they are certified from AARP or FINRA.
It’s a good idea to look for a fiduciary who has a legal obligation to work in your best interest and can’t recommend products or services just because they’ll receive a financial kickback for doing so. I and my spouse work with a retirement planner, Monica Mary Strigle an advisor we met in NY, referred by Danielle Dimartino Booth in an interview. Under her guidance, we split our investments, traditional IRA and the individual brokerage account where she copies her moves on our account from her master. We have been up by 74% precisely in the past year She rebalanced again when the year began, we still hold cash and are cautious with how much we let into the market at this point.
hello Javier Rodri can I get the contact info of the person you work with?
It’s been fun to watch Brian’s hair evolution break away from the Kirby Smart approach over the years. Looking good!
I am regretting not investing in Nvidia stocks ever since my wife did. But still grateful i kept money in the money market. With about $200k maturing soon, i plan investing well in it. But then what other stocks should I look into as a newbie to safely grow my money?
Do you mind sharing info on the adviser who assisted you?
Thank you for the lead. I searched her up, and I have sent her a message. I hope she gets back to me soon.
Just out yesterday my New Employer matches 10% on 401k. I was so surprised. I can’t start until I’m a year in so I have a few more months. But 10% is absolutely insane. My old employer was 6% and that was great.
That is really good. My current employer does a 50% match on up to 6% so effectively 3% :(
My employer does 25% of 6% so basically 1.5%
@@BooBae123 Yikes. That's slightly better than nothing I guess haha. I've never heard of anybody doing 25% match before I think the lowest I've seen is 40.
Awesome!!! Absolutely get that 10%. I did enough to get the matching when I was a new hire and was saving for a down payment on a house. Once I had the house, I increased my contribution a percent or two each time I got a pay raise until I was maxed out.
Are you really not able to start for a year? Or would they allow you to invest your money and just not make the match?
If really a year, save the amount you would have put in into a Roth IRA. If you still have money left over, put into taxable investments or savings if you haven't maxed your emergency fund yet.
I don’t think anyone who cares about this stuff ever feels ahead, unless they make multiple six figures. I’m 39 with a net worth of over 600K and yet I’m still scared I won’t have enough for retirement. Objectively I’m ahead but I feel behind.
Depends on if your networth is mostly in your primary residence. If yes, you have some investing to do, but all isn't lost. 20 years is still a long time to catch up
@@vulpixelful No its diversified. About half primary residence and half index fund
Same for me and about half/half. Still some principle left to pay on house, but I like to have more liquid assets.
Ha! That’s funny you feel behind. But 39 with $600k, you’re going to have well over $3M (that’s being low - I bet $5M) especially if you maintain solid amount of contributing.
Honestly, if I were you, I’d stop and smell the roses a bit, you’re crushing more than 99% of people I know (including self) and I am 50.
And I’m doing solid.
@@ThorMaximus thank you for saying that. I’ve learned from Ramit Sethi that our feelings towards money (I.e. me feeling behind) has nothing to do with the actual amount we have.
I like how Bo says "'interesting"
I'm about to turn 22 with $6.5k in the bank, a paid off car (paid $9k for it), $5000 in 401k. I feel behind lol. I follow all of their advice now. I'm active duty army. I'm in college (it's free) i save most of my money now but damn i wish i started at 18.
Keep upnthe good work! You are doing it.
You are like 1,000,000% ahead of the game!
Dude, you are so NOT behind, you are way ahead of most other 20-somethings in debt and buying stupid expensive cars. Keep it up
You're not $100k in debt for a worthless degree in poetry or some such, so you're way ahead of most people your age haha
Just the knowledge alone makes you ahead even if you had $20 in 401k
If you're starting at 0 at age 37, to replace 60% of your income at retirement you'd need to save and invest 15% of your income (assuming 10% average returns, 3% inflation, retirement age of 67). I'd still save 25% if you can so you have a safety margin in case of a rough economy and lower growth, but retirement is still within reach.
I am conservative with my estimations. I always assume a 6% rate of return. I think you should hope for 10% and assume more of a 7-8% return. 10% seems a bit aggressive especially when nearing retirement.
Great show and super helpful content as always. I have to say, based on the body language of Bo when Brian said a will and trust do completely different things (23:12), I don’t think he agrees with that statement and might be holding back saying what he really thinks.
Man, 37 must be a common age for waking up to the reality of personal finance. That was the age I realized I need to make changes quickly if I ever was going to be financially stable.
I just turned 38 a month ago, and I was saying that to my wife that something happened in year 37 that just snapped me into reality. 🥂
35 for me but close enough lol
At 48 I took a hard look at what I was spending money on. Cut all the nonsense spending, paid my truck & house off it a matter of 6 months, and am now putting 50% of my gross away at 50.
42:56 kinda underemphasized the second part of the Mega Backdoor Roth requirements.
1. Employer provided retirement plan allows for non-Roth after-tax contributions
2. Plan also allows for in-plan conversions / in-service rollovers
I want to blame the Brian tangent but I think actually Bo got distracted by being excited about the $69k (nice) 2024 limit.
Need to insert at 41:00 a take of Bo saying "And then if your retirement plan provider allows for either in-plan conversions or in-service rollovers you can convert those assets as Roth dollars or roll them into a Roth account, without any additional tax consequences today because you've already paid income tax on that money so in the future, as with all Roth assets, instead of being taxed on the gains your withdraws will tax free."
It's relatively rare to have a plan offer this, from what I have seen. So it's kind of annoying to keep hearing everyone talk about it as an option, it isn't for vast majority of people
I have been feeling bad listening to these videos because I'm in my late 40s and still in debt. But it dawned on me that although I may never retire, it doesn't mean I'll be poor. Especially if I continue to save. I'm doing 20% now in my 401k. And once I finish my master's degree I'm going to go FIRE. I think I'll be able to cross the finish line with a decent amount of money for a kid from the slums of Baltimore haha.
Only started saving 5 years ago and felt like I was so far behind that I put aside 60% for a few years. I need help finding a comfortable level to come down to because the sacrifice is unsustainable. Only 250k net worth now but retiring in just 20 years.
The best time to plant a tree was 20 years ago. The second best time is today.
35:45 "Think if you had to go to sleep with this brain!" 😂 This is going to keep me up at night... 😁
I had initially planned to retire at 62, work part-time, and save money, but the impact of high prices on various goods and services has significantly disrupted my retirement plan. I'm worried about whether those who experienced the 2008 financial crisis had it easier than I currently am. The volatility of the stock market is a concern as my income has decreased, and I fear that I won't be able to contribute as much as before, potentially jeopardizing my retirement savings.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
How old are you? If you're within 10 years of retirement, you may want to be a Money Guy (or other fiduciary advisor) client so they can run the numbers for you.
@@arh1234It's a bot/scammer.
If your retirement account already offers roth contributions, should you still prioritize step 5 over step 6?
I think the idea is greater control/options and lower fees in IRAs. If it's a good 401k, it's probably a wash.
I am 21 with a networth of about 150 000 and i felt behind financialy.
I am feeling a lot better now.
Target funds are meh..:they push them big time on this channel tho
Why are target funds meh? Index, of course.
@@arh1234 Why does someone who is 10 or 15 years out from retirement need bonds and government securities that are averaging below 5%?
@@glasshalffull2930 1. Helps with down years 2. Makes the investor less likely to cash out during volatility 3. Easy and reasonable entry point without dozens of hours of research
I've been reading about Growth ETFs online as a way to boost investments. What do you think?
If the grad program that the nursing couple is going to is Nurse Practitioner, they should definitely go for it, even with investing only two digits a month. NPs make so much, they are qualified to give a lot of the healthcare that medical doctors give 💚
RNs can make a lot, too - sometimes, going for NP cam be a paycut. Depends on what kind of work is desired.
@@arh1234 Yeah but the RN usually has to put in exceptional effort to earn as much as an NP does just by doing their job
The ending!!! Absolutely hilarious
Aw man, it’s April fools! Bo had a chance to not be excited. Would’ve fooled all of us.
I'm 39 and just realized my employer offers a Roth in addition to traditional 401k. I switched my contribution to roth. But do you have any advice on Roth conversion? About 300k in traditional 401k.
I wouldn't worry about it, with the way our tax system works it's better to do some Roth and some traditional so you can take advantage of low tax brackets.
What elmatao said, you can essentially withdraw around 50k a year from traditional right now and only pay 10% fed taxes. I'm sure you are in a much higher bracket now.
Go jackets!!!
My companies 401K & ROTH 401K matches up to 25%. I'm currently at 12%, i make $105K per year. I have about $7,500 in debt & then my mortgage at 2.5APR. Would you suggest contributing to an Index Target Retirement Fund or bumping up to a higher Company match?
matched money is 100% ROI. I'm no finance expert, but if I were you I'd immediately start maximizing that match. If you can cut back a bit on lifestyle and get that debt paid off you're golden. 2.5% home loan is great especially if you're experiencing appreciation. If that appreciation is above 2.5% (my market is far above that) then you're essentially making money off the leverage your home loan created.
I do up to match and 100-500 a month in Roth IRA at bank or credit union but I’m 20
Match is free money
25%😮…unbelievable
@Mikeclark2002 awesome your starting so early. Your going to be very comfortable when you retire
HOW DO I CATCH UP?
1. Increase net income to increase net worth - this could mean reducing operating expenses, not increasing revenue (ie. my mom once took a 2nd job but then realized that the family costs went up)
2. Increase personal value and skill - Jobs will come and go; but your attitude, work ethic, and skill set stays with you.
3. Increase positive communication - if married, your spouse is your most valuable treasure and business partner - (ie. My wife keeps me on track with what's important and motivated to achieve our goals
4. Increase productive work communication - often increasing hours or position at an existing job is more sustainable when done properly (ie. More than once, I have seen people miss out on a 25% raise because they are rushing to a 3-4hr 2nd job.
5. Increase giving lifestyle - neighborhood giving and bartering has been discounted over the last 3-5 decades, but there is something upliftingly beautiful about people that work together (ie. Growing up we often had at least one neighbour we could ask for some sugar, eggs, etc. We in turn would help mow, rake, or shovel when needed
With stock market positive 8.5yrs out of ten, does it really make sense to "go conservative" (more bonds, less stocks) until you are VERY close to retirement?
Nope. I would keep 80% in the S&P. 10% - 15% in an HYSA (so you can pull from here if the market drops, while waiting for the eventual recovery). 5-10% in cash (this is where you would draw from for your yearly needs).
@@LearnWithTheBestIsn't an HYSA cash?
Normally yeah I'd stick with close to 100% equities/ real estate until you're within about 10 years of retirement or less, but with interest rates being what they are now and likely to drop in the next few years bonds aren't looking too bad...
way behind and also lower income by the time I have a decent income, i'll probably need to contribute 50% of my income to maybe catch up. the numbers i see on here and read in the comments are crazy to me.
Can you guys make a video on student loans? I would love to hear what you two think about that.
Which part of the process? Begin/middle/end?
Agree. First they should talk about what a student loan means for your financial life, talk about compounding interest and how that spirals. It would be great to talk about the different repayment options and how your tax filing status impacts your ability to get on certain plans. It would be good to look at different earning brackets within each decade of age and how to set a budget to pay down the balance while also investing.
While I agree that could be useful to some people, I’ve also observed that they don’t talk much about budgeting. They have talked about when to payoff a student loan (when is it considered high or low interest debt for the FOO). Made this comment before seeing the whole video; this is what they always say (aside from the classic rule of limiting loans to the first year excepted income).
Very beginning, not even 18 yet
@@chemquests Perhaps not budgeting per se, but prioritization, maybe. For example, if you are over 40 with a student loan at 6% but don't have much in your 401k and your employer has a generous match, they'll tell probably tell you to take the match. BUT we know that if we do one of the income-based repayment plans, we're paying less than the accruing interest each month. At the end there will be a gigantic tax b0mb at the end. How do we plan for that?
More sidebars! 😂
Hard to save 25% of income, when tithing to church. Currently, saving 15% as a result. Any advice for us church goers?
Brian “I’m just being honest” Preston
Beau before sleeping with his wife: 'i'm so excited for this one'
What about 50 year old?
I hate that "catching up" these days is 28 with a six figure salary? It makes me lose hope as a 40 year old who is starting over.
Do you guys serve as financial advisors, money managers, etc???
All I heard was butt plug 😂 and then everyone chimed to not make it awkward
SAME!!! I had to re-listen twice to hear it correctly lol
Wait do y’all have a time stamp?
@@TheVistastube6:45 but listening before that part…it’s book plug 😂
❤❤❤
Why is this so quiet? My headphones are atleast double a normal video
Volume is normal for me
No issues for me ❤
Maybe it’s a setting with headphones or something. The ad was so loud I had to turn the volume off.
They need to rename this show The Money Guys. It needs to be plural. There’s two guys. Two. For two people who are supposed to be good with numbers, this should not be hard. Thank you.😑
Don’t need to catch up when you’re ahead
Less than 7 minutes in and you've already tried to sell me something three times? Ugh.
For some people it actually might be too late. They should probably cash out all of their investments and savings and just try to win big on a memecoin.