1: Count your cash (deductibles, emergency fund) 2: Get free money (401k) 3: Get your liabilities under control 4: Max your tax-free money 5: Max your plans 6: Finish the drill- hit that 25% savings 7: Focus on abundance goals 8: Pay off the house 9: Remember generosity
@@christiankreitzNJrealtor gross, but if you do something like a Roth 401k, it’s okay to use that percentage instead of using the $ amount, otherwise you’re looking at needing to hit 30-35% savings (net) to reach the same % gross. I would only do this with the Roth 401k% though, not a Roth IRA or brokerage. Those should be based on your Gross income only.
I’ve been diligently working, saving and contributing towards financial freedom and early retirement, but the economy so far since the pandemic has eaten away most of my portfolio, what I want to know is this: Do I keep contributing to my portfolio in these unstable markets or do I look into alternative sectors.
Invest in S&P 500 ETF, for as long as possible. Do it as often as you can. Try not to withdraw this money and let compounding do its work. Prioritize patience and a long-term perspective most importantly consider financial advisory for informed buying and selling decisions.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $255k to $750k.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfoIlo allocation
'Laurelyn Gross Pohlmeier' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.
The professionals presently control the market since they not only have the essential business strategy but also have access to inside information that the general public is not aware of.
The issue is most people have the “I will do it myself mentality” but not skilled enough. Ideally, advisors are perfect reps for investing jobs and at first-hand experience, my portfolio has yielded over 350%, since covid-outbreak to date, summing up nearly $1m.
Judith Lynn Staufer’, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
@@ss-tx-rx2860 Agreed. James Conoles is pretty good. Though I prefer his co-worker Ari Taublieb's channel; it's more tailored to those seeking early retirement and it resonate with me more. But both are good!
I fell off from your videos for a while, but now every video on TH-cam is selling something hardcore with biased view points and I have to say you guys stayed true to furthering the growth of your followers and show you actually care. I'm so back thank you guys
In my 50s, I'm focused on investments for retirement to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket. My combined employer 401k and roth IRA of $1m returns about 4%. What would you advice to do with my portfolio for improved returns?
I only contribute 5% to get full company match, that’s it. The 401K plan is designed for you to work until you are about dead. Also, the government does not have their hands on it yet either.
Tell me about it. My 401k? Practically useless right now. I’ve got over $500k in there, but with everything going on, I’m wondering if I should just cash out and figure something else out. I’m getting closer to retirement, and the idea of relying on that fund is stressing me out.
Keep it simple, buy things you understand, take some risk but don't try to shoot the lights out. I currently have 75% SCHD and 25% ROTH IRA. Brokerage account is 40% VOO, 35% SCHD, 25% XLK. Combine balance ~$3.3m Less than 3 years until retirement.... I have about 400k in cash. My portfolio has yielded far more than I expected for my retirement. Q3 taxable divs this year was $18,388 this year. Thanks to my advisor.
@@BBmbr89 I'm intrigued by this. I've searched for financial advisrs online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I'm intrigued by this. I've searched for financial advisrs online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I’ve done things backwards. I invested first. Still saving my emergency fund and paying off my credit cards kinda at the same time. A little stressful when done out of order
Have been following you since 2018. Watched every single video and that helped me stay motivated and on track. I started late as I came from another Asian country here 401K was NOT a concept.. You really helped me understanding my finances and I have been maxing all my accounts as possible while enjoing my life as I believe tomorrow is not guaranteed. I have been driving 25 year old car that I purchased second hand its working well. I so want to buy another car which is 2020s model but when I watch your video, it just stops me from this spending :)
Can you talk about retirement as a single person and the unique differences to consider when planning? I may get married again, but I don’t want to plan that way.
Would you be interested in a TH-cam channel from a single woman who has a financial background (though not in financial services) that is just sharing her knowledge and what she has done with her own money and investments? I don’t want to take away from what these guys are doing, but it sounds like finances for single people is not the lane they choose to take. Nothing wrong with the path they are taking, but I am thinking about doing something more tailored to singles. I’m just trying to figure out how I want to do it and how much interest there is.
I feel you there. Before I bought my house, I had over $100k sitting in a traditional savings account making 0.1% interest instead of 4.5% in a HYSA... Oh well, you live and learn I guess.
Genuinely I do not understand. As a millennial, did our parents genuinely not know? Or just not care since this was back in the “good ole days” and they didn’t have to worry about it? Trying not to be resentful about not being taught a [positive] lick about money. You can help me with my inverse trigonometry homework but you can’t take 30 minutes, here and there, to set me up for a healthy financial future?!
Wow! Just found your channel. I wish my dad, god rest his soul, had transferred this knowledge to me after high school but he was from the silent generation that put his money in straight savings and trusted the US government to handle his pension after 22 years of army service. Frankly, this exact video should be required in high school. The only reason I’m good for a solid Retirment is I got lucky being in the right place at the right time working for fortune 10 companies and some lucrative Silicon Valley startups IPO that and me an instant millionaire but that was luck. If this information was accessible in 1991 when I was my daughter's age I could have saved so much strife and struggle and not needed the windfalls and sheer luck of IPOs and Apple's crazy run up in the 2000's. If you are under thirty and watching this video, bravo you are way ahead of your peers. You will sacrifice now following this advice, but light and momentary affliction pales in comparison to the harvest of peace you will experience in your later years. Sorry for the tome of a post but this is video is solid advice. Listen to these mean and follow their rubric.
This was my youtube reminder to max out my roth . Thanks. You should do this episode yearly to remind forgetful people like me. Also you should make another youtube video on January 1st to remind everyone like me to set up recurring investment transfers to my roth so that I don't almost forget to max my roth at the end of the year.
It's important to set goals and make a plan and tick boxes. Remember, wealth can mean different things to different people, one thing i can say that helped me in life to reach my first million was starting early, i got curious and informed i became open to passive income, investments in equities , etfs and the likes. Also sought help to handle my portfolio which was my foundation. i'm ever grateful to Susan Kay Mack my FA.
Looks like she really knows her stuff. I also found her online page and read through her resume, educational background, qualifications and it was really impressive.
10th thing. Read Brian's book. I'm waiting on my library to get to my hold (there are 12 people ahead of me for 4 copies). Hopefully I'll get to read it by the end of the year.
Hint: you may not need to wait until a book is released to place a hold at library. Brian's book I placed a hold last February (released in May) and got it on loan from the library the first week it was released.
Suggest people record the appraisal value of their car. write down the mileage and keep track of the insurance, gas, oil, repairs, washes and other expenses for the year. It always surprises me how much I pay per day and per mile for the convenience of a nice car that I enjoy having.
Yes even a paid off Japanese car is expensive to own when you actually calculate car-related costs. Also have to be very realistic about how much you can quicksale your car for. Bought my car for 27k, years and mileage later, I can probably get around 8-10k for it today and that’s only decreasing. Add the insurance, gas, maintenance, and washed, and transportation costs several thousands a year even when the car is paid off or bought with cash.
@@stocksxbondage Insurance on that car is going to be lower than most though. I have a paid off 4Runner and after the first couple years of ownership when I was fixing the deferred issues from the previous owner there have been almost no expenses over the last 2 years. It took a couple things to get it pass inspection when I moved, but besides insurance/gas I think my maintenance costs have been under $1k over the last 2 years, including oil changes. And except for 1 $1-2k thing I can plan for, I don't expect anything else for the next couple years.
@@stocksxbondageif your car is costing you that much and it’s only worth 8k might be time to reevaluate. Drop your insurance to liability only etc. if it’s maintenance due to car breaking down I’d buy a new car and use the 8k for the 20% down.
@@joeltroughton3021 Lmao! Please use math to explain why I should sell my paid off Lexus that’s only required typical maintenance to go “buy a new car” just to end up doing that exact same maintenance on the new car (tires, brakes, spark plugs, oil changes, full coverage insurance on a financed car, gas, etc.) And please use math to make this make sense. Off the top of my head I know getting into car debt is the wrong answer when the maintenance, gas, and insurance of my current car is less than 3% of my annual income.
I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2025
Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.
Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Cant you build an emergency fund in your country? Does no one pay interest? No debt in your country? Is it against the law to live below your means? Not everyone here has access to an HSA, or Roth 401K. The principle applies though. If you save dollars, marks or yen, you will still be better off than someone who doesnt.
Plan for the future expenses! The time to start a college fund is when the child is born. You need that 18 years for the college fund to grow. College should not be a surprise when the child hits 18 years old.
Worth mentioning that it’s not all or nothing. You can pay for a significant portion or even wait a few years. Assuming a 4yr program, they won’t be out until age 22. You’ve got at least 22yrs to grow it. At a 10% avg return, that’s roughly $50-60 a month for 50k. Or roughly 7-8k lump sum at birth with no additional contributions. I mean you could just choose to not drive a nice car to accomplish this. (Numbers above are conservative and considering only a taxable brokerage, so not even a 529 plan)
@@stocksxbondage We started at birth and raised 180K for our child's education. We did not know how much it would take, and we did not know where she might need to go (Yale was an option at 60K/yr). In the end it took about $100K for her to graduate debt free, she chose a good college and took my wife's bribe. But we have a plan and executed it for 18 years. And her starting salary? 68K with no debt. (The Bribe: she you went to either of these two great universities, when you graduate you will either get a car, or a down payment on a condo.) So, it takes planning, and if planned early enough, fund growth will make the larger contribution.
Put on your own oxygen mask first. We spent years working through the FOO before getting to college funding. Now we’re able to cash flow the oldest (age 13) & start a fund for the other 2 kids. I’m so glad I got my HSA & Roth going years before the college fund.
@@chemquests My retirement fund and brokerage account were started at 25, my daughters college fund was started at 37. So yes, it is good to finish college, get a good job, start building vacation and benefits, then have a child. For me that was much better than starting a family while being young and broke. But planning helps a lot.
@ I served in the military in my 20s & graduated with my PhD at 32, so late start. 30’s was clearing debt & emergency fund. 40’s was having kids, investing & paying cash for cars. Approaching 50 with good retirement funds, college savings & brokerage fund to payoff mortgage. We all have our personal journey & I’m glad we could share our own paths. My only point is that starting the college fund isn’t always when the child is born. Sometimes it’s better later & it seems to overlay well with the FOO.
Treasury 1 month T-Bill ladders. We have $60k in T bill ladder. $15k can mature every week if we turned off reinvest. Only do this through Treasury Direct! Don't do this through a broker because they let it sit in cash after each cycle. Also, each $15k batch is in $2,500 separate bills. Our ladder is $15k per week over 4 weeks. Week 1, 2, 3, and 4. If we need money, we just turn reinvest off and it is sent to us within a week.
Real estate is nice but it does take extra work. Having a rental property does require extra time. I had rental properties when I was younger but when I got older and had a family I chose to sell them and free up some time. And you need to understand the local and state laws. Some states have become so pro renter that is almost impossible to evict poor and horrible tenants. That’s the ugly side many people don’t talk about.
I got burned on employee stock purchase plan. My company was bought out privately. They force sold our stock at huge loss because company obviously knew it was coming. So we all were buying it in 20s and 30s stock price for years. Then they announce buyout stock was close to 10$ a share. Wish I just had put that money in 401k the whole time.
Roth is $7000 (same as next year) a year max. 401(k) is 23,000 (23,500 in 2025). I divide each by 52 weeks (a year), and since the Roth is much lower, it’s quicker to max. Then you can start really hitting your 401(k), but $23,000 is quite a bit to reach; for some people, that’s 1/3-1/2 of their income.
3:00 you guys had me going there for a minute lol I JUST took all my emergency cash and put it in a High Yield Savings account recently and thought you saying to take it all back out again lmao
Where does saving up for a house come into play?? After building up emergency reserves?? I have no debt, built up emergency fund but now unsure if i should stop roth and save for house oor a little of both?
what do you think about maxing out 401k, while anticipating taxes in same tax year by paying extra federal and state income tax (FIT, SIT payroll withholding) in order to pay for a Roth conversion same year?
7:21 woah I don’t think I ever considered that. Due to stock vesting I hit the marginal tax rate of 32%. I’m on the lower end of it but I always subscribed to the ROTH is best so I was using the back door to put in extra funds. When you put it like this though I guess maybe atleast for a portion of my money it would have been better to do pre tax and then leverage a year where Im low income/taking a break to roll over
For Roth vs Traditional, when tax rate is over 30% how is the growth being taxable when distributing and required distributions in traditional compared to growth being tax free in a Roth factored in?
Is it advisable to file exempt/ adjust my withholdings for a week or two leading up to my bonus, in order to maximize HYSA rates once I put the money into it?
On the topic of generosity at the end of the video. What are your guys' thoughts on this trend of restaurants making the tip button to start at 18 or 20%? Even for drive through or take out. I'm conflicted because food service is a dead end job and so I want to help those just starting out, but if we reinforce this track then there is no incentive to break out of it to help,the larger growth of the economy and opportunity for all. Even worse is dining at places that have mandatory service fees. Is this is a wise use of money or guilt tripping or an indicator that the employer is a schmuck and trying not to get their customers to pay their employees instead of them paying a living wage? I'm dubious that workers even get the tip in the end. Especially when apps like toast and clover are just software and the owner can do additional adjustments to make the tips appear less than actual to the workers.
Can yall provide what equation you use for MAGI to figure Roth income eligibility? I just started a new job, I’m making more money, but I’m also maxing a 403b and HSA. I maxed my Roth last spring, but I wanna be sure it’s ok. IRS MAGI definition seems deliberately vague.
Can you go into some details on how to balance ESPP and stock compensation with diversifying your portfolio? Especially when it comes to short term capital gains taxes and having too many eggs in your employers basket.
If buying your company’s stock (or any individual stock) isn’t part of your current risk plan then sell the day the stock vests. I empty my ESPP every 6 months because that’s the vesting schedule
I don’t think they have or would do such an episode. Brian regularly references his own situation of being able to pay off his house but not doing so yet. They consider it one’s own choice relative to personal abundance goals. Step 9 is dealer’s choice.
I think investors should always put their cash to work but more especially they need to put their money to work in this fourth quarter of 2024, we'll start to see more market diversification towards the last month of the year (and the first half of January 2025). I’m up 87% last year with a 7 figure portfolio well positioned with good blue chip companies AND I have stop losses in place, Personally with insights from my FA Abigail Ann Ryan I prefer to invest in large cap companies which have economic moats, large cash flows and strong balance sheets. Hoping to hit the three million mark before 2026!
Every week I buy more of whatever is the lowest percentage of my portfolio and try to keep everything around 10%. Please what could be my safest buys with $400k to outperform the market in 2024?
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
I just realized that Im going to be $14200 over my 25% savings this year. That could’ve been an extra vacation. Oh well, next year I’ll take the fam to europe. If it’s still there.
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Brooke Miller.
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
I've just begun learning about value investing, and I've found that many good stocks are undervalued despite their intrinsic value. If you had $200,000 to create a strong investment portfolio, which stocks would you choose for better returns?
It’s a small thing, but I really wish we would move away from talking about employer match as free money. It isn’t “free money,” it’s a part of your total compensation package. Any employee who does not take advantage of their employer match is not receiving total compensation for their work. A company generally offers employee compensation through many avenues, like healthcare, discounts, stock purchase plans, etc. All of these things together make up an employee’s total compensation package. Not all parts of the compensation package are really all that beneficial, but some are industry standard and for good reason. Not only is this a better way of talking about the employer match, but it’s literally what’s happening with an employer match. I also just find it more convincing. When I hear that my company, which often doesn’t seem to value my time or effort, is going to give me “free” money, it sounds too good to be true. And the reality is that it is too good to be true. Because that free money isn’t free. You are literally working for it, but not getting paid it by not participating in its requirements.
I hear constantly that reaching the first 100K is when wealth starts to snowball but is the first 100K in reference to money in one account or can be it split into multiple accounts like ROTH IRA / 401K / HYSA?
Can you guys talk about how to budget for the holidays? I feel like i end up in a good place financially then Christmas comes around I end up overspending on gifts.
Two ideas: (1) since Christmas comes at the end of every year and is never a surprise, set aside a set amount each month in your own Christmas bucket so you have a reserve ready to spend at Christmastime. Commit to spending no more than what is in that fund; (2) Combine the first idea with using creative ideas to significantly reduce the amount you spend on your family and friends. It is the thought that counts - presents need not cost a lot to be meaningful
@@godblessyou7376we used to make presents for Christmas gifts. Now we are proposing donations in their name for the charity of their choice. Most of us don’t need more stuff.
How do i decide whats the best Roth IRA company to go with? Im 30 and putting 25% into my 401k but id like to get a Roth going sooner rather than later.
I personally use Fidelity. Extremely easy to setup and use and I like their app interface. I have Vanguard with my company 401k and I find the navigation to be much more difficult and less user friendly. No idea about Schwab, but it’s also an option. You can’t really go wrong with any of the big names.
@@crash2bandicot I second this comment. I use Schwab, no complaints. Pretty easy to use. The guys have always like Schwab, Fidelity, and Vanguard. Chase is okay, kind of simple, not many options, but if your other accounts are there, it's okay.
I use vanguard because when I started mine out, they had the lowest ER rates. But I tell my coworkers to go with whoever you want. If you're in an index fund, in the same assets, then they're all about the same. Fidelitys s and p 500 has a 0.02 ER, vanguard is 0.03, both have brought in about the same amount annually.
Not sure about state to state, but experts will say that HSA are triple tax advantage. If you can max it out, do so from what I've seen. I don't qualify, but max out my FSA annually.
If you’re in a tax bracket that it benefits you to have a Roth 401k, should you skip having a Roth IRA, why or why not? Assume steps 1-4 are done, and you’re confused on steps 5 and 6. Also assume there is no need to estate plan for a younger generation.
I personally contribute to both a Roth 401k and Roth IRA due to my income level and age. Roth 401ks are not mentioned often because they are less commonly offered and in some cases companies don’t provide a match. Make sure you read your 401k plan carefully. You can definitely substitute a Roth 401k for a Roth IRA, but you gain a lot of flexibility with an IRA in terms of fund options and withdrawal terms. But you can contribute more to a 401k yearly. I’d weigh your fund options in the 401k and see if they are something you’d like to be invested in over what you were going to choose in the IRA.
Should you skip Roth IRA? No. Why: a Roth IRA gives you more investment options than your roth 401k. Also, for most, an employer's match is typically tax deferred, so most likely 100% of your Roth 401k is not Roth.
@@Lucky008aau you’re correct, however my company offers darn near every index fund imaginable. So why get a Roth IRA with vanguard options, when I have vanguard options with the Roth 401k? And sure, I’m putting in 15%, company is putting in 11%. The 11% is not Roth, but the reality is, for me to max out my Roth 401k at 15% contribution without using backdoor, you’re talking about an income of beyond 150k/year. With my brokerage account, high yield savings account for 2nd house, and health savings account, the way I would max my IRA out would be to reduce my Roth IRA, and the options are so good for my Roth 401k, the IRA plans would be the same, Vanguard index, large cap, medium cap, small cap, proper %’s.
@@throwaway3645 so the situation here would be you would be reducing your Roth 401k contribution to transition to a Roth IRA, and due to amazing options through the company, the index funds chosen would likely be the same either way. It seems like overcomplicating things for a net zero gain. The only thing I can think of for a Roth IRA to be useful in my use case is to retire a year or two earlier and be able to withdraw on the initial Roth IRA tax free.
Its all about the 401k plan fees and investment options. Generally, the fees are higher in a 401k and the investment options are more limited. However, there are some big advantages to the 401k. It is protected against personal liability in addition to bankruptcy, while the IRA only protects against bankruptcy. Also, if you retire (leave) from your 401k company you can withdraw penalty free at 55 while the penalty free age for IRA is 59.5. The key is to decide for you how the pros and cons of each measure out. Another option when not certain is to hedge and contribute some to both.
Once again, pretty good content. HOWEVER, most of these can and should be done with dividend paying whole life insurance from a mutual company, properly structured for the banking function. That should be THE FIRST stop for your money. In those policies are your savings, your emergency fund, retirement account, your liquid capital for literally ANYTHING you want or need to use that capital for.
Who is this advice actually for? The average income in America is around $70k a year, if not actually lower when excluding millionaires and up. The jump to 32% from 24% federal tax occurs at 198k in 2025. Who are these 6 figure earners that either don't have a financial planner or don't understand tax bracketing, max out their retirement options, have an emergency fund, etc?
Desperately need an advice. We have $20,000 credit card debt that is on 0%apr but will be 18% soon. Should I loan money off my TSP for 4%apr payable for 18mos to pay off the debt? We have 3mos emergency savings and $500,000 in investments
Pay half from emergency savings and half from tsp. After that cut the spending as much as you can to replenish the emergency. After emergency savings is back to 3 months prepay the tsp loan
I never could understand that "logic" regarding the "depreciation" of a car. If you plan on keeping your car for many years, then WHO WOULD CARE if your car depreciates? It's not an asset. I buy my cars brand new and now (10-years later) I could give a crap what the 'depreciation value' is of my car. My last (brand new car) was kept for 20-years before i bought the car that I have now (which is now 10-years old). No thank you, I will keep with buying brand new cars. I will try and stretch this one for another 10-years before I buy my LAST brand new car for the remainder of my driving-life :)
Regular viewer because the content is great AND the progress bar doesn't look like a SponsorBlock rainbow - ie the content doesn't all feel like an ad.
When you make high incomes, the social safety nets replace much less of your income compared to the typical person, which means that if you wish to maintain that lifestyle, you must carry more weight
Agree with everyone else, but also, high income is also more likely to contribute to traditional. If you do 21% into Roth + 4% match, that might be more spendable money in retirement than 25% traditional + 4% match.
@@emoney1231I’ve totally switch to the Roth with my contributions and employer traditional only. I’ve been doing last 2 years and 5 to go till retirement
CC debt is 20-30%+ compounding. Employer match may be 100% one time, but is 10% at best (maybe negative) past that initial match. So if someone is potentially looking at lonf term CC debt and the hits to credit score that goes along with that perhaps CC debt should be a higher priority.
Free employer matching money, when invested, is compounding at 8-10% for many more years than a person should hold credit card debt. Do both. If you can't, lower your lifestyle and/or increase income.
Assuming a 25% CC interest and 8% rate of return, getting dollar for dollar match and investing that will obvioug be more beneficial immediately. It would take over 4 years before you reach the break even point where CC interest has compounded to exceed that initial advantage of matching. It's about 2.5 years for 50cents on the dollar matching.
@@BenFranklin1776 this is assuming that the type of person who gets cc debt gets out in 4years. I never have carried over cc debt, and always did employer maych too. But I suspect the type of person who would willingly sign up for a 25% loan is not likely to pay it off in 4 years, nor allow employer match to compound to retirement.
![ลองสุ่มไอโฟน 990 โกงมั้ย? [ โกงมั้ยครับ ep.101 ] | DOM](http://i.ytimg.com/vi/bfsWe0j492k/mqdefault.jpg)
1: Count your cash (deductibles, emergency fund)
2: Get free money (401k)
3: Get your liabilities under control
4: Max your tax-free money
5: Max your plans
6: Finish the drill- hit that 25% savings
7: Focus on abundance goals
8: Pay off the house
9: Remember generosity
Thanks for the list. It would be great if the makers of videos would take care of this.
Number Ten Run It Back Again
25% is based on gross income, or net income?
@@christiankreitzNJrealtor
Gross
@@christiankreitzNJrealtor gross, but if you do something like a Roth 401k, it’s okay to use that percentage instead of using the $ amount, otherwise you’re looking at needing to hit 30-35% savings (net) to reach the same % gross.
I would only do this with the Roth 401k% though, not a Roth IRA or brokerage. Those should be based on your Gross income only.
I’ve been diligently working, saving and contributing towards financial freedom and early retirement, but the economy so far since the pandemic has eaten away most of my portfolio, what I want to know is this: Do I keep contributing to my portfolio in these unstable markets or do I look into alternative sectors.
Invest in S&P 500 ETF, for as long as possible. Do it as often as you can. Try not to withdraw this money and let compounding do its work. Prioritize patience and a long-term perspective most importantly consider financial advisory for informed buying and selling decisions.
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $255k to $750k.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfoIlo allocation
'Laurelyn Gross Pohlmeier' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.
The professionals presently control the market since they not only have the essential business strategy but also have access to inside information that the general public is not aware of.
The issue is most people have the “I will do it myself mentality” but not skilled enough. Ideally, advisors are perfect reps for investing jobs and at first-hand experience, my portfolio has yielded over 350%, since covid-outbreak to date, summing up nearly $1m.
I find your situation fascinating. Would you be willing to offer a trusted advisor you've worked with?
Judith Lynn Staufer’, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
Best financial channel out there.
The only one that doesn’t treat us like we’re 5 years old 😂
Check out James Conole as well. Different style, but the same sort of actually well thought out information.
@@ss-tx-rx2860 Agreed. James Conoles is pretty good. Though I prefer his co-worker Ari Taublieb's channel; it's more tailored to those seeking early retirement and it resonate with me more. But both are good!
I fell off from your videos for a while, but now every video on TH-cam is selling something hardcore with biased view points and I have to say you guys stayed true to furthering the growth of your followers and show you actually care. I'm so back thank you guys
I needed to hear this today. Almost 27 years old and I am finally feeling in control of my financial life.
In my 50s, I'm focused on investments for retirement to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket. My combined employer 401k and roth IRA of $1m returns about 4%. What would you advice to do with my portfolio for improved returns?
I only contribute 5% to get full company match, that’s it. The 401K plan is designed for you to work until you are about dead. Also, the government does not have their hands on it yet either.
Tell me about it. My 401k? Practically useless right now. I’ve got over $500k in there, but with everything going on, I’m wondering if I should just cash out and figure something else out. I’m getting closer to retirement, and the idea of relying on that fund is stressing me out.
Keep it simple, buy things you understand, take some risk but don't try to shoot the lights out. I currently have 75% SCHD and 25% ROTH IRA. Brokerage account is 40% VOO, 35% SCHD, 25% XLK. Combine balance ~$3.3m Less than 3 years until retirement.... I have about 400k in cash. My portfolio has yielded far more than I expected for my retirement. Q3 taxable divs this year was $18,388 this year. Thanks to my advisor.
@@BBmbr89 I'm intrigued by this. I've searched for financial advisrs online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I'm intrigued by this. I've searched for financial advisrs online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I’ve done things backwards. I invested first. Still saving my emergency fund and paying off my credit cards kinda at the same time. A little stressful when done out of order
Have been following you since 2018. Watched every single video and that helped me stay motivated and on track. I started late as I came from another Asian country here 401K was NOT a concept.. You really helped me understanding my finances and I have been maxing all my accounts as possible while enjoing my life as I believe tomorrow is not guaranteed. I have been driving 25 year old car that I purchased second hand its working well. I so want to buy another car which is 2020s model but when I watch your video, it just stops me from this spending :)
Always a fan of Financial channels that encourage donations/generosity! (At the end) Not all do this.
Who else says out loud “Brian I am SO excited about this” at the start of every video?
Sales men. Politicians. Liars.
Can you talk about retirement as a single person and the unique differences to consider when planning? I may get married again, but I don’t want to plan that way.
THIS 🔼🔼🔼🔼🔼🔼🔼
More topics for singles.
Would you be interested in a TH-cam channel from a single woman who has a financial background (though not in financial services) that is just sharing her knowledge and what she has done with her own money and investments?
I don’t want to take away from what these guys are doing, but it sounds like finances for single people is not the lane they choose to take.
Nothing wrong with the path they are taking, but I am thinking about doing something more tailored to singles. I’m just trying to figure out how I want to do it and how much interest there is.
one of my biggest regrets next to not investing early is didn't know about HYSA for years, missing out all those interests
I feel you there. Before I bought my house, I had over $100k sitting in a traditional savings account making 0.1% interest instead of 4.5% in a HYSA... Oh well, you live and learn I guess.
Truth. Most are in this boat @@dunker2be
I just found out about HYSA a couple of months ago and I’m just as mad considering the wild inflation of the last few years.
Genuinely I do not understand. As a millennial, did our parents genuinely not know? Or just not care since this was back in the “good ole days” and they didn’t have to worry about it? Trying not to be resentful about not being taught a [positive] lick about money.
You can help me with my inverse trigonometry homework but you can’t take 30 minutes, here and there, to set me up for a healthy financial future?!
Wow! Just found your channel. I wish my dad, god rest his soul, had transferred this knowledge to me after high school but he was from the silent generation that put his money in straight savings and trusted the US government to handle his pension after 22 years of army service. Frankly, this exact video should be required in high school. The only reason I’m good for a solid Retirment is I got lucky being in the right place at the right time working for fortune 10 companies and some lucrative Silicon Valley startups IPO that and me an instant millionaire but that was luck. If this information was accessible in 1991 when I was my daughter's age I could have saved so much strife and struggle and not needed the windfalls and sheer luck of IPOs and Apple's crazy run up in the 2000's. If you are under thirty and watching this video, bravo you are way ahead of your peers. You will sacrifice now following this advice, but light and momentary affliction pales in comparison to the harvest of peace you will experience in your later years. Sorry for the tome of a post but this is video is solid advice. Listen to these mean and follow their rubric.
This was my youtube reminder to max out my roth . Thanks. You should do this episode yearly to remind forgetful people like me. Also you should make another youtube video on January 1st to remind everyone like me to set up recurring investment transfers to my roth so that I don't almost forget to max my roth at the end of the year.
Evaluating the (Investing in Roth vs Pre-Tax 401k) is probably the best analogy that I've seen. Thanks for sharing!
It's important to set goals and make a plan and tick boxes. Remember, wealth can mean different things to different people, one thing i can say that helped me in life to reach my first million was starting early, i got curious and informed i became open to passive income, investments in equities , etfs and the likes. Also sought help to handle my portfolio which was my foundation. i'm ever grateful to Susan Kay Mack my FA.
Consistently investing in quality dividend paying companies over the long term is a relatively easy strategy to create generational wealth
Looks like she really knows her stuff. I also found her online page and read through her resume, educational background, qualifications and it was really impressive.
A million in profit is a lovely milestone.
i feel i downplayed the role of FA's in the past.. now actively looking to get one.
10th thing. Read Brian's book. I'm waiting on my library to get to my hold (there are 12 people ahead of me for 4 copies). Hopefully I'll get to read it by the end of the year.
Hint: you may not need to wait until a book is released to place a hold at library. Brian's book I placed a hold last February (released in May) and got it on loan from the library the first week it was released.
Suggest people record the appraisal value of their car. write down the mileage and keep track of the insurance, gas, oil, repairs, washes and other expenses for the year. It always surprises me how much I pay per day and per mile for the convenience of a nice car that I enjoy having.
Yes even a paid off Japanese car is expensive to own when you actually calculate car-related costs. Also have to be very realistic about how much you can quicksale your car for. Bought my car for 27k, years and mileage later, I can probably get around 8-10k for it today and that’s only decreasing. Add the insurance, gas, maintenance, and washed, and transportation costs several thousands a year even when the car is paid off or bought with cash.
Just make sure people don't add appraisal value to net worth. Car is so rapidly depreciating
@@stocksxbondage Insurance on that car is going to be lower than most though. I have a paid off 4Runner and after the first couple years of ownership when I was fixing the deferred issues from the previous owner there have been almost no expenses over the last 2 years. It took a couple things to get it pass inspection when I moved, but besides insurance/gas I think my maintenance costs have been under $1k over the last 2 years, including oil changes. And except for 1 $1-2k thing I can plan for, I don't expect anything else for the next couple years.
@@stocksxbondageif your car is costing you that much and it’s only worth 8k might be time to reevaluate. Drop your insurance to liability only etc. if it’s maintenance due to car breaking down I’d buy a new car and use the 8k for the 20% down.
@@joeltroughton3021 Lmao! Please use math to explain why I should sell my paid off Lexus that’s only required typical maintenance to go “buy a new car” just to end up doing that exact same maintenance on the new car (tires, brakes, spark plugs, oil changes, full coverage insurance on a financed car, gas, etc.)
And please use math to make this make sense. Off the top of my head I know getting into car debt is the wrong answer when the maintenance, gas, and insurance of my current car is less than 3% of my annual income.
Ron, I am SO EXCITED to be commenting on this video!
I have made more in interest in 1 MONTH with my HYSA than I have in my entire life with checking and regular savings accounts.
What bank ?
@Gforu81 American Express. It was at 4.5% (it is now 4.0%).
@@hulkslayer626 thanks
Me too and I am so sad about it
This is the greatest video ever.
Excellent priority list. Much appreciated!
I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2025
Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.
Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you
I wish we had a channel like this specific to my country.
Which country?
Cant you build an emergency fund in your country? Does no one pay interest? No debt in your country? Is it against the law to live below your means? Not everyone here has access to an HSA, or Roth 401K. The principle applies though. If you save dollars, marks or yen, you will still be better off than someone who doesnt.
Maybe YOU should start the channel
Yo that intro....never changes.... "BRIAN I AM SOOOOO EXCITED" its just funny at this point 😂❤. Watch their old videos 😂
Keep in mind many high deductible plans cover preventive health screenings. My high deductible plan covered colonoscopy 100% with 0 out of pocket.
Plan for the future expenses! The time to start a college fund is when the child is born. You need that 18 years for the college fund to grow. College should not be a surprise when the child hits 18 years old.
Worth mentioning that it’s not all or nothing. You can pay for a significant portion or even wait a few years. Assuming a 4yr program, they won’t be out until age 22. You’ve got at least 22yrs to grow it. At a 10% avg return, that’s roughly $50-60 a month for 50k. Or roughly 7-8k lump sum at birth with no additional contributions. I mean you could just choose to not drive a nice car to accomplish this. (Numbers above are conservative and considering only a taxable brokerage, so not even a 529 plan)
@@stocksxbondage We started at birth and raised 180K for our child's education. We did not know how much it would take, and we did not know where she might need to go (Yale was an option at 60K/yr). In the end it took about $100K for her to graduate debt free, she chose a good college and took my wife's bribe. But we have a plan and executed it for 18 years. And her starting salary? 68K with no debt. (The Bribe: she you went to either of these two great universities, when you graduate you will either get a car, or a down payment on a condo.) So, it takes planning, and if planned early enough, fund growth will make the larger contribution.
Put on your own oxygen mask first. We spent years working through the FOO before getting to college funding. Now we’re able to cash flow the oldest (age 13) & start a fund for the other 2 kids. I’m so glad I got my HSA & Roth going years before the college fund.
@@chemquests My retirement fund and brokerage account were started at 25, my daughters college fund was started at 37. So yes, it is good to finish college, get a good job, start building vacation and benefits, then have a child. For me that was much better than starting a family while being young and broke. But planning helps a lot.
@ I served in the military in my 20s & graduated with my PhD at 32, so late start. 30’s was clearing debt & emergency fund. 40’s was having kids, investing & paying cash for cars. Approaching 50 with good retirement funds, college savings & brokerage fund to payoff mortgage. We all have our personal journey & I’m glad we could share our own paths. My only point is that starting the college fund isn’t always when the child is born. Sometimes it’s better later & it seems to overlay well with the FOO.
I love that you guys always speak normally
So many finance channels have the most annoying people lol
Been following you guys for a while. What is the best way to ask a question and get it answered ? I want an answer and guidance from someone I trust
Treasury 1 month T-Bill ladders. We have $60k in T bill ladder. $15k can mature every week if we turned off reinvest. Only do this through Treasury Direct! Don't do this through a broker because they let it sit in cash after each cycle.
Also, each $15k batch is in $2,500 separate bills.
Our ladder is $15k per week over 4 weeks. Week 1, 2, 3, and 4.
If we need money, we just turn reinvest off and it is sent to us within a week.
Big Bo with the..."license and registration, please" stache...👮♂️
This is really an amazing video with a lot of great information that most people aren't aware of.
Real estate is nice but it does take extra work. Having a rental property does require extra time. I had rental properties when I was younger but when I got older and had a family I chose to sell them and free up some time. And you need to understand the local and state laws. Some states have become so pro renter that is almost impossible to evict poor and horrible tenants. That’s the ugly side many people don’t talk about.
Thats why I never went that route. I sticked to mutual funds for passive income.
Am I the only one who tuned in to see how excited Bo was?
I got burned on employee stock purchase plan. My company was bought out privately. They force sold our stock at huge loss because company obviously knew it was coming. So we all were buying it in 20s and 30s stock price for years. Then they announce buyout stock was close to 10$ a share. Wish I just had put that money in 401k the whole time.
😢
Any comments on online Saving Betterment?? starting my savings for grandchild at 100.00 a month...she's only 3 ..
What about trad 401K vs. Roth 401k. Which is better? Do the same argument for traditional IRA vs. Roth IRA apply to this as well?
Excellent episode. Thanks gentlemen!
Question do my husband and I pay off the high interest credit cards first? I keep seeing conflicting accounts on this.
I max my roth and my wife's. We max my 401k in traditional investments. Should I switch to the Roth for the 401k?
Roth is $7000 (same as next year) a year max.
401(k) is 23,000 (23,500 in 2025). I divide each by 52 weeks (a year), and since the Roth is much lower, it’s quicker to max. Then you can start really hitting your 401(k), but $23,000 is quite a bit to reach; for some people, that’s 1/3-1/2 of their income.
3:00 you guys had me going there for a minute lol I JUST took all my emergency cash and put it in a High Yield Savings account recently and thought you saying to take it all back out again lmao
Where does saving up for a house come into play?? After building up emergency reserves?? I have no debt, built up emergency fund but now unsure if i should stop roth and save for house oor a little of both?
No, Bo, the stash is a No Go.
what do you think about maxing out 401k, while anticipating taxes in same tax year by paying extra federal and state income tax (FIT, SIT payroll withholding) in order to pay for a Roth conversion same year?
WOAH! 0% long-term capital gains tax bracket? You guys need to make a video on this I have never heard about that. 22:48
7:21 woah I don’t think I ever considered that. Due to stock vesting I hit the marginal tax rate of 32%. I’m on the lower end of it but I always subscribed to the ROTH is best so I was using the back door to put in extra funds. When you put it like this though I guess maybe atleast for a portion of my money it would have been better to do pre tax and then leverage a year where Im low income/taking a break to roll over
Was it difficult to do the backdoor? I’m kinda confused on how to do it.
For Roth vs Traditional, when tax rate is over 30% how is the growth being taxable when distributing and required distributions in traditional compared to growth being tax free in a Roth factored in?
Is it better to refinance or recast a mortgage ?
Can you change from Roth 401k to Pre-Tax 401k at the end of 2024, in November? If we change it now, will it apply for the entire year of 2024?
Just subscribed!
Big guy bo the mustache is a hard no go
It looks more like an attempt.... "Just for men" could help.
stash is trash!
Said his wife likes it, so unless you’re trying to compete with her 🤫
Probably for Movember. But yeah once it's over he needs to go clean shaven again. Some people just look better that way.
‘Porn’ stash! Got to to!
Is it advisable to file exempt/ adjust my withholdings for a week or two leading up to my bonus, in order to maximize HYSA rates once I put the money into it?
What type of brokerage accounts offer early access with 0 penalty? I missed that point. How do i realize the 0% long term capital gains ?
Nice stash
On the topic of generosity at the end of the video. What are your guys' thoughts on this trend of restaurants making the tip button to start at 18 or 20%? Even for drive through or take out. I'm conflicted because food service is a dead end job and so I want to help those just starting out, but if we reinforce this track then there is no incentive to break out of it to help,the larger growth of the economy and opportunity for all. Even worse is dining at places that have mandatory service fees. Is this is a wise use of money or guilt tripping or an indicator that the employer is a schmuck and trying not to get their customers to pay their employees instead of them paying a living wage? I'm dubious that workers even get the tip in the end. Especially when apps like toast and clover are just software and the owner can do additional adjustments to make the tips appear less than actual to the workers.
Wow, I didn’t know owners can adjust the tip amount in the software. Think I will pay cash to the servers moving forward.
Can yall provide what equation you use for MAGI to figure Roth income eligibility?
I just started a new job, I’m making more money, but I’m also maxing a 403b and HSA. I maxed my Roth last spring, but I wanna be sure it’s ok.
IRS MAGI definition seems deliberately vague.
You can Google roth ira contribution income limits
Can you go into some details on how to balance ESPP and stock compensation with diversifying your portfolio? Especially when it comes to short term capital gains taxes and having too many eggs in your employers basket.
If buying your company’s stock (or any individual stock) isn’t part of your current risk plan then sell the day the stock vests. I empty my ESPP every 6 months because that’s the vesting schedule
@@kaspar3210
Same here. I just look at it as an extra small bonus couple times a year. I sell and immediately buy index funds.
Great show!!
Good info, thanks guys!
Does anyone remember an episode dedicated to mortgage repayment and corresponding interest rates to ages?
I don’t think they have or would do such an episode. Brian regularly references his own situation of being able to pay off his house but not doing so yet. They consider it one’s own choice relative to personal abundance goals. Step 9 is dealer’s choice.
I think investors should always put their cash to work but more especially they need to put their money to work in this fourth quarter of 2024, we'll start to see more market diversification towards the last month of the year (and the first half of January 2025). I’m up 87% last year with a 7 figure portfolio well positioned with good blue chip companies AND I have stop losses in place, Personally with insights from my FA Abigail Ann Ryan I prefer to invest in large cap companies which have economic moats, large cash flows and strong balance sheets. Hoping to hit the three million mark before 2026!
Invest in stable stocks, my rule: if you previously liked the stock, then you should love it at a discounted price.
Nice, interesting picks.
She appears to be well-educated and well-read. I did a search on her name and came across her web, thank you for sharing
I did read about Abigail Ann Ryan on the web., quite a great resume she has
Every week I buy more of whatever is the lowest percentage of my portfolio and try to keep everything around 10%. Please what could be my safest buys with $400k to outperform the market in 2024?
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
I just realized that Im going to be $14200 over my 25% savings this year. That could’ve been an extra vacation. Oh well, next year I’ll take the fam to europe. If it’s still there.
Wait. Should I have highest deductible plus 6 month emergency fund? My 6 month emergency fund is much higher than my deductible.
I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Brooke Miller.
I'm surprised that you just mentioned and recommended Brooke Miller, I met her at a conference in 2018 and we have been working together ever since.
The very first time we tried, we invested $1000 and after a week, we received $5500. That really helped us a lot to pay up our bills.
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I'm new at this, please how can I reach her?
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
Those investment replacement rates in retirement, are those % based on an inflation adjusted income or how can I think about those %?
That’s right
We even have a 100% match at 5% and still cant get 40% of the employees to start a 401k with that offer...
I know, it’s crazy employees are willing to let go of free money from employer.
I've just begun learning about value investing, and I've found that many good stocks are undervalued despite their intrinsic value. If you had $200,000 to create a strong investment portfolio, which stocks would you choose for better returns?
It’s a small thing, but I really wish we would move away from talking about employer match as free money. It isn’t “free money,” it’s a part of your total compensation package. Any employee who does not take advantage of their employer match is not receiving total compensation for their work. A company generally offers employee compensation through many avenues, like healthcare, discounts, stock purchase plans, etc. All of these things together make up an employee’s total compensation package. Not all parts of the compensation package are really all that beneficial, but some are industry standard and for good reason. Not only is this a better way of talking about the employer match, but it’s literally what’s happening with an employer match. I also just find it more convincing. When I hear that my company, which often doesn’t seem to value my time or effort, is going to give me “free” money, it sounds too good to be true. And the reality is that it is too good to be true. Because that free money isn’t free. You are literally working for it, but not getting paid it by not participating in its requirements.
Semantics. You obviously thoroughly understand the benefit. But most people don’t. “Free” money instantly clicks with that 20 year old new employee.
My employer has a measly 2% match, and otherwise a great place to work. My 2% invested is approaching $15k after five years.
I can’t do a HSA if I have a PPO through work already though.
You have to choose the HDHP at open enrollment for HSA. Not all employers offer it.
Is Bo growing a dastardly villain ‘stache? 😼
Good Video
I hear constantly that reaching the first 100K is when wealth starts to snowball but is the first 100K in reference to money in one account or can be it split into multiple accounts like ROTH IRA / 401K / HYSA?
The money grows the same whether it's in 1 account or 10
@@marksweetser6312 Thanks for the confirmation!
I work at Amazon, I ain’t maxing out crap
Great episode. But is Bo growing a mustache for no shave November?
Can you guys talk about how to budget for the holidays? I feel like i end up in a good place financially then Christmas comes around I end up overspending on gifts.
Two ideas: (1) since Christmas comes at the end of every year and is never a surprise, set aside a set amount each month in your own Christmas bucket so you have a reserve ready to spend at Christmastime. Commit to spending no more than what is in that fund; (2) Combine the first idea with using creative ideas to significantly reduce the amount you spend on your family and friends. It is the thought that counts - presents need not cost a lot to be meaningful
@@godblessyou7376we used to make presents for Christmas gifts. Now we are proposing donations in their name for the charity of their choice. Most of us don’t need more stuff.
Momento MORI
@TheMoneyGuyShow Any thoughts on placing primary residence into a revocable living trust? 42 yr old married couple on step 8. Thanks
I thought the mustache would grow on me… but it is not. Pun intended.
He looks like a vintage baseball card
Don’t do ESPP. Took me 10 years to realize it’s a terrible investment.
How do i decide whats the best Roth IRA company to go with? Im 30 and putting 25% into my 401k but id like to get a Roth going sooner rather than later.
Schwab or Fidelity have incredible customer service, low fee funds, and robust systems. You can go with either and you'd be doing good for yourself.
I personally use Fidelity. Extremely easy to setup and use and I like their app interface. I have Vanguard with my company 401k and I find the navigation to be much more difficult and less user friendly. No idea about Schwab, but it’s also an option. You can’t really go wrong with any of the big names.
@@crash2bandicot I second this comment. I use Schwab, no complaints. Pretty easy to use. The guys have always like Schwab, Fidelity, and Vanguard. Chase is okay, kind of simple, not many options, but if your other accounts are there, it's okay.
I use vanguard because when I started mine out, they had the lowest ER rates. But I tell my coworkers to go with whoever you want. If you're in an index fund, in the same assets, then they're all about the same. Fidelitys s and p 500 has a 0.02 ER, vanguard is 0.03, both have brought in about the same amount annually.
Vanguard, Fidelity, or Schwab - you can’t go wrong with any of them!
Could you explain the HSA in states like New Jersey? Is it worth maxing out every year?
Not sure about state to state, but experts will say that HSA are triple tax advantage. If you can max it out, do so from what I've seen. I don't qualify, but max out my FSA annually.
It doesn’t matter which state you live in-New Jersey or otherwise. HSAs are the best opportunity going for tax advantaged investing
If you’re in a tax bracket that it benefits you to have a Roth 401k, should you skip having a Roth IRA, why or why not? Assume steps 1-4 are done, and you’re confused on steps 5 and 6. Also assume there is no need to estate plan for a younger generation.
I personally contribute to both a Roth 401k and Roth IRA due to my income level and age. Roth 401ks are not mentioned often because they are less commonly offered and in some cases companies don’t provide a match. Make sure you read your 401k plan carefully.
You can definitely substitute a Roth 401k for a Roth IRA, but you gain a lot of flexibility with an IRA in terms of fund options and withdrawal terms. But you can contribute more to a 401k yearly. I’d weigh your fund options in the 401k and see if they are something you’d like to be invested in over what you were going to choose in the IRA.
Should you skip Roth IRA? No. Why: a Roth IRA gives you more investment options than your roth 401k. Also, for most, an employer's match is typically tax deferred, so most likely 100% of your Roth 401k is not Roth.
@@Lucky008aau you’re correct, however my company offers darn near every index fund imaginable. So why get a Roth IRA with vanguard options, when I have vanguard options with the Roth 401k? And sure, I’m putting in 15%, company is putting in 11%. The 11% is not Roth, but the reality is, for me to max out my Roth 401k at 15% contribution without using backdoor, you’re talking about an income of beyond 150k/year. With my brokerage account, high yield savings account for 2nd house, and health savings account, the way I would max my IRA out would be to reduce my Roth IRA, and the options are so good for my Roth 401k, the IRA plans would be the same, Vanguard index, large cap, medium cap, small cap, proper %’s.
@@throwaway3645 so the situation here would be you would be reducing your Roth 401k contribution to transition to a Roth IRA, and due to amazing options through the company, the index funds chosen would likely be the same either way.
It seems like overcomplicating things for a net zero gain. The only thing I can think of for a Roth IRA to be useful in my use case is to retire a year or two earlier and be able to withdraw on the initial Roth IRA tax free.
Its all about the 401k plan fees and investment options. Generally, the fees are higher in a 401k and the investment options are more limited. However, there are some big advantages to the 401k. It is protected against personal liability in addition to bankruptcy, while the IRA only protects against bankruptcy. Also, if you retire (leave) from your 401k company you can withdraw penalty free at 55 while the penalty free age for IRA is 59.5. The key is to decide for you how the pros and cons of each measure out. Another option when not certain is to hedge and contribute some to both.
“Because cars depreciate rapidly” well not used Wranglers and Tacomas
Once again, pretty good content. HOWEVER, most of these can and should be done with dividend paying whole life insurance from a mutual company, properly structured for the banking function. That should be THE FIRST stop for your money. In those policies are your savings, your emergency fund, retirement account, your liquid capital for literally ANYTHING you want or need to use that capital for.
👍🏿advice for your subbies
Who is this advice actually for?
The average income in America is around $70k a year, if not actually lower when excluding millionaires and up.
The jump to 32% from 24% federal tax occurs at 198k in 2025.
Who are these 6 figure earners that either don't have a financial planner or don't understand tax bracketing, max out their retirement options, have an emergency fund, etc?
Desperately need an advice. We have $20,000 credit card debt that is on 0%apr but will be 18% soon. Should I loan money off my TSP for 4%apr payable for 18mos to pay off the debt? We have 3mos emergency savings and $500,000 in investments
Pay half from emergency savings and half from tsp. After that cut the spending as much as you can to replenish the emergency. After emergency savings is back to 3 months prepay the tsp loan
500k how did you do it??
Do you have any non-retirement investments? Also, how/why did you rack up debt? And how old are you?
@@Andocus1213thank you! Didn’t really think of doing both but it does make more sense.
@@Aaa0483I did automatic yearly increase in contributions towards my retirement. Maxing out 403b, roth, and hsa
Did Bo cheat and get an early headstart on Movember? That doesn't look like a
I never could understand that "logic" regarding the "depreciation" of a car. If you plan on keeping your car for many years, then WHO WOULD CARE if your car depreciates? It's not an asset. I buy my cars brand new and now (10-years later) I could give a crap what the 'depreciation value' is of my car. My last (brand new car) was kept for 20-years before i bought the car that I have now (which is now 10-years old). No thank you, I will keep with buying brand new cars. I will try and stretch this one for another 10-years before I buy my LAST brand new car for the remainder of my driving-life :)
Regular viewer because the content is great AND the progress bar doesn't look like a SponsorBlock rainbow - ie the content doesn't all feel like an ad.
I never yell about money, how about yall?
ESPP should be in FOO2, not FOO7. It should be a flip, not a long term investment, unless y’all are advocated for single stock investing now.
Why does employer match only count towards the 25% invested if you make under 100k single and 200k household?
Cause if you're making that much they want you to stash away that much to not let your expenses grow too big.
It's harder to save more when you're making less. Giving low income some leeway.
When you make high incomes, the social safety nets replace much less of your income compared to the typical person, which means that if you wish to maintain that lifestyle, you must carry more weight
Agree with everyone else, but also, high income is also more likely to contribute to traditional. If you do 21% into Roth + 4% match, that might be more spendable money in retirement than 25% traditional + 4% match.
@@emoney1231I’ve totally switch to the Roth with my contributions and employer traditional only. I’ve been doing last 2 years and 5 to go till retirement
Is there an age where you don’t think a Roth is beneficial?? And is backdoor smart?
not an age but an income threshold. Look up your marginal tax rate. if your marginal tax rate is
Backdoor is only the strategy needed if you exceed the income threshold to contribute to do it legally
We do a combo…husband maxes traditional and I max Roth.
CC debt is 20-30%+ compounding. Employer match may be 100% one time, but is 10% at best (maybe negative) past that initial match. So if someone is potentially looking at lonf term CC debt and the hits to credit score that goes along with that perhaps CC debt should be a higher priority.
Employer match is always worth it. You can even pull out the money after, take the penalty hit, pay off credit cards if it worries you that much.
Free employer matching money, when invested, is compounding at 8-10% for many more years than a person should hold credit card debt. Do both. If you can't, lower your lifestyle and/or increase income.
Assuming a 25% CC interest and 8% rate of return, getting dollar for dollar match and investing that will obvioug be more beneficial immediately. It would take over 4 years before you reach the break even point where CC interest has compounded to exceed that initial advantage of matching.
It's about 2.5 years for 50cents on the dollar matching.
@@BenFranklin1776 this is assuming that the type of person who gets cc debt gets out in 4years. I never have carried over cc debt, and always did employer maych too. But I suspect the type of person who would willingly sign up for a 25% loan is not likely to pay it off in 4 years, nor allow employer match to compound to retirement.
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Should I sell my 10 oz gold bar and put the cash in HYS? My net worth is 100 K, 54 yo single woman.
does anyone else feel like all these are out of reach?