Is $1,000,000 Enough to Win Financially? (Here's the Truth)
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love your show... I hit a million a few months ago at age 51 in my 401. I'm a mechanic with a high school education. Your show keeps me excited.
congratulations! keep going.
Wow yay
Sincere congratulations to you and yours. I am 51 as well. Although I have a little more I had to get two masters degree which I don’t even use anymore…, smh.
You did great
Congrats my young man.
As someone who grew up in poverty channels like these are invaluable. The last thing I want is to continue repeating the cycle.
The answer to building wealth and getting out of poverty is the stock market, not government handouts and welfare programs. The government gives a pittance compared to what the stock market can give. This is why we have to protect free markets and eliminate government meddling with them.
@@hastycontemplation - so are you saying buy stocks that pay dividends?
@@robertgraybeard3750 yes, through dividends and stock growth
I am in the same group with you!
The lack of basic financial education starting in the elementary school years and continuing on in sophistication has been extremely detrimental to many families and their progeny. I aim to fix this problem with my nieces and nephews and it seems to be working with some of them.
I hit 100,000 in my retirement accounts this week in large part to you guys. This video was perfect timing to motivate me to not let off the gas!
100k is awesome. Now it will snowball fast
How old are you? If you don’t mind if course
Congratulations. Stay on track.
@@Imhere12345 funny, I always kind of wonder if I'm "behind", "on track", "ahead of the game " too.
Great job. Keep it up!
$1mil is plenty for me and the wife. 2 Pensions, 2 social security checks, and 4.5% from $1mil annually, paid for house, living in South Carolina.
Well done. Same boat here. Often wonder if we saved to much?
@@rayanderson3164 making generational wealth and being generous along the way bro.
@@KP-hi1om Not if Biden and the Liberal Marxists have anything to say about it...."You didn't build that."
If you have a pension, $1 mil goes a lot further than for those of us who don't.
@@travis1240 if I had a 401k since I started working it would be worth way more than a pension. Plus I could pass down the remaining balance.
5 million at 65 you could be dead by then you can never retire to early. I retired 7 years ago at age 49 on a lot less than 5 million life is good.
Can I ask, how many kids and what that number was approximately? 2.1mil and 1 kid or 2 kids?
Speaking as a statistician, THANK YOU for reporting median!! :) :) :)
It always boils down to what a person's expenses are. Nothing more.
@The Money guy show enjoy your vids. Great info.
Agreed. Rd/Pd..Liabilities and increasing that lowers the income bucket. Save for Assets and generate income and increase assets. Move the cycle to the debit column not the credit column!
I think it's obvious that when people talk about having $1mil, they mean liquid assets, not your home. And as was also mentioned in this video, if you want to sell your $1.3 mil home and go find a house somewhere else in the country for $250K, then fine, you've turned your house into liquid assets.
Now, assuming you have $1mil, while you're not living like an NBA player, you have enough money that you no longer have to work, which is the ultimate goal for most people. 4% of $1 mil is $40K a year. There are many places all around the world where you can live like a king on $40K a year, including many in the US. $1 mil is still an admirable goal to reach.
We could all live on $40,000/year. Pay off a $100,000 house and budget. Don't buy stuff. Stuff becomes worthless. Invest!
The thing about a million dollars is it grows fast in a well built portfolio. It seems like just a year ago I reached $1 million, and now already it's become $1.36 million.
That is awesome... I am happy for you 🙂
Yeah, I worked 40 years to reach my first million. The second mil took 2 years.
@@locutusdborg126 that is not bad at all... did you invest in individual stocks or index funds?
@@ModestMillennial I started with funds and when I was 34 I bought my first stock, a dividend stock. This was about 1985.
I am hoping to retire with 3 to 4 million.
Here's my math: I currently live comfortably on $42k of consumption per year - and that's with a mortgage. With a paid-off mortgage, that drops to under $30k/year. With 1M in retirement assets, an even more conservative 3.5% perpetual withdrawal rate still gives me a slight lifestyle upgrade after taxes - and that's before I even take social security into account. And if I'm careful about where I withdraw from, I expect to be able to stay within the 12% tax bracket in retirement.
That's awesome. I think part of your spending may be the region of the country you are in? It would be difficult to get by on that income in certain regions of the country
Keep in mind as you age there can be some large unexpected medical expenses. It's good to have a substantial buffer over what you think you'll need.
@@KayKay0314 This is also the predicament I'm in. Pulling the trigger when to retire is a lot harder than I thought even if my analysis tells me I could retire now.
@@KayKay0314 have you looked at your decumulation strategy and what locations (parts of the $1M or $2M ....w/ ROTH conversions vs higher ROI vs dividend generation) you fund your lifestyle.
That is impressive! Does that include health insurance?
don't wanna be philosophical, but...
It depends on what "Enough" means to you
It depends on what "Winning" means to you
It also depends on how old you are.
It depends on where you live, also. Contentment/happiness in the heartland is different than on the coasts!
@@peterhoffman8525 Disagree
Bogle wrote a nice little book about that question , aptly titled “Enough.”
@@Mitzi73 Sorry, perhaps I should have said "the *cost* of contentment/happiness may be lower..." since property is so much less expensive away from the coasts.
I did not feel comfortable till I had a million dollars in my retirement account. I did not include anything but my retirement account. I also had my kids college accounts, paid off house, no debt, and emergency funds. I also have a pension and social security. Yes I fell blessed and comfortable
One million saved gives a little more security and peace of mind.
Congratulations - good for you and I wish your best health for many years to come.
How?
Sounds great! I'm in the same bucket and feel a little more at ease for my age on choices to make. But just don't want to waste the savings and carefully choosing how i spend my $$. Pay off house in 7 yrs, then decide what's next.
Y’all should make a second channel for clips and keep this one for full episodes. I keep getting confused, but keep watching regardless!
Money Guy Team rocks! I started my Roth two years ago because of this show. I am addicted to investing and it's thanks to the positive energy and content this Team delivers every week! Thank you!
Absolutely love your show. It has increased my focus on my retirement goals. Thank you
The reality is this, VERY FEW will reach this number, those that do have won, compared to the rest of the country.
As you and channels like you give me the education I missed, I'm relaying the information to family and friends so they can have a more secure future. You're doing good things, keep it up.
This show has gotten me thinking seriously about retirement and what I need to do. It has made me feel in control. Thanks!
Glad we found you guys…I’m a retired Marine (37 years) and have worked in the private sector since then. My wife and I plan to retire in 2 years @ 67 & 60.
We will keep listening and learning 👍🏽
Semper Fi 🇺🇸
There is a big difference between someone with a cheaper house and a lot of liquid money, and someone who has an expensive house and little liquid wealth; both having an equal net worth.
Thank you for your content. Also, the "David needs a hug" cracked me up.
Love you guys. You guys have really changed my perspective. You give me so much confidence in saving and investing. Thank you!!
That's me. The wife and I passed the millionaire net worth threshold this year, but it certainly doesn't feel like we are millionaires. Living in Maryland is really expensive.
Congratulations
Great job! My wife and I are in a similar situation. I do think it affords us a more certain future than the average person. It is enough to get us through any individual dilemma. It also can provide 40k a year in withdrawals if retiring. You are correct, a million isn't enough to live like you are wealthy.
I live in Maryland also within the 495 beltway. I will say this....it seems like everyone is making at least six figures around here and have lots of money.
It took me a while to figure out that's not the case. Yes salaries arw higher than the rest of the nation but we also have an awful lot of people working blue collar jobs who just may not be within your sphere of friends or acquaintances. There's also those making well above 6 figures financing $700,000-1 million homes and $50,000 cars.
Even in the DC metro area having a million dollar networth a couple of decades before normal retirement age puts you in fairly elite company.
Great job, how old are you Brandon?
@@joepepito5661 37
Love the enthusiasm guys! Keep it up! My wife and I are public school teachers and have always been savers. Vacation rentals now do very well for us too. You guys do a great service for folks. Thank you!!
Thank you for sharing. You guys are an amazing team bringing life changing information. Much respect.
I loved this episode. Thank you to you both and the whole team!!
Great content. Exactly what’s been on my mind.
Loved this episode. Thank you, Gentlemen.
You guys ROCK. Thank you so much for the valuable information!
One of your very best videos; covers so many great points.
We appreciate you saying that! It's always great to see a TH-cam legend stopping by our channel!
Absolutely love this, y'all. Thank you!!!
After seeing that 12% of households are worth over $1 million, it seems very commonplace. This perspective is good, because now I'll try even harder.
That is exactly the attitude you need to win with money. A simple plan and a little effort and you will get there. More effort like you seem to want to put in will get you there faster.
Fun show. Interesting twist and new way to look at things.
Fantastic show guys...one of your best! Thank you!
Your best show ever. Great info to share with my kids in their 20s . And making me think about how to get to level 5 on the pyramid,.
I don’t think David’s comment was a “troll” comment. I think it was a legitimate challenge that was well-addressed by the video. In fact, that comment was valuable in that it generated good content for the channel.
I, too, have wondered when general financial advice moves off the “1 mil” round number as a younger guy who’s not yet at that number.
I completely agree. I live in Hawaii where the real estate is INSANE. A lot of people sacrifice everything, including retirement savings, to be able to afford a house...if they can even afford it at all.
I wouldn't hold your breath over it changing anytime soon. "A million dollars" is a nice round numbers and being a "millionaire" is too convenient a concept for them to get updated as they should.
It's similar to a making $100k a year. It's a nice round number so it's still used as a major benchmark but it doesn't buy nearly what it used too.
When planning your retirement 20, 30, 40 years out you have to correct for inflation yourself. A nice rule of thumb is that buying power is cut in half every 30 years. So if you're 35 and planning to retire at 65, you will need $2 then to buy what you can get now for $1. I just automatically cut everything in half when I think about retirement planning so I get an approximation of the figure in today's dollars.
@@dohczeppelin37 that's a point most people dont look at.. 1 million in a 401k seems great.. then pay taxes..then Inflation Eats up alot more. ...start young and pay yourself first. Learn all you can about investing manage your money yourself.
Excellent, honest perspective. Great video.
Great information! Thanks!
Thank You "5 Levels of Wealth".. Each person's plan customized to family situation.
A million is a great goal for 2 reasons: 1 it's a big round number that is achievable for most people. 2nd, while it may not be someone's ultimate goal (depending on standard of living and cost of living in the region you live) 1 million pretty much guarantees a household will be able to meet their base needs.
I'm sorry but a million is not achievable for most people.
@@ariefraiser140 yes over a 40 year time horizon it absolutely is. The average household income is nearly 70,000. Saving just 10% into a 401k growing at an average of 10% annually with a 3% annual raise would be over 5 million dollars. That does not include any other assets. I can personally attest to the simplicity. Took 20 years to reach the 1 million mark without ever earning a high salary. Most years, wife and I were at or below the median income. We also happen to live in the Northeast. Now if someone saved nothing and is starting at 50? No that will be much more difficult.
I like your point Don, bc even if 1 mil isn't quite enough to retire off of, it can bear a lot of the financial burden a family may have. Even if it doesn't allow for full retirement, may allow someone to take an easier or more enjoyable job
@@minhhoangnguyen536 In the beginning of this show it says 12% of the US have $1M. Also not everyone needs $1M to retire. If you go by Fidelity's rule of thumb you can retire with 10x your last wage before retirement if you add Social Security. If the median household makes $68K then $680k is enough.
@@ariefraiser140 If you start in your 20's it is. Even with low wage jobs.... Get 7,000 in a Roth by the time you are 25 any way you can and then toss in $75 a month for 40 years and viola... at 9% a year you have over 1/2 a million to retire on.... start there and you will do fine...and likely like what you see and choose to invest more to get yourself to a million...teaching my kids to do this... it is working
YES, and Thank You. Boys the great Info that you share is a Golden Keep It coming.>>> Rogge
Most Americans don’t even have $1000 in an emergency fund. And have zero or little in some form of savings for their future. However, their debt ratio is well over 40%. College debt, home mortgage, and personal credit card or other personal debt (car, boat, big toys) debt is excessive and out of control.
Income is your wealth builder. Debt is the enemy of wealth.
I enjoyed the discussions here. I'm age 65 and the hardest thing for me is deciding how much is enough. We don't know how long we will live. With the medical technology of today and what will be developed over the next 20 years we should probably plan on living to 95. Younger generations should plan on living to 120. It will take a lot of money to finance living this long. I'm fortunate to have built up the resources to be able to fund a long life but if I die at 70 then I left too much money on the table - my children may not think so haha.
Not sure about the quality of life if one lives to 120, even with our technology. Also, some experts suggest the Millennials are actually worse off than their predecessors, if you consider their high rate of behavioral and physical health conditions compared to previous generations. Diabetes seems to affect folks younger and younger. And consider all of the autoimmune diseases that have cropped up recently.
Either they did not exist before or more people seem to be getting them. So, while one can hope to live longer, medical expenses might need to be considered, and they grow bigger and bigger all the time. Also, long-term care expenses are something to consider. Who can you get to drive you around when you can no longer drive? Do you need to live in an assisted living place? Lots of stuff to think on.
I was speaking to someone a few weeks ago who believed you need at least 8 million to retire. If we use a 4%SWR on that amount, it comes out to an annual income of $320,000 a year. I learned a few things from that short conversation. Some people don’t know how much they need for retirement and just shoot for a random high number. Some people aren’t aware of how much income they require to fulfill their basic needs. If I were to live the same lifestyle which I’m living right now as a 23 year-old in retirement, I would be alright with even less than 1million. If I have children and/or parents to take care of then it’s not enough. I’m sure I will want more than 1 million when I retire, but that’s a dang good place to start.
I was speaking to someone a few weeks ago who believed you need at least 8 million to retire.
This is a one size fits all goal that fits no one. Your family income is $100k/year. Your family income is $500k/year. Two different situations with two different goals.
Remember to account for inflation in your planning. At a 3% average inflation rate, in 40 years things will cost a bit over 3x what they do now. So $320k annual income in 40 years would be equivalent to about $100k today. Not that unreasonable if you're planning to travel a lot in retirement.
@@elmateo77 That’s a great point I overlooked. Would you consider paying off debt early in life a hedge against having to pay for future inflated high priced items like a mortgage, car, boat, etc.? I like the idea of a balance between being debt-free in the near future while taking advantage of time in regard to compound interest.
@@adrianrocheguzman1450 No you're looking about it wrong. Debt is a hedge against inflation. Being in debt frees up your capital to let it be invested and grow further. With inflation, future dollars are easier to acquire. The interest from debt is just the price you pay for protecting against that inflation. If it's less than 5% interest you should pay it off as slowly as possible and use the money to maximize your investments instead.
I love your show. You deliver great insights, and also remind me to keep disciplined in my savings for retirement. Since listening to you show I have also started working on the retirement for my god children. The army of dollars at work!
65 is too freaking old. I’m not anywhere nearly as energetic at 37 now and can’t imagine 65.
Thank you, money guy show, for sharing. I am retired At this point in my life I can save about 40% of money coming to me. After I retired. Do I need to? No, however, I have lot of family members that need financial help. I always dream to help them out and now I can. Thank you, for excellent videos.
As a San Francisco Bay Area subscriber, I get David’s point. There is definitely an eye roll every time you mention the high cost of living/booming Real Estate market in Franklin, Tennessee. Pockets of wealth are found in many areas but the cost of living in Tennessee is the sixth lowest in the country. The cities and coastal areas should not be discounted in your videos since that is where the concentration of wealth lies. Maybe you can reveal the demographics of your listeners and create some content on the wealth accumulation found in the areas where they (we) live.
That is where the majority of the population lives also
"Smack some haters around" love it!
Liked subbed and notified!
Maybe? Depends on your situation.
Where do you live? Do you have a primary residence paid off. How old you are. What other source of income do you have?
The frequency of visiting the casino.
"Critical Mass" is a great way to put it. I recently really can start to feel that point. I have most of my net worth in a business and real estate. It is really hard to understand what that means when there is about $1.8 million sitting in those assets, but when I look at my liquid investments and to see how fast they are growing as they passed $500,000. It took me more than two decades to get here, and I am not really swimming in money yet. But when I am totally debt free within this calendar year, I look forward to watching just how fast my liquid investments grow when my income, rent, and profits simply pour into reinforcing my army of dollar bills.
The key phrase to the slide on what a million can do for you is “in today’s dollars”. When talking about what a 20 year old (& any age decades from retirement) we should adjust the million dollar target for inflation because it makes such a significant impact. Agreed if I retired today with a million it could work, but I’ve still got 20 years. Better double the target to get to this place we’re talking about today.
Yes,as long as one is prudent with the money.
Great video
Something that needs to be talked more about is inflation rate. While $1 can turn into $7 in 25 years, $7 in 25 years doesn't buy you the same thing as $7 today.
Wealth to me is not measured at 65 years of age finish line. At 55 with 1-1.5M in liquid assets (not including rental real estate and primary home) is plenty to do whatever I want, to give generously, and to travel. We've slowed significantly in our savings over the last few years, realizing that we won't run out of money, and we personally don't want to leave too much behind to the kids.
I understand what David is sayin. He is just saying folks need to save more and invest more. Try not to look at 1 million as the destination but a stepping stone. To me, You guys and David are saying the same thing. Although You guys are more eloquent with your delivery.
Thanks for talking about this. Too many of us are not financially planning soon enough.
This is a terrific episode.
No one even needs a million. The other option is to slash expenses. With 900k @ 4% withdrawal rate that’s $3000/mo spending. Very easy to live on that in most parts of the country.
With a caveat that house is paid off
It depends where you live. In some cities rent on a 1 bedroom apartment or mortgage on a small house will eat most or all of that. Even if you own a house property taxes will take a big chunk of it in places where a 1000 square ft place goes for $500k+. Of course you could say that if someone is trying to retire on that amount they should just move to a cheaper area.
Don't think I've seen it but risk analysis on your health vs finances would be a good future video session. Someone with family history of heart issues and people dying pre-70 may want to reconsider their planning strategy vs someone with family members living 95+ years of age...
Agree with others on this one: great job here, fellas! At 34:17, I thought you were speaking to me directly.
It's very interesting. I have a seven figure net worth, but I feel like I'm just living responsibly. Others in my family think I'm mega wealthy, but I don't. I know that day to day I'm just making good sound, safe choices. My savings rate was 27% last year and I'm hoping to increase that to anywhere from 30-35% this year.
@The Money Guy Show totally legit. Definitely the real money guys here. No way it’s an imposter. Very intelligent
Not to pry.. but if I may ask.. you said "savings"... Are you actually letting your "savings" gather dust in a "typical" savings account or "investing" ??
I, too, have a 7 figure net worth and I feel comfortable, nothing more. A friend of mine has a 8.5 million portfolio and he also feels "comfortable" but not rich at all. I think the word 'rich' is a very relative word, having different meanings for various people depending upon whom you ask.
I agree, I just hit 750k in 401k, 300k in IRA, good job and I am paycheck to paycheck. Is frustrating.
@@pianoman551000 some people, no matter how much money they have, will never buy $500 shoes and 100k cars. It's the mentality more than the income
Good show, guys.
Thanks for this. I think it would be interesting for you all to do a show on what we think the world will look like in 30 years. I.e. what a house will cost, boat, stock market levels - based upon past growth.
Taking this back to where we are now, and where you need to be
Great idea!!
Its tough enough to forecast one year much less 30 years. This is why a 30 year retirement plan includes milestones every 10 years. Example:
30 years old: $100k
40 years old: $250k
50 years old: $500k
60 years ild: $1 million
You can make adjustments at each milestone.
Agree. Inflation is inevitable...and hard to predict. Starting young is hey and I'm thankful I started in my late 20s. (Thigh early 20s and a higher @% would've been better). Staring a Roth IRA for my kid the minute they have earned income.
The average inflation over the last 100 years has been 3.1% per year. So assuming we follow that same average into the future, things will cost about 2.5x what they do now.
First off, Daniel. Congratulations! The fact that you think 1m in net worth is so easy shows that you are a very wealthy man. I just hope you gain some gratitude along with those dollars
I do tend to agree with David and I live in the Bay Area. The houses where I live are at least 1.5 mil. I'm surrounded by millionaires yet most of them doesn't really live a rich life. They are just regular folks who maybe are living comfortably but still technically living pay check to paycheck because if they lose their jobs, it's still a big deal with the house payments. Even though I've tracked my household net worth which includes a property that's lived on, in my mind I only really count our retirement accounts, savings and brokerage accounts. I am proud with what we've saved considering my poor beginnings but it's definitely not enough to make me feel rich. A million is not much especially since we can't touch it until 59 years old but I do sleep well knowing our money is growing and waiting for us when we need it.
Thanks fellas ! I hit on some free guac at Chipotle cause of you guys!
In some countries like Mexico, the primary residence is not considered part of your net worth, only rental properties or summer homes are counted. Along with stocks and liquid assets of course
It depends on your monthly nut, I’d guess. My response to anybody that says $1,000,00 ain’t what it used to be is that you still need to get to $1,000,000 before you get to $2,000,000 or to whatever number you deem to be enough.
Edit: ok, so the same point as these guys make I guess.
$2 million is the new $1 million.
Likely accurate...
Hi...great show. You are doing great work..we are so fortunate to live in the you tube era. Can you point me to your website where you have that doc that tells you how much of a lump sum you need for your child in order for them to be a millionaire? I couldn't find it. Thank you!
I started my daughters 401k at 16. She has a full ride to college and a stipend each month. I am holding onto her 529 for graduate school. She currently works and saves all of her income. I am hoping that she will be able to reach millionaire status early in life.
Thank you for the perspective. Now I want to retire today at 51 vs waiting until 55 and the rule of 55 for my 401k. Choices.
Still going. Waiting on 55.
Great show! I would answer David's point....million in net worth.....non income generating assets vs. million in yield generating assets.
At the end of the day, a house is just a roof over your head. It doesn't matter what it's worth because it doesn't generate any yield. Sure, you could live in a duplex but I'm mainly speaking about the norm....single family homes.
I have a networth of 4.1M in yield generating assets but by home is only worth $318k That's how you need to look at it.
You have to calculate the value of your real estate asset at current market value, no matter how high it is, or these comparative percentages are inaccurate and mean nothing. Sure, you can value your real estate any way you want when looking at your personal situation if it makes you feel more grounded. But, for comparative networth analysis, you have to have a base uniformity in calculation, and the only way to have a level playing field is current market value. Also, you can't exclude the value of your real estate any more than you would exclude the liablity of the mortgage.
I agree that your real estate should be valued at FMV in your networth statement however, you should always keep in mind the amount that you will realize after selling costs & capital gain tax.
I'm still trying to find the show Bo hasn't been super-excited about. Though, being super-excited is a good thing..
Don't ask what 1 million can do for you, ask what can you do for 1 million.
Buy $2 of Bitcoin back in 2011? :P
It’s interesting how your perspective can change over time. When I was in my 20’s my goal was $1m. I was sure if/when I hit that mark I would feel secure and at ease. Now, at 51 and with $5m I still don’t feel totally at peace. Don’t get me wrong...I don’t stay up nights worrying where my next meal will come from. But I still don’t feel like I thought I would as a multi-millionaire.
If we go by 4% you can basically pay yourself $200k/y forever. You should be living comfortably in most of the country except maybe NYC or San Francisco.
@@BitsOfInterest I 100% agree with you. The mathematics absolutely support your thesis. That’s what makes this so weird to me. Intellectually, I’m aware of that. But emotionally it feels very different. It really gets at the psychology and internal heuristics that are ingrained in each of us.
@@walkerb1734 I totally understand that there's a huge difference between being secure and feeling secure. I was just trying to be another voice to affirm that you've done very well and won the game basically.
I may end up in your situation so I'll have to do some soulsearching on what I need to do to feel that's it's good enough. I still have 10-15 years until my first million and likely another 10-15 to the third so I have time to figure it out 😉
I think a lot of it is about the climb. When you work with a mindset of manufactured scarcity, then it’s difficult to relieve yourself of this feeling once you get to where you were going. It’s what will keep your assets from waning.
I also think this is why a high percentage of second generation wealth spends it all. Because they never have worked to get a feeling of manufactured scarcity and spend like crazy.
I love the content. I am really curious about what retirement would look like when I am at the typical retirement age. I am currently 28 and figure that $40-50k today would looks way different 37 years from now. My $1 Million would possibly need to be 2.3 Million by the time I am there.
The other thing about this is, while it gets "harder" it is also true that there is less inflation loss from time. $5m at 65 will have much more purchasing power for a 50 year old than for a 30 year old.
The 12% stat alone is indicative of how much $1m really purchases. It's a question of lifestyle, not of a number.
It depends on spending and any other sources of income like pension, social security or Va disability
This is the question, where do you go? I recently sold my house which I loved, to capture the 100k in equity. I bought a nice double wide with half that cash, and put the rest in the market. I also freed up another 600/mo to DCA into more Roth and taxable accounts. I already do 4% in 401k (for match) and another 25% in Roth 401k. 51 YO, 400k invested.
I agree if your million is only in your home and you never intend to move. I'd say 1.5 for most that do not reside in high cost arears is sufficient. 6:22 is very true. It depends on the company your in.
I have a running excel sheet that gets updated every paycheck (biweekly). It takes assets and liabilities and calculates my LIQUID net worth, among other things.
IMO including the house in your net worth statement is only good if you want to flex. Otherwise it’s not really practical. I also don’t include my car that is paid for either since I have no intention of selling it.
A lot of people sell the big expensive house they raised their kids in and move to a smaller place in a cheaper area when they retire. So if you're planning to do something like that it could make sense to include the value of your home in net worth.
A car is a depreciating asset. Not counting your home value in your net worth means you’re being inaccurate. Just because it’s not liquid doesn’t mean it shouldn’t be counted.
My portfolio swings back and forth from 820k to 780k so that’s a 40k swing as the market yo-yo’s so Im wanting to grow it past 1 million in the next 20 years. The more the better in retirement
Hi. So interesting again!!! A house is a place to live in - nothing more. It's part of "the money", but can't be the only thing that makes you a millionnaire! I don't count on my house to live of off... I need a place/roof over my head, and it comes with expanses... it may increase in value, but...it can go down as well - we have seen it before! Canada-USA = the same can happen. So a million "above" the house is not the same thing...most probably will be enough? and then, later in life, sell the house and live "on it" for the later days... Can't carry it in heaven :-) Great video guys. Really interesting!
I have a question in regards to everyone asking , , is X amount enough to retire ? My question is in what context is X amount referenced ? Meaning, does the X amount number for retirement contemplate only yourself or does this also include your spouse ? Is X retirement amount saved gross or net, meaning before being taxed or net after taxes are paid ?
THIS they are the best and SO thorough but my husband and i are confused about this piece as well
Social Security, a 5% withdrawal rate and possibly a small pension (for some) and no debt, you are living in high cotton. $68,000 keeps you under the amount that allows for full ACA subsidies.
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I have no debt or mortgage, and I live in a low cost of living area in a modest home.. I could live pretty well on half a million. It really depends on your own cost of living. I wish I had resources like this channel when I was in my 20's and 30's. I would be in a much better position now. We really didn't have these kinds of choices in the 80's.
Inflation coming out of a pandemic is expected since the supply chain is in short supply and a lot of pent up demand is now being unleashed. Let's wait six months from now when the supply chain fills up. Looking forward to the rest of the show.
Exactly. Also if we can stop the tax losses at the top (super low corp tax rates, rebuild IRS to audit high net worth tax cheats) and apply those funds to the deficit, more families can save more...and will spend that money, growing the economy. Good for everyone.
We are in our 30s and millionaire status. Our goal is keep pushing, I don't think being a millionaire status mean to slow down.
this is the way i look at it. if i have 1 mil @ 4% dividend thats $40,000 a yr income. 2 mil at 4% is $80k and so on................. i dont plan on touching the principal
4% is too high for me. 2.5 is my goal, but then again 2 million isn't enough money imo.
One must consider the risk of companies cutting dividends which often occurs concurrently with falling stock prices, now you have a double whammy with which to contend.
@@rgood1204 keep telling yourself 2 mil isnt enough then eventually you will say the same about 3, 4, 5
how much money is enough????
@@rgood1204 Why do you think 4% is too high?
@@DobyDuke 3 million with a private pension of at least 50k, or 4 million. By the way, 2 million isn't enough for me. It might be plenty for someone who doesn't want to enjoy retirement the way I will.
Easiest way to become a multimillionaire is to be a millionaire and let the market compound it over time. Great show guys
I think you miss interpret the show. They say the best way is to start young, save regularly and invest the savings. Utilize Roth accounts, company 401k, and HSA accounts. It is definitely doable, you don't need to start with much
@@donmountford797 I don't think so. It's a long grind for most to reach millionaire status, but totally doable. They do a great job explaining how, such as following the FOO. My point is that if 1 million isn't enough, just let it grow for 5-10 years, without saving anything additional, and you'll have 2 million.
@@matthewharrigan3568 I miss understood your take. I agree it is very doable. Long difficult journey but the math is there
@@donmountford797 Not a fan of retirement accounts because of the fact I don't plan on waiting until 60 to retire. Still use 401k from work though because it's free real estate.
@@reimizuno1173 You can still utilize Roths . That would allow you to save tax free and pull out all your contributions whenever you want. The growth on the account would need to wait until 59.5. It's still a great tool to save, invest and avoid legally avoid taxes. I agree a traditional IRA has some challenges when retiring early
The question how much needed to retire? The answer is whatever your expenses are plus inflation 🤔 simple question simple answer.
Should i double these saving numbers if we have two earning members in a household ?
2.1 is our magic number.
Close but not quite there yet.
54 and 57 is the new target ages for retirement for us.
Love the content guys. At 40 and my fiancé at late 20s, we hit 1.1M NW this spring. We rent. We have no debt. Our investments are varied, oil stocks, high interest CDs (before rates tanked), mutual funds, cash, bonds, etc. Very very little in 401k (110k), we are very liquid and feel blessed. But we are very very disciplined. We save 80% of what we make. Drive Honda civics that are paid for. And HI earners, Im 6 figures x2, she near that. We expect to be worth 10 million by the time I'm 55 and she early 40s,
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if i was given a million dollars it would definitely be enough put all of it into a dividend gaining etf get 40k a year live off the 40k but also use a portion of the 40k for a savings and to invest a good portion every month to have even more money in the future absolutly doable
Interesting video!!! You should try to make videos on Investment...
The right chioce of an investment has always been a big problem for me I know picking a wrong investment will leave a big scar in the future
Pretty sure they've made about a hundred of those lol. Basically buy index funds in a 401k and/or Roth IRA.