I would enjoy learning about the correlation between wealth, income, hours of work etc. and health. I am 41, make a solid income, and have over a million in the bank (by saving and investing early)....but that doesn't put me in the 1%. However, I work about 20-30 hours a week, exercise daily, enjoy time with my kids (single mom) and have a home cooked meal on the table every evening. I have peers who make twice as much as me, have the fanciest of all things (including nannies, housekeepers and gardeners), but I would never want their lives for a second. They are over-worked, suffer from various health issues, and are constantly worried about "keeping up." If you watch this video and despair that you are far from the 1%, pause and reflect how wonderful your life is and what you can attain in the years ahead. Just like the aspirational lives we see in the media, this video only shows you numbers. The context and the "messiness" of it all is unknown.
I’m 28 and a high earner, but I spent 7 years in school to get there. Thus delaying the start of building wealth. My net worth is nowhere near that number, though my income is right there. I’d like to see a show about the top 5% or 10%, because that’s more realistic/achievable for viewers. Young 1%’ers either inherited substantial amounts or quite frankly got lucky in some sort of business venture.
Today's inflation is a result of corporate avarice, not only problems with the supply chain. We know that the money obtained by the higher prices isn't being transmitted along the supply chain since businesses are reporting record profits. More pricing result in increased revenue for businesses, which stays with them and goes into their pockets. We can rule out supply-related inflation because of this. If your stocks are extremely weak, now is an excellent opportunity to take a battered 401k and convert it to a Roth. Then, your Roth will be tax-free, and you will just have to pay taxes on the substantially reduced current values.
@@stevenbergwin5074 Well, the best professionals have access to exclusive data and information that is not made available to the general public. Knowing the tactics to employ at this time is one thing; having the knowledge necessary to put them into successful practice is quite another.
No it is not. The prices are definitely driven by supply of the customers due to the oversupply of US dollars during the pandemic era. People received loads of stimulus and spend them. This drives up economical demands. You have to understand that the companies are also competing with each other, initiating price wars to attract customer. No one can artificially drive the prices up unless they are monopoly.
Generalized inflation is caused by only one thing: increase in the money supply. We had 20 years of near zero interest rates capped by massive money printing and handouts during the pandemic (stimulus checks, expanded unemployment benefits, etc.). When you dump free money into the economy, inflation is what follows. Economics 101, supply and demand.
Fascinating, but it shows how aspirational this is right from the start. When I got my first full time job 10 years ago, it was $44,000/yr with an Engineering Degree, which was a tick below median income in my area. Net Worth was negative because of student loan debt. 10 years I've definitely turned it around and am full speed ahead but when I saw that the top 1% had an average net worth of half a million in their 20's I was like damn, definitely a pipe dream. Doesn't matter what hacks and habits you practice, unless you land a six figure job right out of college, you'll never sniff that kind of financial success.
Yep, cracking in to the 1% doesn't have anything to do with work eithic or discipline, it's entirely about having wealth in your family or connections. People who are in the 1% in their 20s are by and large trust fund kids who have had their education paid for, their house paid for, and their job secured by their lineage. Of course there is the young entrepreneur here and there who hit it big at a young age, but those are not the norm among these people. The facts are that most millionaires didn't inherit their wealth, but 1% ers on average inherited millions. We live in a feudal society. Always have and always will.
Yeah he brought up Graham Stephen, but Graham himself admits his timing was right when banks let him borrow so much for real estate at the age of 19 or so. This same strategy backfired on Dave Ramsey when his bank called all his debts because he was a high risk young borrower. He was bankrupted. The other age brackets are different, but that kind of success in your 20s is really a crapshoot, unless you won the family lottery.
@@ecole146 - eh, close. Getting into Big Tech has these sorts of salaries at the get-go; assuming you do the "live in a one-room apartment" route, you can max out your 401k+ matching + mega-backdoor every year. That gets you 60k/year, which in turn gets you close to a half-million by the end of your 20's. (Plus your stock options+RSU's, of course.) That being said, I broadly agree that most 1 percenters inherited; however, the specific thing that The Money Guys are talking about is technically doable...at the top end of some industries.
@@ecole146 I can personally tell you that isn’t true. I went to an engineering school. I know a lot of people who fit the 1% bill. Most had poor immigrant parents. Their kids now all work in big tech. Zero family connections, 100% hard work and discipline
Blessed to be in the top 1% of the 20's decade without an inheritance but with great teaching. For my situation, I was fortunate to have stumbled across financial channels like this, and many more, even before joining the workforce in my teens and made investing/saving a priority day one of employment. After continuously learning and being committed to the idea of forced scarcity, deferred gratification and intentionality, I chose to attend a state college in my area that excelled in my desired field of study, but not from my list of dream schools. Through scholarships, and what my parents were graciously able to contribute along with working (intentionally) throughout all of my college years in my field of study, I was able to leave college with a fairly significant positive net worth. Since then, I've followed the content on this channel and am very excited for what the future holds. For me, the work is only just beginning but thank you Brian and Bo for inspiring generations on our financial and personal life journeys with your content!
would like a show like this on the top 10% rather than top 1%, more realistic/aspirational for most, imagine a large % of the top 1% are entrepreneurs or c-suite executives, the risk and stress of these occupations are not worth it in my estimation, prioritize work/life balance, crossed into 7 figures when I was 47, 70% of folks hate/dislike their jobs - save 25% and retire early - then follow your passion
Please consider doing a comparison of real estate rental income vs. REITs vs. diversified ETF holdings. What if you had $150K to invest ; how would you go about analysing these options. I'm in step 7 of the FOO. Thanks
The divorce part hits too close to home. I'm just coming out of that and trying to get things set for my future and my kids'future. Thanks for this video, guys!
Spot on advice about finding the right partner. It took me 23 years to save 1 million with my first wife. It took me only 3.5 years with my second wife. That's the difference between a saver/investor vs. a spender.
@@vivii1219 Compounding return actually didn't have as much impact as you'd think because I was only left with $300k after the divorce. Just six years later and it's now grown to over $2M thanks to healthy dual incomes and a saver/investor focus.
I wonder how many in the top 1% lament never achieving the top 0.1% due to that insatiable desire for more… Sadly, many in the top 1% sacrificed way too much to achieve the wealth they have and will look back wishing they’d slowed down, found contentment with being in the top 5-10%, and spent more time enjoying life and spending abundant time with friends and family. Often, the hardest part is simply getting the goal posts to stop moving.
To be an outlier in the top (or bottom) 1% of anything, you need to be a mutant to an extent. Billionaires don't make money to spend it, they make it simply because they love making it. It's never enough for them. Tiger Woods, Michael Jordan, Tom Brady always want one more win, one more chance to be the best. There's one thing these people will never have though, enough. But, it's because they love the game, not the rewards for playing.
It you have $4mm net worth in your 30s compounding has nothing to do with it. You’ve started and sold a business, have an exceptionally high paying job like a top tier investment banker or have inherited the money.
33:37 "...how valuable compounding dollars can be." Here are the ratios of net worth to income by decade: 20s: 3.6x more net worth than income (it would take 3.6 years of saving 100% of your current income in cash to get this net worth) 30s: 9.5x 40s: 19x 50s: 32.5x (investing time/money into your business/career, investments, and real estate.) Your dollars keep working harder and harder than you can with "your hands, back, or brains."
Blessed to be in that percent, I save and invest around 70 percent of my income in the financial market(high yield etfs, stocks, coins, gold etc) pretty much how I made my first million although with an FA. I have a high paying engineering job, and I live upstate NYC. my expenses are low. I have zero debt, low rent and car paid off. So i can just save. feel lucky at this point I'm actually grateful for Susan Kay Mack handling my portfolio, she's the only person i know that's richer than me hahah!!!
Impressive!! Also, I did read about Susan Kay Mack on the web, I was able to find her webpage and leave a mail. I'm willing to make consultations to improve my portfolio
If you have 160k+ income with half a million in _net worth_ in your 20s, I'd think you had some assets gifted to you upon adulthood. That income could just be investment income from inherited/gifted assets, too. Making that much and having that net worth in your 30s, though, I can believe that was mostly self-made.
This is 1% and is a 10 year span. A 29yo is way different from a 21 year old. That said, top hires for finance and programming will make 160k in major metros pretty early on. Pair that with some good stock grants and some luck and it didn't take daddy money to get there. Again, average among 1% not the min amount to be in the 1%
@@elliotmyers9071 hey, if that's you, good for you for landing a job that pays you enough to save that kind of money by 30 but until someone goes out there and do a deep dive into large sample of those 20 year olds, no way am I believing that this is something that can be held up as reasonable expectations for someone in that age group making that kind of money.
@@elliotmyers9071 There is pretty clearly a mismatch between the net worth and income parts. If you are 29, and you started saving when you were 22, you could _maybe_ get to both the net worth and income numbers at the same time if you were putting in 50% of your gross income into investments. The likely truth is that the people with that income have a lower net worth, and the people with that net worth didn't have to work for the money (or have a much higher income - very possible to hit >$300k in your 20s in some fields).
@@DanDannyDanielleBob I know, I'm a software engineer. And yes, you're forgetting that the companies who pay 160k base salary are in HCOL areas with high rents, most are hybrid instead of full wfh now, and if you didn't graduate with student loans or still living at home, "daddy's money" was definitely involved. Not that there's anything wrong with that.
Instead of the 1% median Net worth, do you have the threshold Net worth??? I want to know what is the minimum number i should hit in order to be in that 1%. The median gives us the 50 percentile, but i just want the 1 percentile please!!!!
As someone in the top 1% of income earners for people in their 20’s, I can tell you that you that you need to do more than just live a bit below your means for a couple years to save multiple times your annual income. No hate, but there are a lot of people who were given money in the top 1% of the net worth spectrum
It's a classic example of fundamental attribution error. While most people think that to get rich you have to take risks and work hard, in reality to be wealthy, 90% of the success is just luck (country where you were born in? [e.g. USA or Netherlands is far better than North Korea or Rwanda] were you born in city or a village? how rich your parents were? wasn't any of your parents alcohol or narcotic addict? what talents are you born with? are you physically and mentally healthy? whom you met, especially when you was adolescent and young adult? in many situations even things like physical attractiveness, race, gender, religion, or sexual oriantation may matter) Only the remaining 10% of becoming wealthy is risk taking and hard work!
@@stephencolor2010 I've read it, it's been on my family's bookshelf since I was a kid. It doesn't contradict anything they said up top. Even if you don't make six figures, investment success can still be contributed to your own ability, your environment, your home life as a child, whether you were born in the US or a poor region in Nepal as the lowest caste, etc. Hard work is what lets you make the most of the hand you're dealt, but if you didn't get the right cards, there's not a lot you can do. I'm from a low-income family and am very successful btw, so I speak from experience. I worked hard, but boy was I lucky in circumstances that made that hard work worth it.
@@vulpixelful This also seems to speak that you've made a series of good decisions over time. While circumstances do matter, a long series of good decisions over ones life time goes a long way in making the best of the hand your dealt.
@@gregorylee1395 Of course. But I could pick the better choices through (non-monetary) family support and the existence of the right resources, both locally and online. I also am fortunate to still be able-bodied. The circumstances from which the right choice can happen are not there for everyone.
@@stephencolor2010 Yeah no. If you want to live comfortably, I think you can still do that with hard work and smart investing. But even if you start a successful business and crack into the top 1% in income, you're not cracking the top 1% in wealth unless you either inherit significant money from a young age.
I’ve got a question for you guys. I’ve heard the arguments regarding leasing vs buying but in general the argument against leasing assumes the leasee even wants a car at the end of the term. In my case I’m looking to “rotate” cars at my house where one of my parents intends on selling their car to a family member and a car I bought with the intention of keeping it in the family will be passed on to my parent. That leaves me without a car which I will need but only for another 18-24 months before I move to nyc permanently and at that point no longer need it. I don’t think it makes sense for me to buy a car, even a beater, knowing there will be no one to take it from me before I inevitably drop everything and make the move 2 years from now. Even if I did a private sale after buying a relatively newer car I’d still be losing quite a bit to depreciation not to mention the effort it takes to clear paperwork and finalize it. Could I be part of a lesser known target group of the lease arrangement? Anything you guys think I’m failing to consider in my options here?
i love these videos! in the future it would be beneficial to know the average age of the top 1% in each decade. for instance, it's be likely that the average age of the top 1% of people in their 20's to be 28 or 29, especially in the first few decades. if you're in the early half of the decade, comparing yourself to someone potentially 8 or 9 years older than you is a more aspirational comparison.
It's an average. That number is obviously being dragged down by people in their lower 20s, still in the 1% but not making as much as the upper 20s, and being skewed by the wild income from the upper 20s at the peak of the 1%. If the age were to only focus on the upper 20s then the number would obviously be a lot bigger.
I’m not quite in the top 1% of people in their 30’s but my income does put me in probably the top 3% (I’m early 30’s so probably top 1% for my exact age). My net worth isn’t anywhere close yet though. It took a lot of mistakes and floundering in my 20’s to get to where I am now. For the people with $500k net worth in their 20’s my hat is off to you, that’s just nuts. On the outside you would have no idea. I live in a super modest house, drive mundane cars and wear clothes from Target. I do enjoy some very expensive vacations but that’s our only vice. Should be worth $12-15m by the time I’m 65 though because of my saving and investing rate.
I’m confused by the numbers provided…. Are they the threshold to enter the top 1% or are they median of people in the top 1% (and therefore the threshold for the top 0.5%)?
@@Jack-fw4mw that’s kinda what I thought they were saying…. I’m not sure that was the intention. I’d be curious what the threshold for the 1% is.. Since finances the day to be exponential, I bet it’s a lot lower than the 0.5% thresholds that were shared
I was similarly confused. It seems they said median repeatedly, and the only thing i can imagine is that it's the median of the top 1%, but that doesn't make much sense given that "the 1%" is viewed as a sort of "club" you get into. You don't enter it by becoming the median top 1% person.
They kept saying “median”, but the graphic said “average”. These are not the same, and I know they know this. But it added to confusion. If average, then it’s unnecessarily high, as it would be skewed by the top 0.1%. Either way, I think a better stat to share would be what income or net worth would place you in the top 1%. The numbers would be lower and therefore would appear more attainable.
Such a tough balance, contrast to your other show on Degrees that pay. How much abuse has this statement experienced "Do what you love and you never work a day in your life". I know so many this didn't work out for and had to go back to school!
Cool…. I’m 45 years old…. And I should be in the top 1% for net worth by the time I’m at the end of my 49th year…… thx guys! I watch every video of yours….. no inheritance, started at zero
My wife and I started everything young. If joint income counts we are in the top 1%. She is 27 and will be finishing her DNP in mental health and I am 28 with my MBA in commercial lending. We also live in one of the cheapest states (this isn’t NY or Cali). We bought our house at 24 with a 5%, because we were sick of paying rent, and few years later we refinanced it to a 15 when covid hit and rates dropped. We got married young, our first child is almost 1, and when she finishes school we will start chipping away at debt (minimal). We both got scholarships and worked during school to take as little student loans as possible. Hope to start maxing out Roth 401ks and HSA around 30.
I’m seeing this super late but I am making about $150,000 this year. I’m 25 and I still feel like it’s a never ending losing battle. I’m also married and have 3 kids so I guess I’m also in the messy middle.
Maybe inherited some good sense from parents, but it's surprisingly achievable with no tangible inheritance. Easiest way is to be debt-free and land a great job out of college (or high school, but the high-paying jobs are slimmer in that scenario.) Be really good at saving. Getting married to someone similar is a big help too--you can both pull in the same direction.
Nah, I know a guy who developed a software application in high school and made about that same amount of money. It was a pretty niche product, but a few hundred thousand bucks isn’t a bad start to life and wasn’t inherited.
They didn't necessarily inherit it. If they got an amazing job right out of college and invested $3750/month at 8% returns for 9 years they would be 29 with exactly $577,021.79 net worth. Super easy, barely an inconvenience
Like that person in their 20s making $160k. Like your brain isn't even finished developing until your around 23, no way you live in this country around this age and aren't treating yourself to celebrate winning capitalism. At that age and at that income that 20 something year old lives in a big city with an active night life. Like try delaying your gratification in a city like NYC which is basically one huge shopping mall. Like am sure there is one person that fits this perfectly but while i can absolutely see someone in their 20s making that kind of money in tech or investment banking, someone in their 20s making that kind of money isn't saving up over half a million in assets without getting some sort of leg up from family. Again, am sure someone fits this perfectly but the exception should not be held as an example of anything.
Hey, I'm a Software Developer in the greater DC area (working remotely, but still living here). I'm 26 and only just started my career a little over a year ago. I'm making about $120k and investing at a rate over $60k, mostly post tax. I got an associate's degree at a community college and worked fast food and retail. My parents helped me pay for the rest of college (B.S.), and I lived at home. Had I not been able to do that, my total student debt would have been less than one year's savings at my current rate. Had I not taken my sweet time with going to school and graduating and began a career a few years earlier, I would have likely reached half a million in assets by the end of my 20s. I have colleagues who have about my experience who have taken job offers for pay in the $160k range. I "treat myself" by going out to eat regularly instead of making things for cheaper at home, and by buying myself nice computer hardware, since I'm interested in that as well. I spent around $1500 last year on about 10 days of vacation travel (beach and outdoor climbing).
its actually a confidence boost to hear this, I was making 140k last year, I'm currently secured for 163k this year after my pay raise, but I'm shooting for 185k with a new side hustle I am going to pick up as soon as the market bottoms out (it involves the auto market). My living expenses in total for a month can range from $3,200-5,600 (I have two kids), so I'm still able to save money, although I'm suspecting inflation is going to hit hard again soon so I wonder how much things will go up. I'm turning 22 in august; I must note I live in California so I'm not really 1% lol
I am a big fan of your content and your focus on bringing real data to inform conclusions. However, I must say that your commentary on 20 somethings in this particular episode is uncharacteristically lacking in real data. There is a great deal of conjecture as to what "might have" or "could have" lead to this level of earnings and net worth. Unlike the links to actual experience with your clients in their 30s, and especially 40's and above, I feel like the 20-somethings hint at a potentially difference. Time will tell. Again - love the content, intent and focus. This seems a segment with an opportunity to dig in further and understand in more detail.
I really like you guys and watch a lot of your content, but I don’t think some of the statements you make here are very accurate. Telling people to “follow their passions and money will follow” might have been true for you and some other folks, but this kind of messaging is what got a lot of my generation saddled with 5-6 figures of student loan debt and low wage jobs. I think it’s time we need to stop telling people this because it does not set them up for success and just leads to disappointment and resentment. I don’t care if you are the best dishwasher in the world and it’s your passion, you won’t be pulling in six figures doing it. Again, I like you guys and luckily I am not one of the millennials who has found a balance that kept me out of a low wage job, but I think you ought to me more realistic/pragmatic when talking about this stuff.
If you have student loan debt in the tens of thousands, your just an idiot with no financial awareness. Also following your passions is a good idea in businesses and side hustles, you can make money from anything nowadays.
Mnay I bet are in the tech industry, our compensation is third pay and two thirds stcok. Always lived off the pay and never touched the stock that just builds and builds. When we started a company we made sure to give all our employees a share holding, no one vere leaves and works hard as they have a stake in the company and get to share the profits. Key is choose a career where you get to own some of the company and mostly that is tech.
Cribs was funny when the got to Michael Jordan. They looked into the fridge and asked where the alcohol was. His response was a classic: Its OJ because I am an athlete. I have to eat healthy. That was the responsible thing to say for a business person like Jordan.
Tax avoidance is definitely a practice of rich people. However it’s pretty much guaranteed to be something they do once they’re rich not what made them rich. Totally agree there are portions of the tax code that are unfair and exploited by the rich but don’t think you can’t become wealthy because you pay taxes regularly and they don’t.
These videos are funny. The median net worth of people 65-74 is 266k. That’s a way more valuable metric than what the top 1% have. Less than 10% of people retire with 1 million saved. And that’s coming off the longest bull market in history combined with the highest housing prices we’ve ever seen.
@@brb1010 I did google it, but I didn't see anything that corroborates your point. Let's say that you have 5 numbers 1,2,3,4,100. The median is 3 or the middle the average is 22. The reason median can be more useful than the average is because when talking about finances is because outliers can throw off the average.
@@j.asmrgaming1228 Yes - Median = 3, Mean = 22. Both as technical measures of “Average”. But you are right, median is advantageous as a measure of average when the distribution is skewed with extremely low and/or extreme high data points.
@@brb1010 Average has been broadly used both used as a word meaning "any measure of central tendency" and for "arithmetic mean". In technical literature, most people will understand that average means "unspecified measure of central tendency", but for any public-facing explanation I would argue it is always wise to remove the ambiguity by simply saying "median" if you mean median. They did do so in the talk, but someone could miss that. That being said, I find it odd that for a "top 1%" they focused on the median 1% values rather than the threshold. Given the distribution of 1%, members the median is not the entry point.
Lol you know those numbers are botched because some of those people bought memcoins and the whole nft scam right 😂. They got lucky. It wasn't any skill or procedure you guys are talking about.
@themoneyguyshow My wife I combined make around 250k in Charlotte. We are both 26 and have 200k+ in 401k,IRA,HSA, and brokerage, we are on track to pay off our house in 15 years. Own our car in full, what other items can we do to work towards the 1% in our 40s? We hope to see our salaries increase 20-30 percent in the next year or two.
Start making your money work harder than you work. An example is starting a house rental business where you own the assets and generate a positive cash flow without physically exerting effort. Pay for a realtor, lawyers, property managers or handymen to create a ecosystem that serves you.
Do not have kids....it is financially draining....not just raising cost, but the daily sacrifices of being a parent indirectly affect your career potential....
2:15 Twenties
8:00 Thirties
22:18 Forties
33:13 Fifties
I would enjoy learning about the correlation between wealth, income, hours of work etc. and health. I am 41, make a solid income, and have over a million in the bank (by saving and investing early)....but that doesn't put me in the 1%. However, I work about 20-30 hours a week, exercise daily, enjoy time with my kids (single mom) and have a home cooked meal on the table every evening. I have peers who make twice as much as me, have the fanciest of all things (including nannies, housekeepers and gardeners), but I would never want their lives for a second. They are over-worked, suffer from various health issues, and are constantly worried about "keeping up." If you watch this video and despair that you are far from the 1%, pause and reflect how wonderful your life is and what you can attain in the years ahead. Just like the aspirational lives we see in the media, this video only shows you numbers. The context and the "messiness" of it all is unknown.
it would put you in 1% in your 50s, so early congratulations lol
I’m 28 and a high earner, but I spent 7 years in school to get there. Thus delaying the start of building wealth. My net worth is nowhere near that number, though my income is right there. I’d like to see a show about the top 5% or 10%, because that’s more realistic/achievable for viewers. Young 1%’ers either inherited substantial amounts or quite frankly got lucky in some sort of business venture.
I'm in a similar situation. I think a good rule of thumb is that if you spend six or more years in college, you should make at least $500k per year.
Thank you Bo for being so excited about every show :)
Today's inflation is a result of corporate avarice, not only problems with the supply chain. We know that the money obtained by the higher prices isn't being transmitted along the supply chain since businesses are reporting record profits. More pricing result in increased revenue for businesses, which stays with them and goes into their pockets. We can rule out supply-related inflation because of this. If your stocks are extremely weak, now is an excellent opportunity to take a battered 401k and convert it to a Roth. Then, your Roth will be tax-free, and you will just have to pay taxes on the substantially reduced current values.
@@stevenbergwin5074 Well, the best professionals have access to exclusive data and information that is not made available to the general public. Knowing the tactics to employ at this time is one thing; having the knowledge necessary to put them into successful practice is quite another.
No it is not. The prices are definitely driven by supply of the customers due to the oversupply of US dollars during the pandemic era. People received loads of stimulus and spend them. This drives up economical demands. You have to understand that the companies are also competing with each other, initiating price wars to attract customer. No one can artificially drive the prices up unless they are monopoly.
Generalized inflation is caused by only one thing: increase in the money supply. We had 20 years of near zero interest rates capped by massive money printing and handouts during the pandemic (stimulus checks, expanded unemployment benefits, etc.). When you dump free money into the economy, inflation is what follows. Economics 101, supply and demand.
Fascinating, but it shows how aspirational this is right from the start. When I got my first full time job 10 years ago, it was $44,000/yr with an Engineering Degree, which was a tick below median income in my area. Net Worth was negative because of student loan debt. 10 years I've definitely turned it around and am full speed ahead but when I saw that the top 1% had an average net worth of half a million in their 20's I was like damn, definitely a pipe dream. Doesn't matter what hacks and habits you practice, unless you land a six figure job right out of college, you'll never sniff that kind of financial success.
Yep, cracking in to the 1% doesn't have anything to do with work eithic or discipline, it's entirely about having wealth in your family or connections. People who are in the 1% in their 20s are by and large trust fund kids who have had their education paid for, their house paid for, and their job secured by their lineage. Of course there is the young entrepreneur here and there who hit it big at a young age, but those are not the norm among these people.
The facts are that most millionaires didn't inherit their wealth, but 1% ers on average inherited millions. We live in a feudal society. Always have and always will.
Yeah he brought up Graham Stephen, but Graham himself admits his timing was right when banks let him borrow so much for real estate at the age of 19 or so. This same strategy backfired on Dave Ramsey when his bank called all his debts because he was a high risk young borrower. He was bankrupted.
The other age brackets are different, but that kind of success in your 20s is really a crapshoot, unless you won the family lottery.
Maybe that was your bad decision making... Why wouldn't you just do international studies an only pay 0-900€ a year in tuition fees?
@@ecole146 - eh, close. Getting into Big Tech has these sorts of salaries at the get-go; assuming you do the "live in a one-room apartment" route, you can max out your 401k+ matching + mega-backdoor every year. That gets you 60k/year, which in turn gets you close to a half-million by the end of your 20's. (Plus your stock options+RSU's, of course.)
That being said, I broadly agree that most 1 percenters inherited; however, the specific thing that The Money Guys are talking about is technically doable...at the top end of some industries.
@@ecole146 I can personally tell you that isn’t true. I went to an engineering school. I know a lot of people who fit the 1% bill. Most had poor immigrant parents. Their kids now all work in big tech. Zero family connections, 100% hard work and discipline
Blessed to be in the top 1% of the 20's decade without an inheritance but with great teaching. For my situation, I was fortunate to have stumbled across financial channels like this, and many more, even before joining the workforce in my teens and made investing/saving a priority day one of employment. After continuously learning and being committed to the idea of forced scarcity, deferred gratification and intentionality, I chose to attend a state college in my area that excelled in my desired field of study, but not from my list of dream schools. Through scholarships, and what my parents were graciously able to contribute along with working (intentionally) throughout all of my college years in my field of study, I was able to leave college with a fairly significant positive net worth. Since then, I've followed the content on this channel and am very excited for what the future holds. For me, the work is only just beginning but thank you Brian and Bo for inspiring generations on our financial and personal life journeys with your content!
would like a show like this on the top 10% rather than top 1%, more realistic/aspirational for most, imagine a large % of the top 1% are entrepreneurs or c-suite executives, the risk and stress of these occupations are not worth it in my estimation, prioritize work/life balance, crossed into 7 figures when I was 47, 70% of folks hate/dislike their jobs - save 25% and retire early - then follow your passion
Every Money Guy show: Brian I am so excited about this show.........
Looking forward to “Habits of the Top 10%” and “Habits of the Top 5%” please and thank you
Looking forward to habits of the bottom 10%.
I wish they also broke it down for 5,10% as well.
Oh, I'm sure they will at some point
I would love to see top 5% or 10% with that top 1% removed.
Love this! I’m 25 making around $150k as a nursing home administrator here in Ohio. Gotta start getting that net worth up though!
That's a great income! What's your savings rate?
Please consider doing a comparison of real estate rental income vs. REITs vs. diversified ETF holdings. What if you had $150K to invest ; how would you go about analysing these options. I'm in step 7 of the FOO. Thanks
That sounds like a "bring the relationship to the next level" kind of problem.
The divorce part hits too close to home. I'm just coming out of that and trying to get things set for my future and my kids'future. Thanks for this video, guys!
I will never be in the top 1%. But as a teacher to be in the top 18% (82nd percentile) is not too shabby, I think.
For sure!! Teachers are the #3 profession for millionaires in US, so all of you rock at building long term wealth.
Spot on advice about finding the right partner. It took me 23 years to save 1 million with my first wife. It took me only 3.5 years with my second wife.
That's the difference between a saver/investor vs. a spender.
If you need a third wife hit me up bro.
@@jackjackson7170 LOL... Imagine how much we could save
You forget about compound, and your earning power must have increased! But I still agree, when you have a spender who is always into the newest……
@@vivii1219 Compounding return actually didn't have as much impact as you'd think because I was only left with $300k after the divorce. Just six years later and it's now grown to over $2M thanks to healthy dual incomes and a saver/investor focus.
I wonder how many in the top 1% lament never achieving the top 0.1% due to that insatiable desire for more…
Sadly, many in the top 1% sacrificed way too much to achieve the wealth they have and will look back wishing they’d slowed down, found contentment with being in the top 5-10%, and spent more time enjoying life and spending abundant time with friends and family.
Often, the hardest part is simply getting the goal posts to stop moving.
To be an outlier in the top (or bottom) 1% of anything, you need to be a mutant to an extent. Billionaires don't make money to spend it, they make it simply because they love making it. It's never enough for them. Tiger Woods, Michael Jordan, Tom Brady always want one more win, one more chance to be the best. There's one thing these people will never have though, enough. But, it's because they love the game, not the rewards for playing.
It you have $4mm net worth in your 30s compounding has nothing to do with it. You’ve started and sold a business, have an exceptionally high paying job like a top tier investment banker or have inherited the money.
If you give a mouse a cookie. Not cheese unless you from Wisconsin😂😅🤣
Time to update the sub count on the shelves. 269k now 274k. Congrats gentlemen, always appreciate your content.
WOW so proud of you guys … I remember when you guys wanted to reach 100k subscribers 👏👏👏👏👏
33:37 "...how valuable compounding dollars can be." Here are the ratios of net worth to income by decade:
20s: 3.6x more net worth than income (it would take 3.6 years of saving 100% of your current income in cash to get this net worth)
30s: 9.5x
40s: 19x
50s: 32.5x (investing time/money into your business/career, investments, and real estate.) Your dollars keep working harder and harder than you can with "your hands, back, or brains."
Yall should interview ppl. This would be a cool video if you interviewed someone from each age range
First off. I’m your generation Bo and I loved the lifestyle of the rich and famous
Blessed to be in that percent, I save and invest around 70 percent of my income in the financial market(high yield etfs, stocks, coins, gold etc) pretty much how I made my first million although with an FA. I have a high paying engineering job, and I live upstate NYC. my expenses are low. I have zero debt, low rent and car paid off. So i can just save. feel lucky at this point I'm actually grateful for Susan Kay Mack handling my portfolio, she's the only person i know that's richer than me hahah!!!
Truly Stocks, ETFs and Mutual funds are the best investment decision you can make both short term and long term for steady money flow. Kudos!!
Impressive!! Also, I did read about Susan Kay Mack on the web, I was able to find her webpage and leave a mail. I'm willing to make consultations to improve my portfolio
Wow, great work. you surely made a good bit of money
thank you i just found her website, i really need more streams of income !!!
@@donaldlocher2537 SCAM
If you have 160k+ income with half a million in _net worth_ in your 20s, I'd think you had some assets gifted to you upon adulthood. That income could just be investment income from inherited/gifted assets, too. Making that much and having that net worth in your 30s, though, I can believe that was mostly self-made.
I personally think it’s possible in your 20s to achieve those goals through hard work. I just know it to be true.
This is 1% and is a 10 year span. A 29yo is way different from a 21 year old. That said, top hires for finance and programming will make 160k in major metros pretty early on. Pair that with some good stock grants and some luck and it didn't take daddy money to get there. Again, average among 1% not the min amount to be in the 1%
@@elliotmyers9071 hey, if that's you, good for you for landing a job that pays you enough to save that kind of money by 30 but until someone goes out there and do a deep dive into large sample of those 20 year olds, no way am I believing that this is something that can be held up as reasonable expectations for someone in that age group making that kind of money.
@@elliotmyers9071 There is pretty clearly a mismatch between the net worth and income parts. If you are 29, and you started saving when you were 22, you could _maybe_ get to both the net worth and income numbers at the same time if you were putting in 50% of your gross income into investments. The likely truth is that the people with that income have a lower net worth, and the people with that net worth didn't have to work for the money (or have a much higher income - very possible to hit >$300k in your 20s in some fields).
@@DanDannyDanielleBob I know, I'm a software engineer. And yes, you're forgetting that the companies who pay 160k base salary are in HCOL areas with high rents, most are hybrid instead of full wfh now, and if you didn't graduate with student loans or still living at home, "daddy's money" was definitely involved. Not that there's anything wrong with that.
I love the complete long shows you guys put.
is the data adjusted for cost of living areas? i assume all 1% values are in HCOL areas thaqt also pay more.
Instead of the 1% median Net worth, do you have the threshold Net worth???
I want to know what is the minimum number i should hit in order to be in that 1%.
The median gives us the 50 percentile, but i just want the 1 percentile please!!!!
As someone in the top 1% of income earners for people in their 20’s, I can tell you that you that you need to do more than just live a bit below your means for a couple years to save multiple times your annual income. No hate, but there are a lot of people who were given money in the top 1% of the net worth spectrum
I would love to have a high school age homeschooled curriculum from you guys!
Why would they make a video on that? Make it yourself, it's not difficult.
It's a classic example of fundamental attribution error. While most people think that to get rich you have to take risks and work hard, in reality to be wealthy, 90% of the success is just luck (country where you were born in? [e.g. USA or Netherlands is far better than North Korea or Rwanda] were you born in city or a village? how rich your parents were? wasn't any of your parents alcohol or narcotic addict? what talents are you born with? are you physically and mentally healthy? whom you met, especially when you was adolescent and young adult? in many situations even things like physical attractiveness, race, gender, religion, or sexual oriantation may matter)
Only the remaining 10% of becoming wealthy is risk taking and hard work!
A good read that might give you a different perspective is The Millionaire Nextdoor.
@@stephencolor2010 I've read it, it's been on my family's bookshelf since I was a kid. It doesn't contradict anything they said up top. Even if you don't make six figures, investment success can still be contributed to your own ability, your environment, your home life as a child, whether you were born in the US or a poor region in Nepal as the lowest caste, etc. Hard work is what lets you make the most of the hand you're dealt, but if you didn't get the right cards, there's not a lot you can do.
I'm from a low-income family and am very successful btw, so I speak from experience. I worked hard, but boy was I lucky in circumstances that made that hard work worth it.
@@vulpixelful This also seems to speak that you've made a series of good decisions over time. While circumstances do matter, a long series of good decisions over ones life time goes a long way in making the best of the hand your dealt.
@@gregorylee1395 Of course. But I could pick the better choices through (non-monetary) family support and the existence of the right resources, both locally and online. I also am fortunate to still be able-bodied. The circumstances from which the right choice can happen are not there for everyone.
@@stephencolor2010 Yeah no. If you want to live comfortably, I think you can still do that with hard work and smart investing. But even if you start a successful business and crack into the top 1% in income, you're not cracking the top 1% in wealth unless you either inherit significant money from a young age.
I’ve got a question for you guys. I’ve heard the arguments regarding leasing vs buying but in general the argument against leasing assumes the leasee even wants a car at the end of the term. In my case I’m looking to “rotate” cars at my house where one of my parents intends on selling their car to a family member and a car I bought with the intention of keeping it in the family will be passed on to my parent. That leaves me without a car which I will need but only for another 18-24 months before I move to nyc permanently and at that point no longer need it. I don’t think it makes sense for me to buy a car, even a beater, knowing there will be no one to take it from me before I inevitably drop everything and make the move 2 years from now. Even if I did a private sale after buying a relatively newer car I’d still be losing quite a bit to depreciation not to mention the effort it takes to clear paperwork and finalize it. Could I be part of a lesser known target group of the lease arrangement? Anything you guys think I’m failing to consider in my options here?
i love these videos! in the future it would be beneficial to know the average age of the top 1% in each decade. for instance, it's be likely that the average age of the top 1% of people in their 20's to be 28 or 29, especially in the first few decades. if you're in the early half of the decade, comparing yourself to someone potentially 8 or 9 years older than you is a more aspirational comparison.
It's an average. That number is obviously being dragged down by people in their lower 20s, still in the 1% but not making as much as the upper 20s, and being skewed by the wild income from the upper 20s at the peak of the 1%. If the age were to only focus on the upper 20s then the number would obviously be a lot bigger.
@@myfinancialclimb3121 Yeah, that's why I'm asking.
Thanks!
I’m not quite in the top 1% of people in their 30’s but my income does put me in probably the top 3% (I’m early 30’s so probably top 1% for my exact age). My net worth isn’t anywhere close yet though. It took a lot of mistakes and floundering in my 20’s to get to where I am now. For the people with $500k net worth in their 20’s my hat is off to you, that’s just nuts.
On the outside you would have no idea. I live in a super modest house, drive mundane cars and wear clothes from Target. I do enjoy some very expensive vacations but that’s our only vice. Should be worth $12-15m by the time I’m 65 though because of my saving and investing rate.
I’m confused by the numbers provided…. Are they the threshold to enter the top 1% or are they median of people in the top 1% (and therefore the threshold for the top 0.5%)?
Median of the top 1% - so 99.5 percentile thresholds.
@@Jack-fw4mw that’s kinda what I thought they were saying…. I’m not sure that was the intention. I’d be curious what the threshold for the 1% is.. Since finances the day to be exponential, I bet it’s a lot lower than the 0.5% thresholds that were shared
I was similarly confused. It seems they said median repeatedly, and the only thing i can imagine is that it's the median of the top 1%, but that doesn't make much sense given that "the 1%" is viewed as a sort of "club" you get into. You don't enter it by becoming the median top 1% person.
They kept saying “median”, but the graphic said “average”. These are not the same, and I know they know this. But it added to confusion. If average, then it’s unnecessarily high, as it would be skewed by the top 0.1%. Either way, I think a better stat to share would be what income or net worth would place you in the top 1%. The numbers would be lower and therefore would appear more attainable.
Such a tough balance, contrast to your other show on Degrees that pay. How much abuse has this statement experienced "Do what you love and you never work a day in your life". I know so many this didn't work out for and had to go back to school!
Audience agrees. Can we have this show and stats for the top 10%?
When you are talking about top 1 percent in this video is that household income or individual?
Are these numbers per household or individual?
Mike Tyson even said to ‘do what you love, and the money will follow’.
Where can I get the number display behind Bo?
I would love to see top 5% or 10% in each decade.
Cool…. I’m 45 years old…. And I should be in the top 1% for net worth by the time I’m at the end of my 49th year…… thx guys! I watch every video of yours….. no inheritance, started at zero
Are these numbers for an individual or household?
My guess is individual based on the numbers
My wife and I started everything young. If joint income counts we are in the top 1%. She is 27 and will be finishing her DNP in mental health and I am 28 with my MBA in commercial lending. We also live in one of the cheapest states (this isn’t NY or Cali). We bought our house at 24 with a 5%, because we were sick of paying rent, and few years later we refinanced it to a 15 when covid hit and rates dropped. We got married young, our first child is almost 1, and when she finishes school we will start chipping away at debt (minimal). We both got scholarships and worked during school to take as little student loans as possible. Hope to start maxing out Roth 401ks and HSA around 30.
Are these income stats individual or household income?
What is Brian holding in the snapshot? Will we find out on this episode?
I’m seeing this super late but I am making about $150,000 this year. I’m 25 and I still feel like it’s a never ending losing battle. I’m also married and have 3 kids so I guess I’m also in the messy middle.
Also my new worth at the moment is $50k.
I am in my 50's. I know not a single person who has more than $80K in their 401k nor savings over $40,000.
I'd be shocked if more than 1% of that wealth/income bracket started with less than $1 million from their parents.
Is this per household or individual?
I love you guys
If your net worth in your 20s is $577K, you inherited it. 9 out of 10 times. Probably 99 out of 100.
Maybe inherited some good sense from parents, but it's surprisingly achievable with no tangible inheritance. Easiest way is to be debt-free and land a great job out of college (or high school, but the high-paying jobs are slimmer in that scenario.) Be really good at saving. Getting married to someone similar is a big help too--you can both pull in the same direction.
At 28 or 29, untrue. An example…maxed 401K from college grad to 29, there’s 200K. Bought and paid for a house and it increases in value. Easily 577K.
Nah, I know a guy who developed a software application in high school and made about that same amount of money. It was a pretty niche product, but a few hundred thousand bucks isn’t a bad start to life and wasn’t inherited.
Well, the facts don’t support your narrative, but if that’s what you believe, I’m sure you’ll find it to be the case for you.
They didn't necessarily inherit it. If they got an amazing job right out of college and invested $3750/month at 8% returns for 9 years they would be 29 with exactly $577,021.79 net worth. Super easy, barely an inconvenience
Did these people at the 1% start at zero or did they have an inherited trust, UTMA, etc to start of with? Because that can skew the numbers.
Like that person in their 20s making $160k. Like your brain isn't even finished developing until your around 23, no way you live in this country around this age and aren't treating yourself to celebrate winning capitalism. At that age and at that income that 20 something year old lives in a big city with an active night life. Like try delaying your gratification in a city like NYC which is basically one huge shopping mall. Like am sure there is one person that fits this perfectly but while i can absolutely see someone in their 20s making that kind of money in tech or investment banking, someone in their 20s making that kind of money isn't saving up over half a million in assets without getting some sort of leg up from family. Again, am sure someone fits this perfectly but the exception should not be held as an example of anything.
Hey, I'm a Software Developer in the greater DC area (working remotely, but still living here). I'm 26 and only just started my career a little over a year ago. I'm making about $120k and investing at a rate over $60k, mostly post tax. I got an associate's degree at a community college and worked fast food and retail. My parents helped me pay for the rest of college (B.S.), and I lived at home. Had I not been able to do that, my total student debt would have been less than one year's savings at my current rate. Had I not taken my sweet time with going to school and graduating and began a career a few years earlier, I would have likely reached half a million in assets by the end of my 20s. I have colleagues who have about my experience who have taken job offers for pay in the $160k range.
I "treat myself" by going out to eat regularly instead of making things for cheaper at home, and by buying myself nice computer hardware, since I'm interested in that as well. I spent around $1500 last year on about 10 days of vacation travel (beach and outdoor climbing).
I think I might be in the top 80%.
wild! i got a late start on my career but i'm hopin' i can catch up by 60!
Here’s a question for you gentlemen: does the income you are referring include investment & retirement income?
This is top 1% in the U.S., right?
I actually think I would be more interesting in seeing what is the "lowest" networth/income in the top 1%, I mean, it is already the top 1%.
its actually a confidence boost to hear this, I was making 140k last year, I'm currently secured for 163k this year after my pay raise, but I'm shooting for 185k with a new side hustle I am going to pick up as soon as the market bottoms out (it involves the auto market). My living expenses in total for a month can range from $3,200-5,600 (I have two kids), so I'm still able to save money, although I'm suspecting inflation is going to hit hard again soon so I wonder how much things will go up. I'm turning 22 in august; I must note I live in California so I'm not really 1% lol
I feel like I'm doing something wrong.
Liquidity is a depreciating asset, can you give some examples about how much liquidity you're suggesting to keep?
I am a big fan of your content and your focus on bringing real data to inform conclusions. However, I must say that your commentary on 20 somethings in this particular episode is uncharacteristically lacking in real data. There is a great deal of conjecture as to what "might have" or "could have" lead to this level of earnings and net worth. Unlike the links to actual experience with your clients in their 30s, and especially 40's and above, I feel like the 20-somethings hint at a potentially difference. Time will tell. Again - love the content, intent and focus. This seems a segment with an opportunity to dig in further and understand in more detail.
you talk like those people on TV selling stuff.😂
I really like you guys and watch a lot of your content, but I don’t think some of the statements you make here are very accurate. Telling people to “follow their passions and money will follow” might have been true for you and some other folks, but this kind of messaging is what got a lot of my generation saddled with 5-6 figures of student loan debt and low wage jobs.
I think it’s time we need to stop telling people this because it does not set them up for success and just leads to disappointment and resentment. I don’t care if you are the best dishwasher in the world and it’s your passion, you won’t be pulling in six figures doing it.
Again, I like you guys and luckily I am not one of the millennials who has found a balance that kept me out of a low wage job, but I think you ought to me more realistic/pragmatic when talking about this stuff.
If you have student loan debt in the tens of thousands, your just an idiot with no financial awareness. Also following your passions is a good idea in businesses and side hustles, you can make money from anything nowadays.
I would have liked to heard more about what careers these people chose.
Tech, law, medicine, finance.
Mnay I bet are in the tech industry, our compensation is third pay and two thirds stcok. Always lived off the pay and never touched the stock that just builds and builds. When we started a company we made sure to give all our employees a share holding, no one vere leaves and works hard as they have a stake in the company and get to share the profits. Key is choose a career where you get to own some of the company and mostly that is tech.
I am entering retirement.
I do surveys. 👍😉😀
Cribs was funny when the got to Michael Jordan. They looked into the fridge and asked where the alcohol was. His response was a classic: Its OJ because I am an athlete. I have to eat healthy. That was the responsible thing to say for a business person like Jordan.
Redmans episode is my all Time favorite
14:10 support
Well done 👍
This episode hurt to watch lol.
My realistic end goal is where the top 1% are in their 30s.
Stop comparing yourself to who others are today, and start comparing yourself to who you were yesterday.
Well said Jack Jackson. I feel much comfortable after reading your comment! Thanks
Habit 1: Tax Evasion
Avoidance =/= Evasion.
Utilizing the tax code that Congress has placed into law is neither illegal nor unethical.
*legal tax evasion
Tax avoidance is definitely a practice of rich people. However it’s pretty much guaranteed to be something they do once they’re rich not what made them rich. Totally agree there are portions of the tax code that are unfair and exploited by the rich but don’t think you can’t become wealthy because you pay taxes regularly and they don’t.
Top 1% pays for >40% of all federal tax. 40% of Americans don't even pay taxes at all. Who's doing the tax evasion?
@@sungo5784 Great point!
These videos are funny. The median net worth of people 65-74 is 266k. That’s a way more valuable metric than what the top 1% have. Less than 10% of people retire with 1 million saved. And that’s coming off the longest bull market in history combined with the highest housing prices we’ve ever seen.
Im 1% in income but no where near in net worth
Financial hack of top 1% = make an obscene amount of money
Average =/= Median, let the graphics person know.
But median is “average.” You may want to google ‘measures of central tendency’
@@brb1010 I did google it, but I didn't see anything that corroborates your point. Let's say that you have 5 numbers 1,2,3,4,100. The median is 3 or the middle the average is 22. The reason median can be more useful than the average is because when talking about finances is because outliers can throw off the average.
@@j.asmrgaming1228 Yes - Median = 3, Mean = 22. Both as technical measures of “Average”. But you are right, median is advantageous as a measure of average when the distribution is skewed with extremely low and/or extreme high data points.
@@brb1010 Average has been broadly used both used as a word meaning "any measure of central tendency" and for "arithmetic mean". In technical literature, most people will understand that average means "unspecified measure of central tendency", but for any public-facing explanation I would argue it is always wise to remove the ambiguity by simply saying "median" if you mean median. They did do so in the talk, but someone could miss that.
That being said, I find it odd that for a "top 1%" they focused on the median 1% values rather than the threshold. Given the distribution of 1%, members the median is not the entry point.
This is depressing to watch
While I generally value most of your financial insights, but this topic is borderline useless
Lol you know those numbers are botched because some of those people bought memcoins and the whole nft scam right 😂. They got lucky. It wasn't any skill or procedure you guys are talking about.
: )
@themoneyguyshow My wife I combined make around 250k in Charlotte. We are both 26 and have 200k+ in 401k,IRA,HSA, and brokerage, we are on track to pay off our house in 15 years. Own our car in full, what other items can we do to work towards the 1% in our 40s? We hope to see our salaries increase 20-30 percent in the next year or two.
I need your job 😆
Management Consulting comes with its downfalls.
Start making your money work harder than you work. An example is starting a house rental business where you own the assets and generate a positive cash flow without physically exerting effort. Pay for a realtor, lawyers, property managers or handymen to create a ecosystem that serves you.
Do not have kids....it is financially draining....not just raising cost, but the daily sacrifices of being a parent indirectly affect your career potential....
Also in CLT, also in consulting. You two are def doing better than me lol
Going to the tax evasion card has always been the tactic of the poor “middle class” who weren’t smart enough to make it in the real world!