A withdrawal rate of 10% is insane Dave. Nobody should conservatively assume double digit returns, especially when retirement allocations in your 50s and 60s are supposed to be invested in safer assets that yield lower returns.
@@jjsmooves1479 Times have change with bond and saving interest rates...- there is no place but the market to put your money if you want to out pace inflation. So he really does need to keep an average return over the next 40 years to be 10%. What is wonderful about their situation is he lives beneath his means. Unlike the baby step 2 callers that made DV a multimillionaire by repeating the same 7 steps1
Are you suggesting that the entire nest egg should be in low-risk investments? You're not withdrawing that last dollar for another 20-30 years, so there is no reason not to let that dollar continue to earn higher returns and ride the highs and lows. Dollars you're going to take out to fund in the next year to 5 years expenses, sure, that can be low-risk stuff. But the risk on that dollar depends on when you need THAT dollar.
@@richard77231 Hi Richard, I agree with your point entirely. There needs to be a good mix of safer investments that shield them for the next 3-5 years (even include a good amount of cash in there for market swings), and there needs to continue to be larger growth for the remainder of the assets 5+ years into the future. My main gripe with Dave R is that he preaches all people should assume 12% returns regardless of age and apparently pushes very high withdrawal amounts. With people living longer than ever, taking 10% of a nest egg is a very aggressive strategy. It also doesn’t seem fitting for a couple that made a modest living and is used to not living on 6 figures a year. Hope this helps clarify!
I listen to these videos over and over and each time it hits different. in this video, when Dave explained to the man who called to pay off now, so he wont have monthly payment on the house so he doesnt need the money he thought he would need initially the light went on for him. such a cool thing to listen to!
Typically the experts recommend withdrawing 3-4% annually (to maintain the principle; you can take out more but the value of the principle will slowly decline). You will probably average greater than 3-4% gains, however you have to account for inflation and taxes, etc.
@@coconutjuice7777777 Yeah I feel the best decision would be to just use whatever they need each year but I don't know how many thousands they will be needing by the end.
Advice is good so long as the market doesn't start dropping and take a few years to recover. He can always move to somewhere else more affordable if he had to.
It is risky. Actually retirement suicide. 6% is the highest I would go if I felt like taking a risk. 5% is likely safe assuming the market doesn't take a nose dive over the first few years of retirement. But 4% is what would have me sleeping comfortably at night.
IMO should not have retired until the house was paid for. Dave thinking 10 percent is conservative makes me shake my head. And if he thinks you can get there his advice to pay off house ASAP is even more suspect given the delta between return and cost of funds. 1.5 is not that much to retire on in a high cost area. 1.2 is definitely not enough to live the lifestyle i personally want but for some it may be plenty in a low cost of living area. Taxes is still a big concern given tradition retirement vessels which is most likely what they have.
He did say that most of the 401K was in a Roth and that they lived most of their life on $70K-$80K (and that was with the house payment), so they will be just fine considering SS, Medicare... Sounds like they will have more money to spend than when they were working. I do also question this assumption of 10% or better, especially over the next few years. Also I would guess their mortgage is around 3%, and if they could get 10% they would lose 7% every year on that$280K. But, being retired if the market were to have a major crash, having the house paid off would be the right move so... Sounds like these folks live modestly so they should be fine either way, certainly a lot better off than a vast percentage of folks in this country.
@@rethinkcps2116 That is another consideration, I just did a quick look and it appears that seniors can purchase dental plans that range from $16 to $100 a month at the high end. So more than most employer coverage but not that bad really. If their house is paid and they can bring in $70K - $80K (which they should easily). They should be fine, especially if what he said about most of their 401K being in a Roth is true. Either way, they are in pretty good shape financially. Plus they could always sell and move somewhere cheaper or do a reverse mortgage if needed, but it doesn't seem like that will be necessary. There are a lot of folks retired right now with a fraction of what these people have, some with just SS. Those are the ones we should be worried about.
@@dagobaker roth dollars are worth 10x their weight in gold. Why in the world would you throw them away at low interest mortgage debt. When they can continue to compound exponentially TAX FREE?
The guy likely has a pension since I heard him say he had a 403b which means he likely worked for a government entity. That plus his social security, his wife's social security, and that $1.5 million should be more than enough. I wish we got a better financial picture. He really needs to talk to a financial advisor who specializes in helping retirees not Dave.
Dave is really, REALLY out of line when he talks about safe withdrawal rates. There isn’t a single financial advisor on the planet that would recommend a 10% rate of withdrawal in retirement, there are actually studies and Monte Carlo simulations that absolutely would destroy that premise. But Dave is simply a talk show host, realistically he could take out plenty and have plenty left over but that is not the norm for the average investor.
Dave is who the 80% of Americans who are living paycheck to paycheck should listen too. Those with paid off houses and no debt should probably look elsewhere
@@charletfoster8917 109K came into PHX in 2020, 26% YOY Increase in the price of housing. My $50K house in 2011 is now $425K 60 days a years non-attainment air quality So, I say Iowa.
Leave California, people often say they stay cause of the weather, it would probably be cheaper to get a summer house in the north and a winter house in the south, & migrate south for the winter like a bird than to live in California
They likely locked in a low property tax rate and they likely live near their family. I can understand if they want to stay in the place they've been calling home for years.
That makes no sense at all. California has very low property taxes compared to other states. They are retired so their income taxes will be low or non existent. If they move to Texas, for example, their property taxes would be through the roof.
Umm… unless he is pulling this from a brokerage account or bank account they are going to be paying a lot of taxes pulling all this money out… unless it’s Roth. Idk, I think Dave needs to know more before just saying “pay off the house.”
Does it matter? He's not asking "pay off now" or "pay off never". He's asking "pay off now" or "let it grow and pay off a few years in the future". Either option is going from the same retirement account.
@@richard77231 the reason it matters is due to the potential tax liability . If he pulls +$200k from a traditional IRA type account that goes towards income for that year and will put him in a higher tax bracket meaning a larger chunk of the funds is going to pay off the tax bill rather than taking let’s say $40k for the next five years to pay off the house. You still get a paid for house either way but depending on which you choose could mean a lot in regards to how much of that actually goes to paying off the house verses how much goes to the IRS. I am all for being debt free and having a paid for home (esp. at the age these people are in) but I also want to limit how much I pay the IRS whenever possible.
@@The.Dude.Abides. I agree that some clear tax planning is a better idea. We will still be in a high tax bracket in retirement due to rental income, so 401K money will be taxed at a higher rate than when it was earned. The important thing it that it provided options.
@@Gregarious3 couldn’t agree more. At this level some real and strategic planning will certainly pay off. Dave isn’t suited for that, nothing against him but he simply cannot and will not get into the weeds.
He did say that most of their 401K was in a Roth, but yea hate taking tax free investment money to put towards a low interest loan where a lot of the interest is already paid. Although, if the market crashes (could happen) then having the house paid off could be the right move.
Once again, Ramsey folks not taking taxes into consideration and giving terrible financial advice. This caller needs to sit down with a financial advisor / CPA to determine the tax implications of pulling money out of their retirement funds to pay off the house in a lump sum. The caller indicated he had a mix of Roth and taxable IRA's, so getting professional advice on a withdrawal strategy is paramount. Here's the math: You pull $280,000 out of a taxable IRA (not Roth), and then you have to pull additional money out to pay the taxes, and then, you pull even more money out to pay taxes on the amount that you pulled to pay the taxes. Since this money is on top of normal withdrawals / normal income, it places you in higher and higher tax brackets. Following Dave's advice would have this caller pulling about $350,000 out to pay the mortgage and taxes, oh, not including California state income taxes. Once you get past Baby Step #2, people really need to seek financial advice elsewhere.
Yup and the other bad advice is Dave assuming 10% annualized returns by staying invested 100% equity mutual funds. He told the caller $1.2M nest egg to pull $120k/yr or even 7% withdrawal rate $84k/yr. Does Dave not understand the sequence of returns risk when you start withdrawing from your 100% equity mutual fund portfolio?? 🤦🏻♂️ Even a 5% withdrawal rate invested 100% in S&P 500 over 30yrs only has a success rate of 67%!
You know I might be wrong, but I don't think you need to pull money out to pay taxes on the taxes. You just take one distribution I think and and separate the taxes from the income and report that to the IRS. But I could be wrong, it's just the way I do it.
@@catlady2795 I was speaking metaphorically. Put another way, if you withdraw the $280k to pay off the mortgage, there will be taxes due on this withdrawal, so you can either increase the withdrawal amount or wait and withdraw when the taxes are due. This balance that you allotted for taxes is taxable as well, so you have to account for that. It tends to compound very quickly on you and that is why a withdrawal strategy is very important in retirement.
@@skydude1996 the caller said he was waiting for his investment to grow to pull that money out. But regardless it's just not smart advice by Dave. The guy needs to really talk to a financial advisor who specializes in advising people in retirement. Dave is providing some horrible advice here.
I enjoy listening to Dave but he is way off on 2 things - 1) assuming 10% rate of return; and 2) for many of us, our property taxes dwarf our p & I, so paying off our houses does not eliminate our housing cost.
First never plan to have a 10% withdrawal rate. You will be broke within 10 years. 2nd don't pull a large chunk of your investment at the beginning of retirement to pay off low interest mortgage debt. Learn how to use money and let it work hard compounding while you sleep.
Aaron you know what the biggest debt is at retirement for most Americans? Mortgage debt. If you can pay that off believe me you sleep so much better at night and you have a much clearer picture of where you going financially speaking.
@@stevejohnson2108 yes but the point is if your mortgage interest rate is 3% and your investments are making 10%, then better to let your investment money work for you and do not pay off your mortgage.
I agree with Dave here, I'd pay off the house if they're looking to retire imminently (and stay put). Yes there's an opportunity cost, but total peace of mind in retirement is priceless. I know someone who intended to retire last year and keep the mortgage, then COVID hit. As they watched their investments plummet and job became unstable, he pulled some out and paid the mortgage off. He doesn't regret it - 1.5yrs on we're still not out of the pandemic.
They should have paid off the house before retirement if they wanted to pay it off in one lump sum. Retirement is no time to be dropping a payment equal to about 30% of your networth. Additionally they likely have a very low fixed interest rate and they likely have two social security checks coming in based on the caller's age. Paying off the home doesn't sound like some paramount issue they should be risking their nest egg over.
It depends on your current tax bracket. Generally if you are paying less than 30% between federal and state combined you want to invest in roth. If its more than that you'll benefit more from traditional and then work on a back door roth strategy. Either way find your investing advice from someone other than dave ramsey. His advice will make you poor.
Always do the roth to the max.. ( the reason is you make more compound growth because you pay the taxes upfront) than 401k if they match then invest in something your comfortable with.. or just invest in the s&p 500
Almost 70 years old and now they can finally enjoy their million bucks. Crazy how this system wants you to think . We live as everything is guaranteed.. I guess its the way it is. ... not for me.
That makes no sense at all. Their house is paid for, that's practically the main difference in cost of living between states. California has very low property taxes compared to other states. They are retired so their income taxes will be low or non existent. If they move to Texas, for example, their property taxes would be through the roof.
Property taxes would be less in another state because they can buy the same house for half that elsewhere, not to mention the everyday cost of living would be much lower also
@john Smith wow, dude California is probably the worst state in the US only one that comes close to it is NY. Besides just how ridiculously expensive it is there it is a sh*t show
Didn't even ask him what his mortgage rate was..... if its less than 2% he could easily keep paying the rates with some of his dividends and allow the lump sum to continue to grow. 🤔
I am not sure, but people may be forgetting that this is him and his wife together, so that's 5% each and 75,000 on a average 10% return. (150K) If Oakland is very expensive, they may need that. As long as they don't touch the principle.....Remember, some years their fund may get 20, 30-40% return ( Many ETF's do this ) and in a Crash -40%. So, I don't see anything wrong with withdrawing 150,000 yearly for the two of them...Once the house is paid off, it gets easier. Then move out of the state.
Dave should be legally prohibited telling some to take a 10% withdrawal rate, max you should do is 5% unless you do a higher rate for let’s say 10 years then stop withdrawing almost entirely cause you turned on social security that’s different. But expecting to average just a 7% withdrawal rate will cause you to run out of money.
I don't get a lot of these questions. People think they can't live on millions of dollars with no debt and no house debt. At that point your expenses are literally basic house stuff and just fun things that you wanna buy. If money is going down just don't spend as much on crazy things.
@mandypdx Not everyone spends 100k+ a year so their retirement will require less. 2 million dollar networth is more than enough. Just don't spend like you are in congress. Or move to a cheaper city. Expenses for me and my wife here are only 25-30k per year.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
@@Lourd-Bab However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
So he wanted $1.5M with a withdrawal rate of 5%, hence a yearly income of $75K. Since most of it is in Roth I'm assuming all of it is tax free. Then let's say they get an additional $5K per month (two people), so $60K a year from social security. That's $135K a year with little taxes if any. If they drop to $1.2, then that drops to $120K a year with little taxes if any. Without social security that's $60K, but he doesn't have to save any of that for retirement. If anything I'd suggest paying it off then working a little longer if they really need more money. I think they are going to end up spending less than they planned to spend when they retire. They switch to living only on your investments is also a psychological one. If they don't want to have less money now, it's going to be further amplified in retirement.
Im 47 and have $2 mill in a Trust and $1.5 mil in 401K. Is retiring at 52 too early? Im renting a 3 bedroom 3 bath apt and no debt. I assume 7% 8% index fund returns. thx
no it is not. If you are healthy you got it made. Pull 4% for living expenses and continue to build wealth until say 60. Then enjoy your month brother. Life is way too short.
He said he was planning to have a 5% withdrawal rate I’m assuming from his goal of $1.5 MM which would be about $77K per year to live on. If he pays off his mortgage he would have ~$1.2MM which means he would need ~6.5% withdrawal rate to get his goal of $77K per year to live off instead of the 5%. If he’s earning ~10% annual returns and using 6.5% to live off he’ll still be earning ~3.5% annually which will grow to over $3MM by the time he’s 96 yo. In other words. You’re good bro 👍🏼
No he’s not good!! He needs $280k net to payoff his mortgage today. If it’s 100% taxable then likely he’s going to pay 20% Federal and 10% CA income tax. He needs to withdrawal $400k taxable to net $280k. Then he has $1.1M approximately left. Then if he takes 5% per year withdrawals then he has $55k/yr gross then after income taxes maybe $50k/yr net. Also if he stays invested 100% equities mutual funds he stands the 33% chance of running out of money in the next 30yrs! It’s called sequence of returns risk! The equities mutual funds doesn’t earn 10% every year. The average annualized return can be 10% over 10+yrs!! You’re going to have a bad year like -20% decline in equities. If that happens the 1st year then his $1.1M is worth $825k after he withdrawals $55k and suffers a -20% decline. Then if he keeps taking $55k in year 2 that’s a 6.7% withdrawal rate. If he suffers a 2nd year decline of -15% then he’s left with $655k and he continues to withdrawal $55k the 3rd year that’s a 8.4% withdrawal rate! Example if he started in year 2000 to withdrawal S&P 500 had a -9%, 2001 -12%, and 2003 -22%.
He probably won't need 6.5% if he pays off his house because he won't have a mortgage to pay. He has most of his money in roth IRAs he said, so he probably won't have to worry about taxes. Don't know about the 403b's he will probably have to pay capital gains tax on his withdrawals so his taxes on his 403's are going to be 15 + 2 % so he will probably have to pay 17% on his 403b withdrawals.
I’d be curious to know what these peoples lives look Like in retirement. 1.5 million nest egg withdrawing 5 percent is 75k a year before taxes . I’m surprised that’s enough for them to live the life they want especially in a high cost area .
Whats the rush? If I were them I’d pull enough just to pay my yearly expenses including the mortgage and let the investments grow as much as possible. If they are nervous about not having enough then the other options would be get back to work or move somewhere cheaper.
Well lets see 80k AFTER 10 years is not that little!!!! He is also 66 years old which means if he bought in CA in his 20' or 30's he had far cheaper prices for housing!!! My parents friends spend maybe 200K on their house that is now valued at 1 million + now!!!!! He inherited 40K and with two people working (maybe he only had one income but I assume not) plus that he did not stay not super poor!!! I only make 20K after taxes but after 12 years have only 39K cash but if you 4X the income the new number maybe 156K. If invested for the next 20 years 624K maybe on only 80K salary!!!!! 936K if the math is right and one keeps investing at the same rate. If they had these same outcomes on 50-40K that would be extremally amazing!!! Your quote: (Wow a millionaire from 80,000 a year, amazing God bless.)
@@Snacks1991 Well your right on both accounts but my point wasn't how much money or time I have. It was to point out how math and conditions work (behavior only increases or decreases probabilities for different outcomes). Plus neither me nor the caller started off broke and that is important because capitalism rewards wealth over work consistently. Your quote: (are you bored I'm saying that because it gives me motivation. You need a new job , cuz you got too much time and no money)
@@Snacks1991 These are the averages for about the first 4 years it was 500$ a month or 6,000 annually and for the next 8 years it was 300 a month or 3,600 annually. Minus COVID-19 (13K paid from savings) 52K became 40k or really 39K now!!!! I obviously love living on 13-14K but a real job (24K-35K) would obviously have had a different outcome.
once u become debt free...... literally everything feels different...... everything u look at is different the OPTIONS u have are 10x when bear bug (u know what im talking about) i had zero% stress while every single coworker was freaking out (we all lost our jobs)
I love religious justifications. The Bible also says if you pass a man without a coat to give him your coat and that it is easier for a donkey to pass through the eye of a needle than a rich man to enter heaven. Funny how those verses weren’t mentioned.
And there goes the mute button: "Heeheehee, blick" And I can't help but think, if a house payment costs 3% interest, but the 280,000 would earn 10% or more if it stayed invested, wouldn't it be wiser to just leave it invested and pay the mortgage each month?
Any social security to add to the equation? If not, these guys should sell and move to a red state. Then they would have a very comfortable retirement, social security or not. I do think Dave is crazy about taking 7 or 10 percent, especially if they want to leave a legacy/unfair advantage to their kids.
Probably no social security as a pastor. I wished Dave understood the taxes that it takes to withdraw so much from the 403b and realized that they may only have 1 million left.
I hope his investments are after tax. If it is before tax, and Makes a three hundred thousand dollars withdrawal he will have to pay California state and federal taxes.
Where is this "you should get 10% or more return!"....you just can't count on that IMO. Plan for a 5% return at that age and anything more is gravy. I mean who at 66 has 100% in the market?
Dude we don’t bring up the “7 year it doubles” talking point when the client is 66. 😂. The caller should be focusing on wealth preservation, not growing it at 10% which implies keeping it all in a ETF which can fluctuate a lot during the prime years of his retirement. Again, you get what you pay for with the advice on this channel.
@@agr-tech Dave’s saying invest in s&p500 which is the only ETF to return 10% for the last 100 years. But the keyword is average. Between 2000 and 2012 for 12 years this ETF was underwater. Not what you want when you’re 66 years old!
@@agr-tech and please note that blind faith without critical thinking is very dangerous. Please validate your assumptions before you chime in with “he’s right”. You’re just parroting misinformation.
@@Omikoshi78 I did. Read my second and third sentence. If you go ultra conservative (invest differently than you did to get to retirement, you have 25+ years of money to live on and run into danger of exhausting your nest egg). Yes, you do want and need 10% returns when you are 66. You cant afford 4-5% returns when you need to draw higher.
Terrible advice, don’t pay off the house early. There is no reason to pay off a 3% home mortgage when you can earn between 8-15% in retirement accounts.
I didn't invest anything in 401ks or IRAs. I made a fast fortune. I went into Art dealing with Hunter Biden. We sell $ 500,000 original Hunter Biden Art pieces to anonymous buyers. We have made a fortune by giving buyers access to " The Big Guy".
Dave seems aggressive with rate of return of assumptions and very conservative with debt. Why payoff a 3% mortgage when you earn 10% in a mutual fund? That seems to be a 7% to the plus.
@@b.cdrisk2035 No media, just repeating what the speaker has been quoted in saying. Apparently everything is fine. You seem to agree. Just get to the airport, call an Uber.
@@b.cdrisk2035 Do you think they will have porters at the airport to help with luggage? Joe Biden on people falling to their deaths to try and escape "That was 4 days ago, 5 days ago".
@@coniccinoc Thanks for proving my point. If Trump did the same you would see the light. Guess we should have stayed a little longer huh? You know Trump brokered this deal right? Weren't you for getting out of Afghanistan ASAP a month or two ago?
A withdrawal rate of 10% is insane Dave. Nobody should conservatively assume double digit returns, especially when retirement allocations in your 50s and 60s are supposed to be invested in safer assets that yield lower returns.
Exactly. 5% is actually pretty good. Which cuts their income down to half of what it was when working. Not sure why Dave assumes 10%.
@@jjsmooves1479 Times have change with bond and saving interest rates...- there is no place but the market to put your money if you want to out pace inflation. So he really does need to keep an average return over the next 40 years to be 10%. What is wonderful about their situation is he lives beneath his means. Unlike the baby step 2 callers that made DV a multimillionaire by repeating the same 7 steps1
Are you suggesting that the entire nest egg should be in low-risk investments? You're not withdrawing that last dollar for another 20-30 years, so there is no reason not to let that dollar continue to earn higher returns and ride the highs and lows. Dollars you're going to take out to fund in the next year to 5 years expenses, sure, that can be low-risk stuff. But the risk on that dollar depends on when you need THAT dollar.
@@richard77231
Hi Richard,
I agree with your point entirely. There needs to be a good mix of safer investments that shield them for the next 3-5 years (even include a good amount of cash in there for market swings), and there needs to continue to be larger growth for the remainder of the assets 5+ years into the future.
My main gripe with Dave R is that he preaches all people should assume 12% returns regardless of age and apparently pushes very high withdrawal amounts. With people living longer than ever, taking 10% of a nest egg is a very aggressive strategy. It also doesn’t seem fitting for a couple that made a modest living and is used to not living on 6 figures a year.
Hope this helps clarify!
@@richard77231 Exactly
I listen to these videos over and over and each time it hits different. in this video, when Dave explained to the man who called to pay off now, so he wont have monthly payment on the house so he doesnt need the money he thought he would need initially the light went on for him. such a cool thing to listen to!
Typically the experts recommend withdrawing 3-4% annually (to maintain the principle; you can take out more but the value of the principle will slowly decline). You will probably average greater than 3-4% gains, however you have to account for inflation and taxes, etc.
The biggest problem is when the portfolio falls 50%. Hard to make money back when you're pulling 10% per year.
@@coconutjuice7777777 ok but hear me out
Don’t.
@@coconutjuice7777777 Yeah I feel the best decision would be to just use whatever they need each year but I don't know how many thousands they will be needing by the end.
All true. I paid off my house days ago and now that I am 'walking in it" I can agree it is spiritual, a phenomenon that no words can describe.
Congratulations!!!!!! Can’t wait to be in your shoes in the next few years.
I felt that "flip of the switch" when my mortgage was paid off.
Advice is good so long as the market doesn't start dropping and take a few years to recover. He can always move to somewhere else more affordable if he had to.
Can’t say I agree with Dave’s 10% withdrawal rate. Feels risky risky. But honestly, these are good problems!
That is high WOW
If the market does stay doubling every 7 years then he isn't gon to run out of money even with the 10% but that's still pretty risking
@@igot5onit423 I am was thinking 4% or 5% and I would do GREAT
It is risky. Actually retirement suicide. 6% is the highest I would go if I felt like taking a risk. 5% is likely safe assuming the market doesn't take a nose dive over the first few years of retirement. But 4% is what would have me sleeping comfortably at night.
IMO should not have retired until the house was paid for. Dave thinking 10 percent is conservative makes me shake my head. And if he thinks you can get there his advice to pay off house ASAP is even more suspect given the delta between return and cost of funds. 1.5 is not that much to retire on in a high cost area. 1.2 is definitely not enough to live the lifestyle i personally want but for some it may be plenty in a low cost of living area. Taxes is still a big concern given tradition retirement vessels which is most likely what they have.
probably depends on how much he has in his ROTH
He did say that most of the 401K was in a Roth and that they lived most of their life on $70K-$80K (and that was with the house payment), so they will be just fine considering SS, Medicare... Sounds like they will have more money to spend than when they were working. I do also question this assumption of 10% or better, especially over the next few years. Also I would guess their mortgage is around 3%, and if they could get 10% they would lose 7% every year on that$280K. But, being retired if the market were to have a major crash, having the house paid off would be the right move so... Sounds like these folks live modestly so they should be fine either way, certainly a lot better off than a vast percentage of folks in this country.
@@rethinkcps2116 That is another consideration, I just did a quick look and it appears that seniors can purchase dental plans that range from $16 to $100 a month at the high end. So more than most employer coverage but not that bad really. If their house is paid and they can bring in $70K - $80K (which they should easily). They should be fine, especially if what he said about most of their 401K being in a Roth is true. Either way, they are in pretty good shape financially. Plus they could always sell and move somewhere cheaper or do a reverse mortgage if needed, but it doesn't seem like that will be necessary. There are a lot of folks retired right now with a fraction of what these people have, some with just SS. Those are the ones we should be worried about.
@@dagobaker roth dollars are worth 10x their weight in gold. Why in the world would you throw them away at low interest mortgage debt. When they can continue to compound exponentially TAX FREE?
The guy likely has a pension since I heard him say he had a 403b which means he likely worked for a government entity. That plus his social security, his wife's social security, and that $1.5 million should be more than enough. I wish we got a better financial picture. He really needs to talk to a financial advisor who specializes in helping retirees not Dave.
Dave is really, REALLY out of line when he talks about safe withdrawal rates. There isn’t a single financial advisor on the planet that would recommend a 10% rate of withdrawal in retirement, there are actually studies and Monte Carlo simulations that absolutely would destroy that premise. But Dave is simply a talk show host, realistically he could take out plenty and have plenty left over but that is not the norm for the average investor.
Yeah 10% is outrageously high
Dave is who the 80% of Americans who are living paycheck to paycheck should listen too. Those with paid off houses and no debt should probably look elsewhere
4-5 at most.. try around 3
3% if you safely wanna live off your portfolio forever.
if hes getting north of 10% then he will be fine
$1.5M is really nothing in CA. It may work if they lived in Wyoming or something.
If you think $1.5M is nothing, try saving $1.5M!
@@RK831 I did, but I am in a LCOL area and I’m not retiring yet.
Move to Arizona or Nevada
@@charletfoster8917 109K came into PHX in 2020,
26% YOY Increase in the price of housing.
My $50K house in 2011 is now $425K
60 days a years non-attainment air quality
So, I say Iowa.
@@RK831 I did. it's not that hard
Leave California, people often say they stay cause of the weather, it would probably be cheaper to get a summer house in the north and a winter house in the south, & migrate south for the winter like a bird than to live in California
They likely locked in a low property tax rate and they likely live near their family. I can understand if they want to stay in the place they've been calling home for years.
That makes no sense at all. California has very low property taxes compared to other states. They are retired so their income taxes will be low or non existent. If they move to Texas, for example, their property taxes would be through the roof.
Always great hearing stories from Everyday Millionaires.
this guy is so humble... dave is trying to pump him up......
The sound of an elephant who doesn’t like donkeys 0:21.
Umm… unless he is pulling this from a brokerage account or bank account they are going to be paying a lot of taxes pulling all this money out… unless it’s Roth. Idk, I think Dave needs to know more before just saying “pay off the house.”
Does it matter? He's not asking "pay off now" or "pay off never". He's asking "pay off now" or "let it grow and pay off a few years in the future". Either option is going from the same retirement account.
@@richard77231 the reason it matters is due to the potential tax liability . If he pulls +$200k from a traditional IRA type account that goes towards income for that year and will put him in a higher tax bracket meaning a larger chunk of the funds is going to pay off the tax bill rather than taking let’s say $40k for the next five years to pay off the house. You still get a paid for house either way but depending on which you choose could mean a lot in regards to how much of that actually goes to paying off the house verses how much goes to the IRS. I am all for being debt free and having a paid for home (esp. at the age these people are in) but I also want to limit how much I pay the IRS whenever possible.
@@The.Dude.Abides. I agree that some clear tax planning is a better idea. We will still be in a high tax bracket in retirement due to rental income, so 401K money will be taxed at a higher rate than when it was earned. The important thing it that it provided options.
@@Gregarious3 couldn’t agree more. At this level some real and strategic planning will certainly pay off. Dave isn’t suited for that, nothing against him but he simply cannot and will not get into the weeds.
He did say that most of their 401K was in a Roth, but yea hate taking tax free investment money to put towards a low interest loan where a lot of the interest is already paid. Although, if the market crashes (could happen) then having the house paid off could be the right move.
House worth $665k. He does not live in an expensive place in California! 😅
No he does not , that’s a cheap house in CA ,
Once again, Ramsey folks not taking taxes into consideration and giving terrible financial advice. This caller needs to sit down with a financial advisor / CPA to determine the tax implications of pulling money out of their retirement funds to pay off the house in a lump sum. The caller indicated he had a mix of Roth and taxable IRA's, so getting professional advice on a withdrawal strategy is paramount.
Here's the math: You pull $280,000 out of a taxable IRA (not Roth), and then you have to pull additional money out to pay the taxes, and then, you pull even more money out to pay taxes on the amount that you pulled to pay the taxes. Since this money is on top of normal withdrawals / normal income, it places you in higher and higher tax brackets. Following Dave's advice would have this caller pulling about $350,000 out to pay the mortgage and taxes, oh, not including California state income taxes.
Once you get past Baby Step #2, people really need to seek financial advice elsewhere.
Yup and the other bad advice is Dave assuming 10% annualized returns by staying invested 100% equity mutual funds. He told the caller $1.2M nest egg to pull $120k/yr or even 7% withdrawal rate $84k/yr. Does Dave not understand the sequence of returns risk when you start withdrawing from your 100% equity mutual fund portfolio?? 🤦🏻♂️ Even a 5% withdrawal rate invested 100% in S&P 500 over 30yrs only has a success rate of 67%!
People should be smart enough to know how to get better tax breaks. Who knows maybe they have the money to pay off the house in cash.
You know I might be wrong, but I don't think you need to pull money out to pay taxes on the taxes. You just take one distribution I think and and separate the taxes from the income and report that to the IRS. But I could be wrong, it's just the way I do it.
@@catlady2795 I was speaking metaphorically. Put another way, if you withdraw the $280k to pay off the mortgage, there will be taxes due on this withdrawal, so you can either increase the withdrawal amount or wait and withdraw when the taxes are due. This balance that you allotted for taxes is taxable as well, so you have to account for that. It tends to compound very quickly on you and that is why a withdrawal strategy is very important in retirement.
@@skydude1996 the caller said he was waiting for his investment to grow to pull that money out. But regardless it's just not smart advice by Dave. The guy needs to really talk to a financial advisor who specializes in advising people in retirement. Dave is providing some horrible advice here.
I enjoy listening to Dave but he is way off on 2 things - 1) assuming 10% rate of return; and 2) for many of us, our property taxes dwarf our p & I, so paying off our houses does not eliminate our housing cost.
First never plan to have a 10% withdrawal rate. You will be broke within 10 years. 2nd don't pull a large chunk of your investment at the beginning of retirement to pay off low interest mortgage debt. Learn how to use money and let it work hard compounding while you sleep.
Aaron you know what the biggest debt is at retirement for most Americans? Mortgage debt. If you can pay that off believe me you sleep so much better at night and you have a much clearer picture of where you going financially speaking.
@@stevejohnson2108 yes but the point is if your mortgage interest rate is 3% and your investments are making 10%, then better to let your investment money work for you and do not pay off your mortgage.
I agree with Dave here, I'd pay off the house if they're looking to retire imminently (and stay put). Yes there's an opportunity cost, but total peace of mind in retirement is priceless. I know someone who intended to retire last year and keep the mortgage, then COVID hit. As they watched their investments plummet and job became unstable, he pulled some out and paid the mortgage off. He doesn't regret it - 1.5yrs on we're still not out of the pandemic.
Wrong time to sell investments.
They should have paid off the house before retirement if they wanted to pay it off in one lump sum. Retirement is no time to be dropping a payment equal to about 30% of your networth. Additionally they likely have a very low fixed interest rate and they likely have two social security checks coming in based on the caller's age. Paying off the home doesn't sound like some paramount issue they should be risking their nest egg over.
A very high cost of living part of California. Also known as the state of California.
Pulling out 10 percent a year is insane. Hes insane if he follows this advice
My 401k k at my work place allows traditional and Roth. Which is better? I plan on retiring early at 60. Thanks for the great info
It depends on your current tax bracket. Generally if you are paying less than 30% between federal and state combined you want to invest in roth. If its more than that you'll benefit more from traditional and then work on a back door roth strategy. Either way find your investing advice from someone other than dave ramsey. His advice will make you poor.
Always do the roth to the max.. ( the reason is you make more compound growth because you pay the taxes upfront) than 401k if they match then invest in something your comfortable with.. or just invest in the s&p 500
Don’t worry about your taxes in 20 years ROTH it 100%.
Are you going to be paying taxes?
I make $100K/yr in retirement and no taxes.
Lets goo!!! Im 27 now and if my wife and I aren’t millionaires by his age we failed period.
Everytime Ramsey does his arms like that looks like hes in a straightjacket snd hes flying in space 🚀
Almost 70 years old and now they can finally enjoy their million bucks. Crazy how this system wants you to think . We live as everything is guaranteed.. I guess its the way it is. ... not for me.
Sell that house, leave California
That makes no sense at all. Their house is paid for, that's practically the main difference in cost of living between states. California has very low property taxes compared to other states. They are retired so their income taxes will be low or non existent. If they move to Texas, for example, their property taxes would be through the roof.
Property taxes would be less in another state because they can buy the same house for half that elsewhere, not to mention the everyday cost of living would be much lower also
@@truckingmoney485 The home prices in TX is increasing really fast as well as property taxes. I think it depends on the lifestyle they want to live.
@john Smith hope you’re being sarcastic
@john Smith wow, dude California is probably the worst state in the US only one that comes close to it is NY. Besides just how ridiculously expensive it is there it is a sh*t show
Didn't even ask him what his mortgage rate was..... if its less than 2% he could easily keep paying the rates with some of his dividends and allow the lump sum to continue to grow. 🤔
Did dave say to up withdrawal to 7% and then go back down to 5%? Am I hearing that right?
I am not sure, but people may be forgetting that this is him and his wife together, so that's 5% each and 75,000 on a average 10% return. (150K) If Oakland is very expensive, they may need that. As long as they don't touch the principle.....Remember, some years their fund may get 20, 30-40% return ( Many ETF's do this ) and in a Crash -40%. So, I don't see anything wrong with withdrawing 150,000 yearly for the two of them...Once the house is paid off, it gets easier. Then move out of the state.
Why pay off the home then move?
Dave should be legally prohibited telling some to take a 10% withdrawal rate, max you should do is 5% unless you do a higher rate for let’s say 10 years then stop withdrawing almost entirely cause you turned on social security that’s different. But expecting to average just a 7% withdrawal rate will cause you to run out of money.
No people have to consider their own situations. For some 10% will work in part because they will not need nor use 10% of it.
10% is insane the withdraw. 4% is reasonable...
He was going to say something crazy until Dave interrupted him. Dave just didn't give him a chance lol
The only one talking crazy was the investing advice dave gave. 10% is not a safe withdrawal rate.
Miss you Kristy!!
How much impact would result from leaving California?
Why does Dave never bring up social security payments! That couple would probably be getting $3k a month which completely changes their equation
That’s because you shouldn’t rely on it.
@@Lexethan2011 yeah but is a big part of the equation
If he was an actual minister, then they usually waive SSI. The are not required to pay into it, but also don’t get anything from it.
10% return is NOT CONSERVATIVE
Good info.
Brilliant concept
Id sell the house and move somewhere cheap if they could ❤❤❤
Move to a more affordable state and rent out that Cal home.
Living on those dividends would be nice.
I don't get a lot of these questions. People think they can't live on millions of dollars with no debt and no house debt. At that point your expenses are literally basic house stuff and just fun things that you wanna buy. If money is going down just don't spend as much on crazy things.
Great Call. Thank you Robert. Thank you Dave.
"liked"
I actually would be scared if I were him. I’m the same net worth and I’m 40, still working full time and making $150k/yr
What kind of investment s do you have? Do you own property..have children...
@mandypdx Not everyone spends 100k+ a year so their retirement will require less. 2 million dollar networth is more than enough. Just don't spend like you are in congress. Or move to a cheaper city. Expenses for me and my wife here are only 25-30k per year.
@@killerkyle9723 that’s awesome for you. I personally have family all over the world and would like to continue visiting them :)
Should have asked about giving :)
He sounds like the pastor on the Simpsons
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
@@Lourd-Bab However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
@@GeorgestraitStriat Oh please I’d love that. Thanks!
@@Lourd-Bab Clementina Abate Russo is her name
Lookup with her name on the webpage.
I would sell the house, move somewhere with low cost of living and buy a cheaper free and clear house
What's wrong with a bigger nest egg? You can never have enough...😅😅😅
Congrats on the $1.5M in retirement. You are doing well. Enjoy retirement!!!
@john Smith if he is earning 10% a year on his money it should be.
@john Smith the S&P 500 has averaged 10% for the last 30 years…….
@john Smith you can just put your money in a S&P 500 ETF. You don’t need a broker to do anything for you. Pretty simple and cheap to do.
@@j.m0ney133 actually over 11% over the last 90 (it wasnt called the sp500 but they hve done the studies)
@@dagobaker yup 👍
What mutual fund is paying out 10% a year?
Umm just about any one? Vanguard total stock market index. Vanguard mid cap. Vanguard small cap or large cap.
All of them, currently mine is 13.8% but over time 10% minus inflation.
VTSAX over 14% the past 10 years
Hi Dave. My name is Warren from Omaha I've saved 100 billion USD. Do you think that's enough to retire or should I keep working?
Beans and rice, rice and beans. You’re not gonna see the inside of a McDonald’s unless you’re working there.
Sell the car!
So he wanted $1.5M with a withdrawal rate of 5%, hence a yearly income of $75K. Since most of it is in Roth I'm assuming all of it is tax free. Then let's say they get an additional $5K per month (two people), so $60K a year from social security. That's $135K a year with little taxes if any. If they drop to $1.2, then that drops to $120K a year with little taxes if any. Without social security that's $60K, but he doesn't have to save any of that for retirement.
If anything I'd suggest paying it off then working a little longer if they really need more money. I think they are going to end up spending less than they planned to spend when they retire. They switch to living only on your investments is also a psychological one. If they don't want to have less money now, it's going to be further amplified in retirement.
Im 47 and have $2 mill in a Trust and $1.5 mil in 401K. Is retiring at 52 too early? Im renting a 3 bedroom 3 bath apt and no debt. I assume 7% 8% index fund returns. thx
no it is not. If you are healthy you got it made. Pull 4% for living expenses and continue to build wealth until say 60. Then enjoy your month brother. Life is way too short.
Sounds like he retired 1 year too early lol
This is awful advice. What is Dave thinking with a 10% withdrawal rate?
He said he was planning to have a 5% withdrawal rate I’m assuming from his goal of $1.5 MM which would be about $77K per year to live on. If he pays off his mortgage he would have ~$1.2MM which means he would need ~6.5% withdrawal rate to get his goal of $77K per year to live off instead of the 5%. If he’s earning ~10% annual returns and using 6.5% to live off he’ll still be earning ~3.5% annually which will grow to over $3MM by the time he’s 96 yo.
In other words. You’re good bro 👍🏼
No he’s not good!! He needs $280k net to payoff his mortgage today. If it’s 100% taxable then likely he’s going to pay 20% Federal and 10% CA income tax. He needs to withdrawal $400k taxable to net $280k. Then he has $1.1M approximately left. Then if he takes 5% per year withdrawals then he has $55k/yr gross then after income taxes maybe $50k/yr net. Also if he stays invested 100% equities mutual funds he stands the 33% chance of running out of money in the next 30yrs! It’s called sequence of returns risk! The equities mutual funds doesn’t earn 10% every year. The average annualized return can be 10% over 10+yrs!! You’re going to have a bad year like -20% decline in equities. If that happens the 1st year then his $1.1M is worth $825k after he withdrawals $55k and suffers a -20% decline. Then if he keeps taking $55k in year 2 that’s a 6.7% withdrawal rate. If he suffers a 2nd year decline of -15% then he’s left with $655k and he continues to withdrawal $55k the 3rd year that’s a 8.4% withdrawal rate! Example if he started in year 2000 to withdrawal S&P 500 had a -9%, 2001 -12%, and 2003 -22%.
@@famousamos1 he’s good 👍🏼
@@JorgeRamirezFinance Lol if that’s your advice then you’re going to have a lawsuit when your client runs out of money 10yrs from now.
He probably won't need 6.5% if he pays off his house because he won't have a mortgage to pay. He has most of his money in roth IRAs he said, so he probably won't have to worry about taxes. Don't know about the 403b's he will probably have to pay capital gains tax on his withdrawals so his taxes on his 403's are going to be 15 + 2 % so he will probably have to pay 17% on his 403b withdrawals.
@@famousamos1 😂 ok 👌🏼
10 percent assumption is flat out dangerous
I’d be curious to know what these peoples lives look
Like in retirement. 1.5 million nest egg withdrawing 5 percent is 75k a year before taxes . I’m surprised that’s enough for them to live the life they want especially in a high cost area .
66 years old. Time to live.
This doesn't take into account other life circumstances like children, divorce, alimony, medical emergency, getting sued, etc.
Some people feel like they're just stuck. You're not a tree.
Boggles my mind that his mortgage interest rate isn't even a factor in this discussion. 😮
Whats the rush? If I were them I’d pull enough just to pay my yearly expenses including the mortgage and let the investments grow as much as possible. If they are nervous about not having enough then the other options would be get back to work or move somewhere cheaper.
I rarely agree with Dave, but in this case, I do. Meanwhile, this caller doesn't know how to live on what most people wish they could make a year.
Wow a millionaire from 80,000 a year, amazing God bless
Well lets see 80k AFTER 10 years is not that little!!!! He is also 66 years old which means if he bought in CA in his 20' or 30's he had far cheaper prices for housing!!! My parents friends spend maybe 200K on their house that is now valued at 1 million + now!!!!! He inherited 40K and with two people working (maybe he only had one income but I assume not) plus that he did not stay not super poor!!! I only make 20K after taxes but after 12 years have only 39K cash but if you 4X the income the new number maybe 156K. If invested for the next 20 years 624K maybe on only 80K salary!!!!! 936K if the math is right and one keeps investing at the same rate. If they had these same outcomes on 50-40K that would be extremally amazing!!! Your quote: (Wow a millionaire from 80,000 a year, amazing God bless.)
@@donaldlyons17 are you bored I'm saying that because it gives me motivation. You need a new job , cuz you got too much time and no money
@@Snacks1991 Well your right on both accounts but my point wasn't how much money or time I have. It was to point out how math and conditions work (behavior only increases or decreases probabilities for different outcomes). Plus neither me nor the caller started off broke and that is important because capitalism rewards wealth over work consistently. Your quote: (are you bored I'm saying that because it gives me motivation. You need a new job , cuz you got too much time and no money)
@@donaldlyons17 lol thank you, how much did you save for the last 12 years each pay period
@@Snacks1991 These are the averages for about the first 4 years it was 500$ a month or 6,000 annually and for the next 8 years it was 300 a month or 3,600 annually. Minus COVID-19 (13K paid from savings) 52K became 40k or really 39K now!!!! I obviously love living on 13-14K but a real job (24K-35K) would obviously have had a different outcome.
once u become debt free...... literally everything feels different...... everything u look at is different
the OPTIONS u have are 10x
when bear bug (u know what im talking about) i had zero% stress while every single coworker was freaking out (we all lost our jobs)
What kind of a house can you buy in an "expensive part of California" for $600k? ⛺📦?
A tear down ,
Believe it or not, I paid off my house last Friday.
I love religious justifications. The Bible also says if you pass a man without a coat to give him your coat and that it is easier for a donkey to pass through the eye of a needle than a rich man to enter heaven. Funny how those verses weren’t mentioned.
So Dave is great for a first or second level investor/economist - my sentiment from the chat….
Why would you retire before paying off your house?!?
$189/mo, PITI under $300/mo
OMG, crushing?
And there goes the mute button: "Heeheehee, blick"
And I can't help but think, if a house payment costs 3% interest, but the 280,000 would earn 10% or more if it stayed invested, wouldn't it be wiser to just leave it invested and pay the mortgage each month?
But but when the house is paid off the grass feels different in ur back yard and u don't have the house weighing u down in the back of ur mind.
@@maranpakeer you can't eat a house. Learn what compound interest is and how to make money work for you.
You called Dave, he’s going to tell you to pay off the house.
No one called you, the disingenuous fake non-millionaire desperately chasing clout
Casey the Spammer! Spamming on Minority Mindset too! Be gone Spammer!
@@tigerak02 - Keep the fight going!
He’s on joesph Carlton also
@@tigerak02 I see Casey everywhere. Man has been hustling and is consistent. I've never seen an Alexander Kang in another comments section.
Any social security to add to the equation? If not, these guys should sell and move to a red state. Then they would have a very comfortable retirement, social security or not. I do think Dave is crazy about taking 7 or 10 percent, especially if they want to leave a legacy/unfair advantage to their kids.
Probably no social security as a pastor. I wished Dave understood the taxes that it takes to withdraw so much from the 403b and realized that they may only have 1 million left.
I'm just trying to figure out why he retired before hitting his retirement goal.
if you have over 1m and still listen to this guy, you're beyond lost.
No way he lieing on 80,000
Taxes breaks I think more to story
See? Even millionaires can’t read (a book by Dave Ramsey)…
I hope his investments are after tax. If it is before tax, and Makes a three hundred thousand dollars withdrawal he will have to pay California state and federal taxes.
Yes Dave completely missed this yikes.
66 years old and investing all in equities. No!
May need to calculate inflation to get a better analysis.
also you don't invest the same way in your 70s v your 60s. no way you are getting 10 percent returns
Is 1.2M with no debt, house paid off at age 58 enough to retire? asking for a friend
If you want to live on 45k a year sure it's enough. If you can't then no.
@@aaront936 Probably not considering the cost of health insurance. Guess I'll tell my friend to work a few more years and let compounding grow to 2M.
@@jimhandler1129 My former employer pays $2400/mo healthcare
for 20 years of service
Where is this "you should get 10% or more return!"....you just can't count on that IMO. Plan for a 5% return at that age and anything more is gravy. I mean who at 66 has 100% in the market?
Dude we don’t bring up the “7 year it doubles” talking point when the client is 66. 😂. The caller should be focusing on wealth preservation, not growing it at 10% which implies keeping it all in a ETF which can fluctuate a lot during the prime years of his retirement. Again, you get what you pay for with the advice on this channel.
dave doesnt believe in bonds
so hes keeping everything invested in normal mutual funds (his 4 kinds)
Dave is right. He has to live on this for the next 20-25 years.. he needs to keep investing how he is now.
@@agr-tech Dave’s saying invest in s&p500 which is the only ETF to return 10% for the last 100 years. But the keyword is average. Between 2000 and 2012 for 12 years this ETF was underwater. Not what you want when you’re 66 years old!
@@agr-tech and please note that blind faith without critical thinking is very dangerous. Please validate your assumptions before you chime in with “he’s right”. You’re just parroting misinformation.
@@Omikoshi78 I did. Read my second and third sentence. If you go ultra conservative (invest differently than you did to get to retirement, you have 25+ years of money to live on and run into danger of exhausting your nest egg). Yes, you do want and need 10% returns when you are 66. You cant afford 4-5% returns when you need to draw higher.
Everyone is leaving California so you may not need as much $ as you think.
Get. Out. Of. California. Nice climate, big deal.
He retired before paying off his house????
The whole point of paying off a home.
To free up money for investing for retirement.
After you retire it is a budget item.
Downsize home?
Terrible advice, don’t pay off the house early. There is no reason to pay off a 3% home mortgage when you can earn between 8-15% in retirement accounts.
Not to mention the money he’s losing because he can write off the interest on his taxes every year to lower his taxable income
It's more like 1.9% now.
@@DD-vk5yy If you want to send me $5000 in interest this year, I'll send you the $1000 in federal tax savings. That's what you're arguing for.
@@LukeofAllTrades. learn how money works instead of learning dave ramsey talking points.
@@aaront936 bless you.
10% = conservative? Yikes
I didn't invest anything in 401ks or IRAs. I made a fast fortune. I went into Art dealing with Hunter Biden. We sell $ 500,000 original Hunter Biden Art pieces to anonymous buyers. We have made a fortune by giving buyers access to " The Big Guy".
This is the worse advice imaginable.
INSPIRING.
You can live on $120,000 if you don't have any fun. Things are too expensive, too much traffic, etc.
Dave seems aggressive with rate of return of assumptions and very conservative with debt. Why payoff a 3% mortgage when you earn 10% in a mutual fund? That seems to be a 7% to the plus.
Cry me a river
What is your poop telling you?
I disagree with Dave. The caller should be withdrawing at least 30% of their nest egg every month to live comfortably
Speaker Pelosi "everything sounds like it's in a good place; everyone just needs to get to the airport."
No Americans died and we finally got out of Afghanistan after two decades. Stop letting the media tell you what to think
@@b.cdrisk2035 No media, just repeating what the speaker has been quoted in saying. Apparently everything is fine. You seem to agree. Just get to the airport, call an Uber.
@@coniccinoc Sometimes I forget how stupid partisan politics makes people.
@@b.cdrisk2035 Do you think they will have porters at the airport to help with luggage? Joe Biden on people falling to their deaths to try and escape "That was 4 days ago, 5 days ago".
@@coniccinoc Thanks for proving my point. If Trump did the same you would see the light. Guess we should have stayed a little longer huh? You know Trump brokered this deal right? Weren't you for getting out of Afghanistan ASAP a month or two ago?