On this final video of the year, I want to thank this channel. This year, for the first time, my financial life really got to a point of stability. The advice and more importantly the vibes from these guys played a huge role in that. ❤
I started keeping a net worth statement when I was 26, the year I got married. Updating that spreadsheet is one of my favorite things to do. It's so neat to see the impact of good (and bad!) decisions and the investments grow over time.
Hi Brian, Bo, Megan and the rest of the folks behind the scenes. Just wanted to say how much I appreciate this channel and wish you all continued success in the coming year! Thank you for all you do. I think I"ll read Brian's book again this week. Happy New Year to the entire Money Guy Team!!
The amount of pride generated from seeing how my net worth changes from year to year must be one of the most underrated aspects of completing a net worth statement. It is a reflection of all the hard work, sacrifice, and habits that are propelling me towards the life I want for myself and my family. I'll always remember the day when my net worth went from being negative to crossing into positive terrtory. Keep up the great work Money Guy team!
Happy New Year Money Guy team! Brian, I feel the Swiss army knife love! My Dad worked for a Swiss company here in the States when I was a kid. As a result, I got all the cool Company branded Swiss army knives one could have in the 70s-80s. One for every tackle box, toolbox and junk drawer. Good times!
18:12 I agree. It’s cool to start seeing it hockey stick when you hit that “bollin” point. Everyone wishes they started tracking their networth statements sooner.
I saw a video from Dave Ramsey where the guy left the IRA in his dad's account 5 years after he passed and they issued him a check. Dave didn't mention anything about an inherited account or RMDs. You guys know what your talking about.
I try and try to get my younger Engineers to start doing Net Worth spreadsheets. Some are starting to listen since im wealthy enough to retire next year.
Sadly, I was using MINT to track my finances. There was over a decade of history there...and they closed up shop. It was nice to see, but honestly, it's more just to feel good...though I can still remember how rough it was paying bills and such, so I don't need the spreadsheet reminder.
What can be done about an inherited traditional IRA while I’m still working in regard to 10 years of extra taxable income? Thankfully my parents are still around but someday they won’t be. They won’t do a Roth conversion because of the 5 year lockup. I’m thinking my only 2 strategies would be 1: Max traditional 401k and my Traditional IRA and possibly go back to a HSA to dump my income into pretax buckets. 2: Quit working or work a lower paying job or work part time? Thoughts? Thanks in advance
I'm essentially moving my inherited iras into my traditional IRA and trying to upp my 401k/HSA contributions to make up for loss of ability to put into an ira
As of 2020 in the US you have no choice with an inherited IRA. The Gov says you will take RMDs (or more) that will drain the IRA in 10 years. If it makes to much, the IRS will rap you with a 50% excess accumulation fee. You will be taking your first one the year they pass. Now, you can take that distribution money and max your IRA's if you have a larger window until retirement if you want to, and put the rest in a brokerage acct or wherever else you want to, you will be paying the tax on it. The FIRST thing you do, because it is a convoluted mess, is go get "a guy" because you can get bit hard if you make the wrong move. My dad passed late Dec 2019 and I just missed the "Secure" act BS.I put his into a inherited IRA and I have to take a RMD, so that is a vacation fund since it wasnt an extreme amount.
Do your parents already have a Roth account? If yes, when was it first set up? If they have a Roth account that was set up five years ago the Roth conversion does not have to go through it’s own new five-year window; it reverts back to when the account was first established.
On the 529 topic, isn't the $10,000 limit applied to earnings and not principal because principal is after taxes? I think this is also how penalties on 529 work, you would pay the penalty/taxes on the earnings. Depending on the makeup of the account, this can matter.
Im going to reach step 7 by the end of this year. Maxed out my roth and am going to be maxing out my 401k in november for 2026 and im not elligible for an HSA. Short term savings goal is to save up for a property and long term i want to retire early at 50. Should i start building a bridge account in a taxable brokerage now or keep throwing money into my high yield saving for a house? Oh im about turn 26 this month too with about 2k extra a month in income that i dedicate to savings and investing
I'm trying to help an elderly friend who is inheriting funds from the sale of her mother's home after her passing. She has previously used Medicaid and Medicare so she's concerned about the government clawing back funds, which could result in her, on paper, having a big income next year, dropping her out of Medicaid, only to have them take the money and her not have money for her own care nor qualifying for Medicaid. Any ideas?
What would be the best way to deal with a financial napalm choice. I owe 24k at 7 precent on my suv. What would be the best pay off time frame. I am in a position that if I live off 1k (does not have my rent added in) then I could pay it off in 18 months. Is that a bad choice or should I pay it off over a longer time frame instead. I’m 28.
It depends on a few factors like income and monthly investments. Look at their 20 3 8 guidelines if you havent already. If your regular monthly payment is less than 8% of your gross monthly income, and the total term is less than 3 years, then just stick to the regular payments as scheduled. Also ensure you’re putting more into total investments monthly than into car payments. If payments exceed 8% gross monthly income or you have more than 3 years term, then it counts as high interest debt and you’d be in step 3 of the FOO (aka pay it off asap, after covering your highest deductible in savings and taking the employer match). Another option is if it’s been less than 18 months since you bought it, then just match it up to the 20 3 8 rules. Say you bought it a year ago. Just figure out how much to pay per month in order to pay it off in 2 years, so ultimately you’d only have been paying it for 3 years total.
I am set to inherit 50% of the sale of a rental house (home is in a trust with me splitting 50/50 with my mom). What sort of taxes etc. should I be prepared for? I’m expecting my portion to be around $200k. I’m hoping to use that to buy a condo and move out of my current shared housing situation.
8% is just straight up wrong. Dave is not good at all for investment advice, other then when he says “live in less than you make.” These guys did a video on Ramsay’s comment, and so did Ben Felix, and white board finance. I’m pretty sure every reputable personal finance channel denounced Ramsey’s 8% idea
Look for the video "The Money Guy Show Reacts to Dave Ramsey's 8% withdrawal rate" from a year or so ago. The short answer is 8% rate doesn't take sequence of withdrawal risk into account and it's about a coin toss whether your return will be successful or you'll run out of money.
When is the right time to reimburse yourself from an HSA? Once it gets to a certain dollar amount? I have enough that can be reimbursed to pay off my high interest credit card? Is that a valid reason to do the reimbursement now?
the ideal time is retirement. Do you have absolutely no other options to pay off the CC debt? The leading theory with the HSA is to keep the dollars investing and pay out of pocket in the meantime. I would pull from as many other sources as possible before touching the HSA. Its the most important account to have growing
I disagree with the above reply. If you don’t have a lot of leftover every month to pay off your credit cards, and it’ll take a while (like over 6 months), the money growing in the HSA is not growing more than the 20+% interest rate youre paying on your credit cards. Unless you can pay them off in a few months on your own, I think the reimbursement is a better idea to save interest. Think of it as the FOO. HSA is step 5 while credit card debt is step 3. Investments outside of a 401k match arent beating credit card interest, so it’s best to pull it out and pay off the credit cards.
If the money left invested/growing in the HSA is in lieu of money invested/growing in your brokerage account, it's pretty much a wash...depending on your LTCG vs HSA strategies. We periodically reimburse ourselves for accumulated qualifying expenses to limit the depth of the paper trail, should something happen to me along the way. But in your case, you have credit card debt to get rid of, which you should not have and should never have again. Pay it off.
On this final video of the year, I want to thank this channel. This year, for the first time, my financial life really got to a point of stability. The advice and more importantly the vibes from these guys played a huge role in that. ❤
Congrats noveltyrobot! Completely agree, the advice is what I come for but the vibes is why I stick around
@jakemcduffee3649
come for the advice, stay for the vibes.
I'm so excited reading your comment. 0:14
-Bo
Is Bo excited? Trying to decide if this episode is worth watching
Yep he is
@@wolfman4162Phew! That was a close one😅
😂😂😂
Yes he said he was excited at about 10 seconds in. 😂
Not only excited, he's *so* excited.
25:58 leatherman is what you’re looking for I think.
Leatherman? 25:00 😂 60 seconds of my life I'll never get back 😂
Brian comes from a very very humble beginning, and that gives a different mind set where you know you can accomplish more than we think we can.
I started keeping a net worth statement when I was 26, the year I got married. Updating that spreadsheet is one of my favorite things to do. It's so neat to see the impact of good (and bad!) decisions and the investments grow over time.
Agree on the messy middle! Finally felt like I saw progress from my previous financial discipline in my mid-40's.
Hi Brian, Bo, Megan and the rest of the folks behind the scenes. Just wanted to say how much I appreciate this channel and wish you all continued success in the coming year! Thank you for all you do. I think I"ll read Brian's book again this week. Happy New Year to the entire Money Guy Team!!
The amount of pride generated from seeing how my net worth changes from year to year must be one of the most underrated aspects of completing a net worth statement. It is a reflection of all the hard work, sacrifice, and habits that are propelling me towards the life I want for myself and my family. I'll always remember the day when my net worth went from being negative to crossing into positive terrtory. Keep up the great work Money Guy team!
Thanks for all your help in 2024 and wishing you all a fantastic 2025!
Happy New Year Money Guy team!
Brian, I feel the Swiss army knife love! My Dad worked for a Swiss company here in the States when I was a kid. As a result, I got all the cool Company branded Swiss army knives one could have in the 70s-80s. One for every tackle box, toolbox and junk drawer. Good times!
I appreciate Brian's comments on the loss of the individual and the legacy component.
Happy new year's money guy team! I can't wait to do my first annual net worth statement!!
Thank you for the advise guys. Very much appreciated and love the show!
Love the different messy middle analogy Bo!
I swear, The Hidden Path to Manifesting Financial Power is one of the best books I’ve read. It’s life-changing.
18:12 I agree. It’s cool to start seeing it hockey stick when you hit that “bollin” point. Everyone wishes they started tracking their networth statements sooner.
I saw a video from Dave Ramsey where the guy left the IRA in his dad's account 5 years after he passed and they issued him a check. Dave didn't mention anything about an inherited account or RMDs. You guys know what your talking about.
I love my Leatherman!
I try and try to get my younger Engineers to start doing Net Worth spreadsheets. Some are starting to listen since im wealthy enough to retire next year.
Used the Money Guy net worth calculator yesterday before we rang in the new year! Cool to see the progress!
Leatherman multitool lol
Sadly, I was using MINT to track my finances. There was over a decade of history there...and they closed up shop. It was nice to see, but honestly, it's more just to feel good...though I can still remember how rough it was paying bills and such, so I don't need the spreadsheet reminder.
Leatherman!
The messy middle is a long time. I’m 48 with 3 younger teens. We are definitely there, but a little better off than when I was 38.
What can be done about an inherited traditional IRA while I’m still working in regard to 10 years of extra taxable income? Thankfully my parents are still around but someday they won’t be. They won’t do a Roth conversion because of the 5 year lockup. I’m thinking my only 2 strategies would be 1: Max traditional 401k and my Traditional IRA and possibly go back to a HSA to dump my income into pretax buckets. 2: Quit working or work a lower paying job or work part time? Thoughts? Thanks in advance
RMDs would be in effect.
I'm essentially moving my inherited iras into my traditional IRA and trying to upp my 401k/HSA contributions to make up for loss of ability to put into an ira
As of 2020 in the US you have no choice with an inherited IRA. The Gov says you will take RMDs (or more) that will drain the IRA in 10 years. If it makes to much, the IRS will rap you with a 50% excess accumulation fee. You will be taking your first one the year they pass. Now, you can take that distribution money and max your IRA's if you have a larger window until retirement if you want to, and put the rest in a brokerage acct or wherever else you want to, you will be paying the tax on it. The FIRST thing you do, because it is a convoluted mess, is go get "a guy" because you can get bit hard if you make the wrong move. My dad passed late Dec 2019 and I just missed the "Secure" act BS.I put his into a inherited IRA and I have to take a RMD, so that is a vacation fund since it wasnt an extreme amount.
Do your parents already have a Roth account? If yes, when was it first set up?
If they have a Roth account that was set up five years ago the Roth conversion does not have to go through it’s own new five-year window; it reverts back to when the account was first established.
If your parents are over 59.5 there is no 5 year lockup on Roth conversions anymore.
Leatherman
On the 529 topic, isn't the $10,000 limit applied to earnings and not principal because principal is after taxes? I think this is also how penalties on 529 work, you would pay the penalty/taxes on the earnings. Depending on the makeup of the account, this can matter.
Im going to reach step 7 by the end of this year. Maxed out my roth and am going to be maxing out my 401k in november for 2026 and im not elligible for an HSA. Short term savings goal is to save up for a property and long term i want to retire early at 50. Should i start building a bridge account in a taxable brokerage now or keep throwing money into my high yield saving for a house? Oh im about turn 26 this month too with about 2k extra a month in income that i dedicate to savings and investing
I'm trying to help an elderly friend who is inheriting funds from the sale of her mother's home after her passing. She has previously used Medicaid and Medicare so she's concerned about the government clawing back funds, which could result in her, on paper, having a big income next year, dropping her out of Medicaid, only to have them take the money and her not have money for her own care nor qualifying for Medicaid. Any ideas?
What would be the best way to deal with a financial napalm choice. I owe 24k at 7 precent on my suv. What would be the best pay off time frame. I am in a position that if I live off 1k (does not have my rent added in) then I could pay it off in 18 months. Is that a bad choice or should I pay it off over a longer time frame instead. I’m 28.
It depends on a few factors like income and monthly investments. Look at their 20 3 8 guidelines if you havent already. If your regular monthly payment is less than 8% of your gross monthly income, and the total term is less than 3 years, then just stick to the regular payments as scheduled. Also ensure you’re putting more into total investments monthly than into car payments.
If payments exceed 8% gross monthly income or you have more than 3 years term, then it counts as high interest debt and you’d be in step 3 of the FOO (aka pay it off asap, after covering your highest deductible in savings and taking the employer match). Another option is if it’s been less than 18 months since you bought it, then just match it up to the 20 3 8 rules. Say you bought it a year ago. Just figure out how much to pay per month in order to pay it off in 2 years, so ultimately you’d only have been paying it for 3 years total.
I am set to inherit 50% of the sale of a rental house (home is in a trust with me splitting 50/50 with my mom). What sort of taxes etc. should I be prepared for? I’m expecting my portion to be around $200k. I’m hoping to use that to buy a condo and move out of my current shared housing situation.
None up to 250k profit due to step up in basis. Verify this with a financial advisor.
Leatherman* the word you were looking for
You are correct - thanks for the assist 👍
Can you guys talk on the point of sequence of return risk? Is Dave Ramsey’s advice of 8% a year ok? There are a lot of opinions on this topic lately.
8% is just straight up wrong. Dave is not good at all for investment advice, other then when he says “live in less than you make.”
These guys did a video on Ramsay’s comment, and so did Ben Felix, and white board finance. I’m pretty sure every reputable personal finance channel denounced Ramsey’s 8% idea
Look for the video "The Money Guy Show Reacts to Dave Ramsey's 8% withdrawal rate" from a year or so ago. The short answer is 8% rate doesn't take sequence of withdrawal risk into account and it's about a coin toss whether your return will be successful or you'll run out of money.
When is the right time to reimburse yourself from an HSA? Once it gets to a certain dollar amount? I have enough that can be reimbursed to pay off my high interest credit card? Is that a valid reason to do the reimbursement now?
the ideal time is retirement. Do you have absolutely no other options to pay off the CC debt?
The leading theory with the HSA is to keep the dollars investing and pay out of pocket in the meantime. I would pull from as many other sources as possible before touching the HSA. Its the most important account to have growing
I disagree with the above reply. If you don’t have a lot of leftover every month to pay off your credit cards, and it’ll take a while (like over 6 months), the money growing in the HSA is not growing more than the 20+% interest rate youre paying on your credit cards. Unless you can pay them off in a few months on your own, I think the reimbursement is a better idea to save interest.
Think of it as the FOO. HSA is step 5 while credit card debt is step 3. Investments outside of a 401k match arent beating credit card interest, so it’s best to pull it out and pay off the credit cards.
If the money left invested/growing in the HSA is in lieu of money invested/growing in your brokerage account, it's pretty much a wash...depending on your LTCG vs HSA strategies. We periodically reimburse ourselves for accumulated qualifying expenses to limit the depth of the paper trail, should something happen to me along the way.
But in your case, you have credit card debt to get rid of, which you should not have and should never have again. Pay it off.
“Leather man”
Lineman pliers?
LEATHERMAN!!!!
❤❤❤
Ad one minute in! Ugh TH-cam, you’re driving people nuts!
30 yrs old is later in life? Hum!😢
Your multi-tool is called a "Leatherman"!
Does Brian really think they coined the term "Messy Middle," like for real?
They're the only one's I have ever heard use it.
Bo shaved!!!! woo hoo!
Morn'n
529’s!!!
I was excited about recording my end of year net worth numbers until the FED decided to tank the market based on 2025 predictions.
"Looks like a crime scene."
Where is Ribie?
Maternity leave.
Nice thx
Oh no, the drug music from Google.
Does he mean a "wire stripper"?